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Japan: Mizuho Financial Group (MFG)

This post is part of Japan: A Special Report for Investors.

"Tokyo-based Mizuho Financial Group (MFG) is Japan's second-largest bank in terms of total assets," notes Paul Tracy.

The editor of High Yield International suggests, "Banks are typically considered cheap when they trade at a discount to their underlying book value and Mizuho currently trades at just 0.7 times book.

"The past two decades have not been kind to the Japanese banking industry, though the leading financials have been restructuring successfully.

Continue reading Japan: Mizuho Financial Group (MFG)

Commodity 'Boom' Boosts Rio Tinto (RIO)

Rio Tinto logo"London-based Rio Tinto (RIO) is one of the largest and most diversified mining companies in the world; ith the potential to reward shareholders with increased dividends and share buybacks, Rio is a buy for investors seeking exposure to booming commodity markets," says Paul Tracy.

The editor of High Yield International explains, "Rio's operations are located in Australia, North and South America, South Africa, Europe and Indonesia. Its strategy is to concentrate on the development of large, high quality mineral deposits and become a low-cost producer for each commodity.

Continue reading Commodity 'Boom' Boosts Rio Tinto (RIO)

Coinstar (CSTR): Making Change from Coins to DVDs

Sitting in his college dorm, a student stared at his jar of coins, wondering what to do with them; two years later in 1991, Jens Molbak started a company that allowed customers to pour their change into a machine and getting dollars in return," notes Paul Tracy.

The editor of Street Authority Market Advisor adds, "Coinstar (CSTR) is now offering its products and services in more than 90,000 locations in more than 140 countries."

Continue reading Coinstar (CSTR): Making Change from Coins to DVDs

eBay (EBAY): Life after Skype

"In a move that has long been expected, eBay (NASDAQ: EBAY) is selling Skype," reports Paul Tracy. In his Street Authority Market Advisor he reviews the deal and his bullish outlook on eBay.

"According to terms of the deal, the internet-based phone service will fall under the ownership of a private syndicate for about $1.9 billion.

"Former CEO Meg Whitman orchestrated the acquisition of Skype back in 2005 as a means of communication between buyers and sellers. And the service has attracted hordes of subscribers in a short period of time.

Continue reading eBay (EBAY): Life after Skype

Charged up over MasterCard

"In this recession, consumers are spending less per purchase on their credit cards -- but that hasn't slowed down the credit card company MasterCard (NYSE: MA)," says Paul Tracy.

In his The StreetAuthority Market Advisor, he points out, "In the second quarter, MasterCard's net income grew by +26%, beating Wall Street's expectations by a significant margin." Here's his review.

"MasterCard makes its money from the fees it charges merchants and the banks that issue its cards. The issuing banks make money by charging consumers interest.

"And as we've seen, the banks can lose money when consumers default on their credit card debt. But MasterCard's fee-based business model has been relatively resilient during the downturn.

Continue reading Charged up over MasterCard

Coca-Cola (KO) targets China

"Not surprisingly, Coca-Cola (NYSE: KO) has been placing particular emphasis on China, where there is plenty of untapped potential," says Paul Tracy in his StreetAuthority Market Advisor.

"Like most companies that have been around for well over a century, Coca-Cola operates in a relatively mature industry.

"Domestically, per-capita soft-drink consumption has plateaued and domestic volume growth is generally tough to come by.

"The story is quite different for many overseas markets, which now account for about 75% of the firm's sales. Coke isn't the world's most recognized brand for nothing -- consumers in 200 countries around the globe gulp down about 1.6 billion servings of its beverages every single day.

Continue reading Coca-Cola (KO) targets China

Take a trip with Expedia (EXPE)

"Expedia (NASDAQ: EXPE) has taken flight over the past two months, soaring more than 165% off their early-March low," says Paul Tracy.

The editor of Street Authority Market Advisor explains, "Despite a sharp slowdown in leisure and business travel, overall travel volume booked through Expedia's sites (which include Hotels.com and Hotwire.com) remains impressive.

