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January 2010

Friday's Job Numbers Will Overshadow Today's

January 6, 2010

Wall Street is moving sideways today after setting a new 15-month high earlier in the week, as investors got the jitters after unemployment numbers came in mixed. However, Friday's labor numbers will be the real market-mover this week. Friday's Job Numbers Will Overshadow Today's

December 2009

Happy New Year!

December 31, 2009

After an ugly start, this was a great year for stocks. Happy New Year!

Demand for Crude Fell Last Week

December 30, 2009

Refineries are now running at over 80% capacity. Demand for Crude Fell Last Week

Consumer Confidence Rises Again

December 29, 2009

Levels are still very low, but this key gauge of consumers is up for the second straight month. This bodes very well for some of the stocks on our Buy List. Consumer Confidence Rises Again

Consumer Confidence Rises Again

December 29, 2009

Levels are still very low, but this key gauge of consumers is up for the second straight month. This bodes very well for some of the stocks on our Buy List. Consumer Confidence Rises Again

Consumer Confidence Rises Again

December 29, 2009

Levels are still very low, but this key gauge of consumers is up for the second straight month. This bodes very well for some of the stocks on our Buy List. Consumer Confidence Rises Again

Consumer Confidence Rises Again

December 29, 2009

Levels are still very low, but this key gauge of consumers is up for the second straight month. This bodes very well for some of the stocks on our Buy List. Consumer Confidence Rises Again

Consumer Confidence Rises Again

December 29, 2009

Levels are still very low, but this key gauge of consumers is up for the second straight month. Consumer Confidence Rises Again

Strong Holiday Sales Lift Stocks

December 28, 2009

Retails sales were up 3.6% this holiday season. Strong Holiday Sales Lift Stocks

A Lesson in Stay-the-Course Investing

December 23, 2009

One hedge fund manager made $2.5 billion by betting on a recovery. A Lesson in Stay-the-Course Investing

Q3 GDP Revised Down to 2.2%

December 22, 2009

The market is digesting the GDP report and the existing home sales report. Q3 GDP Revised Down to 2.2%

Earnings Roundup

December 17, 2009

Today we got earnings reports from Oracle, General Mills, FedEx and others. Earnings Roundup

Leading Economic Indicators Increase for Eighth Straight Month

December 17, 2009

Today's report signals that the economy will continue to improve during the first half of 2010. Leading Economic Indicators Increase for Eighth Straight Month

The Fed Keeps the Language the Same

December 16, 2009

The central bank will keep rates low for "an extended period." The Fed Keeps the Language the Same

Best Buy Beats on Earnings But Shares Fall

December 16, 2009

The earnings report was good, but margins are expected to contract this quarter. Best Buy Beats on Earnings But Shares Fall

Core Inflation Remained Tame in November

December 16, 2009

Consumer prices rose 0.4% last month, but excluding food and energy, prices were unchanged. Core Inflation Remained Tame in November

Preview of this Week's Fed Meeting

December 15, 2009

I expect Bernanke & Co. to keep rates low. Preview of this Week's Fed Meeting

Exxon to Buy XTO for $31 Billion

December 14, 2009

The energy giant is making a big move into natural gas. Exxon to Buy XTO for $31 Billion

Citigroup to Exit TARP Program

December 14, 2009

Citi was the last major bank still in the TARP program. Citigroup to Exit TARP Program

Retails Sales Report Lifts Stocks

December 11, 2009

Retails sales more than doubled expectations. Retails Sales Report Lifts Stocks

Medifast Benefits from Slim Fast Recall

December 9, 2009

Shares of Medifast have tripled for us since I recommended it in July. Medifast Benefits from Slim Fast Recall

The Greek Stock Market Tumbles

December 8, 2009

Investors are dumping Greek stocks and bonds as there are concerns whether the country can meet its debt payments. The Greek Stock Market Tumbles

Bernanke Addresses Frequently Asked Questions

December 7, 2009

Ben Bernanke discusses where the economy is headed. Bernanke Addresses Frequently Asked Questions

TARP Won't Lose as Much as Originally Thought

December 7, 2009

The TARP program will "only" lose $42 billion. TARP Won't Lose as Much as Originally Thought

Stay Away from Toll Brothers

December 4, 2009

The homebuilder isn't out of the woods just yet. Stay Away from Toll Brothers

Del Monte Jumps on Earnings

December 4, 2009

Del Monte Foods' (DLM) earnings jumped 24% over last year and the company raised its full-year outlook, sending shares higher. This is no surpriseto my eletter readers, who already have profited from my buy recommendation for DLM. Del Monte Jumps on Earnings

The November Jobs Report

December 4, 2009

The unemployment drops to 10%. The November Jobs Report

GE Sells NBC to Comcast

December 3, 2009

The S&P 500 hit a fresh bull-market high this morning. GE Sells NBC to Comcast

Weak Dollar Leads Mercedes to Build Cars Here

December 2, 2009

The falling U.S. dollar is starting to have major consequences for the economy. Weak Dollar Leads Mercedes to Build Cars Here

Green Mountain Raises Bid to $35 Per Share

December 2, 2009

The bidding war continues. Let's see if Peet's responds. Green Mountain Raises Bid to $35 Per Share

Peet's Strikes Back

December 1, 2009

The bid for Diedrich now stands at $32.50. Peet's Strikes Back

December Starts with a Rally

December 1, 2009

The market is higher this morning on news that AIG has paid back $25 billion in debt to taxpayers. December Starts with a Rally

November 2009

Chicago PMI Lifts Stocks

November 30, 2009

The stock market has turned around this morning thanks to a good Chicago PMI. Chicago PMI Lifts Stocks

Emerging Market IPOs Soar

November 30, 2009

Returns for initial offerings in emerging markets are beating ones in developed markets by 15 to 1! Emerging Market IPOs Soar

Happy Thanksgiving!

November 25, 2009

I want to wish everyone a Happy Thanksgiving... Happy Thanksgiving!

Economic News Turns Mostly Positive

November 25, 2009

Economic news turns mostly positive just before the Thanksgiving Day holiday. Economic News Turns Mostly Positive

Existing Home Sales Soar

November 23, 2009

Sales of existing homes rose to their highest level in nearly three years. Existing Home Sales Soar

A Bidding War Erupts for Diedrich Coffee

November 23, 2009

Green Mountain outbids Peet's -- and Peet's responds! A Bidding War Erupts for Diedrich Coffee

The Latest at Navellier Growth

November 20, 2009

Here's at some of my latest comments about everything from investing in China to solar stocks to the best ETFs to buy right now. The Latest at Navellier Growth

Dell's Lousy Quarter

November 20, 2009

The computer-maker saw its earnings plunge by 54%. Dell's Lousy Quarter

Continue to Avoid Netease.com

November 19, 2009

NTES shares have now pulled back more than 10% from a 52-week set in late September. I told my Global Growth subscribers to sell this stock in early October and lock in a dramatic 67% gain. We certainly made the right choice with our sale, since it protected our big profits. Continue to Avoid Netease.com

Geithner Sees More Economic Growth

November 19, 2009

The Treasury Secretary sees the economy growing in this quarter and into next year. Geithner Sees More Economic Growth

CPI +0.3%

November 18, 2009

Today's CPI report was in line with expectations. CPI +0.3%

Heat Continues to Boil

November 17, 2009

SmartHeat soars again today. Heat Continues to Boil

Producer Prices and Target's Earnings

November 17, 2009

Target's earnings and today's PPI report are related. Here's why. Producer Prices and Target's Earnings

SmartHeat Soars 34%

November 16, 2009

The China-based firm's earnings doubled over the past year. SmartHeat Soars 34%

GM Posts $1.15 Billion Loss

November 16, 2009

Over the last five years, GM has lost $88 billion. GM Posts $1.15 Billion Loss

Trade Deficit Widens; Eurozone Out of Recession

November 13, 2009

After five straight declines, the trade deficit grew in September. Trade Deficit Widens; Eurozone Out of Recession

ESPN Gives Disney a Boost

November 13, 2009

Disney posts a nice earnings gain, but I want to see more evidence of a turnaround. ESPN Gives Disney a Boost

Walmart's Earnings Top Forecasts

November 12, 2009

Walmart posts improving earnings, but it's due to cost control not growth. Walmart's Earnings Top Forecasts

Green Mountain's Earnings

November 11, 2009

The coffee stock beats estimates but guides below the Street for this quarter. Green Mountain's Earnings

The Business Boom in Brazil

November 11, 2009

"The biggest concentration of billion dollars in investment per square kilometer in the world." The Business Boom in Brazil

Weight Watchers Is Still a Sell

November 10, 2009

The weight-loss company beat earnings, but it's still not my top stock in the field. Weight Watchers Is Still a Sell

The 2009 Gold Rush

November 10, 2009

The Indian Fed buys 200 tons of gold. The 2009 Gold Rush

Kraft Makes Hostile Bid for Cadbury

November 9, 2009

The war for the candy stock is starting to get rough! Kraft Makes Hostile Bid for Cadbury

The Debt Clock

November 9, 2009

Here's a look at our financial commitments. The Debt Clock

Unemployment Reaches 10.2%

November 6, 2009

The jobless rate reaches a 26-year high. Unemployment Reaches 10.2%

Hansen Misses Earnings

November 5, 2009

The Monster Energy drink stock falls three cents short of Wall Street's consensus. Hansen Misses Earnings

Starbucks Raises Guidance

November 5, 2009

The coffee-shop chain continues its remarkable turnaround. Starbucks Raises Guidance

Our 145% Profit in Medifast

November 5, 2009

Shares of the health and diet stock are at another 52-week high. Our 145% Profit in Medifast

Looking at Insurance Stocks; Earnings from Allstate and Prudential

November 5, 2009

Insurance companies are posting major gains from last year thanks to much better weather. Looking at Insurance Stocks; Earnings from Allstate and Prudential

Gold Continues to Rise, How to Play the Rally

November 5, 2009

The yellow metal is close to $1,100 an ounce. Here are some of my favorite gold stocks. Gold Continues to Rise, How to Play the Rally

Productivity Soars to Six-Year High

November 5, 2009

Worker productivity soars 9.5%. Productivity Soars to Six-Year High

The Fed Leaves Rates Unchanged

November 4, 2009

Here's today's policy statement: The Fed Leaves Rates Unchanged

Stocks and Gold Are Up this Morning

November 4, 2009

Stocks are up slightly ahead of the Fed's announcement. Stocks and Gold Are Up this Morning

Peet's to Buy Diedrich Coffee

November 3, 2009

It's a coffee merger! Peet's to Buy Diedrich Coffee

Buffett Buys Burlington Northern

November 3, 2009

The legendary investing tycoon is hitting the rails! Buffett Buys Burlington Northern

Navellier Seminars

November 2, 2009

I'll be speaking this week near Portland and Seattle. Navellier Seminars

Ford Earns Surprising Profit

November 2, 2009

The car company made $1 billion last quarter. Ford Earns Surprising Profit

CIT Group Files for Bankruptcy

November 2, 2009

The 101-year-old company is now the fifth-largest bankruptcy in U.S. history. CIT Group Files for Bankruptcy

October 2009

Talking Stocks on Fast Money

October 30, 2009

Here's my appearance on Fast Money yesterday. Talking Stocks on Fast Money

More Telecom Earnings

October 29, 2009

Here's my take on the earnings news from Motorola and Sprint. More Telecom Earnings

Office Depot Vs. OfficeMax

October 29, 2009

Difficult times for the office supply stores. Office Depot Vs. OfficeMax

GDP +3.5%

October 29, 2009

After four straight down quarters, GDP is finally rising again. GDP +3.5%

Seven Housing Stocks to Sell

October 28, 2009

We got more bad news on housing today, but here are seven housing stocks that no one should own. Seven Housing Stocks to Sell

Apollo Shares Take Hit on SEC Probe

October 28, 2009

Apollo Group had a very good earnings report but the stock is down on news that the SEC is looking into its accounting. Apollo Shares Take Hit on SEC Probe

Strong Earnings for Peet's Coffee

October 28, 2009

Peet's Coffee just came out with great earnings and raised guidance. Find out my top buys among coffee stocks. Strong Earnings for Peet's Coffee

The Emerging Market for Small Nuclear Reactors

October 27, 2009

Japan's major nuclear reactor manufacturers have begun developing small nuclear power systems. Toshiba, Mitsubishi and Hitachi have all gotten involved. The Emerging Market for Small Nuclear Reactors

Housing Is Still Hurting

October 27, 2009

Today's Case-Shiller Index showed that home prices rose for the third straight month, but are still way down from a year ago. Housing Is Still Hurting

AMGN a Victim of Investor Sentiment

October 26, 2009

Amgen looks like a great stock on paper, and has outstanding fundamental grades. So why did Wall Street just decide to panic and dump shares of this stock if all the numbers indicate the company is doing well? AMGN a Victim of Investor Sentiment

Amazon, Ebix and Diedrich Coffee Continue to Rally

October 26, 2009

Stocks started out strong today, we even cracked 1,090 again for the S&P 500, but we're now back in the red. Amazon, Ebix and Diedrich Coffee Continue to Rally

A Look at the Week Ahead

October 26, 2009

This will be another busy week for earnings, plus Wall Street is eagerly waiting for Thursday's GDP report. A Look at the Week Ahead

Verizon Delivers Earnings Surprise

October 26, 2009

Wall Street is pleased over Verizon's earnings beat but I'm still not impressed. Verizon Delivers Earnings Surprise

More Earnings; Hershey, OxyPete and Alexion

October 22, 2009

The Dow is back over 10,000 this afternoon thanks to more good earnings news. More Earnings; Hershey, OxyPete and Alexion

Leading Economic Indicator at 2-Year High

October 22, 2009

Today's report on leading economic indicators were up again, although jobless also rose. See my latest articles at Navellier Growth. Leading Economic Indicator at 2-Year High

McDonald's Profits Rise

October 22, 2009

The fast-food stalwart had a decent earnings report for the third quarter. Here's my take. McDonald's Profits Rise

The Dollar Break $1.50 Against the Euro

October 21, 2009

The U.S. dollar continues its freefall. The Dollar Break $1.50 Against the Euro

Bank Earnings: Morgan Stanley, Wells Fargo, Northern Trust, KeyCorp, US Bancorp

October 21, 2009

Today is a big day for bank earnings. Here's a look at some top reports. Bank Earnings: Morgan Stanley, Wells Fargo, Northern Trust, KeyCorp, US Bancorp

Producer Prices Plunge -0.6%

October 20, 2009

Today's PPI report shows wholesale deflation, but next month's report may be quite different. Producer Prices Plunge -0.6%

Badmouthing the Greenback

October 20, 2009

My take on why it's a near impossibility that the U.S. dollar will firm up anytime soon. Badmouthing the Greenback

Apple's Profits Soar

October 20, 2009

Apple stunned Wall Street by reporting earnings growth of 47%. Apple's Profits Soar

The Coffee Surge

October 19, 2009

Here are two outstanding coffee stocks. The Coffee Surge

Navellier Seminars

October 19, 2009

I'm holding two seminars in North Carolina this week. Navellier Seminars

What's on Tap this Week

October 19, 2009

This is going to be a big week for corporate earnings reports. What's on Tap this Week

Industrial Production Rises Again

October 16, 2009

The Federal Reserve reports that industrial production rose for the third straight month. Industrial Production Rises Again

Medifast and Green Mountain Coffee Named Best Small Companies

October 16, 2009

Two of my top-rated Emerging Growth stocks are recognized by Forbes. Medifast and Green Mountain Coffee Named Best Small Companies

Now the Bad Earnings

October 16, 2009

The market is under pressure this morning from a few poor earnings reports. Now the Bad Earnings

Thursday Earnings Roundup

October 15, 2009

Here's a rundown of some of today's earnings reports. Thursday Earnings Roundup

Earnings Outlook Wednesday After-Hours

October 15, 2009

Here's my CNBC appearnce from Wednesday at 5. I'll be on twice a day during earnings season. Earnings Outlook Wednesday After-Hours

The Fed Is Divided on Inflation

October 14, 2009

The latest Fed minutes show division at the central bank on inflation. My take is that stagflation will make a comeback. The Fed Is Divided on Inflation

Earnings Outlook #3

October 14, 2009

This is Wednesday's earnings discussion on CNBC. Earnings Outlook #3

Intel Leads the Market Higher

October 14, 2009

The Dow is close to 10,000 this morning thanks to Intel's earnings report. Intel Leads the Market Higher

Earnings Outlook on CNBC

October 13, 2009

Here I am on CNBC discussing the third-quarter earnings outlook. Earnings Outlook on CNBC

GM Will Sell Hummer

October 13, 2009

General Motors has reached a deal to sell its Hummer brand to a Chinese company. GM Will Sell Hummer

Top Stories at Navellier Growth

October 13, 2009

Here are some major items impacting the markets. Top Stories at Navellier Growth

Cisco to Buy Starent for $2.9 Billion

October 13, 2009

Cisco makes its second big merger move of the month. Cisco to Buy Starent for $2.9 Billion

CNOOC Takes on ExxonMobil

October 12, 2009

Exxon may no longer be the big kid on the block in the world oil market. CNOOC Takes on ExxonMobil

Wall Street Makes New 2009 Highs

October 12, 2009

The bull still charges. The major indexes are at new highs this morning. Wall Street Makes New 2009 Highs

OxyPete Gains from Citigroup Fire Sale

October 9, 2009

Occidental Petroleum picks up Citi's highly profitable energy trading unit. OxyPete Gains from Citigroup Fire Sale

A Closer Look at the Weak Dollar

October 9, 2009

Here's what it means when the U.S. dollar gets weak. A Closer Look at the Weak Dollar

