My Best Ideas 17 December 2017 This is a list of companies that have a very nice estimated one year return on invested capital based on the sum of the delta of the one year estimated price target plus the calculated one year dividend yield. (Full List)
New Highs 17 December 2017 This is a list of companies that are currently hitting new highs plus have an estimated 5 year earnings growth rate in excess of 25%. As this growth is recognized, these shares are pushed higher and become good swing trades. (Full List)
Dividend Increases 18-22 December 2017 This is a list of companies that have recently increased their dividends. The list includes the amount plus the per cent increase, the forward dividend yield, and the ExDividend, Record and Payment dates. (Full List)
Another Week, Another New High 10 December 2017 Last week the DJIA moved above 24,500 for another new high and nobody noticed. New highs have gotten so routine these days they just don't make the news anymore. Everyone has simply been lulled into a deep sleep, and that's when the unexpected usually happens. Notice that the DJIA is not only moving higher, it's actually accelerating away from the 20 and 40 wma. That kind of action is great for long term holders of mutual funds and ETFs but it's turning everyone into a momentum investor. If value investors find it difficult to find stocks to trade because everything is getting too expensive, the averages will run out of buyers. Monday Close: All the averages hit new highs on Monday but that wasn't the news. Bitcoin futures started trading today and that's what everyone was talking about. Bitcoin trading is becoming the new bubble and really of no interest to me. This is pure gambling at that always end in disaster for the majority of small investors. Tuesday Close: Another day, another new high on the DJIA. It's really been an amazing ride. But the last saw a small pullback as traders prepared for any announcements by the FED on interest rates. Everyone is expecting a rate hike this week. Wednesday Close: Today opened higher as the averages set new all time highs. By noon attention turned to the rate hike and the markets wavered. While the day didn't end as well as it could have, it still was a pretty nice day. Thursday Close: The DJIA started off the day setting another new high but quickly reversed and headed lower. By the end of the day the DOW was down 76 points at 24,508. It's becoming more and more obvious that this year has been absolutely fabulous and may well end up 25% for the year.
Summit Materials 12 December 2017 Summit Materials is one of the fastest growing construction materials companies in the US, with a 76% increase in revenue between the year ended Dec 2012 and the year ended Dec 2016, as compared to an average increase of approximately 39% in revenue reported by competitors. Materials include aggregates and cement. (Full Article)
Q2Earth 6 November 2017 With no news being announced, Q2Earth moved a higher at the end of the trading day today. This is always good news but more important than the size of the move is the fact that it moved back above its 40 wma. This could be nothing at all or it could be the start of move a lot higher.
I.D. Systems 4 December 2017 I.D. Systems produces wireless asset management systems for companies with industrial trucks, rental vehicles, and transportation assets. The Company uses wireless communication technologies as well as sensor technology and proprietary software to manage high-value corporate assets (Full Article)
Penumbra 29 November 2017 Penumbra is a global healthcare company focused on interventional therapies. The Company designs, develops, manufactures and markets innovative devices and has a broad portfolio of products that address challenging medical conditions and significant clinical needs across two major markets, neuro and peripheral vascular. (Full Article)
Three Stocks on My Watchlist for Accumulation 21 November 2017 All three of these companies have great fundamentals but have recently pulled back in price making them desirable candidates for accumulation. (EXEL, ICHR, PCTY)
Exelixis, 5yr EPS 46%, PT $33
Ichor, 5yr EPS 45%, PT $36
Paylocity, 5yr EPS 32%, PT $55
RCI Hospitality 20 November 2017 If you haven't noticed the chart of RICK, you haven't been reading my articles here or my posts on StockTwits. You've also missed a very nice two year uptrend from $8, and I don't think the move is over yet. As this company rolls out its military themed casual dining restaurants, the stock should continue higher. A lot higher.
Best Inc. 16 November 2017 Bouncing around the net recently I got introduced to Best. It's a logistics and package delivery located in China. With earnings of a couple of pennies this year, about fifty cents next year, and over a dollar the next year, this could really take off. I'm buying.
