Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

Company Earnings

They are also referred to as “corporate earnings” and “corporate profits:” basically, the amount of money a company makes in certain period of time. The price/earnings multiple is still the most common tool used to value a company. The stock market values a company based on the amount of money—the earnings and profits—the company has after all expenses, including taxes, have been paid. In a stock market where stocks are traded at an average of 12 times earnings, a company making $1.00 a share per year would be valued at $12.00. All things being equal, the more money a public company makes, the higher its stock price.

Old Adage of “Don’t Fight the Fed” Stands, but Big-Cap Earnings Uninspiring

By for Profit Confidential

Big-Cap EarningsEarnings season continues and the deluge of results is positively affecting the S&P 500, which is pushing new record highs.

Also continuing its positive upward trend are biotechnology stocks, which still harbor a lot of price momentum from institutional investors.

Ligand Pharmaceuticals Incorporated (LGND) has been very hot since the beginning of the year. The company produced a very strong first half as second-quarter revenues grew 67% to $9.6 million. Earnings were $6.1 million compared to a net loss of $2.5 million.

We’re now seeing a larger number of smaller companies report. They typically take longer to produce their quarterlies because they don’t have the large accounting departments multinational companies do.

Unscientifically, among the large number of companies I follow, I am noticing a more positive second quarter compared to blue chips. This is important, because smaller companies are much more tied to the domestic U.S. economy and, without question, they are stronger drivers of new employment. (See “This Benchmark Company Is Shocking the Street.”)

Mohawk Industries, Inc. (MHK), which is a flooring manufacturing company for residential and commercial customers, leaped higher after reporting second-quarter sales grew 35% to $2.0 million. Earnings per share jumped 61% to $1.84 after unusual charges. Company management said that it is increasingly confident regarding the U.S. market. The position jumped nine percent on the stock market after reporting.

ServiceSource International, Inc. (SREV) is a small company that’s in the business of providing cloud applications to grow recurring corporate revenues. This company announced a solid 13% increase in its second-quarter sales, reaching $67.7 million.

Adjusted earnings were flat, but ServiceSource’s revenue growth was … Read More

What Makes Dividend Increases Market-moving News

By for Profit Confidential

Dividend Increases Market-moving NewsThere is a huge amount of news for the stock market to digest this week, with both economic data and company earnings reports. The stock market has been unsure of itself the last couple of weeks, wondering if the rally off of the Federal Reserve’s third round of quantitative easing (QE3) was a fake out. Now, the market needs company earnings in order to justify its current level; the only problem being, they aren’t expected to grow much over last year’s third quarter.

There certainly is a positive trend to most of the economic news of late; a lot of people are becoming suspicious about the employment figures, however. Leadership in this stock market remains with large-cap technology stocks, and over the next two weeks, market’s largest players will report their corporate earnings.

One blue chip technology stock that has been hit really hard recently is Intel Corporation (NASDAQ/INTC). Ever since Intel announced slowing business conditions due to its operations in the eurozone and increased competition, the stock has been in a sustained downtrend. The company reports today; don’t be surprised if management increases its quarterly dividend again to attract investors. Intel’s company earnings are material to this market. The company’s stock chart is below:

Intel Corp Chart

Chart courtesy of www.StockCharts.com

Other important blue chips reporting today include Johnson & Johnson (NYSE/JNJ) and The Coca-Cola Company (NYSE/KO). Coca-Cola has been a stock market leader this year, but its position recently pulled back during the QE3 rally. Coca-Cola’s company earnings aren’t as material to this market as Intel’s, but they do affect sentiment. This is another company that’s increasingly likely to raise its … Read More

Research In Motion Had Better Be Right

By for Profit Confidential

Research In Motion Had Better Be RightResearch In Motion Limited (NASDAQ/RIMM), otherwise known as RIM, is begging for patience from its shareholders and analysts…and that’s an understatement!

The stock price is down 95% over the last four years after trading at over $140.00 in May 2008, so my stock analysis is indicating that lots of patience is required, which could be just too much to expect from investors at this time.

RIM’s management is lucky we live in a sane and lawful society; otherwise, the company’s executives might be dragged out into the streets, and well, I will let you imagine.

The story behind RIM was impressive. Powered by the visions of co-founders Mike Lazaridis and Jim Balsillie, this small Canadian technology company developed an innovative real-time e-mail system that operated via an early smartphone called the “BlackBerry.” There was nothing like it. Wall Street and corporations loved the idea of having real-time access to e-mails. So popular was the personal digital assistant (PDA) and e-mail system that users began to term the BlackBerry a “CrackBerry” due to its addictive qualities.