Earnings From Marriott and Pepsi

October 8, 2009

There are more earnings reports coming in and gold continues to rally. Earnings From Marriott and Pepsi

Make Sure You Have Enough International Exposure

October 8, 2009

Here's part of a recent interview I did with SmallCapInvestor. Make Sure You Have Enough International Exposure

Alcoa's Earnings Plunge but Top Expectations

October 7, 2009

Alcoa's earnings plunge from 33 cents a share to just four cents a share, but it still beat the consensus forecast. Alcoa's Earnings Plunge but Top Expectations

Monsanto Beats the Street, But Don't Be Too Impressed

October 7, 2009

Monsanto beats earnings, but the stock is still a Sell. Monsanto Beats the Street, But Don't Be Too Impressed

Gold Soars to New All-Time High

October 6, 2009

After 19 months, gold has finally made a new all-time high. Gold Soars to New All-Time High

Brocade Puts Itself Up for Sale

October 5, 2009

Shares of Brocade are up nicely today as the company will put itself up for sale. Brocade Puts Itself Up for Sale

Rio Wins 2016 Olympics

October 2, 2009

Rio will host the Olympics, so what does it mean from Brazilian stocks? Rio Wins 2016 Olympics

My Worries about the Job Market

October 2, 2009

With today's jobs report depressing Wall Street, here are my thoughts on what will impact the jobs market going forward. My Worries about the Job Market

The September Jobs Report

October 2, 2009

The hoped-for turnaround in the jobs market didn't happen last month. The September Jobs Report

Mixed Economic News Today

October 1, 2009

The market is digesting higher jobless claims but also improved consumer spending reports. Mixed Economic News Today

September 2009

Looking Ahead to Friday's Employment Report

September 30, 2009

Today's GDP report was much better than expected. Looking Ahead to Friday's Employment Report

The Stock Market Is Cleaning House

September 29, 2009

The market is preparing itself for a very strong earnings season. The Stock Market Is Cleaning House

$3.5 Trillion In Cash on the Sidelines

September 28, 2009

There's still plenty of cash to fuel this rally. $3.5 Trillion In Cash on the Sidelines

Bet On Better Earnings

September 28, 2009

Here's my appearance on Bloomberg TV. Bet On Better Earnings

Shanda Games Goes Public

September 25, 2009

Shanda Interactive spun-off its Shanda Games unit today in the biggest IPO of the year. Shanda Games Goes Public

Shares of RIMM Down Sharply

September 25, 2009

Shares of Research In Motion have been down by as much as 15% today due to a disappointing forecast. Shares of RIMM Down Sharply

Jobless Claims Fall

September 24, 2009

Today's report on jobless claims showed a fall, but I expect the unemployment rate to continue to rise. Jobless Claims Fall

The Fed Leaves Rates Alone

September 23, 2009

The FOMC decided on no change to current interest rate policy. The Fed Leaves Rates Alone

Autozone's Earnings Rise 11%

September 23, 2009

Autozone is down today although the company reported healthy earnings growth. Autozone's Earnings Rise 11%

China's Greentech Revolution

September 22, 2009

China's green technology market has the potential to grow to $1 trillion by 2013. China's Greentech Revolution

Inflation on the Rise

September 22, 2009

Last week's economic reports show that inflation is still a concern. Inflation on the Rise

The Dollar Is the New Yen

September 21, 2009

For the carry-trade, the U.S. dollar has replaced the yen. The Dollar Is the New Yen

Amazon: Wal-Mart of the Web

September 21, 2009

The New York Times asks, "Can Amazon Be Wal-Mart of the Web?" Amazon: Wal-Mart of the Web

Top News Today

September 21, 2009

Here are some important stories impacting the stock market today. Top News Today

Tessera Guides Higher

September 17, 2009

Tessera Technologies is rallying today on news of higher revenue guidance. Tessera Guides Higher

Amazon Soars 8.6%

September 17, 2009

Shares of Amazon had a strong rally yesterday. Here's my take. Amazon Soars 8.6%

Consumer Inflation and Industrial Production

September 16, 2009

We got a very good report on industrial production. Consumer Inflation and Industrial Production

PPI and Retail Sales

September 15, 2009

We got very good news this morning on retail sales. PPI and Retail Sales

President Obama's Speech on Wall Street

September 14, 2009

Here's the text of the speech President Obama gave at Federal Hall on Wall Street today. President Obama's Speech on Wall Street

"Obscene and Growing"

September 14, 2009

John Dorfman quotes me today at Bloomberg.

Wall Street Fears a Trade War

September 14, 2009

Wall Street is lower in today's trading on fear of an emerging trade between the U.S. and China. Wall Street Fears a Trade War

Preview of the October Blue Chip Growth Issue

September 14, 2009

Here's a quick preview of what I'll have to say in the October issue of Blue Chip Growth. Preview of the October Blue Chip Growth Issue

Consumer Sentiment Improves

September 11, 2009

The latest reading on consumer sentiment shows a big increase from last month, and it was well ahead of expectations. Consumer Sentiment Improves

The Recession May Finally Be Over

September 10, 2009

Yesterday's Beige Book report from the Federal Reserve shows that economic activity is stabilizing or improving in the vast majority of the country. The Recession May Finally Be Over

Inflation Shifts Front and Center

September 9, 2009

Now that the economy is finally showing signs of improvement, economists are beginning to worry about inflation. Inflation Shifts Front and Center

A Lost Decade

September 8, 2009

Over the last ten years, the economy has managed to create a net loss of over 200,000 jobs. A Lost Decade

Kraft Makes Bid for Cadbury

September 8, 2009

Kraft Foods stunned Wall Street by making a $16 billion bid for Cadbury PLC. Kraft Makes Bid for Cadbury

The August Jobs Report

September 4, 2009

Today's jobs report showed that the unemployment rate jumped to 9.7% for August. The August Jobs Report

Uncle Sam's Debt Is Becoming Too Much to Bear

September 2, 2009

The White House recently said the national debt will grow by $9 trillion over the next decade, up from its previous forecast of $7 trillion. Uncle Sam's Debt Is Becoming Too Much to Bear

Ebix Hits New High

September 1, 2009

In just six months, Ebix is up 190% for us! Ebix Hits New High

August 2009

Disney (DIS) in Buy Marvel (MVL) is $4 Billion Stock Deal

August 31, 2009

Shares of Marvel are up as much as 26% today. Disney (DIS) in Buy Marvel (MVL) is $4 Billion Stock Deal

Don't be Tempted by Dell and Intel

August 28, 2009

Both Dell and Intel are up today, but I still have them rated as Sells. Don't be Tempted by Dell and Intel

GDP & Jobless Claims

August 27, 2009

The market is digesting this morning's report on Q2 GDP and last week's jobless claims. GDP & Jobless Claims

Aeropostale (ARO) Breaks $40

August 26, 2009

Shares of the teen retailer continue to rally. Aeropostale (ARO) Breaks $40

The Cloud over the Sunshine State

August 26, 2009

The economy and housing market in Florida are in rough shape and may not get better soon. The Cloud over the Sunshine State

Obama Nominates Bernanke

August 25, 2009

It's official -- Obama is going to renominate Bernanke. Obama Nominates Bernanke

How a Weaker Dollar Will Fix the Economy

August 25, 2009

The U.S. dollar was weak again last week and that's good news for the economy. How a Weaker Dollar Will Fix the Economy

Navellier Seminars

August 24, 2009

I'm holding two Navellier Seminars in the Midwest this week. Navellier Seminars

Report from Jackson Hole, Wyoming

August 24, 2009

The Federal Reserve held its annual meeting last week in Jackson Hole, Wyoming and Ben Bernanke sounded optimistic. Report from Jackson Hole, Wyoming

Leading Economic Indicators Up…Retail Sales Down

August 24, 2009

So far, this is a business-led recovery, with earnings increases based on cost-cutting more than on consumer sales. Leading Economic Indicators Up…Retail Sales Down

Obama Lowers Deficit Estimate

August 20, 2009

Finally some good news on the budget. It looks like the deficit is somewhat less massive than previously thought. Obama Lowers Deficit Estimate

Looking at the Dole Food IPO

August 19, 2009

The market for initial public offerings (IPOs) is going to get a big test when Dole Food jumps on to the publicly-traded market. Looking at the Dole Food IPO

The Market for New Vehicles Is Heating Up

August 18, 2009

The Cash for Clunkers program has caused demand for new vehicles to soar. The Market for New Vehicles Is Heating Up

Southwestern Energy Remains a Solid Buy

August 18, 2009

Even though supply continues to outpace demand for crude oil and natural gas, energy stocks like Southwestern Energy continue to be good buys. Southwestern Energy Remains a Solid Buy

Consumers Are Grumpy

August 17, 2009

The market looks to open lower this morning and one reason is a poor earnings report from Lowe's. Consumers Are Grumpy

Outlook for Third-Quarter GDP

August 14, 2009

We're already at the mid-point of the third quarter. Here's my take on future economic growth. Outlook for Third-Quarter GDP

July CPI and Industrial Production

August 14, 2009

The market got two important economic reports this morning. July CPI and Industrial Production

Weak Retail Sales

August 13, 2009

Wall Street is up slightly this morning, no thanks to weak retail sales numbers. Weak Retail Sales

The Improving Environment for Earnings

August 12, 2009

Although Wall Street thinks that Q3 earnings will be negative, I think they'll finally break into positive territory. Here's why. The Improving Environment for Earnings

China's GDP Shows Strong Growth

August 12, 2009

China's economy continues to grow. In fact, it's probably growing much faster than official estimates. China's GDP Shows Strong Growth

Crude Oil Prices Rise Due to Weakening Dollar

August 11, 2009

The price for oil has been rising even though the world is awash in crude oil. Expect to see even higher prices as the dollar gets weaker. Crude Oil Prices Rise Due to Weakening Dollar

Productivity Surges at Fastest Pace in Six Years

August 11, 2009

A report from the Labor Department shows that workers are doing more with less which is an important key for renewed economic growth. Productivity Surges at Fastest Pace in Six Years

Beware of Data-Mining

August 10, 2009

Analysts on Wall Street will look for any data relationship, no matter how silly. Investors need to avoid these games. Beware of Data-Mining

Cash for Non-Clunkers to the Rescue!

August 10, 2009

Last Thursday, the U.S. Senate approved an additional $2 billion for the Cash for Clunkers program, but are all these old trade-in cars really "clunkers"? Cash for Non-Clunkers to the Rescue!

Emergent BioSolutions Soars 20%

August 7, 2009

Shares of biotech Emergent BioSolutions are up 20% today on the news of strong earnings. Emergent BioSolutions Soars 20%

Surprisingly Strong Jobs Report

August 7, 2009

Wall Street is happy that today's jobs report was much stronger than anyone expected. Surprisingly Strong Jobs Report

Lincoln Educational Services (LINC) Rises on Strong Earnings

August 5, 2009

Lincoln Educational Services is up nicely today thanks to a great earnings report. Lincoln Educational Services (LINC) Rises on Strong Earnings

ADP Reports 371,000 Jobs Lost Last Month

August 5, 2009

ADP said that the economy shed 371,000 jobs last month but Wall Street is still focused on Friday's official report. ADP Reports 371,000 Jobs Lost Last Month

Near a Bottom in Housing

August 4, 2009

The latest data shows that personal income was down in June which indicates that many Americans aren't seeing green shoots. Near a Bottom in Housing

Personal Income Down in June

August 4, 2009

The latest data shows that personal income was down in June which indicates that many Americans aren't seeing green shoots. Personal Income Down in June

The July ISM Manufacturing Index Rises

August 3, 2009

The ISM manufacturing index rose to its highest level since Lehman Brothers went bankrupt. The July ISM Manufacturing Index Rises

Preview for the Week Ahead on Wall Street

August 3, 2009

Wall Street still has lots of earnings reports left, plus the big employment report is due this Monday. Preview for the Week Ahead on Wall Street

The Inventory for $1 Million Homes Now Stands at 20.7 Months

August 3, 2009

The federal government is running the mortgage market and the social re-engineering of America is underway. The Inventory for $1 Million Homes Now Stands at 20.7 Months

July 2009

Q2 GDP -1%

July 31, 2009

The government reported that second-quarter GDP dropped by 1%. Here's what it means. Q2 GDP -1%

Green Mountain Coffee Roasters (GMCR) Rallies After Earnings

July 30, 2009

As I expected, Green Mountain Coffee Roasters easily beat Wall Street's earnings forecast. Green Mountain Coffee Roasters (GMCR) Rallies After Earnings

Opening Bell

July 30, 2009

Here's a look at some top stories impacting the market this morning. Opening Bell

Wright Express (WXS) Jumps on Earnings Report

July 29, 2009

Shares of Wright Express have been up by as much as 12% today thanks to a good earnings report. Here's my take. Wright Express (WXS) Jumps on Earnings Report

Finding Profits in Foreign Stocks

July 29, 2009

Although the market lost ground yesterday, one of my favorite China stocks was up 23%. Find out more. Finding Profits in Foreign Stocks

"Fundamentals Really Matter"

July 29, 2009

Shawn Price, one of my top analysts, was quoted in yesterday's Wall Street Journal.

Housing Slowly Improves

July 28, 2009

After 34 months of nothing but declines, the housing market finally shows signs of life. Housing Slowly Improves

Amgen Rallies on Strong Earnings

July 28, 2009

Amgen is up today after reporting strong results for the second quarter. Here's my take. Amgen Rallies on Strong Earnings

Uncle Sam's Speeding Spree

July 27, 2009

The Federal Reserve still has a lot of money left over in its $1.25 trillion quantitative easing program. Uncle Sam's Speeding Spree

June New Home Sales Rise 11%

July 27, 2009

After a lot of bad news, we may be seeing a turnaround for the housing market. June New Home Sales Rise 11%

MarketWatch: Bernanke Meets the Public

July 27, 2009

MarketWatch notes a rare move, Ben Bernanke has become much more public lately. MarketWatch: Bernanke Meets the Public

Preview for the Week Ahead on Wall Street

July 27, 2009

This will be another important week for earnings. Wall Street is also gearing up for Friday's GDP report which will be our first look at how well the economy did last quarter. Preview for the Week Ahead on Wall Street

Netflix's Earnings Rise 22%

July 24, 2009

Netflix is fighting off the recession. The company just posted another solid quarter. Netflix's Earnings Rise 22%

Earnings Roundup for July 23

July 23, 2009

Earnings season is kicking into overdrive. Here's a look at some of today's earnings reports. Earnings Roundup for July 23

Today's Economic Reports

July 23, 2009

The market is doing very well today. In addition to a slew of earnings reports, there were two important economic reports. Today's Economic Reports

Breakout for Emerging Growth Stocks

July 23, 2009

The new recommendations from the last issue of Emerging Growth are up an average of 16% which is three times that of the overall market. Breakout for Emerging Growth Stocks

Earnings Round-Up for Today

July 22, 2009

Here are some highlights of major earnings reports from today. Earnings Round-Up for Today

Apple's Earnings Rise 15%

July 22, 2009

Shares of Apple are up today on a very strong second-quarter earnings report. Apple's Earnings Rise 15%

Earnings Reports to Watch

July 21, 2009

There are a lot of big-name blue chips rolling out their quarterly reports in the next week. Here are some of the highlights to watch: Earnings Reports to Watch

Yingli Green Energy (YGE) Soars

July 21, 2009

Yingli Green Energy (YGE) is rallying nicely today thanks to news of a new solar subsidy in China. Yingli Green Energy (YGE) Soars

"Tentative Signs of Stabilization"

July 21, 2009

Ben Bernanke heads to Capitol Hill this morning, and he finally has some optimistic comments.

Is the Recession Ending?

July 20, 2009

The latest leading indicators show good news for the economy. This is the third straight monthly increase. Is the Recession Ending?

Preview for the Week Ahead on Wall Street

July 20, 2009

This is another busy week for earnings -- over 150 S&P 500 companies are due to report this week. Also, Ben Bernanke heads to Capitol Hill for a two-day testimony. Preview for the Week Ahead on Wall Street

More Earnings: Bank of America, Citigroup

July 17, 2009

The earnings parade continues. Today we got more news from major banks. Both Bank of America and Citigroup beat analyst estimates. More Earnings: Bank of America, Citigroup

Medifast Breaks Out to New 52-Week High

July 16, 2009

Shares of Medifast (MED) broke out to a new 52-week high this morning. Earnings are due soon and I'm looking for a big earnings surprise. Medifast Breaks Out to New 52-Week High

JPM's Stellar Quarter

July 16, 2009

JPMorgan Chase just reported earnings that were seven times what Wall Street was expecting. JPM's Stellar Quarter

Nice Rally for Stocks

July 15, 2009

Wall Street seems happy today thanks to a good earnings report from Intel. The June report on industrial production was weak, but it could have been a lot worse. Nice Rally for Stocks

The Return of Stagflation

July 15, 2009

This morning's report on consumer prices shows that inflation is popping up. Let's take a closer look at the details. The Return of Stagflation

The New GM

July 14, 2009

GM is out of bankruptcy. The White House wants GM and Chrysler to act as independent companies. What's my view? The New GM

Reports on Retail Sales and Producer Prices

July 14, 2009

The stock market is most flat today. Wall Street is currently digesting two economic reports; retail sales and wholesale inflation. Reports on Retail Sales and Producer Prices

Goldman Sachs Posts Huge Quarter, J&J Beats the Street

July 14, 2009

Today's earnings report from Goldman Sachs has Wall Street rubbing its eyes in disbelief. Here's what I have to say. Goldman Sachs Posts Huge Quarter, J&J Beats the Street

Are Stocks Still the Best Investment for the Long Run?

