Archives for October 2011

Meg Whitman Is Making The Right Decisions At Hewlett Packard

It has only been a few short week since Meg Whitman took over as CEO of Hewlett Packard (HPQ) and things are already starting to look up. HP has scrapped the plan to abandon one of its core businesses since dumping its previous CEO. In the short time that Whitman has been at HP she has helped to reestablish investor confidence in the company. Whitman may not have been my choice for CEO of the technology giant but she is far better than the previous CEO.

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Why I Am A Value Investor

If you have seen what has happened to Netflix (NFLX) and Amazon (AMZN) today then you have a good idea why I am not a growth investor. Both of these high flying growth stocks have come crashing back to earth. A drop in stock price is normal for just about any company but these companies actually performed reasonably well and have seen their stocks drop. Amazon is expecting to grow earnings at 30%% or more for the next year. This fell under the 50% target that Wall Street had set for the stock so shared tumbled nearly 17% today. Amazon is back trading below $200 a share. [Read more…]

Bigger Companies Are Not Necessarily Better

When it comes to investing, bigger is not always better. There are some companies that were able to produce positive earnings growth quarter after quarter as they grew from mid sized companies to large cap companies. Once these companies became mega sized, they struggled to generate positive returns because they were too large in size. Larger companies often have trouble sticking to their core competencies and finding a business model that will lead to success. The companies listed below demonstrate why being bigger does not necessarily make a company better. [Read more…]

Are Sports Teams Owners Anti Capitalism

I was thinking about all of the lockouts taking place in sports recently and how it always comes down to simple economics. Major League Baseball had a long lockout that cancelled the World Series. The National Football League just had a lockout this current year that threatened many of the preseason games. Now the NBA has gone through a lockout in which regular season games have already been cancelled and the season may be missed. [Read more…]

Bank Of America Announces Earnings

Bank of America(BAC) announced third quarter earnings today. I paid particular attention to the announcement because I have a pretty sizable position in the banking stocks. Bank of America has been one of the worst performing stocks in the market during the past year as shares are barely trading above $6 per share. I have hung in there with the bank despite several missteps because my average purchase cost is so low. So, how did the banking giant fare today? [Read more…]

Why Free Trade Agreements Are Bad For The United States

Members of Congress were applauding the passage of a free trade agreement that they believe will encourage job growth and business development in the United States of America. This is the biggest free trade agreement that the United States has passed since the North American Free Trade Agreement in 1994. While some are predicting that this agreement will create jobs, I am highly skeptical. I believe that this free trade agreement is just another bad deal for the United States. [Read more…]

Best Bank Dividend Yields

The big national banks garner all of the headlines from the news organizations because of their risky loan portfolios and pending lawsuits. Many of the regional banks go unnoticed despite having avoided much of the fallout from the financial crisis. Many of the regional banks are still paying out great dividends each quarter and have really high yields that make them attractive to those looking for income. Let’s take a look at four regional banks that could quickly become a favorite of income investors. [Read more…]

Five Ways to Increase Your Car’s Resale Value

When it’s time to sell your car, you may be unsure about what it’s worth. You can reference pricing guides like the Kelley Blue Book, but those only give a general idea of your used car’s value. Use those guides as a starting point and then check out these five ways to maximize your car’s resale value. [Read more…]

A Want Vs. A Need

The world of personal finance is all about being able to effectively manage your money. This means being able to maximize the amount of income that you have coming in and reducing your expenses. It is basically about being able to live within your means. Being able to do this may sound simple but it can be confusing if you do not know the difference between a want and a need. [Read more…]

Netflix Changes Its Business Strategy Yet Again

Today was a good day for the majority of the stocks in the market as the Dow advanced 330 points. I do not normally pay attention to the day to day movements of the market as a whole except when searching for potential stocks that are trading at discounted prices. While most of the stocks were advancing, there was one major company that saw its shares get pummeled again. [Read more…]