Nihar Patel

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  • Alcatel-Lucent's Positive Results Signal Strength for Networking

    By Nihar Patel - August 12, 2013 | Tickers: ALU, CSCO, JNPR

    Alcatel-Lucent (ADR) (NYSE: ALU) has been a favorite of mine for almost a year now, and I am still not ready to chuck it into the trash pile. The recent earnings report and price action on the stock has given hope to people who believed in the company’s turnaround. There are things to like and dislike in the recent earnings release, but things seem to be moving in the more »

  • Lucrative Healthcare Stocks for Your Portfolio

    By Nihar Patel - July 23, 2013 | Tickers: ISRG, IRBT, MCK

    The healthcare industry faces major political headwinds, but demographics are a far more powerful force in the long-term. Political regimes only last for a few years in the United States, but demographics have trajectories that play out as expected over decades. For healthcare, an aging population is a strong overarching force that will drive revenue for years to come.

    As people live longer, they will require more care, more surgery more »

  • Preparing for Economic Growth and Rising Interest Rates

    By Nihar Patel - July 19, 2013 | Tickers: AA, NLY, MET

    Brighter economic times are ahead, but as the economy rebounds it will probably be necessary for interest rates to rise to keep a lid on inflation. This will be a very gradual process, but it is as close to a sure thing as possible. As long as you keep that in mind, certain investments that seem out of style at the moment become solid long-term choices.

    Starting with insurance

    Superficially more »

  • Diversify Your Exposure to REITs

    By Nihar Patel - July 18, 2013 | Tickers: NLY, HPT, SNH

    I keep my eyes on a few mREITs, but these use mortgages to make their money. However, not all REITs need to rely on a paper note to generate an income that is paid out to investors. There are a lot of public REITs that buy, sell, and lease properties to earn money.

    REITs are dividend investments, because they must pay out 90% of their income. That means that the more »

  • Should You Invest in These Cash Cows

    By Nihar Patel - July 15, 2013 | Tickers: ATVI, ADBE, XRX

    Software is one of the most common types of products where the cost of selling one versus 1,000 is fairly marginal. There is very little replication cost for software as opposed to manufacturing physical products. Offering services can fall in the middle if it requires employees, but can also be an automated service or access to a software.

    These types of businesses come in many varieties, but when they more »

  • Adobe Wins With Subscriptions, Activision Blizzard Moves to Free

    By Nihar Patel - July 8, 2013 | Tickers: ATVI, ADBE, TTWO

    I remember reading an article over a decade ago that discussed the transition of anti-virus software from a perpetual license for updates to a subscription-based system. Nowadays, that model has shifted to be completely free anti-virus software for private, non-commercial users in order to safeguard the Internet as a whole.

    Even subscription-based online games have moved to a free-to-play model with micro-transactions. So it is not just anti-virus that went more »

  • Cisco's Growth Should Continue With an Improving Economy

    By Nihar Patel - July 5, 2013 | Tickers: ALU, CSCO, JNPR

    Cisco (NASDAQ: CSCO) reported earnings and showed higher than expected revenue growth. Earnings growth was impressive as well, but it is revenue that has really dogged the company for some time. The perception that the company had a revenue growth issue has kept the stock down. Top line growth has been consistent, but it seemed like the market expected this to stall at some point and Cisco would spin its more »

  • Alcatel-Lucent's New Chief Lays Out Restructuring Plan

    By Nihar Patel - June 29, 2013 | Tickers: ALU, CSCO, JNPR

    The new plan may sound like more of the same at Alcatel-Lucent (NYSE: ALU) since the last chief also had a restructuring plan. However, the execution of that plan was minimal and left much to be desired even as laid out on paper. Not enough jobs were cut and in my opinion, not enough parts of the company were on the chopping block. The company’s market cap is very more »

  • Metals Continue to Struggle

    By Nihar Patel - June 27, 2013 | Tickers: AA, ABX, FCX

    Metals such as copper and aluminum continue to struggle and even investment commodities like gold are not doing too well. Digging stuff up from the earth was a far better business a decade ago than it is now. However, keep in mind that 2013 is far better than 2009 was.

    Consider how the market has been making new highs the last few years and then look at some of the more »

  • Consider Dividends While Worrying About a Correction

    By Nihar Patel - June 20, 2013 | Tickers: AGNC, NLY, KO, SSW

    I normally like to organize my stock ideas by theme, usually by industry. However, sometimes you do not care about what a company does, but rather what it does for your portfolio. The whole market has risen so high lately that there is a general worry that it could tumble, even if the decline is only temporary. That is the reason I tend to like dividend stocks as a part more »

  • Robots for the Future

    By Nihar Patel - June 17, 2013 | Tickers: ISRG, IRBT

    The last time I wrote about Intuitive Surgical (NASDAQ: ISRG), I devoted myself to dispelling false fears and shifting the focus to potential issues that could arise in an FDA probe. I now realize that there are a couple of issues that could further weigh on the company's share price.