July 14, 2009

Convention wisdom says that the stock market returns 10% a year on average, but some new research says that that might not be the case. Here's my opinion. Are Stocks Still the Best Investment for the Long Run?

Budget Deficit Tops $1 Trillion

July 13, 2009

The Treasury Department just reported that for the first time ever, the federal budget deficit is over $1 trillion! Worst of all, we still have three months left in the fiscal year! Budget Deficit Tops $1 Trillion

Yen Drops as U.S. Bank Stocks Rally

July 13, 2009

The dollar is down today as Wall Street is waiting to hear the latest earnings report from Goldman Sachs (GS). According to some, it will be a blockbuster. Yen Drops as U.S. Bank Stocks Rally

Preview for the Week Ahead on Wall Street

July 13, 2009

This will be the most important earnings season in a long time. Here's a preview of some of the major events of this week. Preview for the Week Ahead on Wall Street

Most Economists Oppose Another Stimulus

July 10, 2009

The latest buzz is that we need another, larger stimulus bill to help the economy get back on its feet. Most economists are against the idea. Here's my take. Most Economists Oppose Another Stimulus

Ross Stores Raises Forecast

July 9, 2009

The retail sales report was pretty rough for June, but Ross Stores (ROST) continues to thrive. The shares just hit a new 52-week high. Ross Stores Raises Forecast

Retail Sales Continue to Fall

July 9, 2009

The retail sales report for June came out this morning and it shows that many retailers continue to suffer. There are, however, a few retailers I like. Retail Sales Continue to Fall

Alcoa Reports Third Straight Quarterly Loss

July 9, 2009

Earnings season got underway yesterday as Alcoa (AA) reported its third loss in a row. Some analysts are happy that their results topped expectations. See what I have to say. Alcoa Reports Third Straight Quarterly Loss

Amgen Soars 17% on New Study

July 8, 2009

Shares of Amgen are soaring today on news that its experimental bone medicine does a better job than one of its top rivals. This is causing analysts on Wall Street to raise their price targets for AMGN. Amgen Soars 17% on New Study

S&P's Earnings to Drop for Eleventh Straight Quarter

July 7, 2009

The earnings for the S&P 500 will be down for the eleventh straight quarter. While most analysts expect earnings to drop by as much as 20%, it may not be so bad. Read why a weak dollar could help. S&P's Earnings to Drop for Eleventh Straight Quarter

How's GM's Bankruptcy Going?

July 7, 2009

General Motors is expected to emerge from bankruptcy soon, but don't think of investing in it. In an official statement, GM said that its stock will have no value even under the most optimistic scenarios. How's GM's Bankruptcy Going?

ISM Nonmanufacturing Index Hits Highest Level Since September

July 6, 2009

The ISM nonmanufacturing index rose to 47.0 from 44.0, a point above the consensus, 46.0. This is good news. Let's hope we see more. ISM Nonmanufacturing Index Hits Highest Level Since September

A Second Stimulus?

July 6, 2009

Last week's jobs report was awful so now some people are clamoring for another stimulus bill. The problem is that most of the money from the first stimulus bill hasn't even been spent yet! A Second Stimulus?

Preview for the Week Ahead on Wall Street

July 6, 2009

This week will mark the beginning of second-quarter earnings season. Get ready because this is when the winners are separated from the losers. See what else is on tap for this week. Preview for the Week Ahead on Wall Street

Today's Employment Report

July 2, 2009

The government just released its employment report for the month of June, and the results indicated more bad news for the economy. Today's Employment Report

The Flight to Quality Begins

July 1, 2009

Corporate insiders have been selling their stocks 20 times more than they've been buying. Find out what this means for your portfolio. The Flight to Quality Begins

A Preview of Tomorrow's Jobs Report

July 1, 2009

Tomorrow, the government will release its employment report for the month of June. I expect to see more bad news, but it won't be nearly as bad as it was a few months ago. A Preview of Tomorrow's Jobs Report

June 2009

Lincoln Educational Services (LINC) Hits New High

June 30, 2009

Although the market is down this morning, shares of Lincoln Educational Services (LINC) have broken out to a new 52-week. See why I continue to like this stock. Lincoln Educational Services (LINC) Hits New High

The Morning Market

June 30, 2009

The stock market is pulling back this morning on a bad consumer confidence report. Shares of Apollo Group (APOL), however, are up strongly on very good earnings. The Morning Market

Madoff Gets 150 Years

June 29, 2009

The judge just sentenced Bernie Madoff to 150 years in prison. That was the most he could do. Madoff Gets 150 Years

Fuqi International (FUQI) Jumps 18%

June 29, 2009

In the last three-and-a-half months, shares of Fuqi International (FUQI) are up over 470%. Find out why I like this stock right now. Fuqi International (FUQI) Jumps 18%

The Fed Will Continue Gunning the Printing Press

June 29, 2009

The Federal Reserve said last week that it will continue to policy of quantitative easing . This means more pain for the U.S. dollar. The Fed Will Continue Gunning the Printing Press

Preview for the Week Ahead on Wall Street

June 29, 2009

Here's a look at what to expect for the week before the July 4th holiday. Preview for the Week Ahead on Wall Street

Personal Incomes Up

June 26, 2009

News of a rise in personal incomes doesn't seem to be enough to lift the market today. That's probably because much of the 1.4% rise in incomes in May can be attributed to stimulus package, which gave one-time $250 payments to people receiving a variety of social security benefits. Personal Incomes Up

Bed Bath and Beyond Earnings Help Boost Market

June 25, 2009

Higher oil prices and a better-than-expected earnings report from Bed Bath & Beyond (BBBY) sent stocks higher today. Bed Bath and Beyond Earnings Help Boost Market

Lennar Corp. Helps Pull Market Back from Bad Jobless Report

June 25, 2009

The stock market got spooked this morning by a report that jobless claims rose well above the consensus estimates. But the downward push was quickly reversed when homebuilder Lennar Corp (LEN) reported a 63% increase in orders for new home sales over the first quarter. Lennar Corp. Helps Pull Market Back from Bad Jobless Report

Durable Goods Report Boosts Stocks, Especially Tech Stocks

June 24, 2009

Investors were pleasantly surprised by a durable goods report released this morning that showed orders for big-ticket items rose 1.8% in May, well above the consensus estimate, which forecast a drop of 0.9%. Durable Goods Report Boosts Stocks, Especially Tech Stocks

Some Restaurant Stocks Prove Healthy Even in a Soft Economy

June 24, 2009

Yesterday, Darden Restaurants (DRI), operator of Olive Garden, Red Lobster and LongHorn Steakhouse, reported better than expected earnings. Here's why this restaurant stock deserves a place in your portfolio. Some Restaurant Stocks Prove Healthy Even in a Soft Economy

Kroger Reports Increase in Earnings, But Stock Is Hampered by Falling Gas Prices

June 23, 2009

Kroger Co. (KR), one of the nation's largest retail grocery chains, reported an increase in both profits and earnings today. But in addition to supermarkets, Kroger operates 798 gas stations, and the company was hurt by falling gas prices in the first quarter. Kroger Reports Increase in Earnings, But Stock Is Hampered by Falling Gas Prices

Here I Am on Bloomberg Today

June 22, 2009

I was interviewed on Bloomberg today. Here's the video. Here I Am on Bloomberg Today

Smith & Wesson Blows Away Street with Great Earnings

June 22, 2009

Smith & Wesson reported record quarterly earnings today with a whopping 125% increase in fourth quarter profit, 20% increase in fourth quarter sales and 75% increase in earnings per share. Smith & Wesson Blows Away Street with Great Earnings

Smith & Wesson Reports Earnings Today - Expect Good News

June 22, 2009

Smith & Wesson (SWHC) reports earnings today after the close, and I expect the news to be good. Here are the details of SWHC's announcement of its recent acquisition of Universal Safety Response, Inc. (USR). Smith & Wesson Reports Earnings Today - Expect Good News

Crucial Week for Treasuries

June 22, 2009

The fiscal problems in the U.S. are now reported to be keeping President Obama awake at night. Rising interest burdens are expected to raise the current deficit to over $2 trillion in fiscal 2009. Crucial Week for Treasuries

California Jobless Rate May Hit 11.5%

June 19, 2009

The economy in my native state of California is in free fall. California Jobless Rate May Hit 11.5%

Research In Motion Is Still a Hold

June 19, 2009

Blackberry-maker Research In Motion (RIMM) reported earnings after the bell yesterday and the results were pretty good. Research In Motion Is Still a Hold

Jobless Claims Fall

June 18, 2009

We finally had a week of falling jobless claims. This breaks a streak of 21 straight weeks of higher claims; 19 of those weeks were records. Jobless Claims Fall

FedEx Drops on Lousy Guidance

June 17, 2009

One year ago, I listed FedEx (FDX) as a stock to sell immediately. Since then, the stock is down about 35%, and I don't see things getting much better any time soon. The company just announced earnings for its fiscal fourth quarter (ending in May). The earnings report was pretty good--64 cents per share compared with Wall Street's consensus of 51 cents a share. The problem, however, was the company's future guidance. FedEx Drops on Lousy Guidance

Don't Believe the Inflation Headlines

June 17, 2009

This morning, the government reported on consumer inflation for May. The Labor Department said that consumer prices rose just 0.1% last month which was less than the 0.3% expected by Wall Street economists. Don't Believe the Inflation Headlines

Looking Ahead to Earnings Season

June 16, 2009

The second-quarter earnings season is shaping up to better than many analysts expect. Not too long ago, the S&P 500 was forecast to have its second-quarter earnings decline by 20%. But thanks to a decaying U.S. dollar, plus some economic "green shoots," the second-quarter earnings are now expected to decline by 12%. Looking Ahead to Earnings Season

Fed Gov Warsh Warns of Long Slump

June 16, 2009

At 2 p.m., the stock market is down again. The Dow is currently down by about 80 points. Federal Reserve Gov. Kevin Warsh threw some cold water on hopes for a strong recovery. He said he expects business and consumer spending to remain weak for several quarters, and unemployment to remain high. Fed Gov Warsh Warns of Long Slump

Best Buy's Profits Drop

June 16, 2009

It's no secret that retailers are having a tough time. Best Buy (BBY) just reported that its earnings dropped from 43 cents a share in last year's first quarter to 36 cents a share for this year's first quarter. Sales rose 12% to $10.1 billion. Best Buy's Profits Drop

Today's Economic Reports

June 16, 2009

There were three major economic reports this morning. First, wholesale prices rose 0.2% last month. Most of that was due to higher energy prices. If you look at the "core rate," which excludes food and energy, producer prices fell 0.1%. Even with the 0.2% gain, the year-over-year rate is showing its steepest decline since 1949. Today's Economic Reports

Preview for this Week on Wall Street

June 15, 2009

The stock market's rally has gone on for over three months now, but traders still don't seem to be interested in taking profits. That may change this week. Here's a rundown of what's on tap for this week on Wall Street. Preview for this Week on Wall Street

Navellier Seminars

June 15, 2009

I'll be speaking in Atlanta, Georgia tomorrow at the Renaissance Waverly Hotel and Austin, Texas on Wednesday at the Renaissance Austin Hotel. You may attend at no cost, but please call 800-454-1395 to register. I'll review the current market outlook and answer any questions you may have. Navellier Seminars

Wall Street Down In Early Trading

June 15, 2009

The stock market is currently down 200 points this morning. Selling is across the board in many different industries. What's been doing well recently is doing poorly today. Oil, gold and other commodities are down. The Treasury Department said that demand for long-term financial assets dropped in April. Net buying by foreigners was $11.2 billion in April, down from $55.4 billion in March. Wall Street Down In Early Trading

Earnings Outlook #2

June 14, 2009

Here I am on Tuesday discussing earnings on CNBC. Earnings Outlook #2

Del Monte's Earnings Blow Past Estimates

June 12, 2009

I recently raised Del Monte (DLM) to a Strong Buy in Portfolio Grader and it's easy to see why. The company just reported an outstanding quarter. Earnings from continuing operations came in at 35 cents a share, which was more than 34% higher than Wall Street's forecast. Del Monte's Earnings Blow Past Estimates

Consumer Sentiment Edges Up Slightly

June 12, 2009

The Michigan consumer sentiment index rose to 69.0 from 68.7, which was just below Wall Street's consensus of 69.5. This is a surprise. Consumer sentiment should soon falter due to rising unemployment and higher gas prices. Consumer Sentiment Edges Up Slightly

Computer glitch at NYSE halts some floor trading

June 12, 2009

The Michigan consumer sentiment index rose to 69.0 from 68.7, which was just below Wall Street's consensus of 69.5. This is a surprise. Consumer sentiment should soon falter due to rising unemployment and higher gas prices. Computer glitch at NYSE halts some floor trading

Morning Call

June 11, 2009

Here are some of the latest news headlines affecting your money. Morning Call

Synaptics (SYNA) Hits New High

June 11, 2009

Synaptics (SYNA), which is one of my favorite Quantum Growth stocks, broke out to a new 52-week high in this morning's trading. The shares have been as high as $40.94 today. The stock is up over 30% since I first recommended it two months ago. Synaptics (SYNA) Hits New High

Oil Nears $73

June 11, 2009

For the last few months, I've been plugging the theme of higher commodity prices. Only a few weeks ago, oil was close to $40 a barrel. Today it's closing in on $73 a barrel. The news today is that the International Energy Agency raised its demand estimate for this year. The IEA sees demand falling this year but not as much as its previously thought. Oil Nears $73

Home Depot Lifts Guidance

June 10, 2009

Shares of Home Depot (HD) are getting a nice lift today as the company increased its full-year EPS guidance. The company now sees earnings coming in between 20% and 26% lower than last year. The earlier forecast was for a 26% drop. Home Depot Lifts Guidance

New GM Chairman: "I Don't Know Anything about Cars"

June 10, 2009

Uh oh. Edward E. Whitacre Jr. built AT&T Inc. into the biggest U.S. provider of telephone service over a 43-year-career. By his own admission, he becomes chairman of General Motors Corp. knowing nothing about the auto industry. New GM Chairman:

Green Mountain Coffee Roasters Splits 3-for-2

June 9, 2009

Shares of Green Mountain Coffee Roasters (GMCR) will split 3-for-2 today. That means that shareholders will get one extra share for every two shares they currently own. Green Mountain Coffee Roasters Splits 3-for-2

Treasury Allows TARP Repayment

June 9, 2009

The big news today is that the Treasury Department will allow 10 major banks to pay back $68 billion in TARP money. The Treasury hasn't said which ten, but I assumed it's the banks that fared the best during the stress test. This would be banks like Goldman Sachs (GS) and JPMorgan Chase (JPM). Treasury Allows TARP Repayment

Alliance One International (AOI) Soars

June 9, 2009

One of my favorite small-cap tobacco stocks is rallying today on a strong earnings report. Alliance One International (AOI) has been up by as much as 17% today. For their last fiscal year, AOI saw its net income rise more than 684% to $132.6 million. On a per-share basis, AOI made $1.50 which means the stock is going for less than four times earnings. Alliance One International (AOI) Soars

The Housing Fiasco Continues

June 9, 2009

Recently, there's been a lot of hope that the housing mess is coming to an end. In my opinion, we're not even close to the end. Consider one simple fact: Inventories of homes are almost twice their normal level. On top of that, fixed mortgage rates haven't been falling--they're rising. The average rate for a 30-year fixed mortgage is now 5.25%. It's gotten so high that mortgage applications are falling. The Housing Fiasco Continues

Preview for the Week Ahead on Wall Street

June 8, 2009

On Monday, the Dow Jones Industrial Average will officially change. For the first time since 1925, General Motors will no longer be part of the Dow. Citigroup (C) and GM (GM) are out. Cisco (CSCO) and Travelers (TRV) are in. Preview for the Week Ahead on Wall Street

Gordon Brown's Government Is "Collapsing Before Our Eyes"

June 8, 2009

On Saturday, President Obama gathered with the leaders of Canada, Britain and France in Normandy to commemorate the 65th anniversary of the D-Day landings. One of the leaders, Britain's Prime Minister Gordon Brown, is facing a war of his own. His government is, to quote Tory leader David Cameron, "collapsing before our eyes." Gordon Brown's Government Is

Are Bank Stocks Safe?

June 8, 2009

One of the most frequent topics I'm asked about is bank stocks and whether they're now safe to own. Even though many banks, like Citigroup (C), Bank of America (BAC), JPMorgan Chase (JPM) and Well Fargo (WFC) are now rated A or B on Portfolio Grader, many of these banks have been conducting secondary stock offerings to repay their TARP money, which will likely impede their near-term performance. Are Bank Stocks Safe?

