As we head into the final week of the quarter, expect a fair number of companies to lower their guidance. And though it may seem counterintuitive, get ready to put some cash to work. When It Is An Overreaction? Of course, when these companies deliver a dose of bad news, their shares can get pummeled. Yet we’ve all seen those quick sell-offs followed up by a nice rebound. The key… Read More

As we head into the final week of the quarter, expect a fair number of companies to lower their guidance. And though it may seem counterintuitive, get ready to put some cash to work. When It Is An Overreaction? Of course, when these companies deliver a dose of bad news, their shares can get pummeled. Yet we’ve all seen those quick sell-offs followed up by a nice rebound. The key is to quickly research the situation to see which sell-offs are deserved and signal “dead money” for the coming months, and which sell-offs are likely to be short-lived. We can look to travel website Priceline.com (Nasdaq: PCLN) as an example. Over the past few years, I’ve noted how investors tend to dump the stock whenever short-term trends lead the company to lower near-term guidance. For example, in August 2011, I noted that a decent but not great outlook for the next quarter… Read More

As we head into the final week of the quarter, expect a fair number of companies to lower their guidance. And though it may seem counterintuitive, get ready to put some cash to work. When It Is An Overreaction? Of course, when these companies deliver a dose of bad news, their shares can get pummeled. Yet we’ve all seen those quick sell-offs followed up by a nice rebound. The key… Read More

As we head into the final week of the quarter, expect a fair number of companies to lower their guidance. And though it may seem counterintuitive, get ready to put some cash to work. When It Is An Overreaction? Of course, when these companies deliver a dose of bad news, their shares can get pummeled. Yet we’ve all seen those quick sell-offs followed up by a nice rebound. The key is to quickly research the situation to see which sell-offs are deserved and signal “dead money” for the coming months, and which sell-offs are likely to be short-lived. We can look to travel website Priceline.com (Nasdaq: PCLN) as an example. Over the past few years, I’ve noted how investors tend to dump the stock whenever short-term trends lead the company to lower near-term guidance. For example, in August 2011, I noted that a decent but not great outlook for the next quarter… Read More

There is nothing more frustrating than finding a seemingly attractive young company, only to discover that its shares have already risen 800% in the past seven months. Then again, seeing that stock subsequently lose half its value in a matter of weeks suggests that perhaps you didn’t miss out on “the next Microsoft” after all. It has been that kind of roller-coaster ride for investors in Uni-Pixel (Nasdaq: UNXL), which is either widely admired or widely reviled, depending on whom you ask. The company, which has yet… Read More

There is nothing more frustrating than finding a seemingly attractive young company, only to discover that its shares have already risen 800% in the past seven months. Then again, seeing that stock subsequently lose half its value in a matter of weeks suggests that perhaps you didn’t miss out on “the next Microsoft” after all. It has been that kind of roller-coaster ride for investors in Uni-Pixel (Nasdaq: UNXL), which is either widely admired or widely reviled, depending on whom you ask. The company, which has yet to generate revenue from operations, will eventually make its investors a lot of money or prove to be a spectacular bust, depending on how the next three to six months play out.  The current question: With a 50% haircut, are shares worth your money? A Game-Changer? This spring, Uni-Pixel saw its market value briefly move above $400… Read More

There aren’t any players with a bigger impact on the market than hedge funds. Not only are hedge funds thought leaders, employing thousands of forensic analysts to sniff out the best investment opportunities, they are also huge, frequently carrying multibillion-dollar positions that can single-handedly move a market. That’s why hedge funds have gained a cult following, watched closely by investors trying to gain insight into what the biggest players… Read More

There aren’t any players with a bigger impact on the market than hedge funds. Not only are hedge funds thought leaders, employing thousands of forensic analysts to sniff out the best investment opportunities, they are also huge, frequently carrying multibillion-dollar positions that can single-handedly move a market. That’s why hedge funds have gained a cult following, watched closely by investors trying to gain insight into what the biggest players on the Street are up to. A signal that a hedge fund or the entire industry is hot for a new stock can send shares soaring. And that’s exactly what is happening to the most popular stock among hedge funds during the first quarter. This market leader has been on a tear, up 36% on the year after hedge funds poured $1.6 billion into its shares in the first quarter. Read More

There aren’t any players with a bigger impact on the market than hedge funds. Not only are hedge funds thought leaders, employing thousands of forensic analysts to sniff out the best investment opportunities, they are also huge, frequently carrying multibillion-dollar positions that can single-handedly move a market. That’s why hedge funds have gained a cult following, watched closely by investors trying to gain insight into what the biggest players on the Street… Read More

