Alternative energies will likely begin to show widespread acceptance in the near future. This trend offers an interesting opportunity for investments. Not only can you potentially tap into the “next big thing”, but you would also be supporting the efforts to make the environment in which we live a cleaner, healthier place to call home.
The transition to electronic forms of payments has been a boon to Visa (V) and MasterCard (MA), and debit cards now account for over half of all transactions and more than a quarter of revenues. But as the secular shift continues and security becomes more of a challenge, Visa is looking to beef up its fraud prevention tools.
Over the past few decades, the pharmaceutical industry has experienced a period of unprecedented growth. While this performance has been impressive, it also has many wondering if the market is nearing or has reached a peak. At present, the long-term outlook for drug stocks appears largely uncertain, in our view. Several factors are affecting investor perception including the newly passed healthcare legislation and upcoming patent expirations.
Since the introduction of modern mobile telephone technology, consumers have complained about, and fought against, what they consider to be excessive charges and fees billed by service providers (e.g., AT&T (T), Verizon Communications (VZ), Sprint Nextel (S)). In recent years, the Federal Communications Commission (FCC) has increased its focus on related customer billing and, lately, has paid much attention to consumer protection issues involving broadband speed. Cable (Cablevision (CVC), Comcast (CMCSK), Time Warner Cable (TWC)) and telecom companies want to widely introduce a tiered pricing system, which they believe would unclog networks and establish a fairer fee structure. FCC Chairman Julius Genachowski has been cautious about letting the companies have their way.
Value Line manages four 20-stock Model Portfolios. They are reviewed in each week’s Selection & Opinion. August was a challenge for each of the portfolios. Portfolios I, II, and III declined more than their common benchmark, the S&P 500 Index (adjusted for dividends), which fell 4.5% for the month. In contrast, the loss posted by Portfolio IV was narrower than its benchmark, the Mergent Dividend Achievers Index, which declined 2.7% in August.
China’s rapid growth in the last ten years has attracted plenty of investor interest. But investing in China is not easy for the non-expert, retail investor. A bewildering array of share classes and a considerable state ownership presence are only two of the issues with which investors have to contend. One way to invest in China without taking on too much risk and without having to be an expert in the region is to buy funds such as Matthews China Fund (MCHFX), China Fund, Inc. (CHN), or Guinness Atkinson China & Hong Kong (ICHKX).
A comparison of fast-food companies in the multi-brand and one-brand space reveals a few differences. The major distinction is the success of those in the single-brand realm to automate parts of their production process, which typically has been labor intensive. In fact, the successful assimilation of technology has given McDonald’s (MCD) an advantage. Also, the focus on a single concept has enabled companies to strengthen their brands.
Amid the recent recession, many companies hoarded cash in an effort to provide financial flexibility during the difficult times. Now though, a few industry leaders look to put some of that capital to work, bulking up their product platforms through acquisitions. Today, a pair of Dow 30 companies inked acquisitions, while the Genzyme (GENZ) talks have turned a little sour.
As technology evolves at a breakneck pace, the most definitive proving ground for new ideas has long been the media/communications industry. Indeed, for years, technological advances often were furthered by exposure to the various media and communications outlets. This allowed for the advancements to be seen by a greater percentage of the public. However, in recent years, it appears that the media has created a proverbial “monster”. It is apparent that the constant demand for new and more exciting ways to enjoy content and communicate has generated a genre of technological innovations that threaten to make traditional media obsolete. In fact, research shows that the latest generation of teenagers to ‘twenty-somethings’ (Generation Y) has widely shed ties to the old standard of print publishing, land-line telephones, compact discs, and even cable/satellite television. Hence, the dynamic has shifted to a climate where the onus is on media/communications outfits to keep up with the constantly changing mediums and platforms that consumers are choosing to experience content.
Quarterly filings with the Securities and Exchange Commission by some of the larger U.S.-based banks recently have raised the possibility that the rating agencies may lower the credit ratings of some banks as the result of provisions in the Dodd-Frank financial reform bill signed into law in July. Would bank credit rating downgrades hurt bank stocks?
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The Winds Of Change Are Blowing Across U.S. Energy Sources
Alternative energies will likely begin to show widespread acceptance in the near future. This trend offers an interesting opportunity for investments. Not only can you potentially tap into the “next big thing”, but you would also be supporting the efforts to make the environment in which we live a cleaner, healthier place to call home.
