Matthew D. McCall - Seeking Alpha 'Matthew D. McCall' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/author/matthew-d-mccall Three Opportunities in Bond ETFs http://seekingalpha.com/article/158636-three-opportunities-in-bond-etfs?source=feed 158636 The 50 percent rally in the S&P 500 over the last five months has garnered the attention of investors and has not left much room in the headlines for other asset classes. Sure commodities get some mention from time to time, but even oil and gold have taken a backseat to equities. One asset class that has been shunned off to the Island of Misfits has been corporate fixed income. Corporate bonds have never been the “sexy” investment, but there are times when it is imperative to have exposure to the asset class - I still believe now is a good time to own bonds of all types.
To put the recent moves in perspective, the S&P 500 bottomed in March 2009 and has rallied 50 percent from the low; the Dow Jones Corporate Bond Index has gained 31% from its low in October 2008. There is a clear under performance; however the risk is less for bonds in general. When comparing corporate bonds to treasuries, the spread between the US long bond and an AAA-rated corporate bond was 185 basis points in July, down slightly from May. The spread using the BBB-rated corporate bond, which is still investment-grade, is 353 basis points. The historical average for the AAA-rated is 80 basis points and 178 basis points for the BBB-rated. As you can see the spreads are much higher than normal; but they are also much narrower than they were in the fourth quarter of 2008.
This abnormality caused our firm to begin buying bond ETFs in early 2009 because the opportunity was too good to pass up - the upside was a high dividend yield and the potential for capital appreciation. So far we have been lucky enough to get both. So even though the corporate bond opportunity today is not what it was six months ago, I still believe investors has upside potential with attractive yields that are tough to pass up. Below are a couple bond ETF ideas for investors. I even threw in a muni bond ETF idea I felt was under the radar and offering a great opportunity.
iShares iBoxx Corporate Bond ETF (LQD) - The investment-grade bond ETF invests in a basket of corporate bonds that have a minimum rating of BBB- from Standard & Poor’s. Approximately 75 percent of the holdings are rated A- or better, putting the ETF in a position that the bonds will not likely default in the future. The largest holding in the ETF makes up just over 1 percent of the allocation and there are currently 103 bonds in total. The current yield on the ETF is 5.6 percent and the dividend is paid on a monthly basis to shareholders. The ETF recently hit the highest level in over a year and since March LQD has been steadily moving higher with a consistent dividend payment. This ETF would be a play on more upside in the price of bonds as the yield divergence between corporate and treasuries sends corporate bond yields lower and the corporate bond prices higher. The end result is more upside in price for LQD and locking in at an attractive annual yield.
SPDR Lehman High Yield Bond ETF (JNK) - Investors that intend to cover the entire spectrum of corporate bonds could buy JNK to go along with LQD, as I have done for clients. The makeup of JNK is just the opposite of LQD, the ETF has 98 percent of its holdings below the BBB rating and is composed of high yield (or junk) corporate bonds. With the higher risk comes the potential for more capital appreciation and higher yields. JNK is currently yielding 11 percent
Market Vectors Municipal High Yield ETF (HYD) - HYD was the first ETF to concentrate on high yield municipal bond and caught my attention from day one. The ETF is composed of a basket of high yielding municipal bonds that 75 percent junk status and 25 percent investment grade rated. Considering the ETF is composed of municipal ETFs they are exempt from federal income tax and in many circumstances they are state and local tax free as well. With a distribution yield of 7 percent, the ETF returns an after-tax return of 10.8 percent for taxpayers in the 35 percent tax bracket. Since the ETF began trading in February it is up 9 percent and throwing in the high dividend yield makes the return even higher. I believe HYD is a hidden gem for investors that fall into a high federal tax bracket and are looking for a steady flow of average-risk income with large fluctuations in the underlying security. Keep in mind HYD works best in a taxable account and is not passing along the tax advantages in a tax-deferred account.
Disclosure: In one capacity or another I own shares of all three ETFs for either myself or clients of Penn Financial Group or they have been recommended in The ETF Bulletin newsletter.
]]> Thu, 27 Aug 2009 09:48:51 -0400 Matthew D. McCall The 50 percent rally in the S&P 500 over the last five months has garnered the attention of investors and has not left much room in the headlines for other asset classes. Sure commodities get some mention from time to time, but even oil and gold have taken a backseat to equities. One asset class that has been shunned off to the Island of Misfits has been corporate fixed income. Corporate bonds have never been the “sexy” investment, but there are times when it is imperative to have exposure to the asset class - I still believe now is a good time to own bonds of all types.
To put the recent moves in perspective, the S&P 500 bottomed in March 2009 and has rallied 50 percent from the low; the Dow Jones Corporate Bond Index has gained 31% from its low in October 2008. There is a clear under performance; however the risk is less for bonds in general. When comparing corporate bonds to treasuries, the spread between the US long bond and an AAA-rated corporate bond was 185 basis points in July, down slightly from May. The spread using the BBB-rated corporate bond, which is still investment-grade, is 353 basis points. The historical average for the AAA-rated is 80 basis points and 178 basis points for the BBB-rated. As you can see the spreads are much higher than normal; but they are also much narrower than they were in the fourth quarter of 2008.
This abnormality caused our firm to begin buying bond ETFs in early 2009 because the opportunity was too good to pass up - the upside was a high dividend yield and the potential for capital appreciation. So far we have been lucky enough to get both. So even though the corporate bond opportunity today is not what it was six months ago, I still believe investors has upside potential with attractive yields that are tough to pass up. Below are a couple bond ETF ideas for investors. I even threw in a muni bond ETF idea I felt was under the radar and offering a great opportunity.
iShares iBoxx Corporate Bond ETF (LQD) - The investment-grade bond ETF invests in a basket of corporate bonds that have a minimum rating of BBB- from Standard & Poor’s. Approximately 75 percent of the holdings are rated A- or better, putting the ETF in a position that the bonds will not likely default in the future. The largest holding in the ETF makes up just over 1 percent of the allocation and there are currently 103 bonds in total. The current yield on the ETF is 5.6 percent and the dividend is paid on a monthly basis to shareholders. The ETF recently hit the highest level in over a year and since March LQD has been steadily moving higher with a consistent dividend payment. This ETF would be a play on more upside in the price of bonds as the yield divergence between corporate and treasuries sends corporate bond yields lower and the corporate bond prices higher. The end result is more upside in price for LQD and locking in at an attractive annual yield.
SPDR Lehman High Yield Bond ETF (JNK) - Investors that intend to cover the entire spectrum of corporate bonds could buy JNK to go along with LQD, as I have done for clients. The makeup of JNK is just the opposite of LQD, the ETF has 98 percent of its holdings below the BBB rating and is composed of high yield (or junk) corporate bonds. With the higher risk comes the potential for more capital appreciation and higher yields. JNK is currently yielding 11 percent
Market Vectors Municipal High Yield ETF (HYD) - HYD was the first ETF to concentrate on high yield municipal bond and caught my attention from day one. The ETF is composed of a basket of high yielding municipal bonds that 75 percent junk status and 25 percent investment grade rated. Considering the ETF is composed of municipal ETFs they are exempt from federal income tax and in many circumstances they are state and local tax free as well. With a distribution yield of 7 percent, the ETF returns an after-tax return of 10.8 percent for taxpayers in the 35 percent tax bracket. Since the ETF began trading in February it is up 9 percent and throwing in the high dividend yield makes the return even higher. I believe HYD is a hidden gem for investors that fall into a high federal tax bracket and are looking for a steady flow of average-risk income with large fluctuations in the underlying security. Keep in mind HYD works best in a taxable account and is not passing along the tax advantages in a tax-deferred account.
Disclosure: In one capacity or another I own shares of all three ETFs for either myself or clients of Penn Financial Group or they have been recommended in The ETF Bulletin newsletter.