Unemployment Jumps to 9.4%

June 5, 2009

The Labor Department reported that that nation's unemployment rate jumped to 9.4% last month which is the highest reading in over 25 years. Despite the awful news, Wall Street is actually pleased because payrolls dropped by only 345,000. Unemployment Jumps to 9.4%

Oil Is on the Rise

June 5, 2009

As I've been predicting, the huge government spending is putting pressure on the dollar and that's causing commodity prices to rise. Oil Is on the Rise

Shanda's Earnings Top Views

June 3, 2009

We got more good news yesterday from Shanda (SNDA), which is one of my top China online game stocks. The company reported earnings of 78 cents a share, five cents more than expectations. Online gaming is very popular in China and companies like Netease.com (NTES) and Shanda have made huge gains. The company's revenues soared 47% to $155 million. Shanda's Earnings Top Views

Williams-Sonoma Swings to Loss

June 3, 2009

The retail environment has been horrible and even the best companies are losing money. This morning we learned that Williams-Sonoma (WSM) reported a loss for its fiscal first quarter which ended on May 3. In addition to Williams-Sonoma stores, the company also runs Pottery Barn and West Elm. For the quarter, the company lost 14 cents a share. The only bright spot is that this was seven cents better than expectations. Williams-Sonoma Swings to Loss

Bernanke Tells Congress to Cut Spending

June 3, 2009

Bernanke is testifying before Congress today and here's part of what he said: The recent projections from the Social Security and Medicare trustees show that, in the absence of programmatic changes, Social Security and Medicare outlays will together increase from about 8-1/2 percent of GDP today to 10 percent by 2020 and 12-1/2 percent by 2030. With the ratio of debt to GDP already elevated, we will not be able to continue borrowing indefinitely to meet these demands. Bernanke Tells Congress to Cut Spending

The First-Quarter GDP Report

June 1, 2009

On Friday, the Commerce Department reported that U.S. GDP in the first quarter was revised up to a 5.7% annualized decline from its initial estimate of a 6.1. The First-Quarter GDP Report

ArcSight Continues to Surge

June 1, 2009

A few weeks ago, I highlighted tiny ArcSight (ARST) of Cupertino, CA. Earnings are due out on June 11. The stock has been charging since midday Friday. ArcSight Continues to Surge

The First-Quarter GDP Report

June 1, 2009

On Friday, the Commerce Department reported that U.S. GDP in the first quarter was revised up to a 5.7% annualized decline from its initial estimate of a 6.1 The First-Quarter GDP Report

General Motors Declares Bankruptcy

June 1, 2009

It's official: General Motors filed for bankruptcy. GM (GM) and Citigroup (C) were booted from the Dow Jones Industrial Average today and replaced by Travelers (TRV) and Cisco (CSCO). I rate Travelers a Hold and Cisco a Sell. Then on Tuesday, Richard Fisher, who's the head of the Federal Reserve Bank of Dallas, will give a talk on the economy. Also, the National Association of Realtors will report on home sales for April. Hopefully, we'll see some signs of stability. General Motors Declares Bankruptcy

Preview for this Week on Wall Street

June 1, 2009

The first week of June is going to get off to an eventful start as General Motors (GM) will declare bankruptcy. Also on Monday, the Commerce Department will report on personal income and personal income. Economists on Wall Street are expecting a small drop for both. Then on Tuesday, Richard Fisher, who's the head of the Federal Reserve Bank of Dallas, will give a talk on the economy. Also, the National Association of Realtors will report on home sales for April. Hopefully, we'll see some signs of stability. Preview for this Week on Wall Street

May 2009

Nebraska Turns to Mini-Cows to Combat the Impending "Cow Tax"

May 26, 2009

Nebraska may be preparing for the impending "cow tax." In response, "mini-cows" have been spotted in the state, which are compact cattle with stocky bodies, smaller frames and relatively tiny appetites. Nebraska Turns to Mini-Cows to Combat the Impending

Bank United Fails

May 22, 2009

The banking sector isn't in the clear just yet. Bank United (BKUNA) just became the 34th bank failure of the year, but it's also the largest one yet. Bank United Fails

Buckle's Earnings Surge 44%

May 21, 2009

This has been a very tough environment for retailers, but my favorite teen retailer continues to do very well. Buckle (BKE) just reported outstanding first-quarter earnings of 58 cents a share. Buckle's Earnings Surge 44%

Stock Market Volatility Drops

May 21, 2009

The stock market is much less volatile right now. That bodes well for investors. Stock Market Volatility Drops

Uncle Sam May Lose AAA Rating

May 21, 2009

Those massive budget deficits are starting to cost us. Uncle Sam is on the verge of losing his AAA credit rating. Our budget deficit is now higher than Britain's in relation to our economies. A lower credit rating will mean higher borrowing costs and that will make the deficit even worse. Uncle Sam May Lose AAA Rating

Bank of America Is a Buy

May 20, 2009

The results of the recent stress test said that Bank of America (BAC) needs to raise $34 billion. The bank just completed a massive secondary offering. Bank of America issued 1.25 billion shares at an average price of $10.77. To raise even more money, the bank plans to sell off some divisions and subsidiaries. Bank of America Is a Buy

Dollar Plunges

May 20, 2009

Bloomberg reports:
The dollar declined to the lowest level versus the euro since January as falling currency and stock volatility spurred speculation investors will seek higher- yielding assets. Dollar Plunges

Recessions End with Powerful Bull Markets

May 19, 2009

As painful as the past 18 months have been, history shows us that painful bear markets often lead to big returns. USA Today recently noted some of our research. Recessions End with Powerful Bull Markets

Housing Starts Plunge

May 19, 2009

This morning's housing report showed that housing starts fell 13% to 458,000. That's a record low and it was well below the Street's forecast of 520,000. I have absolutely no idea why Wall Street was expecting such a high number. With six million unsold homes, until inventory tightens, housing starts will not improve. Another sign of more bad news to come is that building permits dropped by 3.3% to a record low. Housing Starts Plunge

Lowe's Knows Earnings Surprises

May 18, 2009

Lowe's (LOW), the home improvement store, just reported quarterly earnings of 32 cents a share. That's a good bit down from the 41 cents from a year ago. However, the expectations on Wall Street were for just 25 cents a share, so this was an encouraging report. Lowe's Knows Earnings Surprises

Preview of Week Ahead on Wall Street

May 18, 2009

On Monday, the major homebuilders will release their May housing index. It will be interesting to see if there's been more activity in this crucial sector. Then on Tuesday, Home Depot (HD), TJX (TJX), Medtronic (MDT) and Hewlett-Packard (HPQ) are due to report earnings. We'll also get a report on housing starts. Preview of Week Ahead on Wall Street

Here I Am on Bloomberg

May 15, 2009

Here I am on Bloomberg. Here I Am on Bloomberg

Inflation Unchanged for April

May 15, 2009

The government released the Consumer Price Index report for April today and it showed that there was no inflation last month. On a year-over-year basis, prices fell by 0.7% which is the biggest drop in over 50 years. Inflation Unchanged for April

Wal-Mart's Q1 Earnings

May 14, 2009

Wal-Mart (WMT) reported first-quarter earnings today. On surface, the results don't appear to be that strong, but when you look at the details, I think Wal-Mart is doing quite well. Wal-Mart's Q1 Earnings

Only 6% of Stimulus Has Been Spent

May 14, 2009

I know I must sound like a broken record when I talk about Uncle Sam's awful fiscal policies. Earlier I mentioned that we ran a deficit during April (tax month) for the first time in a quarter of a century. The deficit is projected to balloon by fourfold this year. Only 6% of Stimulus Has Been Spent

Boots and Coots and Knowing When to Sell

May 13, 2009

Knowing when to sell is a tricky part of investing. In our Navellier system, we key in on picking up a rise in a stock's daily volatility. When the daily fluctuations start to grow unusually high that often tells us that trouble is brewing. An excellent example is Boots & Coots International Well Control (WEL). Incidentally, it also has one of my favorite names of any stock. Boots and Coots and Knowing When to Sell

Fiscal 2009 Budget Deficit Balloons

May 13, 2009

I've been warning investors about the dire straits of the U.S. government's finances. The Treasury just reported that it ran a deficit during April, which is tax month, for the first time in 26 years. Fiscal 2009 Budget Deficit Balloons

Fluor Rallies on Q1 Profits

May 12, 2009

The stock market is soggy again today as traders are taking profits on the market's incredible run since early March. Fluor (FLR), one of my top Blue Chip Growth stocks, is having a good day after it posted healthy profits for the first quarter. Fluor Rallies on Q1 Profits

Why the Dollar is in Trouble

May 12, 2009

It's hard to explain to folks just how bad our government's finances are because the numbers are so staggering. This year, the federal government is spending nearly twice what it will bring in through taxes. It's so much money that to balance the budget every taxpayer over $75,000 would have to be taxed at 100%! Why the Dollar is in Trouble

Today's Trade Report

May 12, 2009

The government reported today that the trade deficit widened in March for the first time in eight month. Both imports and exports fell, but exports fell by slightly more, 2.4% to 1.0%. A weakening U.S. dollar is now driving crop prices higher and should eventually boost exports. Since 46 cents of every dollar that the federal government spends is borrowed, the dollar's demise is inevitable. Until exports perk up, the economy will continue to flounder. Today's Trade Report

This Is a Stock-Pickers' Market

May 11, 2009

Over the last two months, the stock market has put on an impressive rally. Shares of nearly every stock have soared. However, I want to caution investors that not all stocks will continue to enjoy the gains to come. This Is a Stock-Pickers' Market

Preview of This Week on Wall Street

May 11, 2009

This week will probably be quieter than the previous few weeks since earnings season is almost over. The big news this week will be the reports on wholesale and consumer inflation. If the news shows that inflation is creeping up, this could mean big trouble for the bond market. Preview of This Week on Wall Street

Unemployment Jumps to 8.9%

May 8, 2009

The Labor Department released the jobs report for April and as expected, the numbers are ugly. The economy lost 539,000 jobs last month, and the unemployment rate rose from 8.5% to 8.9%. If there is a silver lining it's that economists were expecting job losses of 610,000 so we did a little better than expectations. Unemployment Jumps to 8.9%

The Stress Test Results Are Out

May 7, 2009

The New York Times reports: "Federal regulators told the country's 19 largest banks that they must raise $75 billion in extra capital by November, a more upbeat verdict on the health of the financial system than the industry had feared just two months ago. "Ten of the 19 bank holding companies deemed "too big to fail" by the Obama administration will be required to raise additional capital, according to the results of the government's stress tests, released late Thursday afternoon. But the 10 banks will have to raise much less capital than some analysts had expected as recently as a few days ago. The Stress Test Results Are Out

Midday Market Update

May 7, 2009

The major indexes are down slightly so far today. There are a few positives economics items; productivity is up, jobless claims were less-than-expected and Wal-Mart's (WMT) sales report topped forecasts. Midday Market Update

Treasury Yields Soar

May 7, 2009

Earlier this week, I said that the big event coming up will be the Treasury auctions. Well, we haven't even had the 10-year T-bond action yet and yields are already soaring. Treasury Yields Soar

Morning Call

May 6, 2009

Here are some items of interest and note to investors today. Morning Call

ADP Report Shows Job Losses Less Than Forecast

May 6, 2009

We had some potentially good news today. The employment report from ADP, a private firm, showed the payrolls dropped by 491,000 last month. Wall Street is expecting a decline of 645,000. ADP Report Shows Job Losses Less Than Forecast

Almost Family Jumps 14%

May 6, 2009

Almost Family (AFAM) is a wonderful stock to own during tough economic times. The company provides home health nursing services. This morning, Almost Family post first-quarter earnings of 68 cents a share. That was eight cents more than Wall Street's consensus. The shares have been up by as much as 14% this morning. Almost Family Jumps 14%

Netease.com Hits Another All-Time High

May 6, 2009

Netease.com (NTES) had broken out to yet another all-time high. If you think you heard this from me before, you're right. The stock is like the Energizer Bunny. NTES got to as high as $32.62 today. My Quantum Growth subscribers are currently sitting on a 60% profit. That's not bad for two months! Netease.com Hits Another All-Time High

Bernanke Says Growth Will Resume Later This Year

May 5, 2009

Ben Bernanke shared some optimistic words, which should help the market. Bernanke Says Growth Will Resume Later This Year

Pantry Posts Huge Earnings Surprise, Nordic American Tanker Declares Dividend

May 5, 2009

Pantry (PTRY), one of my favorite Quantum Growth stocks, reported earnings of 10 cents a share this morning. That was 28 cents better than Wall Street's forecast. The company is the leading convenience store operator in the southeastern U.S. Since their March low, shares of Pantry are up more than 80%. Pantry Posts Huge Earnings Surprise, Nordic American Tanker Declares Dividend

Marvel Entertainment Beats Earnings and Raises Guidance

May 5, 2009

Marvel Entertainment (MVL) delivered an amazing earnings report this morning. The Super Hero company earned 57 cents a share last quarter which demolished Wall Street's forecast of 36 cents a share. That's a 58% earnings surprise! Marvel's stock has been up by as much as 8% this morning. Marvel Entertainment Beats Earnings and Raises Guidance

Healthy Banks Could Fail the Stress Test

May 5, 2009

Thanks to yesterday's rally, the stock market is up slightly for the year. That's a nice turnaround from where we were two months ago. This may soon be a tough week. First we have the biggest week ever for Treasury auctions. If they don't go well, then you can expect the dollar to fall and inflation to perk up. Healthy Banks Could Fail the Stress Test

Wolverine Brings in $87 Million In Opening Weekend

May 4, 2009

Marvel Entertainment's (MVL) new movie "X-Men Origins: Wolverine" had a huge opening weekend. The film, starring Hugh Jackman, brought in $87 million. There was an interesting quote I noticed in a recent Bloomberg article: Wolverine Brings in $87 Million In Opening Weekend

Preview for this Week on Wall Street

May 4, 2009

Earnings season is beginning to wind down. The two big news items this week will be the release of the bank stress test results on Thursday and the employment report on Friday. We may see the first signs that the economy is stabilizing. Preview for this Week on Wall Street

Cramer Gives Us Credit for Our Green Mountain Call

May 1, 2009

Cramer Gives Us Credit for Our Green Mountain Call

Midday Market Update

May 1, 2009

Today is May Day and many stock exchanges are closed around the world. It's been a fairly quite day on Wall Street. As of noon, the major indexes are holding on to small gains. One economic report showed that the April ISM rose to 40.1 from 36.3, a bit above the consensus 38.4 and the highest reading since September. This is good news, but the ISM will probably stumble in future months due to the plant shutdowns at GM and Chrysler. The Federal Reserve said today that it will reveal the results of its stress test on May 7. The idea of the stress test is to see how well the nation's largest banks will hold up if the recession worsens. Of course, I'm more worried about how the U.S. government will hold up if the economy worsens. Midday Market Update

More Great Earnings

May 1, 2009

The roll call of great earnings reports continues. After the bell yesterday, we got a great report from Dolby Labs (DLB) which has been one of our top-performing Quantum Growth stocks. Dolby beat Wall Street's consensus by a stunning 30%. More Great Earnings

April 2009

There's Nothing Neutral about Neutral Tandem

April 30, 2009

Apparently no one told Neutral Tandem (TNDM) that we're in a recession. The company just posted earnings of 27 cents a share, four cents more than estimates. Wall Street is very pleased and the stock has been up by as much as 14% in today's trading. I have to admit that I wasn't surprised by TNDM's results. In fact, I wrote on April 17: "The next earnings report will come out in two weeks and I'm expecting another big gain." There's Nothing Neutral about Neutral Tandem

First Solar Heats Up

April 30, 2009

At one point today, Green Mountain Coffee Roasters (GMCR) hit $79.13 making it a 50% gainer on the day. The shares have backed off slightly, but today is still an outstanding day for Green Mountain. But that isn't the only one of my favorite stocks soaring. Shares of First Solar (FSLR) have been up by as much as 25% in today's market. First Solar Heats Up

Chrysler Enters Chapter 11 Bankruptcy

April 30, 2009

The White House has said that Chrysler will enter Chapter 11 bankruptcy. Fortunately, the bankruptcy news isn't derailing the stock market today. Asia and Europe are up on the Fed's statement that things are getting better. Obama will have more to say about Chrysler at noon. The good news this morning is that initial jobless claims dropped by 13,000 to 631,000 which was 9,000 below forecast. Also, the April Chicago PMI, which is a key gauge of future economic growth, jumped to 40.1 from 31.4. This was well above the consensus 35.0 and the highest reading since September. This is very encouraging. Chrysler Enters Chapter 11 Bankruptcy

Green Mountain Coffee Roasters' Blow-Out Quarter

April 30, 2009

After yesterday's close, Green Mountain Coffee Roasters (GMCR) released a phenomenal earnings report. Profits more than doubled to 50 cents a share from 23 cents a share one year ago. Get ready for the shares to soar today. Two weeks ago, I highlighted the stock as a great rising company. I said that it's similar to the kind of young company that Starbucks (SBUX) used to be. Green Mountain Coffee Roasters' Blow-Out Quarter

Ken Lewis Out as BAC Chairman

April 29, 2009

The Dow rose 168.78 points today to close at 8185.73. That's the highest close since February 9. There were solid gains across many sectors. Pantry Inc. (PTRY), a favorite in my Quantum Growth service, soared over 15%. Smith & Wesson (SWHC), which is in my Emerging Growth service, jumped nearly 10%. One of the big news items today was that Ken Lewis lost his job as chairman of Bank of America (BAC). It's about time, I've never trusted him. Ken Lewis Out as BAC Chairman

Fed Makes Policy Statement

April 29, 2009

The Fed made a policy statement today. The Fed apparently wants to expand the quantitative easing. This will certainly help weaken the U.S. dollar. Fed Makes Policy Statement

Dow 8200

April 29, 2009

The Dow is on track to close above 8200 for the first time in over two months. The S&P 500 also broke out above 875. Dow 8200

First-Quarter GDP Dropped By 6.1%

April 29, 2009

The government reported today that the economy fell by 6.1% during the first three months of the year which is more than the 4.7% drop expected by economists. The bright spot is that consumer spending increased by 2.2%. During the fourth quarter of 2008, the economy contracted by 6.3%. This is the first estimate of first-quarter GDP growth. This number will be revised at the end of May and again at the end of June. First-Quarter GDP Dropped By 6.1%

Morning Headlines

April 28, 2009

The market is holding on to some gains this morning. Here are some top headlines... Morning Headlines

