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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David Marcus, the manager of the Evermore Global Value Fund, says he's seeing the biggest bargains in 20 years in Europe.
By Robert Holmes, TheStreet
David Marcus, the manager of the Evermore Global Value Fund (EVGBX), says alarming news stories about Europe's debt debacle -- including a possible default in Greece -- are creating the biggest bargains in two decades.
As a global value-fund manager, Marcus has put his focus squarely on European stocks, as many stock indexes from Germany to France to Italy are mired in bear markets after plunging on sovereign bankruptcy fears plaguing the continent.
"We're in a world of headline readers, and they see it's pretty bad out there," Marcus says. "What our investors are paying us to do is sift through the headlines and dig deep. There are a lot of problems in Europe. We're finding that while some things are worse than the headlines, there are more opportunities there than I've seen in 20 years."
Mining shares have largely missed out on the metal's recent rally, but some analysts think that's about to change. With video analysis.
By Alix Steel, TheStreet
Gold stocks may have missed the rally in gold prices, but they're poised to hop on the bandwagon.
The changing environment for gold stocks has been a prominent topic at the Denver Gold Forum this year. It was only a year ago that the thought of $2,000 gold was reserved for the more enthusiastic gold bugs. Today that price target is becoming the norm.
"We have about a 40% probability that gold will be over $2,200 next year," says Martin Murenbeeld, the chief economist at DundeeWealth. "We have about a 50% probability that gold will average between $1,950-$2,000 an ounce."
Qwikster, the company's new DVD-by-mail branch, will offer video game rentals. Is this yet another mistake?
By Jeanine Poggi, TheStreet
The company announced Sunday that it is dividing itself into two companies -- one for its DVD-by-mail program, called Qwikster, and another for its streaming service, which will continue to operate under the Netflix banner. As part of Qwikster, subscribers will be able to rent video games for Wii, PlayStation 3 and Xbox 360.
Chief executive Reed Hastings said on Netflix's blog that this will be a video upgrade, which implies subscribers will need to pay more for the service. But Hastings didn't reveal how much more it will cost. Rival GameFly offers the service starting at $15.95 a month, while Blockbuster includes video game rentals in all of its packages, which start at $9.99 a month.
Funds that track transportation, housing and software will be in the spotlight.
By Don Dion, TheStreet
Here are five ETFs to watch this week.
Transportation companty FedEx (FDX) is scheduled to announce its quarterly earnings on Thursday. While FedEx's numbers will generate interest from transports fans, the firm's report and outlook will also provide ample clues on the state of the global markets.
FDX is IYT's second largest holding, representing close to 10% of the fund's total portfolio.
We are beginning to recognize that the sovereign debt crisis will be solved -- just not in a way that is satisfying to anybody.
Some things never get old -- or discounted, for that matter. That's how I am feeling about the sovereign debt crisis.
You put it past you for a couple of days and a lot of money is made. Not a little but a lot. And then it comes back and bites you again because it can't be solved easily. The fact is, though, we are beginning to recognize that it will be solved. It just won't be solved well and in a way that is satisfying to anybody.
In other words, get used to it, it will play out, it will hurt people, but it might not hurt as many stocks as you think.
I am taking this posture because I like to see how players react to the same stimuli over and over. In other words, whenever futures are down off of Europe, do the same people who missed the rally big hold their hands up, point fingers and say "I told you so?"
As often happens, strong bearish sentiment helped boost the market all week, but it’s best to wait to buy until a pullback occurs, which could come as early as mid-week.
By Tom Aspray, MoneyShow.com
The stock market got very close to the key levels in the major stock ETFs Monday, and then spent the rest of the week rebounding. This was in spite of very little in the way of positive news, either on the US economy or the Euro debt crisis.
Some of the Euro pain was lessened last Thursday, after the world’s central bankers moved to offer unlimited dollar funding through the end of the year. This helped the hard-hit European banks, especially those in France, to rebound.
The news on our economy was not a big help. Retail sales were flat and Best Buy (BBY) reported 30% drop in income for the second quarter. Retail sales were hurt by the several days lost because of Hurricane Irene.
A recent survey of economists by The Wall Street Journal sees a 1 in 3 chance the US will slip into a recession. They also put even odds that the euro would breakup.
The Conference Board was even more negative on the economy, as they see a 45% chance that there will be a recession.
Energy Transfer Partners may run into a problem with growing cash distributions.
The bears probably won't be in hibernation next quarter.
By Evan Niu
The self-proclaimed "global leader in wireless innovation" reported gloomy earnings last night. Net income came in at $329 million, or $0.63 per share, dropping nearly 59% from last year's $797 million. Top-line revenue of $4.2 billion dropped by "only" 10% from the previous year, falling short of the $4.5 billion that Wall Street analysts were looking for. Meanwhile, gross margin took a big hit, falling to 38.7% from 44.5%. If you ask me, the only thing that RIM is leading is its own implosion.
The company shipped 200,000 PlayBooks and 10.6 million BlackBerry phones. The (already reduced) estimates called for 562,000 PlayBooks and 11.8 million BlackBerry phones. The discouraging figures don't paint a pretty picture for the future of the company's QNX platform.
Could a Chinese online shopping site really raise that much in a public offering? It seems to think so.