Q2Earth 14 November 2017 Q2Earth, Inc. focuses on the manufacture and sale of compost and engineered soils from recycled waste for the agriculture, horticulture, construction, and infrastructure sectors. The company was formerly known as Q2Power Technologies, Inc. and changed its name to Q2Earth, Inc. in August 2017. (Full Article)
Celgene 13 November 2017 Celgene is an established large cap BioTech company with a nice track record of profitability. Management is top notch and has a proven track record of bringing drugs to market. Celgene has a long list of drugs bringing in multiple streams of revenue into the company. It's sudden pullback may be an opportunity for investors. (Full Article)
Moving Averages and Momentum Indicators 9 November 2017 When I’m looking at stock charts with several indicators displayed, one of the indicators I like to see is three moving averages. My favorite ones are the 5, 10 and 20 period moving averages. On a daily chart that would be 5, 10 and 20 days. On a weekly chart that would be 25 days (5 weeks), 50 days (10 weeks), and 100 days (20 weeks). (Full Article)
Investing For Your Lifetime 6 November 2017 A long time ago when my son was a little boy he asked me what was the difference between capitalism and socialism. I thought about his question for a few moments and told him that capitalism was how I got my money, socialism was how he got his. (Full Article)
It's Getting Harder to Make Money 27 October 2017 It's getting harder and harder to make money in the market recently. It's only a gut feeling but it feels real. Even great stocks are starting to stumble while a select few continue up. The breadth of the move higher feels smaller. I'm becoming very cautious lately. This may be only a consolidation but the uptrend feels like it's stalling.
Up on a Down Day 26 October 2017 Despite yesterday's pullback, 154 companies managed to hit new highs. Of those, there were 10 that have an estimated 5 year earnings growth rate greater than 25%. These are the ones that will most likely do the best in any kind of trading environment and are worth keeping an eye on. KKR, CF, MKSI, HDNG, CRM, TDY, DIOD, PAYC, ON, CMA
Thoughts on Stock Options 23 October 2017 I'm often asked how I use put and call options as part of my investing strategy. On the "Investing" drop down above you'll see a section labeled "Options". It lays out how I add options into my overall strategy. The key for me is to never buy options, only sell them. I sell short term and out of the money puts and calls which enhances the probability of success. (Full Article)
Investing in New Highs 22 October 2017 Companies that have future earnings estimates of 25% or more can be very appealing to investors looking to increase the value of their portfolios. But high earnings estimates can often go undetected for extended periods of time. Once recognized, investors tend to push these shares into new high territory for an extended period of time creating a nice opportunity for a swing trade. But it can also be a risky trade. These shares can often be over extended so a tactic that includes risk avoidance should be implemented. (Full List)
General Electric Bottoms Out 19 October 2017 There's no doubt General Electric has been in trouble for a very long time. Even if you don't know the story behind the fall, one look at the price chart and it's obvious. It hit a high of $31.66 in the summer of 2016 and has fallen ever since. I can't imagine any shareholder that's happy. (Full Article)
General Electric Weekly Chart
Walmart is Breaking Out 17 October 2017 Walmart broke out of a Darvas Box last week with support and resistance from $74 to $82. In fact it broke out of a previous $64 to $74 Darvas Box earlier in the spring as it broke through its 40 week moving average and continued to move higher. It's a classic upward trend movement and it continued higher last week. (Full Article)
Walmart Weekly Chart
The First 30 Minutes of the Trading Day 16 October 2017 The first 30 minutes of every trading day is the most dangerous time of the day for me. I generally don’t trade during this time. During this period there's often buy and sell orders that have been stacked up since the previous close by part time investors that spent the prior evening doing their research and putting in their buy and sell orders. (Full Article)
Idera Pharmaceuticals 12 October 2017 Idera is a clinical-stage biopharmaceutical company focused on oncology and rare diseases. Idera uses two distinct drug discovery technology platforms to design and develop drug candidates: (1) Toll-like receptor targeting technology and (2) a third-generation antisense technology. They were developed based on scientific expertise and the Company's pioneering work with synthetic oligonucleotides. (Full Article)
