Continue reading Stocks of Mortgage Insurers Rising

Stocks of Mortgage Insurers Rising originally appeared on BloggingStocks on Tue, 20 Jul 2010 14:30:00 EST. Please see our terms for use of feeds.

For the past several days, I've been giving tips about how to predict trends and ride them to profits. My last tip is that sometimes you can make money by taking a clear trend -- and then ignoring it and investing in a less trendy stock, or even a stock that seems to be losing out because of that same trend.

Pinnacle West (PNW): How the West will win originally appeared on BloggingStocks on Mon, 15 Oct 2007 13:00:00 EST. Please see our terms for use of feeds.

CNX GAS (CXG): This is the future -- a stock ready to rise originally appeared on BloggingStocks on Mon, 15 Oct 2007 08:30:00 EST. Please see our terms for use of feeds.

• First Solar Inc. (NASDAQ: FSLR), a Phoenix manufacturer of silicon-free solar-power modules. FSLR is significantly undervalued, by as much as $40 if you believe Bank of America.
• China Medical Technologies (NASDAQ: CMED), which develops cancer treatments in Beijing. CMED is expanding its operations into the rest of Asia, as well as into Russia and Europe.
• After stalling a bit last month, Google (NASDAQ: GOOG) is pushing higher again, bound for $600.
  

My new book, Ahead of the Curve, is hot off the presses. Here's an excerpt! You can also visit my AOL Coaches site.

StockWatch: Between the bells with business author Hilary Kramer originally appeared on BloggingStocks on Mon, 24 Sep 2007 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Book review: Invest like a Fox ... Not like a Hedgehog

Book review: Invest like a Fox ... Not like a Hedgehog originally appeared on BloggingStocks on Thu, 30 Aug 2007 08:30:00 EST. Please see our terms for use of feeds.

You really should watch Hilary Kramer: Market has further to fall, but there is opportunity in KDN, CBI, ACH to get some market perspective. The video was posted on August 21, 2007 and she makes some very good stock recommendations. Over the past 18 months that I have been looking at her picks versus those of James Cramer, I have found that you would have done better with Hilary.

While giving her full credit for her stock picking and market coverage I find I must strongly disagree with a statement she made. Cautioning viewers that " There is going to be a meltdown" is not overly alarming, but I take great exception to her stating that "This market can go down 25%." She shared her fear that there are 9000 hedge funds and that 3000 might close down.

It is possible that people may panic in certain circumstances and the market can stray into irrational short-term behavior once again, but I find her reasoning a little soft. Let's assume that the 9000 hedge funds own 50% of the total equity in the stock market (they don't) and one third go out of business, that would equate to a 15% collapse of value (unscientific, I know, but there is some correlation).

Continue reading Kramer said a possible 25% market collapse?

Kramer said a possible 25% market collapse? originally appeared on BloggingStocks on Fri, 24 Aug 2007 14:40:00 EST. Please see our terms for use of feeds.

The stock market has stabilized somewhat in recent days, but I still have a very pessimistic outlook for stocks, as I explain in this video. I think stocks could fall another 25%.

I am deeply worried about the financials, like mortgage company Countrywide Financial Corporation (NYSE: CFC) and high-end consumer stocks like Nordstrom, Inc. (NYSE: JWN).

Nonetheless, I think there are opportunities in some niche plays. I advise investors with cash to put in the market to take a look at electric utility Pinnacle West Capital Corporation (NYSE: PNW), ballbearing company Kaydon Corporation (NYSE: KDN), and bridge builder Chicago Bridge & Iron Company N.V (NYSE: CBI).

Internationally, I suggest looking to China plays like Aluminum Corp. of China Limited (ADR) (NYSE: ACH) and global environmental plays like Veolia Environment (ADR) (NYSE: VE). Finally, I offer a stock tip: Darling International Inc. (ASE: DAR) is a little-known environmental company which gets paid to collect waste like animal by-products and cooking grease and turns it into biodeisel which it then sells. Enjoy the video!

Hilary Kramer: Market has further to fall, but there is opportunity in KDN, CBI, ACH originally appeared on BloggingStocks on Tue, 21 Aug 2007 17:46:00 EST. Please see our terms for use of feeds.

Danaher Corp. (DHR): Makes everything and keeps growing originally appeared on BloggingStocks on Mon, 06 Aug 2007 08:30:00 EST. Please see our terms for use of feeds.

Continue reading Panera Bread Company: A temporary rut

Panera Bread Company: A temporary rut originally appeared on BloggingStocks on Fri, 27 Jul 2007 13:30:00 EST. Please see our terms for use of feeds.

For years, General Electric (NYSE: GE) has suffered from perceptions of mediocrity, and its stock price has stayed relatively flat. But its revenues and margins have been growing steadily, and its second-quarter results showed revenues up 12% over the second quarter of 2006, 8% of which came organically, and investors are paying attention again. The stock is now trading at a long-time high of $40, and a Goldman Sachs analyst report this week predicted the stock would reach as high as $45.