Southwestern Energy Rallies

April 28, 2009

Shares of Southwestern Energy (SWN) are doing well this morning. The company reported a first-quarter loss of $1.26 a share compared with a 31-cent gain last year. However, Southwestern took a $907 million charge, so excluding that the company earned 31 cents a share which was in line with Wall Street's consensus. The stock continues to be an excellent buy. Southwestern Energy Rallies

Navellier Seminars

April 27, 2009

I'll be speaking tomorrow at the Cincinnati Airport Marriott in Hebron, Kentucky. Then on Wednesday, I'll be at the Cleveland Marriott East in Warrensville Heights, Ohio. The seminars are free to attend but call 800-454-1395 to register. I'll review the current market outlook and how to use Portfolio Grader. Navellier Seminars

Swine Flu Stocks

April 27, 2009

Over the weekend, the world has been engulfed in fear of the Swine Flu outbreak. It's hard to say what the impact will be. After Hong Kong experienced the SARS outbreak, their stock market dropped 17%. Smithfield Foods (SFD), the world's largest pork producer, is down sharply. Many airline and cruise line stocks are also down. Swine Flu Stocks

Preview for this Week on Wall Street

April 27, 2009

This is the final week of April. We're going to more earnings reports plus we're going to get our first peak at how well the economy did in the first quarter. On Monday, Baidu (BIDU), Southwestern Energy (SWN) and Verizon (VZ) report earnings. On Tuesday, the report for consumer confidence is released. Preview for this Week on Wall Street

Fed Releases Stress Test Details

April 24, 2009

The Federal Reserve has released the details of the government's stress test (here's the Fed's statement). These tests were designed by the Fed to see how much of a downturn the 19 largest banks can take. The idea is that a stress test would calm investors' fears. Basically, I think the tests are designed so everyone can pass. There will be a lot of testing, but not much stress. Fed Releases Stress Test Details

The Opening Bell

April 24, 2009

The big news today will come from the Federal Reserve. Later today, the Fed will disclose how it conducted its infamous "stress test" for 19 leading banks. Since this is the Fed we're talking about, the disclosure will only be in general terms and it will lack specifics. The government won't publicly reveal how the tests went until May 4. Even if the banks pass, many are still far from healthy and I'm sure a few will be back asking for more taxpayer money. The Opening Bell

The Earnings Parade Continues

April 23, 2009

The market was weak during much of the day, but showed some strength in the final half hour. The Dow closed 70 points higher. There were still more earnings after the bell. The Earnings Parade Continues

Hershey's Sweet Quarter

April 23, 2009

Hershey's Sweet Quarter

Noon Business News Summary

April 23, 2009

Noon Business News Summary

ITT Educational Services Beats the Street and Guides Higher

April 23, 2009

ITT Educational Services (ESI) is having a very good decade. The stock finished 1999 at $7.72 (adjusted for a split). Today it's at $105 which translates to a 1,200% gain while the rest of the stock market is down. ITT Educational Services Beats the Street and Guides Higher

More Strong Earnings from Apple

April 23, 2009

Apple (AAPL) reported good earnings yesterday. The company sold 11 million iPods last quarter while analysts were expecting 10 million. The company earned $1.33 a share, 24 cents more than consensus. For this quarter, Apple sees EPS coming in between 95 cents and $1, though Apple is notorious for setting very low guidance. More Strong Earnings from Apple

General Motors Won't Meet Debt Payment

April 22, 2009

General Motors (GM) said today that it will fail to meet its $1 billion debt payment due on June 1. General Motors Won't Meet Debt Payment

Still More Earnings

April 22, 2009

The earnings are coming fast and furious now! One of my top Emerging Growth stocks, Conceptus (CPTS) is up strongly this morning. The health company reported a loss of 14 cents a share which was better than expectations. The stock is up about 14% today. Conceptus is an outstanding buy. Still More Earnings

Biotech Earnings Shine

April 22, 2009

After yesterday's closing bell, Gilead Sciences (GILD) reported first-quarter earnings of 66 cents a share, seven cents more than Wall Street was expecting. Sales rose 21% to just over $1.5 billion. Biotech Earnings Shine

Nice Reversal

April 22, 2009

After a slow start this morning, starts have started to wake up. There are going to be some important earnings reports coming after today's closing bell like Conceptus (CPTS), Illumina (ILMN) and Gilead Sciences (GILD). Nice Reversal

Morning News Headlines

April 21, 2009

There's a lot going on this morning. Here are several business news items of note: Geithner says the Treasury doesn't need more bailout money IMF Says Global Losses From Credit Crisis May Hit $4.1 Trillion Canada Cuts Rate to 0.25% The New York Times Posts Loss Morning News Headlines

Caterpillar Posts First Loss in 16 Years

April 21, 2009

Lately, I've been talking about how investors can no longer trust the stock stalwarts of old. Starbucks (SBUX) used to be a stock that investors could trust without question. Not anymore. Caterpillar (CAT) is a similar story. I have the stock rated "Strong Sell," and said I wouldn't be surprised to see a quarterly loss. That's exactly what happened. The company posted a loss of 19 cents a share which is down from a profit of $1.45 one year ago. Caterpillar also slashed its full-year earnings and sales forecast. Avoid this stock! Caterpillar Posts First Loss in 16 Years

Leading Economic Indicators

April 20, 2009

The index of leading economic indicators dropped by 0.3% last month which was 0.1% more than expected. The weak spots were the falling workweek, rising jobless claims, faster delivery times, lower building permits and a drop in stock prices. Leading Economic Indicators

Bank of America Shows Improvement

April 20, 2009

The stock market is down this morning but that's not a big surprise since Wall Street has rallied for six straight weeks. In addition to the Oracle-Sun Micro news, Bank of America (BAC) posted good Q1 earnings. The bank earned $2.8 billion or 44 cents a share. Wall Street was expecting just four cents a share. Bank of America Shows Improvement

Oracle to Buy Sun Microsystems

April 20, 2009

Last month, IBM (IBM) said it wanted to buy Sun Microsystems (JAVA). At the time, I said it wasn't a smart move for them. Two weeks ago, the deal came apart. The big news this morning is that Oracle (ORCL) is going to buy Sun for $9.50 a share, or $5.6 billion. In my opinion, this is a much better deal for everyone. Oracle to Buy Sun Microsystems

Preview for this Week on Wall Street

April 20, 2009

Get ready for another big week for earnings. On Monday, Bank of America (BAC), Eli Lilly (LLY) and IBM (IBM) all report earnings. Also on Monday, leading economic indicators are released and Ben Bernanke will address a conference and economic literacy. Tuesday will be a big day for central bank meetings. We'll hear results of interest rate decisions in Sweden, Canada and India. More than one of those countries will probably cut rates... Preview for this Week on Wall Street

The Spanish Fed Says No

April 20, 2009

I've been fascinated by some of the economic news coming out of Spain lately (my family is Basque). The reason is that it seems to be foreshadowing what could happen in the U.S. The Spanish central bank basically told the government to stop spending so much money. Ten years ago, Spain joined the euro so the Spanish central bank really doesn't have that much power. Still, this was interesting to see. The Spanish Fed Says No

Consumer Prices Fell 0.1% Last Month

April 20, 2009

The Labor Department reported that consumer prices slid 0.1% last month. The CPI posted its first annual drop since 1955. Consumer Prices Fell 0.1% Last Month

Neutral Tandem Hits New High

April 17, 2009

Shares of Neutral Tandem (TNDM) broke out to a new 52-week high this morning. Readers of my Emerging Growth services are up over 40% in the stock in less than two months. The company provides third-party interconnection services to competitive telecommunications carriers. In a nutshell, TNDM helps wire-line, wireless and broadband customers talk to each other-even if they all pay their bills to different companies. Neutral Tandem offers services in more than 60 U.S. metropolitan markets and is a critical part of our nation's communications network. Neutral Tandem Hits New High

Finally Some Good News from Citigroup

April 17, 2009

For the first time in 18 months, Citigroup (C) earned a profit. The bank made $1.59 billion in the first quarter. For last year's first quarter, they lost $5.11 billion. The bank had a private stock offering so the money that actually went to shareholders was a loss of $966 million or 18 cents a share. Wall Street was expecting a loss of 34 cents a share. I still have Citigroup rated as "C - Hold." Finally Some Good News from Citigroup

Time to Buy Banks?

April 16, 2009

For the first time in 18 months, Citigroup (C) earned a profit. The bank made $1.59 billion in the first quarter. For last year's first quarter, they lost $5.11 billion. The bank had a private stock offering so the money that actually went to shareholders was a loss of $966 million or 18 cents a share. Wall Street was expecting a loss of 34 cents a share. I still have Citigroup rated as "C - Hold." Time to Buy Banks?

JPMorgan Chase Tops the Street

April 16, 2009

The stock market was helped this morning by good news from JPMorgan Chase (JPM). The bank earned 40 cents a share for the first quarter which was eight cents more than Wall Street was expecting. Like other banks, JPM said it wants to pay back its TARP money as soon as it can. Interestingly, CEO Jamie Dimon said they won't participate in Secretary Geithner's private/public investment plan to buy toxic assets, as a buyer or a seller. JPMorgan Chase Tops the Street

Tax Day Deals

April 15, 2009

If you're feeling the pain of Tax Day, Smart Money has listed 18 great Tax Day deals (i.e., one free scoop of ice cream from Maggie Moo's). Tax Day Deals

American Airlines Takes Flight

April 15, 2009

AMR Corp. (AMR), the parent of American Airlines is having a great day in today's session. The shares have been up by as much as 22%. The rally is being fueled by the news that the company reported a loss today but it was much less-than-expected. For the first quarter, AMR lost $375 million or $1.35 a share compared with a loss last year of $341 million or $1.37 a share. The Street was looking for a loss of $1.62 a share. American Airlines Takes Flight

Intel Earnings Plunge But Still Beat Expectations

April 14, 2009

Our two-day streak of staying above 8,000 came to an end today. The Dow pulled back 137.63 points to close at 7,920.18. The market was clearly hurt by the weak retail sales report that came out this morning. The big news after the close came from Intel (INTC). The chip company reported that its first-quarter earnings plunged 55% but that was well above Wall Street's forecast. The Street had obviously set the bar very low. Intel Earnings Plunge But Still Beat Expectations

Economic News This Morning

April 14, 2009

There were a few important economic news items this morning. Here's a brief summary: Retail sales dropped 1.1% last month. This was a surprise since economists expected an increase of 0.3%. This is a bit disappointing after last week's same-store sales. The fact that Easter was in March a year ago might have been a factor. Economic News This Morning

Goldman Reports Stronger-Than-Expected Earnings

April 14, 2009

After yesterday's closing bell, Goldman Sachs (GS) surprised Wall Street by announcing its earnings report one day ahead of schedule--and those earnings were very good. Goldman said it made $1.81 billion last quarter or $3.39 a share which is up from the $1.51 billion, or $3.23 a share it made in the same quarter one year ago. Wall Street was expecting earnings of just $1.59 a share. Goldman Reports Stronger-Than-Expected Earnings

CChina Is Cutting Back On Its Treasuries

April 13, 2009

The New York Times has a fascinating article on how China is cutting back on its purchases of U.S. Treasuries. In the first two months of this year, the Chinese government was a net seller of Treasuries. China is a gigantic player in the market for our Treasury debt. Two-thirds of the Chinese central bank's $1.95 trillion in foreign currency reserves are held in dollars. But that number may fall in the years ahead. CChina Is Cutting Back On Its Treasuries

The Week Ahead on Wall Street

April 13, 2009

This week is going to be all about earnings. Today, we're going to get earnings reports from Charles Schwab (SCHW) and St. Jude Medical (STJ). Tomorrow we'll get reports from Johnson & Johnson (JNJ), Goldman Sachs (GS) and Intel (INTC). There will also be important reports on retail sales and wholesale inflation. There have been a few bright spots in the economy so it will be interesting to see if there's more evidence to confirm a trend. The Week Ahead on Wall Street

Express Scripts Bold Deal

April 13, 2009

I've recently discussed the growing merger wave in healthcare. This is a trend that every investor ought to be a part of. This morning, one of my favorite healthcare picks, Express Scripts (ESRX), announced plans to buy WellPoint's (WLP) in-house pharmacy-benefit management business for $4.68 billion. I like this deal and it will give ESRX a huge lift against its rivals. When you have lots of cash, low stock prices and a crowded industry, you're going to see consolidation. I was also glad to see that Express Scripts is funding the deal with cash and stock. Expect to see more big deals in the near-future. Express Scripts Bold Deal

Britain Hold Rates But Continues to Print Money

April 13, 2009

At the end of the G20 meeting, the countries pledged to not weaken their currencies. Today, the Bank of England said it would hold rates steady at 0.5% but it would continue its policy of "quantitative easing." Quantitative easing is simply a codeword for printing more money so this will definitely hurt the British pound. Despite the G20 pledge, it's obvious that Britain doesn't want to stop lowering their currency. Britain Hold Rates But Continues to Print Money

Wells Fargo Guides Higher

April 9, 2009

For several months I've been telling investors to avoid financial stocks. One of the few that I've liked has been Wells Fargo (WFC). Today, the bank said it expects to reports earnings of $3 billion or 55 cents a share. The Street was only expecting 23 cents a share. That's a big surprise. As a result, the shares are up strongly this morning. Wells Fargo Guides Higher

Mergers in the Homebuilding Sector

April 8, 2009

The stock market is up slightly this morning as the market looks to end its tow-day losing streak. The big news came from the homebuilding sector when Pulte Homes (PHM) and Centex (CTX) announced that they'll merger together. The combined company would have a market value of $4.1 billion, which will make them the largest player on the field. Mergers in the Homebuilding Sector

Netease.com Hits All-Time High

April 7, 2009

Although the stock market is down again today, one of my favorite China stocks, Netease.com (NTES), reached another new all-time high yesterday. Seven years ago, the stock was going for about 20 cents a share (adjust for splits). Today Netease.com is over $28 a share so that's a gain of 140-fold in seven years. The stock is up 37% since the market turned on March 9. Netease.com Hits All-Time High

HHGregg Guides Higher

April 7, 2009

Today marks the unofficial beginning of first-quarter earnings season. After the closing bell, Alcoa (AA) will report its earnings for the first three months of 2009. It probably won't be a good report. Wall Street expects Alcoa to post a loss of 52 cents a share compared with a profit of 44 cents for the same period last year. The stock gets an "F - Strong Sell" in my Portfolio Grader stock-rating system. HHGregg Guides Higher

Bristol-Myers Reaches Deal to Continue Selling Abilify

April 6, 2009

Today is a good day for Bristol-Myers Squibb (BMY) which is one of my top Blue Chip Growth stocks. The healthcare company reached a deal with Japan's Otsuka Pharmaceutical to continue selling the antidepressant Abilify in the U.S. until 2015. Bristol-Myers Reaches Deal to Continue Selling Abilify

10 Stocks with Awful Fundamentals

April 6, 2009

The key to my investing philosophy is to focus on stocks with outstanding fundamentals. This means key variables like strong sales and earnings growth and a high return-on-equity. With earnings season fast approaching, you want to make sure that you don't own any stocks with lousy fundamentals. 10 Stocks with Awful Fundamentals

The Sun Micro/IBM Deal Falls Apart

April 6, 2009

Three weeks ago, shares of Sun Microsystems (JAVA) soared on the news that it was being bought by IBM (IBM). At the time, I wrote: "I rate IBM a buy, but I don't think this is a smart move on their part. Sun will most likely be an underperforming asset probably for the next several quarters." The Sun Micro/IBM Deal Falls Apart

AZZ Earns 81 Cents a Share

April 3, 2009

AZZ Inc. (AZZ) which is my longest-held stock in Emerging Growth, reported earnings this morning of 81 cents a share. That's a pretty strong number and it was two cents higher than Wall Street's estimate. Revenues rose 31% but despite that impressive growth, the revenue number was slightly below the Street's consensus. As a result, the stock is lower today, but I still rate the stocks a solid buy. AZZ Earns 81 Cents a Share

Unemployment Hits 8.5%

April 3, 2009

One of the reasons why the stock market rallied yesterday was that the Financial Accounting Standards Board relaxed some of its accounting rules. I'm certainly glad for yesterday's rally, but let's be frank: If a company wants to fudge a bit on their numbers, they now have a chance. Unemployment Hits 8.5%

Dow Breaks 8,000

April 3, 2009

For the first time in two months, the Dow crossed over 8,000. The index got to as high as 8,075. Dow Breaks 8,000

The ECB Cuts Rates

April 2, 2009

Today looks to be another good day for stocks. The market has almost made back everything it lost during the nasty two-day downturn of last Friday and Monday. The bad economic news this morning was the jobless claims report. Jobless claims rose 12,000 last week to 669,000. This is bad but we knew it was coming. The major report will be tomorrow's employment report for March, and I'm expecting more bad news. The ECB Cuts Rates

Celgene Shocks the Street

April 1, 2009

Shares of Celgene (CEL) are getting pummeled in today's trading. The drug maker warned about its first-quarter earnings and that has sparked the heavy selling today. This is interesting for two reasons. First, we can see that the economy is impacting healthcare stocks which are often immune for economic downturns. The other reason is that Celgene had been a very strong stock for a long time. Wall Street was expecting sales for Q1 of $647 million. Today, Celgene said its sales will come in around $600 million. Celgene Shocks the Street

Fidelity National to Buy Metavante for $2.94 Billion

April 1, 2009

Great news this morning. Fidelity National Information Services said that it will buy Metavante Technologies (MV) for $2.94 billion. Metavante shareholders will receive 1.35 shares of Fidelity National stock for each share they own of Metavante. That works out to a 23% premium over yesterday's close. Fidelity National to Buy Metavante for $2.94 Billion

March 2009

Market Closes Out Best Month Since 2002

March 31, 2009

The market finished March on a strong note. The Dow added 86.90 points today to close at 7,609.92 while the S&P 500 climbed 10.34 points to finish at 797.87. The bad news is that this was the sixth straight down quarter for stocks. The good news is that things have changed dramatically over the last few weeks. Since March 9, the S&P 500 has added 18% which is the best 16-day run in over 25 years. The index just wrapped up its best month since October 2002. Market Closes Out Best Month Since 2002

Consumer Confidence Is Still Low and Housing Prices Are Down

March 31, 2009

There were two important economic news items today. Consumer confidence improved slightly in March, but February was still the lowest reading since records began in 1967. Confidence and the economy tend to feed off each other. When consumers feel more optimistic, the economy improves and in turn, lifts consumers' sentiments. We're currently watching the reverse. Consumer Confidence Is Still Low and Housing Prices Are Down

Newspaper Meltdown

March 31, 2009

The Chicago Sun-Times Media Group (SUTM) has become the latest newspaper to file for bankruptcy. It's looking pretty grim for the newspaper industry. Just recently, we've seen the Chicago Tribune, the Los Angeles Times and the Baltimore Sun all file for bankruptcy protection. The Rocky Mountain News was also recently shut down. The Seattle Post-Intelligencer is now web only. There have also been major job cuts at the Houston Chronicle and the Atlanta Journal-Constitution. Newspaper Meltdown

Wagoner Out at GM

March 30, 2009

Rick Wagoner has resigned as chairman and CEO of General Motors (GM). The move was part of a deal with the Obama administration for the car company to get more bailout money. Unfortunately, GM faces many more hurdles in the weeks and months ahead. Rather than helping GM, the Obama administration's agenda will probably hurt the company, specifically their "cap and trade" plans. Wagoner Out at GM

Was March 9th the Bottom?

