Nearly 20 years ago, I took a class taught by legendary investor John Griffin and guest speaker Julian Robertson. The class was held at my alma mater — the McIntire School of Commerce at the University of Virginia. I had no way of knowing it at the time, but a talented classmate of mine would go on to write several bestselling financial books, including The Ivy Portfolio and Shareholder Yield. His name? Mebane Faber. His friends call him “Meb.” But when it comes to the stock market… experts around the world are calling him a genius… #-ad_banner-#​“Of the many books… Read More

Nearly 20 years ago, I took a class taught by legendary investor John Griffin and guest speaker Julian Robertson. The class was held at my alma mater — the McIntire School of Commerce at the University of Virginia. I had no way of knowing it at the time, but a talented classmate of mine would go on to write several bestselling financial books, including The Ivy Portfolio and Shareholder Yield. His name? Mebane Faber. His friends call him “Meb.” But when it comes to the stock market… experts around the world are calling him a genius… #-ad_banner-#​“Of the many books I’ve read on investment strategies over the past decade, I put [the Ivy Portfolio] at the top of the class.” — Doug Short, Advisor Perspectives “The most useful book could be [the Ivy Portfolio] by money manager Mebane Faber. He offers a simplified model that regular people can adopt.” — BusinessWeek “If he keeps up what he’s doing, he’s going to be famous someday… He simply has too many good ideas.” — Stansberry Research.  Put simply, Mebane Faber is an up-and-coming star in the financial world. And for good reason.  Thanks to a groundbreaking academic study he published last year,… Read More

Hedge fund managers, along with many financial writers on the Internet, have no qualm focusing their attention on sharply overvalued stocks.#-ad_banner-# To these folks, any stock that has entered into a bubble needs to be called to task. But Wall Street analysts rarely take a negative view on stocks. Even when they do dislike a stock (or its valuation), they’ll simply rate it a “hold” or “neutral.” In very rare instances, you’ll see an “underperform” or “sell” rating, but even then, these analysts typically have target prices close to the current trading price. Yet in recent days, I’ve noticed some… Read More

Hedge fund managers, along with many financial writers on the Internet, have no qualm focusing their attention on sharply overvalued stocks.#-ad_banner-# To these folks, any stock that has entered into a bubble needs to be called to task. But Wall Street analysts rarely take a negative view on stocks. Even when they do dislike a stock (or its valuation), they’ll simply rate it a “hold” or “neutral.” In very rare instances, you’ll see an “underperform” or “sell” rating, but even then, these analysts typically have target prices close to the current trading price. Yet in recent days, I’ve noticed some unusually gutsy calls from the “it’s always sunny” Wall Street analysts. They’ve been singling out certain stocks, citing severe levels of overvaluation. Even if you are long these stocks, it pays to listen to what these analysts have to say. And if you are looking for short sale ideas, then these stocks are a fine place to start. 1. Twitter (NYSE: TWTR ) It’s easy to see why some may think this stock is overvalued: The company is valued at 34 times projected 2014 sales. I can’t recall ever seeing a figure that high before. Indeed, short sellers are now… Read More

It’s no secret that Americans are pretty voracious consumers of health care. #-ad_banner-#Health care accounts for more than 17% of GDP, and the sector is projected to grow to 20% of the U.S. economy within eight years. A good chunk of the sector is diagnostic laboratory testing, now about a $60 billion industry in the U.S. Currently, hospitals and health care networks do most lab tests, ranging from routine blood and urine screens to more time-consuming, complex cancer and genetic tests. However, health care providers are now much more likely to outsource lab tests, particularly the more complicated ones, because… Read More

It’s no secret that Americans are pretty voracious consumers of health care. #-ad_banner-#Health care accounts for more than 17% of GDP, and the sector is projected to grow to 20% of the U.S. economy within eight years. A good chunk of the sector is diagnostic laboratory testing, now about a $60 billion industry in the U.S. Currently, hospitals and health care networks do most lab tests, ranging from routine blood and urine screens to more time-consuming, complex cancer and genetic tests. However, health care providers are now much more likely to outsource lab tests, particularly the more complicated ones, because it’s often cheaper and more efficient. Typically, health care providers want a large, reputable lab with many accessible locations. They certainly prefer a lab that can handle volume that is likely to grow substantially, thanks to the Affordable Care Act (aka Obamacare). Obamacare, which emphasizes preventive testing, is expected to bring an estimated 25 million new patients into the health care system during the next 10 years. What’s more, the enormous baby boom population will likely need all sorts of diagnostic tests as they age. (My colleague Joseph Hogue explored this trend in his “Graying of America” series last summer.)… Read More