With E-Payments Growing, Visa Beefs Up Its Security and Fraud Prevention
The transition to electronic forms of payments has been a boon to Visa (V) and MasterCard (MA), and debit cards now account for over half of all transactions and more than a quarter of revenues. But as the secular shift continues and security becomes more of a challenge, Visa is looking to beef up its fraud prevention tools.
Room for Growth in Drug Stocks?
Over the past few decades, the pharmaceutical industry has experienced a period of unprecedented growth. While this performance has been impressive, it also has many wondering if the market is nearing or has reached a peak. At present, the long-term outlook for drug stocks appears largely uncertain, in our view. Several factors are affecting investor perception including the newly passed healthcare legislation and upcoming patent expirations.
Tiered Pricing: Good for Telecom and Cable Stocks?
Since the introduction of modern mobile telephone technology, consumers have complained about, and fought against, what they consider to be excessive charges and fees billed by service providers (e.g., AT&T (T), Verizon Communications (VZ), Sprint Nextel (S)). In recent years, the Federal Communications Commission (FCC) has increased its focus on related customer billing and, lately, has paid much attention to consumer protection issues involving broadband speed. Cable (Cablevision (CVC), Comcast (CMCSK), Time Warner Cable (TWC)) and telecom companies want to widely introduce a tiered pricing system, which they believe would unclog networks and establish a fairer fee structure. FCC Chairman Julius Genachowski has been cautious about letting the companies have their way.
Performance of the Model Portfolios: August, 2010
Value Line manages four 20-stock Model Portfolios. They are reviewed in each week’s Selection & Opinion. August was a challenge for each of the portfolios. Portfolios I, II, and III declined more than their common benchmark, the S&P 500 Index (adjusted for dividends), which fell 4.5% for the month. In contrast, the loss posted by Portfolio IV was narrower than its benchmark, the Mergent Dividend Achievers Index, which declined 2.7% in August.
Investing in China for Non-Experts
China’s rapid growth in the last ten years has attracted plenty of investor interest. But investing in China is not easy for the non-expert, retail investor. A bewildering array of share classes and a considerable state ownership presence are only two of the issues with which investors have to contend. One way to invest in China without taking on too much risk and without having to be an expert in the region is to buy funds such as Matthews China Fund (MCHFX), China Fund, Inc. (CHN), or Guinness Atkinson China & Hong Kong (ICHKX).
Fine Points of the Fast Food Sector.
A comparison of fast-food companies in the multi-brand and one-brand space reveals a few differences. The major distinction is the success of those in the single-brand realm to automate parts of their production process, which typically has been labor intensive. In fact, the successful assimilation of technology has given McDonald’s (MCD) an advantage. Also, the focus on a single concept has enabled companies to strengthen their brands.
Blue Chip Acquisitions
Amid the recent recession, many companies hoarded cash in an effort to provide financial flexibility during the difficult times. Now though, a few industry leaders look to put some of that capital to work, bulking up their product platforms through acquisitions. Today, a pair of Dow 30 companies inked acquisitions, while the Genzyme (GENZ) talks have turned a little sour.
The Demise of Traditional Media Platforms
As technology evolves at a breakneck pace, the most definitive proving ground for new ideas has long been the media/communications industry. Indeed, for years, technological advances often were furthered by exposure to the various media and communications outlets. This allowed for the advancements to be seen by a greater percentage of the public. However, in recent years, it appears that the media has created a proverbial “monster”. It is apparent that the constant demand for new and more exciting ways to enjoy content and communicate has generated a genre of technological innovations that threaten to make traditional media obsolete. In fact, research shows that the latest generation of teenagers to ‘twenty-somethings’ (Generation Y) has widely shed ties to the old standard of print publishing, land-line telephones, compact discs, and even cable/satellite television. Hence, the dynamic has shifted to a climate where the onus is on media/communications outfits to keep up with the constantly changing mediums and platforms that consumers are choosing to experience content.
Due to Changes in Credit Ratings, are Bank Stocks a Good Investment?
Quarterly filings with the Securities and Exchange Commission by some of the larger U.S.-based banks recently have raised the possibility that the rating agencies may lower the credit ratings of some banks as the result of provisions in the Dodd-Frank financial reform bill signed into law in July. Would bank credit rating downgrades hurt bank stocks?