Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
|
|
|
| Blue-Chip
Stocks Should Outperform in Today's Volatile Market |
Published: July 10, 2006
One of the best ways to
position your assets in a volatile market is to anchor your portfolio
with the safest stocks the market has to offer -- dividend-paying
blue-chips. There are many
reasons to seek shelter in these safe havens when times get tough:
- During volatile market
periods, investors typically seek shelter in blue-chip stocks. As
money rotates out of riskier asset classes and flows into large-cap
value stocks, this gives a boost to blue-chip share prices.
- Blue-chip companies know how
to batten down the hatches when times get tough. These are
established leaders with the financial strength and stability to
weather any major downturns.
- Many blue-chip firms also
pay sizable dividends, putting extra cash in your account at a time
when you need it most.
- If a dividend-paying stock
does pull back temporarily, then by reinvesting those dividends, you
can buy more shares at lower prices. Not only will this reduce your
cost basis, but it will also magnify your returns whenever the stock
finally recovers.
- Dividend payers are commonly
undervalued, and thus are often spared the brunt of any bear market
selling.
With these factors in mind, we
recently searched for large-cap value stocks that are likely to swim
when others around them begin to sink. To narrow the pool of candidates,
we only considered companies that earned high marks in each of the
following five categories:
- Proven Bear Market
Performance -- By investing in firms that held steady (or even
gained ground) during the last bear market, we can put ourselves in
a much better position weather the next downturn.
- Rising Dividends --
When stocks are tumbling, quarterly dividend payments can help
cushion the fall. Companies that have reliably increased their
payouts in both good times and bad are also much more likely to
deliver steady returns in the future.
- Valuation -- Stocks
that are trading well above their fair value usually get punished in
a down market. On the other hand, those that are undervalued often
hold up relatively well.
- Profit Margins --
Earnings are essentially a function of two things: sales and
margins. In an economic slump, flagging revenues may be inevitable,
making margins the last line of defense. All things being equal, a
company with higher margins will be better equipped to handle a
market downturn.
- Balance Sheet --
Companies saddled with mountains of debt and weak interest coverage
have dug themselves into a hole and may have trouble meeting their
obligations when times get tough. Therefore, we generally avoid
excessively leveraged firms.
Based on these stringent
requirements, we found approximately fifty blue-chip companies that
should continue to perform well in today's volatile market. Of those, we
would feel particularly comfortable owning any of the following four
stalwarts . . .
Important Note: Throughout the
remainder of this article, editors Nathan Slaughter and Paul Tracy
provide an in-depth look at four high-quality blue-chip stocks that meet
all of the stringent investment criteria outlined above. However, in
order to view the remainder of this article, you'll need to subscribe to
our value investing newsletter -- Half-Priced Stocks. After
you subscribe you'll receive immediate access to this full article, as
well as our monthly Half-Priced Stocks newsletter and a
host of additional premium content. Please visit one of the following
links to continue . . .
Note:
The above article was merely a small excerpt from
a recent issue of our premium value investing newsletter -- Half-Priced
Stocks. The mission of Half-Priced Stocks is to
help our readers identify securities that are trading at a steep
discount to their intrinsic net worth. In some cases this
discount can reach up to 50% or more, giving savvy value
investors the chance to purchase quality stocks for just pennies
on the dollar. To learn more about our Half-Priced Stocks
service, please visit the following link:
https://www.StreetAuthority.com/subscribe-hps.asp |
Thanks for reading!
|
Nathan Slaughter
Editor
Half-Priced Stocks, The ETF Authority
|
| To receive
in-depth guidance on today's leading value opportunities, plus educational guidance, please subscribe to
Nathan Slaughter's premium value investing newsletter --
Half-Priced
Stocks |
|
|
|
Investing Doesn't Get Any Easier Than This |
Stock picker Amy
Calistri's strategy is as simple as investing gets -- just one idea
a month designed to make money in today's market. Invest this way
and you don't have to worry about oil prices, automaker bailouts, or
what the Fed is up to -- because every "bad" economic development
actually helps some investment or another.Your investing life can
get a lot simpler -- starting today.
Go here to learn about Amy's simple investing strategy.
|
|
|
