Ted Cooper

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  • This Brewer Is Cheap No Matter What Kind of Beer Americans Like

    By Ted Cooper - August 19, 2013 | Tickers: BUD, SAM, TAP

    Investing is an undertaking with inherent uncertainties; since the value of a company is the present value of its future cash flows, the ability to discern a company's future earning power is a crucial attribute for good investing. For many companies, this is a difficult undertaking. However, for Molson Coors Brewing (NYSE: TAP), the future may be good enough to justify its stock price no matter what happens.

    Traditional more »

  • This Stock Will Continue to Dominate Its Market

    By Ted Cooper - August 19, 2013 | Tickers: MGI, WU, XOOM

    Shares of Western Union (NYSE: WU) have been on a tear since Barron's published a bullish article on the stock in May. The stock traded hands for less than $13 just last fall after management announced a price-cutting plan to regain lost market share in the Mexico corridor and other geographies in which competition had eroded the company's dominance. A debate over the company's long-term viability has more »

  • Fund Manager of the Decade Reveals His Favorite Stocks

    By Ted Cooper - August 15, 2013 | Tickers: AIG, BAC, SHLD

    Morningstar's mutual fund manager of the decade, Bruce Berkowitz, has an incredible track record that makes his 13-F a must-read for all investors. His mutual fund, Fairholme Fund, has outperformed the S&P 500 by an average of 10.4% per year since 2000, losing to the index in only two of the last 13 years.

    Berkowitz is extremely concentrated by mutual fund standards, often holding no more than more »

  • Recession-Proof Your Portfolio

    By Ted Cooper - August 15, 2013 | Tickers: AAP, PFE, WM

    It is becoming clear that the Federal Reserve cannot continue to artificially prop up asset prices in a terrible economic environment. The data suggest that the U.S. could be headed for another recession in the coming quarters. Therefore, investors would be wise to recession-proof their portfolios.

    Some companies are better at weathering downturns than others because their products either are critical to the functioning of their customers or cater more »

  • Is It Fair to Block This Airline Merger?

    By Ted Cooper - August 15, 2013 | Tickers: AAMRQ.PK, LUV, LCC

    The U.S. Department of Justice's lawsuit to block the AMR (NASDAQOTH: AAMRQ.PK) US Airways (NYSE: LCC) merger comes after a string of airline combinations over the last several years. The DoJ contends that the merger is anti-competitive, seemingly regretting its allowance of past airline mergers to proceed. Now, AMR and US Airways are paying the price for being late to the party.

    Unable to compete

    AMR is currently more »

  • 1 Beat and 2 Misses Shed Light on the U.S. Economy

    By Ted Cooper - August 15, 2013 | Tickers: DE, M, SEAS

    Quarterly earnings not only offer insight into individual companies' health, but also the condition of other companies and the state of the economy at large. Macy's (NYSE: M) and SeaWorld Entertainment (NYSE: SEAS) reported earnings below expectations, while Deere (NYSE: DE) came in above expectations. These results have implications for the respective companies, as well as the entire market.

    Retail expectations are too high

    Despite strong retail sales across more »

  • What Is Amazon Worth?

    By Ted Cooper - August 15, 2013 | Tickers: AMZN, EBAY

    No matter how poorly the economy is doing, there will always be plenty of growth stocks for investors to choose among. Growth stocks tend to get the spotlight because of the wide-ranging estimates -- usually very optimistic estimates -- about their futures. However, sometimes the market is not as optimistic as it should be, or at least it offers growth at a reasonable price. Such is the case today for Amazon (NASDAQ: AMZNmore »)

  • The Latest Economic Data Bodes Well For Auto Manufacturers

    By Ted Cooper - August 14, 2013 | Tickers: F, GM, TM

    According to Bloomberg, retail sales rose in July for the fourth straight month, suggesting that Americans now have more disposable income than they did to start the year. This bodes well for companies across the entire U.S. economy, but some benefit more than others.

    For instance, the improving balance sheets of American consumers has led to strong unit sales volumes at auto dealers in June and July. During the more »

  • Follow This Legendary Investor Into These 3 Stocks

    By Ted Cooper - August 14, 2013 | Tickers: BRK-B, CSCO, MSFT

    Arnold Van Den Berg may not be a household name, but the success of his 30+ year-old mutual fund company, Century Management, has made him one of the most admired investors among industry insiders. A student of Benjamin Graham, Van Den Berg's contrarian style has enabled him to compound investors' money at 9.2% per year after fees over the last 15 years, trouncing the S&P 500 by more »

  • Is This Stock the Buy of the Decade?

    By Ted Cooper - August 13, 2013 | Tickers: JCP, M, WMT

    Ever since his hand-picked CEO was fired after leading J.C. Penney (NYSE: JCP) to a 25% year-over-year sales decline, Bill Ackman's moves have become increasingly desperate. Just four months after asking the old CEO to come back to the firm, the activist investor sent a letter to the board asking for the removal of the current CEO and Chairman.

