Category: INO.com Contributors

This Grocery Stock Could Be A Steal At This Price

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


It's been a wild ride for Wall Street this past week as the broader indexes collapsed for several days before rebounding sharply back to the upside. The short correction was mostly blamed on the fallout from the Chinese stock market crash which triggered panicked selling across all assets and dragged down every segment of the stock market. But panic selling can be a great buying opportunity for value shoppers.

Sometimes a perfect storm can take a stock way down below its fair value. An earnings miss combined with a macroeconomic crisis can amplify losses well beyond a reasonable range. However, if the long-term fundamentals hold strong, investors can pick up a great value buy at a discounted price.

A solid company in the wrong place at the wrong time

The Fresh Market (TFM) is a grocery store with 168 stores in 27 states known for its organic foods selection. The stock has suffered mightily this year – down roughly 50% year-to-date. The company's recent earnings miss coupled with the recent events in the global financial markets have contributed to the stock's weakness. Continue reading "This Grocery Stock Could Be A Steal At This Price" →

Navigating Volatile Markets Via Dividend Investing - Part 1

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

Dividend investing doesn't offer the most exciting means in which to invest these days when compared to stocks such as Netflix, Facebook or Amazon or sectors such as the biotechnology sector. Despite this lack of excitement, when considering the attributes this dividend space offers, such as decreased volatility, healthy yields, moderate risk exposure and a hedge against downside risk, it may be an ideal synergy for any long portfolio. This is especially true as the markets have been highly volatile due to weakness in China, an imminent fed rate hike and persistently low oil prices. Historically, companies that have an established track record of not only paying dividends but growing their dividends over the long-term have generally outperformed the their respective index with decreased volatility. I'll be utilizing The Vanguard High Dividend Yield ETF (ticker symbol: VYM) as a proxy for a high-quality cohort of large-cap centric dividend paying stocks. This type of dividend portfolio may prove to be a meaningful piece of an overall growth retirement strategy while providing a reasonable level of income and mitigating risk. The allocation within VYM offers a broad dividend paying portfolio and access to all sectors throughout the large-cap space without sacrificing diversification and in turn can generate sustained long-term growth and income while navigating volatile markets.

High-Level Overview

• The dividend space offers many long attributes: decreased volatility, healthy yields, moderate risk and a hedge against downside market swings.

• Dividend investing often gives rise to share buybacks, rendering an effective way to drive shareholder value via returning capital by repurchasing stock.

• VYM has outperformed the S&P 500 in past two down markets in 2008 and 2011 by 4.9% and 8.4%, respectively.

• VYM has more than doubled its dividend payouts over the past 5 years.

Mitigating risk and volatility with a high-quality cohort of dividend paying stocks

VYM is composed of high yielding dividend-paying large-cap companies and weighted by market capitalization. This domestically focused dividend paying ETF provides access to some of the biggest names across many different sectors that provide a healthy dividend yield, equity appreciation, diversification and decreased volatility. Continue reading "Navigating Volatile Markets Via Dividend Investing - Part 1" →

Gold Ratios: Gold Is A Top Killer When You Need Safety

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Gold/Silver Ratio: "Shines Bright Like A Diamond."

Chart 1: Gold/Silver Ratio Monthly

FOREX:XAUUSDO/XAGUSDO
Chart courtesy of TradingView.com

Last December I had written my first post with quite an ambitious target for this ratio at the 109oz level as a possible outcome of a very rare diamond reversal pattern (highlighted in blue lines and the target is highlighted in blue horizontal dashed line). At that time the ratio was at the 72oz level and it has advanced 11% now to the 80oz level. Continue reading "Gold Ratios: Gold Is A Top Killer When You Need Safety" →

3 ETF's To Buy If You Believe Oil Is Heading Higher

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


In August of 2014 West Texas Intermediate Crude was trading around the $98 range. That was lower than the $105 range it traded in during June of 2014. Today it is trading below $40 a barrel and as oil continues to fall to new multi-year lows, some investors are wondering when the commodity will stop declining and begin once again moving higher. I recently published a piece pointing out a few ways investors can profit from oil continuing to decline. But, if you are like me, believing that the price of oil will eventually move higher from today's levels there are a few different ETF's you can buy to play a move higher in oil.

But first, let's discuss why I believe oil will move higher, sooner rather than later. Currently, West Texas Intermediate crude is trading below $40 a barrel and at that price most, of the oil producers are losing money. The average cost per barrel in the Canadian Oil Sands is somewhere in-between $50-$100 a barrel. In the North Dakota Bakken Shale, the average is around $40-$70 while in Texas it is somewhere around $40-$80 a barrel. In all of North America, only Alaska has a cost per barrel below $40. Continue reading "3 ETF's To Buy If You Believe Oil Is Heading Higher" →

Should Energy Stocks Be On Your Bargain-Hunting List?

Posted on by Adam Feik

Adam Feik - INO.com Contributor - Energies


Everyone's bargain list just got a LOT longer. Energy stocks can finally stop feeling so lonely. They have plenty of company now.

If you've (hopefully) followed Adam Hewison's posts, he illustrated on Monday that it's not yet safe to start acting on your bargain list, as far as stocks are concerned. The broad-market long-term trade triangles are (obviously) flashing red right now, and Fibonacci indicators don't show support for this falling knife until much lower levels.

Adam specifically touched on crude oil in his Tuesday post, saying its RSI is very oversold and flat, and combined with a falling market, one would expect a bottoming out at some point. "Not to say it can't go lower," he added.

So even though your bargain list might be just that – a "watch list" – let's begin looking at whether to even consider energy.

A brief look back

Remember $108 oil, back in the summer of 2014? WTI crude has already traded as low as $38.00 this week, and looks as though it's unlikely to return even to the $60s – in a sustained way – for perhaps many years. In fact, a dip into the $20s seems at least equally likely at this point, given the supply glut combined with the newfound volatility and fear across all markets.

So oil has shed about 65% so far, and has generally held below $60 for all but 14 days since falling below that level 9 months ago. And, of course, oil's plunge has taken the value of most oil companies with it. Feast your eyes: Continue reading "Should Energy Stocks Be On Your Bargain-Hunting List?" →