November 22, 2013
Written by Christian DeHaemer
Iridium Communications (IRDM, 5.96)
Buy Iridium (IRDM:NASDAQ) as a bounce back play on space communications. Iridium is a global leader in providing satellite communication services. The company sells voice and data communication services to areas that are hard to reach—places where cell phones and landlines are not available. … The company missed earnings, reporting 19 cents a share compared with the 21 cents a share Wall Street was looking for. As you can see by the chart, the stock was crushed. This sell off is overdone. The company has a forward P/E of 6 and a PEG ratio of just 0.50. The rule of thumb is that if a PEG is below 1.0, the company is a buy. Read More »
October 25, 2013
Written by Keith Richards
America is now in the throes of a long-term bull market, although the good times are not without their risks. … I believe investors should now play the U.S. market to the upside, but hedge their bets by taking a more defensive position. [One way to do that is to use] funds that hedge their downside risk. For example, there’s the PowerShares S&P 500 Downside Hedged Portfolio (PHDG).
As its name suggests, it holds the S&P 500. The twist is that this fund is based on the Veqtor Index. It’s a combination of the S&P 500 and the VIX, the Market Volatility Index of the Chicago Board Options Exchange. Read More »
September 27, 2013
Written by J. Royden Ward
The iShares MSCI USA Minimum Volatility Index ETF (USMV) seeks investment results that correspond to the price and yield performance of the MSCI USA Minimum Volatility Index. The ETF invests at least 90% of its assets in securities of the Index or in depositary receipts representing securities in the Index.
USMV is currently selling at a very small 0.14% discount to its net asset value. The price to earnings ratio (P/E) of the stocks contained in the ETF is 25.0, and the price to book value ratio (P/BV) is 5.41. Both ratios are a little high, but beta, which is a measure of volatility, is a low 0.78. Management fees total 0.15%. Read More »
August 23, 2013
Written by Richard C. Young
Vanguard Health Care ETF (VHT)
from Richard C. Young’s Intelligence Report
The mix of aging populations and increasing incomes across the world will drive sales of devices, drugs, and other medical products going forward. The American medical multinationals owned by the Vanguard Health Care ETF (VHT) are poised to deliver the types of products being demanded both here at home and abroad. Read More »
August 16, 2013
Written by John Dobosz
“The predictability of earnings and the chance to buy in at discounted prices after big claims make insurance stocks great targets. Here’s another one with lean valuations and a good yield. Based just south of Harrisburg in Marietta, Pa., Donegal Group, Inc. (DGICA 13.75 Nasdaq – yield 3.70%), through its subsidiaries, offers property and casualty insurance to businesses and individuals, mostly in the Mid-Atlantic, Midwest, New England and South. Lines include homeowner’s, automobile and liability coverage. Last October’s Superstorm Sandy made an impact on earnings but it was not a crushing blow since it was an isolated catastrophe. Revenue this year is expected to climb 7.6% to $554 million, with earnings jumping 30% to $0.95 per share. Read More »
July 26, 2013
Written by Chloe Lutts Jensen
In our latest Investment Digest we have a new mid-year pick from David Banister, editor of Active Trading Partners.
“My mid-year pick is Tableau Software (DATA 52.07 NYSE). Tableau software has been growing at a 90% compounded rate for years using their revolutionary Business Intelligence analysis platforms. Their software allows users across small- to large-size entities to analyze the thousands and thousands of pieces of business data that corporations and organizations receive. They have developed a graphical user interface akin to what Apple did for the personal computer and later Microsoft with Read More »
July 20, 2013
Written by Chloe Lutts Jensen
In our latest Dividend Digest The Value Bounce Editor Carl Delfeld recommends an international mining company
Freeport-McMoRan Copper & Gold, Inc. FCX is a world leader in the exploration of mineral resource properties. … Reasons stock is trading at 2008 lows: Copper prices have fallen from highs in 2011—China consumes 40% of world copper production, concern over its economy slowing and high inventory levels have hit copper prices. A mining accident in Indonesia shut down production with estimates that 2013 production will likely come in about 20% below expectations. Freeport recently made two oil and gas exploration acquisitions worth $19 billion, shareholders did not appreciate that they were funded by Freeport issuing 91 million new Read More »
July 12, 2013
Written by Jim Oberweis
In today’s Daily Alert The Oberweis Report Editor Jim Oberweis recommends a new tech stock with strong momentum.
“Infoblox, Inc. (BLOX, NYSE) is a leader in automated network control and provides an appliance-based solution that enables dynamic networks and nextgeneration data centers. Dynamic networks enable on-demand connection and configuration of devices and applications and allow organizations to, among other things, accelerate service delivery and enhance the value of virtualization and cloud computing.
“To create dynamic networks, organizations need automated network control, which allows real-time network discovery and visibility, scalability, device configuration and policy implementation, and thus enables flexibility and improves the reliability of expanding networks.
Read More »