    Ackman's erratic behavior is indicative of the dire more »

  • A Legendary Growth Investor Keeps Buying These Stocks

    By Ted Cooper - August 12, 2013 | Tickers: BCR, KO, SYY

    Donald Yacktman, manager of his eponymous $21 billion mutual fund company, has compounded his clients' money at 10.1% per annum over the last two decades -- the S&P 500 returned just over 8% in the same period. So when Yacktman buys a stock, investors should take note.

    Yacktman combines the best features of growth and value investing by purchasing growing companies at low prices. He looks for good businesses more »

  • Washington Post: Not Just a Newspaper Company

    By Ted Cooper - August 12, 2013 | Tickers: APOL, DTV, WPO

    Monday's announcement that Jeff Bezos would buy the Washington Post (the newspaper, not the whole company) for $250 million came as a surprise to most observers, who could not imagine the Washington Post (NYSE: WPO) without the Washington Post. But what appears to be a lack of respect for tradition -- the Graham family has controlled the Post for nearly 80 years -- may have been the best move for shareholders more »

  • 3 Dividend Stocks to Take Into 2014

    By Ted Cooper - August 8, 2013 | Tickers: CVS, XOM, WAG

    As the back-half of 2013 gets underway, it is time for investors to position their portfolios for 2014. In addition to the usual full-year earnings releases in the first half of the year, a new Federal Reserve Chairman will be appointed to replace the outgoing Ben Bernanke.

    In light of the fragile state of the U.S. economy and the prospect of Federal Reserve tapering, investors need to be ready more »

  • Earnings Misses Provide Insight Into These Companies' Futures

    By Ted Cooper - August 8, 2013 | Tickers: FSLR, YGE, Z

    Long-term investors often find it tempting to write off one bad quarter in their favorite holding as an aberration -- something for those Wall Street traders to worry about, not true investors. However, First Solar (NASDAQ: FSLR) and Zillow's (NASDAQ: Z) recent earnings disappointments shed light onto their long-term futures.

    The best company in an uncertain industry

    First Solar is down close to 15% due to an earnings miss -- it more »

  • How to Profit From Obesity

    By Ted Cooper - August 8, 2013 | Tickers: BAX, DVA, FMS

    Obesity rates are soaring in the United States. According to the American Heart Association, 155 million adults and 24 million children are overweight or obese. Type 2 diabetes is being diagnosed at record rates. Some 61% of overweight children have at least one risk factor for heart disease. And fewer than 25% of Americans eat a healthy diet and exercise regularly.

    As the unemployment rate rises and fast food becomes more »

  • Is Lululemon the Next Crocs?

    By Ted Cooper - August 7, 2013 | Tickers: CROX, GPS, LULU

    Investors have a tendency to operate at extremes; instead of acknowledging the positives and negatives of each investment opportunity, they have a habit of viewing stocks as either the best investment of the decade or the stupidest one of the century. Mention the threat of Samsung to an Apple fanatic and you will recognize this bias immediately.

    Unbridled optimism about a stock goes hand-in-hand with quickly-growing companies with popular consumer more »

  • Three Companies That Will Perform Well No Matter What

    By Ted Cooper - August 7, 2013 | Tickers: BBBY, ORCL, SNDK

    Economic uncertainty has caused many businesses to remain uncommitted to future plans. Instead of investing heavily in growth or scaling down operations in preparation for disaster, a lot of companies are hoarding cash while they wait to see what happens next.

    It is unclear whether the economy will make a significant improvement or plunge into recession once again -- and even less clear when the move will happen -- but, eventually, something more »

  • A Simple Way to Value Banks

    By Ted Cooper - August 6, 2013 | Tickers: BAC, C, JPM, WFC

    Banks are notoriously difficult to value. They are so different from non-financial companies that many investors decide to ignore the industry altogether. However, doing so may keep investors from seeing some of the better opportunities the market has to offer.

    Instead of building a complex earnings model using the reams of data provided in a bank's 10-Ks, long-term investors can get away with using a handy shortcut. Since the more »

  • Three Stocks to Own Forever

    By Ted Cooper - August 6, 2013 | Tickers: MMM, CL, PEP

    Ever since Warren Buffett made his conversion to owning great businesses, he has stressed that his favorite holding period is forever. Great businesses re-invest growth within their moats, thereby compounding shareholder value at a high rate for a long time.

    It hardly matters what price you pay for a truly exceptional business in 2013; it will have created so much value by 2043 that your purchase price will not have more »

  • The Single Biggest Risk Facing Railroads Today

    By Ted Cooper - August 6, 2013 | Tickers: CNI, CSX, NSC

    Coal is the single most important commodity to the U.S. railroad industry. It accounts for nearly one-quarter of revenue among U.S. railroads, more than any other single product.

    Unfortunately, coal is in a secular decline. It now accounts for about 38% of electricity generation in the U.S., down from nearly 50% just six years ago. New discoveries and the widespread use of hydraulic fracturing to economically produce more »

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