Once you get past the hype, there's little chance for long-term gain with this stock.
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China and India provide the means for growth.
Starbucks' growth opportunities are much more limited in the U.S. than they once were. (What's next, opening new stores within existing stores?) But Jason Moser says not to worry. The international scene provides plenty of high-energy opportunity.
Rex Moore, Motley Fool Top Stocks Editor
Not long ago I spoke with Roger Friedman about a few companies on my watch list. Today I am ready to put some money behind one of those companies on my list and add some globally caffeinated brand power to my Rising Star portfolio.
We all know the story. Starbucks (SBUX) is the iconic coffee brand known the world over. Trendy and delicious, it has worked its way into more than 50 countries around the globe, and I think it's just getting started.
These picks are also for the competition on Wall Street Survivor.
This is Part 3 of my 10 picks for my challenge to the students of Charlotte Latin and their competition in the Stock Market Game. They can buy and sell as they please, but I'll just buy 10 stocks and let them ride for the 10-week competition.
Here are my next three picks and the reasons I added them to my portfolio.
They were added Monday, and the reasons and charts are as of that day.
Novo Nordisk (NVO)
- 100% Barchart.com technical buy signal
- Trend Spotter (tm) buy signal
- 4 new highs and up 10.01% in the last month
- Relative Strength Index 69.97% and rising
- Trades around 122.30 with a 50 day moving average of 111.88
Trian's private-equity bid for FDO could bode well for fellow discounter BJ's Wholesale Club.
By Jeanine Poggi, TheStreet
Shares of Family Dollar were surging more than 20% Wednesday on a buyout offer from Nelson Peltz's Trian fund of $55 to $60 a share. Those terms would make a Family Dollar LBO worth up to $7 billion. Trian is the company's largest shareholder, with an 8% stake.
Meanwhile, the deal provides upside to a potential private-equity buyout of BJ's Wholesale Club (BJ), says Janney Capital Markets analyst David Strasser.
Electronic Arts could see sales dip by 5.5 million copies as football faces a work stoppage next year.
But gamers, and EA shareholders, could have a rude awakening this year, thanks to the looming lockout in professional football. With no NFL season, we may see the end to a long and successful run for the video game as well.
"Madden NFL 2011" was the second-best-selling game in the U.S. last year, beat only by Activision Blizzard's (ATVI) "Call of Duty: Black Ops." The football franchise sold 5.5 million copies in 2010, making it a big hit for businesses and clearly a big hit on home video game consoles as well.
Investors have been missing out on opportunities, scared off by the drumbeat of negativity that has accompanied this market rally.
Where is that darned commercial-real -estate crash? Where did it go? Wasn't it supposed to have happened a year ago? Didn't it threaten to bring down the entire banking system in part two of the housing crisis?
And where's the collapse of real-estate investment trusts? Weren't they just an accident waiting to happen, overleveraged, undercapitalized? Where are the huge losses they were supposed to generate?
Or how about the overbuilding in hotels and apartments -- shouldn't they have affected the balance sheets of every lender? Weren't there too many timeshares built, too many hotels to count, most of them empty?
These are the questions people seem afraid to ask, or maybe they don't want to embarrass the legion of folks who told us this was the other shoe. I feel like taking off my shoe and banging it on the table and telling the people who made a cottage industry out of being real-estate Cassandras that we will bury you. Where's Nikita Khrushchev when you need him?
Banco Bilbao has seen its domestic market share plummet. But it may have new opportunities amid sector reform.
The draconian reform of Spain's undercapitalized caja banking sector is shaping up as a major opportunity for Spain's big international banks, Banco Santander (STD) and Banco Bilbao Vizcaya Argentaria (BBVA).
The biggest opportunity lies with Banco Bilbao, I think, because it has neglected its home market for the last 10 years and the troubles at the cajas give the bank a chance to rebuild a domestic market share that has fallen to 11% from 16% a decade ago.
I own Banco Santander in my Dividend Income portfolio, where it's up 18.3% since I added it on May 28, 2010. (The trailing 12-month yield is 6.65%.) Today, Feb. 15, I'm adding Banco Bilao Vizcaya Argentaria to my Jubak's Picks portfolio.
Spain's cajas, the country's unlisted savings banks, are being forced into reform by Spanish finance minister Elena Salgado, who has taken the job of fixing the sector away from the Bank of Spain.
Two senators want to ban chew from Major League Baseball.
Two U.S. senators are ready to end that relationship, calling for a ban on chew and other tobacco products in professional baseball. "MLB is undoubtedly complicit in attracting many young people to try smokeless tobacco after seeing their baseball heroes chew tobacco," the Democratic senators, Dick Durbin and Frank Lautenberg, wrote in a letter to commissioner Bud Selig.
The senators raise some interesting questions. Do baseball players implicitly encourage kids to use chewing tobacco? If so, how much does baseball help stocks like Altria Group (MO) and Reynolds American (RAI)? Both shares, by the way, dropped slightly in trading after the senators released their letter.
The secretly guarded formula for the world's most popular beverage was published by NPR's 'This American Life.'
By Miriam Marcus Reimer, TheStreet
"The formula for Coca-Cola is one of the most jealously guarded trade secrets in the world," the radio program's Web site wrote. "Locked in a vault in Atlanta. Supposedly unreplicable. But we think we may have found the original recipe."
