The Dreamliner Comes True!

The Boeing 787 “Dreamliner” finally took flight with much fan fair. In anticipation, Boeing Co.’s (BA) stock has risen off of lows and currently is valued at almost 35 times earnings. Headlines can be very misleading and lead investors into overvaluation traps. Today’s video looks at Boeing based on fundamentals as well as a competitor or[…]

Exxon Gets Gas

Exxon stunned Wall Street on Monday announcing a deal to buy XTO Energy. This is not just a play on natural gas. This is also a play on unconventional asset exploration. Today’s video looks at these two companies based on historical earnings. Best when viewed in full youtube screen. Both companies experienced earnings declines following energy[…]

When the Price is Right

Due to the recent recession, everyone is looking for a deal. This has actually been good news for certain companies. In the long run, at least a business cycle (3-5 years), the rate of earnings growth is important. A fast growing company will command a higher valuation than a slower growing company. Today’s video looks at[…]

To the Max

In the long run the relationship between earnings and market price is very correlated. In the short run, price volatility may do anything which can be unnerving. I believe buy and sell decisions are more intelligent when based on earnings rather than price. Today’s video on TJX Companies, Inc. shows how price is driven by profits.[…]

Have a Heart II

 On Monday I blogged about how the stock market had been overvaluing Medtronic. I believe the principle of valuation is critical to sound investment analysis. Unfortunately, I believe it is also a principle that is most often neglected. Overvaluation can destroy the returns of strong businesses. Undervaluation can enhance them. Sound valuation should mirror operating[…]

Low Fashion

Shopping season is officially in full swing. There are many fashion retailers that operate as public companies. When they are hot, they are hot. When they are not, they are not. Today’s video looks at several key players in this volatile industry. Best when viewed in full youtube screen. When analyzing fashion oriented businesses, keep[…]

You Gotta Eat!

The recession was terrible. However, there were companies that performed well. Not only did they offer growth, but generous dividend income as well. Today’s videolooks at two well-known fast food companies that grow and pay dividends. Best when viewed in full youtube screen. It is a market of stocks, not a stock market. It pays[…]

Have a Heart!

I often blog about how the so-called stock market can misprice stocks. It is not uncommon for the market to overvalue or undervalue a company. Usually these inefficiencies correct themselves very quickly. Sometimes they take longer to fix. In my opinion, when the market overvalues, risk is higher. On the other hand, undervaluation mitigates risk.[…]

Value versus Volatility

All stock price movements do not mean the same thing. For example, the market collapse last year dropped most stocks. In truth, based on fundamentals some deserved to fall, while some did not. Understanding this distinction is a vital investor attribute. Today’s video will look at financials, two banks and two insurers. See if you can see[…]