Posted May 18, 2012 at 1:03 am
by Charles Sizemore
Suds stocks fall into one of two categories:
Megabrews with world-dominating brands — companies like Anheuser-Busch InBev (NYSE:BUD), Molson Coors Brewing Company (NYSE:TAP) and SABMiller (PINK:SBMRY).
Smaller companies that produce mostly craft beers, such as the Boston Beer Company (NYSE:SAM), the maker of the popular Sam Adams, and Craft Brew Alliance (NASDAQ:BREW), which makes smaller brands Kona and Red Hook.
Either option can make a fine investment choice, but you should understand that the rationales for buying are very different.
BUD, TAP and SBMRY essential operate a megabrand beer cartel. Their businesses are safe and relatively stable, though not particularly exciting.
They also tend to be fairly recession-resistant. If anything, consumers often trade down from more expensive craft beers to cheaper mass-market beers when times are hard. For investors just looking for consistent returns, this kind of consistency is attractive.
SAM and BREW, being smaller and nimbler, are better growth stories. SAM in particular has enjoyed fantastic earnings growth in recent years, and its niche placement as a seller of premium beers allows it to generate higher returns on equity.
[ Details / Source: Above is our hand-picked KEY excerpt(s) from this full article: "Beer Stocks: Crack One Open" ]
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Posted May 17, 2012 at 3:50 am
from the M4 Research team
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Posted May 14, 2012 at 3:50 am
by Robert Peck
As an ex-Wall Street Institutional Investor ranked analyst, I’ve written on many stocks and IPOs before, including: LNKD IPO (here), BankRate IPO (here), and even a piece on Facebook back in 2007 where I argued Yahoo! needed to buy Facebook (here) for $6-7b.
Importantly on Facebook, I think when one looks at the company’s potential, it’s paramount that one thinks bigger picture and longer term – this post is predicated on this.
In the essence of being succinct, below I point out my Top 5 reasons I’m bullish on Facebook long term, as well as my Top 5 concerns. There are an endless number of items for each list, but I think these items sum up the major points.
1 – Facebook is a Force Majeure @ 900m Users – Facebook dominates one of the largest forces on the Internet, Social. It clearly embodies everything we do that’s social from posting pictures, to sharing our real time thoughts, to connecting with old friends, to making new friends.
It reflects how we behave offline and exemplifies how social behaviors pervade much of what we do on a daily basis. Facebook is the king of one of human’s most basic communication needs – sharing. Further, the company has managed to expand outside its own website or app.
3 – Mobile Monetization is Just Starting – Facebook grew revenues ~45% in the most recent quarter – that’s impressive. However, what is most astounding, is that >50% of its monthly users visit the platform via a mobile device and these users haven’t been monetized yet. Facebook is just starting to monetize >50% of its user base! Imagine the lift in the financials from not only growing the users, but by merely monetizing over one-half of the current un-monetized base.
[ Details / Source: Above is our hand-picked KEY excerpt(s) from this full article: "The Facebook ($FB) IPO – the Enormous Upside Potential" ]
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Posted May 4, 2012 at 1:36 am
by Jack Hough
Facebook’s initial public offering is slated for May 18, the Wall Street Journal reported Thursday. Between now and then, management will go on its “roadshow” to explain its strategy to potential investors, and excitement over the deal is likely to grow.
The IPO details suggest a valuation of $77 billion to $96 billion, and shares could easily open much higher than the offering price. So Facebook may sell for 10 times revenues or more by the time ordinary investors buy in, more than five times as expensive as the average stock.
Then again, the statistics say not to buy scratch-off lottery tickets, but states will nonetheless sell more than $30 billion worth of them this year.
For Facebook fans who care more about the “how” than the “why” or “why not”, here are some guidelines:
[ Details / Source: Above is our hand-picked KEY excerpt(s) from this full article: "The Right Way to Buy Facebook" ]
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Posted May 2, 2012 at 3:55 am
by Matt Nesto
Author and financier Stephen Weiss has published his second book, The Big Win, where the singular focus is the investing habits of so-called whales—or the super-rich. The last time he set pen to paper, in The Billion Dollar Mistake, Weiss probed the biggest blunders made by some of the best-known investors in the world and explored how we could learn from them.
This time around Weiss investigates the other side of the whale trade, as he profiles the traits and techniques that have come to define the careers of 10 super-successful investors.
“That’s the most important thing,” says Weiss, in the attached video. “You need a discipline and a strategy.”
He describes all 10 of his subjects as coming from “pretty humble roots,” which only makes their achievements that much more inspirational.
Lee Ainslie, of Maverick Capital, is among those profiled. Ainslie’s tremendously in-depth analysis, Weiss says, revealed very early that a huge opportunity existed in what we would all later come to know as outsourcing.
Weiss also commits at least two chapters to investors he considers to be pioneers: Chuck Royce, in the area of small cap value investing, and Marty Whitman, as a pioneer of stress investing.
