Some ideas just take a little time to germinate. #-ad_banner-#More than six years ago, Google (Nasdaq: GOOG) hinted at plans to roll out a nationwide network of free Internet portals, known as “Wi-Fi on steroids.” At the time, the press reports suggested that “ubiquitous wireless access for all Americans,” according to the company’s general counsel, might be coming to a town near you as soon as 2009. Though the idea of a Google Wi-Fi network popped up in the news in subsequent years, it never really got off the ground. It seems that the technology, or Google’s… Read More

Some ideas just take a little time to germinate. #-ad_banner-#More than six years ago, Google (Nasdaq: GOOG) hinted at plans to roll out a nationwide network of free Internet portals, known as “Wi-Fi on steroids.” At the time, the press reports suggested that “ubiquitous wireless access for all Americans,” according to the company’s general counsel, might be coming to a town near you as soon as 2009. Though the idea of a Google Wi-Fi network popped up in the news in subsequent years, it never really got off the ground. It seems that the technology, or Google’s basic strategy, needed more time in the shop before a broad public roll-out. Yet that roll-out may soon be at hand. According to recent reports, Google aims to provide free wireless equipment to a network of small and medium-sized businesses — if those businesses are willing to let the tech giant use that equipment as part of a nationwide network.  Why Google would pursue such a strategy is not yet fully clear. Presumably, the networked Wi-Fi gear would enable the company to deliver more targeted ads to anyone on its network. Few other companies would spend hundreds of millions of… Read More

If you’re hunting for a steady growth stock that offers a strong technical breakout from a multi-month base, turn your attention to the United States’ northern neighbor — Canada. #-ad_banner-#With a GDP of $1.8 trillion, Canada is one of the world’s strongest economies. Its banks are the country’s economic backbone. In fact, the World Economic Forum has ranked Canadian banks the soundest in the world — for the past six years and counting. Of the five major Canadian banks, my favorite is the Royal Bank of Canada (NYSE: RY) due to its… Read More

If you’re hunting for a steady growth stock that offers a strong technical breakout from a multi-month base, turn your attention to the United States’ northern neighbor — Canada. #-ad_banner-#With a GDP of $1.8 trillion, Canada is one of the world’s strongest economies. Its banks are the country’s economic backbone. In fact, the World Economic Forum has ranked Canadian banks the soundest in the world — for the past six years and counting. Of the five major Canadian banks, my favorite is the Royal Bank of Canada (NYSE: RY) due to its recent chart breakout, solid fundamental outlook, attractive valuation and strong dividend yield. The bank, often referred to as RBC, is Canada’s largest financial institution and one of the largest banks in the world based on deposits, revenue and market cap. It offers personal and commercial banking services, wealth management, insurance, investor services and capital markets products. Gains from its consumer banking and wealth management divisions are driving growth. The bank recently reported better-than-expected second-quarter results. Net income rose 15% from the same quarter last year, to $2.2 billion (Canadian). And earnings came in at $1.47 per share, beating the consensus… Read More

Winston Churchill once said “You can always count on Americans to do the right thing — after they’ve tried everything else.” Updated for today’s era of governmental gridlock, you could modify that phrase to say that “Americans will do the right thing — when they have no other choice.” #-ad_banner-#Considering that the nation’s Highway Trust Fund (which has relied upon revenues from a tax of $0.184 a gallon since 1993) is expected to run out of funds within the next few months, inaction is not an option. “The moment is dire — the trust fund is quickly running toward insolvency,”… Read More

Winston Churchill once said “You can always count on Americans to do the right thing — after they’ve tried everything else.” Updated for today’s era of governmental gridlock, you could modify that phrase to say that “Americans will do the right thing — when they have no other choice.” #-ad_banner-#Considering that the nation’s Highway Trust Fund (which has relied upon revenues from a tax of $0.184 a gallon since 1993) is expected to run out of funds within the next few months, inaction is not an option. “The moment is dire — the trust fund is quickly running toward insolvency,” Transportation Secretary Anthony Foxx told Bloomberg News. Thankfully, Congress has begun to search for a fix, not only for our nation’s highways, but many other core parts of our infrastructure, which barely get a passing grade, according to the American Society of Civil Engineers.  The Senate has just issued a new bipartisan blueprint for infrastructure spending, which will boost aid to states while also providing greater spending transparency. The challenge is to find the right revenue-raising formula. The Obama administration is siding with some leading Republicans in pursuit… Read More

In search of new investment ideas, it pays to run through several checklists every month.  #-ad_banner-#What stocks are hitting 52-week lows? Which ones sport low price-to-earnings (P/E) ratios? Which ones are being added to the portfolios of leading hedge funds and mutual funds? The reason for this digging is to see if any companies start to pop up in multiple areas. In my recent scans, the same name kept popping up everywhere… Bed, Bath & Beyond (Nasdaq: BBBY).  It’s a well-respected retailer that’s currently out of favor due to a temporary slowdown in profit growth — and it’s suddenly become… Read More