There aren’t any players with a bigger impact on the market than hedge funds. Not only are hedge funds thought leaders, employing thousands of forensic analysts to sniff out the best investment opportunities, they are also huge, frequently carrying multibillion-dollar positions that can single-handedly move a market. That’s why hedge funds have gained a cult following, watched closely by investors trying to gain insight into what the biggest players on the Street are up to. A signal that a hedge fund or the entire industry is hot for a new stock can send shares soaring. And that’s exactly what is happening to the most popular stock among hedge funds during the first quarter. This market leader has been on a tear, up 36% on the year after hedge funds poured $1.6 billion into its shares in the first quarter. I’m… Read More

When I write about micro-cap stocks (which typically have market values of less than $200 million), I always focus on several at once. This approach highlights the necessity of ensuring that any one of these speculative stocks doesn’t account for more than a sliver of a portfolio. Some micro-caps can fare quite well, while others sink like a stone. I was thinking about this basket approach to micro-caps recently while reviewing a column I wrote early last… Read More

When I write about micro-cap stocks (which typically have market values of less than $200 million), I always focus on several at once. This approach highlights the necessity of ensuring that any one of these speculative stocks doesn’t account for more than a sliver of a portfolio. Some micro-caps can fare quite well, while others sink like a stone. I was thinking about this basket approach to micro-caps recently while reviewing a column I wrote early last year. Since then, GSE Systems (NYSE: GVP) has been a dud, dropping 26% as the company’s focus on nuclear power-plant training services has fallen out of favor. But the other two picks in that column are faring quite well and appear to still have ample upside. Looking at the reasons why that’s the case can also point the way to the pillars of success in micro-cap investing. 1. Biolase Technology (Nasdaq:… Read More

It’s no secret that J.C. Penney (NYSE: JCP) has become a retail disaster over the past five years. The top line has fallen each year since 2007, from… Read More

Toothpaste. Toilet paper. Soap. Cereal. These products aren’t nearly as sexy as smartphones or social networks. But for the past few years, the stocks behind the companies that make and sell the boring items we consume every day have run like… Read More

Insurance agents reach for the antacids whenever the economy slows down. Their clients start to look for ways to trim costs, and reduced insurance coverage (and the smaller premiums they are charged) eats into the insurers’ bottom lines. Any hopes of actually raising insurance premiums go out the window, as a client will quickly jump ship to a rival in search of a better deal.#-ad_banner-# Yet as the economy strengthens, the whole dynamic changes. Once a clear economic upturn is underway, competition… Read More

Insurance agents reach for the antacids whenever the economy slows down. Their clients start to look for ways to trim costs, and reduced insurance coverage (and the smaller premiums they are charged) eats into the insurers’ bottom lines. Any hopes of actually raising insurance premiums go out the window, as a client will quickly jump ship to a rival in search of a better deal.#-ad_banner-# Yet as the economy strengthens, the whole dynamic changes. Once a clear economic upturn is underway, competition becomes less cutthroat, clients grow less sensitive to the cost of insurance, and insurers can finally push through long-delayed premium increases. With the U.S. economy on the mend — economists expect U.S. GDP to rise at nearly a 3% pace in the second half of this year — the stage is set for insurers to move back into the sweet spot of their pricing cycle. Right about now, you… Read More

Insurance agents reach for the antacids whenever the economy slows down. Their clients start to look for ways to trim costs, and reduced insurance coverage (and the smaller premiums they are charged) eats into the insurers’ bottom lines. Any hopes of actually raising insurance premiums go out the window, as a client will quickly jump ship to a rival in search of a better deal.#-ad_banner-# Yet as the economy strengthens, the whole dynamic changes. Once a clear economic upturn is underway, competition… Read More

Insurance agents reach for the antacids whenever the economy slows down. Their clients start to look for ways to trim costs, and reduced insurance coverage (and the smaller premiums they are charged) eats into the insurers’ bottom lines. Any hopes of actually raising insurance premiums go out the window, as a client will quickly jump ship to a rival in search of a better deal.#-ad_banner-# Yet as the economy strengthens, the whole dynamic changes. Once a clear economic upturn is underway, competition becomes less cutthroat, clients grow less sensitive to the cost of insurance, and insurers can finally push through long-delayed premium increases. With the U.S. economy on the mend — economists expect U.S. GDP to rise at nearly a 3% pace in the second half of this year — the stage is set for insurers to move back into the sweet spot of their pricing cycle. Right about now, you… Read More