Complete Story »]]> HYD JNK LQD Matthew D. McCall Back-to-School Retail Winners http://seekingalpha.com/article/158350-back-to-school-retail-winners?source=feed 158350 Aeropostale (ARO) - A poor man’s version of Abercrombie & Fitch (ANF), ARO has been able to blow away the competition in the mid-tier teen clothing sector. The company saw sales increase by 20% during the second quarter and as parents try to find their demanding teens “fashionable” clothes, ARO will be the destination due to reasonable prices. Stock is currently hitting an all-time high and can be bought on all pullbacks.
Ross Stores (ROST) - The company’s motto is “dress for less” and there will be many parents following the same strategy as they prepare to clothe their children for the upcoming school year. Company has grown sales the last two quarters and earnings per share rose 52% in the second quarter. Similar to ARO, ROST is hitting an all-time high and should be bought on down days only.
Target (TGT) - When it comes to stocking up on school supplies the question is whether shoppers will flock to the large discounters (Target or Wal-Mart (WMT)) or the dollar stores or possibly drug stores such as CVS Caremark (CVS)? The final decision may come down to selection and convenience and I believe Target will come out the winner. Target has the selection, there is a good chance the shopper will already be in the store, and the pricing is attractive. Target also has the allure of low-end designer clothing that beats out Wal-Mart's clothing line.
Best Buy (BBY) - One of the few areas shoppers are expected to increase their spending over last year is on electronics, which are now a necessity for students. Everything from the low-priced laptops to calculators will be flying off the shelves at Best Buy now that there are not many direct competitors. The stock has lagged the market rally the last few months and is due for a breakout.
True Religion (TRLG) - This pick flies in the face of everything I have written up until now. The high-end apparel company is best known for their denim line that can run well over $300 for a pair of jeans. I look at this stock in two ways. One, the demand for high-end fashion continues to live on and TRLG is the best play on teens trying to impress with brand name jeans. Heck, I even own several pairs. Two, the fundamentals at TRLG are mind blowing for their industry; they continue to report growth at both the top and bottom lines.
Urban Outfitters (URBN) - For the late teen and college crowd there is URBN, a store that is more fashion forward, but with prices that are reasonable. The company is also taking advantage of their online sales, seeing 17% growth last quarter. The stock has more than doubled off the March lows, but remains well below the 2008 highs.
]]> Wed, 26 Aug 2009 06:46:42 -0400 Matthew D. McCall Aeropostale (ARO) - A poor man’s version of Abercrombie & Fitch (ANF), ARO has been able to blow away the competition in the mid-tier teen clothing sector. The company saw sales increase by 20% during the second quarter and as parents try to find their demanding teens “fashionable” clothes, ARO will be the destination due to reasonable prices. Stock is currently hitting an all-time high and can be bought on all pullbacks.
Ross Stores (ROST) - The company’s motto is “dress for less” and there will be many parents following the same strategy as they prepare to clothe their children for the upcoming school year. Company has grown sales the last two quarters and earnings per share rose 52% in the second quarter. Similar to ARO, ROST is hitting an all-time high and should be bought on down days only.
Target (TGT) - When it comes to stocking up on school supplies the question is whether shoppers will flock to the large discounters (Target or Wal-Mart (WMT)) or the dollar stores or possibly drug stores such as CVS Caremark (CVS)? The final decision may come down to selection and convenience and I believe Target will come out the winner. Target has the selection, there is a good chance the shopper will already be in the store, and the pricing is attractive. Target also has the allure of low-end designer clothing that beats out Wal-Mart's clothing line.
Best Buy (BBY) - One of the few areas shoppers are expected to increase their spending over last year is on electronics, which are now a necessity for students. Everything from the low-priced laptops to calculators will be flying off the shelves at Best Buy now that there are not many direct competitors. The stock has lagged the market rally the last few months and is due for a breakout.
True Religion (TRLG) - This pick flies in the face of everything I have written up until now. The high-end apparel company is best known for their denim line that can run well over $300 for a pair of jeans. I look at this stock in two ways. One, the demand for high-end fashion continues to live on and TRLG is the best play on teens trying to impress with brand name jeans. Heck, I even own several pairs. Two, the fundamentals at TRLG are mind blowing for their industry; they continue to report growth at both the top and bottom lines.
Urban Outfitters (URBN) - For the late teen and college crowd there is URBN, a store that is more fashion forward, but with prices that are reasonable. The company is also taking advantage of their online sales, seeing 17% growth last quarter. The stock has more than doubled off the March lows, but remains well below the 2008 highs.