But once it became the market leader, RIM became the target of all its rivals.

At first, my stock analysis was that there was no matching RIM due to the BlackBerry’s e-mail function, but as phones became smarter (hence the term “smartphone”), RIM’s initial rivals, such as Nokia Corporation (NYSE/NOK) and Samsung, began to develop innovative phones that raised the bar.

RIM was able to fend off the competition, but on June 29, 2007, Apple Inc. (NASDAQ/AAPL) launched the “iPhone” in the U.S., which was a “killer” phone according to my stock analysis.

In five … Read More

Stock Market in April Making a Fool of Traders?

By for Profit Confidential

 jobless rateThe first quarter was great for stocks. April on the other hand has not been kind to stocks so far, but it’s early. The question is: are stocks pausing and then moving higher or lower?

Is this a sucker’s rally?

The bull market is into its fourth year and my market view is that the near-term technical picture shows tough chart resistance.

The S&P 500 and Dow Jones Industrials have declined in four straight sessions, and they are searching for buying support, according to my market view.

The Russell 2000 is down 3.25% in April. The Dow is down 2.14%. More importantly, the Dow and Russell 2000 have breached below their respective 50-day moving average (MA).

Despite the near-term weakness in small-cap stocks, in my market view, I continue to feel that the smaller growth stocks, especially in technology, have the biggest upside. I discussed this in Where to Look for the Biggest Potential.

 jobless rate

Chart courtesy of www.StockCharts.com

A market view of the S&P 500 shows a 14-week upward move. My market view is that there’s some near-term topping action and a downside break. The S&P 500 is within 11 points of its 50-day MA as of the close of Monday. My market view is that a break below could trigger additional weakness down to as low as the 100-day MA at 1.312 and 1,300, a possible correction as much as 9.4%.

My market view is not that this will happen, but that there is some technical evidence a market adjustment may be coming, especially if traders cannot find any fresh reasons to buy.

The next several days and … Read More

The Thorn in the PC Market Leader’s Side

By for Profit Confidential

company earningsMy kid hardly ever works on his desktop personal computer (PC) anymore, instead favoring a laptop. In fact, I often see him surfing the Internet and doing research using my “iPad” or his “iTouch.” This market shift is not only with my kid, but with millions who are also abandoning their computers in favor of tablets. The result of this is proving quite difficult for PC makers, who are fighting to come up with a defense.

The market leader in PCs, Dell Inc. (NASDAQ/DELL), had a strong run, but it is now facing the surging shift to tablets. The company beat on its fourth-quarter revenues, but fell short on company earnings. Dell also disappointed after offering soft revenue guidance for the first quarter. The pickup in tablet sales is likely hurting Dell, even though it also makes tablets; however, they’re nowhere nearly as successful as the iPad made by Apple Inc. (NASDAQ/AAPL). I continue to view the latter stock as a long-term buying opportunity.

Hewlett-Packard Company (NYSE/HPQ) also disappointed investors after slightly beating on fiscal first-quarter earnings, but coming in short on revenues. Earnings were much lower than the prior year and revenues declined 7.1% year-over-year. Hewlett-Packard also provided soft fiscal second-quarter guidance like PC market leader Dell.

The commonality is that both of the companies are blaming the declining PC sales on the meteoric rise of tablets as a replacement for PCs and laptops, and hence neither is a buying opportunity.

What I described is why I continue to favor Apple as a buying opportunity, which is that it is edging higher after breaking the $500.00 price level to … Read More

« Older Entries

Old Adage of “Don’t Fight the Fed” Stands, but Big-Cap Earnings Uninspiring

By for Profit Confidential

Big-Cap EarningsEarnings season continues and the deluge of results is positively affecting the S&P 500, which is pushing new record highs.

Also continuing its positive upward trend are biotechnology stocks, which still harbor a lot of price momentum from institutional investors.

Ligand Pharmaceuticals Incorporated (LGND) has been very hot since the beginning of the year. The company produced a very strong first half as second-quarter revenues grew 67% to $9.6 million. Earnings were $6.1 million compared to a net loss of $2.5 million.

We’re now seeing a larger number of smaller companies report. They typically take longer to produce their quarterlies because they don’t have the large accounting departments multinational companies do.

