Friday, February 7, 2025
A secondary stock offering comes with a sharp drop in a company’s stock price. Rapid price declines make investors nervous, wondering if the company is facing troubles. The recent sale of 6.5 million new shares by one of my favorite high-yield dividend stocks highlights how this type of transaction can benefit investors. Let me show […]
Stability can be a virtue in any economic climate. Consumer staple stocks are the very epitome of stability. An analysis by Verdad Research found the sector had the lowest income statement volatility of any listed sector between 1996 and 2023. Most companies that make consumer staples have reliable cash flows and steadily growing dividends—and history […]
In the past year and a half or so, there’s been lots of talk about the U.S. yield curve essentially inverting. So today, I wanted to make a couple of important points about it that’s important for you to see. As you know, the yield curve visually depicts how bond maturity dates and interest rates […]
I’ve found two opportunities for massive profits. Both are low-priced stocks that the market is ignoring and insiders are buying. Even better, both appear to have enough of a margin of safety in the balance sheet that we are not risking a permanent long-term loss of principal. In the normal course of business, both stocks […]
Rapid demand growth thanks to the energy transition away from fossil fuels could lead to a shortage of several metals over the next decade unless there’s more investment in the segment. This is according to the Energy Transitions Commission (ETC), a global group of power and industrial companies, consumers, financial institutions, and scientists. Large supply […]
Most of the time, preferred stock shares are pretty boring. However, the rapid increase in interest rates has turned a subset of the preferred universe into potentially outstanding investment opportunities. You could dig out the right preferred stocks yourself or invest in an ETF that does precisely that. Let me show you how to do […]
Covered calls can be a strategic path towards increasing cash flow on a position while waiting for it to rally. For instance, last week a trader purchased 15,000 covered calls in iShares MSCI Emerging Markets ETF (EEM). EEM is a popular asset class ETF used to gain exposure to emerging markets. This trade is using […]
Sometimes, the old saying goes, you gotta pull the bat back and swing for the fences. After all, “ya gotta take chances.” Babe Ruth not only hit the most home runs but also struck out more than most people who played the game. The inference is that you can risk it all on mammoth swings […]
Earnings season offers unique opportunities. This is a time when management teams host conference calls for Wall Street analysts. Listening to calls or reading the transcripts gives me insight into how well companies are managed. I believe that most analysts and investors do not pay enough attention to management teams and whether or not they […]
There has been an unexpected winner in the bond market in 2023: emerging market bonds. This is especially true for emerging market bonds priced in local currencies. Currently, the gap in government borrowing costs between emerging markets and U.S. Treasuries is at its best level since 2000. The reason is that investors are pricing in […]
