2006 Article Archive
December 2006
Carrying
MasterCard Could be Good for Your Portfolio
As an
investment, MasterCard (NYSE: MA) has it all -- strong growth trends, wide
economic moats, and even a presence in China. This stock may be just the fit for
your portfolio.
Consumer
Staples: Steady Growth Does Not Mean Boring Returns
But don't be tempted to simply generalize consumer staples as a slow-growing,
defensive group to hide in when the market is going down. While there are
certainly companies that fit the bill, there are also a handful of standouts
with a track record of growing faster than their industry, developing innovative
high-growth products, and expanding into new markets.
November 2006
A Different
Way to Profit from the Healthcare Industry
When it comes to investing in the
healthcare industry, most investors think of pharmaceutical and biotech stocks.
Although these firms play an important role, modern healthcare is a complex
business that also involves an array of supplies and services. Companies that
specialize in this aspect of the industry can offer stable revenues and little
risk, yet still offer exposure to a lucrative field.
Recent IPOs
With Strong Growth and Profitability
Newly-formed businesses generally have the greatest potential to expand and grow
-- such firms have only just begun to probe their potential market. As a result,
most successful companies deliver the strongest growth in their early years of
existence. Our list of promising IPOs gives you several young companies that
should soon see explosive growth in the coming years.
October 2006
Starbucks
(SBUX) Plans Store Growth of Nearly +250%
Starbucks newest long-term target is to open 40,000 stores worldwide. With only
12,000 current locations, SBUX is far from saturating the market.
A
Lesson Every Investor Should Know
Building an efficient portfolio is much more of a qualitative challenge than a
quantitative one. Some investors might be well-positioned with less than twenty
stocks, while others could hold over a hundred and still be susceptible to
extreme volatility. To maximize one's risk/reward profile, an investor needs
exposure to a broad cross-section of different industries and asset classes.
Increased
Trade Means Increased Profits
Los Angeles is best known as the center of the global entertainment industry.
And certainly, Hollywood's film industry is a global behemoth. But the Southern
California city is also host to a lower-profile industry that carries arguably
even more importance for the U.S. economy.
The
Pantry (PTRY) Has Some Juice
There are few industries as fragmented as the convenience store market. The
National Association of Convenience Stores estimates that there are 140,655 such
stores in the U.S., delivering total annual sales of just under $500 billion.
Many of these are one-off locations and there are very few large, multi-state
chains. The Pantry is aiming to change that.
September 2006
Orleans
Homebuilders (OHB) and Other Housing Stocks Continue to Sink
Like most homebuilders, Orleans Homebuilders (OHB) has been hit hard over
the past few months. A few months ago, most investors seemed willing to believe
the real estate market would slow in an orderly fashion; recently, some pundits
have been calling for an outright collapse and bust. Extremes of sentiment such
as this often provide investors with excellent buying opportunities
The
Importance of Investing in Shareholder-Friendly Companies
Poor accounting and financial transparency can be devastating for
shareholders. For example, Enron went bankrupt after revealing more than a
billion dollars in losses held in off-balance sheet financing vehicles.
Fortunately, the concept of corporate stewardship cuts both ways -- companies
with a history of aligning their interests with those of shareholders routinely
outperform their peers.
A Closer
Look at the Satellite Radio Industry
2001 marked the first year commercial satellite radio broadcasts became
available in the U.S. At the end of last year, less than five years after that
first broadcast, there were already nearly 12 million satellite radio
subscribers in the U.S. alone. And satellite radio has already been introduced
in Canada -- Europe and Asia aren't far behind. But this is only the beginning .
. .
August 2006
Activision
(ATVI) and Other Video Game Makers Look Poised to Rebound Ahead of New Console
Releases
Shares of video game publisher Activision have surged +15% over the past
month, helped by a solid quarterly earnings release and concrete signs of a
re-acceleration of growth for the gaming industry.
Companies
with Tremendous Market Share Potential
When a company operates in a highly fragmented industry with hundreds of
small competitors, the firm can grow at a tremendous clip by simply taking
market share away from the competition.
July 2006
Shares
of Wrigley (WWY) Look Like a Bargain
Given the turbulent state of
the markets, we have advocated defensive, blue-chip stocks numerous times over
the past several months. One in particular that has caught our eye recently is Wrigley
(WWY, $43.57) -- a proven leader that hasn't missed an annual dividend payment
in nearly a century.
How
to Capitalize on the Booming Market for Ethanol and other Alternative Fuels
As the price of gasoline goes
higher, so too does the incentive to use alternative fuels. As such, ethanol
plays have been booming as investors look toward the high-growth industry. We'll
show you how to gain profits from this attractive corner of the market.
June 2006
Searching
for Buffett-Like Stocks
Given his extensive track
record of above-average investing performance, it's not surprising then that
millions of investors around the world attempt to mimic Buffett's unique
value-oriented approach. My staff and I ran a search for firms that meet many of
Warren Buffett's stringent investment requirements. We recently searched through
our universe of nearly 10,000 stocks to find companies that Buffett himself
would be proud of.
Capitalize
on Booming Growth in the Outdoor Advertising Industry
Billboards are ubiquitous in the U.S., located adjacent to highways, on bus
stops or attached to the sides of buildings in major cities. In fact, in 2005
alone, advertisers spent more than $6.3 billion on outdoor advertising. And
outdoor ad spending has been growing steadily over the past 35 years.
Industry
Profile: Grocery Retailers
Grocery retailers enjoy the safety of being in a very defensive industry. No
matter how bad the economy gets, it is unlikely that people will stop shopping
for the basic necessities these stores offer. This article take a closer look at
the major players in this industry and a new niche in the market that it growing
rapidly.
