Beware the Financial Destruction of Overvaluation


After such an extended bull run it’s only logical to assume that many stocks are trading at frothy valuations.  On the other hand, it’s also important to keep in mind that it is a market of stocks and not a stock market.  Nevertheless, the truth is that many stocks are now significantly overvalued based on both historic norms and fundamental values.  This is not true of all stocks, because it is also true that there are high quality stocks available today that are fairly valued.  However, they are admittedly getting more difficult to find.


How Can You Avoid Value Traps In this Market?


When the stock market turns bad, like it has been recently, investors find it extremely difficult to remain positive.  As a result, people tend to be more cynical during bad times than they would normally be during better times.  When this happens, it becomes all too easy to paint every stock in the stock market with the same negative brush.  Since most stocks will, temporarily at least, experience falling prices during a bad market, the distinction between good stocks and bad stocks can become blurred. […]

The Dividend Aristocrats, Where Have All The Bargains Gone?

By now, it should be no secret to anyone that the stock market has been on a nice run of late. Moreover, this Bull Run has conjured up a lot of discussions that might lead one to believe that stocks in general are overvalued.  There are even some that want to play the bubble card Read more about The Dividend Aristocrats, Where Have All The Bargains Gone?[…]

Hormel Foods Corp: Fundamental Stock Research Analysis

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed.  Because at the end of the day, if you are an investor, you are buying the business.  The FAST Graphs™ presented with this article will focus first on the business behind the stock.  The orange line Read more about Hormel Foods Corp: Fundamental Stock Research Analysis[…]

How to Know What Rate of Return to Expect from your Stocks: Part 2

Introduction In Part 1 of this series found here, we voiced the notion that there are two primary attributes, valuation and the rate of change of earnings growth, which prudent investors can use to forecast the potential future returns on their stocks. However, Part 1 was primarily focused on ascertaining the principles which laid the Read more about How to Know What Rate of Return to Expect from your Stocks: Part 2[…]

Speed Up Your Portfolio Performance With Comcast

The old adage that people got to eat apply to the five consumer staple companies covered in this report. From the farm to the table these companies provide sustenance to a hungry world.  Therefore, we believe that conservative investors that are craving the opportunity for growth and income might want to look closer at these Read more about Speed Up Your Portfolio Performance With Comcast[…]

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, Read more about Dividend Champions a Rare Undervalued Opportunity[…]