Unscientifically, among the large number of companies I follow, I am noticing a more positive second quarter compared to blue chips. This is important, because smaller companies are much more tied to the domestic U.S. economy and, without question, they are stronger drivers of new employment. (See “This Benchmark Company Is Shocking the Street.”)

Mohawk Industries, Inc. (MHK), which is a flooring manufacturing company for residential and commercial customers, leaped higher after reporting second-quarter sales grew 35% to $2.0 million. Earnings per share jumped 61% to $1.84 after unusual charges. Company management said that it is increasingly confident regarding the U.S. market. The position jumped nine percent on the stock market after reporting.

ServiceSource International, Inc. (SREV) is a small company that’s in the business of providing cloud applications to grow recurring corporate revenues. This company announced a solid 13% increase in its second-quarter sales, reaching $67.7 million.

Adjusted earnings were flat, but ServiceSource’s revenue growth was … Read More

What Makes Dividend Increases Market-moving News

By for Profit Confidential

Dividend Increases Market-moving NewsThere is a huge amount of news for the stock market to digest this week, with both economic data and company earnings reports. The stock market has been unsure of itself the last couple of weeks, wondering if the rally off of the Federal Reserve’s third round of quantitative easing (QE3) was a fake out. Now, the market needs company earnings in order to justify its current level; the only problem being, they aren’t expected to grow much over last year’s third quarter.

There certainly is a positive trend to most of the economic news of late; a lot of people are becoming suspicious about the employment figures, however. Leadership in this stock market remains with large-cap technology stocks, and over the next two weeks, market’s largest players will report their corporate earnings.

One blue chip technology stock that has been hit really hard recently is Intel Corporation (NASDAQ/INTC). Ever since Intel announced slowing business conditions due to its operations in the eurozone and increased competition, the stock has been in a sustained downtrend. The company reports today; don’t be surprised if management increases its quarterly dividend again to attract investors. Intel’s company earnings are material to this market. The company’s stock chart is below:

Intel Corp Chart

Chart courtesy of www.StockCharts.com

Other important blue chips reporting today include Johnson & Johnson (NYSE/JNJ) and The Coca-Cola Company (NYSE/KO). Coca-Cola has been a stock market leader this year, but its position recently pulled back during the QE3 rally. Coca-Cola’s company earnings aren’t as material to this market as Intel’s, but they do affect sentiment. This is another company that’s increasingly likely to raise its … Read More

Research In Motion Had Better Be Right

By for Profit Confidential

Research In Motion Had Better Be RightResearch In Motion Limited (NASDAQ/RIMM), otherwise known as RIM, is begging for patience from its shareholders and analysts…and that’s an understatement!

The stock price is down 95% over the last four years after trading at over $140.00 in May 2008, so my stock analysis is indicating that lots of patience is required, which could be just too much to expect from investors at this time.

RIM’s management is lucky we live in a sane and lawful society; otherwise, the company’s executives might be dragged out into the streets, and well, I will let you imagine.

The story behind RIM was impressive. Powered by the visions of co-founders Mike Lazaridis and Jim Balsillie, this small Canadian technology company developed an innovative real-time e-mail system that operated via an early smartphone called the “BlackBerry.” There was nothing like it. Wall Street and corporations loved the idea of having real-time access to e-mails. So popular was the personal digital assistant (PDA) and e-mail system that users began to term the BlackBerry a “CrackBerry” due to its addictive qualities.

But once it became the market leader, RIM became the target of all its rivals.

At first, my stock analysis was that there was no matching RIM due to the BlackBerry’s e-mail function, but as phones became smarter (hence the term “smartphone”), RIM’s initial rivals, such as Nokia Corporation (NYSE/NOK) and Samsung, began to develop innovative phones that raised the bar.

RIM was able to fend off the competition, but on June 29, 2007, Apple Inc. (NASDAQ/AAPL) launched the “iPhone” in the U.S., which was a “killer” phone according to my stock analysis.

In five … Read More

Stock Market in April Making a Fool of Traders?

By for Profit Confidential

 jobless rateThe first quarter was great for stocks. April on the other hand has not been kind to stocks so far, but it’s early. The question is: are stocks pausing and then moving higher or lower?

Is this a sucker’s rally?

The bull market is into its fourth year and my market view is that the near-term technical picture shows tough chart resistance.

The S&P 500 and Dow Jones Industrials have declined in four straight sessions, and they are searching for buying support, according to my market view.

The Russell 2000 is down 3.25% in April. The Dow is down 2.14%. More importantly, the Dow and Russell 2000 have breached below their respective 50-day moving average (MA).

