Stocks should be crushed by global turmoil, Jim Cramer says. Instead, they're doing fine.
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This market will pay up for F5, Apple, Deckers, Salesforce.com, Chipotle, Amazon and Netflix.
Who can? FADS CAN! I am talking about this market's obsession with uber-growth stocks and how much it is willing to pay for them. I call them FADS CAN, as in "FADS CAN make you money." It's the acronym for F5 (FFIV), Apple (AAPL), Deckers (DECK), Salesforce.com (CRM), Chipotle (CMG), Amazon (AMZN) and Netflix (NFLX).
These are the stocks that go down hard on days like last Tuesday but snap back harder, as there's so much earnings momentum that analysts view any dip as a reason to talk about them and re-recommend them.
They don't all go up at once, but the action Friday was instructive of the power of FADS CAN. Take Chipotle. On Thursday, Raymond James (RJF) downgraded Chipotle on valuation. It was the only FADS CAN name that was down. Now take a look at it. Valuations are no good reason to downgrade fast-growing stocks -- at least that's always been my observation of what growth money does. Sure enough, this stock was the first in the green on Friday. They couldn't resist.
Examine the costs and benefits of stretching your IRA
By Chuck Epstein, InvestorPlace.com
Mutual funds information and IRA information is becoming a hotter commodity by the day.
Too many New Year’s resolutions never get realized, but if you want to increase your odds of attaining a more fruitful financial future for you and your heirs, you should consider a stretch IRA.
The tax laws governing Individual retirement Accounts (IRAs) are very specific, but by applying a different type of strategy you and your beneficiaries can reap some significant benefits. This strategy is called a “stretch” IRA and it can be done by almost anyone who owns an IRA.
Google is reportedly the latest company interested in grabbing Groupon -- and for good reason.
AllThingsD reports that Google is in discussions with Groupon about a deal -- at a price "well above" the $2 billion to $3 billion figure thrown around last month when Yahoo(YHOO) supposedly had an interest.
What makes Groupon so hot, any why would Google and Yahoo be interested? Too many reasons to count, but let's go over a few:
GM enjoys a tax-free holiday. American Airlines tells customers to drink up. Buffett gives thanks to Uncle Sam.
5. For GM, every day is a tax-free day
General Motors (GM) charged back onto the scene after being delisted by the NYSE a year and a half ago, with an initial public offering price that just kept going up and up. Its stock closed its first day of trading at $34.19.
Though some stations are missing, for $29.95 a month you can enjoy popular channels. Will Comcast follow suit?
For consumers who feel they are spending too much for cable television channels they don't use, Time Warner Cable (TWX) may have the perfect solution.
Time Warner will begin offering a new lower-priced television package called TV Essentials. The package will be offered Monday in New York City for $39.95 a month and in northern Ohio for $29.95 a month. The reduced package is aimed at lower-income customers who have dropped their cable service because of rising prices and extraneous channels.
Unfortunately, some key channels are missing.
Names like F5 and Salesforce.com are on a tear, and you could buy them at a discount as China's inflation plan slows the market.
But that didn't happen.
It is too bad because we were building up a legitimate head of steam. Now we could be back in macro-land unless the dollar stays down and oil goes higher, as the drumbeat is already on for Portugal now that Ireland looks "solved."
For a moment, though, let's bask in some things that have occurred, micro-wise, that do matter.
Part 4 of this year's list of recommended books looks at economics.
I originally wrote a list in 2008 and again last year. I intend to keep adding to and revising it every year. It contains seven sections: Selling, Think Like an Investor, Behavioral Investing, Economics, Stock Market History, Risk and Books for the Soul. Today's segment is Part 4. Read part 3 here. and expect Part 5 tomorrow. I hope you enjoy it.
Politicians, God rest their souls, always try to appeal to the lowest common denominator. They try to “protect” us from evildoers by insisting on minimum-wage laws or rent controls, or by threatening windfall taxes on oil companies. They paint themselves as heroes fighting for the little guy against the evil-doers. All they are doing, however, is feeding on the economic illiteracy of the average Joe.
Given this reality, the following books should be required reading in high schools and colleges:
While retail investors and newsletter writers become increasingly optimistic, options traders are preparing for a stock market decline.
The stock market has had a rough ride lately. After blasting higher in the wake of the Federal Reserve's latest money-printing operation, risky assets have stumbled on concerns over the fate of Ireland and the other troubled eurozone nations.
