Jim Cramer asks, why pay any attention to letters from a manager who lost money in the first quarter?
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The Oracle of Omaha explains how he decided to buy IBM and gives his opinion on the US deficit and the Republican presidential race.
It all started with IBM's annual report, which Buffett read in March. Buffett has read the technology company's annual report every year for 50 years, he tells CNBC in the video below. But this year he got a different perspective when IBM laid out its road map for 2015.
After perusing the report, Buffett read "Who Says Elephants Can't Dance?"by former IBM chief executive Lou Gerstner, Jr. Then he chatted up all the information-technology departments operating under Berkshire Hathaway (BRK.A) to figure out their relationships with IBM.
The retail giant's technology push won't show up in Tuesday's third-quarter results, but could be a catalyst for the stock.
By Jeanine Poggi, TheStreet
Wal-Mart's (WMT) U.S. same-store sales will once again be front and center when the discount giant reports third-quarter results on Tuesday. But there's another key element that will be mostly invisible, at least for now, in the results: its investment in technology.
Currently, Wal-Mart's e-commerce is severely lacking, representing less than 1% of total sales, according to Citi analyst Deborah Weinswig. But the No. 1 retailer has been pouring money into its new @WalmartLabs division, which has assumed responsibility for the company's growth in e-commerce, mobile shopping and social media.
More than two-thirds of the S&P 500 has posted better-than-expected third-quarter earnings. But because so much of those strong numbers depends on overseas sales, the crisis in Europe could stymie further growth.
By Suzanne McGee, The Fiscal Times
On the surface, earnings news for the third quarter has been rosy indeed. With all but a handful of companies in the S&P 500 left to report, more than two-thirds have posted a larger-than-expected increase in profits for the period, while only 10% or so have fallen short of estimates.
But there’s a cloud looming on the horizon. A lot of that growth, as companies like General Electric (GE) discussed when they reported, is coming from overseas markets, especially in emerging markets. GE, for instance, noted that growth in sales in Europe, North America, and Japan is in the low single digits; in emerging markets, it’s in the low double digits.
Speculators should consider this high-risk, high-yielding Israeli wireless-telecom operator.
Despite political tension in the region, Israel is home to one of the most undervalued dividend stocks I know of: Cellcom Israel (CEL).
If your long-term investing goals include generating income and modest capital appreciation, I suggest you dial up some dividends in the Middle East and consider adding some shares to your portfolio.
Investors should keep an eye on exchange-traded funds that own Home Depot, Lowe's and Wal-Mart.
By Don Dion, TheStreet
1. SPDR S&P Homebuilders ETF (XHB)
Housing-related retail giants Home Depot (HD) and Lowe's (LOW) are reporting their earnings and provide outlooks in the closing days of earnings season. The two are notable holdings within the XHB and iShares Dow Jones U.S. Home Construction Index Fund (ITB).
Earnings-related news should impact the performance of this industry during the first half of the week. Meanwhile, economic events such as the housing starts report will drive action during the second half.
The country's power-grid giants could make life harder for automakers by pushing a costly and difficult requirement for electric vehicles.
This will support growth of electric-vehicle (EV) sales and hybrid sales over the medium-term, spelling good news for automakers such as General Motors (GM), Ford (F), Toyota (TM), Honda (HMC) and Tesla Motors (TSLA), which have been investing heavily to develop fuel-efficient and electric vehicles.
With the White House unwilling to back oil or natural gas and a new strain of Republicans opposed to any kind of government involvement in industry, as many as 300,000 energy jobs go begging.
Look, it is one thing to try to block Keystone, the heavy crude pipeline from Canada that some people say could endanger key aquifers in the U.S. I get that. There is always going to be something endangered when you move energy from one place to another. Always. There are a lot of jobs on the line, but I can see where, if the big aquifers can be avoided, you have to try to do so.
Weak chart patterns show that now is no time to be long these shares.
By Tom Aspray, MoneyShow.com
Though the long-term argument suggests there may eventually be a shortage of rare-earth metals, the technical action of the key stocks suggests they are vulnerable to another sharp decline.
Molycorp (MCP), the largest rare-earth stock, was hit hard Friday after reporting earnings after the close on Thursday.
The beverage giant is bullish on the country, seeing an untapped rural market and growing middle class as key growth drivers.