May 2006
U.S.
Market Looks Ready for a Pullback
The U.S. markets have performed
extremely well in recent years, with the S&P 500 and the Nasdaq soaring
+59.9% and +73.8%, respectively, off their March 2003 lows. However, at this
point I believe the overall market could be due for an extended period of
sideways or declining trading action.
The
Importance of Share Buybacks
Corporate managers are charged with a straightforward task: to enhance
shareholder value. In many cases, creating value means introducing a new product
or taking steps to cut costs and overhead -- complex steps that can take years
to implement. But there's another more direct way to boost shareholder value --
a method that's been used consistently by America's most successful companies
for decades. Investors who understand this secret value-generation formula can
quickly and easily identify companies with the capability to generate impressive
long-term returns.
Industry
Overview -- Gambling/Hotel Casinos
Occasionally, Lady Luck decides
to smile on casino players, allowing high-fives around the blackjack table, or
screams of joy from a fortunate slot player. At the end of the day, though, the
vast majority of the chips always manage to find their way back to the house's
side of the table. Rather than fighting the casino at its own game, we believe
investors should harness the power of its immutable mathematical advantage
within their own portfolios.
April 2006
The
Growing Importance of Institutional Ownership
It's extremely important for small investors to take the flow of institutional
funds into account when making investment decisions. Institutions control vast
investment dollars and the actions of institutional players can have a profound
effect on a stock's price.
More
Profitable Than Microsoft
While Microsoft is a truly iconic success story and its dominance is rare,
it’s not unique. A small cadre of companies -- most of which operate under the
radar screen of most investors -- actually enjoy many of the same advantages
that Microsoft has benefited from over the past two decades.
March 2006
Fifth
Third Bancorp (FITB) Looks like a Bargain
When searching for undervalued stocks, my staff and I are always on the lookout
for solid companies that are suffering from temporary concerns. In the short
term, the shares of such firms can get weighed down by negative investor
sentiment. However, patient investors will eventually be rewarded when those
near-term problems get resolved. One company that fits this description well is
Fifth Third Bancorp (FITB).
Searching
for Value in Online Travel Stocks
Convenient and cost-effective, it should come as little surprise that the online
travel industry has been on a tear in recent years. According to Internet
research firm Jupiter Research, online travel sales will account for around 25%
of all bookings in 2006 -- up from less than 15% just three years ago. Finding
an undervalued stock in this high-growth industry could yield significant gains
for investors.
February 2006
Top
Investing Ideas for 2006 From Some of Today's Leading Financial Analysts
During a meeting with Steven Halpern, the editor of The Money Show
Digest, he reminded me of his annual Top Picks report -- a special
research brief that he has published every January for the last 23 years.
Each year he asks a select group of the nation's leading advisors to select a
favorite stock or two for the year ahead, and he then compiles all of those
profiles into his Top Picks report. Here is how you can get your copy...
Highlights
from My Presentations at The World Money Show
I'd like to thank all of the
many subscribers who attended my various presentations at this year's World
Money Show. In case you missed it, here you'll find copies of the PowerPoint
slides I used for both of my speeches at this important investing conference.
The
Importance of Dividends
In today's fast-paced investing world, speculators often look to make a quick
fortune on "the next Microsoft" or some other fast-growing company
that operates in an exciting new industry. However, it would be shortsighted to
focus entirely on volatile, unproven firms, while overlooking the numerous
benefits offered by well-established, dividend-paying companies.
January 2006
Industry
Spotlight: For-Profit Education
Students aren't the only ones able to profit from a good education -- publicly
traded for-profit universities in the U.S. also offer investors a golden
opportunity to cash in on this trend. Thanks to steady growth in admissions and
unusually high profit margins, for-profit education providers have delivered
exceptional revenue and earnings growth over the past several years.
First
American (FAF) Still Looks Like a Bargain
Shares of First American Financial (FAF) have now gained more than +70% since I
recommended the stock to my Market
Advisor premium newsletter subscribers just a year-and-a-half ago. But
with a likely slowdown looming for the mortgage market, company earnings are
expected to decline this year, leading some investors to wonder whether they
should take profits on the stock. I'd suggest holding on.
Six
Flags Skyrockets +40% In One Short Month
It has been an exhilarating
ride for shareholders of amusement park operator Six Flags (PKS) over the last
few weeks. Under new leadership, the company's goal is to adopt a more
family-oriented approach and to better leverage its valuable rights to Time
Warner's (TWX) popular Looney Tunes characters. Evidently, investors approve of
this move.
Investing
in the Slot Machine Industry
The slot machine industry is relatively concentrated in the hands of a few
well-established players. In this article, I offer a list of the key
players in the industry. And I'll highlight two of my favorite plays on the
booming slot machine business.
Paul Tracy founded
StreetAuthority and became Chief Investment Strategist in 2001. Prior to that he spent
several years as Managing Editor at a multi-million dollar financial publishing
firm with over 150,000 subscribers. In addition to his role as managing editor
and lead financial writer, he was also responsible for equity research and
managing a team of seasoned professional financial writers, researchers and
market commentators.
Paul's previous experience includes
a position at Robert W. Baird & Co.'s full-service brokerage operations as
well as economic research work on a Money and Banking project funded by the
National Bureau of Economic Research. He has also spent time doing outside
consulting and research for the University of Virginia, has appeared as a guest
expert on several prominent financial radio shows, and has been a featured
speaker at various investment conferences across the U.S.
Paul graduated with a B.S. in
Finance and Management from the McIntire School of Commerce at the University of
Virginia.
