6 Stocks That Analysts Say Could Double

Wall Street analysts often focus their research on up and coming companies. They do this for a couple of reasons. One reason is that they hope to generate new business. Another reason is that they hope to have some big winners to enhance their records. In focusing on cheap companies, analysts are exploiting an attribute that many individual investors already understand, which is that low priced stocks are the most likely ones to produce large gains. Individual investors that low priced stocks could be appealing for two reasons. One reason is that the low price means they have little ...
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Is Walmart the Next Amazon?

Source: Walmart.com Recently Walmart announced plans to acquire a 77% stake in India’s Flipkart for $16 billion. Flipkart is an Indian eCommerce company that was initially focused on book sales, but soon expanded into other product categories such as consumer electronics and fashion. The story sounds similar to Amazon and the company has been able to fend off challenges from Amazon, a company that also started with a focus on books and then moved into all areas of commerce. Given that Walmart is now positioned to capture significant sales in India and bring Flipkart’s technology to ot...
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Ben Graham’s Formula Says These Stocks Under $10 Are Buys

Warren Buffett obviously has an innate talent for finding investment opportunities. However, that talent is also, at least partly, a product of his education. Buffett completed his graduate degree at the Colombia Business School which he specifically chose so he could study under Ben Graham. Graham wrote the original textbook on investment selection with David Dodd. That book, Security Analysis, is still considered to be required reading by many market analysts. Graham also wrote The Intelligent Investor, a more accessible book designed for individual investors. Graham believed that ...
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Can a Company Survive a CEO Meltdown?

Source: Tesla.com Every quarter, the leadership team of almost every publicly traded companies take questions from Wall Street analysts. This is a standard part of the quarterly earnings announcement. The company usually issues a press release and then conducts a conference call that includes a presentation followed by questions and answers. Few of these conference calls are remembered. One of the most famous calls occurred in 2001 when Enron's top executive called a fund manager an "a**” during a conference call. It’s a Wall Street legend. Enron President and Chief Executive Officer ...
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How Small Investors can Benefit from Large Caps

Large cap stocks can be among the safest stock market investments. These are large companies and are known as blue chip investments. A blue chip company is defined as “a nationally recognized, well-established, and financially sound company. Blue chips generally sell high-quality, widely accepted products and services.” Analysts note that “blue chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.” And, as a matter of interest, the name "blue chip" ...
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Has Chipotle Overcome Its Problems?

Source: Chipotle.com Sometimes, success is an accident. Not a pure accident as in “I was walking down the street and found a gold coin on the sidewalk.” But, sometimes a business owner finds that sales and profits exceed expectations. That’s the case for Chipotle Mexican Grill (NYSE: CMG). The company’s founder has explained, according to CNBC, that he never expected the burrito maker to become a restaurant chain. He was simply trying to use cheap burritos to fund his plans for a fine dining restaurant. Steve Ells was working as a chef in San Francisco when “he decided to open up a sm...
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Is Facebook Still a Buy?

Facebook put the old adage that “all publicity is good publicity” to the test recently. The company has been under fire for spreading fake news since the 2016 Presidential election. Recent revelations related to the election have compounded that problem. News stories have detailed that political data company, Cambridge Analytica, had access to unsanctioned Facebook user data during the election. According to initial reports, of Facebook’s 2.14 billion users, only 2.33% (50 million) had their personal data shared with Cambridge Analytica. However, that number was recently revised up to 87...
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Cheap Tech Stocks Analysts Love

Technology has always driven the economy and the winners in tech have been the winners in the stock market. This was recently highlighted in a report from Barclays that noted total output per hour across both the UK and the USA from 1760 onward, using an index where that year is considered to be 100. Productivity in 2018 is around 3,000 on this index. The increase in output has led to dramatic improvements in the quality of life for people all around the world. Those gains in the quality of life often result form changes in technology. For example, the development of the steam engine an...
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Income in Cheap Stocks

Market volatility has increased and that makes cheap stocks potentially more appealing. Cheap stocks tend to be value stocks. They also tend to be beaten down from previous highs which is the reason that they offer value. But, value is a strategy that has been proven to work, in the long run. We began our screen by focusing on stocks that trade at a low price. These stocks could be appealing for two reasons. One reason is that the low price means they have little down side risk in dollar terms. The second reason is that low priced stocks are generally the ones that deliver the largest s...
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Facebook’s Not the First Tech Company Congress Challenged

Source: Facebook.com Last week, Facebook’s founder and CEO, Mark Zuckerberg, endured two days of questions from members of the House of Representatives and Senators. Testifying before Congress must have been uncomfortable for Zuckerberg but the question for traders is how this could impact the stock. Congressional interest can carry a number of consequences. It could result in new regulations that limit the company’s operations. Or, the interest in the company could even lead to changes in the company’s operating structure. One extreme example of how Congress affected a company is fou...
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