Shmulik Karpf

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  • Why Did Ackman Invest $2.2 billion In This Company?

    By Shmulik Karpf - August 6, 2013 | Tickers: APD, PX, TGT

    Hedge-fund billionaire Bill Ackman has just made his largest investment ever. Recently, Ackman announced that his hedge fund, Pershing Square Capital Management, had spent around $2.2 billion to acquire a 9.8% stake in Air Products & Chemicals (NYSE: APD), the world's largest supplier of hydrogen and helium. Ackman is notorious for having some pretty unique investment ideas, and he's also extremely selective. This is an excellent opportunity more »

  • How You Could Make 22% a Year With This Chipmaker

    By Shmulik Karpf - August 5, 2013 | Tickers: INTC

    From time to time, Mr. Market gives us a chance to make an exceptionally high return on our invested capital by using an options strategy. In the case at hand, we can sell put options on giant chipmaker Intel and earn 5.5% by having to wait only 3 months. Repeat this trade four times a year, and you're looking at a whopping 22% annualized -- on a relatively boring more »

  • Earn Great Income With Upside Potential

    By Shmulik Karpf - August 5, 2013 | Tickers: EPD, KMR, OKS

    Note: This article has been amended to correct Enterprise Products Partners dividend yield.

    A 0% interest rate environment has created a crowd of hungry-for-yield investors. With rates so low, you have two options -- either stash your money in CDs earning close to nothing, or invest in highly speculative investments. Well, now there's also a third way: invest your money in financial vehicles called MLPs.

    These partnerships will reward you more »

  • How Abundant Natural Gas Can Make You Rich

    By Shmulik Karpf - August 5, 2013 | Tickers: CLNE, F, WPRT

    Over the past few years, the price of natural gas (NG) has been hit hard due to massive capital investments in well drilling. The current low price and abundance of natural gas will help it become a major transportation fuel. There's one small company that makes the technology that allows engines to run on natural gas. By investing early in Westport Innovations (NASDAQ: WPRT), you are positioning yourself more »

  • 1 Prudent Play on the Chipmaker Market

    By Shmulik Karpf - July 30, 2013 | Tickers: INTC, KLAC, TSM

    We are living in an era of "hyperinvention." We all want our PCs (and tablets) to operate faster and perform a greater number of tasks simultaneously. There's no doubt in my mind that demand for faster microprocessors will increase exponentially over time. There's one service company whose sole role in life is to make sure that production lines are flawless, and that microprocessors are manufactured at top speed more »

  • The Upcoming Challenges to the Solar Industry

    By Shmulik Karpf - July 24, 2013 | Tickers: FSLR, SCTY, SPWR

    The sun has many shades, and solar companies come in different colors. Some companies make money by producing electricity from solar resources and then selling it to third parties. It's a "utility-like" form of business. That's the core business of First Solar (NASDAQ: FSLR), for instance. According to the company's statements, its objective is to "reduce the cost of solar electricity to levels that compete on a more »

  • Buffett Is Silent About This Investment

    By Shmulik Karpf - July 23, 2013 | Tickers: BRK-B, BRK-A, BYDDY.PK

    Mr. Buffett, the famous Chairman and CEO of Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B), is famous for sharing his investment wisdom with the little man. He likes to discuss many of his stock investments in the open, and he's a great fan and advocate of transparency. Over the years, many people have become better investors by carefully listening to Buffett and reading his annual letters to shareholders. But there more »

  • Microsoft Too Unloved, Airlines Too Loved

    By Shmulik Karpf - July 23, 2013 | Tickers: MSFT, LUV, UAL

    On Friday, Mr. Market was down on the world's largest software company, Microsoft (NASDAQ: MSFT).

    Shares of "Mr. Softy" fell nearly 12% after it reported its fourth-quarter earnings. The company missed analysts' expectations on both earnings and revenue. Sales of its Windows software disappointed. And Microsoft took a $900 million accounting charge related to its Surface tablet.

    In contrast to Microsoft, airline companies are flying high. Shares of companies more »

  • Housing Is Back...Observe Thy Leader!

    By Shmulik Karpf - July 23, 2013 | Tickers: SBY, BX, TWO

    It's always a good idea to pay attention to what the world’s largest private-equity firm is doing with its business. That's because it's usually the first canary to sing the song of a new business trend. Back in November 2012, the boss of Blackstone Group (NYSE: BX) had called the bottom in the housing market. Specifically, he said that "This is the kind of thing that more »

  • Pay Close Attention to Goldman Sachs' Earnings

    By Shmulik Karpf - July 23, 2013 | Tickers: BRK-B, BRK-A, GM, GS

    A slew of corporate earnings announcements have recently marked the opening session of Q2 earnings. The positive note by many companies pushed the market to a new all-time high. One company that's always worth paying attention to is Goldman Sachs (NYSE: GS), the octopus of the financial world.

    Why Goldman matters

    Goldman has always been at the center of any major financial trend. It's basically a financial octopus more »

  • Don't Lose Sleep Over Microsoft!

