Mark Morelli

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  • Should You Be Worried That Corporate Earnings Are Slowing Down?

    By Mark Morelli - August 18, 2013 | Tickers: SAM, JNJ, MCD

    Several reports are circulating in the financial media that EPS growth for the S&P 500 member companies is slowing down to a trickle (or even poised for an outright drop) and P/E ratios are getting too high. Some analysts say that by later this year earnings will only grow by single digits.

    Should this concern the average retail investor?

    Not if you invest for the long term and more »

  • Apple Buyback

    By Mark Morelli - August 16, 2013 | Tickers: AAPL, IEP, WMT

    Talk about a reversal of fortune. Over the course of six months (Sept. 2012 to April 2013) the price of Apple (NASDAQ: AAPL) stock had fallen from $705 to $385 a share. Since then it has changed course and risen to about $500.

    I believe that occurred for two main reasons:

    1. The company is returning more value to shareholders through buybacks and dividends.

    2. The market is anticipating the more »

  • The Mitchell Effect

    By Mark Morelli - August 15, 2013 | Tickers: CSX, EEP, HAL, NUE

    One of the world's greatest innovators died recently. No, he wasn't from the high tech industry. He didn't invent the latest iDevice. George Mitchell, the founder of the former Mitchell Energy and Development Corp., was widely credited with the pioneering work that combined horizontal drilling and hydraulic fracturing in the Eagle Ford shale rock formation in Texas. He was 94.

    His methods led to the unlocking of more »

  • I'm Sure Glad I Bought These 2 Stocks

    By Mark Morelli - August 7, 2013 | Tickers: SAM, BWLD, COHR, VRTS

    Last year, I had some extra cash that I wanted to put to work in the growth portion of my portfolio.

    I use the following criteria for deciding which stocks to pick:

    1. Buy what you know (be familiar with either the company or their products),
    2. Solid earnings growth (15%-25% per year over the last three years is a good rule of thumb), P/E ratio not too more »

  • The Battle for Your TV

    By Mark Morelli - August 2, 2013 | Tickers: AAPL, CMCSA, GOOG, INTC

    The battle lines have been drawn in the TV industry.

    On one side are the traditional service providers such as the cable and satellite companies and on the other are some of the biggest tech heavyweights in the world.

    A dose of real innovation will have to overcome big infrastructure and content provider advantages that the incumbents currently enjoy, especially in live events such as sports.

    Chrome plated

    Google (NASDAQ: GOOGmore »)

  • All-Star Stocks

    By Mark Morelli - July 30, 2013 | Tickers: ECL, TMO, VFC, DIS

    Major League Baseball recently played its annual all-star game. That made me think about what stocks might be all-stars from the first half of the year. The real question? How will they do going forward?

    My criteria for the stock all-stars are as follows:

    1. Stock gain surpassing that of the S&P500 index YTD.
    2. Motley Fool CAPS rating of five. [CAPS is a rating system used by investors who enter more »
  • Should You Leap Into Action With AT&T?

    By Mark Morelli - July 18, 2013 | Tickers: T, LEAP, S, VZ, VOD

    In another sign of the continuing consolidation in the telecommunications industry, AT&T (NYSE: T) recently indicated that it wants to scoop up the much smaller Leap Wireless International, Inc. (NASDAQ: LEAP).

    The Goliath vs. David deal will probably benefit long-suffering Leap investors. The stock price had been on a downward spiral until a reversal occurred on news of the potential acquisition. While the company has been signing up new more »

  • Made in the USA

    By Mark Morelli - July 17, 2013 | Tickers: AAPL, CAT, INTC | Editor's Choice

    Not too many years ago, it seemed that the U.S. was losing (or lost) its manufacturing edge over much of the world. Jobs were disappearing. Plants were shutting down. Popular music was rife with lament for the blue-collar worker.

    However, the trend is reversing and more things will be assembled here in the future. This will benefit some companies that are moving production back from overseas. The reasons include more »

  • A Giant Dividend Grower for Your Retirement Portfolio

    By Mark Morelli - July 15, 2013 | Tickers: CVX, KMB, PG

    I have a few suggestions for those of you in or near retirement and looking to add another dividend stock to your portfolio. 

    Based upon my experience, I chose a few criteria that I consider important when selecting dividend-growth stocks that keep up with inflation over the long term (and don't keep you up at night). These criteria include: 

    1. Moderate yield (3% to 3.5%)

    2. Dividend increases more »

  • How to Use 3 Simple Assessments to Evaluate this Tech Titan

    By Mark Morelli - July 12, 2013 | Tickers: AAPL, BRK-B, BRK-A

    Most investors know that the stock price of Apple (NASDAQ: AAPL) has taken a big hit lately -- down nearly 45% from its all-time high reached in September 2012 -- because of perceptions that the company is no longer innovating and that future margins and earnings will decline.  Investors have been selling in droves. 

    Will the slide continue?

