Ken McGaha

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• Is Big Tech Still Really Cheap?

  By Ken McGaha - May 17, 2013 | Tickers: AAPL, CSCO, MSFT |

  Apple (NASDAQ: AAPL) at a recent price of $453.26 is up 17.7% from its 52-week low, hit less than a month ago. At a recent $21.27, Cisco Systems (NASDAQ: CSCO) has risen 42.8% from its 52-week low established last July. Microsoft (NASDAQ: MSFT) has gained 26.4% from its low of $26.26, established in December of last year and Intel has jumped 24.2% off more »

• Building An Income Fortress With Dividends Part II

  By Ken McGaha - May 16, 2013 | Tickers: JNJ, TWGP, WMT

  As promised at the end of Part I of this two-part article, in Part II, I am presenting three more selections that will help investors round out a well-diversified, income-producing portion of their investment portfolios that will provide them with a safe, growing stream of dependable dividends to supplement their overall investment strategy. In Part I, the three options presented provide exposure to the commercial real estate, technology, and private more »

• Building an Income Fortress With Dividends

  By Ken McGaha - May 15, 2013 | Tickers: CSCO, KKR, O

  The investment universe today is littered with CDs, bonds, and Treasury notes that produce yields slightly above 0% and don’t even come close to exceeding the rate of inflation. Income-oriented investors seeking a reasonable return on their capital can still achieve a solid, safe and growing stream of dividend income if they select their picks carefully. However, selecting investments based on nothing more than a high current yield can more »

• Enjoy Solid Long-Term Gains With These Stocks

  By Ken McGaha - May 14, 2013 | Tickers: BHI, HAL, IBM, SLB

  For oil and gas companies, it is important for reserve replacement to production ratios to be at least at a level of 1; otherwise, they are depleting resources faster than they are finding new products. Some concerns are now being raised that this ratio is weaker than some oil companies are reporting, and that the weakness bodes ill for the industry. However, it bodes very well for the businesses that more »

• Energize Your Portfolio for Bigger Gains With Smaller Risk

  By Ken McGaha - May 14, 2013 | Tickers: DVN, XOM, ROSE

  Market valuations of different businesses, even within the same industry, can vary wildly at any given time. Small businesses tend to have more growth potential, but also entail greater risk; large ones offer more safety but less growth. Identifying the cheapest, small or mid-sized businesses in an industry and pairing the investment with one of the largest gives investors the opportunity to enjoy the best of both worlds. Applying this more »

• Buy Small Banks For Big Profits

  By Ken McGaha - May 14, 2013 | Tickers: BKU, HBHC, IBOC

  We constantly hear talk in the financial news about the “banking sector” and are inundated with names like Citigroup, Bank of America, and Wells Fargo. What many investors never take the time to consider or analyze is the segment of the banking business we never hear about on the news, even though it offers exceptional opportunities for gains - small regional banks.

  Advantages of regional banks

  Regional banks have a much more »

• Three Stocks to Avoid When Buying for Dividend Yield

  By Ken McGaha - May 14, 2013 | Tickers: AEP, ETR, FE

  Regular readers of my work will be well aware of my affinity for receiving dividends from businesses in which I invest. I think it is important for people running a business to make sure the owners get paid, just as they assure that they themselves receive compensation for their investment of time into the business I expect to be paid for the investment of my capital. When seeking to invest more »

• Big, Low-Risk Profits From Natural Gas In An Unexpected Place

  By Ken McGaha - May 13, 2013 | Tickers: DD, FLR, KBR, DOW

  Massive new supplies of natural gas discovered in the U.S. have caused the domestic price to fall as much as 70% below the price paid in some other countries. While these low prices have not been favorable for the operating results of the businesses selling natural gas, it is creating a windfall for businesses that are big consumers of it; but the big profits for investors will come from more »

• Invest Today and Profit For Years in The Fuel of The Future

  By Ken McGaha - May 10, 2013 | Tickers: LNG, CLNE, CMI, RDS-A, TA, WPRT |

  In a recent article, I discussed some of the political headwinds beginning to blow against the concept of exporting American natural gas into the world market where the prices are much higher and the potential negative impact that opposition could have on Cheniere Energy if those efforts are successful. I also discussed a couple of businesses in the industry that should continue to thrive without regard to the outcome of more »

• 2 Dividend Paying Must-Haves, 1 to Keep an Eye On

  By Ken McGaha - May 10, 2013 | Tickers: TEU, IEP, MAIN

  Most investors with whom I speak on a regular basis tend to think of investing for dividend income as something where they can place their money, collect regular dividends, and not worry about it. While that is true in many cases, economic cycles and business conditions must be actively monitored to avoid capital losses. I have found two excellent examples of the first scenario and one of the second that more »