March 30, 2009

The market has opened lower this morning on news that the White House has rejected the turnaround plans submitted by GM and Chrysler. This is a big mess and it creates a lot of uncertainty. There's no way the White House can stop the car companies from making big vehicles since that's where the profits are. Was March 9th the Bottom?

"You Have Run Out of Our Money"

March 30, 2009

I've been saying that the U.S. dollar is on course to follow the British pound into the abyss. Here's an amusing video from last week of Daniel Hannan scolding British Prime Minister Gordon Brown in front of the eyes of the world.

The Market Makes a Three-Point Landing

March 27, 2009

Historically, the best time to buy stocks is about four to five months before a recession ends. Assuming that the economy perks up in the third quarter, then March 9 will likely be the ultimate low for the S&P 500. The S&P 500 has now made three significant lows, followed by three impressive reversals; on October 10, November 20 and most recently on March 9. The Market Makes a Three-Point Landing

"The Gentlemen's Club"

March 27, 2009

MarketWatch has a great article which quotes a statement from the People's Bank of China's website saying that the U.S. financial system is a "gentleman's club." Clearly, the U.S. is going to be made the scapegoat at next week's G20 meeting in London.

The Agrium/CF Industries/Terra Industries Saga Continues

March 27, 2009

The "urge to merge" is making for some rather bizarre stories in the otherwise boring field of agricultural chemical stocks. In January, CF Industries (CF) announced a hostile takeover of Terra Industries (TRA) for $2.1 billion. Terra was against the deal because they thought the price was way too low. The Agrium/CF Industries/Terra Industries Saga Continues

First Solar Rallies on News of China's Subsidy

March 27, 2009

Shares of First Solar (FSLR) soared 12% yesterday to close over $150 per share. The stock has been on an extreme roller-coaster ride over the past few months. In June, it was over $300 a share and by November it got down to just $87. Despite the high volatility, I think First Solar is a strong buy. First Solar Rallies on News of China's Subsidy

Myriad Genetics Splits 2-for-1

March 26, 2009

Myriad Genetics (MYGN), one of my favorite mid-cap biotech stocks split 2-for-1 today. Shareholders now have twice as many shares and the stock price dropped in half, although the stock is up nicely today. Myriad Genetics Splits 2-for-1

GDP Revised Downward

March 26, 2009

The government reported today that the economy shrank by 6.3% in the fourth quarter which was slightly below the earlier forecast of a decline of 6.2%. The major factor for the revision is that businesses had cut their inventories faster than originally believed. GDP Revised Downward

The Morning Rally Fades

March 25, 2009

Historically, the best time to buy stocks is about four to five months before a recession ends. Assuming that the economy perks up in the third quarter, then March 9 will likely be the ultimate low for the S&P 500. The S&P 500 has now made three significant lows, followed by three impressive reversals; on October 10, November 20 and most recently on March 9. The Morning Rally Fades

American Italian Pasta Hits New High

March 25, 2009

The stock market is having another good day. The Dow got as high as 7,862. It's hard to believe that just two weeks ago, we were treading water around 6,500. One of my favorite Emerging Growth stocks, American Italian Pasta (AIPC), just hit another new high. The company is the largest maker of dry pasta in North America. American Italian Pasta is also a commodity play since it benefits from higher wheat prices. AIPC's consumer brands, such as Mueller's, Golden Grain, Heartland, R&R and Mrs. Grass, are staples on supermarket shelves throughout the U.S. and overseas. American Italian Pasta Hits New High

A Preview of First-Quarter Earnings

March 25, 2009

The upcoming first-quarter earnings season will be the seventh straight quarter of falling earnings for the S&P 500. The earnings outlook has deteriorated rapidly. On October 1, Wall Street expected the S&P 500's first-quarter earnings would rise by 25.7%. By January 1, Wall Street was looking for a decline of 12.5%. Now analysts expect a decline of 34.1%. A Preview of First-Quarter Earnings

Ditch the Dollar?

March 24, 2009

Next week, the G20 will be meeting in London to discuss reforming the world's financial system. One idea that's been floated is to ditch the dollar as the world's reserve currency. Any move like that won't happen at a meeting by a lot of men and in women in nice suits. Instead, it will be a judgment of the world's investors. The latest person to call for replacing the dollar as the world's reserve currency is Zhou Xiaochuan, who's a governor at People's Bank of China (aka the Chinese Fed). Ditch the Dollar?

Navellier Seminars

March 24, 2009

I'll be speaking in Newton, Massachusetts tonight at the Boston Marriott Newton and tomorrow I'll be Greenwich, Connecticut, at the Hyatt Greenwich. You're welcome to attend at no cost, but please call 800-454-1395 to register. Navellier Seminars

Time to Sell Sohu.com

March 24, 2009

I've been a big fan of Sohu.com (SOHU), but the time has come to sell this stock into strength. The shares have been trending downward ever since the company announced that it's spinning off ChangYou.com, its gaming division. This is infuriating to me because the gaming segment of Sohu is why I liked this stock in the first place. I really wonder what company executives are thinking. Time to Sell Sohu.com

Stocks Rise Close to 500 Points

March 23, 2009

Today was an excellent day for stocks. The Dow soared 497.48 points to close at 7775.86. Over the last 10 sessions, the Dow has added 1228 points. Obviously Wall Street is pleased with tim Geithner's Bank Plan. I think a lot of investors were just looking for an excuse to buy. The market was strong pretty much across the board. I was happy to see that the market rallied into the close. Stocks Rise Close to 500 Points

Tiffany's Earnings Plunge 76%

March 23, 2009

The market continues to look strong today. At noon, we're up 319 points. Lately, I've been discussing how some high-end retailers are doing poorly while some at the low-end are thriving. Today Tiffany (TIF) reported that its quarterly profits fell 76%. Clearly, dismal holiday sales hurt their bottom line. As bad as their earnings were, they actually beat expectations so the stock is doing well today. For now, I rate Tiffany a hold. I rate Wal-Mart (WMT), which caters to more budget-minded shoppers, a strong buy. Tiffany's Earnings Plunge 76%

The Market Rallies on the Bank Plan

March 23, 2009

The market seems to be initially pleased with the government's bank plan. The Dow is currently up 160 points. The Market Rallies on the Bank Plan

Bank Plan to Be Announced Today

March 23, 2009

This is going to be an important week for the stock market. The biggest news will be the unveiling of the Obama administration's bank rescue plan later today. In fact, Asian markets have already rallied strongly in anticipation. Clearly, the markets prefer certainty over uncertainty. Bank Plan to Be Announced Today

Xerox Issues Profit Warning

March 20, 2009

Xerox (XRX) became the latest big-name company to warn of an earnings shortfall. The company said that its sales for January and February were 18% below last year's level. Earlier, Xerox had said to expect first-quarter earning between 16 and 20 cents per share. Now the company said that earnings will range between three and five cents per share. That's a major revision. Xerox Issues Profit Warning

Sector Performance During Quantitative Easing

March 20, 2009

Here's a look at how different Japanese stock sectors performed when they used quantitative easing (3/19/2001 ‐ 3/9/2006): Basic Resources.....................................130.0% Insurance...............................................129.2% Oil & Gas................................................120.5% Chemicals................................................90.4% Autos & Parts...........................................72.6% Utilities.....................................................62.0% Financial Services.....................................59.2% Retail........................................................48.2% Industrial Goods & Services......................48.2% Construction Materials..............................41.6% Personal & Household Goods....................38.5% Banks........................................................36.7% Food & Beverage.......................................24.4% Travel & Leisure.........................................19.4% Health Care................................................-8.7% Media........................................................-10.0% Telecom....................................................-10.6% Technology...............................................-26.2% (Source: Ned Davis Research) Sector Performance During Quantitative Easing

FedEx and Oracle

March 19, 2009

There were two recent earnings reports that I want to highlight. The reason is that one was very good while the other wasn't so good, and that underscores the nature of today's market. Some companies and sectors will be big winners while others will be left behind. The first was from FedEx (FDX) which had an awful fiscal third quarter. Sales dropped by 14% and earnings plunged by 75%. The company also announced job cuts but it didn't specify how many. FedEx and Oracle

Thanks Ben!

March 19, 2009

One day after Fed said it was entering the T-bond business, the effects of our investment strategy are playing out well. Oil has broken out to reach its highest level of the year. Shares of energy stocks like Occidental Petroleum (OXY) and Southwestern Energy (SWN) are up nicely today. Gold is up around $70 today and the dollar is continuing to slide. Thanks Ben!

Microsoft Still Interested in Yahoo

March 19, 2009

Microsoft's (MSFT) CEO Steve Ballmer said that they're still interested in a merger deal with Yahoo (YHOO). Last year, Microsoft offered Yahoo $31 a share, but Yahoo rejected it. That was not a smart move. Yahoo is currently around $14 a share. Although Microsoft has a large cash horde, I don't think buying Yahoo would be a wise move for them. Yahoo's fundamentals are simply too weak. At Portfolio Grader, I give Yahoo failing grades for both Earnings Growth and Earnings Momentum. Microsoft Still Interested in Yahoo

Congress Passes 90% Tax on AIG Bonuses

March 19, 2009

Congress just passed a 90% tax on AIG's bonuses. What a joke! They didn't write the bill correctly the first time, so they just wrote a new bill to get the money back. I think Milton Friedman said that he was glad for government incompetence because it at least made the government less efficient. Congress Passes 90% Tax on AIG Bonuses

Today's Fed Statement

March 18, 2009

The fact that the Fed is now buying Treasuries brings some clarity, and right now, any certainty is welcome. The question now is, will China sell all of its Treasury holdings? A lot of traders have been shorting Treasuries, so today was a rough day for them. Today's Fed Statement

General Mills Post Profit Decline

March 18, 2009

One of my favorite consumer stocks, General Mills (GIS), posted a decline for its fiscal third-quarter earnings. The stock is currently down in today's trading, but as I look over the earnings report, I think it's really good news. Getting to the numbers, General Mills earned 79 cents a share which was eight cents less than the Street's consensus. But here's the key--the company raised its full-year earnings forecast to a range of $3.87 to $3.89 a share. General Mills Post Profit Decline

IBM to Buy Sun

March 18, 2009

The markets are buzzing this morning with the news that IBM (IBM) is about to buy Sun Microsystems (JAVA) for $7 billion. Shares of JAVA are up about 60% in this morning's trading. IBM to Buy Sun

Today's CPI Report

March 18, 2009

The Consumer Price Index (CPI) rose by 0.4% last month which was 0.1% more than Wall Street expetected. The core rate, which excludes volatile food and energy prices, rose by 0.2% and was also 0.1% higher than expectations. Today's CPI Report

What the Fed May Do

March 17, 2009

The Federal Reserve is meeting today in Washington. These policy meetings used to be big events but since the Fed has basically done away with interest rates, the meeting outcomes aren't such a big deal anymore. What the Fed May Do

The Geography of a Recession

March 16, 2009

The New York Times has a fascinating graphic showing the unemployment rate by county across the country. Notice how the job losses have hurt the West Coast hard as well as some spots in Michigan and the Deep South, while the Great Plains have hardly been touched. The Geography of a Recession

Saudis Say Oil Needs to Rise

March 16, 2009

Stocks are up in early trading today, which means this could be the fifth straight daily gain for Wall Street. There are a few important news items today. One is that the Saudi Oil Minister said that oil needs to be between $60 and $75 a barrel in order to bring new oil resources to the market. I think he's right. As long as oil is cheap, few people are going to bother with more expensive alternatives. I continue to believe that oil along with many other commodities is poised to climb a lot higher. That's why our strategy is to focus on commodity stocks. Saudis Say Oil Needs to Rise

The Best Stock Wall Street Doesn't Know About

March 13, 2009

Ebix (EBIX), one of my new Emerging Growth stocks this month, just reported solid earnings for the fourth quarter. Revenue rose 65% to $20.14 million, and earnings-per-share came in at 66 cents compared with 40 cents for the fourth quarter of 2007. That's very impressive growth. The Best Stock Wall Street Doesn't Know About

U.S. Trade Deficit Reaches Six-Year Low

March 13, 2009

This is the final trading day of what's turned out to be a very good week for stocks. Frankly, it's about time. I want to caution investors not to get too excited about the turnaround. Investors should continue to focus on fundamentally superior stocks. This is not a market that will not lift all boats. U.S. Trade Deficit Reaches Six-Year Low

The Bernie Madoff Rally

March 12, 2009

I said that Tuesday was the "Ben and Barney and Rally." So I guess today is the "Bernie Rally." As CNBC spent much of the day focused on Bernie Madoff's guilty plea, the Dow added 239.66 points to close at 7,170.06. This is the first time this year that the Dow has rallied for three straight days. This is also the first time this month that the Dow has closed above 7,000. Perhaps the catalyst was Mr. Madoff who pleaded guilty on every count against him. Guess what they were doing right around the corner from the courthouse? Filming the latest episode of "Law and Order." How's that for irony? Sentencing will happen on June 16, and Bernie faces a maximum of 150 years in prison. The Bernie Madoff Rally

See You in 2159; Bernie Madoff Goes to Jail

March 12, 2009

Bernie Madoff pled guilty this morning to all charges against him. Bail was revoked and he now faces a maximum 150-year sentence. Fortunately, the market seems to be enjoying the news and we're holding on to a nice gain. The Dow is back over 7000 and this could be our first three-day rally for the Dow since the final three days of the year. See You in 2159; Bernie Madoff Goes to Jail

Flat Opening Today But There's Positive News

March 12, 2009

Today is shaping up to be another flat day on Wall Street. I think that's a good sign because after previous big rallies like we had on Tuesday, the market tended to give those gains back quickly. At least, a lot of folks are still holding on. There are a few pieces of good economic news. For example, retail sales for January were revised up to 1.8% from the original number of 1.0%. For February, retail sales fell by 0.1% but that was ahead of forecasts. Also, if you exclude auto sales, retail sales were up 0.7% last month. Flat Opening Today But There's Positive News

Axsys Technologies Soars

March 11, 2009

One of my favorite defense stocks, Axsys Technologies (AXYS), is putting itself on the auction block . The company is asking for "roughly" $60 a share which is a huge premium over yesterday's close of $27.37. The market is taking the news very seriously. At one point today, AXYS reached $39.25--that's a one-day gain of 44%! Axsys Technologies Soars

More Mega-Mergers in Big Pharma

March 11, 2009

On Monday, Merck (MRK) announced that it's buying Schering-Plough (SGP) for $41 billion. This was only the latest big buyout in the world of major pharmaceutical companies, and I expect more to come. Once Pfizer (PFE) made its move for Wyeth (WYE), Merck simply had to respond. In fact, I nearly added Schering-Plough this month's Blue Chip Growth Buy List (the issue will be live next Monday). More Mega-Mergers in Big Pharma

Buckle (BKE) Is the Strongest Retail Stock

March 11, 2009

Apparently, no one told teenagers we're in a recession. Consider Buckle (BKE), the teen retailer, which continues to be one of my favorite retail stocks. This morning, the company reported fourth-quarter earnings of 74 cents a share which is an impressive increase over the 63 cents it earned during the fourth quarter of 2007. This comes at a time when many retail stocks are reporting big earnings drops and announcing layoffs. Buckle (BKE) Is the Strongest Retail Stock

Boots and Coots Delivers a Good Earnings Report

March 10, 2009

The market is having a nice rally this morning. I should you warn you that the real test will come in the final 30 minutes of the trading day (3:30 to 4). If we see continued buying going into the close, then we'll know there's more conviction to this market. As I've been saying, what I really want to see is a day with a weak opening followed by a strong and continued intra-day reversal. That will be a key sign that the bulls are starting to gain control of this market. Boots and Coots Delivers a Good Earnings Report

Twlight of the Dollar

March 9, 2009

You're heard me talk a lot recently about why I think the dollar is headed for a big fall. Here's an excellent graph showing why I'm so bearish on the greenback. This shows the growth of federal debt held by foreign investors. Twlight of the Dollar

