Douglas Ehrman

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  • Is Dividend Investing Done?

    By Douglas Ehrman - November 28, 2012 | Tickers: AAPL, BMY, CAT, CSCO, PFE

    Of the many impacts that are likely to be felt if the economy is allowed to go over the fiscal cliff, the treatment of dividend income is one concern that seems to have received less than its share of attention. While sequestration and the return of the death tax are without question deeply important issues that must be addressed, the dividend issue has the potential to change the landscape of more »

  • Trading Merck’s Dividend Hike

    By Douglas Ehrman - November 28, 2012 | Tickers: AZN, LLY, MRK

    Drug maker Merck (NYSE: MRK) announced Tuesday that it was raising its quarterly dividend from $0.42 per share to $0.43 – a 2.4% hike for the shares that were already offering a dividend yield of 3.8%. At a time when investors have been forced to re-evaluate the efficacy of dividend investing ahead of the looming fiscal cliff, Merck seems to be going on the offensive. The stock more »

  • Why Bristol-Myers Is Worth a Look

    By Douglas Ehrman - November 28, 2012 | Tickers: BMY, JNJ, PFE | Editor's Choice

    From time to time, investors get fixated on a given company and romanticize every piece of news to fit their particular predilection on the stock. I have been bullish on Bristol-Myers Squibb (NYSE: BMY) since mid-August, noting that every success the company registers is ignored, but every misstep is severely punished. While the stock is up about 2.5% since I first commented on it, I can admit that my more »

  • Gold: Getting Positioned for 2013

    By Douglas Ehrman - November 27, 2012 | Tickers: ABX, GG, NEM, GLD

    Tracking the investments of large institutional money managers has long been considered a tool for making one’s own decisions, although, in my view, this is where the process begins, not where it ends. It is along these lines that the $3.66 billion investment by John Paulson’s Paulson & Co. in the SPDR Gold Trust (NYSEMKT: GLD) or the 49% increase in GLD holdings by George Soros’s Soros more »

  • Is Barrick a Buy Ex-Dividend?

    By Douglas Ehrman - November 27, 2012 | Tickers: AU, ABX, GG, NEM, GLD

    Shares of Barrick Gold (NYSE: ABX) are set to go ex-dividend on Nov. 28, and while this is not usually a catalyst to either buy or sell shares, it provides a good reason to consider the position of both the company and the overall gold market. Where gold, as represented by the SPDR Gold Trust (NYSEMKT: GLD) is up over 8% on a year-to-date basis, Barrick has declined by nearly more »

  • Roundy’s Goes Round and Round

    By Douglas Ehrman - November 27, 2012 | Tickers: RNDY, SWY, SVU, KR, WMT

    To say that Milwaukee-based Roundy’s (NYSE: RNDY) has had a tumultuous month may not do justice to the stock’s price action that has been more rollercoaster than merry-go-round since its most recent quarterly results were released. The stock, which had fallen nearly 30% month-to-date, enjoyed an impressive holiday week in which it rallied by nearly 17%.

    RNDY data by YCharts

    Central to this wild ride has been the more »

  • Two Big Reasons to Consider Silver Wheaton

    By Douglas Ehrman - November 26, 2012 | Tickers: SLV, SLW

    Since Silver Wheaton (NYSE: SLW) reported earnings at the beginning of November, the stock has traded down by nearly 6% while the commodity, as represented by the iShares Silver Trust (NYSEMKT: SLV) is up nearly 10% (see chart). This disconnect is reason alone to take notice of the stock, but when you look inside of last quarter’s results, a second reason is revealed as well. I maintain the joint more »

  • Is Microsoft a Buy on Nokia’s Recent Strength?

    By Douglas Ehrman - November 26, 2012 | Tickers: AAPL, MSFT, NOK

    Microsoft (NASDAQ: MSFT) is in the midst of an aggressive attempt to regenerate its once dominant position in the technology sector and return to the role of innovator. Over the past several weeks, the company has released – both directly and in partnership with hardware manufacturers – a sweeping range of new products including Windows 8, the Surface tablet, a new series of notebooks computers and the new line of Windows smartphones more »

  • Can Map Pharma Cure Your Portfolio Headache?

    By Douglas Ehrman - November 26, 2012 | Tickers: AET, AGN, AMGN, MAPP, VVUS

    Shares of drug maker Map Pharmaceuticals (NASDAQ: MAPP) surged by over 20% during Friday’s abbreviated trading session. The catalyst for the move was the announcement that the U.S. Food & Drug Administration (FDA) had accepted the company’s resubmitted application for its migraine drug, Levadex.

    The news was obviously viewed as a significant positive by the market, but the question now becomes what to do with the stock moving more »

  • What’s Driving Molycorp?