• This Could Destroy Your Wealth or Make You Rich

  By Ken McGaha - May 5, 2013 | Tickers: CJES, LNG, D

  While the media is filled with loud reporting of the newly available abundant supplies of natural gas within the borders of the United States, very little coverage is given to the efforts to restrict access to supply through restrictive regulations on hydraulic fracturing (fracking), or the political efforts just getting underway to restrict the export of natural gas into the world market where prices are as much as 3 to more »

• These 3 Bites of the Apple Will Trounce the Market

  By Ken McGaha - May 3, 2013 | Tickers: AAPL, CRUS, GLW

  Apple (NASDAQ: AAPL) shares have plummeted from a high of just over $705 per share in September last year to a low of just over $385 earlier in April. But, Apple was not the only business thrown into the trash heap by investors, Cirrus Logic (NASDAQ: CRUS) , a major supplier estimated to derive 85% of its revenue from Apple, saw its shares decline nearly 62% from its highs to its more »

• You Don’t Have to Run a Cartel to Make Big Profits in Drugs

  By Ken McGaha - April 29, 2013 | Tickers: ABT, LLY, GSK, PFE, QCOR

  The market for prescription and over-the-counter drugs is huge and hugely profitable. With the global trend of an aging population well underway, it is nearly inevitable that demand for prescription and non-prescription drugs will rise. While much is made in the media regarding the so-called “patent cliff” faced by the large drug makers, well-placed investments now will allow investors to reap double-digit gains for years to come. Investors who are more »

• Get Paid Like a Private Equity Partner

  By Ken McGaha - April 28, 2013 | Tickers: AINV, ARCC, FSC, PSEC

  Private equity investments are usually restricted to people who have a high net worth due to the perceived high level risk and complexity of the investments -- they can also be quite lucrative. For those of us lacking the funds and expertise to participate directly in private equity transactions, one market sector allows small investors to participate. These businesses fall into a classification called business development companies (BDCs) and they provide more »

• How to Grow Richer: Faster and Safer

  By Ken McGaha - April 24, 2013 | Tickers: CAH, GRMN, HLF, POT

  In an August 2012 White Paper by Goldman Sachs, it was reported that over the last 40 years, the group of all dividend paying stocks has almost doubled the return of the S&P 500. However, over the same period, the businesses that have initiated and consistently increased their dividends have beaten that group by another 33%. It is also hard to believe that a safe, solid business could pay more »

• Achieve Double Digit Gains From Aging Cars

  By Ken McGaha - April 22, 2013 | Tickers: AAP, AZO, ORLY, PBY

  No matter what the current economic conditions are, there is virtually always some segment of the business community that will be able to benefit from it. When the economy is bad and consumers are fearful, they will take actions to defer major expenses into the future and save their money to pay existing bills.

  The decision to purchase a new car is an easy one to postpone, as it is more »

• If You Want to Make the Most Money, Buy the Best Liquor

  By Ken McGaha - April 22, 2013 | Tickers: BEAM, BF-B, DEO

  After a difficult day or to celebrate success, when you’re a little bit down or even feeling your best, when the economy’s booming or bad times are looming, there’s one kind of product we’re sure to be consuming: alcohol! Can anyone think of any other substance consumed on such a widespread basis for such a wide variety of situations as alcohol? Can anyone think of a more »

• A Sporting Way to Make a Winning Investment

  By Ken McGaha - April 21, 2013 | Tickers: CAB, DKS, HIBB

  There is no doubt that Americans love sports and competition. Typically, we only think of professional athletes or team owners as being in a position to profit from that situation. However, there is a way that virtually anyone can make very solid profits over many years: by investing in the businesses that supply us with the equipment we use in pursuit of our love of sporting activities. The global sporting more »

• The Ultimate Winners of the Mobile Wars

  By Ken McGaha - April 19, 2013 | Tickers: AAPL, MSFT, QCOM |

  A year ago, one of the top investment picks in the market were shares of Apple (NASDAQ: AAPL). The broad consensus was that it was a stock that everyone should own. Out of 57 analysts covering the stock in February 2012, only one, Edward Zabitsky, had it listed as a sell. In March of last year, Forbes contributor Eric Jackson predicted the share price would rise to $1,650 by more »

• Double Digit Profits From Quantitative Easing

  By Ken McGaha - April 18, 2013 | Tickers: NLY, AI, NYMT, TWO

  Quantitative easing (QE) is a term with which many American adults may be familiar, but might not really understand what it is and how it can impact them. 

  What is QE and its effect?

  QE, as it's applied today, is the action being taken by the Federal Reserve Bank (the Fed) to buy large portions of new debt being issued by the Treasury Department to finance the government’s more »

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