Since she joined in July 2012, CEO Marissa Mayer has acquired dozens of startups.
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Medical marijuana is already massively profitable for a handful of states, so it's no surprise pharmaceutical giants want in on the action.
Though it may not be politically correct to talk about the benefits of legalizing marijuana, the bottom line is that many folks are believers in the power of pot as a medication. And those believers include Big Pharma executives looking to boost their bottom lines.
Consider that medical marijuana sales in the U.S. already will reach $1.7 billion this year, with nearly $250 million coming from Colorado, according to a report released in March. Further, the report predicts that medical marijuana sales will reach $8.9 billion if 20 more states allow its sale for medical use.
If the U.S. government ever legalizes marijuana, sales would probably make the $11 billion Pfizer (PFE) raked in on Lipitor worldwide last year look like chump change.
It's time for investors to transition their portfolios for the proverbial summer rally.
With May selling behind us it is time to drift over to the long side of the market. Selling in May and going away played out well for those short the market or with portfolios properly hedged.
Now that summer is coming, investors can position for the proverbial summer rally. The economy may be showing signs of weakness, but corporate earnings are still strong. It is those profits or the promise thereof that will lift stocks.
June is somewhat of a quiet month as the second quarter winds down. I expect investors to nibble at stocks here in anticipation of good profit numbers to be released in July. I would buy the rumor.
The ETF to buy this week is the iShares S&P North America Technology and Multimedia Fund (IGN).
The nation will get the money it needs only if it cedes control of its finances to the fund. That should help the euro rally and lead to a pretty good day for stocks.
For the last year, Greece has strung out everyone on austerity measures that were supposed to make a difference but haven't. Now, at last, it looks like the IMF has a free hand. That means, basically, that if you want the big IMF money you have to turn over your finances to the IMF, just as the IMF has done whenever it truly takes hold and has to part with big money because the IMF doesn't lose money and it always gets its man.
The euro can rally on that for a while because what it says is the rest of Europe is not going to protect Greece and it is not kicking the issue down the road gently but forcefully which could mean, for some, the end of the "break the euro" faction for the foreseeable future.
Despite bearish headlines, the markets were surprisingly strong...but what does that mean heading into June?
It is important to understand that even a much-followed stock like Cisco will suffer from inefficiency.
To function in everyday life, our brains are used to simplifying complex problems, through pattern recognition. We become accustomed to drawing straight lines when we see two points, and if we get a third or fourth point that fits the line, our confidence about the longevity (continuity) of the line increases exponentially. We become excited, even certain, about prospects of the company we’ve invested in when its stock has gone up for a long period of time, while we often dismiss stocks that have declined or flat-lined, especially if that happened for a considerable period of time.
The bank pared holdings of more than half of its touted stocks, filings show.
By Jake Lynch, TheStreet
A so-called Chinese Wall is supposed to exist between investment banks' research and asset-management divisions, but recent calls, especially coming from subprime-securities proponent Goldman Sachs (GS), warrant further scrutiny.
Goldman helped to catalyze the recent commodity sell-off as its researchers expected little upside when the economy hit a soft patch. Crude oil tumbled beneath $100 on that report. Then, three days ago, with few fundamental changes in the demand outlook, Goldman reversed its stance, advising clients to buy.
This flip-flopping from Wall Street's most closely followed researcher is being perceived by some as client-fleecing since the bank is able to trade in proprietary accounts before it releases research and the markets react, as they often do to Goldman's calls.
The BlackBerry maker faces a class-action lawsuit and shrinking market share as analysts cut their price targets on the stock.
This wasn't supposed to happen. RIM just launched the PlayBook tablet, its answer to the Apple (AAPL) iPad. And U.S. businesses are recovering and spending more, which should have been just the thing the BlackBerry maker needed.
Check out this analyst discussion about the stock, which one calls "a disaster." Post continues after video:
After weeks of downward progress for stocks and other assets, renewed weakness in the greenback has resurrected bullish spirits.
To summarize the correction in risk assets over the past month, you could boil it down to a stronger dollar. It all started with the assassination of Osama Bin Laden on the night of May 1. Suddenly America seemed stronger and more secure, sending the greenback higher.