Idera Pharmaceuticals Weekly Chart
Mannkind Corp 10 October 2017 A quick look at Mannkind Corp reveals a stock chart with shares moving higher. A lot higher. For me this is a company that's almost too small to analyze fundamentally, but technically it's exploding. The initial time to have bought shares was in mid-August as the price moved above the 50 dma. If that point was missed, then the retest of the 50 dma.... (Full Article)
Mankind Corp Weekly Chart
Iteris Inc 9 October 2017 Iteris is the global leader in applied informatics for transportation and agriculture, turning big data into big breakthrough solutions. The firm collects, aggregates and analyzes data on traffic, roads, weather, water, soil and crops to generate precise informatics that lead to safer transportation and smarter farming. (Full Article)
Iteris Weekly Chart
Gene Therapy Companies 5 October 2017 Gene therapy is an experimental technique that uses genes to treat or prevent disease. In the future, this technique may allow doctors to treat a disorder by inserting a gene into cells instead of using drugs or surgery. Today I just want to do an assessment of a few gene therapy companies and see their fundamentals and technicals. (Full Article)
My Best Advisor is Me 3 October 2017 I've been reading and re-reading many of the articles found on this website to learn from one of the best teacher's in the world -my own experience. It's something every investor should do. And do often. Learn from their own successes and failures. From their own experience. It turns out that personal experience really is the best teacher after all. (Full Article)
A High Beta Put-Call Strategy 1 October 2017 Occasionally while screening stocks on the weekend I come across a high beta security that exhibits a lot of up and down movement in the short term but little if any movement in the long term. These two relative degrees of volatility can often be recognized by viewing any volatility on the daily chart versus volatility on the weekly chart. (Full Article)
A Quick Look at Kindred BioSciences 28 September 2017 When one of Kindred BioScience's founders was the Chief Executive Officer of OneWorld Health, he noticed something extraordinary. Richard was developing drugs to fight diseases like malaria and cholera. As he searched high and low for new drugs, he realized that drugs for neglected diseases often come from the veterinary field. (Full Article)
Interface Inc Revisited 26 September 2017 Interface is the future of carpeting for both home and office. It's the largest manufacturer of modular carpet that needs minimal installation and can be done literally by anyone. By installing it as squares or planks, the carpet can be easily removed or replaced in a single afternoon. The company was founded in 1973, and is based in Atlanta, Georgia. (Full Article)
Micron Technology 21 September 2017 DRAM producers are notoriously famous for being cyclical. Micron Technology is no different. So for me this could never be a long term investment. The way I'm approaching it is through swing trading. Projections have this stock going to $43 within the year and I think that's very possible. But being a cyclical stock, I'll be watching this closely. (Full Article)
Manipulating the Genome 19 September 2017 As most will agree, the search for the medical cures of tomorrow will ultimately be found inside the Human Genome. And those cures will be treated by editing the gene sequences to eliminate the defective sequences. We're only now scratching the surface of this relatively new technology and there'll be both corporate winners and losers..... (Full Article)
Investment Risk vs Inflation 14 September 2017 I wish I could invest without risk. I wish I could get a guaranteed return on my investment. I wish there was no such thing as inflation. But wishing for things is simply the desire for things that I have no other way of getting. Risk is everywhere and inflation has been around longer than I’ve been alive. Unfortunately both are here to stay. (Full Article)
News is a Lagging Indicator 12 September 2017 For the most part, there’s always a lag in the news. It’s not as bad as it use to be but it’s still there. The news media are always reporting something that’s already happened. Sometimes days ago, sometimes only a few hours ago, but for the most part the event is already over and professional traders have already placed their trades. (Full Article)
Pragmatism in Investing 11 September 2017 Stocks don’t go up or down forever. They go up as long as investors push them up and they go down as long as investors push them down. In each case they will eventually reverse and head in the opposite direction. They do this for many reasons like product cycles, earnings surprises, buying seasons, management changes, fed policy, wars and more. (Full Article)