GE's success has resulted in large part from a continuing boom in global infrastructure needs, and all its divisions have been doing well of late except NBC and its health-care sector. The company has benefited from global trends, but CEO Jeffrey Immelt continues to make improvements, from investing in a major buyback program of $14 billion to getting out of the plastics business to, most recently, announcing GE would exit the subprime mortgage industry. GE's subprime division, WMC Mortgage, was a tiny part of the company, but Immelt was smart to avoid losing any more money, and to avoid the kind of negative publicity that has hit firms, like Bear Stearns, that are deeply involved in that failing industry.

Continue reading General Electric: Bringing good things back to life

General Electric: Bringing good things back to life originally appeared on BloggingStocks on Tue, 24 Jul 2007 08:00:00 EST. Please see our terms for use of feeds.

That is the question many investors and analysts are asking after Google Inc. (NASDAQ: GOOG) missed its second-quarter earnings estimates by a mere $0.03. Google's shares dropped 7% on the news, and of course the rumors started flying.

It seems to me the concern is misplaced. Google's sales came in at $3.87 billion, which is 58% higher than they were a year ago. The stock price is up 20% on the year. Profits may have been down a bit, but that's a natural result of the kind of growth that Google has been pursuing. This is a company that will continue to grow as online advertising revenues grow, through its acquisition of DoubleClick, and through the management's continuing efforts to find new markets. I believe its profits will return over the long term. The company clearly suffers from high expectations, and that, more than anything, drove the small panic over the earnings report. For many investors, the dip in the share price will be a way to get in at a 7% discount.

I'm not the only one who feels this way. Lehman Brothers issued a report on July 13 predicting the share price would hit $610 in the next year. The report based this, in part, on overly optimistic expectations for earnings for the second quarter, but the prediction did factor in the higher operating expenses that helped cause Google to miss its earnings forecast. In other words, this latest report from Google shouldn't have been the shock it was given that analysts knew some of the costs of growth would come home to roost in the short term.

Continue reading Google: To Worry or not to worry?

Google: To Worry or not to worry? originally appeared on BloggingStocks on Mon, 23 Jul 2007 15:15:00 EST. Please see our terms for use of feeds.

American Railcar Industries: Legislation will keep this train on track originally appeared on BloggingStocks on Wed, 28 Mar 2007 09:30:00 EST. Please see our terms for use of feeds.

Flamel Technologies SA (ADR)

Flamel Tech SA: Delivers the goods for Big Pharma originally appeared on BloggingStocks on Tue, 27 Mar 2007 09:30:00 EST. Please see our terms for use of feeds.

As you might have noticed, I have been focusing on Chinese companies over the past few days, seeking to highlight some sectors where the massive influx of tourism and business and money into China is having a positive effect.

What is more natural in a booming economy than advertising? As people's spending power increases, so too does the need for companies to market products for them to buy. And let's not forget: 2008 Olympics are being hosted in Beijing. This is going to bring a boost to the already growing arena of new media advertising.

Enter Focus Media Holding Limited (ADR) (NASDAQ:FMCN), China's largest publicly-traded advertising firm. This company specializes in "out-of-home advertising" -- in other words, it uses in-store, commercial location, outside light emitting diode (LED), and mobile handset networks to broadcast advertisements. In 2003, Focus Media went from being a traditional ad agency to focusing on the out-of-home market, and it was smart to jump into the game that early. After many acquisitions, it staked out the market terrain and are now the leader in the outdoor ad market, directly operating in 50 cities and indirectly in 36 more cities. It's flying along. Net income for 4th quarter 2006 was $30.1 million compared to the previous year's $9.4 million, and sales tripled to $68.3 million. This market is particularly important in China, where ads can capture bored people in long lines!

Continue reading Focus Media Holding Limited: Pitching products in the People's Republic

Focus Media Holding Limited: Pitching products in the People's Republic originally appeared on BloggingStocks on Thu, 22 Mar 2007 09:30:00 EST. Please see our terms for use of feeds.

It seems like yesterday that CMGI Inc. (NASDAQ:CMGI) was one of the hottest stocks to own. These were the Internet days -- now seven years ago. The stock prices of companies that were internet -based went to the moon and "incubator" companies that invested in internet companies went even farther into the galaxy. CMGI was one of those stocks. The good news is that CMGI stayed alive and looks like it may finally be ready for a comeback.

CMGI consists of two divisions. One is ModusLink which, according to the company's website, "provides industry-leading global supply chain management services and solutions that help businesses market, sell and distribute their products around the world." CMGI's other business, @Ventures, founded in 1995, focuses on identifying, financing and fostering new companies -- especially those engaged in developing cutting-edge technologies.

CMGI announced this week that it invested in an alternative energy company, Earthanol, Inc., which builds and operates waste-to-ethanol production plants. Earthanol's website explains that the "most logical feedstocks to turn to (to produce ethanol) are the millions of tons per year of waste residuals from agricultural, industrial, and urban activities. Earthanol believes that the conversion of these feedstocks through acid or enzymatic hydrolysis and thermal conversion/syngas catalysis is the next big wave in renewable fuels development."

