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Brendan O'Boyle

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  • DoesThis Outperforming Niche Company Deserve a Place in Your Portfolio?

    By Brendan O'Boyle - May 24, 2013 | Tickers: CACC

    Companies that operate in a niche markets often prove to be very lucrative investments. Because small focused companies can outmaneuver larger competition they are able to maintain their competitive advantage and reward shareholders accordingly. I think of large companies as sharks. In the open ocean sharks can have insurmountable competitive advantage due their size, which is comparable to large companies advantage due to economies of scale. However, try dumping a more »

  • The Future of Cable TV Probably Looks Like the Past: Five Cable TV Stocks to Consider

    By Brendan O'Boyle - May 8, 2013 | Tickers: CVC, CMCSA, DTV, DISH, NFLX, TWC

    It is always good news for investors when they own a company that sells a highly addictive product, and many parents can attest to the addictive nature of cable television. Investors have wondered if there is a lack of innovation in the industry, and perhaps fledgling companies like Netflix will be able innovate toward a new paradigm of receiving entertainment by undercutting the old guard with lower prices and on-demand more »

  • The Coming Boom in Aerospace: Which Companies Are Poised to Profit?

    By Brendan O'Boyle - May 7, 2013 | Tickers: ATRO, LMT, PCP, BA, TGI

    It has been predicted that over the next several years a boom will take place in commercial aerospace orders (Figure 1). These orders are cyclical, but lag the economy to some extent as seen in the graph below. For example, after the September 11th terrorist attacks and due to the 2000 recession, orders were curtailed for some time before beginning a rebound in 2005. Likewise, the 2008 financial crisis more »

  • Beer Sales are Increasing in the United States – A Toast to Five Brewers

    By Brendan O'Boyle - April 24, 2013 | Tickers: BUD, SAM, ABV, HEINY, TAP

    For the first time since the recession, shipments of American’s go-to alcoholic drink rose last year particularly for smaller craft beers, which according to the Brewers Association rose from 11.5 million barrels in 2011 to 13.2 million barrels in 2012. Beer sales have struggled in recent years particularly because the key consumers of beer are blue-collar males in their 20s, a segment that was hit particularly hard more »

  • Is Natural Gas a Flaming Buy? Five Cheap Natural Gas Producers to Watch

    By Brendan O'Boyle - April 22, 2013 | Tickers: APA, CHK, CEO, COP, ECA, EOG

    It is probably fair to say that the boom in natural gas has been one of the most unprofitable revolutions in recent memory for investors in natural gas producing companies. Even the legendary Warren Buffett admitted that he overpaid for ConocoPhillips during the heady days leading up to the credit crisis in 2008. This lesson should not be lost on other investors: when energy prices are high, companies that derive more »

  • Is This Ticking Time Bomb A Cornerstone of Your Portfolio?

    By Brendan O'Boyle - April 18, 2013 | Tickers: LH, LPNT, MYGN

    The Supreme Court is scheduled to hear a greatly anticipated case that will provide clarity on the patentability of human genes. Over the past thirty years, biotechnology innovators have secured patents on genes for purposes that range from medical to agricultural products. This Monday, a challenge to Myriad Genetics (NASDAQ: MYGN) was heard contesting whether or not their patent is valid. The Association for Molecular Pathology is challenging the patentability more »

  • Gold Miners Are Hitting Deep Value Territory: Here Are Five Cheap Miners for Your Watch List

    By Brendan O'Boyle - April 15, 2013 | Tickers: ABX, GG, NEM, GOLD, AUY

    Gold mining is a tough business. It is capital intensive to get that precious yellow metal out of the ground, and then the price that can be fetched on the open market can vary greatly. In the past several weeks the price of gold has dropped dramatically, while the price of many gold miners has dropped even more. Because of the uncertain and capital-intensive business model, gold miners are not more »

  • Gold Miners Are Hitting Deep Value Territory: Here Are Five Cheap Miners for Your Watch List

    By Brendan O'Boyle - April 15, 2013 | Tickers: ABX, GG, NEM, GOLD, AUY

    Gold mining is a tough business. It is capital intensive to get that precious yellow metal out of the ground, and then the price that can be fetched on the open market can vary greatly. In the past several weeks the price of gold has dropped dramatically, while the price of many gold miners has dropped even more. Because of the uncertain and capital-intensive business model, gold miners are not more »

  • Gold Miners Are Hitting Deep Value Territory: Here Are Five Cheap Miners for Your Watch List

    By Brendan O'Boyle - April 14, 2013 | Tickers: ABX, GG, NEM, GOLD, AUY

    Gold mining is a tough business. It is capital intensive to get that precious yellow metal out of the ground and then the price that can be fetched on the open market can vary greatly. In the past several weeks the price of gold has dropped dramatically, while the price of many gold miners has dropped even more. Because of the uncertain and capital-intensive business model, gold miners are not more »

  • Is This Ticking Time Bomb A Cornerstone of Your Portfolio?

