Apple Has Room To Run Beyond New Price Highs

by Samuel Smith on June 18, 2010

This week, Apple (AAPL) made new highs, closing at $274 on Friday. A lot of traders are expecting the momentum to stop, and at some point, it will, but how high will Apple climb before it does?

To all the bears who think Apple is an $11 stock and will always be an $11 stock, I scoff at you! Apple stock is hilariously undervalued for a stock that has so many eyes on it. Although technical indicators are crucial, too many traders are looking for bad news on the chart, expecting to find “resistance” at certain levels. They are failing to realize how good of a fundamental play the Apple stock remains.

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Fears of Financial Regulation Dictate Market Movements

by Samuel Smith on June 14, 2010

This morning, the Dow Jones Industrial Average climbed 100 points in early trade to reflect a bullish sentiment in a relatively uncertain market.

The only sector not participating in this rally? Financials. On an otherwise strong day, JPMorgan (JPM), Bank of America (BAC), Wells Fargo (WFC) and other big banks are all down by about 1%. An upward move with one sector lagging, particularly the financial sector, can be very good news or very bad news.

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Lululemon Athletica Holds Strong Pose Even In Volatile Market

June 10, 2010

Lululemon Athletica (LULU), which jumped more than 4% Wednesday, had its best-ever Q1 this year when its earnings tripled from the previous year. Analyst projections were for $0.21 earnings per share, and actual earnings beat this by a healthy margin for $0.27 per share.

Lululemon has raised revenue projections for the rest of 2010 by about 20%. LULU currently operates around 100 stores across North America, so there’s plenty of room for growth with this company, whose customers are women who participate in yoga and other sports.

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Market Fear? Not As Necessary As “They” Want You To Believe

May 17, 2010

With all the volatility and uncertainty that’s returned to the market in recent weeks, it would be easy to fall back into panic. On Thursday, May 6, financial TV channels showed endless loops of a few Greeks protesting in the streets. To the networks’ delight, police in riot gear were challenging the protesters.

I say “of course” because such images play right into the agenda of the media, which is to frighten you.

Here’s an excellent article by Alexander Green on this very topic.  He actually goes on to address the bigger issue of using television as a substitute for real life — and I agree with that, though it’s a longer discussion for another day.

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Simple Stock Watch: Designer Shoe Warehouse (DSW)

April 28, 2010

Well, the market took a crazy beating on Tuesday. Investors clearly started freaking out about the wider ramifications of the debt crisis in Greece, and sent equities plummeting.

But today, we’ll look at one that bucked the trend, Designer Shoe Warehouse (DSW).

It’s easy to get discouraged on a day like this. But remember: Every market decline is followed by a new uptrend.

And one of the crucial things to do while you wait for the market to find its footing is to keep trolling for stocks whose price and volume action are outpacing the indexes. On Tuesday, there were precious few names meeting that description. But here’s a look at one of them, Designer Shoe Warehouse (DSW).

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What To Make Of Low-Volume Stock Rally?

April 12, 2010

A lot of analysts are fretting about the low volume rally on the stock market indexes. Ideally, of course, you want to see heavy-volume trading as stocks move higher.  That’s an indication of confidence among professional investors, like mutual funds and hedge funds.

So what should investors make of the steady low-volume climb in the Dow, Nasdaq and S&P 500? Remember: The market looks ahead, so rising stock prices signal investor optimism about the situation a few months from now.

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Simple Stock Watch: Rue21 (RUE)

March 29, 2010

A lot of people like getting their fashion fix on the cheap. That’s why Ross Stores and TJ Maxx have continued to perform well.

But think about who those stores attract. Families looking for bargains for the whole gang. Or adults, saving money on clothes for themselves.

There’s nothing terribly edgy about either of those companies, even though both stocks have made steady price advances in the past 15 months.

But a recent IPO, Rue21, takes the value clothing concept to a different level. Check out this video from the company’s IPO road show:

Rue 21 Road Show

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The Best Investors Never Stop Educating Themselves

March 21, 2010

The other day, I came across this blog post by Steve Place called “A New Way To Look At Market Volatility.”

Steve opens his article with these words: “I’m always searching for different ways to approach and perceive the market– I feel that sticking to a set of knowledge without flexibility or adaptation will lead to underperformance in the market.”

Now, I ended up liking the article a lot, and agreeing with Steve. But my initial reaction was, “That’s crazy. You can’t just go changing your approach every time you hear something new.”

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Use Stock Charts, Not Stock Tips, To Make Your Investing Decisions

March 16, 2010

Here’s a nice, encouraging, happy kind of story I read this morning:

Rumor Confirmed: Idle Ships Pouring Back Into Service In Response To The Global Rebound

Investors love stuff like this, because it’s easy to invest on tips and stories. As humans, we’re hard-wired to love stories. It’s part of our DNA. So along comes a great story about a down-and-out company that’s roaring back. Or a scrappy new little company that’s like David taking on the Goliaths. Or maybe it’s the return of the conquering hero: A guy who successfully ran another company is back with his new venture, smarter than ever and with a “can’t miss” way of meeting the latest demands.

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China Agritech (CAGC): Simple Stock Watch

March 12, 2010

Check this out: China Agritech, a China-based company that makes organic fertilizers, has continued its skyrocketing gains.

Now, I realize that a lot of investors don’t even consider stocks that have already run up like this, because they figure it’s up too high already. I’ve seen too many stocks keep climbing after reaching a series of new highs. So I’m keeping an eye on this one, and I’ll be ready the next time it finds support at its 10-week moving average. That would show that professional investors are scooping up more shares, which, of course, is a vote of confidence.

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