Wednesday, November 12, 2014

Predictors of ’29 Crash See 65% Chance of 2015 Recession

In 1929, a businessman and economist by the name of Jerome Levy didn't like what he saw in his analysis of corporate profits. He sold his stocks before the October crash.
Almost eight decades later, the consultancy company that bears his name declared "the next recession will be caused by the deflating housing bubble." By February 2007, it predicted problems in the subprime-mortgage market would spread "to virtually all financial markets." In October 2007, it saw imminent recession -- the slump began two months later. (more)

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Facebook, Inc. Stock: Buy, Sell, or Hold?

Up 38% year-to-date compared to the S&P 500's gain of 10% during the same period, Facebook stock has been one of this year's best performers among large and megacap stocks. And with a $210 market capitalization, the social network is officially one of the biggest companies in tech. But after Facebook's sudden thrust into tech's biggest names, can investors expect much from the stock from here?

FB Chart
What is Facebook stock worth?

Pegging some sort of intrinsic value estimate on a business growing as rapidly as Facebook is extraordinarily difficult. To see just how hard it is, you can look at the rollercoaster general consensus the market has had on the company's value by looking at the stock's volatility since it went public. (more)

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Using the Finviz Stock Screener to Find Growth Stocks

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These Two Commodity Stocks are Dirt Cheap

The $20-billion potash market has been under a dark cloud since last July.
That’s when the world’s largest potash producer Uralkali ADR (URAYY) left the Belarusian Potash Corporation export cartel.
This cartel and North America’s Canpotex cartel — comprised of the Potash Corporation of Saskatchewan (POT), Mosaic (MOS), and Agrium (AGU) — once controlled two-thirds of the global potash supply.  (more)

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Transocean (NYSE: RIG) Could Pop 30% in the Next 6 Weeks

Old Wall Street wisdom tells us that stocks that sport low prices are not necessarily cheap.
Offshore oil rig operator Transocean (NYSE: RIG) seems to be on sale after falling roughly 40% year to date and more than 80% from its all-time high set in 2008. But the stock's long-term trend is still undeniably to the downside. Even its high dividend yield, at 10% currently, while enticing, cannot make up for the losses incurred already.
But something very interesting happened on Friday. (more)

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