Once you get past the hype, there's little chance for long-term gain with this stock.
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Time to take a long-short absolute-return approach to your trading.
Stocks gained more ground last week on the strength of powerful earnings and merger and acquisition activity. The S&P 500 added 1% to its impressive streak of gains in 2011.
I’ve seen this sort of market before. Just when you think stocks should go down, they go up. What gives?
The bottom line is that the further removed we get from the recession and financial crisis, the more confident investors become. More and more investors are buying stocks for any number of reasons.
The cycle is as old as the hills, but at some point the music will indeed stop or at least take a breather.
That’s why I will once again this week recommend the ProShares Short Russell 2000 (RWM) for ETF traders.
A new fund that tracks the industry is an expensive marketing ploy, critics say.
The fund is called First Trust Nasdaq CEA Smartphone Index(FONE), and the ETF is bound to generate some excitement, as investors already are enthused about smart phones and sector leaders like Apple (AAPL).
But critics are already saying it's unnecessary and too narrow. It tracks the Nasdaq OMX CEA smart-phone index, which is made up of 73 companies, Morningstar reports. U.S. companies, including Apple and Motorola Solutions (MSI), are the bulk of the index, with about 44% of assets. Companies from Taiwan, Japan and South Korea are also represented.
Analysts say tens of millions of tablet computers will appear at companies within 5 years.
The list of companies that now use the iPad in their offices is growing, including General Electric (GE), Wells Fargo (WFM) and Medtronic (MDT), The New York Times reports. Apple says at least 80% of Fortune 100 companies are using or testing the iPad.
But this is just the beginning for tablet computers in the workplace. As companies such as Hewlett-Packard (HPQ) and Research in Motion (RIMM) debut their own tablets this year, the devices will spring up across the office.
One analyst told the Times he expects tens of millions of tablets in American offices by 2015. "It will be the fastest uptake of any device in the enterprise ever," he added. "Faster than PCs, faster than laptops and faster than smart phones."
After months of underperformance compared with US equities, emerging-market stocks are moving higher on renewed dollar weakness.
One of the most popular investing themes of the past few years looks ready for a resurrection. I'm talking about foreign stocks, which attracted a lot of attention in 2009 and 2010 because of the exposure they offered to fast-growing economies like China and Brazil.
All that changed over the past six months as a new problem bubbled to the surface: inflation, driven by higher food and fuel prices. There are structural reasons foreign economies were more sensitive to rising prices. Alas, as the likes of China and Brazil tightened policy in response -- via interest-rate hikes, capital controls and tighter bank capital requirements -- investors fled out of fear of diminished economic growth. At the same time, the U.S. economy revved up.
As a result, since Oct. 1, the S&P 500 has climbed nearly 18%, while the iShares Emerging Markets (EEM) has added only 4.3%. Investors responded by pulling cash out of emerging-market mutual funds in a big way. Year to date, they've pulled a fifth of the record-setting $95 billion they put to work in EM during 2010, according to EPFR data. But now, for the first time since December, emerging-market stocks are perking up.
The company has farmed nearly a third of its new plane to other countries, and that's created some headaches.
Could Boeing's excessive reliance on outsourcing be to blame? That's the topic explored by Michael Hiltzik of The Los Angeles Times this week. About 30% of the Dreamliner is made in other countries -- far more than the 5% in Boeing's well-known 747 airplane.
Now, if Boeing outsourced well and saved money in the process, that would be one thing. But it didn't, and the list of mistakes it made in enlisting offshore help serves as a warning to other companies hoping to cut costs.
Some pieces made by foreign suppliers didn't fit together, Hiltzik writes. Vendors couldn't provide enough parts on time, contributing to delays. Boeing began asking subcontractors to do some of the engineering, and one supplier didn't even have an engineering staff.
What Wall Street is missing about the computer maker.
Most of us Fools are very interested in unloved, unknown, and undervalued stocks. Dell isn't exactly unknown, but according to contributor Chris Baines, two out of three ain't bad -- it's absolutely great.
Rex Moore, Motley Fool Top Stocks Editor
Please excuse my enthusiasm. I've been screaming at the top of my lungs about Dell's (DELL) undervaluation ever since I joined the Fool crew (and long before that on CAPS). I even wrote an open letter to Larry Ellison pointing out what a wonderful acquisition Dell would make. Unlike many un-Foolish commentators I like to put my money where my mouth is (and vice versa): I'm a Dell owner.
If you want to put new money into commodities, there are better copper plays than BHP Billiton.
Germany's takeover of the NYSE, Pepsi's plunge into the food wars and J.C. Penney's Google gaming were among the week's biggest business blunders.
By TheStreet Staff, TheStreet
Here is this week's roundup of the dumbest actions on Wall Street.
5. Das NYSE is kaput
Wall Street on Tuesday went apoplectic over the announcement that Germany's Deutsche Boerse would buy a controlling stake in NYSE Euronext (NYX). Shortly after the announcement the media was filled with an interesting mix of whining, xenophobia and self loathing from all sides of the political spectrum.
Donald Trump was quoted as saying "I think it's ridiculous that this country would allow Germany to buy our New York Stock Exchange. It's another black eye for the United States -- victory for Germany, not the United States."
Of course, he may have a grudge against Germany ever since Deutsche Bank (DB) sued him for defaulting on a construction loan in 2008. You know those Germans, expecting to be paid back. Jerks.