"Over the past three months, Expedia's travel sites have booked $5.2 billion (retail value) worth of travel expenditures. That gross booking figure is down about 11% over last year, but represents a considerable 30% improvement over the prior quarter.

Continue reading Take a trip with Expedia (EXPE)

China online gaming: Another vote for Shanda (SNDA)

This post is part of a featured report on stocks in the Chinese online gaming sector.

"China's online gaming market is slated to surge," says Andy Obermueller, an analyst with Street Authority's newly-launched advisory service, Government-Driven Investing.

"In China, internet users understand and embrace the 'come, stay, pay' model; that's where a site allows users to access a few things for free, but they have to pony up for the good stuff.

"This works particularly well with games. One of the leaders in this space is Shanda Interactive Entertainment (NASDAQ: SNDA). Gamers at its site use prepaid cards -- available at more than 320,000 vendors -- to add money to player accounts that can be used to access all of the features of its games.

Continue reading China online gaming: Another vote for Shanda (SNDA)

Go for growth with Google (GOOG)

"Google (NASDAQ: GOOG) remains the dominant search engine on the web," notes Paul Tracy. In his StreetAuthority Market Advisor, he views the stock as a solid buy for growth investors.

"In economic downturns, one of the first costs most companies cut is advertising. Not surprisingly, over the past year, most companies have slashed their advertising budgets in response to the severe economic downturn.

"But online ad spending has remained remarkably resilient. GOOG's system targets specific ads based on what users type into their search box, geographic location and other factors.

Continue reading Go for growth with Google (GOOG)

Investing with the stars: Top stocks from top managers

"Golf has Tiger Woods, novelists have Tom Clancy, and the investment community has stars such as Bruce Berkowitz, Bill Nygren, Charlie Dreifus, and Mario Gabelli," states Paul Tracy.

In his The Street Authority Market Advisor, he suggests, "These money managers are at the pinnacle of their craft." Here, he takes a look at these "celebrities" and some of their current top stock holdings.

"These money managers have all amassed prodigious gains over the years for their shareholders. Over the past few months, these gurus have come out with ringing endorsements for certain stocks. This isn't empty talk -- they are putting their money where their mouth is.

Continue reading Investing with the stars: Top stocks from top managers

Berkshire Hathaway (BRK.B): Buffett is still a good bet

"Though the past year has been tough for Warren Buffett, we still like Berkshire Hathaway (NYSE: BRK.B), which we believe is well-positioned for the year ahead," says Paul Tracy.

In his StreetAuthority Market Advisor, he looks at the holding company which is a position in his "undervalued gems" model portfolio. Here's his review.

"For only the second time in the investment-based company's 44 years, Buffett saw the book value of Berkshire drop. Of course his book value decline of 9.6% should be put in context with the 37% loss incurred by the S&P 500.

Continue reading Berkshire Hathaway (BRK.B): Buffett is still a good bet

Top Stock Picks '09: ProShares Ultra Oil & Gas (DIG)

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"ProShares Ultra Oil and Gas (NYSE: DIG), my top idea for 2009, is an exchange-traded fund that positions itself with the performance of the United States' top oil and gas companies," says growth stock specialist Paul Tracy.

In his StreetAuthority Market Advisor, he explains, "The 'ultra' part of its name means that the fund uses leverage, which magnifies returns by a factor of two relative to the Dow Jones U.S. Oil & Gas Index."

The advisor continues, "DIG is a leveraged ETF. In short, for every 1% the U.S. Oil & Gas Index rises, DIG should rise 2%. That means the performance of DIG is dictated by the moves of the largest industry heavyweights like ExxonMobil, ConocoPhillips, and Chevron.

"In addition to integrated oil companies, DIG is also exposed to major oilfield service companies like Schlumberger and Halliburton and gas-industry leaders like Apache.

