George Soros, the man who famously broke the Bank of England on Black Wednesday, earning more than $1 billion in profit on the trade, has been rumored to have taken a large stake in Herbalife (NYSE: HLF). In my opinion, this is a move on Soros's behalf to try to ignite a short squeeze in Herbalife shares.
Short interest in Herbalife currently stands at more than 30 million shares more »
Shares of Dell (NASDAQ: DELL) are currently caught up in the middle of a bitter showdown, with founder and CEO Michael Dell & Silver Lake on one side, and legendary investor Carl Icahn on the other. Despite the uncertain outlook, there are three reasons why you should consider buying Dell shares.
1. Bet on Carl Icahn
In my opinion, the most important factor in the Dell equation is Icahn's involvement more »
Thus far, social media investing has proved a stock pickers game as stocks such as LinkedIn Corp (NYSE: LNKD) and Yelp have moved sharply higher since coming public while other well known social media plays such as Facebook (NASDAQ: FB) and Groupon have traded sharply lower following their IPOs. I believe there is currently one social media stock to avoid and one to buy.
Facebook is my favorite social media more »
Shares of the two pure-play pizza companies, Papa Johns (NASDAQ: PZZA) and Domino's Pizza (NYSE: DPZ) have both been hot of late, trading at all-time highs. However, because of their current valuations and long-term business prospects, I do not believe they have a place in your investment portfolio.
As shown by the chart below, both pizza companies are trading at their highest respective valuations ever. In the past more »
Over the past few weeks oil prices have moved sharply higher for a variety of reasons including tension in the middle east, lower than expected inventories, and increasing demand. So far, the stock market has not reacted negatively to this possibly negative development. However, there are specific stocks that investors should be cautious about because of rising oil prices.
As oil prices continue to rise, investors looking to play the move should consider Freeport-McMoRan Copper & Gold (NYSE: FCX). For most of its history, Freeport had been considered a pure-play copper company with a little bit of gold exposure. However, that all changed when Freeport announced plans to buy McMoran Exploration and Plains Petroleum for a combined total of $9 billion.
The initial reaction to the deal was quite negative more »
So far, 2013 has been very unfriendly to commodity and commodity stock investors. Commodity price weakness has led to massive sell-offs in many commodity-producing companies. Certainly, in the future some of these beaten-down names will look like bargains at current prices, while others will likely be out of business. Just as the assault on financial stocks in 2008 created some great opportunities so to has the current sell-off in commodities more »
Since coming public in 2012, shares of Del Frisco's Restaurant Group (NASDAQ: DFRG) are up more than 50%.
Del Frisco's operates three distinct but similar restaurant concepts: Del Frisco's Double Eagle Steakhouse, Del Frisco's Grille, and Sullivan's Steakhouse. To better understand Del Frisco's as a whole, let's take a closer look at each of Del Frisco's three concepts:
Del Frisco's more »
Over the past few months, as shown by the chart below, the insurance sector has been hot. The primary reason for the move higher is the increase in interest rates. It must be noted that insurance companies benefit from increasing rates as it increases the amount of interest that can be earned on risk-free assets, such as Treasury bonds, that insurance companies hold. While I do not think the sector-wide more »
Over the past decade, as shown by the chart below, shares of the world's largest online travel booking site, Priceline (NASDAQ: PCLN), are up more than 3,000%. However, there are reasons why I believe the rally can continue.
Despite trading at an all-time high, as shown by the chart below, Priceline is not trading close to historic highs on a forward PE-ratio basis more »
Since coming public in 2011, shares of Renren Inc (NYSE: RENN) are down more than 80%. There are four reasons why I believe Renren is an interesting investment at its current price.
Chinese Internet Stocks Gaining Momentum
Over the past month, as shown by the chart below, despite all-time highs in equity indices, utility stocks have been under selling pressure.
This should not come as a complete surprise given the defensive nature of the industry. However, it should be noted that prior to this recent sell-off the utility sector had been among market leaders, not laggards. There are a few reasons behind the more »
Following the results, as shown by the chart below, shares of Netflix surged higher.
- 2 million new U.S. streaming customers
- Adjusted earnings of 31 cents per share compared to forecast of 19 cents per share
- 1 million new streaming customers in markets outside the U.S. including Canada, Europe, and Latin America
- $1 billion revenue
On March 7, 2013, in a piece entitled MGIC and Radian Surge: Updating My Outlook, I said:
I am maintaining my long-term bullish outlook for both MTG and RDN. However, I would not buy shares right now. Investors should look to buy either MTG or RDN on a significant pullback or after both stocks have gone through a consolidation period.
Over the past few months, despite the stock market's rally to an all-time high, shares of gold mining companies have been under severe selling pressure. However, at this point, in my opinion, it is time to consider buying some of these beaten down names. In particular, Gold Fields Ltd (NYSE: GFI), Goldcorp (NYSE: GG), and Agnico Eagle Mines Ltd (NYSE: AEM)
As shown by the chart below, GFI more »
On Tuesday, as shown by the chart below, shares of the major airlines, US Airways (NYSE: LCC), United Continental, Delta (NYSE: DAL), and Southwest all traded sharply lower despite a more than eighty-point gain during the trading session by the Dow Jones Industrial Average.
Delta Leads The Way
On February 14, 2013, as I suggested was possible a month earlier, Berkshire Hathaway (NYSE: BRK-B) announced a joint deal with Brazilian based 3G ventures to buy H.J. Heinz (NYSE: HNZ) for $23.2 billion. However, despite this large deal, Buffett has said he is still looking for more acquisitions. I believe Darden Restaurants (NYSE: DRI) would be a good fit for Berkshire.
Buffett Buys What He Knows
One more »
Just days ago, AMR and US Airways (NYSE: LCC) announced their much anticipated merger creating the world's largest airline. After the merger is completed, the new AMR will surpass both Delta and United Continental (UAL) to become the world's largest with just over 20% of domestic market share. Following AMR, Delta, United, Southwest, and the fifth largest domestic carrier, JetBlue (NASDAQ: JBLU). Without question, this merger will have more »
As of the most recently reported figures (Jan. 31, 2013), short interest in Safeway stood at more than 82 million shares, or 32.3% of the float. The high short interest has led me to look at what more »
Over the past year, despite a more than 14% move higher in the S&P 500, shares of CSX Corp (NYSE: CSX) are down. There are three reasons to consider buying CSX now.
As shown by the chart below, CSX is trading close to historic lows in terms of PE ratio. Given this, I believe the downside is relatively small while the upside is big more »
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