I love finding little stocks that have a strong possibility of doubling or even tripling in a short period of time.#-ad_banner-# I uncover them by running technical screens on stocks trading under $10. My screens search for companies that have been knocked off their highs then built technical support and rebounded above their 50-day simple moving averages.  Once the screen has found suitable candidates, I drill down into fundamentals, economic conditions and potential catalysts that could power the little stock higher. Many beaten-down stocks experience a rebound from their lows, only to drop back down to those lows or even… Read More

I love finding little stocks that have a strong possibility of doubling or even tripling in a short period of time.#-ad_banner-# I uncover them by running technical screens on stocks trading under $10. My screens search for companies that have been knocked off their highs then built technical support and rebounded above their 50-day simple moving averages.  Once the screen has found suitable candidates, I drill down into fundamentals, economic conditions and potential catalysts that could power the little stock higher. Many beaten-down stocks experience a rebound from their lows, only to drop back down to those lows or even further — the so-called dead cat bounce. My fundamental, economic and catalyst screen, which I call Price Drivers, adds support to the technical picture.  I firmly believe that technical analysis plays a powerful role in stock analysis, but it cannot stand on its own as a decision-making tool. Traders need to understand what’s behind the price moves to make profitable decisions. Price alone isn’t adequate for the vast majority of situations.  The latest stock to pass my technical and fundamental Price Drivers screens is Brazilian telecommunications company Oi (NYSE: OIBR), which trades on the New York Stock Exchange as an… Read More

There is little doubt that Hollywood loves 3-D. According to the website BoxOfficeQuant, 3-D movies make an average of $3.69 at the box office for every dollar of production costs. That is almost 50% more than the $2.51 in box office sales for 2-D films.#-ad_banner-#​ But lately it seems that some of 3-D’s luster has worn off. “Pacific Rim” was a flop, and would-be blockbuster “The Lone Ranger” attracted possibly one lone moviegoer. Growth in worldwide 3-D screens slowed to just 27% last year — respectable, but well off 2009’s growth of 255%.  With few real… Read More

There is little doubt that Hollywood loves 3-D. According to the website BoxOfficeQuant, 3-D movies make an average of $3.69 at the box office for every dollar of production costs. That is almost 50% more than the $2.51 in box office sales for 2-D films.#-ad_banner-#​ But lately it seems that some of 3-D’s luster has worn off. “Pacific Rim” was a flop, and would-be blockbuster “The Lone Ranger” attracted possibly one lone moviegoer. Growth in worldwide 3-D screens slowed to just 27% last year — respectable, but well off 2009’s growth of 255%.  With few real blockbusters this year, 3-D or otherwise, cinema operators are looking like a bust. But that is exactly when you should start looking at the sector for the best of breed.  Like Warren Buffett, I like to be greedy when others are fearful. In fact, the best company in the industry is down more than 8% from its 52-week high and almost a quarter off its 2011 peak. After looking through Hollywood stocks like Lions Gate Entertainment (NYSE: LGF) and Cinemark Holdings (NYSE: CNK), I found a company that doesn’t have to stake its future on a blockbuster movie. Nor does… Read More

Billionaires go to jail for it. Money managers have fled the country and faked suicides when it’s suggested. Hedge funds have paid billions in fines and been harassed by the Securities and Exchange Commission (SEC) on little more than a hint of its occurrence.  Flickr/DannyB ​Celebrity investor and high-tech titan Mark Cuban recently fought and secured a courtroom victory after being accused of violating insider trading laws. Most recently, celebrity investor and high-tech titan Mark Cuban fought and secured a courtroom victory when accused of violating this regulation. Famed entrepreneur and TV personality Martha… Read More

Billionaires go to jail for it. Money managers have fled the country and faked suicides when it’s suggested. Hedge funds have paid billions in fines and been harassed by the Securities and Exchange Commission (SEC) on little more than a hint of its occurrence.  Flickr/DannyB ​Celebrity investor and high-tech titan Mark Cuban recently fought and secured a courtroom victory after being accused of violating insider trading laws. Most recently, celebrity investor and high-tech titan Mark Cuban fought and secured a courtroom victory when accused of violating this regulation. Famed entrepreneur and TV personality Martha Stewart wasn’t as fortunate as Cuban — she spent time behind bars in 2004 for what amounted to be a relatively small amount of money. The strangest thing is, this action is considered a legitimate edge in the commodity markets. It’s only in the stock market where it’s considered a mortal sin. If you haven’t guessed, I am talking about insider trading.  Insider trading offers an unfair advantage to those with the information and capacity to profit from it. It is the desire to level the playing field that motivates the authorities to clamp down on insider trading. It truly… Read More

A recent move by one of the world’s largest online retailers points to an increasing war that could change the way you and I shop for just about everything. And while I think the shift will be a good thing for consumers, the looming battles in this space could create vast amounts of wealth for investors who jump in early. First, let me give you a little background… At the end of September, eBay (Nasdaq: EBAY) bought Chicago-based payment processor Braintree for $800 million in cash and folded the company into its PayPal division. Braintree says it handles $12 billion… Read More

