Stock Trading

By Patricia Oey Last week, WisdomTree disclosed the rebalanced portfolio of the 5-star rated WisdomTree Emerging Markets Equity Income (DEM), which will be implemented following the close of trading on Friday, June 21. DEM's dividend-weighting strategy has resulted in an annualized 450-basis-point outperformance relative to the cap-weighted MSCI Emerging Markets Index over the past five years to May 2013. Part of this performance was due to DEM's quality tilt, as demonstrated by its lower volatility. During the 2008 global financial crisis, DEM's total drawdown was 46.7% versus the MSCI EM Index's decline of 58.8%. Earlier this year, in my article "Is Our Favorite Emerging-Markets Equity ETF Getting Riskier?" I noted that following DEM's June 2012 rebalance, its portfolio had changed significantly. Most notably, Russian stocks had risen to 13% of the portfolio, from an average of 2% over the prior three years. Chinese stocks also jumped--to 16%

My Dividend Investment Project portfolio holds five Business Development Companies that I watch closely. With the first half nearing its end, I'm re-examining each BDC with the intention of adjusting holdings where analysis suggests action.What's a BDC? To quote Investopedia: (Business Development Companies are) "created to help grow small companies in the initial stages of their development. BDCs are very similar to venture capital funds. Many BDCs are set up much like closed-end investment funds and are actually public companies that are listed on the NYSE, AMEX and Nasdaq. To qualify as a BDC, companies must be registered in compliance with Section 54 of the Investment Company Act of 1940. A major difference between a BDC and a venture capital fund is that BDCs allow smaller, non-accredited investors to invest in startup companies. Some of the reasons why BDCs have become popular is that they provide permanent

For those of you who have been following the Netflix (NFLX) story, you know that things have been spectacular. The stock has risen ~163% since last June and ~137.2% year to date. On Monday, the company inked one of its largest deals ever with DreamWorks Animation (DWA) on its subscription video streaming website. The terms of the deal were not disclosed; however, the deal will allow NFLX to offer over 300 hours of new programming from DWA for a multi-year period. Today I will focus on the current valuation and future prospects of NFLX, and whether the recent spike in the stock price warrants a buying opportunity for investors or whether it is best for investors to stay away from a potential "value trap." DreamWorks Deal -- The Opportunity Neither companies provided many details on which shows will be produced under the agreement; however, analysts are expecting new shows from

The Brent/WTI crude oil spread, at current levels, is especially vulnerable to headline risk. While fundamentals support continued spread narrowing, the risk is for a sudden and potentially violent spread widening from Iranian saber-rattling or an actual preemptive move against Iranian nuclear facilities.The above chart illustrates favorable supply versus demand dynamics in the crude oil markets and an apparent relaxation of fear of supply disruptions. Is the spread about to return to the historic range +/- $5? Or is the market reflecting an uncomfortable level of complacency concerning the likelihood of supply disruptions from political unrest in the Middle East?The political crisis in Syria continues to occupy the front page of newspapers with unending stories of atrocities inflicted upon the civilian population. Indeed, the attention focused on Syria takes attention away from Iran, as the regime thumbs its nose at the United Nations, concerned Arab neighbors, Israel, as

At the moment, crude oil seems to be acting as a free agent instead of in concert with the commodity complex that would play a role in signaling the effects (or lack thereof) of the inflation to date.  The target off this formation, if it holds, is 110 or so.  But as noted in a [...]

Today (Tuesday, June 18th) Nokia's (NOK) share price jumped above $4.00 after Huawei showed some interest in acquiring the company. While as a Nokia bull, I welcome the company's shares appreciating so much within a day, I don't think Huawei can actually buy Nokia.I am not talking about it from a financial standpoint either. Nokia's current market value of $14 billion isn't that much when we consider that the company's cash reserves total a little over $13 billion (but just short of $14 billion). According to some calculations, Nokia's patent portfolio alone might be worth nearly $10 billion. Given the company's cheap valuation, most large companies could easily acquire it. However, one would have to look beyond financials to see the real picture.First, Nokia has a mighty "big brother" whose name is Microsoft (MSFT). If anyone were to buy Nokia, it would be none other than

