Value investors tend to be conservative, while emerging market investors are often thought of as aggressive.
Many
investors place these limits on themselves. Value investors might only
consider large-cap, dividend-paying stocks, for example. In doing so,
they could be severely limiting their profits.
When looking at emerging markets recently, we noticed two countries offering deep discounts.
Value
is usually found in a country's stock market when the economy turns
down. That is certainly true for Thailand. The country is in a mild
recession after two consecutive quarters of GDP contraction. Economists
expect the recession to be short-lived and are expecting Thailand to
recover in the second half of this year.
Historically,
the end of a recession has been a profitable time to buy because stocks
are trading at bargain levels and the recovery should help prices
recover quickly. iShares MSCI Thailand Capped Investable Market (NYSE: THD) is trading with a price-to-earnings (P/E) ratio of 10, well below its five-year average near 15. (more)
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Tuesday, October 8, 2013
2 Key ‘Turnaround’ Stocks to Buy Now: RLGY, MFLX
One of the best ways to make money in the stock market is to spot
stocks with high growth potential — before Wall Street and the big
investment firms recognize these budding winners.
One way to do that is to shop for companies that have been losing money, but are showing signs of profitability – “turnaround” stocks, I like to call them.
The ideal turnaround stocks will surprise to the upside and return long-term profits.
But there’s more to it than a rebound in profits and revenue – the best turnaround stocks to buy also have undervalued share prices. (more)
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One way to do that is to shop for companies that have been losing money, but are showing signs of profitability – “turnaround” stocks, I like to call them.
The ideal turnaround stocks will surprise to the upside and return long-term profits.
But there’s more to it than a rebound in profits and revenue – the best turnaround stocks to buy also have undervalued share prices. (more)
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The Gap Inc. (NYSE: GPS)
The Gap, Inc. operates as an apparel retail company. It offers
apparel, accessories, and personal care products for men, women,
children, and babies under the Gap, Old Navy, Banana Republic,
Piperlime, Athleta, and Intermix brands. Its products include maternity
apparel; loungewear, sleepwear, intimates, and active apparel for women;
and handbags, shoes, jewelry, personal care products, and eyewear for
men and women; women's apparel, footwear, and accessories for sports and
fitness activities, including crossover apparel and casualwear; and
luxury and contemporary apparel and accessories. The company also has
franchise agreements with unaffiliated franchisees to operate stores in
Asia, Australia, Eastern Europe, Latin America, the Middle East, and
Africa under the Gap and Banana Republic brands. The Gap, Inc. offers
its products through company-operated stores, franchise stores,
e-commerce sites, and catalogs.
The Gap's stock has formed a head and shoulders (H&S) pattern. Please take a look at the 1-year chart of GPS (Gap, Inc) below with my added notations:
Over the last (4) months GPS has created a very important support level at $40. That $40 support is also the current 'neckline' for GPS' H&S pattern. Above the neckline you will notice the H&S pattern itself. Remember, patterns such as an H&S need to confirm to have the meaning they imply. Confirmation of the H&S would occur if the stock were to break below its $40 support. If GPS does break that level, the stock should move lower from there.
The Tale of the Tape: GPS seems to have formed a head & shoulders pattern. Although a trader could go long at $40 expecting a bounce, the stock's pattern implies an eventual breakdown. If that happens, a short trade should be entered on a break of the $40 level.
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The Gap's stock has formed a head and shoulders (H&S) pattern. Please take a look at the 1-year chart of GPS (Gap, Inc) below with my added notations:
Over the last (4) months GPS has created a very important support level at $40. That $40 support is also the current 'neckline' for GPS' H&S pattern. Above the neckline you will notice the H&S pattern itself. Remember, patterns such as an H&S need to confirm to have the meaning they imply. Confirmation of the H&S would occur if the stock were to break below its $40 support. If GPS does break that level, the stock should move lower from there.
The Tale of the Tape: GPS seems to have formed a head & shoulders pattern. Although a trader could go long at $40 expecting a bounce, the stock's pattern implies an eventual breakdown. If that happens, a short trade should be entered on a break of the $40 level.
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HARRY DENT ~ A Message to Australia
Harry Dent of HS Dent Investment Management explains why he predicts a market crash in the third quarter of the year and that the U.S. is headed towards bankruptcy. Stock Market.. an aging Bull Market? Real Estate Party Over? Invest In Gold? Europe Crash Impact? The Government Has To Fail... Survive and Prosper in 2013 with Harry Dent.
Harry S Dent is a financial newsletter writer and author , who is also the founder of HS Dent Investment Management, an investment firm based in Tampa, Florida. Mr. Dent's latest book is The Great Crash Ahead. Other books include The Great Depression Ahead and The Next Great Bubble Boom.
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Understanding the $38 Trillion Bond Market in 5 Easy Steps
When it comes to the holy trinity of investing,
(stocks, bonds and cash) it seems the rules and nuances of investing in
the bond market often are the most baffling for newcomers.
For this edition of Investing 101 we are going to demystify the bond market and have put together five quick tips to help you get your head around buying bonds.1. What is a Bond?
Simply put, a bond is a loan. Just like a mortgage, bonds involve a lender and a borrower, and also come with a predetermined interest rate and maturity date that never changes. And just like you and me, bond issuers also have credit scores (or ratings) that make it more or less expensive for them to borrow depending on the likelihood that the lender will be paid back. Bonds typically are sold in $1,000 increments and have a face value (or par value) in the same amount. (more)
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