Edwards Lifesciences 8 September 2017 Edwards Lifesciences is the global leader in patient-focused innovations for structural heart disease and critical care monitoring. A pioneer in the development of heart valve therapies, the Company is the world’s leading manufacturer of heart valve systems and repair products used to replace or repair a patient’s diseased or defective heart valve. (Full Article)
Edwards Weekly Chart
Abeona Therapeutics 7 September 2017 Abeona, a biopharmaceutical company, focuses on developing and delivering gene therapy and plasma-based products for severe and life-threatening rare diseases. The company offers MuGard, a mucoadhesive oral wound rinse for mucositis, stomatitis, aphthous ulcers, and traumatic ulcers; and ProctiGard, a mucoadhesive oral wound rinse.... (Full Article)
Abeona Weekly Chart
ImmunoGen Inc 6 September 2017 ImmunoGen, a clinical-stage biotechnology company, develops targeted anticancer therapeutics. The company develops its products using its antibody-drug conjugate technology. The company's product candidates include mirvetuximab soravtansine, an ADC targeting folate-receptor alpha for the treatment of platinum-resistant.... (Full Article)
ImmuneGen Weekly Chart
Corcept Therapeutics 5 September 2017 Corcept, a pharmaceutical company, discovers, develops, and commercializes drugs for the treatment of severe metabolic, oncologic, and psychiatric disorders in the United States. It offers Korlym (mifepristone) tablets as a once-daily oral medication for the treatment of hyperglycemia secondary to hypercortisolism in adult patients with.... (Full Article)
Corcept Weekly Chart
Always Have an Exit Strategy The exit strategy is always a mandatory precondition for any trade I enter. All other strategies will have disaster embedded at their core. All other strategies are simply an emotional reaction to events external to the markets. All other strategies will accentuate a reward while ignoring the damage that's incurred by accepting such an extensive implied risk. These are the strategies that I personally refuse to implement into my trading strategy. (Full Article)
The Spoils of Investing Sometimes it's good to take money out of the market and enjoy the spoils of investing. Not everything needs to be continually reinvested back into the markets. Three years ago I decided to spoil my son. So I got him this Nissan 370Z. It's been a great car. He's been a great kid!
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In 2016 the DJIA ended at 19,762
In 2015 the DJIA ended at 17,425
In 2014 the DJIA ended at 17,823
In 2013 the DJIA ended at 16,576
In 2012 the DJIA ended at 13,104
In 2011 the DJIA ended at 12,217
In 2010 the DJIA ended at 11,578
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My Investing Strategy I like to keep things simple when I invest because I'm a pretty simple guy. And I don't think there's a simpler or an easier way to invest than "Buy, Write, Collect". Here's the three steps in their entirety. 1. Buy the Stock, 2. Write the Option, and 3. Collect the Dividend. (Full Article)
A Basic Options Strategy If you’ve ever considered an options strategy as part of your overall investment strategy, here’s a relatively simple trade that I often execute to supplement my dividend income. (Full Article)
Reviewing Those Dividend Increases I've listed companies increasing their dividend in the Dividend Increases part of this site because I've found this to be a fertile area for finding candidates for consideration. Companies that pay an annual dividend of at least 2% and increase that dividend at a rate greater than inflation for a number of years are the kind of companies that every DGI is attracted to. And if that company has a one year estimated capital gain of 10% or more, I start to buy shares in that company.
Buying Great Companies I've posted a lot of great companies that have raised their dividend pretty consistently over the years and that's the key to becoming a successful investor. It's really not as hard as most people think. Study those companies that raise their revenues, earnings and dividends over an extended period of time. Read their history. And learn what makes a great investment.
DISCLAIMER I am not a licensed investment adviser, and I am not providing investment advice for you on this site. Please consult with an investment professional before you invest your money. Any opinion expressed here should not be treated as investment advice. I am not liable for any losses suffered by any party because of data or information published on this blog. Past performance is not a guarantee of future performance. Unless your investments are FDIC insured, they may decline in value.