Commentary

What To Do Before The Tech Bubble Bursts

For the last year or two big tech has been hot, so has new tech. For prudence sake, it might be time to take a little money off the table. No one can time the market, and the bubble has risen far further and for a lot longer than any rational person could have predicted.

Commentary

How To Know When To Sell A Tech Stock?

One of the most common complaints I hear from investors is that their advisors or brokers like to tell them when to buy, but never tell them when to sell. Whether those criticisms are fair or not, the sell decision is certainly the most vexing decision that investors face.

Commentary

This COVID-19 Play Could Double Or Even Triple Your Money In 2021: Alpha Pro Tech Limited

It goes without saying that COVID-19 and the pandemic has been and is a terrible thing. People have gotten terribly sick and many have even succumbed to this horrible virus. Clearly, there is nothing good or positive that can be said about this scourge from a purely human or humanity perspective.

Commentary

AT&T Had Its Earnings Call Today Should We Answer?

AT&T reported earnings today and although they beat expectations, the stock is trading down over 2% so far. The company was light on revenues compared to 2019 but did report free cash flow for the year of $27.5 billion, slightly below the $29 billion reported in 2019.

Commentary

Dropbox: Growth At A Reasonable Price or Value Trap

Although the company faces stiff competition from well-capitalized behemoths such as Microsoft and Google, the company has carved out a niche for itself.

Commentary

Walt Disney Company: A Lesson on Overvaluation

Please accept this special edition offering on Walt Disney Company (DIS) as a lesson on valuation. Over the many years I have been a value investor, I have learned that even the best companies can become dangerously overvalued by the market.

Commentary

Tesla – Great Cars, Perhaps Great Company But Very Scary Stock

Tesla (TSLA) makes great automobiles, and although that is not all that they do, the Tesla automobile generates most of their revenues. That may not always be the case, but it is today.

Commentary

Not All Dividends Are the Same Even When Their Yield Is Similar

The better informed the investor is, the better the investment decisions they can make. But being an informed investor can be a very arduous task, and some would even say that conducting research on common stocks is a real snoozer.

Commentary

5 Leading Healthcare Stocks Surging on Pent-Up Demand

As Mr. Valuation, I find myself constantly reminding investors that value investing requires patience. However, value investing also requires the willingness to get your money in front of attractive valuation when it is discovered. Trying to time your purchases perfectly can just as easily cause you to miss out on significant gains as it is to participate in them.

Commentary

Unum: Although Life and Health Insurance Companies Are Cheap This One May Be the Cheapest

I recently did a search of the life and health insurance subsector and came up with 25 names that I considered the highest quality in the overall subsector. All of them carried investment grade credit ratings of BBB+ or better – except for one.

Commentary

Interest Rates and Their Impact On Stock Values

Many investors are attempting to justify higher stock “valuations” because interest rates are at historical lows. I would agree that lower interest rates could affect “market valuations” based on the simple law of supply and demand. The concept is simple, when fixed income offers lower returns it logically stimulates more demand for equities where higher returns can be found.

Commentary

Apple, Microsoft, Visa: Crazy Or Crazy Like A Fox

There are technical distinctions between investing versus speculating. Nevertheless, both concepts are often thought about or utilized interchangeably. Moreover, there are nuanced distinctions between a rational or well-thought-out speculation versus outright gambling.

Commentary

3 New York Stock Exchange Homebuilders: When Value and Momentum Converge

Value often comes when good companies go out of favor, this is especially true in bull markets like we have been in the last several years. Almost by definition, when stocks are out of favor it further implies that their near-term performance may not be all that attractive.

Commentary

5 Midcap Magic Formula Stocks for Total Return

This week I did a complete re-read of Joel Greenblatt’s classic “The Little Book That Beats The Market.” For any of you that are not familiar with the book, Joel Greenblatt presents his magic formula for picking stocks that his research indicated will beat the market most of the time.

Commentary

Alexion Pharmaceuticals: Growth At A Reasonable Price (GARP)

I find it very interesting that Alexion Pharmaceuticals Inc. (ALXN) after going public in 2001, did not generate their first profit until December 2008. As we all know, this was in the throes of what is now known as the Great Recession of 2008.