Preview of the Week Ahead

March 9, 2009

Here are some stunning statistics: Since the market's peak in October 2007, the stock market has lost $11 trillion in valuation. That includes $2.6 trillion in this year alone. Nearly half of all stocks in the Wilshire 5000 are now trading at less than $5 a share, and more than one-third are under $3 a share. Preview of the Week Ahead

Merck to Buy Schering-Plough in $41 Billion Mega-Merger

March 9, 2009

The big news this morning is that Merck (MRK) is buying Schering-Plough (SGP) for $41 billion. This is the latest mega-merger in the pharmaceutical industry. A few weeks ago, Pfizer (PFE) announced a $68 billion merger deal with Wyeth (WYE). What caught my attention about today's deal is that Merck is financing nearly half of it in cash. This is a very important message to investors because it's a reflection of how cheap the stock market is. Merck to Buy Schering-Plough in $41 Billion Mega-Merger

Emergent Biosolutions Up 13%

March 6, 2009

Shares of Emergent Biosolutions (EBS) are doing very well today on its earnings report. Actually, the company's earnings plunged but that's not what the market is reacting to. The company makes the BioThrax vaccine for anthrax which is mostly purchased by the U.S. government. Due to an order delay last quarter, Emergent's sales dropped by 60% and earnings dropped by 95%. Emergent Biosolutions Up 13%

FSYS Misses Earnings, So Sell This Stock

March 6, 2009

On Thursday, Fuel Systems Solution (FSYS) came out with its fourth-quarter earnings report and the numbers were just plain awful. First, let me apologize for recommending this stock. Needless to say, I'm very upset with this company. Here are the details: Fuel Systems, a maker of alternative fuel components, posted lower quarterly earnings and forecast weak revenue for 2009. The shares slumped by about 25% on Friday. The company posted fourth-quarter net income of just $641,000, compared with $4.8 million a year earlier. Equally troublesome was that Fuel Systems forecast revenue of $330 million to $360 million for 2009 which was far below what I expected. That kind of guidance is just inexcusable. FSYS Misses Earnings, So Sell This Stock

Unemployment Rate Soars to 8.1%

March 6, 2009

The Labor Department reported this morning that the unemployment rate rose to 8.1% last month. That's the highest rate in over 25 years. The economy shed 651,000 jobs in February. The job losses for December and January were also revised higher. Over the past three months, the economy has lost nearly two million jobs. That's an average of over 150,000 job losses per week. Honestly, we got lucky today. It could have been much worse. Unemployment Rate Soars to 8.1%

Navellier Investment Seminars

March 5, 2009

I'm holding two investment seminars in the Midwest next week. On Tuesday, I'll be at the Sheraton Overland Park Hotel in Overland, KS. Then on Wednesday, I'll be at the St. Louis Airport Marriott in St. Louis, MO. Navellier Investment Seminars

The Market Reels Again

March 5, 2009

Today was another painful day on Wall Street. The Dow dropped 281.40 points to close at 6594.44. The S&P 500 reached its lowest level in 12-1/2 years. What we're seeing is the opposite of irrational exuberance, it's irrational pessimism. All the bad news is coming at once. Today, GM's (GM) auditors said that the company may not be viable. I can't say I'm surprised. Citigroup (C) fell below $1 a share. For the fifth straight week, the Labor Department reported that more than 600,000 Americans filed claims for unemployment benefits. The Market Reels Again

The Value/Growth Gap Continues to Widen

March 5, 2009

I wrote about this recently but I want to touch on it again. The performance gap between Growth and Value is getting larger by the day. The Value/Growth Gap Continues to Widen

Wal-Mart Boosts Dividend By 15%

March 5, 2009

The market is down again in early trading this morning. One bright spot is Wal-Mart (WMT). The retail giant announced that it's hiking its quarterly dividend by 15% to 27.25 cents a share. This is very good news and it's interesting because I recently discussed the importance of dividends. In particular, I singled out Wal-Mart for its long-term track record of yearly dividend increases. The company has now raised its dividend every year for the last 35 years. Wal-Mart Boosts Dividend By 15%

Fuel Systems to Report after the Bell

March 5, 2009

Get ready for the closing bell today because that's when one of my favorite alternative energy stocks reports its fourth-quarter earnings. Over the last several quarters, Fuel Systems Solutions (FSYS) has developed a nice habit of embarrassing Wall Street's earnings forecasts and soaring dramatically higher the next day. Fuel Systems to Report after the Bell

The Market Finally Rallies

March 4, 2009

After dropping for 11 of the past 12 sessions, the stock market finally put on a nice rally today. The Dow gained nearly 150 points to close at 6,875. In fact, if it weren't for some selling during the last 30 minutes, the Dow could have made a run back over 7,000 (see chart below). That final half hour is very important in gauging the market's confidence. The Market Finally Rallies

Friday's Jobs Report Will Be Bad

March 4, 2009

With all the bad news this week, I thought I'd pass along some good news. An asteroid buzzed the Earth on Monday just missing us by less than 50,000 miles. In planetary terms, that's a close shave. The asteroid measured by 69 feet and 154 feet in diameter so it could have done some real damage. Friday's Jobs Report Will Be Bad

Obama: Stocks Are a Good Deal

March 4, 2009

Meeting with British Prime Minister Gordon Brown yesterday, President Obama said: "What you're now seeing is profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you've got a long-term perspective on it." Obama: Stocks Are a Good Deal

Bernanke Speaks, the Market Falls

March 3, 2009

About that morning rally...it looks like I spoke too soon. Or rather, it was Ben Bernanke who did the speaking. Once the Fed Chairman started his testimony before the Senate Banking Committee, the Dow immediately started losing ground. By noon, we were down close to 50 points. (I really wish these guys gave their talks after the bell.) Bernanke Speaks, the Market Falls

MasTec Reports Very Good Earnings

March 3, 2009

Wall Street seems to be enjoying a small relief rally this morning after yesterday's rout. One of my favorite Emerging Growth stocks, MasTec (MTZ) announced very strong earnings after the closing bell yesterday. The shares are doing very well this morning. MasTec Reports Very Good Earnings

Investors Should Appreciate Dividends

March 3, 2009

Standard & Poor's recently projected that dividend payouts will fall by 13.3% this year. That's the biggest drop off in dividends since 1942. We've already seen several major companies slash their dividends in an effort to cut costs. JPMorgan Chase (JPM) lowered its dividend by 87%. General Electric (GE) announced its first dividend reduction since the Great Depression. Yesterday, PNC Financial Services Group (PNC) said it will cut its dividend by 85%. Investors Should Appreciate Dividends

Dow -299

March 2, 2009

Today was an historic day for the stock market. The Dow plunged 299.64 points to close at 6763.29. The numbers are just plain ugly. All 30 Dow stocks were down, and Citigroup (C) dropped by 20%. What used to be the world's largest and most important financial institution is now worth just $1.21 a share. For the year, the Dow is down nearly 23% which is about the same as the one-day market crash in 1987. Dow -299

Buffett: "The economy will be in shambles throughout 2009"

March 2, 2009

On Friday, Warren Buffett released his annual chairman's letter to Berkshire Hathaway (BRKA) shareholders. These letters have become famous on Wall Street, and every year investors are curious to see what the legendary Oracle of Omaha has to say. Buffett:

AIG Is Set to Post the Largest Quarterly Loss in History

March 2, 2009

The futures markets are pointing to another lower opening. In fact, the Dow could open below 7000 this morning for the first time in nearly 12 years. The big news weighing on the market is that the government is giving American International Group (AIG) another $30 billion in taxpayer money. The insurance company is expected to report a loss of $62 billion. That's an astounding figure. Very few companies are worth that much. In fact, very few companies have ever been worth that much. AIG Is Set to Post the Largest Quarterly Loss in History

February 2009

Top Chinese Internet Stocks

February 27, 2009

One of the more remarkable stories of recent years has been the phenomenal growth of the Internet in China. Only thirty years ago, China was seen as a hopelessly backward state. Today, it has one of the fastest-growing economies in the world. Top Chinese Internet Stocks

Q&A: Bank of American Is a Bust

February 26, 2009

How can Bank of America survive the credit crisis? In my opinion, it can't. Q&A: Bank of American Is a Bust

Great Earnings from Fluor and Flowserve

February 26, 2009

After the bell yesterday, two of my favorite stocks reported very good earnings. Fluor (FLR), a construction company heavily involved in oil and gas, reported fourth-quarter earnings of $1.04 a share which was 12 cents better than forecasts. Operating profits rose 30% over last year. The company sees 2009's earnings between $3.90 and $4.20 per share. Great Earnings from Fluor and Flowserve

General Motor's Awful Quarter

February 26, 2009

This morning, General Motors (GM) reported a quarterly loss of nearly $10 billion, and the company lost over $30 billion last year. GM's cash balance is now down to $14 billion. CEO Rick Wagoner is about to ask the Treasury for even more cash so the company will make it through this year. General Motor's Awful Quarter

Stocks to Buy for Endless Deficits

February 25, 2009

Wall Street didn't rally after the president's address. As the deficits mount and the dollar weakens, this will alter the investing landscape. Here's my latest on how to invest when the budget deficit is high. Stocks to Buy for Endless Deficits

Obama's Speech: What It Means for Investors

February 25, 2009

Last night, President Obama spoke to a joint session of Congress to lay out his economic plans. His plan has three major points. The first is to set up a new lending fund designed to get bank lending back on its feet. The crucial issue for the administration is to take the toxic assets off the balance sheets of banks. Once that happens, banks will be in much better shape to resume lending. Obama's Speech: What It Means for Investors

Why I Like Apple

February 25, 2009

I was surprised to see Apple (AAPL) get downgraded today by Shebly Seyrafi of Calyon Securities. Basically, he thinks that Apple's products are too expensive. He may be right, but I have to say that I'm not so concerned about Apple's pricing. Why I Like Apple

Value Is at a New Low, But Not Growth

February 24, 2009

Here's a look at how the Russell 1000 Growth and Value Indexes have performed since the November 20 low. Value Is at a New Low, But Not Growth

Iron Man Boosts Marvel's Bottom Line

February 24, 2009

Marvel (MVL) is doing very well today thanks to the success of the DVD release of Iron Man. For the fourth quarter, the company earned 80 cents a share which was a huge jump from the 35 cents a share it made last year. The consensus on Wall Street was for 71 cents a share, and sales doubled to $224 million. Iron Man Boosts Marvel's Bottom Line

Still Above the Low

February 24, 2009

Although the Dow made a new multi-year low, the S&P 500 hasn't yet. Yesterday, the S&P 500 got down to as low as 742.37 which was just above the November 21 intra-day low (note the red line on the chart below). Still Above the Low

Obama's Economic Stimulus - Pork and Butterflies

February 23, 2009

The president will be addressing a joint session of Congress. With the Dow at an 11-year low, we all need some cheering up. Here's my latest on why Obama's stimulus package failed to stimulate Wall Street. Obama's Economic Stimulus - Pork and Butterflies

JPMorgan Chase Slashes Dividend By 87%

February 23, 2009

JPMorgan Chase (JPM) surprised Wall Street by announcing an 87% cut in its quarterly dividend. The bank will now pay five cents a share each quarter, down from 38 cents a share previously. The company said that this move will allow them to save $5 billion a year. JPMorgan Chase Slashes Dividend By 87%

Best Bets in Health Care

February 23, 2009

Last week, I shared some of my favorite health care stocks with you. Today, I want to go over some prominent health care stocks whose outlook doesn't look so bright. Bear in mind the difference between a successful health care stock and an unsuccessful one can be huge. Best Bets in Health Care

My Thoughts on the Geithner Bank Plan

February 23, 2009

Earlier, I criticized Treasury Secretary's Geithner's bank bailout plan. More specifically, I called on him to resign before he embarrasses Obama even more. The plan still lacks a lot of detail but here are my thoughts on the four major points. My Thoughts on the Geithner Bank Plan

The Nationalization of the Banking System Is Underway

February 23, 2009

The big news this morning is that Citigroup (C) and the Feds are currently discussing whether the government should increase its ownership stake to as much as 40%. The Nationalization of the Banking System Is Underway

Obama Needs to Give Us the Specifics of His Housing Plan

February 23, 2009

Last week, I posted the video of CNBC reporter Rick Santelli railing against the Obama administration's $75 billion to help struggling homeowners. His call for a new Tea Party struck a raw nerve and was carried on virtually every major network. It was so serious that White House has been trying to do damage control. Obama Needs to Give Us the Specifics of His Housing Plan

Cowen and Company Upgrades MasterCard to Outperform

February 21, 2009

Cowen and Company is upgrading MasterCard (MA). Cowen and Company Upgrades MasterCard to Outperform

Why I'm Pleased with Today's CPI Report

February 20, 2009

The Consumer Price Index report for January came out this morning, and it was inline with forecasts. Consumer prices rose 0.3% last month. Core prices rose 0.2% which was 0.1% above consensus. Why I'm Pleased with Today's CPI Report

Billionaire Allen Stanford Found in Virginia

February 20, 2009

The manhunt is over. The missing billlionaire R. Allen Stanford has been found in Virginia. The SEC has been investigating him for fraud. Billionaire Allen Stanford Found in Virginia

Sector Preview: Health Care

February 19, 2009

Here's my latest look at the health care sector. This is a particularly good sector to invest in during periods of slow economic growh. Sector Preview: Health Care

Spartan Motors Is Stopped Out of Quantum Growth

February 19, 2009

Spartan Motor's (SPAR) stock is getting knocked down today and it fell below my stop-loss price in Quantum Growth. For the fourth quarter, Spartan reported earnings of nine cents a share which was below estimates. Spartan Motors Is Stopped Out of Quantum Growth

Billionaire Allen Stanford Goes Missing

February 19, 2009

Wall Street is currently being rocked by another scandal. Billionaire Allen Stanford is being investigated for fraud. There's one little problem: No one knows where he is. Now investigators are looking at any place he might be. Billionaire Allen Stanford Goes Missing

Sprint Posts Loss

February 19, 2009

Here's a story that we're going to see more of. Sprint Nextel (S) cut costs but still posted a fourth-quarter loss of $1.6 billion. Still, that's a lot better than last year's loss of $29 billion. Sprint Posts Loss

The Dow Is Retesting Its Low

February 18, 2009

The Dow is about to make a new closing low today although we haven't yet broken the intra-day low. The Dow Is Retesting Its Low

Southwestern Energy: Strong Fundamentals

February 18, 2009

One of my favorite energy stocks is Southwestern Energy (SWN). The company is due to report earnings next week. Bloomberg recently profiled some upcoming earnings reports and they quoted Shawn Price, one of my top analysts. Southwestern Energy: Strong Fundamentals

The Resurgence of China

February 18, 2009

While the U.S. market is retesting its November low, some world markets are doing well. One example is China. After a rough patch, Shanghai has resumed its leadership as the world's best-performing stock market this year, hitting a new 5�-month high last week. The Resurgence of China

Looking at the Auto Bailout

February 17, 2009

Here's my latest on the auto bailout and the car industry as a whole. I'll give you a hint: It doesn't look good. Looking at the Auto Bailout

Obama Signs the Economic Stimulus Bill

February 17, 2009

The Washington Post reports: "President Obama today signed into law a $787 billion economic stimulus plan that he said begins "the essential work of keeping the American dream alive in our time." Obama Signs the Economic Stimulus Bill

Ugly Morning

February 17, 2009

The market is getting hit this morning. There seem to be concerns over the government's banking plan, or rather, lack of plan. The market, meanwhile, is retesting its November low. The morning, the Dow has been as low as 7,560, which is just barely above the November 20 closing low of 7,552.29. Ugly Morning

The Eurozone Faces Its Worst Recession in 50 Years

February 17, 2009

The economic news coming out of Europe continues to be grim. Europe's GDP contracted 1.5% in the fourth quarter (vs. the previous quarter), the largest quarterly drop since the euro-zone began keeping such records, in 1995. Even more worrisome, the largest economy in the euro-zone, namely Germany, posted a 2.1% GDP contraction in the fourth quarter, the largest GDP quarterly decline in over 20 years. The next largest euro economies, France and Italy, followed suit, declining 1.2% and 1.8%, respectively in the fourth quarter. Overall, the euro-zone faces its worst recession since the 1950s. The Eurozone Faces Its Worst Recession in 50 Years

The Stimulus Bill Passes

February 14, 2009

Yesterday, the U.S. Senate approved the compromised stimulus bill by a vote of 60 to 38. President Obama will sign the bill into law next week. The final bill totals $787 billion and 1,100 pages. The Stimulus Bill Passes

Stock Recommendations for President's Day

February 13, 2009

The stock market is closed on Monday in honor of President's Day. (Technically, the New York Stock Exchange prefers to celebrate it as George Washington's birthday instead of the more modern President's Day.) Stock Recommendations for President's Day

House Passes Economic Stimulus Bill

February 13, 2009

The House of Representatives just voted 246 to 183 to pass the compromised economic stimulus bill that was agreed to earlier this week. The Congressional Budget Office said the bill will ultimately cost $787.2 billion. The bill now goes to the Senate. House Passes Economic Stimulus Bill

Wells Fargo Revises Earnings

February 13, 2009

I would have hoped that by ringing the opening bell, I would have sparked a rally. No such luck. The market is being weighed down by a major downward earnings revision from Wells Fargo (WFC). Wells Fargo Revises Earnings

Ringing the Opening Bell

February 13, 2009

Here's a video of me ringing the opening bell this morning at the New York Stock Exchange. Ringing the Opening Bell

What I Like in Retail Stocks

February 13, 2009

The retail sector continues to be in a lot of trouble. Abercrombie & Fitch (ANF) just reported horrible earnings for the fourth quarter. Sales plunged 19%. What I Like in Retail Stocks

