Lumber Liquidators: Sitting In The Middle Of The Rebound [View article]
Money,
All good points. I find that regurgitation is a helpful way of looking at the numbers :). Seriously, you are correct that the housing market could be a bubble ready to go if indeed the economy fails to rebound and we head into a double-dip recession. Historically, I believe we are way behound in housing construction so I do think that this sector could persist.
I generally am not a Contrarian. I tend to go with the momentum stocks that push higher with steady earnings and revenue growth and a good underlying story. The stock, with its rich valuation especially, could fall hard with any significant bad news. On the other hand I wouldn't bet the farm against them.
Simply put, stocks that are doing well both technically and fundamentally tend to stay doing well. Changes in momentum require a change in events.
Lumber Liquidators: Sitting In The Middle Of The Rebound [View article]
Mercury,
I wouldn't argue one bit about the valuation issue especially with the PEG north of 2.0. However, in the latest earnings announcement they exceeded expectations on both earnings and revenue and with their relatively small size, might be worth the price.
Is Ross Stores 'Double Dip' Resistant? [View article]
I have found that often the basic information that is readily available when put together in one place is adequate for me to make initial investment decisions.
First Apple, Then Amazon, Is It Google's Time To Shine? [View article]
I doubt that GOOG will be the next MySpace but if you read what I wrote, I did think the stock split was a bit peculiar, and what has been the point adding to the outstanding shares instead of buying shares back anyhow? You are right about some of the shenanigans but Google seems to be firmly entrenched in our internet experience. I think it will be a survivor and prosper in spite of all the things you have noted.
First Apple, Then Amazon, Is It Google's Time To Shine? [View article]
Thanks for your comment. Google organizes information. Amazon sells information and physical products. Apple sells the tools to access these services. All three are related. We can artificially assign value to stocks based on earnings and earnings growth. It doesn't really matter to me how each venture makes sales or creates profits. Valuation isn't about what a company does it is an expression of determining the results of their efforts.
Centene: At The Center Of The Managed Care Sweet Spot [View article]
Great article on Centene (CNC). I also have been a fan of this company and owned some shares. I sold on the bad Ohio news.
Generally I look for a catalyst for a stock to rise. In other words keep Centene (CNC) on your horizon, monitor it, watch the stock price, pay attention to the news and if something arises, then buy shares.
It doesn't often work being smarter than the market. I have tried that more than once. But it does help to admit mistakes, search for opportunities, and be brave enough to take a chance on what appears to be an excellent opportunity.
Re-Reading "A Random Walk Down Wall Street" By Burton G. Malkiel (27 April 2012) [View instapost]
When selecting a stock I perhaps think of selecting a car for purchase. Dividend growth is one factor, maybe like the presence of a satellite radio receiver, or the displacement of the engine or the mileage or resale value.
I suppose being an eclectic investor would be best. Using each of these attributes to help define a good investment. Value is fine, but why not have value with momentum. Dividend yield works well, but why not have a company that also grows its bottom line. Stock price performance is terrific but why not also look for growth in free cash flow and a low PEG.
So many things go into defining what might be a good purchase. Of course, there is that moment of purchase when all reason goes out the window and you just have to have those shares.
Again another terrific article! I do not have your patience. I have set up an IRA for my wife which is truly Buy and Hold. In that I purchase a single stock each year with the allowed contribution and let it ride. She has done quite well and it gives me a challenge to identify the single stock to purchase. (fyi I purchased IBM this year for the 2012 contribution). Not all of them have worked out, but it has overall been a good strategy.
I have become more of a surfer, looking for longer-term momentum waves that I can ride until such time as they threaten to 'break on the shore'. (You can tell I have never surfed in my life but I do switch from momentum stock to momentum stock!) This has worked quite well as long as the underlying stocks perform. I have ridden Intuitive Surgery (ISRG) for a couple of years now to a nice profit. I shall be 'buy and hold' on this one until it doesn't make sense anymore!
Thank you again for your contribution to all of our understanding of stocks and investing!
Thanks for the remarks. I am not a Merck (MRK) investor right now but it is a solid stock that was a favorite of even my father 40 years ago! They produce great products and loads of cash so the dividend appears well covered. However, I like a dash of growth in my investments and I am a bit concerned. Waiting for Friday!
Warren Buffett's Cancer And What It Means For Investors [View article]
Brad,
Thank you for your kind comments. I wish that prostate cancer were less frequent. It is a difficult problem for so many of my friends and acquaintances and deciding what to do is also a challenge.
In general, I have come to the view that more aggressive treatment is reasonable (?) for younger patients, that is in their early 60's, 50's or younger. This often means radical prostatectomy with all that entails. Recent evidence suggests that the robotic approach may have less side effects. However, nothing is guaranteed.
The very elderly (80's or older) may often defer treatment. They will likely die from some other cause. Those in their 70's may well opt for radiation therapy. Even some of those opt for surgery.
There is no right answer on this question. I am not worried about Buffett's early demise. He is 81 and will likely succumb from something else rather than his prostate cancer.
