WMT
Netflix – A Brutal Lesson On the Dangers of Overvaluation
2011-10-26
The stock market has been pummeling Netflix (NFLX), assumingly based on significantly lowered expectations of future earnings results. However, the purpose of this article is not to provide a comprehensive analysis of Netflix the business. Many fine articles have recently been published that have covered the business potential of Netflix more than adequately. Whether Netflix […]
9 of the Second 10 Best Performing Dow Stocks are Fairly Valued
2011-10-17
The Dow Jones Industrial Average Second 10 Best Performers There is a lot of discussion taking place today about whether or not stocks are good long-term investments. Most of it is slanted towards the negative with dire forecasts of poor future returns. Implied in these forecasts of doom are opinions that stocks are overvalued today. […]
Prof. Schiller and CAPE, Maybe Correct Generally, But Specifically Wrong: The Market is Currently Cheap
2011-10-12
Introduction Many well-known stock market pundits to include the likes of Henry Blodgett point to Professor Robert Shiller’s cyclically adjusted PE ratio or CAPE to make a case that the stock market (S&P 500) is overvalued. According to Prof. Shiller, the long-term average PE ratio (CAPE adjusted) for the S&P 500 is approximately 16. And […]
Why Buy and Hold Will Always Be a Sound Investing Strategy
2010-10-19
It seems like the debate regarding the merits of the “buy-and-hold” investing strategy is alive and well. We always find these discussions amusing, because we believe that it is such a pointless discussion. There is no general argument or case that can be made to support the buy-and-hold strategy or to negate it. The only […]
Costco vs. Wal-Mart: Who Wins the Stock Price Wars?
2010-10-07
Headquartered in Issaquah, Washington, Costco (COST) reported fiscal year fourth quarter earnings Wednesday that beat street estimates only to see its shares slide. Although earnings were two cents better than estimated, revenues came in a little short. So far, the media is attributing Wednesday’s stock slide to the revenue miss and slightly slower September sales […]
VF Corporation: Attractive Valuation With a Growing Dividend
2010-09-08
Introduction and History VF Corporation (VFC) is the world’s largest apparel company with solid brands that are sold in more than 150 countries throughout the world. The company traces its roots back to 1899 when eight men formed the Reading Glove and Mitten manufacturing company in Reading, Pennsylvania. In 1911 one of the eight men, […]