Larry Light

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  • Time to Exit the Builder Stocks

    By Steve Peasley - March 27, 2013 | Tickers: LEN, MDC, TOL

    It is time to sell the builder stocks, despite good news in the housing sector. Homebuilders are too pricy, and the low interest rates that feed the industry will climb.

    There is no doubt that the U.S. housing market is finally recovering after a severe and protracted slump. For the first time since 2008, the construction and sale of homes will add not only jobs but needed tax dollars more »

  • 3 Stocks Riding the Hard-to-Reach-Oil Boom

    By Steve Peasley - February 21, 2013 | Tickers: CAM, OXY, OII

    With more and more new sources of oil and gas found tucked away under the ocean or in land rock formations, the companies that specialize in getting out those hard-to-reach deposits will prosper. Three in particular should benefit: Oceaneering International (NYSE: OII), Cameron International (NYSE: CAM) and Occidental Petroleum (NYSE: OXY).

    In the near term, their success hinges on future prices of oil and gas. A slide in energy prices more »

  • 4 Beverage Giants Destined to Get Even Bigger

    By Steve Peasley - January 11, 2013 | Tickers: BUD, KO, KOF, DEO

    Forget all the jokes about liquid assets. Beverage stocks are a good place to be. This is a non-cyclical industry that has solid dividends and good long-term prospects. The best way to invest is in the shares of the four heaviest hitters.

    With the middle class expanding rapidly both in Asia and South America, demand for this quartet’s consumable liquids is poised to rise for many years to come more »

  • Why Retail and Data REITs Are a Buy

    By Steve Peasley - December 14, 2012 | Tickers: DLR, O, SPG

    Editor's Note: The initial post incorrectly stated that DLR had not raised their dividend payout in several years. This is incorrect, this version has been corrected.

    Now is the time to buy real estate investment trusts, especially in growing sectors like Internet data centers and recovering ones like retail.

    The income-starved investor needs help amid low rates and cannot take a lot of risk. With U.S. Treasury bonds more »

  • A Smarter Way to Invest in Gold: Royalty Streamers

    By Tina Larsson and Mark J. Foley - October 5, 2012 | Tickers: SSL, GLD

    The Federal Reserve favors continued easing years into the future. That’s a boon for hard assets like gold to hedge against inflation. But what’s the best way to invest in gold? Something called royalty streamers.

  • Tech Empires Aren't Good For Shareholders

    By Yale Bock - September 18, 2012 | Tickers: DELL, EXPE, GOOG, IACI, MSFT, SNE

    The corporate titans of today’s tech world would be better off in parts rather than as wholes. The job of management is to generate shareholder value, not to build massive integrated empires with cash that yields one and a half or two percent. Rather than acquiring more divisions, these massive companies should spin divisions off into leaner, more agile companies.

    Microsoft (NASDAQ: MSFT) is one company that has done more »

  • Investing in Nuclear, Post-Fukushima

    By Mark J. Foley and Tina Larsson - September 13, 2012 | Tickers: BHP, CCJ

    Nuclear power is in a slump and uranium prices are down. But not for long. Surging international power demands should soon create an opportunity for a good uranium producer. And the best of that bunch is Cameco Corp. (NYSE: CCJ)

    Overall, we see value in uranium mining stocks. Cameco is one of the world’s largest uranium miners. The company produces approximately 22 million pounds per year, fully 16% of more »

  • Tobacco and Spirits – Investors Can’t Afford to Ignore Them

    By Peter A. Delgado II - August 22, 2012 | Tickers: MO, BEAM, LO, PM

    So-called sin stocks tend to hold up well, whatever the economy is doing. Citizens want their booze, and even after all the relatively new anti-smoking laws, their tobacco.

    With cigarettes, there’s concern that some day no one will smoke them. Just as barbers no longer bleed people, to remove an evil psyche. But it’s reasonable to expect that the U.S. smoker demographic is down to a hardcore more »

  • Smart British Empire Stocks: The Sun Never Sets

    By Mark J. Foley and Tina Larsson - July 31, 2012

    The British Empire once bestrode the world, and now there are smart plays in stocks from England, Australia and South America that do extensive business throughout the developing world.

    Specializing in materials, real estate and securities exchange, three companies in particular stand out, with strong earnings and good strategic placement. They are listed on their home countries’ exchanges, but also are available in the U.S., over the counter.

    Anglo more »

  • What’s Wrong with Dell Paying a Dividend?

    By Larry Light - July 23, 2012 | Tickers: CSCO, DELL, MSFT, QSFT

    Bravo to Dell (NASDAQ: DELL) for starting to pay a dividend. Last month, the company announced it will begin paying 8 cents per quarter to investors, resulting in a current yield of 2.6%. Dell’s a bit late to the party, but good for it. Some, though, think this is a bad idea. They are wrong.

