Twitter’s Plunge Could Be a Trading Opportunity

Twitter (NYSE: TWTR) has a market cap of more than $22 billion and is an important company. As one commentator recently noted, “Twitter makes and breaks careers. It makes and breaks lives. Perhaps most saliently, the platform shapes news cycles, which, in turn, shape how people see the world. Because journalists spend disproportionate time on the website relative to most of their audience, outlets increasingly amplify Twitter’s viral stories, and seemingly without questioning their broader relevance. It’s a pattern that distorts perception on both sides of the political spectrum, and everyw...
More

Buy Now, Get More than You Paid In Later (Year After Year)

There’s an ancient Chinese saying: The best time to plant a tree was 20 years ago. The second best time is now. It may seem like stocks go nowhere for long periods at a time. But many companies can use those periods to continue growing their dividends for shareholders. When that happens, buyers see the amount of cash they get rise every year. Over a long enough timeline, they could even see dividends rise to a point where they get more cash payouts every year than what they originally paid. This secret is a simple math equation known as the “yield on cost.” It involves the current...
More

FAANG Earnings: Bullish for Investors?

FAANG stocks have been the market leaders. This is the group of tech stocks that includes Facebook, Amazon, Apple, Netflix and Alphabet (parent company of Google). Recently, several of the companies released earnings and their results could have a significant impact on the short term trend of the stock market. Facebook Facebook (Nasdaq: FB) beat expectations. CNBC reported: “Here’s how the company did compared with what Wall Street predicted: Earnings: $2.38 per share, vs. $2.19 forecast by Refinitiv consensus estimates Revenue: $16.91 billion, vs. $16.39 billion forecast by Refin...
More

Buying is Only Half of Investing

Most investment research is based on one thing, and one thing only: Finding the best opportunities to buy. There’s nothing wrong with that. It’s a good thing in and of itself. After all, if you don’t make a good buy in the markets, you’re pretty much guaranteed to lose money. But what happens when things go well? That’s where the trouble starts. That’s because most investment research doesn’t tell you anything about when to sell a position you hold—whether it’s gone up or down. Many investors use rules like stop-loss orders. But that also causes them to lose their shares whi...
More

Starbucks Could Deliver Gains With Limited Risk To Investors

Starbucks is an $80 billion company and has grown steadily over the years. It’s five year average growth in sales is 10.7% while the one year growth is reported at 10.4%. The consistency could make the stock attractive to investors. But, as always, the latest report can confirm or change opinions about a stock. The latest report from Starbucks seems to be bullish. CNBC reported, “shares of Starbucks rose … after the company reported better than expected sales and earnings growth … with customers spending more on their lattes and Frappuccinos." This move pushed the stock back towar...
More

The Crown Jewels in the Stock Market Kingdom

Companies come and go. The last component of the original Dow Jones Index, General Electric, got booted last year. But you could have been out of that name for far longer if you had followed a simple rule: Only invest in companies that deliver increasing income to shareholders every year by increasing their dividend. Following that rule would have gotten you out of a lot of stocks before they really took a dive—and kept you in some of the best wealth-building stocks of all time. In the end, researching the market for stocks that deliver great returns to investors over time will of...
More

The Truth About Facebook

Facebook (Nasdaq: FB) is a company that grew into a market leader by creating a market. In 2010, the company was so well respected that a movie covered the company’s story. In “The Social Network,” viewers learned that “in 2003, Harvard undergrad and computer genius Mark Zuckerberg (Jesse Eisenberg) begins work on a new concept that eventually turns into the global social network known as Facebook. Six years later, he is one of the youngest billionaires ever, but Zuckerberg finds that his unprecedented success leads to both personal and legal complications when he ends up on the receivin...
More

The One Surefire Way to Retire Rich

Imagine you had a penny that doubled in value every day for a month. Sure, after a week, you’d only have a paltry sixty-four cents. That’s not even enough to buy something off the dollar menu at your favorite fast-food joint. After another two weeks, you’d have less than $10. But if you can hold out for just two more weeks, the doubling power will turn that starting penny into $1.3 million dollars. That’s the power of compounding. Now, we don’t have magic pennies (that I know of). But we do have the next best thing: Dividend stocks. When companies pay their shareholders mone...
More

This Marijuana Giant Could Be the Best Bargain in the Industry

Marijuana is facing the possible end of prohibition and investors need to consider the possibilities associated with that. Under prohibition, marijuana became a multi-billion dollar industry. Its products were differentiated by quality but for the most part maintained the same form. Legalization opens up research and development opportunities. Already, marijuana is available in a variety of forms including edibles, oils and different strains targeting different ailments under medical usage. While small companies are exciting to invest in, large companies could be the key to the introduct...
More

The One Surefire Pattern for Massive Declines

Tech stocks in 2000. Gold in 2011. Cryptocurrencies in 2017. Pot stocks in 2018. They all followed the same pattern. They had massive gains. They started from small rises, but over time, they started to rise at a faster and faster rate. Speculation and greed took over. Any attempt to curb prices on the way up were swamped with buy orders instead. Along the way, a parabolic chart pattern started to unfold. That’s a tough pattern to trade—once every investor who wants in has gotten in, early investors reap large rewards. Once sellers start to outweigh buyers, the prices deflate near...
More