The word “bankruptcy” is anathema to most investors. Holding shares of a company in this position means investors are likely to be wiped out. Sometimes, however, a bankruptcy can be exactly the right thing for both the company and investors, if handled properly. Read More
Value Investing
For many years, investors had to sit and wait for profits as cable and satellite companies re-invested every spare penny into building their business. That wait is now over, most notably for investors in DirecTV (NYSE: DTV). The satellite TV provider is now throwing off large amounts of… Read More
More than a century ago, governments in the United States and Europe decided to pave over dirt... Read More
More than a century ago, governments in the United States and Europe decided to pave over dirt roads. They knew that many citizens would soon be driving automobiles and would soon sour on bumpy,... Read More
During the past decade, investing in housing, the stock market, or gold has been an eye opener for U.S. consumers. The value of houses soared and then crashed. Gold slumped and then surged ahead. Oil prices rose to unimaginable peaks and then fell by more than -75%. All the while,… Read More
As far as many investors are concerned, airline stocks should be avoided like the plague. Every time the economy hits a rough patch, these heavily-indebted companies look as if they’re lunging toward bankruptcy. Countless investors have had to dump airline stocks after losing most… Read More
One of the challenges of buying an industry leader such as Apple (Nasdaq: AAPL) is that it is “priced to perfection.” The value of its stock implies that the company will fulfill all of the high expectations placed upon it. More than likely, Apple will keep on delivering winning products,… Read More
In business, there are some items you can control and some things that are out of your hands. For the folks that run the major truck-based freight carriers, they are almost completely vulnerable to issues beyond their control. All they can do is try to make the best of the… Read More
In a bid to keep a lid on runaway prescription drug prices, many companies have turned to Pharmacy Benefit Managers (PBMs). These firms act as a middleman, handling all prescription-related paperwork and gently nudging consumers toward lower-priced generic drugs and an increased use of low-cost mail-order services. Over time, the… Read More
Warren Buffett seemed to take it on the chin last week. In fact, he’s been hammered for a couple of months now. First came the annual Berkshire Hathaway (NYSE: BRK-B) shareholders meeting, the annual Woodstock for Capitalists and Buffett love fest held each May,… Read More
The past decade has been tough for stocks, with the bursting of the Internet and housing bubbles creating share price volatility too extreme for many investors. As for blue chip companies, sky-high valuations in 2000 have left little in terms of total stock returns, even though… Read More