Stock Market News & Stocks to Watch from StraightStocks » Stock Price

Haynesville Natural Gas Plays Refuse to Sell off – Goodrich Petroleum (GDP), Petrohawk Energy (HK), GMX Resources (GMXR), Comstock Resources (CRK)

Trader Mark — Wed, 09 Jul 2008 18:12:00 +0000

We've discussed recently the hot new place for natural gas is the potentially enormous Haynesville Shale [Jul 2: Petrohawk Energy and Chesapeake Energy Flying on Haynesville Shale News] (EDIT: Let me add 2 additional names) I've been hoping one of the...

Angela Braly – Wellpoint, Inc. (WLP)

QualityStocks — Tue, 08 Jul 2008 18:39:50 +0000

Known to skip monthly management team meetings for her daughterâ€™s birthday and to reschedule a board meeting so she could attend her daughterâ€™s 4th grade play, Angela Braly at 46 is one of the youngest women CEOs, as well as the only one running a Fortune 50 company. With three children, Angela managed the family [...]

Business Nature Makes Digital Ally Inc. (DGLY) Profitable

QualityStocks — Tue, 01 Jul 2008 12:46:44 +0000

Digital Ally Inc makes electronic surveillance products. It uses cutting-edge technologies for audio and video recording inside vehicles, and through flashlights used by security personnel. The company also offers specialized software to manage recordings made by its products. Security and the collection of evidence also have multiple commercial applications. Warehouses and offices can be protected [...]

Quicksilver Gas Services LP (KGS) Stock Offers Benefits Free of Industry Risks

QualityStocks — Mon, 30 Jun 2008 12:36:38 +0000

The benefits are obvious, but some risks are not widely appreciated. The Utilities Sector shows a disturbing trend for the 12 months ended May 2008. The Gas Utilities Industry has fared a little better than its peers during this period. The crude oil outlook is unclear. That is why opinion is divided on [...]

Profitable Growth & Business Outlook for CAI International Inc. (CAP)

QualityStocks — Fri, 27 Jun 2008 12:21:54 +0000

Have you tried adventure investing? You can troll depressed sectors and industries in order to find top stocks. It is as exciting as river-rafting or trekking in Mexico. The cash inflow makes for a welcome bonus. Take the Rental & Leasing Industry, for instance. It is common knowledge that this part of the economy is [...]

OTCstockalert.com Features Superlattice Power Inc. (SLAT.OB)

QualityStocks — Mon, 16 Jun 2008 23:30:25 +0000

Superlattice Power Incorporated has been highlighted by otcstockalert.com as “an emerging leader in the development and marketing of the next generation lithium-powered batteries worldwide.” As gas prices continue to rise, the desire to use less oil-based transportation is really driving the hybrid and electric car markets. These factors are also causing the prices [...]

Tough Stock Market Times Squeeze Every Innovational Drop Out of Business

QualityStocks — Mon, 16 Jun 2008 12:30:04 +0000

Innovation does not relate to patented products, or to branded services alone. Indeed, some of the most productive creativity within an organization resides in its processes, away from the public eye. Even senior executives may be guilty of neglecting significant symbols of innovation during times of rapid business expansion. Acute adversity brings creativity to the [...]

Almost Family Inc. (AFAM) Stock Price Climbs on Amazing Business Results

QualityStocks — Mon, 16 Jun 2008 12:26:06 +0000

This small-capital member of the Healthcare Facilities industry from Louisville, KY has got its business model just right. Profits during the Most Recent Quarter, one of the most difficult periods in recent times for most stocks, have grown by 47%. Interestingly, gross revenues have grown by just about 20% during this period. The implied Gross [...]

GTX Corp. (GTXO.OB) Offers Patented Interchangeable Global Positioning System (GPS) Tracking and Location-Transmitting Technology Platforms

QualityStocks — Fri, 13 Jun 2008 12:06:27 +0000

GTX Corp. (GTXO.OB), a leader in Global Positioning System (GPS) tracking and location-transmitting technology platforms, offers patented, interchangeable GPS satellite tracking and location reporting technology. This hardware can be easily embedded into footwear, clothes, backpacks and life preservers. Since 2002, GTX Corp. has been developing, patenting and integrating miniaturized GPS tracking and cellular location-transmitting technologies [...]

Barclays – strange, stranger and truly opaque

John Hempton — Thu, 12 Jun 2008 08:56:00 +0000

Barclays is the financial institution in the world that most scares me. Indeed it petrifies me. It is huge (currently the second biggest institution in the world and substantially larger than Citigroup). It is highly levered. And it is in all the p...