    Critics prefer Dell to funnel its money mainly toward growth initiatives, more acquisitions more »

  • Don’t Get Burned by Energy

    By Alex Gurvich - July 6, 2012 | Tickers: XLE, SPY, SCO

    This year was not kind to investors in the energy sector. And what’s worse, it is not likely to get any better. Slowing world economies and a lack of frightening war headlines keep energy stocks down. But there are ways for investors to make money from this.

    How far down is oil and other energy producer stocks? Energy is the worst-performing sector year to date, as measured by the more »

  • These Overseas Stocks Will Triumph

    By Mark J. Foley and Tina Larsson - June 26, 2012 | Tickers: CIG, CI, TEVA, TBLMY.PK

    As the U.S. dollar’s appreciation continues, Americans’ making money from foreign companies is tougher. But some overseas businesses are doing so well and have such great prospects that their stocks are worth buying, even if exchange rates don’t favor them at the moment. There are three terrific companies from Brazil, South Africa and Israel that I have my eye on currently.

    The dollar’s surge is due more »

  • Amazon is Overvalued and on the Wane: Part II

    By Kevin Flynn - May 25, 2012 | Tickers: AMZN, RFMD, CRM, VMW, WMT | Editor's Choice

    In my last post, on Amazon (NASDAQ: AMZN),  whose stock recently rallied on the back of a positive earnings surprise, I discussed some of the myths circulating to justify the stock's nosebleed valuation (185 times trailing earnings).

    The online retailer does not deserve that multiple, and does not have a bright future. Here in Part II, we'll look at some facts about the company and crunch some numbers more »

  • Amazon Is Overvalued and On the Wane: Part III

    By Kevin Flynn - May 23, 2012 | Tickers: AMZN, BBY, WMT

    With its huge stock-price run-up and sky-high multiple (178 times trailing warnings), Amazon (NASDAQ: AMZN) looks like a strong growth prospect. Maybe for sales, but not for earnings. In my previous two posts, I punctured myths and presented unpleasant truths about the online retailer.

    Here, we examine its outlook based on the numbers.

    Let's make some reasonable, even generous assumptions. The first assumption is that Amazon can grow revenue more »

  • Amazon Is Overvalued and On the Wane: Part I

    By Kevin Flynn - May 22, 2012 | Tickers: AMZN, AAPL, KO | Editor's Choice

    Trees don't grow to the sky, and neither will Amazon (NASDAQ: AMZN). When a stock is priced for a stratospheric rise, it invites skepticism.

    Yet the online retailer’s recent first-quarter earnings of $0.28 per share, combined with revenue growth of 34% over the first quarter of 2011, easily beat analysts’ expectations after Amazon had issued guidance to analysts for a probable loss. The stock soared on the more »

  • Amazon is Overvalued and on the Wane

    By Kevin Flynn - May 11, 2012

    Trees don't grow to the sky, and neither will Amazon. When a stock is priced for a stratospheric rise, it invites skepticism.

    Sure, we order from Amazon (NASDAQ: AMZN), too. Who doesn't? Right now, that ubiquitous consumer use may make it seem invulnerable.

    The online retailer’s first-quarter earnings and revenue beat analysts’ expectations after Amazon had issued guidance to analysts that there would be a loss. However more »

  • Take a Spring Break From Stocks

    By George Clausen - April 13, 2012 | Tickers: STIP, SHY, AGG, TIP, MDY

    Most market news is negative lately. Maybe it’s time for the stock market to take off for spring break. A little sun and beach make a world of difference.

    The bad news adds extra meaning to the old stock market adage: “Sell in May and go away.” Make that mid-April. 

    Downgrades are happening again. On April 5, Egan Jones Rating Company downgraded the U.S. government debt from AA more »

  • Why Fundamental Indexes Are the Best

    By Tom Gartner - March 22, 2012 | Tickers: ALXN, CSCO, MSFT, PRF

    A new kind of index fund is outdoing the old variety, which is composed according to its underlying stocks’ market capitalization.

    Called a “fundamental” index fund, it fixes a longstanding defect of traditional index portfolios. The traditional variety forces exposure to a lot of hot stocks. Fundamental indexes – which are embodied in several exchange-traded funds -- place a bigger emphasis on boring but often more profitable stocks.

    Over time, fundamental indexes more »

  • Why 2012’s Market Will be Good

    By Raul Elizalde - March 14, 2012 | Tickers: IWO, IWM, IWN, SPY

    The market is doing well thus far this year. Will it swoon? Historical patterns say it will not.

    Hollywood has a typical formula for movies. They start well so the audience knows what is at stake if things go wrong. Invariably they do, but whatever is lost is eventually recovered by the time the movie ends.

    By that standard, the 2011 stock market followed a simple Hollywood script. The first more »

  • No Bull's-Eye for Target Date Funds

    By Jeffrey Baumert, AIF - March 5, 2012

    Target date funds are all the rage because they promise increasing safety as time goes by. Focused on a date you want to retire, say 2025, these funds gradually become more conservative, moving from concentrating on stocks to presumably less-risky bonds. In the fund trade, this shift is called the “glide path.”

    Trouble is, passengers would have a much better flight if some of these planes had better parts.

    The more »

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