Complete Story »]]> BBY TGT TRLG ARO URBN ROST Matthew D. McCall Three Winning Health Care Stocks, With or Without Reform http://seekingalpha.com/article/157820-three-winning-health-care-stocks-with-or-without-reform?source=feed 157820 The debate across America rolls on as both sides of the aisle attempt to push their version of health care reform down the throats of taxpayers. There is no doubt in my mind that some type of major changes will occur in the industry in the next year or so, but the question is what and when? This uncertainty has forced me to underweight the health care sector in our newsletter and for clients. But after doing some more research this past week, I have found three health care stocks that are poised to do well with or with reform sweeping across the industry.

As part of the stimulus package, approximately $850 million will be allocated to community hospitals for upgrades to equipment, including IT. President Obama also pledged several times over the last year to put $40 billion in upgrading the nation’s health care IT from paper to electronic. This is a move that is well overdue and can help eliminate costs over the long-term.

]]> Sun, 23 Aug 2009 20:08:31 -0400 Matthew D. McCall The debate across America rolls on as both sides of the aisle attempt to push their version of health care reform down the throats of taxpayers. There is no doubt in my mind that some type of major changes will occur in the industry in the next year or so, but the question is what and when? This uncertainty has forced me to underweight the health care sector in our newsletter and for clients. But after doing some more research this past week, I have found three health care stocks that are poised to do well with or with reform sweeping across the industry.

As part of the stimulus package, approximately $850 million will be allocated to community hospitals for upgrades to equipment, including IT. President Obama also pledged several times over the last year to put $40 billion in upgrading the nation’s health care IT from paper to electronic. This is a move that is well overdue and can help eliminate costs over the long-term.


Complete Story »]]> CERN QSII HMSY Matthew D. McCall Three Overlooked High-Yield ETFs http://seekingalpha.com/article/152901-three-overlooked-high-yield-etfs?source=feed 152901 Investors have an opportunity to invest in ETFs that not only offer upside potential through capital appreciation, but also above average dividends. Whether you are a young or old investor, the thought of a regular sizable dividend payment is attractive.

Here are three ETFs that I believe will outperform the market along with a high dividend yield.

]]> Fri, 31 Jul 2009 12:17:00 -0400 Matthew D. McCall Investors have an opportunity to invest in ETFs that not only offer upside potential through capital appreciation, but also above average dividends. Whether you are a young or old investor, the thought of a regular sizable dividend payment is attractive.

Here are three ETFs that I believe will outperform the market along with a high dividend yield.