A California company that makes pot-growing equipment hopes to go public this year.
A California outfit called GrowOp Technology plans an initial public offering later this year, according to its website. The company is not a marijuana grower. Instead, it makes growing equipment that includes a 53-foot high-tech tractor trailer designed for growing pot. The trailers are outfitted with a hydroponic growing system and can be monitored remotely with a computer or iPhone.
Trailers come in three sizes and cost between $10,000 and $70,000, the company said.
GrowOp appears to be taking its IPO very seriously. Its founder, Derek Peterson, was an investment banker at Wachovia and Morgan Stanley (MS), reports 24/7 Wall St. The company's advisory committee includes a fund manager, an investment banker and the head of a corporate advisory firm.
After a rough holiday season, the retailer considers using Wal-Mart's model of everyday low prices.
For years, Best Buy was doing fine with its tactical pricing strategy. Yes, its regular prices were high, but the chain would offer blowout discounts on specific items to entice customers. The promotional strategy worked well, especially when Circuit City imploded.
But now shoppers are getting wise. They price-check on their smart phones. They know what deal they want. And they know that items will eventually get into Best Buy's sale rotation. So they wait.
Shoppers are so smart, in fact, that Best Buy is questioning its entire pricing strategy. "Why do we carry inventory when we train consumers only to buy it" on sale, executive Mike Vitelli asked at a recent staff meeting, Bloomberg reports.
Another executive admitted to Bloomberg that without the "everyday pricing" model favored by Wal-Mart (WMT) and others, shoppers will wait it out. "Our inventory sits and waits for that next promotional moment," said the executive, Rick Rommel.
A single fund holds some of the Oracle's most popular big-company investments.
By Don Dion, TheStreet
It has been a busy week for Warren Buffett fans.
On top of Buffett's visit to the White House -- where he, George H.W. Bush, Maya Angelou and others were honored by President Barack Obama and presented with the Presidential Medal of Freedom -- the Berkshire Hathaway (BRK.A)13F filing was released to the public.
Oberservers have spent the week fiercely digging through the document in hopes of uncovering clues to Buffett's view of the global market.
In the final months of 2010, Buffett made some tweaks to his legendary portfolio. Overall, the famously bullish investor ended the quarter as a net seller, unloading shares of a number of his holdings and further increasing the size of his already substantial pile of cash.
Doomsayers and critics abound, but they are missing the point -- and missing opportunities to make money.
You can learn so much from Twitter. You can learn how total amateurs think (there are a lot of good people out there, too, but that's not the point of this post). You can learn how people are adept at losing money and have a total loser's mind-set. You can see how far people need to go to stay in the game and make money. In fact, you want to kick them out of the game!
Let me detail some of the loser attitudes I am seeing. By far the most common one is "Is this a top?" for the stock they want to know about. A top? This kind of illogic is something we seek to combat every day in Action Alerts Plus. If you think the fundamentals are deteriorating, that sales are decelerating, that margins are being compressed, that the end markets are getting weak, that the execution is getting sloppy, that the competition is heating up, then you very well might have a top on your hands.
If you think that gross margins are good and maybe getting better and sales are strong, you most likely don't have a top on your hands. You have a stock that can churn higher that might have excellent earnings power in the out years.
Boosted by improvement in the construction and forestry equipment units, Deere enjoys a blowout first quarter.
Traditionally sleepy sectors like healthcare are finding favor again. Here's why, along with a few fast moving stocks in the group.
A shift is underway. Long ignored stocks in defensive sectors are perking up. Specifically, I'm seeing activity among health care issues. As a group, the sector is recovering from a period of underperformance and demonstrating relative strength vs. the broad market for the first time since last summer. Why the shift?
For one, there is an argument to be made that as the economic growth cycle and stock bull market matures, investors will start to transition from ultra-cyclical stocks like semiconductors into more defensive names.
There are other reasons too, including attractive valuations and high "sector idiosyncratic risk" -- something I explain below. As all of this normalizes, there will be opportunities for those who can identify the best companies with the brightest growth prospects. Here are a few stocks that I think are good candidates.
The company is reportedly hogging touch panels from Taiwanese manufacturers, making it difficult for rivals to secure enough supply.
Apple wants to ship 40 million iPads this year, Digitimes reports, and it's buying what it can from major touch-panel makers Wintek and TPK. Now, second-tier tablet makers "are already out of the game," sources tell Digitimes.
There's tight supply left for Research in Motion (RIMM), Motorola (MSI) and Hewlett-Packard (HPQ), all of whom are debuting tablet devices this year. Apple's iPad already has a formidable market lead, and other companies need volume in order to catch up. "Sources from tablet PC makers also pointed out that the component shortage is causing their shipment volumes to be unable to catch up with their orders, especially for second-tier players," Digitimes reported.
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The Fed may start tapering in just a few months. Here are a few of the likely winners and losers.
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[BRIEFING.COM] A solid November employment report translated into a solid day of gains for the major averages. While there was some talk that the encouraging job growth raised the odds of the Fed announcing a tapering at its December meeting, the message of the markets today was either that it didn't believe there would be a tapering this month or that it doesn't fear a tapering this month.
It was just one day, yet there was ample meaning wrapped up in the connection that the 10-yr ... More
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