A recent move by one of the world’s largest online retailers points to an increasing war that could change the way you and I shop for just about everything. And while I think the shift will be a good thing for consumers, the looming battles in this space could create vast amounts of wealth for investors who jump in early. First, let me give you a little background… At the end of September, eBay (Nasdaq: EBAY) bought Chicago-based payment processor Braintree for $800 million in cash and folded the company into its PayPal division. Braintree says it handles $12 billion in transactions a year, and works with clients like OpenTable (restaurant reservations), Uber (arranging a driver) and Rovio (creator of the inane but ubiquitous Angry Birds franchise, a popular gaming app). It also owns Venmo, which lets individuals text payments to one another. The purchase is part of a string of recent deals: eBay also recently acquired a social shopping site, the recommendation site Hutch, and Red Laser, which scans bar codes. Taken together, it appears eBay is gearing up to go mobile and vie to be the king of e-commerce, a spot now held by Amazon.com. This fits right… Read More

The death of cash has been fueling a gold rush for payment processors. Industry leaders Visa (NYSE: V), MasterCard (NYSE: MA) and Heartland Payment Systems (NYSE: HPY) have all posted market-beating gains of at least 29% this year. But while these well-known blue chips have been surging, one of their lesser-known industry peers has been struggling. After losing market share and reporting a disappointing quarter early in the year, shares are down 50% in the past 18 months.  VeriFone Systems (NYSE: PAY) is a global leader… Read More

The death of cash has been fueling a gold rush for payment processors. Industry leaders Visa (NYSE: V), MasterCard (NYSE: MA) and Heartland Payment Systems (NYSE: HPY) have all posted market-beating gains of at least 29% this year. But while these well-known blue chips have been surging, one of their lesser-known industry peers has been struggling. After losing market share and reporting a disappointing quarter early in the year, shares are down 50% in the past 18 months.  VeriFone Systems (NYSE: PAY) is a global leader in the electronic payments industry, making point-of-sale (POS) machines that consumers use to swipe credit and debit cards. Its clients include some of the biggest and most successful retailers in the world, including Costco (Nasdaq: COST), Lowe’s (Nasdaq: LOWE) and McDonald’s (NYSE: MCD).#-ad_banner-# But despite that market-leading position, VeriFone has struggled in the past year and a half. And that’s exactly why it’s a great time to check out the payment systems leader and recent industry laggard: Shares and sentiment are low, but the seeds of a turnaround are beginning to sprout. One of the biggest factors weighing on VeriFone’s… Read More

In early September, stocks in the long-beleaguered maritime shipping industry started to do something few observers expected them to do anytime soon — they started to rise in a meaningful way.#-ad_banner-# The rally from names like DryShips (Nasdaq: DRYS) and Eagle Bulk Shipping (Nasdaq: EGLE) was driven by a meteoric rise in the Baltic Dry Index, which reflects the change in the daily charter rate for dry bulk vessels. The index nearly doubled in value between mid-August and this month, providing a glimmer of hope of decent profits for maritime shippers. But as is often… Read More

In early September, stocks in the long-beleaguered maritime shipping industry started to do something few observers expected them to do anytime soon — they started to rise in a meaningful way.#-ad_banner-# The rally from names like DryShips (Nasdaq: DRYS) and Eagle Bulk Shipping (Nasdaq: EGLE) was driven by a meteoric rise in the Baltic Dry Index, which reflects the change in the daily charter rate for dry bulk vessels. The index nearly doubled in value between mid-August and this month, providing a glimmer of hope of decent profits for maritime shippers. But as is often the case with huge moves from stocks and indices, doubts started to set in about the sustainability of the Baltic Dry Index’s new price levels, and these stocks started to wane just as quickly as they’d heated up.  However, the rise from the Baltic Dry Index wasn’t the result of a little volatility. A handful of other data indicate the supply/demand balance in the dry bulk shipping sector has finally found a happy medium, making DryShips, Eagle Bulk, FreeSeas (Nasdaq: FREE), Diana Shipping (NYSE: DSX) and a few other names in the group worth a closer long-term look. The Perfect… Read More

Deal shopping is quickly becoming a lost art.  Technology, like it has done time and again, is changing the way we buy and sell used goods, as those marketplaces are quickly becoming centralized. The Internet is quickly rendering classic print ads, such as the weekly PennySaverUSA, obsolete. The two big names in online classified are eBay (Nasdaq: EBAY) and Craigslist. Though there are plenty of horror stories about Craigslist, it remains the go-to site for used goods, with nearly 50 million unique visitors a month.  But neither Craigslist nor PennySaverUSA will help you find the next great value… Read More