Despite the near-term weakness in small-cap stocks, in my market view, I continue to feel that the smaller growth stocks, especially in technology, have the biggest upside. I discussed this in Where to Look for the Biggest Potential.

 jobless rate

Chart courtesy of www.StockCharts.com

A market view of the S&P 500 shows a 14-week upward move. My market view is that there’s some near-term topping action and a downside break. The S&P 500 is within 11 points of its 50-day MA as of the close of Monday. My market view is that a break below could trigger additional weakness down to as low as the 100-day MA at 1.312 and 1,300, a possible correction as much as 9.4%.

My market view is not that this will happen, but that there is some technical evidence a market adjustment may be coming, especially if traders cannot find any fresh reasons to buy.

The next several days and … Read More

The Thorn in the PC Market Leader’s Side

By for Profit Confidential

company earningsMy kid hardly ever works on his desktop personal computer (PC) anymore, instead favoring a laptop. In fact, I often see him surfing the Internet and doing research using my “iPad” or his “iTouch.” This market shift is not only with my kid, but with millions who are also abandoning their computers in favor of tablets. The result of this is proving quite difficult for PC makers, who are fighting to come up with a defense.

The market leader in PCs, Dell Inc. (NASDAQ/DELL), had a strong run, but it is now facing the surging shift to tablets. The company beat on its fourth-quarter revenues, but fell short on company earnings. Dell also disappointed after offering soft revenue guidance for the first quarter. The pickup in tablet sales is likely hurting Dell, even though it also makes tablets; however, they’re nowhere nearly as successful as the iPad made by Apple Inc. (NASDAQ/AAPL). I continue to view the latter stock as a long-term buying opportunity.

Hewlett-Packard Company (NYSE/HPQ) also disappointed investors after slightly beating on fiscal first-quarter earnings, but coming in short on revenues. Earnings were much lower than the prior year and revenues declined 7.1% year-over-year. Hewlett-Packard also provided soft fiscal second-quarter guidance like PC market leader Dell.

The commonality is that both of the companies are blaming the declining PC sales on the meteoric rise of tablets as a replacement for PCs and laptops, and hence neither is a buying opportunity.

What I described is why I continue to favor Apple as a buying opportunity, which is that it is edging higher after breaking the $500.00 price level to … Read More

Earnings, the Debt Crisis and Domestic
Economic Data Are Shaping Up

By for Profit Confidential

The S&P 500 Index is looking pretty good right now. It is seemingly trying to break out of its three-month trading range, which is a very positive development for the stock market. Not only are investors coming back to the market because of more certainty towards the European debt crisis, but also corporate earnings are coming in solid and there’s been an uptick in domestic economic data. Clearly, this is a stock market that wants to go higher over the near term, providing there are no shocks to the system and the debt crisis doesn’t get much worse.

Microsoft May Be Set for Prime Time

By for Profit Confidential

Microsoft Corporation (NASDAQ/MSFT) presented muted results after its fiscal first-quarter revenues were only marginally above estimates, while its earnings were in-line. The stock has been a disappointment over the past decade, becoming viewed as a boring technology play with limited growth and a lack of vision.

Why this Market Will Continue to Ride the Wall of Worry

By for Profit Confidential

Amid continued concerns about the economy, slowly the stock market has been edging upward, setting the groundwork for a good year for stocks. Many factors are playing out behind the market’s advance:

In spite of predictions to the contrary, corporate profits have been rising. The market is as quick as ever at punishing companies not making their forecasts. Just look at Adobe Systems Incorporated (NASDAQ/ADBE) this morning; despite the company’s profits being up 69% for the third quarter, the stock is down 20% this morning, because the company is pulling back on its future profit forecasts. This year, the market has clobbered companies not making their earnings forecasts (like the Adobe Systems example), and has only slightly rewarded companies beating earnings estimates.

The primary purpose of the stock market is to price the equities that trade in the market based on the current and future earnings and dividends of the companies issuing the equities, the corporations issuing the stock.

Looking at the S&P 500 this year, the majority of companies have come out better from the recession than analysts had predicted. We had a slew of companies posting better-than-expected earnings in the first and second quarter of this year. Soon, we will see third-quarter earnings also surprise on the upside.

Market sentiment has also been a big positive for the stock market. Retail investors have not participated in the market rally that started on March 9, 2009. Most consumers, stock analysts and economists are still very concerned about the economy. This is a perfect environment for the stock market. When everyone is worrying, the stock market rides that wall of … Read More

What Earnings & Revenues Are Saying About the Market

By for Profit Confidential

Earnings and revenues are largely dictating trading at this time as evidenced by the volatility in the market. The results have so far been mixed and there is some concern towards revenue growth.

