I have been looking for value stocks to invest in since the market has been topsy turvy. There are several sectors that contain stocks with compelling valuations. One of the sectors that has been beaten down the most is the steel sector. There are a number of steel stocks that are trading at really low valuations because of the global economic slowdown. These steel stocks could yield big returns for years to come. [Read more…]
The government may have reached a deal on the debt ceiling but that did not stop the stock market from taking it on the chin today. The Dow Jones plummeted over 265 points as investors turned their attention to the real problems facing the United States economy. Growth has slowed in the economy and the high unemployment rate is having an effect. This is causing many investors to flee stocks and run to the bond market. The panicking of the general public has started to make some stocks start to look cheap again. [Read more…]
Shares of Yahoo (YHOO) are incredibly weak as the stock has been caving in over the past six weeks. The stock is currently selling for $14.69 a share which is just 15% off of its 52 week low. Yahoo has plummeted since May 6th when the stock was over $18 a share. Yahoo now has a market cap of $19.1 billion and an enterprise value of just $16.4 billion dollars. [Read more…]
I wrote a post this past week on Seeking Alpha about 2 Technology Companies That Are Struggling For Market Share. The two companies in question were Nokia (NOK) and Research in Motion (RIMM). I stated that RIMM’s earnings estimate of $7.50 a share was optimistic at best. There was no way that the company was going to hit those targets based on its falling market share and declining Blackberry sales. Research in Motion reported earnings today and the results were downright disappointing.
Investors in Nokia should not trust the dividend after the company announced its earnings last week. Nokia (NOK) cut its full year outlook and completely abandoned its 2011 profit expectations. The company’s shares have tumbled 21% as the company has seen its market share evaporate since the introduction of the iPhone. Sales revenue is going to be well below the $8.75 billion in sales originally expected for the year.
There are a lot of overvalued stocks in the market right now. As great as Neflix’s (NFLX) and Amazon’s (AMZN) business models are I would not touch either stock because of their massive valuations. I would never pay 50 times earnings for any company. These companies trade well above those levels. I prefer to shop in the value section of the market. Here are a few companies that are looking like decent value stocks.
I have been a long time bear on the stock of AOL Inc. (AOL). The stock has been a long term underperformer since its merge days with Time Warner. Since the spin-off of the company I have been waiting for the company to report earnings to decide on whether to jump in and pick up shares or stay on the sideline. The stock surged initially after its IPO but since then has settled in at much lower levels. So, is now the time to buy shares of AOL?
When you are building an investment portfolio, your stock selections should be based on the fundamentals. My favorite stocks have low P/E ratios, above average growth rates, and small amounts of debts. Although most of the stocks that I buy fit into this category, I do allow myself the right to speculate. Over the past two years, I have been taking a gamble on a couple of turnaround plays. Today, I want to take a look at one of them.
The recent move towards austerity in the United States has left many investors confused about where to invest. All of the talk in Washington over the past few months has been about tightening up the federal budget and reducing spending in the nation’s capital. There are many plans being discussed by Congress which will have a significant impact on the U.S. economy. Many investors are starting to flee the bond market over fears that the United States may default on some of its financial obligations. Fortunately, there are some asset classes that may thrive from investors leaving the bond market. Let’s take a look at one stock that should benefit from the panic.
This is the fourth part in my series on dividend investing. Today, I would like to look at one of the oldest companies in the United States. The company is involved in just about every facet of the United States economy. The company generates revenue from industrial production, healthcare, financial services, and product sales. It’s one of the largest companies in the world with a market cap over $200 billion dollars and a good dividend play.