And as a result, hedge fund types who had borrowed dollars to bet on silver, crude oil and stocks scrambled to close their trades. The results were the mini-crashes in silver and crude, significant drops in foreign stocks and a slow bleed lower for U.S. equities. Adding to the pressure has been a steady march of poor economic data.
But things are changing now as the dollar wilts again, setting the stage for a multiweek rally before the reality of slowing economic fundamentals and the end of the Fed's $600 billion QE2 stimulus sets in. Here's why, along with a few recommendations to play the rebound.
AIG's IPO is 'an utter debacle,' Sony hackers go on a global rampage and Arianna Huffington oversells AOL in this week's round-up of business buffoonery.
Here is this week's roundup of the dumbest actions on Wall Street.
5. AIG: The anti-LinkedIn IPO
Apparently, the words AIG and IPO don't get investors beating down the doors to get a piece of the action. Gee whiz, I wonder why?
While closely monitoring market action for clues about what lies ahead, more aggressive traders can look to profit from ETFs tracking the tech sector and gold.
Not if you mix shareholder returns into the equation.
By Tim Beyers
CEO compensation is a hot topic, especially now that the Dodd-Frank Act requires say-on-pay votes. With CEO pay and performance seemingly disconnected at the following company, the Fool invites you to judge for yourself whether this business's boss actually deserves such a hefty paycheck.
Few things are worse for investors than owning a piece of an "oh yeah" tech company. These are the Rodney Dangerfields of their industries. They've been around forever. They've even done impressive work in years past. But lately, whenever their names come up in conversation, it's almost always with the caveat, "oh yeah, I forgot about them." Adobe (ADBE) has become that kind of company, but you wouldn't know it from CEO Shantanu Narayen's pay package.
By owning both cyclical financial stocks and steady consumer staples, the Oracle can perform well in any market.
By Don Dion, TheStreet
As Warren Buffett has quipped, his favorite holding period for any investment is "forever." By sticking to a long-term time horizon when structuring his legendary investing portfolio, the famed billionaire has been able to weather numerous short-term shake-ups during his long career.
In examining his current holdings lineup, it is possible to uncover clues that will help retail investors mimic him and profit over the long run.
Buffett's portfolio taps into a wide range of market sectors, providing exposure to industries such as energy and health care. The largest chunks of the Berkshire Hathaway (BRK.A) portfolio, however, are dedicated to companies in the financial and consumer sectors.
These potential bargains could heat up.
By Jamie Dlugosch, StockPickr
I live in the frozen tundra of Minneapolis, where we are slowly -- and I mean slowly -- emerging from a dastardly long winter and a spring that hasn't sprung. It is hard to believe that summer, as marked by Memorial Day weekend, is right around the corner.
While many market participants slow down their investment activity in summer, I think there is plenty of money to be made by staying active. In the current environment, stocks are exhibiting weakness. Sellers are dominating the action, and pessimism is rising.
This is actually quite bullish for stocks. Yes, many risks remain, but current fiscal and monetary policy is conducive to economic growth. It may not be the strongest recovery on record, but we are growing, and we're likely to continue to do so.
We may get an up day if Portuguese bankers and German finance officials can stay out of the headlines.
The rhythm of the European crisis seems to have taken a different turn.
Rather than waking every morning to a story about how some Portuguese banker is worried, or a Greek minister is fretting, or unknown Spanish and German finance officials are digging in their heels or alternately letting go of them, the continent seems to have gone silent.
It is almost as if they can turn it off and turn it on again.
Some of this could be that there is a pre-honeymoon lull for Christian Lagarde, as she is almost certain to get the International Monetary Fund job. Some of it is because China says it is willing to buy the bonds of some of these countries. And some of it is a recognition that the German banks, at least according to Fitch, can handle even a Greek default, and that was quite surprising.
Economists were surprised by sluggish growth in the first quarter. Is this a blip or a trend?
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John Stumpf acknowledges that growth has been slow, but he says he's still optimistic.
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[BRIEFING.COM] The major averages spent the entire session in a steady downtrend, but despite persistent selling pressure, today's losses were limited in scope. The Dow, S&P 500, and Nasdaq shed between 0.2% and 0.3% while the Russell 2000 lagged, falling 0.9%.
The underperformance of the Russell 2000 was likely owed in part to tax-loss selling, which tends to pick up this time of year. Small-caps often feel that pinch in a stronger fashion than large-cap issues since individual ... More
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