    By Brendan O'Boyle - April 14, 2013 | Tickers: MYGN

    The Supreme Court is scheduled to hear a greatly anticipated case that will provide clarity on the patentability of human genes. Over the past thirty years, biotechnology innovators have secured patents on genes for purposes that are diverse ranging from medical to agricultural products. On Monday, a challenge to Myriad Genetics (NYSE: MYGN) will be heard contesting whether their patent is valid. The Association for Molecular Pathology is challenging the more »

  • Buy AutoNation on Continued Strength in Consumer Spending and Pent-Up Demand

    By Brendan O'Boyle - April 2, 2013 | Tickers: AAP, AN, AZO, KMX, PAG

    As the economic recovery continues to chug along it seems likely that pent-up demand will benefit certain sectors of the economy. Specifically, consumers may be ready to consider buying larger items that they postponed purchasing due to economic concerns. With the current rebound in the stock and housing markets, many consumers are feeling wealthier and more secure, which may translate into increased consumer spending.

    While the U.S. auto market more »

  • 5 Undervalued Major Oil Companies: But Which Will Be a Gusher for Your Portfolio?

    By Brendan O'Boyle - February 19, 2013 | Tickers: BP, CVX, COP, XOM, TOT

    While the overall market has been trading higher recently, there have been pullbacks among several major oil companies that may be interesting entry points for a longer-term investment.  While the fundamentals of the oil business have improved over the past calendar year, the prices of the largest oil companies have not followed suit.  Oil giants, such as British Petroleum (NYSE: BP), ConocoPhillips (NYSE: COP), Chevron (NYSE: CVX), Total (NYSE: TOTmore »)

  • Major U.S. Banks Have Major Problems; Which Smaller Firms Are Poised to Outperform?

    By Brendan O'Boyle - January 28, 2013 | Tickers: BAC, C, MAIN, KRE, WFC, WFC-

    Bank of America (NYSE: BAC) and Citigroup (NYSE: C) each reported dismal earnings last week reporting net income of $0.03 and $0.38 while missing analyst expectations that were set several times higher.  I don’t know whether these poor results made you laugh or cry, but they got me thinking.  Specifically, they made me think about how by its very nature capitalism abhors dead wood.  Think of the more »

  • Credit Card Companies Are Plastic Gold: But Which Company is the Best Buy?

    By Brendan O'Boyle - January 22, 2013 | Tickers: AXP, DFS, MA, V | Editor's Choice

    For the last several years, the long-term trend toward a cash free society has lead to tremendous capital gains for shareholders of credit card companies.  The figure below shows the outperformance of American Express (NYSE: AXP), Discover Financial Services (NYSE: DFS), MasterCard (NYSE: MA) and Visa (NYSE: V).  It is expected that this trend has room to run, particularly in many emerging markets.  Thus identifying reasonably priced companies with exposure more »

  • 5 Undervalued Insurance Companies: But Which One Will Let You Claim a Payout?

    By Brendan O'Boyle - January 15, 2013 | Tickers: ACE, AFL, AWH, CB, TRV

    The insurance and reinsurance industries are highly cyclical and characterized by favorable pricing trends during periods of diminished underwriting capacity.  These years are followed by oversupply and less favorable pricing trends with a complete cycle lasting three to four years.  Mid-2011 witnessed a cyclical bottom in the insurance industry and it is expected that insurance companies will continue to outperform in the near term.  Below is a chart, which illustrates more »

  • The Smart Money Has Been Eying the Future of DNA Sequencing: Should You?

    By Brendan O'Boyle - January 8, 2013 | Tickers: ILMN, LIFE, RHHBY

    Roche (NASDAQOTH: RHHBY) has a remarkable history of making attractive and well-timed acquisitions.  In 2009 they purchased Genentech and bought one of the most attractive companies on the market as blood ran through the streets. Recently Roche has turned its interest to a little known sequencing company named Illumina (NASDAQ: ILMN), but over this weekend they appear to have withdrawn the offer for a second time.

    In this context, it more »

  • Buy Jacobs Engineering Group on Improving Architectural Spending

    By Brendan O'Boyle - December 31, 2012 | Tickers: JEC, KBR, SHAW | Editor's Choice

    Few professionals have brighter hopes in the near future than architects.  The Architecture Billings Index recently rose for the fourth consecutive month to a new post-recession high.  It appears that architecture is back after languishing for years during the Great Recession.  It is expected that a large amount of pent-up demand exists for architectural services and one company that should benefit is Jacobs Engineering Group (NYSE: JEC).

    But why pick more »

  • Deere & Company: A Bit Expensive, But You've Got Options

    By Brendan O'Boyle - December 31, 2012 | Tickers: CAT, DE, JOY

    The sluggish state of the macro-economy has weighed on the bottom line of Deere (NYSE: DE) recently. However, it would be foolish not to expect more vibrant growth some day.  At that time agriculture is expected to outperform due to population growth, which will necessitate spending on agriculture.  Selling cash-secured puts can be an excellent way to reconcile a short-term bearish (or neutral) position with a longer-term bullish position.  Through more »

  • Warren Buffett Is Right: Long Term Puts Are Dramatically Overpriced

    By Brendan O'Boyle - December 27, 2012 | Tickers: COP, SPY, BND

    When Warren Buffett speaks the average investor should listen.  The Oracle of Omaha weighed in several years ago on the pricing of long-dated put options, saying that they are considerably overpriced.  While an average investor cannot engage in selling some of the longer-dated options that Berkshire Hathaway has, they can sell puts on individual stocks or ETF index funds. 

    Below is a chart published by the CBOE of the Put-Write more »