You can still find small-cap superstars
Small-cap superstars still abound

There are some picks in this sector that have excellent valuations and strong earnings growth.

VIDEO ON MSN MONEY

Large stocks left other sectors in the dust last week. Look for the reverse next week.

By Jamie Dlugosch Jan 9, 2011 6:47PM

The market is off and running in 2011. Traders came back to a market that had enjoyed its best December in two decades uncertain whether to sell stocks short or push the market higher.

 

Aside from the largest names in the market stocks struggled during the first week of trading. Momentum names gave back gains and the inflation trade took a breather on the strength of the dollar gaining during the first week of the New Year.

 

The S&P 500 managed to gain 1%, but other indexes were negative.

 

Look for a reversal in week two. Momentum names and inflation plays will be where the action is next week.

 

My recommendation would be to jump all over the IShares Russell 2000 (IWM) ETF this week.

 
Tags: etfoil

Reasons why we like Best Buy

By Wall Street Media on MSN Money Jan 7, 2011 6:35PM
Written by Douglas Estadt

Today, we look at why Best Buy Co. Inc. (Nasdaq:BBY) may prove a "best buy" in the common stock.  We sold puts and made some money in them already this month but today bought a little of their common stock at $35.23 and $35.30 because I believe the potential upside may be larger over the long term than many people currently realize:
 
  • Competition from other electronic retail providers has been reduced to the point where Best Buy has become the remaining "go-to" store in its sector by default 
  • Today's announcement of their electronic charging station partnership with Ford Motor Company (NYSE:F) may prove far more lucrative long term than present valuation suggests
  • An improving economy will benefit Best Buy
 
For more on Best Buy, watch the video below
 

Here are some ETFs that investors can get into to get exposure to alternative energy.

By TheStreet Staff Jan 7, 2011 5:04PM

By Don Dion, TheStreet

 

Warren Buffett's recent investment in the wind energy industry has taken center stage and stolen headlines. Using ETFs, investors can follow Buffett's lead and gain exposure to companies which work to harness and profit from the power of wind.

 

Energy is not a new venture for Buffett. On the contrary, through a number of his investments and subsidiaries, Warren Buffett has expanded his investment reach into various corners of the energy industry. Boasting exposure to companies including Exxon Mobil (XOM), ConocoPhillips (COP) and Burlington Northern Santa Fe Railroad, the famous investor has for years held direct and indirect exposure to various traditional fuel sources, including oil and coal.

 

The alternative energy industry is not excluded from Buffett's portfolio, either. Well known components of the Buffett's Berkshire Hathaway (BRK.A) portfolio, including General Electric (GE) and BYD have been major players in the growth of clean tech and energy industries such as wind, solar, and battery power in recent years

 

Big revenue and profit generators go hand in hand, but does that mean stocks of companies with big brands are moneymakers for investors?

By TheStreet Staff Jan 7, 2011 4:54PM

StockpickrBy James Dlugosch, Stockpickr


These companies have some of the most recognizable brands in the market, allowing them to generate big profits. The two go hand in hand, but does that mean stocks of companies with big brands are moneymakers for investors?

 

Making money for a company and making money for an investor are two different things. If the stock of a company with a well-known brand has already been fully priced, buying that investment today may not be such a smart thing.

 

Then again, if the stock of a big-brand company lags the market and is not priced at fair value, investors may want to consider that stock for their portfolio. Let’s take a look at some of these names to see if their stocks are as big as their brands

 

Companies stopped buying trucks as the recession lingered, but expect orders to rebound with the economy.

By Jim J. Jubak Jan 7, 2011 4:25PM
Jim JubakThe heavy-truck replacement cycle continues to play out exactly as Cummins (CMI) has outlined it over the last year.

The pent-up demand created during the Great Recession when truck owners put off replacing aging trucks will turn into new orders as the economy recovers, with the big pickup in orders due for the first half of 2011, the company has repeatedly said.

If there’s indeed any problem with Cummins’ projections, it may be that the company underestimated the increase in orders and was conservative on timing.
 

Shares haven't moved lower like this since August.

By Anthony Mirhaydari Jan 7, 2011 2:54PM

Share prices were dropping hard Friday, and the evidence suggests this is just the beginning. The catalysts were a disappointing December jobs report, ongoing woes in the eurozone and a decision by the Massachusetts Supreme Court against Wells Fargo (WFC) and US Bancorp (USB) concerning treatment of mortgage securitization by the banks.

 

This has revived concerns that banks will face increased losses from mortgage "put backs" from investors. It also called into question the banks' ability to foreclose on mortgages that have been securitized.

 

As a result, small-cap stocks are struggling, the dollar is moving higher and commodity prices are sliding. What's worse, there is evidence that this is just that start of a protracted decline as we enter a period of seasonal weakness. If true, it would mean the bull market faces a few weeks of losses before the long-term uptrend can resume.

 

Brink's stock is almost as solid as its armored cars.

By Motley Fool Pick of the Day Jan 7, 2011 2:46PM

Investors are always looking for a dominant business with a large moat at a low price, even if they never expect to find one. Fool analyst Dan Dzombak believes he has.

 

Rex Moore, Motley Fool Top Stocks editor

 

I'm excited to recommend and open a position in Brink's (BCO).

