There are times when it makes sense to take bullish positions in breakout stocks ahead of long-term advances. And then there are periods when that strategy is dangerous because equities have already advanced to the point where breakouts are prone to failure. In today’s market, in which we have blue-chip… Read More

The past five years have been a tumultuous period for U.S. natural gas prices. The widespread use of “fracking” to release gas from shale formations revolutionized the industry, dramatically increasing production. As a direct result of massive supply hitting the market, natural gas prices spiraled lower, briefly dropping below $2… Read More

Deepwater drilling company Atwood Oceanics (NYSE: ATW) has faced some challenges in the past year. Shares hit a 52-week high of $59.49 in August, but a delay in the startup of the company’s Atwood Advantage ultra-deepwater rig was at least partly to blame for the stock declining all… Read More

The private equity business has always been largely inaccessible to all but the most elite investors. Firms such as The Blackstone Group (NYSE: BX) and Kohlberg Kravis Roberts & Co. (NYSE: KKR) raise billions of dollars primarily from institutional investors and use the capital to invest in situations… Read More

Shares of offshore drilling contractor Noble Corp. (NYSE: NE) has lost more than 20% over the past 12 months. One of the reasons is that the company has 17 different contracts that expire in 2014 and have not yet been renewed, creating uncertainty. The fact that NE has lost ground… Read More

As a general rule, I typically avoid using a put selling strategy with stable blue chips. The reason is these slow-moving stocks usually have very low levels of volatility. Low volatility naturally results in lower option prices, which in turn, reduces our level of profits when selling our… Read More

As a general rule, I typically avoid using a put selling strategy with stable blue chips. The reason is these slow-moving stocks usually have very low levels of volatility. Low volatility naturally results in lower option prices, which in turn, reduces our level of profits when selling our… Read More

There are few technology companies less exciting than Microsoft (NASDAQ: MSFT). IBM (NYSE: IBM) may come close, but even “Big Blue” has managed to build a consulting arm that has a certain level of innovation to it. While Microsoft’s business model may not have changed for quite some time,… Read More

There are few technology companies less exciting than Microsoft (NASDAQ: MSFT). IBM (NYSE: IBM) may come close, but even “Big Blue” has managed to build a consulting arm that has a certain level of innovation to it. While Microsoft’s business model may not have changed for quite some time,… Read More

Boring has become the new “sexy” for investment managers as they turn away from speculative growth stocks and toward more stable blue-chip names.  Earlier this week, I presented a chart of the S&P 500 compared to the Russell 2000. The difference is remarkable as capital can be seen… Read More

Boring has become the new “sexy” for investment managers as they turn away from speculative growth stocks and toward more stable blue-chip names.  Earlier this week, I presented a chart of the S&P 500 compared to the Russell 2000. The difference is remarkable as capital can be seen… Read More

In today’s market, blue-chip stocks are generally fetching a premium because of the stability they offer. Investment managers have begun paring back exposure to speculative, high-multiple growth stocks, and institutional capital has been flowing into large-cap stocks with more stable long-term earnings. The chart below offers a good visual of… Read More

In today’s market, blue-chip stocks are generally fetching a premium because of the stability they offer. Investment managers have begun paring back exposure to speculative, high-multiple growth stocks, and institutional capital has been flowing into large-cap stocks with more stable long-term earnings. The chart below offers a good visual of… Read More

The capital rotation out of speculative growth stocks continues. On Wednesday, shares of Whole Foods Market (NASDAQ: WFM) were crushed after the company missed earnings estimates and reported same store-sales below investor expectations. Shares of speculative tech stocks have also been hit hard this week, with Twitter (NYSE: TWTR) and… Read More

The capital rotation out of speculative growth stocks continues. On Wednesday, shares of Whole Foods Market (NASDAQ: WFM) were crushed after the company missed earnings estimates and reported same store-sales below investor expectations. Shares of speculative tech stocks have also been hit hard this week, with Twitter (NYSE: TWTR) and… Read More