On May 6, we saw the Dow plunge almost 1,000 points in a matter of minutes. To date, no one has pinpointed the cause of the crash.

Meanwhile the Securities and Exchange Commission (SEC) has been scrambling to plug the leak in the dike. An article in USA Today outlines the expanded SEC rules.

Continue reading More Stocks Are Covered by Circuit-Breaker Rule

More Stocks Are Covered by Circuit-Breaker Rule originally appeared on BloggingStocks on Sat, 11 Sep 2010 12:40:00 EST. Please see our terms for use of feeds.

If there ever was a company that could and should be bought out, it's WD-40 (WDFC). The company has been doing well in these tough times, and guidance is for more of the same.

Perhaps that is because almost every household in America probably has a can of WD-40 in the utility closet, garage or workroom in case they need to get out of a jam or just plain un-jam something. The aerosol in the blue and yellow can has been a reliable lubricant and rust preventative for decades. It is the primary revenue-generating product for the company, but it is not the only one.

Continue reading Chasing Value: WD-40 -- A Buyout Candidate?

Chasing Value: WD-40 -- A Buyout Candidate? originally appeared on BloggingStocks on Wed, 08 Sep 2010 09:30:00 EST. Please see our terms for use of feeds.

August is often a quiet month. Traders and brokers are on vacation, and the markets just seem to move slowly under the summer sun. Come September, everyone is back to work and the press for the final quarter is on. Market strategists and economists are putting together their projections and predictions. What can we look for this year?

Bloomberg News surveyed 12 firms for their opinions. They found that strategists have quite the bullish projections for the year end. Annual earnings increases were the fastest in 22 years, which will push the S&P 500 index by 20% in the second half.

Continue reading Where Is the Market Headed?

Where Is the Market Headed? originally appeared on BloggingStocks on Wed, 18 Aug 2010 09:45:00 EST. Please see our terms for use of feeds.

In its annual letter to shareholders, Berkshire Hathaway Inc. (BRK.A) reported net income of $8.1 billion and revenue of $112 billion for 2009. That's an improvement over the net income of $5.0 billion and revenue of $108 billion in 2008. However, net income in 2007 totaled $13.2 billion.

In dollar terms, the conglomerate's book value rose 19.8% last year to $21.8 billion, or $84,487 per share. That was the best gain since 2003, but trailed the S&P 500's return of 26.5% for the year.

Continue reading Berkshire Hathaway Annual Letter Offers Good News/Bad News

Berkshire Hathaway Annual Letter Offers Good News/Bad News originally appeared on BloggingStocks on Sun, 28 Feb 2010 14:10:00 EST. Please see our terms for use of feeds.

Looking back just a few weeks, the markets ushered in the new year with euphoria. Within a few short weeks, things have turned sour. The Dow dropped below the 10,000 mark last week. S&P 500 is down 7.3% from its 15-month closing peak.

Now the question facing investors and traders is whether the market is in a corrective phase. Eric Kuby of NorthStar Investment Management Group thinks so. "I'm in the camp that believes that we are in a correction," he said.

Continue reading Are U.S. Stocks in a Correction Phase?

Are U.S. Stocks in a Correction Phase? originally appeared on BloggingStocks on Sun, 07 Feb 2010 16:40:00 EST. Please see our terms for use of feeds.

A rally that began last year has already run up the prices of some stocks, creating small bubbles across the market. Some investors might be pushing prices higher ahead of their time for 62 of the stocks in the S&P 500 index. These companies now have P/E ratios of above 70, up from 23 a year ago. Says Robert Maltbie of Singular Research, "We have to temper some of this crazy bullishness." He tells USA Today that when P/E ratios approach 70, a stock can begin to have problems.

So, why are some prices being run up? As usual, any hope of rational price drivers is the domain of dreamers. Investors have found their favorites and sometimes haven't allowed reality to become a constraint on their excitement. Take a look at five reasons below:

Continue reading Five Reasons Mini-Bubbles Are Forming

Five Reasons Mini-Bubbles Are Forming originally appeared on BloggingStocks on Mon, 18 Jan 2010 12:00:00 EST. Please see our terms for use of feeds.