The Numbers Say “Go,” the Market Says “Whoa”

By for Profit Confidential

Just when things were going so well, another shock hit the system. Hopefully this will be fixed soon. I’ve been saying it over and over again and there’s no doubt in my mind. Sovereign debt represents the single greatest threat to the stability of capital markets. We’re seeing this play out right now.

There Is a Way to Save Canada’s Corporate “Oozing”

By for Profit Confidential

I’ve been brooding in a few of my past Profit Confidential articles about Canada’s corporate drainage to foreign money. But, as evidenced on just a few Australian examples show, there could be a way to at least retain a portion of our quality companies within our borders.

The first example is coming from Australian airline, Qantas Airways Limited, which was subject to a takeover this spring by Onex Corporation, the largest Canadian private equity firm. The takeover was for $10 billion, but it sunk after Qantas’s largest shareholder, UBS, refused to support the deal. Interestingly enough, UBS was also an investment banker on the deal, which meant that voting in the best interest of shareholders cost the firm millions of dollars in fees.

The second example is Kohlberg Kravis Roberts & Company, a U.S. private equity firm which also failed a takeover… in this case, a takeover of Coles Group Limited, the Australian gigantic operator of a chain of supermarket and department stores. After KKR withdrew from the scene, Coles was trading about 16% above KKR’s original bid.

How come Australians are so bent on protecting their corporate assets from foreign money, particularly considering that for the past decade, the World Bank has ranked Australia among the top 10 countries in which it is the easiest to do business? What has changed? Apparently, it is not the “what,” rather the “who:” Australia’s shareholders, and a number of money managers.

But what exactly did they realize? Like Canada, Australia’s stock exchange is heavily laced with bank and resource stocks. To illustrate, Canada’s S&P/TSX composite consists of 75% commodity and financial listings. … Read More

Processing the Computer Market

By for Profit Confidential

The world’s largest computer maker, Dell Incorporated (NASDAQ/DELL) is not the stock it used to be when founder Michael Dell first started the company from his garage in the ’80s. Both revenue and earnings growth has slowed considerably due to intense competition and the fact that computers are now commodity stocks.

 Over the last four quarters, Dell has beaten Wall Street estimates on only two occasions including a weak 3.4% upside in the fourth quarter of fiscal 2007. Revenue growth in fiscal 2009 ending in January is predicted at a mere 6%, not exactly the sign of a growth stock. The reality is the easy profits have been made on Dell and it is time to move on if you have not already done so.

 In the fight for world market share, we have seen increased competitive pressure from other key players, including Hewlett- Packard Company (NYSE/HPQ) and China-based Lenovo; both of which are currently threatening Dell’s stranglehold on the world market share.

 The reality is the news should not have been a surprise. We have discussed this issue in the past regarding Dell and the threat of competition, especially from Lenovo, which has the use of cheap labor and resources in China. Lenovo, which purchased the business laptop “ThinkPad” from International Business Machines Corporation (NYSE/IBM), is expanding its product line, including its cheap desktops into the United States. This is something that Dell and other PC makers should be concerned about, as it is fast approaching.

 The reality is Dell has been drastically cutting prices on its products by much larger discounts than in the past. Obviously, Dell realizes … Read More

What Bell Canada Executives are Telling Me

By for Profit Confidential

A very good friend of mine is a director at Bell Canada’s wireline acquisition marketing department. He is also an MBA graduate and a CFA Charterholder, which is why I love to pick his brain. This time around, the topic at hand was very close to home for him — BCE Inc.’s potential takeover by private equity firm, Kohlberg Kravis Roberts & Co.

Executives of public companies usually fear merger and acquisition transactions. In a typical shuffle, heads, particularly those that stick out the most, almost always roll. But, my friend is uneasy about this potential takeover for other reasons as well. If KKR pulls off its proposed leveraged buyout of BCE Inc., the transaction would effectively take Canada’s darling public company private. Since most Canadians own at least a couple hundred shares of BCE Inc. in their portfolios, it would be a huge loss to have another great company disappear from our equity landscapes.

On the other hand, this is just another sign that telecom bellwethers, such as BCE Inc., are in dire need of reinvention as cable companies invade the telecommunications market like locusts. What BCE Inc. believes is an ace up its sleeve is a potential merger with Telus Corp. But the two already tried this trick about year ago, alas, to no avail. Although, this time, Telus might be more interested, considering it too had to fend off a buyout offer or two since then.

