Tuesday, January 7, 2014

Cisco Systems (NASDAQ: CSCO), Intel (NASDAQ: INTC): 2 of the Most Undervalued Stocks in the Market Right Now

Many investors follow the Dogs of the Dow, a well-known trading strategy that is intended to buy value stocks. Originally, the Dogs of the Dow strategy consisted of buying the 10 highest yielding stocks in the Dow Jones Industrial Average and rebalancing the portfolio once a year.
Every January, a new list of Dogs would be compiled and changes made to the portfolio to reflect them. Most years, at least some of the stocks remain on the list and turnover is relatively low.
Once the Dogs of the Dow strategy was first published, a number of variations have been developed. One of the variations of the strategy is to buy only the five lowest priced stocks from the list of the 10 highest yielding stocks. This is the approach Amber detailed last month. She suggests using call options to lower the purchase cost and increase the potential gains from the strategy.  (more)

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FreeSeas (NASDAQ: FREE) Low-Priced Shipper Can Easily Soar 100% in the Next 90 Days

Active trading is a never-ending educational process. No matter how long one has participated in the endeavor, there is always something new to learn. I have actively invested in the financial markets since 1990, and I am constantly fascinated by new ideas and even sectors.

This is how the markets have captivated me for over two decades. They are never boring and are constantly offering up new ways to capture profits. 

My stock screener recently alerted me to a low-priced stock that could easily double in the next 90 days. This company is part of an industry that I knew very little about, so I set out to learn all I could prior to investing. What I learned got me very excited about this company's potential.

If you have ever spent time on the beach, you have certainly noticed several large cargo ships traveling along the horizon. These ships transport products around the world from their country of manufacturer.   (more)

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Chart of the Day - Hawaiian Holdings (HA)

The Chart of the Day is Hawaiian Holdings (HA).  I found the stock by sorting today's New High List for frequency in the last month, skipped over the stock that didn't have positive gains for the last week and month.  Lastly I used the Flipchart feature to review the charts.  Since the Trend Spotter signaled a buy on 10/28 the stock is up 25.71%.

It is a holding company of Hawaiian Airlines. Hawaiian Airlines is the largest airline headquartered in Hawaii. They are engaged primarily in the scheduled transportation of passengers, cargo and mail. Scheduled passenger service consists of daily service between Hawaii and Las Vegas, Nevada and the four key United States West Coast gateway cities of Los Angeles and San Francisco, California, Seattle, Washington and Portland, Oregon; daily service among the major islands of Hawaii; and bi-weekly service to Pago Pago, American Samoa, Papeete and Tahiti.

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John Williams-Massive Dollar Selloff in 2014-Game Over

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S&P At 2,200, 4% On The 10 Year, WTI Over $110 And Bitcoin At $0 – Byron Wien’s 2014 Predictions

zerohedge.com / by Tyler Durden on 01/06/2014 14:21 -0500
The predictions of Blackstone’s octogenarian Byron Wien (born in 1933) have been all over the place in the past 10 years, some correct, most wrong (with a recent hit rate of about 25%) – his 2013 year end S&P forecast was for 1300 – yet always entertaining. Which is the only value in the latest release of his 10 forecasts for 2014. Naturally, take all of these with a salt mine.
Byron’s Ten Surprises of 2014 are as follows:
  1. We experience a Dickensian market with the best of times and the worst of times. The worst comes first as geopolitical problems coupled with euphoric extremes lead to a sharp correction of more than 10%. The best then follows with a move to new highs as the Standard & Poor’s 500 approaches a 20% total return by year end (ZH: or, said otherwise, S&P 500 at 2200).
  2. The U.S. economy finally breaks out of its doldrums. Growth exceeds 3% and the unemployment rate moves toward 6%. Fed tapering proves to be a non-event.
  3. The strength of the U.S. economy relative to Europe and Japan allows the dollar to strengthen. It trades below $1.25 against the euro and buys 120 yen.
  4. Shinzo Abe is the only world leader who understands that Dick Cheney was right when he said that deficits don’t matter. He continues his aggressive fiscal and monetary expansion and the Nikkei 225 rises to 18,000 early in the year, but the increase in the sales tax, the aging population and declining work force finally begin to take their toll and the market suffers a sharp (20%) correction in the second half.
  5. China’s Third Plenum policies to rebalance the economy toward the consumer and away from a dependence on investment spending slow the growth rate to 6% in 2014. Chinese mainland traded equities have another disappointing year. The new leaders emphasize that their program is best for the country in the long run.
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Where Are Interest Rates Going?

As we enter 2014 this is definitely one of the big things on my radar. From where I’m sitting, it just seems that everyone is convinced that rates are going higher. And maybe they are. But when everyone is this sure of something, I really enjoy taking a closer look at the other side.
Today we’re looking at 10-year yields. I don’t want to get into a whole philosophical conversation about QE or Bernanke or Yellen. I can’t worry about any of that stuff. In my opinion, we need to look at how the market feels about all of that. You see, a lot of people say a lot of things; there’s a ton of noise out there, but price is the only truth that I feel comfortable enough to trust.
Rates are at a very critical level right now. Take a look at the sentiment data, I’ve been talking about it here over the last month. The consensus view is that rates rise. That makes me wonder what would happen if they don’t….(more)

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