In search of new investment ideas, it pays to run through several checklists every month.  #-ad_banner-#What stocks are hitting 52-week lows? Which ones sport low price-to-earnings (P/E) ratios? Which ones are being added to the portfolios of leading hedge funds and mutual funds? The reason for this digging is to see if any companies start to pop up in multiple areas. In my recent scans, the same name kept popping up everywhere… Bed, Bath & Beyond (Nasdaq: BBBY).  It’s a well-respected retailer that’s currently out of favor due to a temporary slowdown in profit growth — and it’s suddenly become a favorite of value-oriented gurus. In just the past few weeks, we’ve learned that: •  Investment firm Brown, Brothers Harriman (which will have its 200-year anniversary in four years) just took a 5% stake in the retailer. •  In the first quarter of 2014, Robert Olstein, who runs the Olstein Funds, doubled his stake in Bed, Bath & Beyond by acquiring 78,000 more shares at an average price of $67 a share.  •  Also in the first quarter, Westport Asset Management bought a starter position of 90,000 shares at an average price of $67. Those funds are not happy to… Read More

The dominant theme in the market this month has been the outperformance of big stocks and underperformance of small-cap stocks. While the S&P 500 Index, representing highly capitalized companies, refuses to stray far from its all-time highs, the Russell 2000 index of small caps remains in a downtrend.  #-ad_banner-#This condition is not likely to last much longer, and one or the other will have to adjust. On an individual stock level, however, some have already started to make their moves — and not necessarily in the same direction as the major indices.  IRobot… Read More

The dominant theme in the market this month has been the outperformance of big stocks and underperformance of small-cap stocks. While the S&P 500 Index, representing highly capitalized companies, refuses to stray far from its all-time highs, the Russell 2000 index of small caps remains in a downtrend.  #-ad_banner-#This condition is not likely to last much longer, and one or the other will have to adjust. On an individual stock level, however, some have already started to make their moves — and not necessarily in the same direction as the major indices.  IRobot (Nasdaq: IRBT) is one such stock. The company is best known by consumers for its Roomba vacuum cleaner, but it also manufactures robots for defense and security, telemedicine and video collaboration. As was the case with many small-cap stocks, IRBT peaked in early March. After touching a high of $48.36 on March 6, it started a painful slide to a low of $30.11 last Tuesday — a 38% loss in just 11 weeks. But technically, conditions have changed for the better.  The first step to reversing a long slide is simply to stop… Read More

In the latest regulatory filing for Icahn Enterprises on May 15, the prominent activist investor Carl Icahn revealed he’d greatly increased an existing stock position during the first quarter. The beefed-up position, now a total of 27.8 million shares worth nearly $1.4 billion, currently occupies nearly 5% of Icahn’s $33 billion portfolio. #-ad_banner-#That’s a bold move for Icahn, best known for acquiring large stakes in major companies and then pressing management for changes he believes are in shareholders’ best interests.  However, it’s uncertain what changes, if any, he plans to push… Read More

In the latest regulatory filing for Icahn Enterprises on May 15, the prominent activist investor Carl Icahn revealed he’d greatly increased an existing stock position during the first quarter. The beefed-up position, now a total of 27.8 million shares worth nearly $1.4 billion, currently occupies nearly 5% of Icahn’s $33 billion portfolio. #-ad_banner-#That’s a bold move for Icahn, best known for acquiring large stakes in major companies and then pressing management for changes he believes are in shareholders’ best interests.  However, it’s uncertain what changes, if any, he plans to push for at this point. After agitating unsuccessfully for months, he seems to have abandoned his ambition of getting eBay (Nasdaq: EBAY) to spin off its best-performing business — the well-known online money transfer service PayPal. Such a move would be an excellent way for eBay to unlock value for shareholders, Icahn has long argued. But even with no obvious agenda, it’s easy to see why he’d want to load up on eBay, despite recent weakness. (During the past 12 months, the company lost $0.11 a share and its stock fell more than 7%, compared with nearly a 15% gain for… Read More

I’m constantly scanning the equity markets for overbought and oversold stocks, as well as those that have seen a flurry of mainstream or social media activity. These names often make for great swing trading candidates.  #-ad_banner-#One oversold stock that recently popped back on my radar is Gogo (Nasdaq: GOGO), a provider of in-flight Internet connectivity and wireless in-cabin digital entertainment systems. The company sells Internet access packages to travelers, who can sign up on a monthly or daily basis.  Having personally used Gogo many times on flights across the country, I am a believer in the service, and… Read More

I’m constantly scanning the equity markets for overbought and oversold stocks, as well as those that have seen a flurry of mainstream or social media activity. These names often make for great swing trading candidates.  #-ad_banner-#One oversold stock that recently popped back on my radar is Gogo (Nasdaq: GOGO), a provider of in-flight Internet connectivity and wireless in-cabin digital entertainment systems. The company sells Internet access packages to travelers, who can sign up on a monthly or daily basis.  Having personally used Gogo many times on flights across the country, I am a believer in the service, and while it could always be improved, I don’t have any major complaints. This month, Gogo reported better-than-expected first-quarter results. A loss of $0.20 a share came in ahead of the $0.25 loss analysts had anticipated. The company also beat on the top line, with revenue rising 35% year over year to $95.7 million. Following the report, GOGO jumped off its lows and has since been forming what looks to be a promising base.  Gogo has been a publicly traded company only since last June. As is often the case with IPOs, investors need time to come… Read More