A writeup on Silverlake Axis (on NextInsight)

DanielXX — Thu, 12 Jun 2008 00:48:00 +0000

No, this is not a hotstocknot article. I wrote this article for NextInsight about one of the lesser-known stocks in my virtual portfolio, and thought I'd reproduce it here in my blog. As always, grab the facts, but be sceptical of my opinions and think...

Shares of MedeFile International, Inc. (MDFI.OB) Soar 163 Percent in Two Weeks

QualityStocks — Wed, 11 Jun 2008 11:46:49 +0000

MedeFile International, Inc. (MDFI.OB), a company specializing in electronic medical records management solutions, recently announced that its users can access their personal medical records using the Apple iPhone. As MedeFile continues to enhance its product and service offerings to users, the company’s stock price has climbed from $0.095 to $0.25, an increase of 163 percent, [...]

Why Client Set-Back Will Not Detract from Multi-Fineline Electronix Inc. (MFLX) Inherent Stock Value

QualityStocks — Fri, 06 Jun 2008 12:19:28 +0000

The largest and historically most consistent corporations can commit blunders. That is why no small capital entity should develop excessive dependence on any of its larger peers. This seems to be the primary lesson learnt by a small capital member of the Electronic Instrumentation & Controls Industry from Anaheim, CA. The company is a pioneer of [...]

Lehman Brothers Holdings Inc (LEH) Looks to Raise Capital

QualityStocks — Fri, 06 Jun 2008 00:53:28 +0000

Lehman Brothers (LEH:NYSE) is one of the nation’s major investment banks. Lehman was founded in 1850 and has a rich history on Wall Street. However, Lehman’s stock price has been taking a beating this year as they have been painted with the same brush as Bear Stearns. There are rumors floating around Wall Street nearly [...]

PeakStocks.com Featured Company: AAR Corp. (AIR)

QualityStocks — Wed, 04 Jun 2008 15:38:46 +0000

AAR Corp (AIR:NYSE) is one of the world’s leading aviation support companies. Through AAR’s diverse family of businesses, they provide a broad range of products and services to commercial airlines, defense organizations and OEMs. The company’s list of clients include large commercial airlines, regional airlines, cargo carriers, various governments around the globe, and major manufacturers [...]

Visa (V) “Trading Transparency”

Bob Freedland — Fri, 30 May 2008 12:06:55 +0000

Hello Friends! Thanks so much for stopping by and visiting my blog Stock Picks Bob’s Advice! As always, please remember that I am an amateur investor, so please remember to consult with your professional investment advisers prior to making any investment decisions based on information on this website. Earlier today I sold a [...]

NotableCalls – China Digital TV: Buy the Dip says Morgan Stanley

Stockmasters Staff — Tue, 20 May 2008 16:13:37 +0000

Passing this along Masters from NotableCalls: Morgan Stanley reiterates overweight for China Digital TV (NYSE:STV) noting that the stock stock price dropped 10%+ post its 1Q08 result – a market overreaction in firm's view.

Whole Foods shares will continue to fall

Ben Stevens — Wed, 14 May 2008 19:01:04 +0000

Whole Foods Market, Inc. (NASDAQ:WFMI) shares are down 12% today and hit a new 52-week low of $28.96. It's been a rough go for WFMI this past year, shares are down 25% and YOY sales at their stores fell to 6.7% from 12% two years ago. Add to it the increasing cost of groceries and it equals a lower stock price for Whole Foods.

CTSH: Still Concerned About Cognizant’s Return Prospects

William Trent — Wed, 07 May 2008 14:36:00 +0000

I began expressing concerns about Cognizant Technology Solutions (CTSH) a year ago. Even when earnings were stronger than expected in February, I stuck to my guns, saying “Cognizant executed so well on so many different metrics this quarter that anything less than perfection in the future is likely to disappoint.” It didn’t take long. The company’s [...]

More Theory Time

Roger Nusbaum — Tue, 06 May 2008 12:24:00 +0000

I've always wondered whether there really is a way make money long term by renting stocks for the dividend-dividend capture as it is known. There are of course funds that do this but the results while generally ok over longer periods of time have been not so great in the last few months.

Before we get into this, even if it makes sense strategically it would be very tax inefficient so the context is in an IRA of some sort. Lets say the theory would be to put something like 50-60% of the portfolio in one of the total world funds and the rest would be used to rent stocks around their dividend dates.

