There’s a disconnect in the market, observes the author of today’s article: While money managers are currently selling hard, company insiders are buying aggressively – especially when it comes to cyclical sectors that have been the hardest hit, such as the housing sector. Against this backdrop, the author examines why two big names in the housing sector – Home Depot and Lowe’s – are attractive picks despite being largely hated by investors. For more – including a contrarian view on buying homebuilder stocks.CLICK HERE.
For mature companies without significant growth opportunities to fund, and with shareholders to please, there are two standard ways to use excess cash: distribute said cash directly to shareholders in the form of dividends, or use it to buy back shares. But which of these approaches is better for investors? Today’s article examines this question – including looking at the tax implications of each approach for investors. For more, CLICK HERE.
Back in August, the author of today’s article saw a trade opportunity in a giant cable and broadband provider – and since that time, shares of that company have outperformed the S&P 500 by almost 12%. The reason he saw an opportunity in the company, as he explains, is that, while the “market isn’t wrong about the fact that cable customers are choosing to ‘cut the cord’ at a rapid pace… the market is very wrong about… how this is going to impact the cable companies” – and now he is eyeing shares of another undervalued cable and broadband provider. For more, CLICK HERE.
When it comes to finding investment opportunities, one approach is to use the options market and look for options with unusual activity. The author of today’s article notes that “Understanding how a company’s options usually move can prepare you to find moments where they’re making unusual moves. And by looking at options with unusual activity, you can get an idea of where larger investors in the options market are placing their bets.” For more, CLICK HERE.
When it comes to where to put their money in 2019, investors may not want to pursue an “America First” approach. At least that’s the position laid out by Morgan Stanley in its recent Global Strategy Outlook report for next year, with the investment bank preferring “stocks in emerging markets to those in the U.S. because it is predicting stable growth in those economies in 2019, versus a slowing expansion stateside.” For the emerging markets Morgan Stanley is most bullish on, which types of stocks it prefers within those markets, and why, despite its preference for EM stocks over U.S. stocks, it is not overly excited about equities overall, CLICK HERE.
What insights emerged when a roundtable of investing pros was convened to discuss the state of the economy and the stock market heading into 2019? Today’s article highlights some of them – spanning topics from stock valuations, the IPO market, the importance of environmental, social, and governance (ESG) factors, China, technological disruption – and where the greatest risks and the greatest opportunities may lie in 2019. For more – including some specific stock recommendations – CLICK HERE.
When the stock market is viewed as a singular entity, rather than as a market made up of individual stocks, babies (quality stocks) can get thrown out with the bathwater (selling action) during periods of volatility – and this provides an opportunity for value investors. Today’s article highlights four such value prospects – stocks that the author notes had “fine earnings reports but sold off anyway. These companies are all trading at a significant discount to their long-term averages with forward-looking growth expectations in-line with historical performance, signaling an irrational gap in pricing.” For these four stocks, CLICK HERE.
These are chaotic times – and the author of today’s article advocates “holding gold mining stocks in your portfolio as a hedge against global chaos.” But which gold mining stocks might be the best picks? After a quick primer on gold mining stocks and how to determine what qualifies as a top gold mining stock, the author highlights his top three gold mining stock picks right now – and what makes them so. For more, CLICK HERE.
“What goes up must come down” is a law of physics – and it’s also the basis of the trade idea outlined in today’s article. Specifically, this trade applies the “what goes up must come down” rule to market volatility, with the author noting that volatility mean reversion is “a predictable pattern that we can take advantage of as options traders.” For more on this trade that can be used to profit from market volatility (which there has been plenty of recently!), CLICK HERE.
Low-priced stocks offer smaller investors the chance to not only make a tidy profit (as these stocks can provide the largest short-term gains), but also to acquire a higher share count than they would be able to of large and mega-cap stocks. Today’s article highlights five low-priced (trading under $10) biotech stocks that analysts see as having solid upside potential. For these five biotechs – including two potential takeover targets – that may be especially appealing to more aggressive traders, CLICK HERE.