    I’m not sure what will happen in the near term -- I'll leave more »

  • 4 Suggestions for Dividend Growers

    By Mark Morelli - July 2, 2013 | Tickers: CVX, KO, MCD, PG

    For those of you either in or approaching retirement, extra income could be an important part of a successful investment strategy.

    There are some moves that can be made now to improve the chances of prosperity during the golden years.

    They don't include relying on increases in long-term interest rates based on potential actions by the U.S. Federal Reserve; hoping Congress ensures the viability of the Social Security more »

  • The 5 Most Profitable Products on the Market

    By Mark Morelli - July 1, 2013 | Tickers: MO, AAPL, KO, MJN, MNST

    Many of the top U.S. companies derive a significant portion of their revenue and profit from only one or two products. In this article I'll take a look at the top five products as ranked by one gauge of profitability --- operating margin --- and how those products affect the businesses that market them. The list was compiled by 24/7 Wall Street.

    Baby formula

    Ranked number five is Enfamil more »

  • How Can You Profit If the EPA Gets Tough on Coal?

    By Mark Morelli - July 1, 2013 | Tickers: CSX, HAL, OKS

    President Obama recently announced that he is directing the U.S. Environmental Protection Agency to create regulations that would limit the amount of hydrocarbons released into the atmosphere from coal-fired electricity generating plants.

    At first glance you would think that the move would be detrimental for the coal industry in particular, the utility sector and possibly the overall economy. It has the potential to reduce coal mining employment, raise electricity more »

  • What to Do if the Federal Reserve Slows Down Bond Purchases

    By Mark Morelli - June 24, 2013 | Tickers: SAM, CVX, PG, TRLA

    The markets have been in turmoil recently due to a few factors including speculation that the Federal Reserve, will taper or reduce its bond buying program.

    On the last day of spring the Dow dropped over 300 points, the biggest one-day decline in nearly two years, after the central bank's chairman, Ben Bernanke, announced that the economy is improving enough that the Fed could ease off the pedal sooner more »

  • Should You Buy Stocks Discarded By Warren Buffett ?

    By Mark Morelli - June 18, 2013 | Tickers: BRK-B, BRK-A, CVS, DE, JNJ

    You may know the phrase "..... our favorite holding period is forever," part of a famous line uttered by mega-billionaire investor and philanthropist Warren Buffett. However, occasionally, stocks that are part of the portfolio of his holding company Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) are sold off, or the stake is reduced. It is done mainly to free up funds for other stocks that Mr. Buffett or his investment managers think more »

  • I've owned this stock for 30 years

    By Mark Morelli - June 15, 2013 | Tickers: GE, BA, UTX

    When I opened my 401k account with my employer about 30 years ago one of the options was buying company stock. I still work there, have the 401k plan and continue to own shares of United Technologies Corporation (NYSE: UTX) in the account.

    The stock price is up nearly 20-fold (not including dividends) since 1983. That's a compounded annual return of more than 10%, beating the overall market by more »

  • Are Utilities a Good Buy?

    By Mark Morelli - June 10, 2013 | Tickers: BRK-B, BRK-A, D, NVE

    Utilities have long been called boring stocks and the kind that Grandma likes to invest in. Peter Lynch called them low growth in his book "One Up on Wall Street."  He usually didn't touch them.

    Over the past 20 years, the Dow Jones Utility Index has advanced at a compounded annual rate of 3.6%. Since 2008, the index has actually dropped 4.5% with most of the more »

  • Is the iPhone Illegal?

    By Mark Morelli - June 7, 2013 | Tickers: AAPL, T, SSNLF

    The U.S. International Trade Commission (ITC) just ruled that Apple (NASDAQ: AAPL) will not be able to import some of its older products intended for use on the AT&T (NYSE: T) wireless network. Some of the affected products include the iPhone 4 and iPad 2.

    The ITC indicated that Apple violated patents held by the South Korean electronics giant Samsung Electronics (NASDAQOTH: SSNLF). The ban won't affect more »

  • Steel City Bars Ban Boston Beer

    By Mark Morelli - June 7, 2013 | Tickers: SAM, BREW, TAP

    If you live in Pittsburgh or are traveling there during the NHL playoff series between the hometown team, the Penguins, and the Boston Bruins, you may not find certain kinds of beer.

    Several bars announced that they will not serve beer from the Boston area. It could be called the Great Boston Beer Ban.

    Will this slow the growth of Boston Beer Co. (NYSE: SAM), the number one craft brewer more »

  • Will this Company Burn Bright?

    By Mark Morelli - June 5, 2013 | Tickers: CREE, GE, HD

    Does innovation in a industry dating back to the 1800's pay?

    Cree Inc. (NASDAQ: CREE) certainly hopes so. It is betting on technology it has refined over the last quarter century to replace something that has been around since before the automobile--the incandescent light bulb.

    The company recently announced a breakthrough in its line up of light emitting diode (LED) bulbs, which allows the 40W model to be purchased more »

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