The company sees huge opportunities to grow, with some 700 million people in India living in rural areas. Coca-Cola projects almost a billion people will enter the middle class in the next decade there, and almost 800 million will move to the cities. The beverage giant is bullish on India as it sees the scarcely penetrated rural market and quickly growing middle class as the key drivers for growth.
The same-store sales increase in the company's most recent quarter was driven by a 6% increase in traffic and a 3% increase in the average ticket.
The increases were driven by a 6% increase in traffic and a 3% increase in average ticket. Starbucks wrapped up a fiscal year in which it saw record earnings every quarter and strong same-store sales growth around the world. The earnings release has met with positive investor response; Starbucks' stock price is up 7% since Nov. 3.
Big Blue is set to make big bucks.
Billionaire Warren Buffett, history's greatest investor, has struck again. Monday morning saw numerous reports that the Oracle of Omaha has snapped up a $10 billion stake in IBM (IBM). Like others blessed by Buffett, shares of Big Blue rose on the reports. IBM, though, remains a good buy for investors even with the Buffett bump.
The Armonk, N.Y., company has an attractive valuation even though it has already surged nearly 28% this year. It trades at a price-to-earnings ratio of 14.82, which, though lofty, is below its five-year high of 16.03, according to Reuters.
MGM Resorts is one of the stronger and safer bets in the rebounding industry.
Nongambling folks might not be aware of this, but despite concerns about consumer confidence, gambling and tourism have regained some of their vigor where they were sorely missed: Las Vegas. Yes, the epicenter of gaming and conventions is back. Tourists and gamblers are again visiting The Strip in droves, enlivening cash registers and boosting sales at casinos and hotels.
Widely followed entertainment shows and global sports events continue to be a draw and still happen in Las Vegas, fueling the speed of its comeback. It was in Las Vegas, on Nov. 12, 2011, that boxing Welterweight champion Manny Pacquiao defended his crown and again beat challenger Manuel Maquez in a 12-round fight before a sellout crowd of 16,368.
This bank, tech stock and ETF offer three contrarian plays on the undervalued South Korean market.
Investors have a love-hate relationship with the South Korean market. But South Korea deserves another look from investors who have a long-term perspective.
And while another selloff of South Korean equities could be in the cards, the investment case for South Korea remains persuasive. Here we look at a favorite bank, a technology play on LCD panels and a diversified exchange-traded fund.
HD continues to defy trends of other housing-related stocks.
When you think about companies that are in rough shape after the economic downturn, most of the big names are related to the meltdown in the real-estate market. From banks plagued by bad mortgages like Bank of America (BAC) to builders like Lennar (LEN), the housing crash hurt a host of big-name businesses nationwide.
But you might be surprised to learn that Home Depot (HD) is thriving. While many banks and builders crashed and burned, the home improvement retailer held firm during the worst of the downturn and has rebounded strongly as of late. HD will report its third-quarter profits Tuesday, and many analysts expect too see impressive numbers yet again.
The aircraft maker wins an $18 billion order for 777s. The home improvement retailer posts better-than-expected earnings.
By Joseph Woelfel, TheStreet
Updated at 9:15 a.m. ET
Boeing (BA) shares were rising Monday after the aircraft maker won an order for 50 777s from Dubai airline Emirates. The order, valued at $18 billion, is Boeing's biggest single order in dollar terms. Emirates has options to buy additional planes, which could boost the value of the order to $26 billion.
Lowe's (LOW) said its third-quarter earnings fell 44% to $225 million, or 18 cents a share, including 17 cents of charges related to store closings and discontinued projects. On an adjusted basis, earnings in the quarter were 35 cents a share. The home improvement retailer’s sales rose 2.3% to $11.9 billion. Analysts were expecting Lowe's to earn 33 cents a share in the third quarter on sales of $11.69 billion.
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[BRIEFING.COM] The stock market finished the Wednesday session on a modestly lower note, but it is worth mentioning today's retreat took place after six consecutive gains. The Dow Jones Industrial Average (-0.1%) and S&P 500 (-0.2%) settled not far below their flat lines, while the Nasdaq Composite (-0.8%) lagged throughout the session.
Equity indices started the day in the red, with the Nasdaq showing early weakness as large cap tech names and biotechnology weighed. The technology ... More
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