David Sterman

Analyst Articles

The phrase “cost avoidance” doesn’t have the same cachet as “revenue growth.” Still, they have the same beneficial impact on the bottom line. In fact, in the electrical industry, cost avoidance is emerging as the dominant goal. And one small company is helping utilities achieve it. Little-known EnerNOC… Read More

Many investors have made the classic mistake of falling in love with a product and buying the company’s shares — no matter the price. Believing their beloved stock will rise ever higher, they willingly ignore the valuation fundamentals.  In fact, they can miss some very obvious warning signs before the… Read More

Many investors have made the classic mistake of falling in love with a product and buying the company’s shares — no matter the price. Believing their beloved stock will rise ever higher, they willingly ignore the valuation fundamentals.  In fact, they can miss some very obvious warning signs before the… Read More

Among the phrases that investors hate to hear, “accounting restatements” ranks near the top.  At a minimum, it means that a company maintained sloppy accounting standards. Worst case, it means that a fraud was perpetrated, such as a leading sales executive lying about contracts or a financial officer… Read More

Among the phrases that investors hate to hear, “accounting restatements” ranks near the top.  At a minimum, it means that a company maintained sloppy accounting standards. Worst case, it means that a fraud was perpetrated, such as a leading sales executive lying about contracts or a financial officer… Read More

When stocks or commodities are tumbling, traders start to prepare for “capitulation.” That’s typically the final phase in a sell-off, characterized by a complete absence of buyers and one last massive exit by sellers.  Investors are hoping we are nearing the capitulation phase in oil prices and related stocks. First,… Read More

Michael Corbat has circled Jan. 5, 2015, on his calendar. That’s when his administrative staff at Citigroup (NYSE: C) will turn in reams of paperwork for the Federal Reserve’s Comprehensive Capital Analysis and Review (CCAR). And when regulators get back to Corbat in subsequent weeks, he may finally be able… Read More

Investing in growth stocks often creates a real challenge. If you buy shares in anticipation of eventual strong growth, you may be too early, especially if the sales growth trajectory takes longer than expected to play out. It’s often wiser to do your homework, confirm that a company’s long-term growth… Read More

Investing in growth stocks often creates a real challenge. If you buy shares in anticipation of eventual strong growth, you may be too early, especially if the sales growth trajectory takes longer than expected to play out. It’s often wiser to do your homework, confirm that a company’s long-term growth… Read More

Mike Ullman deserves a heckuva lot of credit. He inherited an absolute mess when he retook the reins of beleaguered retailer JC Penney (NYSE: JCP) roughly 18 months ago. Thanks to moves he made, the company is no longer on a fast-track to bankruptcy.  After reporting a loss of more… Read More

It was a good party while it lasted. Investors were swept up in “Macau fever,” bidding up any and all investments that profited from the Chinese protectorate’s newfound status as the Las Vegas of Asia.  And few had it as good as Melco Crown Entertainment (NASDAQ: MPEL). The company opened… Read More