Also, concerns over fast-rising inflation in China has many worried that policymakers there will be forced to take drastic action -- with big interest rate increases and lending restrictions. This could quickly reverse the speculative fever that has pushed up Chinese stocks and real-estate prices.
But now, with the excitement surrounding the IPO of General Motors (GM) as well as word that Ireland is on track to accept a big bailout package, shares are flying higher. Will it last?
Buy these stocks before they spring higher
By Chris Johnson and Jon Lewis, InvestorPlace.com
The number of hot stocks that pulled back to their 50-day moving average was on the rise early this week, attracting our attention as potential "technical bounce" candidates. While support from a key moving average is important, it can be improved upon by incorporating some options data into the approach. Our historical analysis has shown that stocks tend to find support when they trade in close proximity to large amounts of put open interest. This support is often attributed to the mechanics involved with the puts (hedging) and the sentiment that is conveyed by the put activity at that price.
The model that results from combining these approaches uncovers companies that are trading close to their respective 50-day moving averages while being in close range of large put open interest. The outcome is a list of stocks that are ready to bounce back and likely take the lead the next rally.
The once-elusive McRib sandwich is now a pop-culture phenomenon, creating enough buzz to make competitors drool.
But that doesn't matter to McDonald's (MCD). Because whether you like it or hate it, you know what it is. People love to talk about the McRib.
It's the subject of televised news reports. Of newspaper articles. Of blog posts (ahem). It's a conversation staple on Facebook, and it even has its own account on Twitter.
The actor and other investors sued the global banking company for unauthorized purchases, but the claim was denied.
Ferrell and his wife, along with a business manager and a trust for actor Larry David, filed an arbitration claim against JPMorgan in 2008, The New York Times reports. They were upset that the bank took $18 million and put it into "unauthorized and unsuitable purchases of preferred securities."
Arbitrators would have none of it. In fact, they turned around and went after Ferrell's group.
Apple partner China Unicom will start selling its own smart phone later this year.
By James Rogers, TheStreet
Bloomberg reports that China Unicom will launch the UPhone, underlining the challenges Apple faces in the increasingly competitive Chinese phone market.
Despite the iPhone's phenomenal success in the U.S. market, Apple is up against a host of heavyweights in China, including smart phones from Lenovo Group and China Mobile, as well as Taiwanese giant HTC.
Government privatizations have a track record of success, and this one is so good you can buy it in the aftermarket.
Psst, you want a good idea? Buy from the federal government whenever it has a privatization up its sleeve.
We're all abuzz about General Motors (GM), of course, as we should be when faced with one of the world's biggest underwritings. But let's consider the other merchandise the government's thrown our way. First, even though we've seen a pullback in Citigroup (C), the government has given you an almost 30% return on the big underwriting it did to kick off the privatization of that bank.
But let's look further back in history. In 1979 the government provided a loan guarantee to Chrysler in return for stock warrants to buy 11.4 million shares of the automaker at $13 a share. With that guarantee, Chrysler, which sold at $7.50 at that time, was able to get a private loan.
These exchange-traded funds offer plump dividends and diverse exposure
By Jeff Reeves, InvestorPlace.com
Exchange traded funds and high yield dividend funds have become increasingly popular in this volatile economy.
When looking for high dividend yields, many investors steer right for utility stocks. From telecom dividend plays like AT&T (T) and Verizon (VZ) to conventional electric utilities like Duke Energy (DUK) and Exelon (EXC), there are a number of high-yield stocks out there that return 4% or 5% via dividends.
But what if you only have a small nest egg and stick largely to ETFs for diversification? These exchange-traded funds can leave you out of many sectors and investment opportunities, right?
The company has placed large orders for new planes, which will cut travel times but eat into cash flow.
FedEx is making a huge investment in its fleet with new Boeing 777s, which is taking a bite out of the company's bottom line in the short term. But down the road, these new planes will give the company a smart edge.
The company has eight 777s in service and 32 on the way. And that brings good and bad news for investors, according to analysts at UBS, which recently spent three days hosting representatives from the company.
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The company plans to close stores and lay off employees, and says it needs to make some deeper changes.
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[BRIEFING.COM] The stock market finished the Tuesday session on an upbeat note with small caps pacing the rally. The Russell 2000 advanced 0.8%, while the S&P 500 added 0.5% with eight sectors ending in the green.
Although geopolitical concerns factored into the modest retreat on Monday, the worries were cast aside today after separatist forces in eastern Ukraine handed over black boxes from MH17 to Malaysian authorities and Secretary of State John Kerry began working on brokering a ... More
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