Succumbing to KKR pressures and going private after decades of being a public company would be bad enough for BCE. But, a merger with Telus may also place BCE at a … Read More

Recycled Auto Parts Could Benefit More Than the Environment

By for Profit Confidential

If it’s one business I don’t understand it’s the auto parts business. When I go to my mechanic, he keeps the old parts that he replaced and sells them to a recycler. You might say that an automobile repair shop is at the forefront of recycling. Just about every used part or lubricant gets recycled in some fashion.

There are large companies out there that specialize in the collection of used auto parts (all parts from engine components to transmissions to rims), and they resell refurbished parts back to automobile repair shops or other end users.

This business has been around for quite a long time, but I’ve never really thought about until I came across a company called LKQ Corporation (NASDAQ/LKQX). This company considers itself to be one of the largest suppliers of recycled original equipment manufacturer (OEM) auto parts and assemblies. The company sells to thousands of collision-repair businesses, service shops and vehicle dealerships throughout the United States. The company has 50 locations with state-of-the-art vehicle procurement, dismantling, inventory, sales, and distribution services.

Business must be good in the used auto parts business because

LKQ Corporation has been quite successful on the stock market.

In the first quarter of 2006, the company generated record financial growth with revenues growing 44% to $192.1 million, up from revenues of $133.8 million in the first quarter of 2005. The company’s organic revenue growth for the quarter was 12.4%, while the rest was due to acquisitions.

Net income for the first quarter of 2006 also grew 44% to $12.1 million, up from net income of $8.4 million generated in the first quarter … Read More

I’m Not Surprised by This Blockbuster News

By for Profit Confidential

The news is out, and it is not good for Blockbuster Inc. (NYSE/BBI) — the nation’s biggest movie-rental chain. Facing stiff competition from on-line movie rental businesses and the rapidly growing trend of “Video on Demand,” Blockbuster has been scrambling to halt a decline in its business.

 But you shouldn’t be surprised. I’m not. I was just at my local Blockbuster outlet on Friday night (a typically busy time). To my amazement, the store was empty — no customers in sight. I asked the cashier behind the counter where everyone was, and she said the movie rental business was down dramatically. She even went as far as saying that she believes that the brick and mortar video rental business would be dead within five years. Now she may be exaggerating, but you really have to wonder if Blockbuster can survive simply as a pure play in video rentals.

 I personally see the trend for on-line movie rentals and Video on Demand only rising. I recently tried Video on Demand and can say it is an excellent alternative to renting your favorite movies. You don’t have to drive to the video store, and you can browse the shelves with a click of your remote.

 On Tuesday, Blockbuster confirmed its investors’ worst fears, releasing dismal Q2 results that reflected the company’s difficulties in trying to halt its declining business. The pitfall was the company’s new strategy of eliminating late fees, which, while great for movie renters, has been a drain on revenues. Blockbuster lost $57.2 million, or $0.31 per share, in the Q2, versus the prior year’s profit of $48.6 million, or … Read More

The Great Crash of 2014

A stock market crash bigger than what happened in 2008 and early 2009 is headed our way.

In fact, we are predicting this crash will be even more devastating than the 1929 crash…

…the ramifications of which will hit the economy and Americans deeper than anything we’ve ever seen.

Our 27-year-old research firm feels so strongly about this, we’ve just produced a video to warn investors called, “The Great Crash of 2014.”

In case you are not familiar with our research work on the stock market:

In late 2001, in the aftermath of 9/11, we told our clients to buy small-cap stocks. They rose about 100% after we made that call.

We were one of the first major advisors to turn bullish on gold.

Throughout 2002, we urged our readers to buy gold stocks; many of which doubled and even tripled in price.

In November of 2007, we started begging our customers to get out of the stock market. Shortly afterwards, it was widely recognized that October 2007 was the top for stocks.

We correctly predicted the crash in the stock market of 2008 and early 2009.

And in March of 2009, we started telling our readers to jump into small caps. The Russell 2000 gained about 175% from when we made that call in 2009 to today.

Many investors will find our next prediction hard to believe until they see all the proof we have to back it up.

Even if you don’t own stocks, what’s about to happen will affect you!

I urge you to be among the first to get our next major prediction.
See it here now in this just-released alarming video.

This is an entirely free service. No credit card required.

We hate spam as much as you do.
Check out our privacy policy.