Complete Story »]]> JNK PFF HYD Matthew D. McCall Two Unique Approaches to Real Estate Investing http://seekingalpha.com/article/149952-two-unique-approaches-to-real-estate-investing?source=feed 149952 Investors attempting to gain exposure to the housing market/real estate will either play the housing market through buying an actual property or turn to the stock market for investment products. Typically the investors will turn to REITs (real estate investment trusts), home builder stocks, or an ETF that invests in the areas. I will offer 2 unique approaches to the real estate sector; one an ETF and the other a REIT.

The ETF is the Claymore/AlphaShares China Real Estate ETF (TAO), which invests in companies that derive the majority of their income from real estate operations in China. Nearly all the 39 stocks that make up the ETF are traded overseas in China or Hong Kong, though the one exception is E-House China Holdings Limited ADR (EJ). TAO began trading in December 2007 and hit a high of $27 before hitting a low of $7 in November 2008. After finding the bottom, the ETF has begun to attract more attention with the average volume quadrupling. The 7.9% GDP increase China reported in the second quarter has only helped the bullish case for the county and its real estate stocks.

]]> Mon, 20 Jul 2009 16:58:31 -0400 Matthew D. McCall Investors attempting to gain exposure to the housing market/real estate will either play the housing market through buying an actual property or turn to the stock market for investment products. Typically the investors will turn to REITs (real estate investment trusts), home builder stocks, or an ETF that invests in the areas. I will offer 2 unique approaches to the real estate sector; one an ETF and the other a REIT.

The ETF is the Claymore/AlphaShares China Real Estate ETF (TAO), which invests in companies that derive the majority of their income from real estate operations in China. Nearly all the 39 stocks that make up the ETF are traded overseas in China or Hong Kong, though the one exception is E-House China Holdings Limited ADR (EJ). TAO began trading in December 2007 and hit a high of $27 before hitting a low of $7 in November 2008. After finding the bottom, the ETF has begun to attract more attention with the average volume quadrupling. The 7.9% GDP increase China reported in the second quarter has only helped the bullish case for the county and its real estate stocks.


Complete Story »]]> CMO TAO Matthew D. McCall 5 IPOs with Strong Starts http://seekingalpha.com/article/147840-5-ipos-with-strong-starts?source=feed 147840 Despite beginning the year in one of the worst recessions in years, the IPO market been surprisingly strong with a diverse group of companies hitting the Street running. Of the IPOs that began trading in 2009, a large number are China-related. The market is passed the stage of pushing every stock with the word China in its name higher, but the real growth continues to be heavily populated country. A breakdown of a few of the IPOs is below.

Duoyuan Global Water (DGW) - Began trading on 6/24 after pricing at $16 per share. The stock ran up to the mid-$20’s in the first week of trading and has held steady since. The company is a maker of water treatment equipment in China that includes wastewater treatment and water purification. One of my favorite long-term investment themes involves water and water-related stocks. The ties DGW has to China make the stock even more attractive because the country has major water issues and will have to address them in the years to come. The most recent Chinese stimulus package is actually going after upgrading infrastructure and will be a boost for DGW.

]]> Thu, 09 Jul 2009 07:46:33 -0400 Matthew D. McCall Despite beginning the year in one of the worst recessions in years, the IPO market been surprisingly strong with a diverse group of companies hitting the Street running. Of the IPOs that began trading in 2009, a large number are China-related. The market is passed the stage of pushing every stock with the word China in its name higher, but the real growth continues to be heavily populated country. A breakdown of a few of the IPOs is below.

Duoyuan Global Water (DGW) - Began trading on 6/24 after pricing at $16 per share. The stock ran up to the mid-$20’s in the first week of trading and has held steady since. The company is a maker of water treatment equipment in China that includes wastewater treatment and water purification. One of my favorite long-term investment themes involves water and water-related stocks. The ties DGW has to China make the stock even more attractive because the country has major water issues and will have to address them in the years to come. The most recent Chinese stimulus package is actually going after upgrading infrastructure and will be a boost for DGW.


Complete Story »]]> CYOU MJN RST BPI DGW Matthew D. McCall 9 New High Candidates http://seekingalpha.com/article/138619-9-new-high-candidates?source=feed 138619 The list of stocks and ETFs breaking out to new multi-month highs is long and diverse today. I have chosen a few to highlight with my thoughts on each. Below is that list.

Market Vectors Gold Miners ETF (GDX) - The gold stocks are rising again today after pulling back last week with the overall market. A combination of a lower US dollar and the continuing uncertainty about where the economy is going has led to investors buying mining stocks. Add in the threat of inflation that I feel is VERY REAL and GDX should confirm its breakout and run to the mid-$40’s.

]]> Wed, 20 May 2009 04:04:43 -0400 Matthew D. McCall The list of stocks and ETFs breaking out to new multi-month highs is long and diverse today. I have chosen a few to highlight with my thoughts on each. Below is that list.

Market Vectors Gold Miners ETF (GDX) - The gold stocks are rising again today after pulling back last week with the overall market. A combination of a lower US dollar and the continuing uncertainty about where the economy is going has led to investors buying mining stocks. Add in the threat of inflation that I feel is VERY REAL and GDX should confirm its breakout and run to the mid-$40’s.