Now that the busy holiday shopping season is behind us, it’s time to look at which department store retailers are set up for the long haul.#-ad_banner-# Investing for the long run involves sticking with a retailer known for consistency in terms of product offerings, management and price. For investors, what makes a great retail investment is a nice dividend, strong balance sheet and robust returns on equity. These days, most department store retailers lack these qualities, especially J.C. Penney (NYSE: JCP) and Sears (NYSE: SHLD). The one department store retailer that shoppers and investors alike can count on is Macy’s… Read More

Now that the busy holiday shopping season is behind us, it’s time to look at which department store retailers are set up for the long haul.#-ad_banner-# Investing for the long run involves sticking with a retailer known for consistency in terms of product offerings, management and price. For investors, what makes a great retail investment is a nice dividend, strong balance sheet and robust returns on equity. These days, most department store retailers lack these qualities, especially J.C. Penney (NYSE: JCP) and Sears (NYSE: SHLD). The one department store retailer that shoppers and investors alike can count on is Macy’s (NYSE: M). Macy’s possesses all the necessary qualities based on value and growth. Going forward, Macy’s has a number of initiatives to drive both its top and bottom lines. The retailer performed well during the holiday season, executing on its Black Friday platform and various strategies. The department store retailer recently announced November and December (holiday season) sales, which revealed that comparable-store sales were up 3.6% year over year. If you include sales from licensed departments within Macy’s, comparable-store sales rose 4.3%. Several Growth Measures In Place Macy’s primary focus is its My Macy’s program, which is focused on… Read More

My 2014 has sort of fallen out of the opening gate. I’ve been battling a tough case of the flu, something that they’ve always told me grows harder as one gets older, which sure seems true. I refuse to let it get me too far down, though. This is a great time for investors to evaluate the past 12 months, review opportunities both exploited and missed, and look ahead to a fresh start.  The S&P 500 has just wrapped up a strong year. Wall Street’s benchmark average had price appreciation of 29.6%. Its total return, including reinvested dividends, was 32.4%,… Read More

My 2014 has sort of fallen out of the opening gate. I’ve been battling a tough case of the flu, something that they’ve always told me grows harder as one gets older, which sure seems true. I refuse to let it get me too far down, though. This is a great time for investors to evaluate the past 12 months, review opportunities both exploited and missed, and look ahead to a fresh start.  The S&P 500 has just wrapped up a strong year. Wall Street’s benchmark average had price appreciation of 29.6%. Its total return, including reinvested dividends, was 32.4%, according to Bloomberg. That makes it the third-best year of the past two decades.   Interesting stuff. But as a great mind of our generation once posited, “So what?” #-ad_banner-#Should we expect a gain of 24.3% or 31.2% in 2014? No one knows. The fact is, we can expect, forecast or do a rain dance for whatever return we like. It doesn’t matter. Some rational guesses can be made, but there are simply too many variables to say with any degree of certainty what the year is going to look like 365 days from now. We do know… Read More

In our go-go society, convenience is everything. This has extended to every part of our lives, including food and entertainment. #-ad_banner-#In fact, this trend has become so pronounced that we’ve taken to getting these items from kiosks. For example, for many consumers, the ability to avoid interactions with people by simply swiping a credit card at a kiosk to get the night’s entertainment is a valuable service.  Formerly known as RedBox, Outerwall (Nasdaq: OUTR) is the epitome of this convenience. Its RedBox DVD rental kiosks are popping up like Starbucks’ (Nasdaq: SBUX) back in the early 2000s, with… Read More

In our go-go society, convenience is everything. This has extended to every part of our lives, including food and entertainment. #-ad_banner-#In fact, this trend has become so pronounced that we’ve taken to getting these items from kiosks. For example, for many consumers, the ability to avoid interactions with people by simply swiping a credit card at a kiosk to get the night’s entertainment is a valuable service.  Formerly known as RedBox, Outerwall (Nasdaq: OUTR) is the epitome of this convenience. Its RedBox DVD rental kiosks are popping up like Starbucks’ (Nasdaq: SBUX) back in the early 2000s, with several on a single street corner. Meanwhile, its legacy coin-counting kiosk division, Coinstar, continues to be the industry leader for turning loose change into dollars.  Beyond its coin and movie kiosks, Outerwall also has electronics recycling (EcoATM) and product-sampling (Sampleit) kiosks.  Outerwall fell off a cliff last year after releasing poor quarterly results. It’s now back on track, but still only managed to perform in line with the S&P 500 Index for the year. As a result, Outerwall has garnered the support of a couple of major hedge funds lately, including TPG-Axon Partners, which owns 5% of the… Read More

