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The World’s Most Successful Conglomerate Buys… Itself

The World’s Most Successful Conglomerate Buys… Itself

The pandemic saw a rapid drop in companies paying out dividends or buying back shares. That trend has now reversed. Even though most stocks are above pre-pandemic levels and have been for some time, buybacks are still moving higher. One such company that’s gotten into the buyback game in recent quarters isBerkshire Hathaway (BRK-B). The conglomerate operated by Warren Buffett has been making small purchases of its shares, with an estimated $6.4 billion buyback in the current quarter. Buffett follows the old-school view of stock buybacks, where the buy has to be attractive based on th...
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Is It Time for Short Squeeze 2.0?

Is It Time for Short Squeeze 2.0?

Possibly. The past few weeks have seenAMC Entertainment (AMC) raise billions of dollars in capital from selling shares at market, and retiring debt. And earlier this week,GameStop (GME) announced it completed a 5-million share sale as well. By raising this capital, these companies are now well-funded for future expansions. And by paying off debt, they improve their cash flows by avoiding interest payments as well. That doesn’t even get into the possibility of a short squeeze. While the market is now reporting GameStop as having a short interest of only 20 percent of shares, compared ...
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This Tech Infrastructure Play Offers Growth and Value

This Tech Infrastructure Play Offers Growth and Value

With traders uncertain as to the market’s next move, a great way to find opportunities is to look for the best values in each sector. For big tech, only a few companies look attractive now. That’s because the market rally of the past year has led to a high valuation in terms of earnings, sales, and other traditional measures. However, some values remain, particularly in a company that largely sat out the rally and can move higher. The big tech play?Cisco Systems (CSCO). The maker of modems and routers has been a key part of digital infrastructure for decades. Shares underperformed th...
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This “Stealth Rally” Has a Few More Weeks to Peak

This “Stealth Rally” Has a Few More Weeks to Peak

The past week has seen a big shift in investor sentiment following the latest Fed meeting and inflation fears. While some sectors like tech have performed relatively better, one market has been in a strong uptrend for the past few months. And, from a seasonal perspective, it’s also an area that will likely have its strongest demand over the next few weeks, until downshifting in the fall. That sector is the energy space, particularly oil. Prices of crude are at two-year highs, thanks to supply constraints put in place during the pandemic and a strong return of demand. Some traders are...
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Whether Working Remotely or in office, Software Companies Will Continue to Reign

Whether Working Remotely or in office, Software Companies Will Continue to Reign

Tech stocks started moving higher overall last week as inflation expectations dropped following the latest Federal Reserve meeting minutes. In the tech space, software companies offer excellent returns overall, as they require little (if any) physical production. That keeps profit margins high. For corporate software, the trends are steady even as work trends oscillate between being remote or in office. One such winner?Adobe (ADBE). The creative software company just trounced its earnings late last week, announcing a 23 percent rise in revenue. And earnings came in over $3 per share ...
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How Big Data Won Over the Small Investor

How Big Data Won Over the Small Investor

Of the many companies that have attracted the interest of retail investors the past year, many are small or mid-cap companies, worth a few billion at most. One of the larger plays is also one that has recently gone public in the past year. That company isPalantir Technologies (PLTR). The company is in the business of “big data,” processing seemingly unrelated bits of information to arrive at conclusions. A big contractor with governments, the company helped locate Osama bin Laden, among other publicly-disclosed tasks. But big data is also becoming important for many of today’s tech a...
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Strong Operational Performance Trumps Weak Guidance and Creates Buying Opportunity

Strong Operational Performance Trumps Weak Guidance and Creates Buying Opportunity

One lingering effect of the pandemic has been weak guidance from companies when reporting earnings. Many are still deferring from making forward-looking statements at all, and the market prefers to hear a rosy picture. Without it, a company may even sell off when it reports solid earnings. Case in point?Oracle (ORCL). The tech giant saw triple-digit growth in its cloud infrastructure business, yet provided weak guidance, leading to a drop in shares. Even with a post-earnings drop, shares are still beating the stock market. And with 32 percent profit margins, it’s a sign that tech is ...
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This New Retail Favorite Stock Has Staying Power

This New Retail Favorite Stock Has Staying Power

The past few weeks have seen a resurgence in trades popular with retail, rather than professional, investors. Some of these companies have some good stories behind them, and others have a good story and a good company behind them. Case in point?Wendy’s (WEN). The hamburger chain has become a favorite play on messaging boards. And with an astute social media presence, as well as a new app and loyalty program, it’s making burgers feel high-tech. The popularity hasn’t been lost on analysts. Or the company’s fundamentals. While shares are up less than 10 percent over the past tear, earni...
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This Social Media and Gaming Play Could Break to New Highs

This Social Media and Gaming Play Could Break to New Highs

Video games remain a popular and growing part of the entertainment industry. From small indie studious to giants in the space, the E3 conference, held virtually this year, showed off some of the top developments in the space. Many companies had some announcements regarding the latest games and technologies behind them. Some are even trying to shake up how consumers value their companies compared to competitors. Case in point?Microsoft (MSFT). The software giant’s latest X-box lineup is just a smaller part of its growing entertainment industry. It purchased game maker ZeniMax for $7.5...
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Logistics Challenges Overlook Long-Term Potential In this Strong Trend Stock

Logistics Challenges Overlook Long-Term Potential In this Strong Trend Stock

While most companies have beaten earnings expectations so far this year, a murky outlook or a warning about the costs of inflation have often prevented shares of a company from moving higher. One company just made such a warning. Despite some shortages in key areas, however, it’s shown a strong 32 percent revenue growth, and came out with strong guidance. Yet shares sold off anyway. That company isChewy (CHWY). Shares peaked in mid-February and are down nearly one-third since then, despite some strong earnings numbers. But shares have started to rise in recent sessions, and may shake...
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