Despite having studied hundreds of guru managers and their positions over the years, I still stumble across a trade or investment every now and then that prompts a verbal “Whoa!” out of me. #-ad_banner-#Billion-dollar positions are not out of the ordinary for successful hedge fund managers, especially those managers — like Andreas Halvorsen of Viking Global — who are looking for places to stuff $24 billion in assets under management. However, when those positions are built in just a few months’ time, I sit up and take note. Halvorsen, a former commando in the Norwegian navy, is one of the… Read More

Despite having studied hundreds of guru managers and their positions over the years, I still stumble across a trade or investment every now and then that prompts a verbal “Whoa!” out of me. #-ad_banner-#Billion-dollar positions are not out of the ordinary for successful hedge fund managers, especially those managers — like Andreas Halvorsen of Viking Global — who are looking for places to stuff $24 billion in assets under management. However, when those positions are built in just a few months’ time, I sit up and take note. Halvorsen, a former commando in the Norwegian navy, is one of the most successful of the so-called Tiger Cubs, proteges of legendary investor Julian Robertson. As an example of his stock-picking prowess, his newest fund, Viking Long, gained nearly 40% in 2013. After accumulating 5.5% of the outstanding shares of biotech firm Illumina (Nasdaq: ILMN), Viking Global filed a Form 13G in March that showed it owned 7.1 million shares at that time, more than quadruple its 1.7 million-share position at the end of last year.  With the release of his first-quarter Form 13F in mid-May, we can now see that Halvorsen has continued to add to his position, with 8.9 million… Read More

For every Amazon.com (Nasdaq: AMZN) or Priceline (Nasdaq: PCLN), you’ll find many more examples of Web-based business that failed to live up to their promise.  Companies like WebVan, Pets.com and eToys.com were once worth hundreds of millions of dollars… but failed to survive the eventual dot-com shakeout. Others survived — but are mere shadows of their former selves.  Case in point: online employment firm Monster Worldwide (NYSE: MWW), which has seen its shares slide more than 90% since their peak in the summer of 2000. Monster’s… Read More

For every Amazon.com (Nasdaq: AMZN) or Priceline (Nasdaq: PCLN), you’ll find many more examples of Web-based business that failed to live up to their promise.  Companies like WebVan, Pets.com and eToys.com were once worth hundreds of millions of dollars… but failed to survive the eventual dot-com shakeout. Others survived — but are mere shadows of their former selves.  Case in point: online employment firm Monster Worldwide (NYSE: MWW), which has seen its shares slide more than 90% since their peak in the summer of 2000. Monster’s market value has fallen to just over $500 million, and in a sign of a clearly missed opportunity, rival LinkedIn (NYSE: LNKD) is worth a hefty $18 billion. That valuation gap may appear warranted. Monster now has just $800 million in annual sales, which have declined every year since 2008. LinkedIn now has more than $1.5 billion in sales and has boosted its top line by more than 50% every year.  But think about those numbers again for a moment. LinkedIn’s 2013 sales base was nearly twice as large, yet its market value is more than 35 times larger. Monster’s… Read More

Billionaire investor Howard Marks has said that “success in investing is not a function of what you buy — it’s a function of what you pay.”  #-ad_banner-#Basically, that means investors should look for opportunities to snatch up market-leading companies when they are trading cheaply.  The housing bubble and subsequent market pullback are a good example, creating a number of intriguing buying opportunities. Naturally, the construction industry was one of the hardest hit. The Dow Jones U.S. Heavy Construction Index fell 65% in just a few months in 2008.  All parts of the industry were impacted, especially construction equipment… Read More

Billionaire investor Howard Marks has said that “success in investing is not a function of what you buy — it’s a function of what you pay.”  #-ad_banner-#Basically, that means investors should look for opportunities to snatch up market-leading companies when they are trading cheaply.  The housing bubble and subsequent market pullback are a good example, creating a number of intriguing buying opportunities. Naturally, the construction industry was one of the hardest hit. The Dow Jones U.S. Heavy Construction Index fell 65% in just a few months in 2008.  All parts of the industry were impacted, especially construction equipment financing companies like CIT Group (NYSE: CIT), which filed for Chapter 11 bankruptcy in 2009. Since then, the company has been rebuilding its image and revamping its balance sheet.  But the equipment financing business is still in recovery mode, and shares of CIT are down nearly 20% this year, especially after reporting lower than expected earnings last quarter. Its price/earnings-to-growth (PEG) ratio is now below 1 — meaning that at its current price, CIT offers a compelling buy opportunity.  The market focused primarily on the fact that earnings per share (EPS) came in at $0.55, compared with $0.81 a year… Read More