Have you ever loved a particular product — but had no clue about the company that made it? #-ad_banner-#​ It’s easy to identify the companies behind some beloved consumer products, such as Apple’s gizmos or Coach’s leather goods. It’s just as easy to look up those companies and invest in their stocks.  Yet there are tons of great companies that make a variety of great products — but get little respect because investors fail to connect the products with the product makers.  Ever wonder who owns the Sharpie brand? Parker pens? Liquid Paper? Calphalon cookware?… Read More

Have you ever loved a particular product — but had no clue about the company that made it? #-ad_banner-#​ It’s easy to identify the companies behind some beloved consumer products, such as Apple’s gizmos or Coach’s leather goods. It’s just as easy to look up those companies and invest in their stocks.  Yet there are tons of great companies that make a variety of great products — but get little respect because investors fail to connect the products with the product makers.  Ever wonder who owns the Sharpie brand? Parker pens? Liquid Paper? Calphalon cookware? Even the popular baby products company Garco?  Newell Rubbermaid (NYSE: NWL) is one such overlooked company. Most investors know Newell Rubbermaid for its Rubbermaid brand of trash cans and food storage containers, but this diversified consumer products company makes a variety of other products that make the company itself a compelling investment.  Writing products is the company’s top segment when it comes to revenue generation, with home solutions in a close second, generating 30% and 28%, respectively. Making up the rest of its revenue are its tools, commercial products, and baby and parenting products segments.      … Read More

In the investing world, one shareholder’s disappointment is often another’s opportunity. #-ad_banner-#The stock I have in mind sold off nearly 6% after the company reported that its 1% year-over-year increase in third-quarter revenue fell just shy of analysts’ estimates.  Granted, growth has slowed in recent times for this… Read More

Shares of troubled Canadian smartphone maker BlackBerry (Nasdaq: BBRY) soared more than 9% Tuesday after a Department of Defense report that said its handsets were still the Pentagon’s top choice. It anticipates that about 80,000 devices will start to be connected to its new network beginning at the end of January.#-ad_banner-# Despite the company’s ongoing struggles, it continues to offer leading security features. This is a significant contributing factor to the Defense Department’s choice, and the news showed BlackBerry (formerly known as Research in Motion) still has a hold on this lucrative part of the market. More positive news came… Read More

Shares of troubled Canadian smartphone maker BlackBerry (Nasdaq: BBRY) soared more than 9% Tuesday after a Department of Defense report that said its handsets were still the Pentagon’s top choice. It anticipates that about 80,000 devices will start to be connected to its new network beginning at the end of January.#-ad_banner-# Despite the company’s ongoing struggles, it continues to offer leading security features. This is a significant contributing factor to the Defense Department’s choice, and the news showed BlackBerry (formerly known as Research in Motion) still has a hold on this lucrative part of the market. More positive news came Tuesday with the announcement that the company is looking to divest the majority of its Canadian real estate. Specifically, BlackBerry wants to sell and lease back over 3 million square feet. This would raise a significant amount of cash for its turnaround plans. BlackBerry’s new CEO, John Chen, has only been at the helm for a few short months, but he has already made some significant moves. For example, in December, Chen formed a deal with Foxconn Technology Group, which also assembles Apple (Nasdaq: AAPL) iPhones, to outsource design and production. This should allow BBRY to focus more on its… Read More

Driven by a surge in e-commerce, low interest rates and accommodative Federal Reserve policy, this stock surged over 46% higher in 2013. #-ad_banner-#But at the start of 2014, the company suffered a reversal of fortune. Word of a weaker-than-expected Christmas season, combined with profit-taking, sent shares tumbling. An earnings warning from the company accelerated the selling. The selling intensified despite the company’s strong fundamentals, incredible $10 billion stock repurchase plan and solid dividend. Shares have plunged nearly 8% since the selling began. The selling resulted in many investors panicking or avoiding the stock completely. While this reaction is… Read More

Driven by a surge in e-commerce, low interest rates and accommodative Federal Reserve policy, this stock surged over 46% higher in 2013. #-ad_banner-#But at the start of 2014, the company suffered a reversal of fortune. Word of a weaker-than-expected Christmas season, combined with profit-taking, sent shares tumbling. An earnings warning from the company accelerated the selling. The selling intensified despite the company’s strong fundamentals, incredible $10 billion stock repurchase plan and solid dividend. Shares have plunged nearly 8% since the selling began. The selling resulted in many investors panicking or avoiding the stock completely. While this reaction is understandable, it is the exact opposite of what savvy investors do. Although sell-offs are often harbingers of worse things to come, they’re also often great opportunities to purchase shares at a discount. This is particularly true when the stock’s fundamentals are strong and the selling is an overreaction to short-term bad news.  I think that’s the case here — and investors should buy rather than sell shares of package delivery giant United Parcel Service (NYSE: UPS), which is setting up to be an incredibly discounted buy candidate.  A nearly $93 billion company that posted revenue of nearly $55 billion and… Read More