Higher Employment Drives Up Stock Prices
When promising Department of Labor statistics come in, higher employment drives up stock prices. When the figures are not so good stock prices typically fall. The former was the case recently. The United States saw an increase of 172,000 jobs in the private sector while continuing government cutbacks took away 9,000 jobs. The commonly quoted […]
Ban Samsung Products from the USA
The high tech patent wars have taken an interesting turn. A patent infringement suit by Apple against Samsung could, in the end, ban Samsung products from the USA, at least the IPad and IPhone lookalikes that the company makes. The issue of patents for hand held devices led to the Google purchase of Motorola Mobility […]
Finding the Margin of Safety of a Stock
Successful long term investors look for stocks that are likely to provide strong cash flow, return on investment, and a degree of security over the years. The security in owning a good stock comes from its margin of safety. The official definition of margin of safety is that it is the difference between the market […]
Profit from a Global Stock Selloff
Stock markets across the world plunge on the news of an increasingly severe debt dilemma in the Euro Zone. In the meantime smart investors can look for ways to profit from a global stock selloff. United States and European stocks fell on news of increased borrowing costs in Spain. Investors fear that one more nation […]
Invest in Honeywell International
Good news among quarterly financial reports was Honeywell’s report of a 6.6 percent increase in quarterly earnings. Is it too early to invest in Honeywell International, HON, or too late? A few weeks back we wrote that US manufacturing contraction threatens investments . Now it appears that one of the large US manufacturing conglomerates has […]
Investing in Buyout Prospects
After upping its offering price, GlaxoSmithKline (GSK) finally bought out Human Genome Sciences (HGSI). The price was $3 Billion plus or minus for the hostile takeover turned agreeable with the sweetened pot. The takeover brings to mind the business of investing in buyout prospects. Human Genome Sciences was trading for just over $13.50 a share […]
Buy Shares of Supervalu
Is it time to buy shares of Supervalu (SVU) or is the stock too far gone? The nearly century old grocer is the third largest food retailer in the USA behind Kroger and Safeway. However, Supervalu shares fell by almost half the other day after the company reported extremely poor fiscal first quarter earnings. It […]
Long Term Investment in Alcoa
The news has been full of speculation about Alcoa’s second quarter earnings. Some speculated that the company would see earnings fall as much as 80%. It turns out that the company ran at a loss in the second quarter of this year. Aluminum prices are at all-time lows and one might believe that the picture […]
Too Late To Short Glaxosmithkline
It may be too late to short Glaxosmithkline (GSK) but so what. The fourth biggest company in “Big Pharma” just pled guilty and will pay a fine of $3 Billion in the largest health care fraud case in United States history. When the settlement was announced the stock fell from $1481 a share to $1487 […]