December 30, 2011
Did Saudi Prince Alwaleed Just Kill Twitter?
 A $300 million investment from the Saudi royal family could validate the Twitter platform. Or undermine it completely. Every parent witnesses firsthand, the other side of the holiday season — when today’s object of desire is placed on the shelf next to last year’s marquee gift, to be played with less and less frequently until it is eventually discarded. The same happens with investments, as we have seen time and again; stocks that seem like they can’t miss often go down in flames because growing and sustaining a business is a difficult and delicate matter. Technology stocks are the fruit flies of the business world as most die quickly. Currently, everyone is rushing to become a technology “platform,” but some are overly focused on attracting a short-term audience rather than learning from the fruit flies that went before and building (more)…
Energetic Year for Energy Stocks
 Energy is a sector that’s prone to volatility, and 2011 was a fine example. For the spring and summer, the sector was strong, only to plunge during the market swoon in early August, make a recovery in the fall and end up…pretty much right back where it started. The Energy Select Sector SPDR ETF (XLE) wound up finishing the year about 1.35 percent from where it started. Strait of Hormuz The biggest story of the year for the energy sector may actually be one of the latest breaking ones. However, the threat by the Iranian government to close down the Strait of Hormuz, the narrow channel leading from the Persian Gulf to the Indian Ocean, if Western powers sanction Iranian oil exports threatens to have consequences that reverberate around the globe. Almost 20 percent of the world’s oil passes through (more)…
Singular Research’s Top Picks for 2012
 As discussed yesterday, here are Singular Research’s Top Ten “Uncovered Gems” list for 2012, spanning a diversity of industries, including Industrial, health care, technology, and energy and includes some strategic takeover candidates: HURCO Companies (HURC) Recent price: $22 Price target: $47.50 Analyst: Greg Garner, CFA HURCO designs & manufactures machine tooling with Designs and manufactures machine tool products that are used to make metal products for a number of industries. The interactive computer control system automates the manufacturing process with a sophisticated controller that enables short run production very efficiently. HURCO machines are primarily used to make custom products in short production cycles. Revenues last quarter grew 91.0% to $50.57 million, above our forecast of $46.3 million. North America revenues increased 82.0%, Asia Pacific was up 82.5%, and Europe was up 96.9%. HURC’s EURO exposure has been a positive up (more)…
3 Top CEOs of 2011
 The impact of a CEO on a company is difficult to measure, but the unique qualities a top executive can bring to a company can change the entire course of its existence. The truth of this was never more clearly displayed than in an interview with Apple’s (AAPL) Steve Jobs, who when asked about Microsoft (MSFT) said, that the company “simply had no taste.” Microsoft and Apple both came into their own during the same period of time, but today Apple has far outpaced Microsoft in terms of creating revolutionary technology with massive consumer appeal. Apple products, especially the iPhone are ubiquitous because of the style imbued in them by Jobs. Complaints about the iPhone’s core functionality, namely the excess call dropping, would likely deter a less passionate consumer base, but Jobs has created a culture around his products and Apple (more)…
Strong Stocks Today = Winners Next Year
 Brooksie’s Daily Stock Market blog – an edge before the open Friday, December 30, 2011 9:08 am ET DJIA: 12,287.04 S&P 500: 1263.02 I’m not going to tell you what to expect in 2012, because I don’t know. What’s more, what is so special about the New Year ? Why forecast now ? Does this time of the year offer a better window of prescience for forecasters ? How about a forecast for the coming 12 months in September, before most of the market surges usually occur. That would be more helpful. Sounds like a person who is burnt out by the Holiday Season ? What’s my point ? Don’t “overweight” New Year Forecasts. They facilitate publications and coincide with the time many people feel they must get a new start in their lives, but focusing on these forecasts can (more)…
China Stocks End Bad Year with a Whimper
 Investors mostly took the day off on the last trading day of an awful year for China stocks and face daunting uncertainties at the start of 2012. Hong Kong’s Hang Seng Index edged 0.2% higher in puny turnover Friday. It ended the holiday-shortened week, ahead of another day off next Monday, down 1.0%, 195 points, to 18,434. That is a plunge of 20.0% from the end of 2010. The index of Chinese companies slipped 0.08% Friday and fell 1.9% for the week to finish at 9,936. The main factor in 2011’s big drop was the European debt crisis, and it will still hang over the market moving into the new year. Investors will remain cautious in January due to concern about substantial European bond issuing pressure in February and April, according to Ben Kwong, chief operating officer at KGI Asia. (more)…
December 29, 2011
The January Effect – Dancing in the Dark
 Want to participate in the big dance this year? Here’s some back-story from conventional wisdom that you might need to know so that you aren’t simply bumping your way along the dance floor. Mutual fund managers sell off their bad investments in December and do some “window dressing” at year end so their annual reports show that they are holding solid blue-chip stocks. The logic follows that this is particularly true among small-cap stocks. Could this be why stocks go down towards the end of the year and rise again in January? Though the reasons for its outcome may not be so simply explained, especially in an internet-connected world of increasing transparency among investors, the January Effect turns out to be more accurate than not. Judging by the historical data of the S&P 500 cash index, this event is not (more)…
Highlights in Health Care 2011
 Healthcare is traditionally considered a defensive sector and in 2011 it lived up to its name. Investors flocked toward it, driving it higher by 13.2 percent for the year as new regarding advancements in cancer, AIDS and hepatitis C stood out as some of the best news amid a murky global economy. Drug Break Throughs On the HIV/AIDS front, research was published that confirmed that a powerful HIV drug could dramatically reduce transmission rates while improvements in gene therapy and other means of minimize the HIV infection spurred talk of a potential cure. Cancer had a number of massive breakthroughs in areas ranging from prostate cancer to Lukemia. Medivation, Inc. (MDVN) was celebrated have trials of its experimental new prostate cancer treatment exhibited tremendous success. Along with their partner Astellas Pharmaceuticals (ALPMY), Medivation revealed that its new treatment clearly extended (more)…
Financial Sector Struggles Through a Rocky 2011
 The Financial Sectors had a roller coaster 2011 as the early months seemed to indicate the recovery was on its way, only to experience a reversal amid fears and exposure to a shaky Europe and a massive U.S. debt. The reduction of the U.S. credit rating from AAA to AA+ was among the major financial events of the year. The decision by the S&P shook consumer confidence ands caused massive swings of volatility in the market with banks being the hardest hit. Banks were also under increased scrutiny late in the year as a result of Occupy Wall Street and a number of Federal reforms putting shifts at the bank into the spotlight. A Bank of America (BAC) decision to introduce a $5 monthly charges for its debit card users was widely publicly reviled after Occupy Wall Street shed light (more)…
Utilities Stocks Had a Big Year in 2011
 Utilities have had a relatively strong year in 2011, with the Utilities Select Sector SPDR Fund (XLU) showing a 15 percent improvement since January and an over 20 percent jump since its 52-week low, reached in early August. The relative safety and stability of utility stocks may be what attracted investors this fall as congressional budget fights and European debt woes lead to a volatile end of the year. Dynegy, Inc. (DYN) Files for Bankruptcy Dynegy is a Houston-based energy company that sells electricity via its 17 power plants in six different states. Dynegy, though, fell onto hard times this year and was forced to file for bankruptcy due to debts of more than $5 billion. However, the chapter 11 filing took an intriguing turn when Dynegy decided to protect its shareholders, including billionaire investor Carl Icahn, by strategically filing for (more)…
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