Stocks To Buy

When a growth trend is underway, nearly every company that plays to that trend will rally. At least, at first. However, weaker companies will get squeezed out by competition, leading to only a few big players. Of those players, a few will win based on quality. Others will cater to a lower-end market. When a sector is still new, chances are the higher-end product will perform better than the lower-end one until a few iterations of the technology are worked out. Right ...
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Some market sectors are cyclical. Others tend to be slow and steady. The financial sector has characteristics of both. It tends to be slow and steady most of the time, but fears hitting the financial sector can lead to big losses quickly. Investors who can sort through real dangers and find undervalued companies capable of growing their market share can win when the sector shifts back to slow and steady. One niche of the financial service space is asset management. This space ...
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Markets will likely remain uncertain for some time. That means daily swings will occur, punctuated with moments of extreme fear or greed. Traders can take advantage of the swings in both directions. And investors can use drops to buy great companies at a fair price. A great company, such as one with a strong brand and a history of consistent dividend growth, will rarely trade at a great price. But they’re also usually overpriced, and it takes market fear to knock it ...
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Wall Street is fond of saying that investors shouldn’t look to catch a falling knife. However, once a stock has had a big drop, fears of a further decline tend to leave investors on the sidelines. That can mean missing out on the early part of a rally off extreme lows, which can be a big part of a total bull rally. That means it’s often ideal to buy when there’s still some lingering fear. Right now, the regional banks are teetering ...
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There’s a common strategy for a company to take a short position in a company, then issue a research report explaining why. Typically, such reports will take company statements and claim that they’re embellished in some fashion. Often, these reports aren’t true, or have an element of truth to them that are grossly exaggerated, even if allowed under accounting standards. But in the short term, shares can get knocked down, allowing the short seller to profit quickly. The most recent short seller ...
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Many companies hire as they need to when growing like gangbusters. But when things go down, it’s a time to assess the size of a company and its needs, no matter what sector it’s in. For some companies, the worst bloat can come from its executive offices. The growth of middle management can cause a big payroll expense to build up, and take away capital from lower-level workers that make a company’s success possible. That’s why a number of big-name, labor-intensive companies ...
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The end of the first quarter of the year saw the Nasdaq rebound more than 20 percent off of its lows from last year. Technically, that means the index is in a new bull market. And that’s no surprise when looking at some of last year’s hardest-hit tech stocks. A few have managed to nearly double off their lows. And they could move higher, as the flood of money hasn’t hit this space yet. One company that’s benefited from this trend is ...
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Some companies tend to be growth plays. Others can be steady. A few are more cyclical, having obvious booms and busts. Tech companies that fall out of favor can become cyclical companies, provided they manage to find new products to invest in to get back on the growth track, even if it’s just for a few years. Playing this cycle can lead to bigger returns than buying and holding, particularly if buying near the start of a new cycle higher. Chipmakers tend ...
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