To keep the math simple lets assume 3% into 15 names at any one time. A quick mechanics note is that on ex-date a stock price is reduced before the open to account for the dividend. For example a stock closes at $100 today. Tomorrow it goes ex-div for $0.50. If it closed tomorrow at $99.50 it would show unchanged. Obviously buying at $100, taking in a $0.50 dividend and selling at $99.50 is a waste of time and commission dollars.

The idea would be to buy before ex-date and sell it for at least what you paid for it after ex-date or in the example about buy at $100, take in the $0.50 and then sell for at least $100. So the stock would need to work back up to the pre-dividend price. In a healthy market this doesn't take that long but of course it may never make back the dividend.

Below is a list of real stocks with the name changed (we're not handing out fish here) along with the most recent dividend and the days needed to make back the ex-date reduction.

Enormous Domestic Bank 1.6% (this was the yield for the quarter, so annual 6.4%) made back the ex-div reduction in six trading days (intra-day)

Big Foreign Oil 5.4% (this was a once a year div) made back the reduction in six trading days

Hot Potato Shipping 1.6% (for the quarter) made back the reduction the next day

Fat Yield Foreign Tech 2.1% (for the quarter) made back the reduction in five trading days

Big Cap Telecom 1.1% (for the quarter) made back the reduction in 15 trading days

Good Ole Boys Tobacco 1.04% (for the quarter) made back the reduction in six trading days

Widows and Orphans Electric 1.34% (for the quarter) 58 days and counting (the next div is right around the corner)

Emerging Market Bank 4.9% (annual) four days to make back the reduction

Big Global Health 1.1% (quarterly) two days to make back the reduction

US of A Chemical 1.1% (quarterly) five days to make back the reduction

Not So Big Chinese Company 5.3% (annual) 16 trading days to make back the reduction

Great White North Bank 1% (quarterly) made back the reduction next day (intraday)

Ginourmous Conglomerate 0.9% (quarterly) made back the reduction next day (intraday)

Non-Oil MLP 2.2% (quarterly) made back the reduction next day

Emerging Market Oil 8.1% (annually) made back the reduction in nine days

That's 15 names, one did not work and I was able to find these by only looking at 21 stocks. There is a long term upward bias to the market so it may be so that since I grabbed the most recent dividends and the market has generally trended higher in that time it appears to be working out. If I had done this two months ago it may not have worked out as well as now and to be clear a lot of ideas work when the market is in an uptrend.

These stocks listed above are real stocks but they would just be a sampling of what I think would be needed to to maintain a fully invested portfolio that presumably would turn over ever month. If all 15 of these paid in the same month (sorry but I didn't want spend all day building a database I'm not going to use) then the yield on this portion of the portfolio would have been 2.65% for the month.

Is that representative of every month? The argument no is because the list brings in several annual pays to which I would say there would be a few months in the year where you could really load up on annual pays.

If someone with the time and inclination to do this could muster 1.5% per month it would be a monster home run.

It is possible that certain CEFs and other sorts of investment products could work too.

How large would the data base of stocks need to be to pull this off? The example above is with 15 stocks. 15 times 12 is 180 stocks but obviously you could bring that number way down as most of the stocks pay quarterly and so they could be bought four times per year.

The flaws abound but there is not much realistic risk of a bunch of stocks like this (notice there is no undue sector risk relative to SPX) cutting in half all at once unless the overall market cuts in half. Of all of the stocks studied plenty dropped close to 20% with the market and only one, the Chinese stock, from the top down to the bottom dropped by 50%.

I am in no way advocating picking stocks just for the yield. Buying a stock without a thorough study of the company is straight up stupid. Obviously there would need to be some sort of exit strategy discipline. Widows and Orphans Electric has not worked out on this go around, probably because utilities in general have not done great, but nonetheless it has not worked. Holding for 58 days would not make sense, relative to the strategy because that's a long time to not capture another dividend which is the point of the exercise.

Obviously just because I had an easy time finding names that worked does not mean it would work in the future. There is an up-market logic that says it could work but there is no guarantee.

Another big risk that comes to mind is behavioral. For instance this could start out, in an up market, working just fine leading to a little more risk being taken, which might also work out, leading to a little more risk and the next thing you know you have six shipping stocks with colossal dividends and then the rug gets pulled out from underneath as was the case last year.

The human reaction of taking more and more risk when something seems to be working for a while repeats over and over.

This is not something I am going to do. I do not think it is a substitute for a diversified portfolio. I do think it is very worthwhile to explore crackpot ideas like this because it does provide the chance to look at portfolio construction from different perspective which is very constructive.