Complete Story »]]> UDN KO RSX MS MYRG UGA CFL CMO GDX Matthew D. McCall Three Important April Retail Same Store Sales Numbers: Wal-Mart, Aeropostale, Buckle http://seekingalpha.com/article/136359-three-important-april-retail-same-store-sales-numbers-wal-mart-aeropostale-buckle?source=feed 136359 The majority of retailers blew away lowered estimates Thursday morning, helping the market move higher at the open (before it pulled back in the lead-up to the stress tests being revealed). Three retailers that tell the story are listed below with my analysis of each stock.

  • Wal-Mart (WMT): +5% vs. +2.9%. Stock has struggle to get out of its own way recently after it gained 18% in 2008 and was one of the best performers in the market. WMT was down 11% heading into Thursday for the year, but was poised to open higher on the better than expected number. During the height of the recession WMT was the place to shop, it is now clear shoppers are moving on up again and leaving Wal-Mart behind. The stock is not a bad value play at current levels, but investors should be looking at more growth, high-end retailers.
  • Aeropostale (ARO): +20% vs. +9%. Stock has been on a tear recently and high a new intraday high on Wednesday before closing down 4%. A rally of over 180% since the low in December has the stock as one of the best performing retailers. The attractive price-point the company offers along with the fact parents are willing to curtail their spending for their teens has helped ARO continue with brisk sales. Buying the stock here is a reach due to the recent rally; a pullback must occur before I consider the stock a buy.
  • Buckle (BKE): +18.2% vs. +11.3%. The Buckle has been one of my favorite retailers for a long time because they have attractive price points along with a heavy reliance on denim. The numbers from denim giant True Religion (TRLG) Wednesday highlighted that sales of jeans continued right through a major recession. If you are able to get into BKE near $35 it would be a time to start buying.
]]> Fri, 08 May 2009 04:14:56 -0400 Matthew D. McCall The majority of retailers blew away lowered estimates Thursday morning, helping the market move higher at the open (before it pulled back in the lead-up to the stress tests being revealed). Three retailers that tell the story are listed below with my analysis of each stock.

  • Wal-Mart (WMT): +5% vs. +2.9%. Stock has struggle to get out of its own way recently after it gained 18% in 2008 and was one of the best performers in the market. WMT was down 11% heading into Thursday for the year, but was poised to open higher on the better than expected number. During the height of the recession WMT was the place to shop, it is now clear shoppers are moving on up again and leaving Wal-Mart behind. The stock is not a bad value play at current levels, but investors should be looking at more growth, high-end retailers.
  • Aeropostale (ARO): +20% vs. +9%. Stock has been on a tear recently and high a new intraday high on Wednesday before closing down 4%. A rally of over 180% since the low in December has the stock as one of the best performing retailers. The attractive price-point the company offers along with the fact parents are willing to curtail their spending for their teens has helped ARO continue with brisk sales. Buying the stock here is a reach due to the recent rally; a pullback must occur before I consider the stock a buy.
  • Buckle (BKE): +18.2% vs. +11.3%. The Buckle has been one of my favorite retailers for a long time because they have attractive price points along with a heavy reliance on denim. The numbers from denim giant True Religion (TRLG) Wednesday highlighted that sales of jeans continued right through a major recession. If you are able to get into BKE near $35 it would be a time to start buying.

Complete Story »]]> WMT BKE ARO Matthew D. McCall Obama’s First 100 Days: Sector ETF Winners and Losers http://seekingalpha.com/article/134207-obamas-first-100-days-sector-etf-winners-and-losers?source=feed 134207 Through the first 100 days of Barrack Obama’s administration the stock market experienced a new multi-year low as well as the best 6-week run for US markets in decades. So in the end, which sector ETFs have benefited from Obama in the White House and which are dreading the next three and a half years? For a measuring stick, the S&P 500 gained less than 3% in the first 100 days.

Sector ETF Winners

]]> Thu, 30 Apr 2009 05:28:23 -0400 Matthew D. McCall Through the first 100 days of Barrack Obama’s administration the stock market experienced a new multi-year low as well as the best 6-week run for US markets in decades. So in the end, which sector ETFs have benefited from Obama in the White House and which are dreading the next three and a half years? For a measuring stick, the S&P 500 gained less than 3% in the first 100 days.

Sector ETF Winners


Complete Story »]]> IAK XLU OIH IAI HHH XBI Matthew D. McCall Beneficiaries and Losers from the Swine Flu Scare http://seekingalpha.com/article/133537-beneficiaries-and-losers-from-the-swine-flu-scare?source=feed 133537 The scare of the swine flu has the market on edge to begin the week, with Mexico the number one concern. The news today is a déjà vu event that takes me back to the 2006 avian flu scare. Also think SARS. The big beneficiaries today may see their move short-lived and the losers could be presenting an opportunity for aggressive buyers. I am taking a good hard look at some of the losers today because as we all know - during times of fear investors overreact and that is when opportunities arise.