Although @Ventures' total investment is only $2 million, the investment did catch the eye of Wall Street last Friday. The investment consortium was one area of interest to all who saw this press release. The team of investors also includes Nth Power, Sail Venture Partners, and Calvert Funds. The total investment is approximately $7 million.

More importantly, this is not the first investment in clean energies. In February, CMGI invested in "H2Oil," a Utah-based cleantech company that specializes in the "reclamation of valuable hydrocarbons and fresh water from oil and gas exploration and production processes." To me, this is an even more significant venture. I believe that the future, in the near term, for clean technologies and alternative energy will be finding ways to assist traditional fossil fuel production in a way that is cleaner and safer for the environment -- until the day comes when we rely only on renewable fuels from the sun and wind and our agricultural production. CMGI has also invested in solar. Last year, the company invested in Advent Solar, a solar operation that develops photovoltaic technology to convert sunlight into electricity. The company's solar cells are focused on cheaper technology to achieve the same effective result as the more expensive competitors.

Type of Company: A well-managed and tenacious publicly-traded company that has a portfolio of investments in start-up technologies (originally internet-focused, and now cleantech, alternative energy and diversified technologies) and another division which works to help businesses sell, market and deliver their products and services throughout the entire order-to-supply-to-delivery process.

Stock Price Target: Don't be surprised if this $1.70 stock more than doubles and hits $4 in the very near future. I have seen many companies enjoy a second life and this management team is smart and committed. The former CEO, David S. Wetherell, brought in a top notch team to rebuild the business and hit profitability and receive shareholder return by making the right investments at the right time.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com.

CMGI Inc.: A blast from the past originally appeared on BloggingStocks on Thu, 15 Mar 2007 09:30:00 EST. Please see our terms for use of feeds.

Overhill Farms, Inc.: Looking better with some extra weight originally appeared on BloggingStocks on Wed, 14 Mar 2007 14:25:00 EST. Please see our terms for use of feeds.

Continue reading Big Lots Inc.: All filled up

Big Lots Inc.: All filled up originally appeared on BloggingStocks on Tue, 13 Mar 2007 09:30:00 EST. Please see our terms for use of feeds.

Medivation: Moving on up...but on its own time originally appeared on BloggingStocks on Mon, 12 Mar 2007 09:30:00 EST. Please see our terms for use of feeds.

When Vonage Holdings Corp. (NYSE:VG) was started in 2000, it seemed an exciting new company: a way to use the internet to supply cheaper phone service with all kinds of neat possibilities, like linking your phone to your email account. The technology was rough in the beginning, with echoes and delays, but people felt there was real potential here. Vonage ultimately went public in May 2006 at a price of $17. By then the company had moved from a new, niche technology to a mainstream company.

Yet, the stock dropped immediately after the IPO and, as of this writing, hasn't even come close to recovering. The fact is, this stock is done and it wouldn't surprise me if Vonage went out of business.

Many Vonage investors are probably scratching their heads and wondering what happened. Demand is only increasing for internet phone, and many people think it's the way all phone calls will be made in the future. The problem is, by the time it went public, Vonage had far too much competition from other internet telephone services. Traditional phone companies like Verizon offer their own plans, as do cable companies like Time Warner. There are also many other smaller internet phone companies offering their own inexpensive plans, often as low as $19.95 per month.

It's not that Vonage has necessarily done anything wrong; while it's still operating at a loss, its revenues have been increasing at more than 10% every single quarter since the last quarter of 2004. The problem is that it's operating in a ruthlessly competitive market and it doesn't have the muscle to compete with companies like Verizon Communications (NYSE:VZ) and Time Warner Inc. (NYSE:TWX), especially since those companies already have reliable customers for their other services and can offer them deals for bundled services that are much more appealing than what Vonage has to offer.

To make matters worse, Vonage is now being sued by Verizon for allegedly infringing on Verizon's voiceover internet (VOIP) protocols! While I respect what this company tried to achieve, I'm sorry to say there's just no hope for this stock.

Type of stock: An exciting new company that blended telecom and the internet to offer a new type of phone service.

Price target: None. If you don't own this stock now, don't buy it. You might see it climb a dollar or two (it's currently just above $5), but you'd be better off taking the loss and trying to make up for it elsewhere. It is a possible acquisition candidate -- another company could certainly make use of Vonage's subscriber base -- but any acquisition price isn't likely to be much higher than the stock is now.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com.

Vonage Holdings Corporation: Time to hang up originally appeared on BloggingStocks on Mon, 05 Mar 2007 07:55:00 EST. Please see our terms for use of feeds.

JetBlue Airways: No pain, no gain? originally appeared on BloggingStocks on Wed, 28 Feb 2007 09:30:00 EST. Please see our terms for use of feeds.