 

The business
You've probably seen Brink's armored cars driving around your neighborhood at some point, but you probably didn't realize that Brink's trucks are seen globally. Only 30% of Brink's business comes from North America. The rest comes from around the world.

 

Goldman Sachs invests in a company your financial adviser wouldn't touch with a 10-foot pole. Apple makes iPhones that fail to ring when required. Insurance companies sue Toyota.

By TheStreet Staff Jan 7, 2011 12:31PM

TheStreet.com on MSN MoneyBy TheStreet Staff, TheStreet

 

Here's this week's roundup of the dumbest actions in business.

 

5. Goldman joins Facebook investors

What do you get when you combine a company your financial adviser wouldn't touch with a 10-foot pole, a Russian "oligarch" and mind-blowing fees? You have an investment opportunity.

 

That, at least, is what Goldman Sachs (GS) is telling well-heeled clients about plans to invest in the social-networking site Facebook.

 

Money manager, author and blogger Vitaliy Katsenelson explains the malaise.

By V.N. Katsenelson Jan 7, 2011 12:28PM
Let's talk a bit about China, because you have written a lot about that country.  What is your overall outlook for the Chinese economy?  How will it affect the US economy and US investors?

China is extremely important to the global economy.  China to some degree helped to pull the global economy out of recession with its enormous stimulus.  However, I expect China’s economy to get worse at some point in the not too distant future


The Chinese economy grew at a very fast rate for long period of time.  The Chinese government is extremely concerned that if the growth rate of its economy slows down it is going to have high unemployment.  Ironically, though, this country that is supposed to be communist has less socialism than we have in the United States. 

 

Shares of Bank of America, Citigroup and other major financials are too cheap to pass up.

By Jim Cramer Jan 7, 2011 12:03PM

TheStreet's Jim CramerYou want to know which banks to buy?

 

How about Citigroup (C), Bank of America (BAC), Wells Fargo (WFC), PNC (PNC), JPMorgan (JPM) and Huntington Bancshares (HBAN)? How about U.S. Bancorp (USB)?

 

You know what these stocks have in common? Their prices are ridiculously low, kept down by rumor, innuendo, disbelieving analysts and lies.

 

Money manager, author and blogger Vitaliy Katsenelson explains the malaise.

By V.N. Katsenelson Jan 6, 2011 5:21PM

To paraphrase Nassim Taleb, "Giving interviews is the art of repeating oneself without anyone noticing." With the new book out, I have the pleasure and the opportunity to perfect that art. My latest interview, with my friend Bob Huebscher of Adviser Perspectives, is below; and here are links to my interviews with John Mihalijevic of Manual of Ideas (John is co-organizer of ValueEx; see below), Elliot Turner of Wall Street Cheat Sheet, and an audio interview with Jim Puplava of Financal Sense.  I tried very hard to offer new perspectives in each interview, even when we discussed the same subjects.  I tried.

 

After an epic 22% rally out of the August low, small-cap stocks start to falter.

By Anthony Mirhaydari Jan 6, 2011 5:01PM

The stock market has stalled over the past three days, and the main driver appears to be a surge in the U.S. dollar -- a sign of haven buying by investors looking to reduce risk. As a result, commodities like crude oil are under pressure. But there is other evidence of risk coming off the table.

 

The Risk Appetite Indicator maintained by UBS declined to 0.57 last week from 0.85 the week before and is down from a recent high of 1 on December 22. The primary driver has been the increase in the CBOE Volatility Index (VIX), which in turn is driven by option traders purchasing "insurance" option contracts on the S&P 500 index.

 

Rising inflation isn't sitting well with the European Central Bank. But there isn't much it can do.

By Jim J. Jubak Jan 6, 2011 4:42PM
Jim JubakTalk about getting caught between a rock and rocking the entire European Union.

Inflation kicked up to an annual rate of 2.2% in December in the European Union. That’s well above the European Central Bank’s oft-stated target of an annual rate "close but below" 2%.

In normal times, the European Central Bank, drawing on the remaining DNA from its ancestors at Germany’s Bundesbank, would raise interest rates to clamp down on inflation faster than you can say "Johannes Robinson."
 

These big military contractors are sporting historically small multiples.

By Motley Fool Pick of the Day Jan 6, 2011 2:30PM

Military © Stockbyte/SuperStockFool analyst Anand Chokkavelu loves trolling around in beaten-down sectors. Today's stop on his incessant search for value: the defense sector.

 

Rex Moore, Motley Fool Top Stocks editor

 

When a sector is beaten down, I get interested. When a sector is beaten down and nothing has fundamentally changed, I get really interested.

 

I believe that's the case in the defense industry.

 

The bakery spent a lot of money to modernize, but savings are small, losses are mounting, and debt is crippling.

By InvestorPlace Jan 6, 2011 1:09PM

Bankrupt © Hill Street Studios/Blend Images/Getty ImagesBy Jeff Reeves, editor of InvestorPlace.com


After bleeding red ink like the jelly out of a freshly bitten Krimpet, the makers of Tastykake snacks face a serious question: whether to sell the company at a fire-sale price or whether to just cry uncle under the crippling weight of its debt.


It's a sad development for the Pennsylvania sweets powerhouse that was born almost a century ago in Philadelphia. But what's perhaps most tragic is that the biggest reason pushing parent Tasty Baking (TSTY) to the brink of bankruptcy is a development that was intended to turn the company's battered finances around.

 

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