Beneficiaries

]]> Tue, 28 Apr 2009 05:12:20 -0400 Matthew D. McCall The scare of the swine flu has the market on edge to begin the week, with Mexico the number one concern. The news today is a déjà vu event that takes me back to the 2006 avian flu scare. Also think SARS. The big beneficiaries today may see their move short-lived and the losers could be presenting an opportunity for aggressive buyers. I am taking a good hard look at some of the losers today because as we all know - during times of fear investors overreact and that is when opportunities arise.

Beneficiaries


Complete Story »]]> GSK GILD BCRX NVAX SFD MMM EWW ASR PAC OMAB CCL RCL Matthew D. McCall The Andrew Jackson Portfolio - Nine Stocks for $20 http://seekingalpha.com/article/124771-the-andrew-jackson-portfolio-nine-stocks-for-20?source=feed 124771 Maybe it is time to turn to our 7th president for financial advice, Andrew Jackson. The late president appears on the $20 bill, which now goes much further in the stock market than it did five years ago.

Matt McCall, President of Penn Financial Group, has decided to build a new stock index based on how far $20 can go in the current market environment. This is how the “ANDREW JACKSON PORTFOLIO” also referred to as the “NEEDY NINE PORTFOLIO” or simply the “9” was created.

]]> Sun, 08 Mar 2009 13:15:57 -0400 Matthew D. McCall Maybe it is time to turn to our 7th president for financial advice, Andrew Jackson. The late president appears on the $20 bill, which now goes much further in the stock market than it did five years ago.

Matt McCall, President of Penn Financial Group, has decided to build a new stock index based on how far $20 can go in the current market environment. This is how the “ANDREW JACKSON PORTFOLIO” also referred to as the “NEEDY NINE PORTFOLIO” or simply the “9” was created.


Complete Story »]]> C GMGMQ.PK F GE BAC AIG ODP EK AMD Matthew D. McCall Why You Need to Be Careful With Leveraged ETFs http://seekingalpha.com/article/112167-why-you-need-to-be-careful-with-leveraged-etfs?source=feed 112167 With volatility levels skyrocketing to historical highs in 2008, the introduction of leveraged exchange-traded funds [ETF] was a godsend for traders. Or was it?

A leveraged ETF allows investors the ability to gain instant leverage against the underlying index/sector on either the long or short side. Until recently, all leveraged ETFs offered 2-to-1 leverage, but in the fourth quarter, Direxion launched ETFs that now offer an unthinkable 3-to-1 leverage. It is clear traders are willing to take on more risk because within a month of launching their first 8 ETFs, Direxion's vehicles are trading over 1 million shares per day.

]]> Wed, 24 Dec 2008 04:16:09 -0500 Matthew D. McCall With volatility levels skyrocketing to historical highs in 2008, the introduction of leveraged exchange-traded funds [ETF] was a godsend for traders. Or was it?

A leveraged ETF allows investors the ability to gain instant leverage against the underlying index/sector on either the long or short side. Until recently, all leveraged ETFs offered 2-to-1 leverage, but in the fourth quarter, Direxion launched ETFs that now offer an unthinkable 3-to-1 leverage. It is clear traders are willing to take on more risk because within a month of launching their first 8 ETFs, Direxion's vehicles are trading over 1 million shares per day.


Complete Story »]]> SH SDS XLF SKF SEF Matthew D. McCall Hedge Your Portfolio with Hurricane Stocks http://seekingalpha.com/article/93157-hedge-your-portfolio-with-hurricane-stocks?source=feed 93157 With Hurricane Gustav closing in on the Gulf of Mexico and expected to make landfall as a major hurricane, it is time to hedge your investment portfolio. After analyzing the 2008 hurricane season, I have generated a pack of hurricane stocks heading into Labor Day weekend.

Matrix Services (MTRX) - The abundance of oil & gas installations in the Gulf region is a major concern for the industry and investors. One of the companies that can help repair the damaged facilities after a natural disaster is MTRX. After Hurricane Katrina, MTRX was called upon by Chevron (CVX) to repair their terminal facility in Louisiana after it suffered heavy damage from the storm. The company calls many of the major energy companies their customers and will be one of the first called upon when disaster strikes. Technically if the stock can break above $25 it would signal a new breakout on the chart.

]]> Fri, 29 Aug 2008 01:13:01 -0400 Matthew D. McCall With Hurricane Gustav closing in on the Gulf of Mexico and expected to make landfall as a major hurricane, it is time to hedge your investment portfolio. After analyzing the 2008 hurricane season, I have generated a pack of hurricane stocks heading into Labor Day weekend.

Matrix Services (MTRX) - The abundance of oil & gas installations in the Gulf region is a major concern for the industry and investors. One of the companies that can help repair the damaged facilities after a natural disaster is MTRX. After Hurricane Katrina, MTRX was called upon by Chevron (CVX) to repair their terminal facility in Louisiana after it suffered heavy damage from the storm. The company calls many of the major energy companies their customers and will be one of the first called upon when disaster strikes. Technically if the stock can break above $25 it would signal a new breakout on the chart.