The private equity market was hit hard by the financial crisis last year, but it's already on the road to recovery, according to a new report by Preqin (pdf).

From the first quarter to the second, this year, increasing returns and valuations have given investors a reason to hope, even though the industry's average return is down 24.1% for the 12-month period ending June 30, 2009. The negative return still outpaced the S&P 500, MSCI Europe and MSCI Emerging Markets indexes, the alternative investment research firm says, which returned -26.2%, -34.1% and -27.8%, respectively -- and the 12-month average improved from -30% for the year-long period ending March 31, 2009.

Continue reading Private equity returns off 24% but still ahead of the broader market

Private equity returns off 24% but still ahead of the broader market originally appeared on BloggingStocks on Sat, 12 Dec 2009 13:20:00 EST. Please see our terms for use of feeds.

Congratulations, you're richer than you were last quarter! Has your standard of living changed much, or are you still playing it safe?

According to the Federal Reserve, our country's net worth rose 5% to $53.4 trillion in the third quarter, the second straight quarterly gain for the American wallet. Nonetheless, the result remains well behind the (revised) pre-recession high-water mark of $64.5 trillion. To reach this level, we'd need to see net worth surge 21%.

Continue reading Are you better off than you were 3 months ago? Fed says yes

Are you better off than you were 3 months ago? Fed says yes originally appeared on BloggingStocks on Fri, 11 Dec 2009 11:00:00 EST. Please see our terms for use of feeds.

One of the top performers in the U.S. growth fund sector has lost his appetite for tech. Jerry Jordan has booted almost all his Apple (AAPL) holdings from his portfolio, and he's done the same with Google (GOOG). Both, Jordan says, have become too expensive. In fact, he's getting out of almost all U.S. and European tech companies for that reason -- and is turning his attention to China.

Jordan tells Reuters, "The growth [in China] is much faster, it's much more of a green field opportunity."

Continue reading Top growth fund manager sours on Apple, U.S. tech

Top growth fund manager sours on Apple, U.S. tech originally appeared on BloggingStocks on Wed, 25 Nov 2009 09:30:00 EST. Please see our terms for use of feeds.

Equity markets ended the third quarter with their biggest losses in four months, and we're now staring down the closing months of 2009. Half the quarter, of course, is dominated by holiday sales, which ups the stakes at the finish line and sets the tone for the bulk of 2010.

Even though company performances have been fairly strong through this reporting season, it's tough to shake the nerves associated with depressed consumer spending and high unemployment.

Continue reading The 2009 home stretch could be bumpy for stocks

The 2009 home stretch could be bumpy for stocks originally appeared on BloggingStocks on Mon, 02 Nov 2009 10:20:00 EST. Please see our terms for use of feeds.

Economist and president of a research firm that bears his name, Andrew Smithers (not related to the Smithers of Mr. Burns fame) is saying our on-fire stock market is set to burn itself out. The S&P 500 Index is overvalued by 40%, he believes, and we can expect a plunge thanks to central bankers restraining themselves on the securities purchases that have pushed the markets up so far so fast. Also, banks are going to need to sell more shares to raise capital and pump up their balance sheets.

If the S&P 500 were to take a 40% dive today, it would fall to 647.76 (based on the Friday close), below the low it recorded in March.

Continue reading S&P overvalued by 40%, according to economist Smithers

S&P overvalued by 40%, according to economist Smithers originally appeared on BloggingStocks on Mon, 26 Oct 2009 09:00:00 EST. Please see our terms for use of feeds.

When gold miners and gun-toters lag the broader economy, it's usually a good sign that conditions are on the mend. Both sectors outperform when times were tough, but this year, their growth has slowed relative to the market has a whole.

