The oil service sector (OSX) has been running hard lately, up 14.1% since only April 17. Yet the offshore drilling industry group has seen a reversal of fortunes compared to the OSX as negative headlines, declining contract activity, and a rotation to natural gas have weighed on its performance. However, as the negative press abates and contract activity begins to see renewed life, is the offshore drilling segment poised for a comeback? (more…)
Everyone Wants a Piece of Clearwire
Sprint (NYSE: S) and Clearwire (NYSE: CLWR) have found themselves in the middle of a multi-way acquisition battle that has more to do with spectrum than anything else. As the battle wages on, we see a decisive best bet for the companies that look currently undervalued (more…)
Chicos (CHS) Is Finally Joining The Retail Party
Retail has been fun ride so far this year. XRT, the SPDR S&P Retail ETF, is up 19.5% YTD. Despite wary consumers, despite stagnant wages, despite less-than-stellar same store comps and revenue growth in many corners of the industry, retail has chugged along unfazed. This is, however, looking at things from the ETF view. Lumped all together, it is easy to assume good fortune on the part of the entire sector. But for investors in individual company names, depending on where they sit, retail has either been a renewed love affair or a frustrating exercise in watching your neighbor’s grass get greener while yours seems to wither. (more…)
Is Zillow Sitting on a Sweet Spot or About To Stumble in a Bear Trap?
The S&P barely topped its all time high set just two weeks ago at 1593. One would assume that, being in the thick of earnings season, the numbers coming in to date are giving investors ample reason to keep the market’s relentless bull trend alive. And as expected, over two-thirds of companies in the S&P 500 have beaten Wall Street expectations so far. (more…)
Arris Group’s Deal With Google Has Upside
While many investors last week waited to see how much of a drag Google’s (NASDAQ: GOOG) purchase of Motorola Mobility was continuing to have on its bottom line, a smaller company reaping the benefits of the transaction was quietly celebrating. (more…)
Wells Fargo Faltering Mortgage Business Cause of Concern About Future Growth
There was plenty of hip, hip, hooraying going on about Wells Fargo (NYSE: WFC) last week after it released its first quarter earnings report that showed it raked in $5.1 billion in profits. That was an impressive 22% increase compared to the first quarter of 2012. (more…)
Capitalizing on Japan’s All-Out Effort at Reflation (DXJ)
Headlines last week were astir with the surprise move coming from the Bank of Japan. “Unprecedented”, “BOJ Gone Wild”, “Radical Gamble”, and “High Stakes Central Banking” were among the lead-ins to stories covering the new measures of monetary stimulus that Japan’s central bank announced in their attempt to jumpstart asset prices and reverse over two decades of deflationary pressures and stagnation. (more…)
Will The “Accessible Luxury” Model Stay in Fashion?
Stocks ended Q1 on a powerful note. The S&P closed at an all-time high of 1569. Besides two quick pullbacks in late December and February, the S&P has marched in a near-straight 200 point tear since mid-November 2012. In a virtually identical playback to 2012’s start in which the market also surged 200 points (from 1205 to 1419), this rise to new highs has got a lot of market pundits brandishing their bullish stripes and predicting a banner year. (more…)
Delivering a Steady Supply of Growth (COST)
Last Tuesday, March 12, Costco (COST) announced their Q2 FY2013 earnings. They came in at $1.10 per share, topping consensus estimates of $1.06. This was not a huge upside surprise but it was in keeping with COST’s recent pattern of behavior: simply beating estimates. COST has reported consistent sales growth with a CAGR from 2008-2012 of 6.5% and an increase in total revenue every year for the last 10 except for 2009. And while a $0.04 margin wasn’t enough to make the Street sit up and take notice, beneath the headline number were many indications that COST still has healthy growth prospects ahead. But with the stock trading just below its all time high of nearly $106 and an important technical pattern coming to a juncture, is now the right time to invest in COST? (more…)
Bank of America Looks Good on Pullback
Bank of America has emerged as a strong investment choice following the devastating 2008 financial crisis. Most recently, it reported that it is positioned well enough to sustain any similar financial crisis by passing the Federal Reserve’s stress test. (more…)