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Kyle Farrah

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  • Is Brand Loyalty Dead?

    By Kyle Farrah - June 12, 2013 | Tickers: KO, COT, PEP, SODA

    "I'll tell you why I like the cigarette business. It costs a penny to make. Sell it for a dollar. It's addictive. And there's fantastic brand loyalty." – Warren Buffett

    In 2012 Ernst and Young released a study that found that consumers in developed markets were significantly less likely to make purchasing decisions based on brand loyalty. Younger generations of consumers were more willing to switch brands than more »

  • 5 Stocks to Protect Your Dividend Portfolio

    By Kyle Farrah - October 12, 2012 | Tickers: AFL, ADP, FRFHF.PK, HIG, PAYX

    Dividends can play an important role in boosting the returns of an individual’s portfolio, and can help to stabilize losses during a market downturn. While dividend paying stocks should be included in anyone’s portfolio they are not without their risks; One major factor exists that could force dividend paying stocks to see a decline in value. Individual investors need to protect themselves against this force otherwise they are more »

  • Is Apple the Next RIMM?

    By Kyle Farrah - September 28, 2012 | Tickers: AAPL, BBRY, GOOG

    Once the innovative king of the mobile phone market, shares of Research in Motion (NASDAQ: BBRY) have collapsed from well over $100 in 2008 to a measly $6.34.

    Palm, the maker of the now archaic Palm Pilot did the same thing just a few years earlier.

    Could Apple (NASDAQ: AAPL) possibly be the next RIMM?

    In order for consumer product technology companies to stay afloat, and profitable they need more »

  • Three Dividend Stocks to Buy, and Two to Consider

    By Kyle Farrah - September 18, 2012 | Tickers: AFL, ADM, ADP, HRB, WFC

    43% of the markets returns came from reinvested dividends between 1990, and 2010. That fact, along with the incredibly low rates of returns that bonds currently offer make investing in dividend stocks a smart choice for many investors.

    Here are five dividend stocks to consider adding to your portfolio. Three are dividend aristocrats – companies that have grown their dividend payout each year for the last 25 years or more. The more »

  • Warren Buffett Owns this Dividend Stock. Should You?

    By Kyle Farrah - September 12, 2012 | Tickers: BRK-A, JPM, LOW, WFC

    When the Oracle of Omaha buys a stock investors take notice. Buffett has continually been adding to his position in Wells Fargo (NYSE: WFC) since he initially purchased shares in the early 1990’s. Today Berkshire Hathaway (NYSE: BRK-A) owns 411 million shares, making Well’s Fargo one of Buffett’s largest holdings.

    So the greatest investor in the World clearly believes in the stock. But does that mean that more »

  • This Company’s Product is Not a Fad

    By Kyle Farrah - September 4, 2012 | Tickers: KRFT, MNST, SODA, WMT

    “The CO2 cartridge isn’t working very well. I think it’s out of gas,” exclaimed my roommate earlier this week. It had been a couple of weeks since I moved into my college dorm and already my roommates were hooked on the home carbonating system SodaStream (NASDAQ: SODA).

    I had initially purchased the machine as a way to save money on energy drinks. Prior to my purchase I had more »

  • 1 Dividend Stock to Buy Now

    By Kyle Farrah - September 4, 2012 | Tickers: DRYS, FRO, NAT, SFL

    Prior to the economic meltdown of 2008 manufactures of sea-transportation vessels produced far more ships than were needed at the time. A massive glut in the market had formed. Then when the economy began its downward spiral, demand for ships and sea vessels became greatly diminished, and the companies that operated and owned these vessels began a downward descent. Some shipping companies were forced to file for bankruptcy, while others more »

  • Short and Hold?! Facebook?

    By Kyle Farrah - August 10, 2012 | Tickers: AAPL, FB, GOOG, ZNGA

    Investors waited eagerly for Facebook (NASDAQ: FB) shares to finally trade on the open market. It had been only eight years since the website was initially launched, and the company was already expecting to fetch a valuation of nearly $100 billion, making it the largest IPO in history.

    The company’s price was set at $38 per share on the date of its IPO. After the market opened, shares of more »

  • How to Get a 66 Bagger

    By Kyle Farrah - August 8, 2012 | Tickers: BRK-B, KO, FRFHF.PK, SYK, YUM

    Question: How do you turn $1,000 into $66,200

    Answer: Find companies that can consistently grow earnings by 15% a year for the next 30 years that are trading at a reasonable price.