    By Douglas Ehrman - November 26, 2012 | Tickers: AVL, MCP, REE

    Friday’s abbreviated trading session saw shares of rare earth standard-bearer Molycorp (NYSE: MCP) jump by nearly 19% to cap off a 41% rise on the week and make it the largest gainer on the New York Stock Exchange. While various stories have attributed the rise to insider buying by company officials – an apparent indication of management’s belief in the company – the announcement that China will begin subsidizing the more »

  • The Legitimacy of Nokia’s Rise

    By Douglas Ehrman - November 26, 2012 | Tickers: AMZN, T, MSFT, NOK

    Friday’s abbreviated trading session saw shares of smartphone maker Nokia (NYSE: NOK) jump by nearly 8% to cap off a 21% rise on the week. It has been so long since this type of positive news has been associated with the beleaguered hardware manufacturer that it may cause you to double check the numbers – they are correct.

    Driving the stock’s performance has been unexpectedly strong initial demand for more »

  • Wal-Mart: A Black Friday Winner?

    By Douglas Ehrman - November 26, 2012 | Tickers: AMZN, JCP, TGT, WMT

    This year’s Thanksgiving weekend saw record sales across a vast number of metrics including total sales, online sales and, sadly for many, Thanksgiving Day sales. One beneficiary of the spending glut was discounter Wal-Mart (NYSE: WMT), which saw an estimated 22 million shoppers enter its stores. While these numbers appear very attractive on first inspection, understanding how they translate into both sales and profits is critical in measuring how more »

  • Resurrection for RIM?

    By Douglas Ehrman - November 25, 2012 | Tickers: AAPL, BBRY, GOOG

    Friday’s abbreviated trading session saw shares of beleaguered smartphone maker Research In Motion (NASDAQ: BBRY) surge by over 13%. The catalyst for the move seems to have been the increased price target of $15 placed on the stock by National Bank analyst Kris Thompson. As the company that once owned the market struggles to survive against rivals like Apple (NASDAQ: AAPL) and Google (NASDAQ: GOOG), early indications suggest that more »

  • Has JPMorgan Succumbed to Peer Pressure?

    By Douglas Ehrman - November 23, 2012 | Tickers: BAC, C, JPM | Editor's Choice

    When the “London Whale” story broke, JPMorgan Chase’s (NYSE: JPM) CEO Jamie Dimon’s initial reaction was to refer to the incident as a “tempest in teapot.” The reaction played very poorly in the press and Mr. Dimon quickly changed his tune, going into damage-control mode. A few quarters of earnings later, and with the appointment of some new blood to the executive management suite in the rearview, what more »

  • Tea-gate For Teavana Ahead of Earnings

    By Douglas Ehrman - November 23, 2012 | Tickers: SBUX, TEA

    Teavana Holdings (NYSE: TEA) is set to announce earnings on Monday Nov. 26. While the company has gotten a lot of press lately, in part as a result of its announced acquisition by Starbucks (NASDAQ: SBUX), the earnings release is of very little concern to investors.

    Starbucks recently announced its intention to acquire Teavana for $620 million, placing a premium of over 50% on the stock’s price at the more »

  • Apple & Microsoft: Just a Little Bit of History Repeating

    By Douglas Ehrman - November 21, 2012 | Tickers: AAPL, MSFT

    In the type of juxtaposition that leads to unlikely connections, two recent news stories popped up on my screen that made me take pause and consider, particularly as both involved technology behemoths Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). The two stories were Is Apple Becoming Microsoft? and Has Microsoft Captured Some of Apple’s Magic?

    Both stories focus on the relative position of these two players from both a more »

  • Turning Big Data Into Big Profits

    By Douglas Ehrman - November 20, 2012 | Tickers: BRCD, EMC, INTC, IBM

    Aside from the fact that ‘Big Data’ is about the least inspiring moniker possible for a field that could change the way the world works, it is at least descriptive. As IBM (NYSE: IBM) points out “[e]very day, we create 2.5 quintillion bytes of data — so much that 90% of the data in the world today has been created in the last two years alone.” What this means more »

  • Trading Heinz Into Earnings

    By Douglas Ehrman - November 19, 2012 | Tickers: CPB, CAG, HNZ

    While H.J. Heinz (NYSE: HNZ) is one of the least sexy names available in any industry, the company is very well positioned. Heinz is scheduled to release earnings results for the most recent quarter on Tuesday, Nov. 20, before the opening bell. Results are expected to be a steady $0.83 per share, demonstrating the ketchup maker’s ability to consistently deliver returns. The combination of the company’s more »

  • Medtronic’s Earnings in the Shadow of Obamacare

    By Douglas Ehrman - November 19, 2012 | Tickers: BAX, BSX, JNJ, MDT, STJ

    The Affordable Care Act (ACA) – also known as Obamacare – has proven anything but to 500 Medtronic (NYSE: MDT) employees thus far who have lost their jobs as major medical device makers prepare for the coming tax in January 2013. The company is set to announce earnings on Tuesday, Nov. 20, and these results are expected to inform upon whether the additional 500 layoffs planned for 2013 will be sufficient. While more »

  • Do Best Buy’s Earnings Matter?

    By Douglas Ehrman - November 19, 2012 | Tickers: AMZN, BBY, TGT, WMT

    Best Buy (NYSE: BBY) is scheduled to release earnings results for the most recent quarter on Tuesday Nov. 20, but many investors are wondering if the numbers matter. While it is probable that either a significant beat or miss would cause a sharp move in the price of the stock, the news that is expected to accompany the earnings release is likely of significantly more importance. The two top questions more »

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