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 …
Research Articles
Dissecting the Dow: 21 of the 30 Dow Stocks are Undervalued, 6 are Fairly Valued, and Only 3 Appear Overvalued
Introduction In this final segment, we will cover the 10 poorest performing DJIA stocks since 1995. In part one which covered the best 10 performing DJIA stocks; we saw a group of companies that could best be described as consistent above-average earnings generators. Consequently, it makes sense that they were the best performers since we …
9 of the Second 10 Best Performing Dow Stocks are Fairly Valued
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
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 …
The Legacy of Steve Jobs and the Record of Apple will Live On
The world at large, as well as the worlds of business and technology lost a great iconic leader yesterday. In addition to his obvious and widely renowned accomplishments, I believe that Steve Jobs was also a great teacher. Steve Jobs didn’t teach by lecture, instead he taught by his actions. Yesterday marked the second time …
Warren Buffett Said Ignore Political and Economic Forecasts
There’s certainly no shortage of pundits, prognosticators and even self-proclaimed prophets ready and willing to bombard us with dire forecasts about our future. We get a day in the market like Monday, August 8, 2011, and “Chicken Little” shows up everywhere to include radio, television, newspapers, magazines and the Internet. Yet somehow, we survive it …
Caterpillar Inc. (CAT) Piling Up Profits: Part 4 of 7
Introducing Caterpillar Inc. (CAT) Caterpillar Inc. (CAT) is known and recognized worldwide for their construction equipment, farm machinery and heavy duty trucks. Like most industrial companies, their business can be very cyclical at times. However, the company is capable of generating strong profits when times are good. The following description is taken directly from their …
Cummins Inc. (CMI) Staggering Three-Year Annualized Performance? (Part 2 of 7)
Cummins Inc. (CMI) is best known as a manufacturer of some of the world’s best diesel engines. Founded in Columbus, Indiana in 1919; as the Cummins Engine Company they built their reputation on the economy, power, reliability and durability of their engines. The following description is taken directly from their website: “Cummins Inc., a global …
Is Dover Corp. (DOV) a Cyclical, Growth or Dividend Growth Stock?
Dover Corp. (DOV) reported their earnings today. The following excerpt from their press release summarizes their excellent quarter. It was recently suggested that we prepare an article on Dover Corp. (DOV), and therefore, felt it was appropriate to prepare this review on earnings day. Dover is a company that has been on our focus list …
Should Dividend Growth Investors Forgive General Electric?
There was a time in the not-too-distant past when General Electric Co. (GE) was the darling of Wall Street and everybody’s favorite stock to own. This was especially true during the Jack Welch Era, which spanned the years 1981 to 2000. In truth, I agree that Jack Welch should have been given a great deal …