    By Shmulik Karpf - July 23, 2013 | Tickers: AMD, INTC, MSFT

    It's earnings season and everyone is glued to their screens. Investors' fingers are extremely itchy at this time of the year, only waiting for the next opportunity to buy or dump shares at a moment's notice. On July 18, the story du jour was Microsoft's (NASDAQ: MSFT) Q4 earnings announcement. 

    The disappointment

    Mr. Softy reported net income of $0.66 per share on revenue of $19.9 more »

  • Is Netflix Gaming Its Cash Flow Statement?

    By Shmulik Karpf - July 23, 2013 | Tickers: AMZN, NFLX, OUTR

    Any investor knows that he must conduct a rigorous analysis on the cash flow statement of a company before making any serious investment decision. The statement of cash flow in the financial report is designed to properly represent the inflows and outflows of cash during the most recent period and is usually a better gauge of the financial position of a company than the standard EPS. I consider the cash more »

  • Drink Your Way To Profits With This Stock!

    By Shmulik Karpf - July 22, 2013 | Tickers: BF-B, STZ, DEO | Editor's Choice

    There aren't many consumer products that sell well in good and bad times alike. Coca-Cola, for instance, is a good example of such a consumer product. People will consume the sugary carbonated water whether the economy prospers or not. Wine and spirits are another good example for an "all- weather" beverage. When times are good, people might spend more on fancy wines. But when recession looms, people simply won more »

  • The Trend Is Not the Friend of These Companies

    By Shmulik Karpf - July 22, 2013 | Tickers: ACI, BTU, SU

    In case you haven't been paying attention, the U.S is undergoing a major energy revolution. Since 2003, investors and institutions have invested in drilling on an unprecedented scale. As a result of this massive capital investment, the U.S. produced the most natural gas in history. The previous peak was in 1971. Over the past four years, gas production is up 20%. With all the new supply coming more »

  • Buffett's Exceptionally Poor Timing

    By Shmulik Karpf - July 19, 2013 | Tickers: BRK-B, JNJ

    Johnson & Johnson (NYSE: JNJ) has been a long-time darling of Warren Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B). JNJ has long been considered the "blue chip" of the pharmaceutical world. With a great cash flow generation, a fortress-like balance sheet, and top-selling drugs such as Tylenol, JNJ was sure to outperform the market. Or at least that's what Buffett figured. This time, the Sage of Omaha got it more »

  • Should You Buy Oracle on This Dip?

    By Shmulik Karpf - July 18, 2013 | Tickers: IBM, MSFT, ORCL

    On June 21, shares of Oracle (NYSE: ORCLNASDAQ: ORCL)),  the largest maker of database software, fell to a seven-month low after sales missed estimates for a second straight quarter, as customers shifted spending to competitors’ Web-based business tools. Analysts were expecting fourth quarter sales of $11.1 billion, versus the company's actual sales of $11 billion. In response, shares slumped 9.3% on heavy volume.

    Why, then, should you be more »

  • What to Make of Coca-Cola's Earnings

    By Shmulik Karpf - July 18, 2013 | Tickers: BRK-B, BRK-A, KO, PEP

    On July 16, giant beverage company Coca-Cola (NYSE: KO) released its quarterly report. It didn't matter that its earnings-per-share of $0.63 were in line with expectations. It also didn't matter that second quarter volume grew 1% and year-to-date volume grew 3%. Of no interest was the company's reported success in penetrating emerging markets like Thailand, Nigeria, and India, where Coke's brand volume grew by 24 more »

  • An Opportunity to Make 15% a Year on Microsoft

    By Shmulik Karpf - July 18, 2013 | Tickers: BRK-B, HPQ, MSFT

    The wind of change is blowing through the headquarters of Microsoft (NASDAQ: MSFT). Since ValueAct, an activist hedge fund, announced that it had bought a $2 billion stake in Microsoft, there have been persistent rumors of attempts to unlock value from the giant. Recently, an analyst at Nomura alluded that Microsoft could actually buy back 20% of its stock. He also suggested that the company provide tax on a go-forward more »

  • This Is One of the Best Businesses in the World

    By Shmulik Karpf - July 17, 2013 | Tickers: FORR, IT, XRX

    I often find myself thinking about the perfect business: one that exhibits all the qualities that will ensure a highly profitable operation for years to come. It must have certain qualities to distinguish it from all the other businesses out there. It mustn't need a whole lot of assets to make money. That's because assets need maintenance, and a pricey overhead will certainly hurt the bottom-line. It must more »

  • Is Noodles & Company the Next Success Story?

    By Shmulik Karpf - July 16, 2013 | Tickers: CMG, DNKN, NDLS

    The hottest initial public offering in 2013 wasn’t a Silicon Valley tech firm or a biotechnology company from India. It was a low-end pasta joint based in Denver that went public two weeks ago. The initial public offering, the first from any restaurant this year, was a blockbuster despite a volatile market that has led several companies to cut the size of their IPOs or scrap them altogether. Shares more »

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