Despite missing analysts' expected earnings and revenues this quarter, Illinois Tool Works (NYSE: ITW) surpassed everyone's expectations by recently announcing the authorization of a $6 billion buyback plan and a 10% increase in the quarterly dividend. Based on today's market cap, $6 billion is good for 20% of the company and a major catalyst for future returns.
Below, I have provided a review of the company's cash more »
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By Victor Yeong - September 3, 2013
Initiating coverage on Biosensors (SGX : B20)
Biosensors International Limited is a biotechnology company which develops, manufactures and commercializes medical devices used in cardiology. It has been beaten down in recent days due to its dismay 1Q 14 results, and lack of faith shown by key stakeholders.
Financial statements of the company were properly drawn up in accordance with accounting convention. After applying more conservative growth rates than what the management more »
I know it’s fun and perhaps even fascinating to talk about the Syria oil crisis. But to me, there may be an even bigger crisis lurking underneath the fastest growing economy. China has expanded relentlessly, and as a result, the cost to the environment has been devastating. So, not so surprisingly, the Chinese government has come up with a 180 billion dollar plan, in order to tackle the issue more »
Rating agencies and preferred stock investors, while using different methods, usually judge the investment risk of a preferred stock with very little disparity. Where agency ratings come in the form of a quantitative rating on a scale , investor conclusions about risk are reflected in today's market price (and hence yield).
Preferred stocks that are viewed as having similar risk frequently have similar yields -- same risk, same reward.
There more »
A crown corporation reborn
Canadian National Railway (NYSE: CNI) has achieved rail-road prominence, some say dominance, in a fairly short period of time. In 1995, when CN was brought to market in one of Canada’s most successful initial public offerings (IPO), it was the poster-child for inefficiency.
Today, their story is much different. Over the past 17 years, CN has grown revenue at a compound annual growth rate of more »
Five Below (NASDAQ: FIVE) is a relatively new company, but has already had its share price increase by over a third since shares began trading publicly, well above the about 20% gain for the Nasdaq for the same period. However, YTD Five Below’s share price has only risen by a little under 15%, compared to nearly 19% for the Nasdaq. On Sept. 9 the company will be reporting their more »
Prior to initiating a major trade – traders/investors get their “game-face” on. After hours and hours of research, plus taking into consideration the potential return on investment, the investor/trader will initiate a buy-order. The sweat trickles down the temple of the forehead as a constipated expression emerges on the face of a trader. We call this the game-face of Wall Street.
But over on Main Street, game-face means... Okay more »
By Erik Kobayashi-Solomon - September 1, 2013
Two Imperatives for a Modern CEO
There are a few rules that a CEO must follow if he or she is to continue to pull down the big bucks. The two relevant to this discussion are:
- Get your workers to produce more for less money
- Make sure EPS is growing from quarter to quarter
Unfortunately, these two imperatives are often at cross purposes. A CEO knows that he can get more »
BioFuel Energy (NASDAQ: BIOF), an ethanol production company, reported its Q2 results on August 12, 2013. It reported continued large net losses, negative gross profits, and expiration of its grace period on its debt 2 weeks prior. This used to be a company that held quarterly conference calls for investors. Now management doesn't even make formal comments in its press releases.
BIOF is now considering selling the entire operating more »
BP (NYSE: BP) keeps on fighting and appealing its own settlement for the business economic loss claims, mostly challenging the interpretation of the settlement by court-appointed administrator Patrick Juneau. BP has lost every attempt and appeal thus far. On Friday, BP added a new challenge asking for the entire settlement to be overturned.
Steve Herman, co-head of the committee of lawyers representing spill victims stated, “BP’s got the money more »
A Case for Shorting Tesla Motors
Tesla (TSLA) has gained a lot of attention, especially since it announced its 2013 Q2 earnings. The company has seen notable revenue growth, though its stock price has risen as if it were set to challenge mainstream car manufactures. Recent media coverage has shown the spotlight on Tesla's ability to double its revenue each year, two years in a row. This has increased more »
We've all seen it. Medical marijuana stocks are flying into the stratosphere as a new industry in America is born. What's not to get excited about? There are only a handful of public companies breaking into this new, multi-billion dollar industry with high hopes and expectations of giant windfalls in profits for all. As this article explains, nobody needs to sell the industry -- it sells itself! It sells more »
Welcome to the 21st century, where automation involves transitioning everyday responsibilities to computers. Recently, the NASDAQ OMX Group (NASDAQ: NDAQ) had a lot of negative backlash for shutting down the exchange for three hours.
Talk about, difficulties in execution, right? Is this the new norm, and the answer is… of course. Remember – code is made by humans, and humans are prone to error, so it wouldn’t be surprising more »
In his bestselling book "Fooling Some of the People All of the Time: A Long Short Story," David Einhorn discusses making gobs of money shorting stocks of troubled companies. While I'm no David Einhorn, I think the canary in the coal mine at Arch Coal (NYSE: ACI) needs to be monitored, closely.
Headquartered in St. Louis, Missouri, Arch Coal is a global leader in coal production and distribution. The more »
With over 200 million overweight or obese Americans, the $60 billion weight loss market is an attractive space for investors looking for a company with a better mousetrap. Losing weight has been one of the most difficult challenges ever faced but now with the Solta Medical, Inc. (NASDAQ: SLTM), breakthrough losing weight is easier and light years faster than ever before. Solta makes it instantaneous and pain free with no more »
Sunny Money: Solar Stocks Performance Review
The only thing hotter than the sun in 2013 have been the prices of solar stocks. Since the first of the year the MAC Global Solar Energy Index is up over a whopping 80%. By comparison, in this same period of time the S&P 500 Index has returned a respectable 13.8%.
So what’s going on in the solar industry to drive more »
By Lisa Myers - August 30, 2013
CEO B. Ben Baldaza described Spirit (Nasdaq: SAVE) as the "Low cost, low fare, high choice strategy to airlines, "We offer customers the opportunity to save money when they help us save money." This strategy allows Spirit to deliver among the best margins in the business.
Spirit serves primarily the leisure traveler in 80% of the largest cities. Their strategy for 2013 is to increase their capacity 21.1% over more »
By Nico Inberg - August 30, 2013
Palladium is the new gold. If you're looking at the charts of palladium compared with gold, you can see palladium prices are back at the 2011 levels. Gold has slumped more than 25% since 2011 and there are a couple of reasons why palladium is a much better investment than gold nowadays.
- 1. 72% of demand for gold is from investors, where more than 80% of demand more »
Sotheby’s (NYSE: BID) has to be one of the most compelling investment opportunities around, when considering the fact that it is only one of two major auction houses within the world for high-end collectible pieces of art.
Why bother in an age of internet
So, the idea of buying high-end art is sort of similar to poker at a casino. But instead, we associate high-end art purchases with “investing more »
see Attached file.more »
If you are a value investor, certain metrics should be assessed before investing in any venture. Current and past earning numbers are some of the aspects that should be carefully looked at before making a decision as to which positions to hold. With that being said, Wal-Mart (NYSE: WMT), Target Corporation (NYSE: TGT), and Best Buy Company (NYSE: BBY) are proving to be solid long term investments. Looking at the more »
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