The S&P 500 index has gained 57% since March 9, 2009, according to a USA Today report, while Barrick Gold (NYSE: ABX) and Newmont Mining (NYSE: NEM) are up 36% and 21%, respectively, for the same period. Smith & Wesson (NASDAQ: SWHC) is up 30%. Again, these are definitely respectable results, but they aren't keeping pace with the index.

Continue reading Guns and gold tell the story on the economy

Guns and gold tell the story on the economy originally appeared on BloggingStocks on Sun, 20 Sep 2009 11:40:00 EST. Please see our terms for use of feeds.

Europeans and Asians have positive views of President Barack Obama, according to the latest Quarterly Bloomberg Global Poll of investors and analysts. Americans, on the other hand, are split down the middle.

According to the study, 87% of respondents in Asia and Europe rate Obama favorably. In the United States, only 49% share this perspective -- a number that drops to around 25% when only his economic policies are considered. Much of this difference comes from an overseas distaste for the previous White House resident, but it seems people in this country are less interested in distinctions: 43% of respondents favored Bush's policies to Obama's (compared to 80% overseas).

Continue reading Bloomberg poll finds Obama popular with non-American investors

Bloomberg poll finds Obama popular with non-American investors originally appeared on BloggingStocks on Thu, 23 Jul 2009 12:00:00 EST. Please see our terms for use of feeds.

Quarterly earnings could be up year-over-year by the fourth quarter. A low threshold for improvement, as a result of last year's Q3 financial meltdown, could set the stage for the appearance of a recovery, but the ride from here to there will be a difficult one.

Data from Bloomberg and S&P suggests that profits for stocks comprising the S&P 500 Index may be down 21% next quarter. It's still a double-digit blow, but a better result than Q2's estimated 34% -- and far ahead of Q1's 60% year-over-year fall in profits. The driver of a recovery, however concealed by low expectations, is likely to be a combination of unemployment and consumer spending. Last month, we saw unemployment reach a 26-year high, putting obvious constraints on purchasing.

Continue reading Q2 to be tough on earnings, but some improvement

Q2 to be tough on earnings, but some improvement originally appeared on BloggingStocks on Mon, 06 Jul 2009 09:30:00 EST. Please see our terms for use of feeds.

When oil lost almost $3 a barrel, stock futures indicated a lower opening for today. Just shy of 5 AM, S&P 500, Down Jones, and Nasdaq 100 futures were all off 0.9%. The drop in oil to $64 a barrel has called into question any projections of a quick economic recovery -- as if high unemployment weren't enough. The Monday after any long weekend is hard, and this one's going to hurt.

The direction in which futures are pointing continues Thursday's equity declines in the United States, bringing the S&P 500 its third consecutive weekly loss. For the day, it lost 2.91%. The Dow Jones Industrial Average lost 2.63% of its value, with the Nasdaq Composite Index giving up 2.67%. Year-to-date, the DJIA is down 5.6%, the S&P 500 down 0.8%.

Continue reading Oil down, futures down following holiday weekend

Oil down, futures down following holiday weekend originally appeared on BloggingStocks on Mon, 06 Jul 2009 08:30:00 EST. Please see our terms for use of feeds.

Continue reading Today's technical outlook: How far can this rally go?

Today's technical outlook: How far can this rally go? originally appeared on BloggingStocks on Fri, 13 Mar 2009 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Today's technical outlook: Still looking for a signal

Today's technical outlook: Still looking for a signal originally appeared on BloggingStocks on Tue, 10 Mar 2009 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Today's technical outlook: Are rallies doomed to fail?

Today's technical outlook: Are rallies doomed to fail? originally appeared on BloggingStocks on Mon, 09 Mar 2009 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Today's technical outlook: Markets desperately seeking support

Today's technical outlook: Markets desperately seeking support originally appeared on BloggingStocks on Fri, 06 Mar 2009 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Today's technical outlook: No bottom in sight

Today's technical outlook: No bottom in sight originally appeared on BloggingStocks on Thu, 05 Mar 2009 09:30:00 EST. Please see our terms for use of feeds.