Investing Basics

Handbag and accessory maker Coach (NYSE: COH), one of the best-known names in high-end fashion, has also been one of the best-performing stocks in the bull market that started in 2009. From its bear market lows, Coach gained 599% before peaking in March. Since then, the stock has pulled back and is trading 30% below its all-time highs. The chart below shows that the price could be headed even lower in the short term. Despite the stock’s recent struggles, Coach is still a… Read More

Handbag and accessory maker Coach (NYSE: COH), one of the best-known names in high-end fashion, has also been one of the best-performing stocks in the bull market that started in 2009. From its bear market lows, Coach gained 599% before peaking in March. Since then, the stock has pulled back and is trading 30% below its all-time highs. The chart below shows that the price could be headed even lower in the short term. Despite the stock’s recent struggles, Coach is still a great company for the long term. And at the right price, this stock is a buy. But right now it looks like it is a little too early. I think the holiday shopping season could lead to an additional sell-off in the stock that would push Coach shares down to where I would like to buy them. As you can see in the chart below, since Coach peaked, competitor Michael Kors (NYSE: KORS) has been a market leader. The two companies are… Read More

Investors looking to score big gains should always pay attention to the retail sector. Not the top retail stocks that seem to pound out modest sales gains each year, but the weaker retailers that have hit a rough patch. These retail firms could see shares slide far below prior peaks once same-store sales weaken and investors shun them. Yet these broken retailers can also become vastly oversold — and great bargain-hunting fodder. For example, I suggested that women’s apparel retailer Christopher & Banks (NYSE: CBK) was far too cheap — based on… Read More

Investors looking to score big gains should always pay attention to the retail sector. Not the top retail stocks that seem to pound out modest sales gains each year, but the weaker retailers that have hit a rough patch. These retail firms could see shares slide far below prior peaks once same-store sales weaken and investors shun them. Yet these broken retailers can also become vastly oversold — and great bargain-hunting fodder. For example, I suggested that women’s apparel retailer Christopher & Banks (NYSE: CBK) was far too cheap — based on tangible book value and sure enough, the stock eventually took off like a rocket. In fact, a number of oversold retailers make up the list of leading gainers in the just completed third quarter. In almost every instance, these retailers had traded sharply lower in prior quarters, which is precisely the time that you should be focusing on them. Whether it’s a buyout offer, or simply a… Read More

(Editor’s note: Yesterday, we took a look at how to invest if Obama wins the election in November. To read that article, go here.) Though President Barack Obama leads the latest polls, it’s too soon to write Mitt Romney off as a winning candidate. And if Romney… Read More

It’s Nov. 7. Staffers on one presidential campaign are packing their bags for Washington, D.C., while those at the other campaign are posting resumes on Monster.com. Meanwhile, as TV political pundits wallow in post-game analyses like a pig wallowing… er … in whatever pigs like to wallow in, investors are actually relieved. The unknown is now known. And now it’s time to reposition their portfolios based on the change or lack of change in the political landscape. Personally, I’ve never been a huge believer in reactionary trading based on election outcome. Read More

It’s Nov. 7. Staffers on one presidential campaign are packing their bags for Washington, D.C., while those at the other campaign are posting resumes on Monster.com. Meanwhile, as TV political pundits wallow in post-game analyses like a pig wallowing… er … in whatever pigs like to wallow in, investors are actually relieved. The unknown is now known. And now it’s time to reposition their portfolios based on the change or lack of change in the political landscape. Personally, I’ve never been a huge believer in reactionary trading based on election outcome. However, there are sectors that will undoubtedly perform better or worse based on which administration is driving the bus. Some are relatively predictable. Some may surprise you… Either way, even if you don’t plan to restructure your portfolio any time soon, it’s important to know which types of stocks could shine or dive in the next presidential term. President Willard Mitt Romney It’s pretty easy to guess which sectors would benefit from a Romney victory… Big Oil — Historically, Republican presidential… Read More

The hype prior to Facebook’s (Nasdaq: FB) IPO on May 18 was unprecedented. Every media outlet was keenly focused on this revolutionary young company with such massive valuation. Investors competed to be included on the IPO share distribution lists, certain that the world’s… Read More