There are some picks in this sector that have excellent valuations and strong earnings growth.
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There's too much uncertainty and fuzzy math in these profits.
By Jeff Reeves, InvestorPlace.com
This morning we saw a seemingly impressive earnings report from Bank of America (BAC). Revenue was up. Profits beat expectations. Good news, right?
Not so much. A closer look at the numbers shows some fuzzy math that only a contortionist could feel comfortable with. The real bottom line is that Bank of America earnings are still ugly and that the entire financial sector remains a very risky bet.
After crashing from $70 a share to just a buck, Crocs had been building a recovery - until Monday's ugly earnings report
Crocs, Inc. (CROX), the cult stock behind the cult footwear hit of the same name, is the quintessential fad investment. The stock raced up 400% after its IPO before flaming out spectacularly, going from a peak of around $70 to bottom out at $1 a share.
Investors should have learned their lesson after that ugly performance – and anyone who saw the ugly footwear knew the ride couldn’t last forever. But after a huge restructuring and rebranding effort, some on Wall Street were again duped in 2011 and started thinking Crocs had hit its stride once more. CROX stock regained the $30 mark just a few weeks ago.
But like everything else in the fashion industry, things changed fast for Crocs. An ugly profit report yesterday has prompted panic on Wall Street – and shares of CROX stock are set to open down as much as 35%.
At first glance, the financial giant had a knockout quarter. But there's more to the numbers than meets the eye.
Examining the company's most recent conference call for clues to this week's earnings.
By John Reeves
Excellent companies transform entire industries. Prior to Starbucks, for example, restaurants could get away with selling "bottomless" cups of coffee, because the coffee usually tasted so bad that you didn't want a second cup. And Netflix changed the way we bought our movies -- no longer do you have to go out to the video store and be subject to long lines and late fees.
Chipotle (CMG) is another example of an excellent company that is transforming its industry. In advance of its earnings release later this week, I took a look at its most recent conference call transcript. I was extremely impressed with what I discovered.
Despite noting that its business was facing some challenges in the current environment, the company's two co-CEOs, Steve Ells and Monty Moran, spent most of the call talking about two things not always associated with the fast-food industry: quality food and outstanding people.
The company is on a nutritious-foods mission, and wants to start producing yogurt for U.S. supermarkets.
And Pepsi (PEP) wants in.
Pepsi? Maker of all things junk? Yep, the soda and snacks company wants to go nutritious in a big way. And its plans include yogurt.
These new funds are designed to minimize volatility and ease market bumps.
By Roger Nusbaum, TheStreet
Why do you invest? What really is your objective?
For most individual investors, whether they invest on their own or hire someone, the real objective is simply having enough money when they need it. In most instances, this means retirement.
If you want to retire, then chances are your accumulated savings will go toward supplementing the benefit you will receive from Social Security and you will either have enough saved to offer the lifestyle you want or you won't.
For those who can reorient their thinking to the long term and to their real objective, a whole new way of investing opens up by using the low-volatility ETFs that have recently been created.
Shares climb after the company says it sold more than 4 million new iPhones in 3 days.
By James Rogers, TheStreet
"IPhone 4S is off to a great start with more than four million sold in its first weekend -- the most ever for a phone and more than double the iPhone 4 launch during its first three days," Philip Schiller, Apple's senior vice president of worldwide product marketing, explained in a statement released before the market open on Monday.
Investors responded positively to the iPhone 4S numbers, pushing the company's stock up to a new 52-week high of $426.70 during morning trading, though later in trading shares pulled back to just under the $420 mark.
Investors are waiting for news of the latest negotiations between American Airlines and its pilots.
Shares of the airline's parent, AMR Corp. (AMR), were briefly halted Monday after falling as much as 11%. The drop was so intense that it triggered an automatic circuit breaker to keep other shares from falling as well.
This ETF holds midstream energy master limited partnerships and offers a 6.4% yield.
In this low interest rate environment, it’s been tough for income investors to find worthwhile payouts that don’t entail inordinate amounts of risk.
But there’s one income-producing sector that has become increasingly attractive as the markets have sold off -- midstream master limited partnerships.
These midstream MLPs operate the pipeline and storage infrastructure for our oil, gasoline and natural gas resources.
The struggling retailer wants to allow competitors to sell its most valuable brands. Smart move or disaster in the making?
But is Sears' latest move a stroke of genius or the final nail in the coffin?
The company doesn't have much going for it, but what it does have are its brands. Craftsman tools. DieHard batteries. Kenmore appliances. People know and trust them. They are some of Sears' most valuable assets.
Here are some exchanged-traded funds to follow during this busy week of earnings reports.
By Don Dion, TheStreet
Here are five ETFs to watch this week.
The industrials have run into trouble in the past few months as investors have begun to question the strength of the global economy. Since its July breakdown, shares of XLI have struggled to recover lost ground, as the fund has jockeyed back and forth along a generally sideways path.
Though its shares trade at a tremendous discount to book value, the company's ultimate mortgage risk is unknown, and there are better bargains out there.
By Philip van Doorn, TheStreet
Shares of the nation's largest bank holding company closed at $6.19 Friday, and while they gained 5% last week, the stock is down 53% year to date. After a second-quarter net loss to common shareholders of $9.1 billion, or 90 cents a share, Bank of America will announce its third-quarter results Tuesday, with analysts polled by FactSet expecting the company to post earnings of 28 cents a share.
Bank of America's shares on Friday traded for less than half the company's June 30 tangible book value of $12.65, according to SNL Financial. The shares were also historically cheap relative to forward earnings, trading for just 5.6 times the consensus 2012 earnings-per-share estimate of $1.12, according to analysts polled by FactSet.
These low-priced carriers are jumping up even as established competitors are flat or down.
By Tom Aspray, MoneyShow.com
The Baltic Dry Shipping Index has surged more than 68% since early August, which likely has left some economists, who have been racing to lower their economic forecasts, shaking their heads.
The surge has been attributed to an increase in booking to ship thermal coal, iron ore and grains through the Panama Canal. Because the number of large ships that can pass through the canal does not change much year over year, an increase in shipping rates is often interpreted as a sign of future economic activity.
These stocks are poised to benefit as hospitals shift from paper records to electronic systems.
One of our favorite game-changing sectors is electronic medical records. Here's a look at our four top picks in this growth market.
The best estimates say that hospitals will need to spend $100,000 per licensed bed to implement these new programs, which render paper files obsolete.
With 950,000 hospital beds in the country, that's $95.5 billion in revenue, and there are only a handful of companies that stand poised to collect it.
Two blockbuster energy deals reflect the foreign interest in our crude and our growing need for a bridge fuel to renewables.
We will all be buzzing, as we should be, about the huge Kinder Morgan (KMI) deal to buy El Paso (EP) and how it will make Kinder Morgan a colossus of a pipeline that will be able to move natural gas through much of the country.
It is a deal meant to ensure the Kinder entities dominate the transport of the fuel. Of the three entities -- Kinder Morgan, which owns and operates the pipelines; Kinder Morgan Energy Partners (KMP), the toll collector of the group; and Kinder Morgan Management (KMR), a limited partner of KMP that controls its business -- I like KMP best because it is a master limited partnership that gives you a high 6.4% yield.
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[BRIEFING.COM] The major averages remain near their highs as the quiet session continues. In all likelihood, today's session will challenge yesterday's affair for the title of the slowest trading day of the year with only 172 million shares having changed hands so far at the NYSE.
NYSE floor volume stood at 191 million at this point yesterday before climbing to 479 million by the end of the session.
Market breadth continues favoring the bulls with nearly two names trading higher ... More
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