I recently read of focused ultrasound as a possible treatment that is being explored in the UK. Clearly there will be better options as time goes on. I am glad that at least there is hope for treatment and better results with time. Prostate Cancer especially Stage 1 is rarely a death sentence.
Good luck with your friends and thanks for your kind words.
Ditto deedubs. I would add that one thing even more important that valuation is the actual stock itself. Too often I have avoided buying stocks based on valuation questions and missed the entire stock price move. Thanks for commenting.
Lumber Liquidators: Sitting In The Middle Of The Rebound [View article]
All good points. I find that regurgitation is a helpful way of looking at the numbers :). Seriously, you are correct that the housing market could be a bubble ready to go if indeed the economy fails to rebound and we head into a double-dip recession. Historically, I believe we are way behound in housing construction so I do think that this sector could persist.
I generally am not a Contrarian. I tend to go with the momentum stocks that push higher with steady earnings and revenue growth and a good underlying story. The stock, with its rich valuation especially, could fall hard with any significant bad news. On the other hand I wouldn't bet the farm against them.
Simply put, stocks that are doing well both technically and fundamentally tend to stay doing well. Changes in momentum require a change in events.
Bob
Lumber Liquidators: Sitting In The Middle Of The Rebound [View article]
Bob
Lumber Liquidators: Sitting In The Middle Of The Rebound [View article]
I wouldn't argue one bit about the valuation issue especially with the PEG north of 2.0. However, in the latest earnings announcement they exceeded expectations on both earnings and revenue and with their relatively small size, might be worth the price.
Thanks for commenting!
Bob
First Apple, Then Amazon, Is It Google's Time To Shine? [View article]
Is Ross Stores 'Double Dip' Resistant? [View article]
First Apple, Then Amazon, Is It Google's Time To Shine? [View article]
First Apple, Then Amazon, Is It Google's Time To Shine? [View article]
First Apple, Then Amazon, Is It Google's Time To Shine? [View article]
Centene: At The Center Of The Managed Care Sweet Spot [View article]
Generally I look for a catalyst for a stock to rise. In other words keep Centene (CNC) on your horizon, monitor it, watch the stock price, pay attention to the news and if something arises, then buy shares.
It doesn't often work being smarter than the market. I have tried that more than once. But it does help to admit mistakes, search for opportunities, and be brave enough to take a chance on what appears to be an excellent opportunity.
Keep on writing!
Re-Reading "A Random Walk Down Wall Street" By Burton G. Malkiel (27 April 2012) [View instapost]
I suppose being an eclectic investor would be best. Using each of these attributes to help define a good investment. Value is fine, but why not have value with momentum. Dividend yield works well, but why not have a company that also grows its bottom line. Stock price performance is terrific but why not also look for growth in free cash flow and a low PEG.
So many things go into defining what might be a good purchase. Of course, there is that moment of purchase when all reason goes out the window and you just have to have those shares.
Thanks for this great article!
Holding Stocks Long Term [View article]
Holding Stocks Long Term [View article]
Again another terrific article! I do not have your patience. I have set up an IRA for my wife which is truly Buy and Hold. In that I purchase a single stock each year with the allowed contribution and let it ride. She has done quite well and it gives me a challenge to identify the single stock to purchase. (fyi I purchased IBM this year for the 2012 contribution). Not all of them have worked out, but it has overall been a good strategy.
I have become more of a surfer, looking for longer-term momentum waves that I can ride until such time as they threaten to 'break on the shore'. (You can tell I have never surfed in my life but I do switch from momentum stock to momentum stock!) This has worked quite well as long as the underlying stocks perform. I have ridden Intuitive Surgery (ISRG) for a couple of years now to a nice profit. I shall be 'buy and hold' on this one until it doesn't make sense anymore!
Thank you again for your contribution to all of our understanding of stocks and investing!
Is It Time To Buy Merck? [View article]
Warren Buffett's Cancer And What It Means For Investors [View article]
Thank you for your kind comments. I wish that prostate cancer were less frequent. It is a difficult problem for so many of my friends and acquaintances and deciding what to do is also a challenge.
In general, I have come to the view that more aggressive treatment is reasonable (?) for younger patients, that is in their early 60's, 50's or younger. This often means radical prostatectomy with all that entails. Recent evidence suggests that the robotic approach may have less side effects. However, nothing is guaranteed.
The very elderly (80's or older) may often defer treatment. They will likely die from some other cause. Those in their 70's may well opt for radiation therapy. Even some of those opt for surgery.
There is no right answer on this question. I am not worried about Buffett's early demise. He is 81 and will likely succumb from something else rather than his prostate cancer.
I recently read of focused ultrasound as a possible treatment that is being explored in the UK. Clearly there will be better options as time goes on. I am glad that at least there is hope for treatment and better results with time. Prostate Cancer especially Stage 1 is rarely a death sentence.
Good luck with your friends and thanks for your kind words.
Why Genuine Parts Works [View article]