Complete Story »]]> MTRX SRCL DBE CLH Matthew D. McCall 10 Lessons Learned from Bear Stearns' Fall http://seekingalpha.com/article/69012-10-lessons-learned-from-bear-stearns-fall?source=feed 69012 Investors can use the fall of Bear Stearns (BSC) in a constructive manner by learning from the investment debacle.

1. Diversify

]]> Tue, 18 Mar 2008 06:44:37 -0400 Matthew D. McCall Investors can use the fall of Bear Stearns (BSC) in a constructive manner by learning from the investment debacle.

1. Diversify


Complete Story »]]> BSC JPM Matthew D. McCall Investable Water: The Good, the Bad and the Ugly http://seekingalpha.com/article/67031-investable-water-the-good-the-bad-and-the-ugly?source=feed 67031 One of my major investment themes for the next decade is the growing water shortage issue and need to upgrade the global water infrastructure. Many will not consider water a commodity, but I sure do and believe it can become as important as oil in the years ahead. Oil is important to everyday life, but without water humans cannot live very long.

The water investment theme is not new, but it still has yet to gain traction as a long-term investment option. Investors looking to take advantage of the billions that will be spent on water investing have several options. There are the water utilities in the US and abroad, the water infrastructure plays, and the secondary water stocks (example: valve makers, land owners). Through the first two months of 2008, the Dow Jones Water Utilities Index has had a rough year; down 10%. The PowerShares Global Water ETF (PIO) has not fared much better, off 8.5% through the end of February.

]]> Tue, 04 Mar 2008 06:21:26 -0500 Matthew D. McCall One of my major investment themes for the next decade is the growing water shortage issue and need to upgrade the global water infrastructure. Many will not consider water a commodity, but I sure do and believe it can become as important as oil in the years ahead. Oil is important to everyday life, but without water humans cannot live very long.

The water investment theme is not new, but it still has yet to gain traction as a long-term investment option. Investors looking to take advantage of the billions that will be spent on water investing have several options. There are the water utilities in the US and abroad, the water infrastructure plays, and the secondary water stocks (example: valve makers, land owners). Through the first two months of 2008, the Dow Jones Water Utilities Index has had a rough year; down 10%. The PowerShares Global Water ETF (PIO) has not fared much better, off 8.5% through the end of February.


Complete Story »]]> PIO FLS NWPX LNN SBS PICO NLC WTR INSU Matthew D. McCall Investing in Latin America http://seekingalpha.com/article/65523-investing-in-latin-america?source=feed 65523 Six weeks into 2008 and the US markets are down anywhere from 7% to 12%. The emerging markets as a whole have held up fairly well considering that they do carry more risk than the US indices. The iShares MSCI Emerging Markets ETF (EEM) is down 8% in 2008. During a rough patch it is often helpful to find the ETFs that show strong relative strength versus its peers.

When analyzing the emerging market ETFs, there is only one that boasts a positive return in 2008: the iShares Malaysia ETF (EWM) is up 4%. The next two are the iShares Mexico ETF (EWW), iShares Chile ETF (ECH), and iShares Brazil ETF (EWZ), with losses o f 1%, 2.3%, and 2.5%, respectively. The crowd favorite, iShares FTSE/Xinhua China 25 ETF (FXI), is down 12%, but well off earlier 2008 lows.

]]> Thu, 21 Feb 2008 09:09:09 -0500 Matthew D. McCall Six weeks into 2008 and the US markets are down anywhere from 7% to 12%. The emerging markets as a whole have held up fairly well considering that they do carry more risk than the US indices. The iShares MSCI Emerging Markets ETF (EEM) is down 8% in 2008. During a rough patch it is often helpful to find the ETFs that show strong relative strength versus its peers.

When analyzing the emerging market ETFs, there is only one that boasts a positive return in 2008: the iShares Malaysia ETF (EWM) is up 4%. The next two are the iShares Mexico ETF (EWW), iShares Chile ETF (ECH), and iShares Brazil ETF (EWZ), with losses o f 1%, 2.3%, and 2.5%, respectively. The crowd favorite, iShares FTSE/Xinhua China 25 ETF (FXI), is down 12%, but well off earlier 2008 lows.


Complete Story »]]> ILF ECH EWW EWZ Matthew D. McCall Which of the 6 Agriculture ETFs is Best? http://seekingalpha.com/article/64802-which-of-the-6-agriculture-etfs-is-best?source=feed 64802 The Wall Street Journal has a great article out (sub. req.) regarding the recent run up in the prices of agricultural commodities. It makes the point that as the US and other countries search for alternative fuel sources, one of the areas it turns to is the grains. Corn, soybeans, and wheat have all hit new historic highs recently and sugar is at a 52-week high.

In essence we are using our sources of food as a means to fuel our cars and generate energy. There is only so much land that can be used for farming and with the growing demand for food from emerging countries such as China, the supply will not be ample. Then there are wildcards such as weather that can greatly affect the supply. Recent issues in Australia and the Ukraine have hurt the supply of wheat, pushing the global stocks to multi-decade lows and sent the price soaring as demand continues to surge.

