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  • Perfect Opportunity For Investors To Liquidate Some Positions?

    What the heck is with this stock market? The ability of the stock market to hold and avert a major correction over the past two weeks and then follow this with an upward move on the charts is a surprise-at least in my view it is, as it clearly shows the bullish bias controlling this stock market.

    The NASDAQ and Russell 2000 are at new recent highs as the desire for growth by investors continues, which has largely been the story this year.

    The S&P 500 is within striking range of its September record high.

    The focus on the debt ceiling is important but also way overdone, in my opinion, given that we are in the midst of the third-quarter earnings season and, well, it has been subpar early on.

    Yes, it's still early in the earnings season, but I expect more subpar results. Of course, what I expect doesn't matter-momentum and speculation are what drive this stock market.

    So far, about six percent of S&P 500 companies have reported, and a dismal 55% of these companies have beaten estimates. That's just not good. The results are also well below the historical average at just over 60%, and to make matters worse, the results were compared to estimates that were already lowered by Wall Street. Revenue growth is also lackluster, as I expected, which is not what we should be seeing with an upward-trending stock market.

    Read more : Perfect Opportunity for Investors to Liquidate Some Positions?

    Oct 17 8:24 AM | Link | Comment!
  • Why This Mature, Reliable Company Is Still A Favorite Of Mine

    In an environment that's very difficult to generate real economic growth, this large corporation is predicting solid financial growth for the next several years.

    NIKE, Inc. (NYSE:NKE) continues to be an excellent wealth creator. It's a mature, global, and very much ubiquitous brand; plus, the company keeps generating solid numbers to the delight of shareholders.

    In a recent press release, NIKE announced that it expects to deliver $30.0 billion in revenues in fiscal 2015 and is targeting $36.0 billion in total sales by fiscal 2017.

    The company's long-term financial plan is intact. Management wants high single-digit annual revenue growth with earnings-per-share (NYSEARCA:EPS) growth in the mid-teens. That's a solid expectation for any business, especially one worth over $65.0 billion.

    NIKE's most recent quarter was excellent with strong EPS growth, and the company boosted its cash position substantially. (See "Proven Wealth Creator Delivers Again; Earnings, Sales Growth Surge.")

    I continue to make the case that long-term investors can consider this company. Its current dividend yield is approximately 1.2%, but management should soon make an increase. The company can certainly afford it.

    NIKE has been an exceptional performer on the stock market over the last few years. The position dropped to $20.00 a share during the March low of 2009. Now, it's over $70.00 a share, which is an amazing performance for any mature company.

    Like most brand-name corporations, the stock has experienced periods of nonperformance. This time last year, NIKE's share took a prolonged break.

    But with such a strong outlook from the company, investors are buying this stock at its high because there are very few businesses out there with these kinds of financial expectations.

    Management expects the company's growth to come from sales of apparel and women's product lines. Sales in China are expected to return to previous levels, with North America and Western Europe providing high single-digit growth rates over the next several years.

    Read More : Why This Mature, Reliable Company Is Still a Favorite of Mine

    Oct 14 8:05 AM | Link | Comment!
  • Company Booming From Glut In Oil, Gas Production

    When we first took a look at Chart Industries, Inc. (NASDAQ:GTLS) in April, the stock was trading around $80.00 a share. The natural gas build-out is a very worthy investment theme going forward and equity market portfolios should have some exposure.

    The oil and natural gas industry is a bright spot in today's economy, and there is genuine economic growth being generated from this sector. With North America gushing with natural gas, the infrastructure necessary to process, transport, and store it is vast and represents a good investment opportunity.

    Chart Industries is a company that manufactures specialized storage solutions for liquefied natural gas (NYSEMKT:LNG), petrochemical and natural gas processing, medical use gases, and related storage equipment. It's a solid company with a good track record of managing its business.

    Now that there is a push to move the glut of natural gas, there is growing demand for LNG processing plants. Chart Industries was recently awarded a contract to build a C100N liquefaction plant for Stabilis FHR Oilfield LNG LLC. The customer plans to use the processing plant to produce 100,000 gallons of LNG per day in the Eagle Ford Shale region in Texas.

    Chart Industries said that Stabilis will likely order four additional LNG liquefaction plants, which can produce either 100,000 gallons or 250,000 gallons per day. Chart Industries has already reserved manufacturing time slots for these additional processing plants.

    Back in July, the company won an additional order from Kunlun Energy Investment, which is a wholly owned subsidiary of PetroChina Company Limited's (NYSE:PTR) Kunlun Energy Limited for self-contained LNG station modules. The latest order was over $50.0 million, and that is on top of a $45.0-million order from the same customer in April. This is the third order over the last few quarters from PetroChina; the most recent was not included in the company's 2013 second-quarter order backlog.

    Read More : Company Booming from Glut in Oil, Gas Production

    Oct 11 6:37 AM | Link | Comment!
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