Bank of America is a major player in the financial services industry of this country. So what's the Royalty Trades position on this stock?
Oooh, we are not fans. They missed their most recent quarterly earnings report by twenty cents a share. And we've seen insiders selling shares recently, which is always a major red flag for us. Aside from those two significant problems, you've got analysts decreasing earnings estimates, and a chart that just really doesn't have any momentum behind it. If you absolutely have to hold a bank, go with Goldman Sachs seeing as how they're as close to the Illuminati that one can get these days.
Friday, February 25, 2011
Wednesday, February 23, 2011
Free Stock Tip of the Day: WNR
We've made quite a mint recently off Western Refining Inc (WNR). Aside from the fact that we've been bullish on oil for a bit, this stock's got great momentum to satisfy you technical analysts, and good sales and a goof forward PE to whet the appetites of all you fundamental analysts.
Tuesday, February 22, 2011
Royalty Trades Chosen As Motley Fool Score Leader
Royalty Trades has once again been chosen as a Motley Fool Score Leader, this time for the ETF RETS. For more winning stock picks, check out our web site.
Thursday, February 17, 2011
Five Ways to Profit Off Egypt
The turmoil in Egypt has brought out one of those classic either/or situations that you occasionally see in stocks. Either democracy will take root in the country and the world's largest Arab country will flourish, or something will derail the process and she will continue to stagnate. So how does one take advantage of this situation?
EGPT, the Market Vectors Egypt ETF, is the only pure Egypt ETF available right now, although others are coming online. If you think Egypt's destiny is assured, then this is the play for you. If you think rocky times are ahead, short it.
If you're bullish on Egypt but want to diversify your risk, consider a regional ETF such as AFK, PMNA, FRN, or GULF. All of these have between 10 and 19% allocations to Egypt, so you get the exposure with less of the risk.
EGPT, the Market Vectors Egypt ETF, is the only pure Egypt ETF available right now, although others are coming online. If you think Egypt's destiny is assured, then this is the play for you. If you think rocky times are ahead, short it.
If you're bullish on Egypt but want to diversify your risk, consider a regional ETF such as AFK, PMNA, FRN, or GULF. All of these have between 10 and 19% allocations to Egypt, so you get the exposure with less of the risk.
Wednesday, February 16, 2011
Three Reasons the Market Crash Isn't Around the Corner
Investor sentiment at all time highs, Google trying and failing to buy Groupon for $6 billion, and gold being purchased at the mall; all signs of a forthcoming stock apocalypse, right? So where is it?
We don't think it's coming, at least not for the next six months, and quite possibly not until next year. Yes, there are many signs that stocks are overbought, and gold certainly is. But there are a couple of things propping this rally up.
First, consumer confidence is pretty low at this point, which is a good contrarian indicator for the market. Stocks after all, are a leading indicator, so when consumers start to feel as though it's darkest the market knows that dawn is right around the corner. And rise as a result.
Second, the Fed is determined to print money and pump up the market. They're doing this partly because money needs to be spent to cement the economic recovery, but also because they want the rally to continue. When people see the market rise they feel richer, which is good for politicians.
Third, you're seeing a phenomenon in which people are determined to buy the dip. Right now, whenever there's a slight drawdown in the market investors see it as an opportunity, not a sign of crisis. Volatility is ridiculously low right now because as soon as stocks show the littlest sign of dropping people are rushing in to snap them up at what they think is a discount.
So for now the trend is up, it's your friend, and don't fight it. It'll be time to get nervous when your barber starts giving you stock tips. When the correction does come it will probably look like ten people playing a game of musical chairs with only one chair left. But until our proprietary indicators demonstrate that the panic is about to begin, we are more than comfortable using leveraged ETFs to make money in this market.
We don't think it's coming, at least not for the next six months, and quite possibly not until next year. Yes, there are many signs that stocks are overbought, and gold certainly is. But there are a couple of things propping this rally up.
First, consumer confidence is pretty low at this point, which is a good contrarian indicator for the market. Stocks after all, are a leading indicator, so when consumers start to feel as though it's darkest the market knows that dawn is right around the corner. And rise as a result.
Second, the Fed is determined to print money and pump up the market. They're doing this partly because money needs to be spent to cement the economic recovery, but also because they want the rally to continue. When people see the market rise they feel richer, which is good for politicians.
Third, you're seeing a phenomenon in which people are determined to buy the dip. Right now, whenever there's a slight drawdown in the market investors see it as an opportunity, not a sign of crisis. Volatility is ridiculously low right now because as soon as stocks show the littlest sign of dropping people are rushing in to snap them up at what they think is a discount.
So for now the trend is up, it's your friend, and don't fight it. It'll be time to get nervous when your barber starts giving you stock tips. When the correction does come it will probably look like ten people playing a game of musical chairs with only one chair left. But until our proprietary indicators demonstrate that the panic is about to begin, we are more than comfortable using leveraged ETFs to make money in this market.
Thursday, February 10, 2011
Stock of the Day: Alcoa
Alcoa is the world's third largest producer of aluminum. So what's the Royalty Trades position on this stock?
We're slightly bullish. Alcoa's got moderately accelerating earnings, good momentum, and a good earnings report. But the company's also facing some headwinds. We're really not loving the PE on this one, and there have been rumblings that they might not meet their earnings estimates.
Still, quite a few institutional investors have been snapping this one up, so we're bullish for the moment.
We're slightly bullish. Alcoa's got moderately accelerating earnings, good momentum, and a good earnings report. But the company's also facing some headwinds. We're really not loving the PE on this one, and there have been rumblings that they might not meet their earnings estimates.
Still, quite a few institutional investors have been snapping this one up, so we're bullish for the moment.
Friday, February 4, 2011
Stock of the Day: TLAB
Tellabs, Inc is a company that designs equipment and provides services to communications services providers around the globe. What is the Royalty Trades position on this stock?
We're not in love with it, frankly. On the one hand, TLAB does have a good price to earnings ratio. And . . . that's about it. On the con side we have not so great momentum, a high PE to five year growth multiple, and a bad quarterly earnings report. Topping it all off is the fact that insiders have been selling their shares lately, which is pretty much the most ominous sign to look out for. So for now, we'd stay away from TLAB.
We're not in love with it, frankly. On the one hand, TLAB does have a good price to earnings ratio. And . . . that's about it. On the con side we have not so great momentum, a high PE to five year growth multiple, and a bad quarterly earnings report. Topping it all off is the fact that insiders have been selling their shares lately, which is pretty much the most ominous sign to look out for. So for now, we'd stay away from TLAB.
Wednesday, February 2, 2011
They're Very Good at Turning Your Money into Their Money: Michael Lewis Discusses the Financial Crisis
Michael Lewis's the Big Short is one of the best books discussing the financial crisis. This interview is a little simplified; if you want more detail, check out The Crisis of Credit.
| The Colbert Report | Mon - Thurs 11:30pm / 10:30c | |||
| Michael Lewis | ||||
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