[ Details / Source: Above is our hand-picked KEY excerpt(s) from this full article: "To Be a Whale, You Must Invest Like One: Stephen Weiss" ]
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Posted May 2, 2012 at 3:01 am
by Micheal Hanson
The current market cycle is a wondrous example: As most folks capitulated and panicked in late 2008, markets recovered in V-shape fashion, with the smaller, deep value, low quality stocks (that got hit hardest) bouncing the most. As this bull matures, the switch seems to be occurring to bigger, high quality, growthy names.
Amid it all, we’ve had US debt fears, PIIGS fears, double-dip fears, housing fears, employment fears—you name it. And it’s not to say these don’t matter, but in the end, there are larger forces at work: The global economy recovering and growing in a world of greater free trade, rising production and consumption in the now collectively large Emerging Markets. Those are the big forces—the ones that matter most!
I’ve read mountains (almost literally) of highly rigorous, empirical and complex analysis on every conceivable topic about the markets in the last few years. And few or none effectively identified these big forces—the ones that matter most. They’re all caught up in the ultra-short term or far too small to matter.
Simply, more information and complexity are not key drivers of returns and never have been. And won’t ever be. More information and data is great! Yet, if you can’t use that information to determine the big important trends, well, you can have 5 analysts or 50, 10 million bucks worth of data or 10 bucks, and it’s not going to change your chances for outperformance.
What drives market outperformance? Knowing something others don’t and acting appropriately on that conviction. This is desperately difficult to do in practice, and I continue to be very proud of working for a firm that aims consistently to do this over time. Simplicity is the best—and, at this point, maybe the only—consistent way to achieve such results.
So if you can’t say what your current investing strategy is in one sentence, you may be cooked. In a world where very smart people foolishly create castles out of sand with their ever more complex strategies, you can think simple, big forces and have a tremendous competitive advantage.
[ Details / Source: Above is our hand-picked KEY excerpt(s) from this full article: "Simplicity Is the Next Great Investing Advantage" ]
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Posted April 27, 2012 at 3:02 am
by Matthew J. Belvedere
Lots of people are familiar with the NFL draft, where professional football teams swap, deal and finally pick the most promising collegiate players looking to join the league. In fact, the latest episode starts tonight.
What if you could do that for stocks?
CNBC’s “Street Signs” will be trying to do just that, beginning today. It will feature a “stock draft” where seven well-known stock pickers will play the part of NFL owners, picking and choosing among a pool of 21 popular stocks (i.e. the promising players).
For investors, what may be more telling is which stocks don’t get picked. The “drafted” picks will be tracked and monitored up to the next Super Bowl (just like players for the upcoming season). Performance will be measured on a percentage basis. So the traders may elect to pick a beaten up stock (like some techs and retailers of late) in hopes of a good bounce instead of one that is currently in good standing.
The details [continue]…
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Posted April 26, 2012 at 3:50 am
by Deron Desautels
Dear Profit Seeking Friend,
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Posted April 24, 2012 at 2:07 am
Chinese e-commerce, offline retail and social media companies are generating shockingly steep growth curves by catering to the continent’s burgeoning middle class.
via Fortune
With the world’s largest population and its rapid industrialization, China offers a wealth of opportunities for companies catering to its rising middle class. For example, only one-third of China’s population is online, giving e-commerce and other web 2.0 companies plenty of room to grow.
The road is a bit more challenging for private oil, gas, telecom and financial services firms, since those industries are largely state run. But given China’s overall explosive economic growth, there will probably be select opportunities in those sectors as well.
It’s been a rough time for some Chinese companies, which have come under fire for questionable accounting practices. While the problems were largely confined to companies that went public through so-called reverse mergers, the fallout was felt broadly by most Chinese companies, with marked stock declines.
Read on for seven companies already tapping China’s growing marketplace that have demographics in their favor and are beating out their competitors.
[ Details / Source: To see a slideshow of the companies, start here... ]
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Posted April 24, 2012 at 12:31 am
by Darrin Donnelly
People enter the trading world eager to multiply the money they’ve earned from their other career. However, the crucial skill (productivity) that helped them earn all that money outside of trading doesn’t translate to success as a trader.
The reasons are obvious. You can’t force a winning trade the way you can force yourself to finish a task. You can’t create more winning trades the way you create more widgets for your company. You can’t fix or improve a trade the way you fix or improve the product or person you were hired to fix.
New traders rarely adapt well to this fundamental difference. The most common response to a dwindling trading account is to change the trading system.
It’s easy to see why this is such a common response. In other careers, where all success hinges on production, if something isn’t working, we continuously make changes until the final product is working the way we want it to.
But in trading, constantly tweaking our strategies is a recipe for disaster because we’re not building a final product. Put another way, we can’t force the market to behave exactly the way we want it to.
Successful trading is about reading and reacting, not changing and creating. It’s about coming to terms with the fact that we have very little control – actually, none whatsoever – over what opportunities the market will give us on any given day.
[ Details / Source: Above is our hand-picked KEY excerpt(s) from this full article: "Why Most People Fail As Traders" ]
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