Jonathan Yates

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  • Will Wal-Mart, Amazon and Target make Safeway the next Supervalu?

    By Jonathan Yates - September 26, 2012 | Tickers: AMZN, SWY, SVU, TGT, WMT

    As if Wal-Mart (NYSE: WMT), Target (NYSE: TGT) and The Kroger Co. were not torment enough for Safeway (NYSE: SWY) Amazon (NASDAQ: AMZN) is now moving into its space with even more punishment that will have the shareholders experiencing pain like those owning stock in Supervalu (NYSE: SVU)

    Supervalu is down about 70% for 2012.  

    It collapsed under a massive debt load from an ill-advised acquisition that was exacerbated by more »

  • Five Motley Fool Reasons to Sell Sears

    By Jonathan Yates - September 26, 2012 | Tickers: AMZN, EBAY, SHLD, TGT, WMT

    Knowing when to sell any asset, particularly a publicly traded stock, is just as important as knowing when to buy, if not more so.  

    As such, The Motley Fool has five reasons that offer guidance as to know when to sell.  Sears Holding (NASDAQ: SHLD) fits all five, despite being up 72.56% for 2012.   Formed in 2005 from the merger of Sears and K-Mart by hedge fund manager Eddie more »

  • Invest in Dividend Aristocrat Stocks, Don't Speculate on Gold

    By Jonathan Yates - September 25, 2012 | Tickers: ABT, KO, XOM, GLD, WMT

    OG value investor Benjamin Graham, the intellectual force behind Warren Buffett, described an investor as one who sought to profit from the conditions of the company.  By contrast, according to Graham, a speculator was one who hoped to gain from the conditions of the market.  For speculators seeking to profit from buying gold, there also has to be the expectation that the "Greater Fool Theory" will prevail, too.

    This is more »

  • Five Reasons why Coal Stocks could Burn Brighter

    By Jonathan Yates - September 25, 2012 | Tickers: BHP, CLF, KOL, BTU, YZC

    While 2012 has been a bleak year for companies operating in the coal sector, there are five recent developments that should lead to a brighter future for Cliff Natural Resources (NYSE: CLF), BHP Billiton (NYSE: BHP), Peabody Energy (NYSE: BTU) and Yanzhou Coal Mining Company (NYSE: YZC), and others in the industry.

    The first, and most significant, involves the biggest consumer of coal in the world, China.  Beijing announced in more »

  • Will "The Tao of Steve" Principles Revitalize Nokia?

    By Jonathan Yates - September 23, 2012 | Tickers: AAPL, BBRY, GOOG, MSFT, NOK, SSNLF

    In the movie, "The Tao of Steve," the protagonist, a homely, dumpy kindergarten teacher by the name of "Dex" enjoys a mystical rapport with attractive women way out of his league that invariably leads to bouts of unmitigated lust.

    Like I said, its in the movies.

    When queried about this seemingly unfathomable success in matters of amour, Dex attributes it to "The Tao of Steve" principles that he established and more »

  • Niche Beverages Offer Refreshing Alternatives

    By Jonathan Yates - September 21, 2012 | Tickers: KO, COT, MNST, PEP

    There should be a place in every portfolio for Coca-Cola (NYSE: KO) or PepsiCo (NYSE: PEP).  

    Each is an excellent company with a global franchise, healthy dividend yield and a robust total return over the decades, accounting for why Coca-Cola is the largest holding of Warren Buffett's in the portfolio of Berkshire Hathaway.  But for investors looking for high growth or undervalued stocks in the beverage sector, niche companies more »

  • Profit From the Dictates of Chinese Bondholders

    By Jonathan Yates - September 21, 2012 | Tickers: CAT, KO, UL, WMT, YUM

    In an apocalyptic scenario for global finance espoused by some, Chinese bondholders dump massive amounts of US Treasury securities, plunging the world into economic chaos as interest rates spiral.  While that has clearly not transpired (yet), Chinese bondholders are dictating American economic policy through the simple act of not buying US Treasury securities in the massive quantitaties as before.  Since July 2011, the Chinese have lowered their holdings of US more »

  • All But Owning Sprint-Nextel, Apple Should Buy T-Mobile USA

    By Jonathan Yates - September 20, 2012 | Tickers: AAPL, T, DT, S, TMUS.DL, VZ

    Like all others, Apple (NASDAQ: AAPL) would have profited greatly if it had bought Sprint-Nextel (NYSE: S) last year.  For 2012, Sprint-Nextel has risen by 137.61%.  Unlike all others, however, Apple basically 'owns' Sprint-Nextel as the wireless carrier owes its rebound to the popularity of the iPhone.  As such, Apple should buy T-Mobile USA to enhance its operations.

    T-Mobile USA, owned by Deutsche Telekom (NYSE: DT), is the fourth more »

  • Tootsie Roll is a Sweet Investment or Takeover Target

    By Jonathan Yates - September 19, 2012 | Tickers: KRFT, HSY, TR

    Tootsie Roll (NYSE: TR), the candy maker, is a unique entity in that it has the oldest chief executive officer of a publicly traded company.  The company is not operated as efficiently as competitors such as The Hershey Company (NYSE: HSY).  This makes Tootsie Roll appealing both as a long term investment and as a potential takeover candidate when there is a change in executive leadership.

    Tootsie Roll manufactures and more »

  • More than 126 Million Reasons Eddie Lampert Thinks Sears is a Good Buy

    By Jonathan Yates - September 17, 2012 | Tickers: BRK-A, SHLD, TGT, WMT

    About insider buying, Motley Fool co-founder and CEO Tom Gardner stated that if there was just one factor he had to use for investing that,  "I wouldn't look for growth.  I wouldn't look for a great balance sheet. I'd focus only on insider ownership."  

