Tag Archives: Could
These Stocks Could Soar
They’re the best kept secret on earth: they offer limited downside risk and triple-digit upside potential…
Daily Trade Alert
JPMorgan Could Rebound To $40 By 2013
By Income Hunter:
Unless you have been on another planet for the past few days, you could not have missed reading about the derivatives fiasco at JPMorgan Chase (JPM). Despite extensive coverage, we don’t have a clear understanding of what happened and the ramifications for JPMorgan as well as the banking system as a whole. The bank has disclosed a loss of $ 2 billion on complex derivatives trading strategies that went wrong.
Unlike the trading losses recently at UBS (UBS) and Societe Generale (SCGLY.PK) caused by rogue traders who then manipulated the accounts to hide what they were doing, whatever happened at JPMorgan seems to have happened with the full concurrence of top management, which seemed to have placed too much reliance on their internal controls. In fact, this follows a situation only two years ago when derivative trading went out of control in the bank’ s commodities division – specifically a short
These Stocks Could Safely Make You a Huge Amount of Money
Not only could you beat inflation, but you could compound your cash at high rates over long periods of time (and sleep well at night, too)…
Daily Trade Alert
Short Sellers Could be Dead Wrong about this Stock
Every two weeks, we get a chance to look at fresh data on how heavily stocks are being shorted. It helps to see what short-sellers are focusing on — especially if you own one of the stocks being targeted.
You'll often see short positions in a particular stock slowly rise as an increasing number of short sellers start to sniff trouble at a company. But it's highly unusual to see a short position rise from 60 million shares to 139 million shares in just two weeks, as I did. It's as if the entire short-selling community has raced to get on the bus and watch this stock tumble.
Normally, these short-sellers spot red flags in a quarterly report and want to bet against a stock before even worse numbers appear in subsequent quarters. But that's not why they are targeting wireless services provider Sprint Nextel (NYSE: S). The company actually delivered pretty decent results during that interim period between short seller release dates (April 15-30).
Instead, short sellers are focusing on a news item that hit the wires on April 19, a full week before quarterly earnings came out. That's when New York State Attorney General Eric Schneiderman slapped the company with a $ 100 million lawsuit alleging under-collection of sales taxes. The scary part: New York could win triple damages if successful. The really scary part: other states may follow New York's lead, opening Sprint up to a liability in excess of $ 1 billion.
Since I am not a legal expert, I'll lay out the facts for others to digest. Sprint claims it didn't owe taxes on sales associated with out-of-state phone calls. So the company decided to put a reduced amount of taxes on each customer's bill as a way of cementing its reputation as a low-cost industry provider. In my cursory review of the resulting fallout, this is indeed a gray area. Other communications firms have reportedly adopted similar tactics regarding interstate commerce without any pushback.
This “Hated” Sector Could be Buffett’s New Favorite
Warren Buffett's annual letter to shareholders is one of the most highly anticipated reports in the financial community. (You can find a copy of his latest letter here)
Every year, investors around the world anxiously wait to hear what the world's most prolific investor has to say about what lies ahead… this year was no exception.
As always, this year's report sheds some light on the inner workings of Buffett's mind and identifies specific areas of opportunity… and his latest prediction might surprise you.
Believe it or not, Buffett, in his 47th annual letter, has given a ringing endorsement to what is arguably the most spurned of all investments: housing.
In fact, he boldly claimed that it would be smart for affluent investors to purchase not just a second or third home, but "load up" on "hundreds of thousands" of single-family homes.
Why these Silver Stocks Could Bounce in a Major Way
As I was reviewing the list of stocks hitting 52-week lows this week, I noticed an unusual cluster of stocks: silver-miners. These stocks have been under heavy pressure in recent weeks and are falling anew, leaving them — at least in the context of recent trading patterns and valuation sentiments — quite cheap. Then again, just because something is cheap doesn't mean it's a bargain. After all, stocks moving below their 52-week lows can fall yet further before rebounding. So are these lagging silver-mining stocks offering up value, or are they just a value trap?
Here's what I found…
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The cycle and costs — a double whammy
Silver miners, just like any other mining firm, are seeing rising costs as labor and equipment expenses have both risen steadily in recent quarters. Higher expenses aren't a short-term blip — they're the "new normal." Adding insult, commodity prices have been steadily falling on concerns that a European economic implosion will affect global trading partners from Brazil to China.
Yet here's the most important factor: Even with rising expenses and falling selling prices, silver miners continue to be a solidly profitable group. The EPS (earnings per share) figures noted above actually understate their profitability. High levels of depreciation dampen net income, but operating cash flow per share for almost every one of these companies is solidly higher than that EPS figure.
A380 Issues Could Lift Boeing
By Markos Kaminis (Wall St. Greek):
Factory order data reported for the month of March this week showed that non-defense aircraft and parts orders declined by 47.6%. While transportation orders generally, and especially aircraft orders, swing widely on a dollar basis due to their high ticket prices, we wondered just how Airbus’ A380 issues might be affecting orders of Boeing’s 747-8
