stock market

Zoe’s: The Hot Restaurant IPO Investors Should Be Following

By Monday, November 24, 2014

Hot Restaurant IPO Investors Should Be FollowingIf there is one group of stocks that always seems to pay at the speculative end of the market, it’s restaurant stocks. And one company aggressive investors really need to have on their radar now is Zoe’s Kitchen, Inc. (ZOES).

Everything is a cycle, of course, but many money managers have sung the praises of this specific sector for years. Peter Lynch, the former manager of Fidelity’s Magellan Fund, invested … Read More

Japan Slides Into Recession Again; U.S. Next?

By Friday, November 21, 2014

Japan Slides Into Recession Again; U.S. NextIn the third quarter of 2014, the Japanese economy, the third biggest in the world, fell back into a recession. The country’s gross domestic product (GDP), quarter-over-quarter, declined 0.4% in the third quarter after it declined 1.9% in the second quarter of 2014. The annual GDP growth rate for the Japanese economy now stands at negative (-)1.6%. (Source: Japan Cabinet Office, November 17, 2014.)

At an annual rate of -1.6% … Read More

Bull Market to Continue on Near-Term Price Strength

By Friday, November 21, 2014

Bull Market to Continue on Near-Term Price StrengthThere is plenty of price strength in this bull market. It’s still coming from transportation stocks and dividend-paying blue chips.

There’s also been continued price strength among home improvement retailers. Lowes Companies, Inc. (LOW) recently soared on the stock market after beating Wall Street consensus with its latest earnings report. The stock has been on a tear over the last couple of years, just like The Home Depot, Inc. (HD)…. Read More

NASDAQ 5,000 Just Around the Corner

By Friday, November 21, 2014

NASDAQ Index to Hit 5000Thinking back to early 2000, I thought the NASDAQ stock market would eventually trade at 5,000, but I wasn’t sure about how long it would take. Well, now it looks like the answer at the time would have been around 15 years.

After a decent run this year, the NASDAQ stock market is trading within 300 points, or 6.2%, of the magical 5,000-point level. The index is leading the broader … Read More

Microsoft Expecting Its Strongest Quarter

By Wednesday, November 19, 2014

Microsoft Expecting Its Strongest QuarterOne company that is consistently seeing its earnings estimates tick higher is Microsoft Corporation (MSFT). The stock has basically doubled since the stock market breakout at the beginning of 2013, and the company has been increasing its dividends significantly.

Microsoft’s current quarterly dividend, payable in early December, is $0.31 a share, representing an 11% gain over the previous quarterly dividend.

The company’s revenues still have a lot of momentum. In … Read More

Two Major Concerns About Overvalued Stock Market Prices

By Monday, November 17, 2014

Stock Market 60 OvervaluedThe amount of money investors are borrowing to buy stocks is skyrocketing.

In September of this year, margin debt on the New York Stock Exchange (NYSE) stood at $483.87 billion—a new record-high. When the stock market was forming a top in 2007, margin debt was at a “then” record-high of $329.51 billion. Margin debt on the NYSE is now 47% higher than just before the previous big market sell-off. (Source: … Read More

Airgas: One Company with Strong Potential for Stock Market Investors

By Monday, November 17, 2014

Airgas for Reasonable, Consistent GrowthIncome-seeking investors, who are typically more likely to be risk-averse, are now having difficulty finding value in a stock market that’s gone up tremendously.

The huge reduction in the spot price of oil has certainly offered up more value than when the price was steadily around $100.00 a barrel.

Although not cheap by any means, I like Kinder Morgan, Inc. (KMI), which is in the process of acquiring its limited … Read More

Railroad Stocks the Best Market Predictor for Investors?

By Friday, November 14, 2014

Railroad Stocks the Best Market Predictor for InvestorsIt really is a great time to be in the railroad business. Cash flow is abundant and these stocks are poised for more capital gains.

While coal shipments have been a weak spot for railroad companies, virtually all other major customer sectors are producing excellent comparable growth.

And that growth is directly reflected in share prices. Railroad stocks have been—and continue to be—on a tear.

When the broader market corrected … Read More

Low Oil and Copper Prices Tell Us Stock Market in Trouble

By Wednesday, November 12, 2014

Dangers of Low Oil and Copper PricesTo see where the global economy is headed, I follow the prices of oil and copper. The prices of these commodities tell us about demand in the global economy. If the prices of oil and copper are rising, it means there’s prosperity. If the opposite occurs, it means industry (factories) is not busy and that a global economic slowdown is not far away.

With this in mind, below is the … Read More

Six Mature Companies with Earnings Momentum into 2015

By Wednesday, November 12, 2014

Earnings Momentum into 2015Large-cap earnings were pretty good this quarter, just like they were in the second quarter of this year.

The Walt Disney Company (DIS) was one of them. Notable in the company’s solid fiscal fourth-quarter and year-end results was its huge jump in profitability.

While total fiscal 2014 sales grew eight percent to a record $48.8 billion, earnings grew a whopping 22% to a record $7.5 billion on the back of … Read More