To find the top secret 125-year-old recipe This American Life turned to a 1979 edition of the Atlanta Journal-Constitution, a newspaper in Coca-Cola's hometown. Apparently page 2B of the Feb. 18 edition contained a photo depicting a hand-written copy of John Pemberton's original recipe in a leather-bound recipe book, a book that contained other ointment and medicinal formulas and was passed down for generations to family and friends.
Yesterday I explained the Stock Market Game for students and gave you the first 3 picks of the 10 stocks I like for the Game. Here are the next 3
Yesterday I shared with you information about the Stock Market Game for students across the country. During the next 10 weeks I'll update you on how the teams I'm mentoring at Charlotte Latin in Charlotte , NC are doing in the competition and what the students are learning.
The next 3 stocks I put into my portfolio and the factors I considered are as follows:
- 100% Barchart technical buy signal
- Trend Spotter (tm) buy signal
- 9 new highs and up 13.21% in the last month
- Relative Strength Index 78.29% and rising
- Trades around 46.99 with a 50 day moving average of 42.10
J.D. Power projects global light vehicle sales to hit a record 76.5 million in 2011.
By Ted Reed, TheStreet
The consulting firm said it expects global light vehicle sales of 76.5 million units in 2011, 6% higher than the existing record of 72 million light vehicles sold in 2010.
The report is one more sign that the world's primary manufacturing industry is poised for continuing gains during the current year.
The company now blows away all other techs in terms of market value.
Apple's market value is now at $330.9 billion, about $102 billion higher than Microsoft's value. That's huge. The market cap of Hewlett-Packard (HPQ) is only $105 billion, writes MG Siegler at TechCrunch. "Apple is now worth an HP more than every other tech company," Siegler adds.
Apple and Microsoft both had market caps of about $227 billion in May, Siegler writes. But since then, Apple has gained more than $100 billion in value, while Microsoft has gained almost $2 billion. (Microsoft owns and publishes MSN Money.)
Microsoft's growth has been so slow, in fact, that it could end up getting passed by Google (GOOG) and perhaps even IBM (IBM), Siegler writes.
Give your portfolio a kick with this sodas-and-snacks specialist.
Today, Alyce Lomax brings a little John Belushi to her socially responsible portfolio: "No Coke. Pepsi!" So pop a top and read how Pepsi's innovative CEO is bringing new ideas to an old stalwart.
Rex Moore, Motley Fool Top Stocks Editor
Given my Rising Star portfolio's focus on socially responsible investing for the long term, a little temporary bearishness on Pepsi merely offers me a reasonable price for this high-quality household name.
Two funds draw on the strengths of a troubled sector while paying out steady dividends.
By Don Dion, TheStreet
Despite facing staggering headwinds, the domestic marketplace has rebounded impressively from the depths of the recent recession. But while conditions appear to be improving across many sectors, there are still corners of this market that have me concerned.
Real estate, for instance, is one region that I feel will continue to be tricky to navigate, and it must be approached with extreme caution.
With exchange-traded funds, this slice of the market can be targeted from a number of angles, allowing investors to capture pockets of strength.
Residential real estate remains particularly worrisome as oversupply issues continue to weigh heavily on its long-term prospects. Homebuilder-focused funds such as the iShares Dow Jones U.S. Home Construction Index Fund (ITB) and SPDR S&P Homebuilders ETF (XHB) will likely experience volatility as the market sorts these issues out.
Analysts rank the banking behemoth as their favorite Dow stock for 2011.
By Jake Lynch, TheStreet
JPMorgan Chase (JPM) ranks as analysts' favorite Dow stock for 2011. The New York global bank receives 28 "buy" ratings and five "holds." About 85% of researchers expect the stock to outperform U.S. indexes in the next 12 months.
During the fourth quarter, JPMorgan's adjusted earnings, or profit excluding one-time items, surged 83% to $1.12, exceeding analysts' consensus estimate by 12%. Revenue, at $24 billion, missed the consensus narrowly.
JPMorgan continued to strengthen its balance sheet during the fourth quarter. Its Tier 1 common ratio clocked in at 9.8%, and its Tier 3 ratio hit 7%. At quarter's end, the bank held $33 billion in credit reserves, with a loan-loss-coverage ratio of 4.5% of total loans. JPMorgan's global franchise is improving, with the retail financial-services and card-services divisions swinging from year-earlier losses to quarterly profits.
These companies have built customer loyalty, so they can pass along rising food costs without losing business.
Wall Street, which was blindsided by the performance of all four, seems not to understand that these are not traditional supermarkets like Safeway(SWY), not traditional food purveyors like ConAgra(CAG) or Kraft(KFT), and not regular restaurant chains like Brinker International (EAT) or Darden Restaurants(DRI) or McDonald's(MCD) or Wendy's(WEN). They defy easy characterizations and simple price-to-earnings-multiple analyses.
Jack Hartung, the CFO of Chipotle, came out and said it on my show Friday. The company's healthful-eating Food With Integrity program allows it more than enough leeway to keep sales strong without raising prices. These companies aren't nearly as levered to commodity pricing -- though bearish investors endlessly try to force those concerns onto them -- as they are to loyalty.
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[BRIEFING.COM] There wasn't a lot of excitement in the stock market today and there is nothing wrong with that. After rallying in broad-based fashion on Friday, the major indices stood their ground (for the most part) amid a lack of conviction from buyers and sellers alike.
Today wasn't a case so much of the stock market going up as it was a case of some influential stocks going up to keep the major indices on a winning path. In fact, decliners were just about even with ... More
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