Thursday, April 3, 2025
Dear Investor, Share buybacks have become the rage for companies with large amounts of excess profits or free cash flow. Wall Street analysts love share buybacks as a way to “return capital to shareholders,” and many boards of directors give a lot of weight to what the analysts who follow their companies say. My opinion […]
Trend in the indexes are still up… Trend in many growth stocks is down… So we want to look for opportunities that are better matching the index trend pointing up. Right now, I’m looking at a trade that tends to do very well in December. Th stock has been consolidating for a few months and […]
Dear Reader, Last week, one of my recommended stocks, Starwood Property Trust (STWD), announced a $400 million secondary offering of common stock. The new shares will go to institutional investors and typically get priced at a discount to where the stock currently trades. As a result, the STWD share price dropped 3.5% the day after […]
Investors may want to keep an eye on casino stocks, like MGM Resorts International (MGM). After dropping from a high of about $51 to about $38, it appears the MGM stock has bottomed out. Not only is the MGM stock holding triple bottom support dating back to July, it’s incredibly oversold on relative strength (RSI), […]
Dear Reader, The recent stock market volatility reminds me again of the power of reinvesting the income from your dividend investment strategy. Once you understand the compounding power of dividend reinvestment, you realize that it’s very good for your long-term wealth when the stock market goes through a period of decline. It’s something my Dividend […]
Dear Reader, A recent Wall Street Journal article, “The Rules of Retirement Spending Are Changing,” did not bring good news. Instead, the article clearly reveals that traditional financial planning rules for retirement will not work for those who have diligently saved to fund a comfortable life after decades of work. I want to propose a […]
Market volatility is back and it has resulted in quite a bit of options action. One options chain that has been very active lately is Twitter (TWTR). The popular microblogging site has seen its stock drop substantially since the latest earnings release. Just this week, current CEO Jack Dorsey announced he is stepping down to […]
Black Friday was a day for the algorithms. Bad news on the Covid front sent a shock wave through the system while many traders were at the dinner table or shopping mall and NOT at their trading desk. Oil was down 13%… that’s a nasty day. Does that mean energy is set to drop? What […]
Dear Reader, Recent earnings coming out of the retail sector show how important management decisions have become in this era of supply chain challenges and high inflation. Stocks have stopped moving in tandem with their peers. Those who can pick the best companies, with the best management teams, as their investments will significantly outperform the […]
Retails stocks have seen a lot of options action lately including Starbucks (SBUX). The coffee giant normally trades about 55,000 options a day, but saw nearly double that on a day last week when the stock was up about 2%. Over 80% of the action was in calls, which tends to be a bullish sign. […]