    Probes can find too much

    When a company is subject to regulatory oversight, the regulatory agency has the right more »

  • Analyzing Networking Companies' Mostly Lackluster Earnings

    By Nihar Patel - June 14, 2013 | Tickers: ALU, CSCO, JNPR

    Networking has been having a tough time. 2012 was just an awful year, and 2013 was off to a slow start. I took my time writing an earnings article, because I wanted to wait for Cisco (NASDAQ: CSCO) to join the bunch and give it some thought. As far as initiatives go, Alcatel-Lucent (NYSE: ALU) needs to do more if it plans on returning to profitability. Juniper Networks (NYSE: JNPRmore »)

  • Sprint Looks Good Despite Being in the Hotseat

    By Nihar Patel - June 14, 2013 | Tickers: T, S, VZ

    I cannot believe the run Sprint (NYSE: S) has had. It is at $7 now, and it seems like just a few months ago it was at $3. Oh, it actually was. Monumental gains behind us, Sprint is probably not done yet. I think mobile is heading into a rough transition, because it feels like things are finally settling down. People also seem to be getting irked by nickel and more »

  • Qualcomm's Long-Term Outlook is Intact

    By Nihar Patel - June 12, 2013 | Tickers: CSCO, QCOM, VMW

    Qualcomm's (NASDAQ: QCOM) post-earnings decline is minor at best, and while there are reasons for investors to be a little concerned about the stock the long-term story is intact. There were some things that warranted caution and trimming of positions. I am always for re-balancing positions as required, but the story for Qualcomm is far from over so do not throw out the baby with the bathwater. The company more »

  • This Stock's Long-Term Outlook Is Still Intact

    By Nihar Patel - June 11, 2013 | Tickers: CSCO, QCOM, VMW

    Qualcomm's (NASDAQ: QCOM) post-earnings decline was minor at best, and while there are reasons for investors to be a little concerned about the stock, the long-term story is intact. There were some things that warranted caution and trimming of positions. I am always for re-balancing positions as required, but the story for Qualcomm is far from over so do not throw out the baby with the bathwater. The company more »

  • More than Enough Coffee to Go Around

    By Nihar Patel - June 10, 2013 | Tickers: GMCR, OUTR, SBUX

    My instinct a few months ago would have been to avoid Green Mountain Coffee Roasters (NASDAQ: GMCR), and I would have been foolish in the short-term. However, I still remain uncertain about the long-term outlook for the company.

    Green Mountain's price recovery raises expectations. The company can be profitable without significant growth--that means that the company can stay in business, but might not be able to keep the price more »

  • Defense and Security Will Be Mainstays Despite Cuts

    By Nihar Patel - June 8, 2013 | Tickers: KTOS, RTN, BA

    Defense spending, as a whole, is not going anywhere. Some cuts are probably for the best, because there is no way that any government agency is allocating its money with complete efficiency. When I took a national security policy course many, many years ago, I learned that most armies have the blowing stuff up strategy down pat. The United States has a lot of hardware for traditional warfare, but the more »

  • A Video Game Lull Until the Holidays

    By Nihar Patel - June 8, 2013 | Tickers: ATVI, EA, TTWO

    There seems to be a gap in major releases of video games until the fall. There are a few of note, but none of the big record-breaking franchise releases. I did not actually realize that summer was a slow time for video game releases, but every company in the fall will need to go up against the release of GTA V and the new consoles. Money is usually tight, so more »

  • Tackling the Seagate Value Trap Argument

    By Nihar Patel - June 8, 2013 | Tickers: SNDK, STX, WDC

    I see reference to Seagate (NASDAQ: STX) being a value trap here and there, though I am not sure of the prevalence of this belief. It stems from the changing nature of the PC market. Since the beginning of 2013, the company has moved over 44%. The PE is still a low 7 when compared to companies that make similar amount of money and offer a similar dividend. The last more »

  • AMD Is a Phoenix and Not a Zombie, Probably

    By Nihar Patel - June 8, 2013 | Tickers: AMD, ARMH, INTC

    A phoenix regenerates from its ashes, and the myths have a new young phoenix born or a phoenix that is just younger and in its prime. A zombie is just a moving carcass. It is possible for companies to be one of these types of resurrections. The phoenix reinvents itself as a more powerful company able to compete and survive in the current era. A zombie eats the brains of more »

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