Deal shopping is quickly becoming a lost art.  Technology, like it has done time and again, is changing the way we buy and sell used goods, as those marketplaces are quickly becoming centralized. The Internet is quickly rendering classic print ads, such as the weekly PennySaverUSA, obsolete. The two big names in online classified are eBay (Nasdaq: EBAY) and Craigslist. Though there are plenty of horror stories about Craigslist, it remains the go-to site for used goods, with nearly 50 million unique visitors a month.  But neither Craigslist nor PennySaverUSA will help you find the next great value investment. What value investors can do is buy the company that owned and distributed PennySaverUSA, Harte-Hanks (NYSE: HHS). This marketing company appears to be a great value, and it has a near-term catalyst to boot.  In an effort to focus on higher-growth markets, Harte-Hanks agreed last month to sell its PennySaverUSA business for $22.5 million. The sale will leave Harte-Hanks with an international direct and targeted marketing business that generates a tremendous amount of cash. The sell-off of PennySaverUSA — which had been a drag on financials and a distraction for management — gives new investors the chance… Read More

The Dow Jones Industrial Average (DJIA) is clearly in fighting shape. The heavyweight index has already pounded out 17% gains this year, on top of gains of 10% to 11% in 2010, 2011 and 2012 as well. Yet a quick look at what’s not working in the Dow gives a glimpse of the index’s weak points. Four of the Dow’s 30 stocks are lagging behind the broader index by a wide margin. Yet only one of those can simply be seen as having an off year due to cyclical economic factors. The other three simply lack the strength and… Read More

The Dow Jones Industrial Average (DJIA) is clearly in fighting shape. The heavyweight index has already pounded out 17% gains this year, on top of gains of 10% to 11% in 2010, 2011 and 2012 as well. Yet a quick look at what’s not working in the Dow gives a glimpse of the index’s weak points. Four of the Dow’s 30 stocks are lagging behind the broader index by a wide margin. Yet only one of those can simply be seen as having an off year due to cyclical economic factors. The other three simply lack the strength and stamina to duke it out for the long haul, and you might want to reconsider their place in your portfolio. The four big laggards: 1. AT&T (NYSE: T ) Ma Bell’s shares were generating a small loss for the year before the recent Washington fiscal agreement pushed it slightly into the black. If the market retreats from the current euphoria by year’s end, AT&T will surely end up posting a down year.  In fact, short sellers are anticipating such a move.  As I noted last month, both AT&T and Sprint (NYSE: S) have seen rising short interest in recent months. Read More

Some of the best ways to find undervalued investments is to look in places that other investors tend to ignore.#-ad_banner-#​ There are a number of “unsexy” industries and companies that produce goods and services we use every day, but they don’t receive the media attention that an Apple (Nasdaq: AAPL) or Google (Nasdaq: GOOG) does. And so many retail investors miss out on great opportunities.  One such industry is auto parts. There are nearly 250 million vehicles in North America alone. Almost everyone I know has a car (sometimes two). Those vehicles all need servicing, and they all… Read More

Some of the best ways to find undervalued investments is to look in places that other investors tend to ignore.#-ad_banner-#​ There are a number of “unsexy” industries and companies that produce goods and services we use every day, but they don’t receive the media attention that an Apple (Nasdaq: AAPL) or Google (Nasdaq: GOOG) does. And so many retail investors miss out on great opportunities.  One such industry is auto parts. There are nearly 250 million vehicles in North America alone. Almost everyone I know has a car (sometimes two). Those vehicles all need servicing, and they all break down from time to time.  And while some people choose to take their vehicles to an auto parts servicer — a strategy known colloquially as DIFM, short for “do it for me” — others prefer to get their hands dirty with a DIY (“do it yourself”) approach. Regardless, it has to get done.  Enter Motorcar Parts of America (Nasdaq: MPAA). This company is one of the nation’s top manufacturers of aftermarket auto parts. And a company that caters to both sides of the very large replacement parts market, DIYers and DIFMers alike. One of the big tailwinds for Motorcar… Read More

Ken Griffin, a wunderkind of Wall Street, was managing a million dollars while still in college. After launching Citadel Investment Group with just over $4 million, Griffin’s fund is now among the largest in the world, with over $40 billion under management. His fund is among my favorites for investment ideas. Griffin recently made an unusual investment: He just took a nearly 6% stake in the newly public Global Brass and Copper Holdings (NYSE: BRSS).#-ad_banner-# The company specializes in fabricating, processing and distributing specialized brass and copper products. While the company has existed since 2007, its books have been open… Read More

Ken Griffin, a wunderkind of Wall Street, was managing a million dollars while still in college. After launching Citadel Investment Group with just over $4 million, Griffin’s fund is now among the largest in the world, with over $40 billion under management. His fund is among my favorites for investment ideas. Griffin recently made an unusual investment: He just took a nearly 6% stake in the newly public Global Brass and Copper Holdings (NYSE: BRSS).#-ad_banner-# The company specializes in fabricating, processing and distributing specialized brass and copper products. While the company has existed since 2007, its books have been open for scrutiny only since its May IPO.  Global Brass, which recently posted impressive second-quarter results, appears solid, and Citadel’s investment increases my confidence. However, whenever I consider investing in a base metal fabricating company, I am reminded of my first experience in the field.  I made my first copper fabrication investment at 9 years old. I lost 99% of my capital, not counting transaction costs, on the investment. This experience was the first of many in the never-ending learning curve of the financial markets. Here’s what happened: At that age, I was a voracious reader of pulp magazines and comic… Read More