Is there hope for a profitable RadioShack?

Posted on by The INO.com Team

With James Gooch, the CEO of RadioShack stepping down, there are serious questions about the future of the former electronic retail powerhouse.

With mounting losses resulting from a change in consumer needs and decreasing market share to online retailers, is it still possible for brick and mortar stores to be successful?

The factors behind the decline in stock price of RadioShack are obvious. Many people have all of the electronic devices they need in their pocket, thanks to their smartphone. Desktop PCs and other items that were big-ticket items in the past have been consolidated into smaller phones and tablet devices, which are more competitively priced and have much smaller profit margins for retailers. Continue reading "Is there hope for a profitable RadioShack?" →

Gold Will Break Previous High in Near Term: Brien Lundin

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The Gold Report: We just had a third round of bond buying in quantitative easing (QE). Will QE3 help the economy?

Brien Lundin: It will not help the economy, but it will help Wall Street. It will help elevate the stock market, including precious metals and resource stock prices. Although that was not the Fed's stated goal, it will be the ultimate result.

As I have written lately, we now have "QE as far as the eye can see." There is no end to it. The Federal Reserve will use QE until it works. If it does not work, the Fed will ratchet up the program and print more money until it does work.

The Fed is using the brute force of money creation to eliminate the U.S. unemployment problem, but that is not a foundation upon which a sustainable recovery can be built. At the same time that the Fed is trying to build a towering economy, it is eroding the very foundation of that economy by issuing vast pools of liquidity. Continue reading "Gold Will Break Previous High in Near Term: Brien Lundin" →

Stocks fall on European unrest

Posted on by The INO.com Team

Stocks saw considerable weakness during trading on Wednesday, adding to the steep losses posted in the previous session. Lingering concerns about the financial situation in Europe continued to weigh on the markets along with a negative reaction to U.S. housing data.

Housing stocks moved sharply lower on the heels of the new home sales report, dragging the Philadelphia Housing Sector Index down by 3 percent. With the loss, the index pulled back further off the nearly five-year closing high it set last Friday.

M/I Homes (MHO) and Meritage Homes (MTH) posted particularly steep losses within the housing sector, tumbling by 8 percent and 7.3 percent, respectively.

Oil service stocks also moved sharply lower over the course of the trading day, dragging the Philadelphia Oil Service Index down by 2 percent. The weakness in the sector came as the price of crude oil extended a recent downward move, closing below $90 a barrel. Continue reading "Stocks fall on European unrest" →

MarketClub TV for 9/26/12: Forget the iPhone 5 - I'm not upgrading!

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 26th of September.

Apple, Apple, Apple... by now I'm sure you've heard about the iPhone5. Yes, it is a wonderful phone, but I for one will not be upgrading to the iPhone5. I know it's faster, it's thinner, it's bigger, it has an App to leap over tall buildings. But what drives the iPhone is the software. The new iOS6 operating system, which I downloaded to my iPhone on Saturday, makes me a happy camper, plus I don't want to carry something around in my pocket that is bigger. I don't see any need to upgrade to the new iPhone5, and I think I'm not alone. After the initial surge, I think sales will drop off as others may share my same feeling. I was in my local Apple store this past weekend and the store was fairly busy, but no more than normal.

Riots in Spain and Greece today prove nobody wants to take a haircut with the new austerity measures that need to be implemented to receive the benefits of the European bailout.

The big question that concerns me, is the US next? With record gun sales and a persistent unemployment problem, can social unrest be that far away? Charles Plosser, the president of the Philadelphia Fed Bank, said that he did not think that QE3 or QE Infinity is going to help the economy anytime soon. Not exactly what you want to hear from a member of the Fed, and certainly not a ringing endorsement of the Fed's policy to just chuck more money at the economy, hoping something will work.

The reality is, the strategy that the Fed has embarked on has never worked over any length of time. Only businesses, not the Government, can create lasting jobs in America.

Okay, time to get off my rant mobile.

Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology.

Click Here to view today's video

There are Just Two Key Rules for Avoiding Stock Bubbles

Posted on by The INO.com Team

By Dan Steinhart, Casey Research

Warren Buffet's #1 rule of investing is "Don't lose money."

It's good advice, though not to be taken literally; all investors lose on occasion. Still, it is a worthy goal for which to aspire. And to have any chance of reaching it, you must learn how identify and avoid bubbles.

Which is easier said than done. We've all seen that seductive sector that just keeps going up…and up… and up… coaxing in more and more unwitting investors along the way. At its peak, even the most strident skeptics concede that sky-high prices are the new industry norm.

And then…POP! Continue reading "There are Just Two Key Rules for Avoiding Stock Bubbles" →