The stock investing world is filled with well-known valuation metrics — the price/earnings ratio, price/book ratio, free cash flow yield, price/sales ratio, and numerous other variables have been used by successful investors to find winning stocks. A new study shows, however, that a much less popular valuation metric — the gross profits-to-assets ratio — may [...]
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Archive | May, 2010
Doll Still Believes in the Bull Run
May 20, 2010
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Blackrock’s Bob Doll says that the current downturn is a correction, not an end to the cyclical bull market that he thinks will eventually resume. Doll tells Bloomberg that it may take some time to get through the correction, but that from a price standpoint we’re “most of the way through” it. He thinks the [...]
Read moreHulbert: Bearish Sentiment May Be a Bullish Signal
May 20, 2010
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Hulbert Financial Digest’s Mark Hulbert says he’s seeing extreme pessimism among newsletter editors he tracks — and that may bode well for the market. ”I’ve seen perhaps one of the fastest trips from the bull side to the bearish side among the advisors that I track that I’ve seen in years,” Hulbert tells CNBC, “and [...]
Read moreHussman: These Dips Don’t Offer Much Opportunity
May 20, 2010
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Despite the market’s recent struggles, John Hussman — whose funds have some solid long-term track records — isn’t seeing a great opportunity to “buy on the dip”. “My impression is that the market remains in a tenuous state in that we have not meaningfully cleared the overextended syndrome that has been with us in recent [...]
Read moreMobius: Emerging Markets Offer Less Risk than Developed Markets
May 20, 2010
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Templeton Asset Management’s Mark Mobius says emerging markets are offering less risk and better returns than other more developed markets. Mobius tells Bloomberg that many emerging markets have lower debt loads and higher growth prospects than developed nations. He also says that the European debt crisis has put a damper on emerging markets recently, offering [...]
Read moreBerkowitz, Paulson Upped Stakes in Several Financials in Q1
May 19, 2010
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While Warren Buffett trimmed some of his financial stock holdings in the first quarter, two other top strategists — hedge fund guru John Paulson and Morningstar fund manager of the decade Bruce Berkowitz — added to several of their bank share stakes. According to MarketWatch, Paulson upped his Bank of America holdings by almost 17 [...]
Read moreGuru Strategy Rating Changes: Sanofi, Goldman on Move
May 19, 2010
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Each week, we take a look at which stocks John Reese’s Validea.com Guru Strategy computer models have newfound interest in, and which they have soured on. Here’s a look at some of the stocks John’s strategies have upgraded or downgraded today. Among the big-name movers: Sanofi-Aventis and Goldman Sachs.
Read moreGrantham Bullish on Timber — and Little Else
May 19, 2010
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Jeremy Grantham has been sounding bearish lately, but at least one type of investment is piquing his interest: timber. Crain’s New York Business reports that Grantham, speaking at the CFA Institute’s recent annual conference, told onlookers that timber is currently his favorite investment choice. Grantham sees timber rising about 6% per year over the next [...]
Read moreWinters: Short-Term Thinking Not the Way to Get Rich
May 18, 2010
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David Winters, whose Wintergreen fund has significantly outpaced the market this year and over the past 1- and 3-year periods, offers his thoughts on the markets and investment strategy in this interview with Bloomberg. Winters says he thinks the world will “re-inflate” as currencies get debased, but he says the problems will ultimately be resolved. [...]
Read moreBuffett, Berkshire Make Big Q1 Changes
May 18, 2010
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Warren Buffett’s Berkshire Hathaway cut back on several equity positions and eliminated others altogether in the first quarter, with one of the biggest moves being its sale of a billion or so dollars of Kraft shares. CNBC reports that Berkshire slashed its Kraft holdings by 22.8% in the first quarter, during which Buffett was critical [...]
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