Price volatility is an unavoidable aspect of investing in common stocks. During periods when emotions are dominating reason, price volatility can become more pronounced than is normal during calmer times. The insidious part of this fact is that the more volatile stock prices are, the more fear and stress they generate, which only feeds even …
WMT
Dividend Champions a Rare Undervalued Opportunity
We believe that based on earnings, 2012 is starting out with the stock market undervalued. We believe in the long-term ownership of great businesses purchased at sound and attractive valuations. Consequently, we view the stock market as merely the store that we shop at in order to buy the businesses we want to own. Furthermore, …
Netflix – A Brutal Lesson On the Dangers of Overvaluation
The stock market has been pummeling Netflix (NFLX), assumingly based on significantly lowered expectations of future earnings results. However, the purpose of this article is not to provide a comprehensive analysis of Netflix the business. Many fine articles have recently been published that have covered the business potential of Netflix more than adequately. Whether Netflix …
9 of the Second 10 Best Performing Dow Stocks are Fairly Valued
The Dow Jones Industrial Average Second 10 Best Performers There is a lot of discussion taking place today about whether or not stocks are good long-term investments. Most of it is slanted towards the negative with dire forecasts of poor future returns. Implied in these forecasts of doom are opinions that stocks are overvalued today. …
Prof. Schiller and CAPE, Maybe Correct Generally, But Specifically Wrong: The Market is Currently Cheap
Introduction Many well-known stock market pundits to include the likes of Henry Blodgett point to Professor Robert Shiller’s cyclically adjusted PE ratio or CAPE to make a case that the stock market (S&P 500) is overvalued. According to Prof. Shiller, the long-term average PE ratio (CAPE adjusted) for the S&P 500 is approximately 16. And …
Why Buy and Hold Will Always Be a Sound Investing Strategy
It seems like the debate regarding the merits of the “buy-and-hold” investing strategy is alive and well. We always find these discussions amusing, because we believe that it is such a pointless discussion. There is no general argument or case that can be made to support the buy-and-hold strategy or to negate it. The only …
Costco vs. Wal-Mart: Who Wins the Stock Price Wars?
Headquartered in Issaquah, Washington, Costco (COST) reported fiscal year fourth quarter earnings Wednesday that beat street estimates only to see its shares slide. Although earnings were two cents better than estimated, revenues came in a little short. So far, the media is attributing Wednesday’s stock slide to the revenue miss and slightly slower September sales …
VF Corporation: Attractive Valuation With a Growing Dividend
Introduction and History VF Corporation (VFC) is the world’s largest apparel company with solid brands that are sold in more than 150 countries throughout the world. The company traces its roots back to 1899 when eight men formed the Reading Glove and Mitten manufacturing company in Reading, Pennsylvania. In 1911 one of the eight men, …
Discount Retailers?
It seems logical that discount stores do well in a recession. In fact they do well in most economic conditions. Today’s video looks at how leading discount retailers have faired in good times and bad. Best when viewed in full youtube screen. Disclosure: Author Does Not Manage Portfolios Long ROST Perception and reality do not always …