How the Government's Plans Affect You

February 12, 2009

Well, I've said it before, and I'll say it again: Continue to steer clear of the financial sector for the foreseeable future, and don't go bargain hunting in bank stocks. And don't get too depressed about Tuesday's big declines--the market has shown resilience since then, including a very dramatic rally in late trading today. How the Government's Plans Affect You

Valentine's Day Stocks

February 11, 2009

This Saturday is Valentine's Day. Here's a look at some stocks that are associated with the trappings of each February 14. Valentine's Day Stocks

Growth Takes the Lead

February 11, 2009

Although the market is down this year, there's a wide spread between growth and value. The sharp decline is value stocks is hardly surprising considering that 20% of the value index is in financials compared with just 3% for the growth index. Growth Takes the Lead

MasTec Poised to Profit from Obama's Stimulus Plan

February 11, 2009

Investor's Business Daily recently profiled MasTec (MTZ), one of our Emerging Growth stocks: MasTec Poised to Profit from Obama's Stimulus Plan

The Senate Passes the Stimulus Bill

February 10, 2009

The vote was 61 to 37. The CBO says that the bill will cost $838 billion over the next 10 years. Now the House and Senate need to get together to work out a final bill. The Senate Passes the Stimulus Bill

Geithner Announces Bailout Plan

February 10, 2009

This morning, Treasury Secretary Tim Geithner announced the government's plan to bailout the U.S. banking system. Here's are the details of Geithner's bailout plan: Geithner Announces Bailout Plan

According to Buffett's Method, Stocks Are Attractive

February 10, 2009

Fortune has a great graph showing the relationship between the stock market and the Gross National Product. This is an important metric because, according to Warren Buffett, stocks are attractive when their market value is 70% to 80% of GNP. We're at that point now. According to Buffett's Method, Stocks Are Attractive

Stimulus Bill Clears Hurdle

February 9, 2009

The economic stimulus just cleared a big hurdle earlier this evening. The Senate voted 61-36 to shut down debate. This paves the way for a vote on the bill tomorrow. However, even when the bill passes, we're still not done. Leaders from the House and Senate will have to get together to work out the differences between their respective bills. Stimulus Bill Clears Hurdle

Just 5% of Stocks Are Rated as Sells

February 9, 2009

One of the key metrics in my stock-picking methodology is earnings surprises, which is how much companies beat Wall Street analysts with their earnings reports. I've tested this variable time and time again over 25 years and it constantly leads me to superior stocks, just as we're seeing this morning with Sohu.com (SOHU). Just 5% of Stocks Are Rated as Sells

Sohu.com's Earnings Rise Over 240%

February 9, 2009

Sohu.com (SOHU) reported outstanding earnings this morning. A few weeks ago, SOHU said to expect fourth-quarter earnings-per-share of $1.20 to $1.25. This morning, the company said it earned $1.35 a share. For last year's fourth quarter, Sohu.com earned 39 cents a share so that's growth of over 240%. Sohu.com's Earnings Rise Over 240%

Stimulus Bill Showdown

February 9, 2009

Today is going to be an eventful day in Washington and on Wall Street. President Obama is putting a lot of pressure on the Senate to pass the stimulus bill. The Democrats are going to hold a procedural vote later today which will gauge how much support they have. This could have a big impact on trading. The president isn't leaving anything to chance--he's going to hold a prime-time news conference in an effort to build support for the stimulus plan. Stimulus Bill Showdown

China Now Buys More Cars than America

February 9, 2009

How lousy are car sales? Consider that for the first time ever U.S. vehicle sales fell below China's. January U.S. vehicle sales fell to 656,976 vehicles--the lowest monthly sales figure since December 1981. Chrysler's sales fell by 55% and Ford (F) fared the "best" of the Big 3 with a 40.2% sales decline. GM's (GM) sales fell 48.9%, despite GMAC being reclassified as a bank. China Now Buys More Cars than America

President Obama Pushes for the Stimulus

February 6, 2009

Well, it looks like President Obama has a temper. We'll soon find out who's the most powerful man in America. If the stimulus plan passes, then the answer is Barack Obama. If it fails, then the answer is Rush Limbaugh. President Obama Pushes for the Stimulus

Today's Rally

February 6, 2009

The market is rallying today and considering the lousy jobs report this morning, that's a good sign. My guess is that 10% of this rally is on the hopes that the Democrats will get their economic stimulus bill passed. The other 90% is on the hopes that Secretary Geithner's bad bank plan announcement on Monday will help the banking system get back on its feet. Expectations are extremely high for Geithner. Today's Rally

Moody's: U.S. Financial Position Deteriorating

February 6, 2009

From MarketWatch: Moody's: U.S. Financial Position Deteriorating

Unemployment Hits 7.6%

February 6, 2009

The jobless rate for December reaches 7.6%, the highest in 16 years. The economy lost nearly 600,000 jobs last month. Unemployment Hits 7.6%

Morning News

February 5, 2009

There are two major news items this morning. Morning News

Ackerman Lays into the SEC

February 5, 2009

Yesterday Harry Markopolos testified before Congress. He's the money manager who warned the Securities and Exchange Commission about Bernie Madoff and his Ponzi Scheme. Actually, he actually warned the SEC several times, but the agency still did nothing. Ackerman Lays into the SEC

Obama Wants Salary Caps for Execs at Bailed Out Banks

February 4, 2009

President Obama said that he wants to cap executive pay at bailed out banks to $500,000 a year. Naturally, this would be a huge incentive for banks to avoid seeking any public funds. Obama Wants Salary Caps for Execs at Bailed Out Banks

Illumina Soars

February 4, 2009

One of my favorite Emerging Growth stocks, Illumina (ILMN) is surging higher in today's trading. The company is involved in genetic testing and its business has been red-hot lately (here's a great profile of Illumina from Wall Strip). Illumina Soars

Looking Ahead to Friday's Jobs Report

February 4, 2009

On Friday morning, the government is going to release the jobs report for January and I expect it will be a disaster. I think the economy lost at least 500,000 jobs last month. For December, the unemployment rate was 7.2% and that number could go rise to 7.5% for January, which would be worst jobs market in 16 years. Looking Ahead to Friday's Jobs Report

True Religion Jeans Are a Cult Classic

February 4, 2009

The LA Times looks at Jeffrey Lubell, the man by behind True Religion Jeans (TRLG). Here's a sample: True Religion Jeans Are a Cult Classic

The Future for Flir Systems

February 3, 2009

The Future for Flir Systems

The Dollar Miraculously Rises!

February 3, 2009

With U.S. deficits skyrocketing, along with mushrooming money supply, I can't see how the dollar can rise much further. The dollar may have gotten a shot of steroids at last week's World Economic Forum in Davos, Switzerland, where the U.S. dollar was in the spotlight. For instance, China's Premier Wen Jiabao called for more regulation of "major reserve currencies" (i.e., the dollar), while Russia's Prime Minister Vladimir Putin called over-reliance on the dollar "dangerous." Putin bluntly called for the development of multiple, regional reserve currencies. Putin also mocked U.S. businessmen, who (he said) had boasted last year at Davos about the U.S. economy's fundamental strength and "cloudless" prospects." He gleefully mocked Wall Street by saying "Today, investment banks, the pride of Wall Street, have virtually ceased to exist." The Dollar Miraculously Rises!

The Fed Pledges to Keep Throwing Money

February 3, 2009

The Federal Reserve just announced that it's extending all existing liquidity programs. The Fed Pledges to Keep Throwing Money

Tax Tip

February 3, 2009

If you didn't get last year's tax rebate, you might now qualify. Tax Tip

Another Retest for the Dow

February 3, 2009

The Dow closed yesterday at 7,936.83--its lowest level since November 20, which marked the lowest close of the last five years. Another Retest for the Dow

Morning Headlines

February 3, 2009

Here are some important news items ahead of the opening bell. Morning Headlines

No Miracles on 34th Street

February 2, 2009

Lately, I've been talking about the horrible outlook for the retail industry. Except for some niche areas, the whole sector is a minefield. The latest bad news comes from Macy's (M). The company aggressively cut prices during the holidays--sometimes as much as 60%. Still, that didn't help. No Miracles on 34th Street

The Bad Bank Plan Is Taking Shape

February 2, 2009

The first act by the new Treasury Secretary Tim Geithner seems to be the creation of a huge new "bad bank" to buy toxic assets and dispose of them. The Bad Bank Plan Is Taking Shape

Monday Headlines

February 2, 2009

Here are some important news items affecting today's trading: Monday Headlines

The Fed Seems Overwhelmed with Financial Crises

February 2, 2009

At the Federal Open Market Committee's two-day meeting last week, with the Federal Funds rate already near zero (ranging between 0% and 0.25%), the Fed effectively ran out of bullets. The market responded with a rise in the three-month Treasury bill rate, which more than doubled from 0.11% to 0.24% in the wake of last week's troubling Treasury auction. Despite the fact that short-term rates doubled last week, the Fed hinted that it would consider buying long-term Treasury bonds to monetize some debt, which is a fancy way of saying that they would print more money. The Fed Seems Overwhelmed with Financial Crises

January 2009

Super Bowl Investing

January 30, 2009

This Sunday is the 43rd Super Bowl which pits the Pittsburgh Steelers against the Arizona Cardinals. The Steelers are currently seven-point favorites, but did you know of the connection between the stock market and the Super Bowl? Super Bowl Investing

Flowserve Raises Guidance

January 30, 2009

Flowserve (FLS) won't report its first-quarter earnings until February 25, but the company gave us a nice preview today. Flowserve said that its 2009 earnings will be "somewhat above the high end" of its earlier forecast. The earlier forecast was $7.20 to $7.50 per share. Flowserve Raises Guidance

Economy Shrank by 3.8% in the Fourth Quarter

January 30, 2009

The government reported that the economy shrank by 3.8% for the last three months of 2008. That's the biggest drop in 25 years. The numbers could have been much worse: Economy Shrank by 3.8% in the Fourth Quarter

Timken Earns Seven Cents a Share

January 29, 2009

Timken (TKR), one of my Quantum Growth stocks, just reported disappointing earnings for the fourth quarter. The company lost 38 cents a share, however, if you just look at earnings from continuing operations, which is the key, the company earned a profit of seven cents a share. Still, that was 10 cents below Wall Street's forecast. Timken Earns Seven Cents a Share

The House Passes the Stimulus Plan

January 28, 2009

The vote was 244 to 188. The House Passes the Stimulus Plan

Terra Rejects CF Industries' $2.1 Billion Bid

January 28, 2009

I'm not sure if this is smart. CF Industries (CF) offered a pretty rich premium for Terra (TRA). Terra Rejects CF Industries' $2.1 Billion Bid

Golden State Blues

January 28, 2009

On Friday, California's State Employment Development Department announced that the state's unemployment rate rose to 9.3% in December, up from 8.4% in November, reaching the highest rate in 15 years. Over a million Californians lost their jobs last year. (More than 1.7 million of California's 37 million residents were unemployed in December, up from only 650,000 in the same month a year ago.) The state's annual deficit is now $42 billion, caused by a dramatic drop in tax revenues. This trend will likely push the state's deficit up to $50 billion later this year. Golden State Blues

More Earnings Reports

January 28, 2009

A few weeks ago, I listed Yahoo (YHOO) as one of five big-name stocks to sell now. Here's what I wrote: More Earnings Reports

Knight Capital Is Exiting the Hedge Fund Business

January 27, 2009

The Wall Street Journal reports that Knight Capital Group (NITE) is selling off its hedge fund business. My only complaint is that they're probably selling at the low, but make no mistake, this is a very good move on NITE's part. Their hedge fund business has been a drag on earnings and I like to see company's focus on their core businesses and not get involved in messy side business. Knight Capital is a very strong buy. Knight Capital Is Exiting the Hedge Fund Business

Growth Is Rapidly Contracting Around the Globe

January 27, 2009

Up until last year, China had been growing at double-digit rates for several decades. But last Thursday, China's National Bureau of Statistics announced that its economy expanded by only 6.8% in the fourth quarter and 9% for all of 2008. Chinese growth was cut in half from the same quarter in 2007, when China's GDP was growing at a 13% annual pace. Rising unemployment and a series of labor protests have now raised governmental concerns about social stability. Growth Is Rapidly Contracting Around the Globe

McDonald's Earnings Report

January 26, 2009

The market is getting a nice lift this morning. McDonald's (MCD) reported strong earnings of 87 cents a share which was four cents better than consensus. The only weak spot was that sales were a bit below what the Street wanted to see so the shares have pulled back slightly. This is simply some near-term profit-taking. The important news is that MCD had a good quarter in face of many economic challenges. I'm also happy to see that the company is planning to invest $2.1 billion of its own money to open 1,000 new restaurants. That's the kind of bold actions I like to see. McDonald's is a strong buy. McDonald's Earnings Report

What to Expect from This Week's Davos (and FOMC) Meetings

January 26, 2009

This week, the annual global economic conference in Davos, Switzerland will be in the news. In past years, the stars of the World Economic Forum were the bigwig corporate executives. This year, economists and politicians will likely emerge as the stars of the global economic firmament. In fact, the organizers brag that this year's meeting will feature a record number of world leaders, including 40 heads of state, 17 finance ministers and 19 central bankers - but few business stars. What to Expect from This Week's Davos (and FOMC) Meetings

The New Knight of Trading

January 23, 2009

Yesterday, Knight Capital (NITE), one of my Quantum Growth stocks, reported very good earnings and the stock jumped over 10%. Excluding a gain from an investment, NITE earned 56 cents a share for the fourth quarter. The consensus on Wall Street was for earnings of 38 cents a share. Total revenues jumped 28.2%. It looks like all business units were strong except for asset management which is certainly understandable. The New Knight of Trading

Hedge Funds End Worst Year Ever

January 23, 2009

I've tried to explain to investors that much of the recent selling pressure in the market and in commodities hasn't come from individual investors, but from battered hedge funds. Bloomberg has some statistics: Hedge Funds End Worst Year Ever

In Lean Times, McDonald's Only Gets Fatter

January 21, 2009

Time is the latest media outlet to climb aboard the McDonald's (MCD) bandwagon. Last week, it was the New York Times. The tough economic times are good for a low-cost restaurant like McDonald's but that's not the whole story: In Lean Times, McDonald's Only Gets Fatter

ABT Shows Earnings Matter

January 21, 2009

One of my favorite stocks, Abbott Laboratories (ABT), released a great quarterly report before the market opened, and has been rising all morning as a result. I've said it before and I'll say it again: Following stocks with strong earnings is the only way to profit in this difficult market. ABT Shows Earnings Matter

Our Merging Emerging Stocks!

January 16, 2009

Great new today! Two of our Emerging Growth stocks are getting hitched. CF Industries (CF) is offering to buy Terra Industries (TRA) for $2 billion in stock. The proposed deal is that TRA owners will get 0.4235 shares of CF for each TRA share they own. Terra's board said that it's considering the deal. Our Merging Emerging Stocks!

My Take on Bank of America

January 16, 2009

I've never trusted Bank of America (BAC) under Ken Lewis, which is rated "D - Sell" in PortfolioGrader Pro. The reason for my distrust is that the bank has always tried to massage its earnings numbers each quarter. I can't stand when companies try to do that. My Take on Bank of America

The Citigroup Empire Dismantles

January 14, 2009

One year ago, I wrote: "In the end, I expect Citigroup will be broken into pieces and eventually be a shell of its former self." Today we learn that the company is finally taking my advice: The Citigroup Empire Dismantles

Insteel Beats the Street

January 13, 2009

Earnings season is getting off to a good start for my Quantum Growth Buy List. I like selected steel stocks in Quantum despite the tough environment for the industry. For the best steel stocks, the outlook isn't nearly as dire as some folks think. Insteel Beats the Street

Looking at Earnings Season

January 12, 2009

Earnings season got off to its start today with Alcoa (AA) reporting its first quarterly loss in six years. Wall Street was expecting a loss of just five cents a share. Alcoa lost 28 cents a share. Looking at Earnings Season

AZZ Blows Past Estimates

January 9, 2009

This morning, one of my top Emerging Growth stocks, AZZ Inc. (AZZ), reported outstanding third-quarter earnings of 88 cents a share. That's seven cents more than Wall Street was expecting. The company also guided higher for 2009's earnings. AZZ now sees a range of $3.35 to $3.45 a share for this year, although their sales guidance wasn't as strong as I would have preferred. The stock is up nicely this morning. AZZ Blows Past Estimates

Today's Awful Jobs Report

January 9, 2009

Ugh. The U.S. economy lost 524,000 jobs last month and the unemployment rate is now 7.2%. Last year, the economy shed 2.6 million jobs. Today's Awful Jobs Report

A Look at Sykes Enterprises

January 7, 2009

One of my favorite Quantum Growth stocks is Sykes Enterprises (SYKE). It's a fascinating small-call stock (just $800 million). I recently came across a good article on the company. Here's a sample: A Look at Sykes Enterprises

Fed Predicts Economy Will Get Worse

January 6, 2009

The Federal Reserve just released the minutes from its meeting held three weeks ago. Here's what they said... Fed Predicts Economy Will Get Worse

Crude Oil Is Back Over $50

January 6, 2009

Now that crude oil futures are back above $50 per barrel, it's clear that oil prices won't stay low forever. The fact is that oil is a seasonal business. Every spring, demand soars as farmers fire up their tractors. Then in the summer, the demand for electricity rises. Crude Oil Is Back Over $50

Happy New Year

January 1, 2009

Last year was a year many investors would like to forget. The New York Times lists some of the details: Happy New Year