]]> Fri, 15 Feb 2008 06:55:39 -0500 Matthew D. McCall The Wall Street Journal has a great article out (sub. req.) regarding the recent run up in the prices of agricultural commodities. It makes the point that as the US and other countries search for alternative fuel sources, one of the areas it turns to is the grains. Corn, soybeans, and wheat have all hit new historic highs recently and sugar is at a 52-week high.

In essence we are using our sources of food as a means to fuel our cars and generate energy. There is only so much land that can be used for farming and with the growing demand for food from emerging countries such as China, the supply will not be ample. Then there are wildcards such as weather that can greatly affect the supply. Recent issues in Australia and the Ukraine have hurt the supply of wheat, pushing the global stocks to multi-decade lows and sent the price soaring as demand continues to surge.


Complete Story »]]> DBA RJA JJA JJG GRU FUE Matthew D. McCall 6 Stock Ideas for Long-Term Value Investors http://seekingalpha.com/article/61458-6-stock-ideas-for-long-term-value-investors?source=feed 61458 At one point yesterday the S&P 500 was down 13.5% for the year and nearly 20% off its all-time high set on 10/11/07. Did the index deserve the valuation it had on 10/11? Probably not. Does it deserve the valuation today? No!

When the market offers attractive valuations it is time for long-term investors to begin making a "Value List" of stocks to buy. The reason I always emphasize long-term has to do with the belief I have that most individual investors need to invest with an outlook that goes out several years. Buying in the coming days/weeks could prove to be very lucrative 12-24 months from now, but in the near-term it may be a little dicey.

]]> Thu, 24 Jan 2008 13:18:02 -0500 Matthew D. McCall At one point yesterday the S&P 500 was down 13.5% for the year and nearly 20% off its all-time high set on 10/11/07. Did the index deserve the valuation it had on 10/11? Probably not. Does it deserve the valuation today? No!

When the market offers attractive valuations it is time for long-term investors to begin making a "Value List" of stocks to buy. The reason I always emphasize long-term has to do with the belief I have that most individual investors need to invest with an outlook that goes out several years. Buying in the coming days/weeks could prove to be very lucrative 12-24 months from now, but in the near-term it may be a little dicey.


Complete Story »]]> IVZ WYNN CVA VE BHP CCJ Matthew D. McCall New Coal ETF: The Timing Couldn’t Be Better http://seekingalpha.com/article/60258-new-coal-etf-the-timing-couldnt-be-better?source=feed 60258 With the price of crude oil touching $100 to kick of 2008, it has sparked further debate about energy alternatives. The consensus naturally thinks about the “green” alternatives such as solar, wind, and fuel cells. Further down the line is ethanol and nuclear power. An energy source rarely mentioned is coal.

Even though coal is cheaper than oil on a relative basis, the green house gases it releases make it one of the most damaging to the ozone. As many here in the US and other developed countries push towards dependence from oil, a key requirement is a clean-burning fuel source. In a perfect world, we could use the sun and the wind to create enough energy for the entire world. Unfortunately that is not the case and it will not be for years to come.

]]> Tue, 15 Jan 2008 10:53:01 -0500 Matthew D. McCall With the price of crude oil touching $100 to kick of 2008, it has sparked further debate about energy alternatives. The consensus naturally thinks about the “green” alternatives such as solar, wind, and fuel cells. Further down the line is ethanol and nuclear power. An energy source rarely mentioned is coal.

Even though coal is cheaper than oil on a relative basis, the green house gases it releases make it one of the most damaging to the ozone. As many here in the US and other developed countries push towards dependence from oil, a key requirement is a clean-burning fuel source. In a perfect world, we could use the sun and the wind to create enough energy for the entire world. Unfortunately that is not the case and it will not be for years to come.


Complete Story »]]> KOL Matthew D. McCall DECK the Halls with Uggs http://seekingalpha.com/article/57913-deck-the-halls-with-uggs?source=feed 57913 Sheepskin boots for surfers in California become one of the hottest fads in 2003 when Oprah put them on her "best of" list. As she has done so many times in the past, Oprah brought national attention to the boot maker, known as Uggs. Soon to follow were the celebrity sightings and before you knew it, the 4-lettter word was a household name for teenagers, kids, mothers, and the business women that dressed trendy on the weekends.

Just as so many fads disappear after a few years, it was obvious Uggs could not withstand the test of time. Or could it?

]]> Thu, 20 Dec 2007 04:21:28 -0500 Matthew D. McCall Sheepskin boots for surfers in California become one of the hottest fads in 2003 when Oprah put them on her "best of" list. As she has done so many times in the past, Oprah brought national attention to the boot maker, known as Uggs. Soon to follow were the celebrity sightings and before you knew it, the 4-lettter word was a household name for teenagers, kids, mothers, and the business women that dressed trendy on the weekends.

Just as so many fads disappear after a few years, it was obvious Uggs could not withstand the test of time. Or could it?


Complete Story »]]> DECK Matthew D. McCall