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    In 1919 Coca-Cola (NYSE: KO) went public at $40 a share. Many thought the stock was expensive at the time, and the following year the stock tumbled and fell to half its IPO price at $19 more »

  • This Hated Stock Could Skyrocket your Portfolio

    By Kyle Farrah - July 24, 2012 | Tickers: AAPL, SKUL, SODA, SNE

    There is a lot of skepticism surrounding the world of IPO’s, and for good reason. IPO’s are generally overpriced and bad values for investors. Occasionally however a stock will be so hated, so despised that it goes down into a territory where it becomes severely undervalued. Such is the case of the high-end headphone and earbud company Skullcandy (NASDAQ: SKUL).

    Skullcandy sells high priced headphones that range from more »

  • 3 Shorts About to be Squeezed

    By Kyle Farrah - July 23, 2012 | Tickers: AAPL, KO, SKUL, SODA, ZAGG

    Occasionally stocks that are growing earnings consistently year over year will see their prices tank due to overly skeptical short sellers. When this happens the stock falls far below a reasonable value, and any positive news or other catalyst such as earnings will force shorts to buy back shares they sold short (cover their shorts) and the stock will skyrocket higher, as more short covering begets more short covering, until more »

  • The Perfect Burrito Didn’t Yield Perfect Results

    By Kyle Farrah - July 23, 2012 | Tickers: AMZN, CMG, MSFT, RHT, SKUL

    Shares of Chipotle (NYSE: CMG) closed down over 20% on Friday after releasing disappointing results. The company actually beat earnings estimates by 11%, but missed on revenue.

    Why they’re down so much: In short Chipotle’s shares were priced for perfection. At the market’s close yesterday shares were trading at a price to earnings multiple of 55.55 times TTM earnings, with a 5 year diluted EPS compound more »

  • The Nuance of Growth

    By Kyle Farrah - July 17, 2012 | Tickers: AAPL, GOOG, IBM, MSFT, NUAN

    Recently BMW announced a partnership with Nuance Communications (NASDAQ: NUAN) to put voice recognition software in all BMW cars. Although unconfirmed it is widely suspected that Apple (NASDAQ: AAPL) uses Nuance Communication software for their SIRI. Given that Apple only started selling the iPhone 4S since late October, it is likely that Apple will sell many more Nuance-Embeded products. These companies are just a small part of a long, increasing more »

  • This Stock Could be a Double

    By Kyle Farrah - July 16, 2012 | Tickers: KO, KRFT, PEP, SODA, WMT

    Last week I wrote up a piece on SodaStream International (NASDAQ: SODA) here.  Today I will discuss why I think it can double to its 52 week high of $80 a share within the next two years.

    … but first a bit of history

    From its IPO in late 2010 shares of SodaStream immediately skyrocketed. The company went up from its IPO price of $20, rose and consolidated three times, and more »

  • 5 Reasons We Shouldn't Fear China

    By Kyle Farrah - July 8, 2012 | Tickers: FB, FXI, MCD, SBUX, YUM | Editor's Choice

    The U.S. has many problems that need to be addressed. The national debt is at 15.8 TRILLION Dollars. That’s equal to over $50,000 for each taxpayer. Our country ranks 28th in math and science, and regulation is crippling the business world. The U.S., which had once occupied the number one spot for economic freedom, now has moved down to only tenth place. There are many more »

  • GNC vs. Vitamin Shoppe: The Better Buy

    By Kyle Farrah - June 29, 2012 | Tickers: GNC, PETM, RAD, VSI, WMT

    The vitamin supplement industry is expected to grow by 4% a year through 2015 according to the Nutrition Business Journal (NBJ), with the vitamins and sports segments expected to grow even quicker. Taking advantage of this trend towards personal health are two companies that stand on the forefront of the supplement industry. GNC Holdings (NYSE: GNC) and Vitamin Shoppe (NYSE: VSI) are the two largest players in the industry, with more »

  • After a Wild Ride, SodaStream Still Looks Like a Screaming Buy

    By Kyle Farrah - June 25, 2012 | Tickers: KO, KRFT, MNST, PEP, SODA

    This past month SodaStream International (NASDAQ: SODA) fell below $30 a share, nearing its 52 week low of $27.60. This is significantly below its 52 week high of $79.72, which it hit around this time last year. Despite the setback in share price, SODA has grown its top line by over 50% and its adjusted EPS by over 57% from the same period last year. The stock has more »