Stocks have rallied 177%, and while calling a top is the easiest thing to do, it might not be the most accurate, Cramer says.
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Gold is a must-own position.
By Jamie Dlugosch, InvestorPlace.com
Exchange traded funds to buy this week are coming out of the gold industry.
Last week went beyond the celebration of the expected election that brought Washington closer to the right and a Federal Reserve that formally announced its intentions to buy $600 billion of treasury securities. On Friday the market move up was reinforced by a jobs number that greatly exceeded expectations.
That news alone sets the table for the must own exchange traded fund. In the wake of the Federal Reserve’s quantitative easing program, the economy is creating jobs at a better than expected clip. Can anyone say inflation and a falling dollar?
Even after rising 100% in the past year, footwear maker Deckers could double again if it taps into the Chinese market.
Maybe Deckers (DECK) is finally getting its due. Barclay's recommendation Friday finally tells the story that this high-growth stock does not deserve to sell at 13 times earnings if you back out the cash.
Deckers has always been viewed as a fad stock because of its Uggs line, which is always supposed to be one quarter away from stalling out. But Barclay's makes the point that not only is it unlikely to stall out, but it might be accelerating with international growth. It's got only 2% of its sales in China, and the Barclay's piece speculates that China could be a huge market for the company, something I agree with.
Plus, Barclay's was willing to say that Deckers isn't just a one-product brand. Teva is a huge reignited business, and it isn't even factored in to the equation.
The handbag company sees soaring sales in China, the U.S. and Japan. Europe is the next frontier.
The company ended its June 2010 fiscal year with 20% of the U.S. handbag market and a 16% market share in Japan. Sales doubled to $100 million in China (where the company has 4% of the accessories market), and the company began to increase its penetration of the U.K. and continental European markets.
In the September quarter (the first quarter of the company's 2011 fiscal year), the company reaped early returns from that strategy and continued to push its global initiatives.
Shares would look undervalued at their expected price of $26 to $29.
As part of Morningstar's IPO Research Services, Morningstar auto analyst Dave Whiston recently released a company report and preliminary fair-value estimate ahead of GM's public offering later this month.
Although the "Government Motors" stigma is likely to hang over General Motors Co. for years, we think GM's car models have their best quality and design in decades. The company is already a leader in truck models, so a fully competitive lineup, combined with a much smaller cost base, leads us to think that GM will be printing money as vehicle demand recovers.
We think GM's earnings potential is excellent because the firm finally has a healthy North American unit and can focus its U.S. marketing efforts on four brands instead of eight. The most critical cost-saving measure was setting up a voluntary employees' beneficiary association for the retiree health-care costs of the United Auto Workers.
A number of factors could push equities higher and take the wind out of emerging-market equities.
The dollar is rising Friday in reaction to stronger economic news in the United States (the October jobs report was very strong) and weakness in Europe (Irish bond yields continue to climb on budget concerns). As a result, foreign stocks are under pressure, while U.S. equities push higher.
Is this a one-day fluke or the start of a long-term trend? For most of the year, the winning trade was to sell the dollar short and buy foreign stocks. That looks to be changing now.
Over the past two months, on a relative performance basis, U.S. equities have closed the gap with foreign equities -- a possible sign that Wall Street traders are beginning to reposition their portfolios.
The company wants its workers to use its own smart phone instead.
Here's another pain point for Research In Motion (RIMM): Dell is dumping 25,000 BlackBerry devices in favor of its own line of smart phones.
It makes sense. You gotta use what you're trying to sell. Eat your own dog food, as the tech world calls it.
But the last thing RIM needs right now is large-scale ship abandonments such as this one. Shares of the company were down 3% Friday on the news.
And Dell (DELL) is pushing the stakes even higher.
Biofuels are going to be a significant part of the road transport fuel mix going forward. Here are four exchange-traded funds to gain exposure to the trend.
By Kevin Grewal, TheStreet
As governments continue to place an emphasis on renewable energy, the prospects for corn and sugar cane-based ethanol are promising, giving support to exchange-traded funds like Teucrium CORN (CORN), PowerShares Global Agriculture (PAGG), Market Vectors Agribusiness (MOO) and ELEMENTS MLCX Biofuels ETN (FUE).
In Brazil, the main source of fuel in automobiles is already ethanol as most of the nation's vehicles can either run solely on ethanol or utilize a flex-fuel system that can run on a mix of gasoline and ethanol. The success of Brazil's ethanol use has many other nations looking at it as a viable power source.
In Sweden, which has the highest number of ethanol stations in the EU, a law has been enacted which requires every gasoline station in the country to provide an alternative fuel. Furthermore, oil companies in Australia have started to provide E10 fuel -- a blend of 90% petroleum and 10% ethanol -- in gas stations, and Thailand has started actively selling E20, an 80/20 blend of petroleum and ethanol, as well as E85 fuel blends.
Shares of the coffee chain rise after earnings beat expectations and an analyst upgrades the stock.
By Miriam Marcus Reimer, TheStreet
S&P restaurant analyst Erik Kolb upgraded his rating on Starbucks to hold from sell, noting its better-than-expected earnings and growth in comparable same-store sales, driven by higher traffic and average ticket price.