"The world simply cannot, in its current form, live without fossil fuels. Global demand for petroleum is roughly 85 million barrels of oil a day, which means the activity in the oilfields simply never stops.

Continue reading Top Stock Picks '09: ProShares Ultra Oil & Gas (DIG)

Global gains in water sector

"Mountains of money are about to be spent on the water industry," says exchange-traded fund expert Paul Tracy.

In his The ETF Authority, the advisor adds, "All things considered, my favorite way to invest in the water sector is through the PowerShares Global Water Portfolio (AMEX: PIO)."

"PIO tracks a benchmark that has delivered the strongest gains in the group by a comfortable margin.

"For the last five years, through the end of last quarter, the Palisades Global Water Index has posted annualized returns of 24.9%, for a cumulative gain of 204% -- versus just 44% for the S&P 500. In other words, a $10,000 investment made in 2003 would be worth more than $30,000 today.

"Yet, the portfolio is still the most attractively valued -- the average holding is trading at just 2.5 times book value and 13 times earnings.

"Shareholders in the ETF will have a stake in companies like Veolia Environment, the world's leading provider of water and wastewater treatment.

"Other top holdings include Kurita, which supplies ultra-pure water for semiconductor manufacturing and makes reverse osmosis seawater desalination systems for remote islands; and Hyflux, a leading maker of water recycling technology used in Singapore and China.

Continue reading Global gains in water sector

Powering gains with Market Vectors Global Nuclear (NLR)

"Market Vectors Global Nuclear (ASE: NLR) offers investors a well-diversified play on the booming nuclear power industry," notes Paul Tracy.

The editor of The ETF Investor -- a top notch service that offers in-depth analysis of exchange-traded funds -- turns its analysis towards the outlook for the nuclear power sector.

"The ETF is designed to track the performance of companies that derive at least half their total revenues from the nuclear power business. That list includes firms that build nuclear power plants, mine uranium, and generate electricity in nuclear plants.

"Demand for electricity is surging globally, with most of that growth coming from fast-growing emerging markets like China and India. In fact, according to the Department of Energy, Chinese and Indian power demand is expected to nearly triple between now and 2030.

"These nations (and many others) are choosing to expand their nuclear power plant capacity to meet some of that demand. China has been aggressively opening new plants in recent years and has plans to open dozens more in an effort to triple nuclear's share of Chinese electricity supply by 2030.

Continue reading Powering gains with Market Vectors Global Nuclear (NLR)

Under Armour (UA) and VMware (VMW): Short squeeze candidates?

"Under Armour (NYSE: UA) and VMware (NYSE: VMW) both have the potential for a short squeeze in coming months," says Paul Tracy in StreetAuthority Market Advisor.

"VMware is a market leader in software virtualization. Companies typically do not use the full computing power of their servers, and when not in use, that server sits idle.

"Virtualization technology allows IT managers to use that underutilized capacity -- running software across the organization's entire base of servers. Thus, virtualization is a key cost-cutting technology.

"VMware has a short interest ratio of 11.7 and a freely traded float of just 50 million shares. If all those shorts try to cover, the stock looks likely to be in short supply. Meanwhile, trading at 36 times 2009 earnings estimates with a long-term growth rate of 45%, VMW doesn't look overpriced.

"Under Armour (NYSE: UA) makes clothing (along with sports equipment) targeting the athletic and outdoor-oriented market. Specifically, the company makes clothes designed to wick moisture away from the skin and keep the wearer at a comfortable temperature, regardless of weather conditions.

"Meanwhile, the stock has seen strong earnings growth despite the slowdown in consumer spending -- earnings surged 42% in the fourth quarter. And management recently announced its looking for revenues to reach $765-775 million in 2008, representing around a 27% increase over 2007 levels.

"With a forward P/E of 23 and a long-term growth rate of 25%, UA looks inexpensive. With a float of less than 32 million shares and a short interest ratio approaching 12, Under Armour looks like a prime short-squeeze candidate."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

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Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 11, 2012: 01:06 PM

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