The company is Beijing Jingdong Century Trading Co., which runs the online shopping site 360buy.com. The business is growing at an insane pace, and Jingdong is now expecting to raise a whopping $4 billion to $5 billion from the IPO, The Wall Street Journal reports.
That would totally blow away the $1.9 million that Google (GOOG) raised in its 2004 IPO.
Brian Lazorishak, who heads the Chase Mid-Cap Growth Fund, discusses some of his best-performing holdings.
By Frank Byrt, TheStreet
This year is the moment of truth for mutual fund managers. As the economy slows and stocks fall, managers' strategies are laid bare, and those who can't make money for investors face the firing squad.
The Legg Mason Value Trust (LMVTX), which beat the S&P 500 Index for a record 15 years under Bill Miller, has slumped 10% this year. Ken Heebner's CGM Focus Fund (CGMFX), which used to gain more in one quarter than most funds did in a year, has dropped twice as much as the Value Trust. Even Fidelity's Contrafund (FCNTX) has declined 1.9%. The Boston mutual fund firm's Harry Lange, the manager of the Magellan Fund, was replaced this week because of poor performance.
Brian Lazorishak of the Chase Mid-Cap Growth Fund (CHAMX) is earning his keep. The mutual fund is in the top 2% of its category in terms of performance this year, with a return of 6%, and in the top 1% over the past 12 months, with a 27% gain, as tracked by Morningstar. The S&P 500 ($INX) is down 4% this year and up 8% over the past 12 months.
Why did the state give the television show a tax credit of up to $420,000?
Taxpayers will foot the bill for as much as $420,000 in production costs from the show's 2009 season, the Star-Ledger reports. This week, the state's Economic Development Authority agreed to give the show a film tax credit.
Bolder actions are needed to stop the slow bleed out of the eurozone. For ideas, the region's leaders are turning to measures the US took in 2008.
The European debt crisis is a festering wound on the face of the global economy. Until it heals, the global recovery, which was so strong in 2009 and early 2010, can't continue. After a handful of rescue packages -- two for Greece, one for Ireland and one for Portugal -- eurozone policymakers just can't draw a line under the problem.
Instead, dithering and a lack of big, bold measures -- like those enacted by President George W. Bush during the worst of the 2008 financial crisis -- have allowed speculators to push the currency union to the edge. They're running a flanking maneuver: While officials struggle to implement a new plan hammered out in July to save Greece, hedge fund types are pressuring too-big-too-fail Italy and Spain by pushing up borrowing costs.
The infection has spread to the banking system, which is having a hard time raising cash. The result is a drop in loan activity as banks, especially those in France, hoard capital in an effort to restore confidence. This, in turn, is pushing Europe ever closer to outright recession. What a mess.
Chart patterns indicate that an upcoming pullback in the tech sector will be well supported.
By Tom Aspray, MoneyShow.com
While the S&P 500 and Spyder Trust (SPY) have failed to surpass the 50% retracement resistance from the May highs, the Nasdaq 100 is a different story. Technology stocks have been getting lots of press lately, and many hope that this sector will help turn the market around.
Though the Nasdaq 100 is made up of both technology and biotech stocks, it is the technology space that has been getting the most attention. A closer look at the market internals for the Nasdaq 100, as well as the key chart points and the sub-industry tech groups suggests that we should get a pullback in the next week or so that will provide a better risk/reward entry level for those who are not already long.
A buyout offer could come soon from a private equity firm, a Chinese Internet giant or one of the biggest names in the US tech sector.
By Jeff Reeves, Editor, InvestorPlace.com
On Sept. 6, Carol Bartz was unceremoniously fired from her post as CEO ofYahoo (YHOO). Now that the market has had almost two weeks to digest the sound bites and debate the tech icon's future, there appears to be a clear focus on who willbuy Yahoo, not who will take over as CEO.
Yahoo, of course, stubbornly refused a $44.6 billion buyout offer from Microsoft (MSFT) in early 2008. The company's current market capitalization is less than half that, at about $18.4 billion. The lower price this time around means a much more interesting group of prospective buyers. (Microsoft owns and publishes MSN Money.)
So who could acquire Yahoo? Here are three front-runners, along with their plans for the company:
These exchange-traded funds, created to give individual investors the same leveraging opportunities that hedge funds have, don't level the playing field -- they distort it.
Typical of what we don't know about these instruments. Typical of the confidence that securities people place in the way ETFs work versus the actual securities they are supposed to represent.
If a major company like UBS, with all sorts of risk controls, couldn't see through what a trader might have been doing as he flitted back and forth through the ETFs to the underlying stocks to the options market, are we really supposed to be able to trust these kinds of desks when they tell us not to worry, that ETFs aren't more powerful than the stocks?
Should we really trust them when they make their assurances that ETFs, particularly the double and triple ETFs, don't affect the markets in bizarre and difficult-to-understand ways, including exacerbating trends that shouldn't be exacerbated?
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The US isn't strong enough not to care about them now. But one day it will be.
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[BRIEFING.COM] The S&P 500 (-0.4%) has taken a step back from its rebound high as nine of ten sectors continue trading lower.
Currently, the health care sector (+0.1%) is the only group trading in the green even though biotechnology has not contributed to the relative strength. The iShares Nasdaq Biotechnology ETF (IBB 258.61, -0.73) is lower by 0.3% as the industry group continues its recent underperformance. Including the decline, the biotech ETF is lower by 2.1% so far in ... More
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