    The mother-ship has landed!

    Billionaire hedge fund manager Eddie Lampert, also the Chief Executive Officer of Sears Holding Corp. (NASDAQ: SHLD), recently bought more »

  • Recent Good News from the Federal Reserve is Actually Very Disturbing

    By Jonathan Yates - September 15, 2012 | Tickers: AIG, AIG-, BAC, C, GS, NES.DL

    Federal Reserve reports of $6.6 billion in profits from selling mortgage securities it bought at a discount from AIG (NYSE: AIG) at the nadir of The Great Recession should have all investors concerned.  While a profit is always nice, this was all but guaranteed by the actions of the Federal Reserve to maintain a low interest environment.  Due to these actions, the Federal Reserve now has about $3 trillion more »

  • If You Like Watching "Storage Wars," You will Love Owning these Dividend Stocks

    By Jonathan Yates - September 15, 2012 | Tickers: CUBE, EXR, PSA, SSS

    Legendary investor Peter Lynch advised individuals to buy shares of the companies whose products were selling at the local mall.  He felt that individual investors had an edge on Wall Street analysts in that they could actually see, feel and touch what consumers were buying rather than just gauge the attractiveness of a company from its financial statements.  While Lynch, who guided the Fidelity Magellan mutual fund to annualized returns more »

  • This Company's Expansion into Health Care is Bad Medicine for Drugstore Companies

    By Jonathan Yates - September 14, 2012 | Tickers: CVS, JNJ, RAD, WMT, WAG

    A major factor in the long-term success of Wal-Mart (NYSE: WMT) has been its ability to move into new business areas, both in commercial function and geographic region.  Two obvious examples are the offering of groceries starting in 1988 and the first Wal-Mart store opening in China in 1996.  Its expansion into the health care sector in even greater force should prove to be just as rewarding for its shareholders more »

  • "...I'd Bet on Brazil First..."

    By Jonathan Yates - September 14, 2012 | Tickers: SID, VALE, XOM, EWZ, PBR

    In a recent speech to a gathering of bankers in San Paulo, former president Bill Clinton stated that,"If I were just sitting in a room betting on the future of rising countries, I'd bet on Brazil first."  Uber investors George Soros and Ray Dalio share the same bullish view on Brazil as an investment.

    Ray Dalio is the head of Bridgewater Associates, the biggest hedge fund in the more »

  • Five Reasons Why Nokia Could Rebound Like Sprint

    By Jonathan Yates - September 14, 2012 | Tickers: AAPL, BBRY, GOOG, MSFT, NOK, SSNLF, S

    With the rollercoaster ride of Nokia Corporation's (NYSE: NOK) share price recently, memories surface of the same transpiring with Sprint-Nextel (NYSE: S) less than a year ago.  

    Hoping to pre-empt the launch of the iPhone 5 by Apple (NASDAQ: AAPL), Nokia just introduced its two new smartphones, the Lumia 820 and the Lumia 920.  Due to the lack of information regarding critical features such as what country would receive more »

  • Funding Future Needs With Everyday Dividend Dynamos

    By Jonathan Yates - September 14, 2012 | Tickers: KO, XOM, HD, MCD, WMT

    Of the many attributes that reality television star Alana "Honey Boo Boo" Thompson has as a seven-year old beauty pageant contestant, her most important asset as an investor is the luxury to buy for the long term to finance future needs such as purchasing a home, providing for a comfortable retirement, and paying for college.  Towards these life goals, Honey Boo Boo should adhere to the advice of investing legend more »

  • Shooting Down Hired Gun CEOs

    By Jonathan Yates - September 14, 2012 | Tickers: BBY, JCP, MCD, SVU, NYT

    Chief executive officers that came from outside the company at SuperValu (NYSE: SVU), J.C. Penney (NYSE: JCP), Best Buy (NYSE: BBY) and The New York Times (NYSE: NYT) have done little to inspire confidence with the investment community, with the shareholders paying the ultimate price.

    Best Buy, J.C. Penney and The New York Times have all recently announced the hiring of new chief executive officers from outside the more »

  • Five Food Stocks With Tasty Dividends

    By Jonathan Yates - September 14, 2012 | Tickers: CPB, CAG, GIS, HRL, KRFT

    Economic growth is decreasing in the United States with the unemployment rate increasing, but people still have to eat.  Just as consumers turn to comfort foods in times of personal stress, investors should load up their portfolios with shares of these stocks during periods of economic crisis.  The dividend income received from publicly traded food stocks such as Campbell Soup (NYSE: CPB), General Mills (NYSE: GIS), Hormel Foods (NYSE: HRLmore »)

  • Are These Big Oil Stocks at a Permanent High?

    By Jonathan Yates - September 14, 2012 | Tickers: BP, CVX, COP, XOM, OXY

    Despite slumping demand for oil around the world due to declining economic growth, the stock prices of Big Oil firms such as ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX), Occidental Petroleum (NYSE: OXY), ConocoPhillips (NYSE: COP) and BP PLC (NYSE: BP) could be lodged permanently at high levels due to factors having nothing to do with the fundamentals of supply and demand.

    As the chart below reveals, the share prices of more »

  • Buy "Dividend Aristocrat" Stocks, Not Annuities

    By Jonathan Yates - September 14, 2012 | Tickers: AFL, XOM, ITW, PEP, WAG

    In a recent interview in Money magazine conducted by George Mannes, financial advisor William Bernstein counsels that a near-retirement portfolio should be in "safe assets" such as "Treasury Inflation-Protected Securities, annuities, or even short-term bonds."  The focus of the piece, "The Worst Retirement Investing Mistake," is on asset allocation, particularly shifting funds from stocks to "safe assets" such as annuities.  Whatever the benefits of an annuity for a retirement portfolio more »

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