Fiscal 2011 guidance "gives us greater confidence in the viability of SBUX's turnaround efforts," he noted. "We now see 500 new store openings and slightly higher operating margins leading to continued EPS growth. However, currency is likely to remain a headwind."
San Francisco targets the Happy Meal as a child obesity culprit. Voters say no to CEOs. Struggling MGM Resorts distances itself from struggling MGM Studios.
Here's our roundup of the dumbest actions in business this week.
5. Happy Meal? More like Sad Meal
San Francisco's Board of Supervisors put on its Food Police badges and set out to bring McDonald's (MCD) -- and the dastardly Happy Meal -- to justice.
In a measure sponsored by supervisor Eric Mar, the board on Tuesday voted to ban toy giveaways in meals that it said failed to meet certain nutrition requirements. Under the ban, restaurants cannot sell an "incentive item" with any food item that has excessive calories, sodium or fat. Fast-food meal packages with a toy, such as the beloved Happy Meal, must contain less than 600 calories in total and also include fruits and veggies.
Key points in General Motors' IPO documents show the US government needs to get out of the company -- and knows it.
Jeff Reeves, editor of InvestorPlace.com
It's hard enough for investors to wrap their heads around a typical IPO. Combing through a startup's numbers, purported risks and legal disclaimers is a daunting task.
And if you want to add another layer of confusion to a stock offering, consider the unique and complicated situation of automaker General Motors. GM is ready to go public again for the first time since its 2009 bailout, with the U.S. government set to sell a third of its shares in about two weeks. In preparation for this IPO, the government has filed its formal prospectus -- and made some rather shocking revelations in it.
- Related Article: Data Proves GOP Better for Stocks
Most noteworthy are three clear signs in this SEC filing that the government knows Uncle Sam's influence is bad for General Motors -- as well as any initial investors, too.
High-end goods are selling because the wealthy feel safer now that their portfolios have rebounded. Midlevel retailers like Macy's and Target may be the next to benefit.
"Let me tell you about the very rich. They are different from you and me." I always thought F. Scott Fitzgerald was speaking about how the rich handled themselves in "The Rich Boy," which begins with that observation.
Now I know he was speaking about portfolios and their impact on shopping, notably at Tiffany (TIF), Whole Foods (WFMI), Coach (COH), Nordstrom (JWN) and Williams-Sonoma (WSM) -- places where higher costs get passed on and nobody blinks. These are all stores where inflation is taken in stride because prices -- albeit higher because of the cost of silver or cotton or food -- don't inhibit profits and in fact somehow seem to improve them.
We've been in a barbell economy for certain since the great bull market of 2009 reignited itself when the polls showed Republicans would take the House. All five of the merchants mentioned put up truly amazing numbers, and the common thread among them has to be stabilization of jobs and bonuses for the wealthy.
Middleby is going strong, beating estimates and gaining, but on a historical basis the stock is expensive.
Nothing unusual about these shares in the company, which designs, manufactures, and sells commercial food-service and food- processing equipment.
And that's exactly the point: At this stage of the rally, I'd like to keep close watch on valuations and sell individual stocks when a specific price seems to be getting out of line. I'd rather leave a few dollars on the table now than risk a major loss.
The company is trying its hardest to turn Slurpees into a beverage of national unity.
The company is hoping to get big mileage out of the so-called "Slurpee summit," also known as the proposed meeting between President Obama and leaders from both parties. 7-Eleven wants the Slurpee summit to be as big as the "beer summit" of last July.
"This is a rare opportunity for a brand," a 7-Eleven spokeswoman told USA Today. "We don't want to be opportunistic, but nothing has ever been this big for Slurpee."
Stories about the death of commercial real estate and retail REITs have been just plain wrong.
"If you think the housing bust is bad, wait until you see the blow-up in commercial real estate." Remember those stories? I don't believe the people who wrote them do, or there would at least be some touch of irony to stories with headlines such as "Vornado Results Suggest Commercial Sector on Rebound" in Wednesday's Wall Street Journal.
Of course, the rebound is so old that it really isn't news anymore. We know this was only about the third great quarter from Vornado (VNO). We also saw terrific numbers from competitors Boston Properties (BXP) and SL Green Realty (SLG).
It's not just about office space. We have seen endless positive quarters from Federal Realty Investment Trust (FRT), Simon Property (SPG) and Tanger Factory Outlet (SKT). As bad as the overbuild in office real estate had been, the retail REITs were supposed to be vast wastelands. But when the No. 1 mall developer, the No. 1 shopping center developer and the No. 1 outlet developer are all getting rate raises and are almost all fully leased, that bearish call really smarts.
The numbers are about what Wall Street expected.
$600 billion by June -- that's the number.
Add in the reinvestment of interest, and you get about $110 billion a month.
The Federal Reserve's announcement on quantitative easing came in at around the Wall Street consensus of $100 billion a month in Fed buying. (For more on what Wall Street expected, see this post.)
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The solid report comes a month after the retailer closed all of its Canadian operations.
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[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
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