In this week’s Stock Market Analysis Video, Cabot Top Ten Weekly Editor Michael Cintolo says that the market has tacked on more gains this week and most leading stocks have come through earning season so far in fine shape. Stocks discussed include Las Vegas Sands (LVS), Google (GOOG), Silver Wheaton (SLW) and Coach (COH). Click here to watch the video.
As a student of the market, I learned in my early days was that market leadership usually switches from cycle to cycle. That is, during one full bull market—usually lasting three or four years—you usually have one set of leaders from two or three different industries. These industries, of course, are usually the ones with unique, revolutionary products and services that are driving the economy forward during that time … and the companies themselves lead the way. Eventually, the bull dies and a bear market begins, and the leaders generally fall to earth after becoming “over-owned” by the institutional...
Today I want to highlight another company demonstrating acceleration of revenue growth AND acceleration of earnings growth. The reason I like these characteristics in a stock is that it tells me analysts have to keep ratcheting up their estimates, and thus their targets, and so institutional investors have to keep buying more. And it’s institutional investors that drive stock prices. The company is Riverbed Technology (RVBD), and its business is booming today as companies all over the world work to make their Wide Area Networks (WANs) work faster. Like Netflix, Riverbed saw its stock gap up last week after...
Last week, a long-time subscriber from Minnesota wrote, “It seems obvious to me that the only way out of this ‘ECONOMIC CRISIS’ is to inflate the dollar. Please comment on the likely effect of Bernanke’s plan to issue more Treasury Bonds to ‘fight unemployment’ and to stir the pot for inflation. This should artificially cause my portfolio ‘value’ to explode exponentially and result in a huge tax bill when I sell.” I replied with this: “Thanks for writing. You may be right. In any case, the key to successful investing remains unchanged. Watch the market carefully, interpret unbiasedly, and...
Last Saturday, I had the pleasure of attending the second Boston Book Festival. It’s fitting that our historic city has an event devoted entirely to the written word, as it is home to the oldest free public city library in the world supported by taxation and the first to allow its patrons to borrow books and other materials. The festival is held in Copley Square, also the location of the Boston Public Library, and plays host to a variety of events, like author readings and discussions, book signings, live music and children’s activities. My favorite parts were the author...