Reliable data from China may often prove elusive to investors, but one thing they can count on is urbanization. Despite decades of alternating policies regarding land use, the Chinese government has an ultimate goal of moving 250 million more rural dwellers into urban areas, with a resulting 70% of the population living in cities and towns by 2025.Many companies stand to benefit from a larger urban population in China, from retailers and restaurants to property managers and utilities. We decided to search for Chinese companies traded on US exchanges that present positive investment opportunities based on the Chinese government's emphasis on urbanization.First we screened our universe for stocks that appear undervalued - looking for companies that demonstrate high ratios of levered free cash flow/enterprise value, above 10%, an indication that they are undervalued relative to their cash flows.Levered free cash flow is the free cash flow

In the wake of a substantial recall from General Motors (NYSE:GM) for 480,000 of its SUVs, Honda’s (NYSE:HMC) recall of its S2000 and Acura RSX models for brake problems, and Chrysler’s (FIATY.PK) recent recall of 1.56 million Jeep models, it seems that Tesla (NASDAQ:TSLA) was feeling left out. Well, the EV maker should feel left out no longer, as it too has issued a recall of its own on the Model S sedan. One advantage of operating a smaller operation is the smaller scale of damage control when something goes wrong. While Jeep has a recall out on over 1.5 million vehicles, and GM has a recall out for nearly half a million — just for one of the outstanding recalls — Tesla has issued the code for just 800 of its Model S sedans, built between May 10th and June 8th of this year. NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! While one would expect the recall to be for some fundamental flaw in the car’s driving ability — after all, the car is really the first of its kind — the component at fault is a weakened mounting bracket for the left-hand latch of the rear seats. Elon Musk, chief executive officer and chairman of Tesla, said that the faulty component “reduces our confidence” that the back of the left-hand seat would be protected and remain intact if the driver were to be involved in a road accident. So far, no injuries or complaints have been filed as a result of the problem. “As designed, the striker bracket is both bonded and welded to the vehicle body, either one of which would be sufficient by itself,” Musk said in a company blog post, highlighting that he does not believe the bracket could pose a significant risk, as it is still firmly attached to the car. However, Tesla’s unique position as a relative newcomer to the automotive industry means the company has a lot to prove as it seeks to lure buyers from more established companies. Therefore, by conducting the voluntary recall, Tesla is avoiding a situation that Ford (NYSE:F) found itself in years ago — weighing the cost of the fix with the cost of letting it slide. “This is consistent with the primary design goal of the Model S, which is first and foremost to maximize safety.” Musk wrote. “However, we discovered that, due to body side alignment adjustments in the factory, the bonded section of the joint was compromised and the welded section of the joint was weakened in some cars.” NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! Tesla will go about reinforcing the bracket on the affected cars. Models still in the factory have already been taken car of, so only the cars delivered between the aforementioned dates are affected. Don’t Miss: Cadillac From the Future Pays Jay Leno a Visit Read the original article from Wall St. Cheat Sheet

Apple (NASDAQ:AAPL) CEO Tim Cook recently received a rare affirmation of his leadership abilities from an analyst at a major financial services firm. Although he thinks Apple “stock may never again be the ‘rocket ship’ it once was,” UBS analyst Steve Milunovich calls Cook “the right guy” to lead Apple in a note to investors via Barron’s. Is Apple now a once-in-a-decade buying opportunity? Click here to get your 24-page Ultimate Cheat Sheet to Apple’s Stock now! Although most analysts seem to believe that “most of Apple’s success can be attributed to the unique capabilities of Steve Jobs,” Milunovich notes that Cook has skillfully handled many of the recent challenges that the Cupertino-based company has faced, including “challenges of worker conditions, warranty issues in China, capital return demands by investors, and tax questions before Congress.” Milunovich also points out that there are three key reasons to give Cook the “benefit of the doubt” when it comes to his abilities as a CEO. First, he notes that Cook was personally endorsed by Apple’s vaunted co-founder and former CEO Steve Jobs. Ironically, the same critics that like to point out that Cook is not as skilled as Jobs fail to remember that Cook was also approved by Jobs for the position of CEO. Secondly, Milunovich notes that “Cook hasn’t been on the job long enough for us to make an informed assessment.” Whereas Jobs had decades to build his reputation, Cook has only been the CEO of Apple for less than two years. Lastly, the analyst notes that Jobs dealt with very different issues during his tenure than the problems that Cook must deal with today. Milunovich believes Cook “might be the kind of CEO needed for the contentious environment Apple enters as an industry leader for the first time in its history.” NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! Milunovich reiterates a Buy rating on Apple stock and a $500 price target. Here’s how Apple traded yesterday. Follow Nathanael on Twitter (@ArnoldEtan_WSCS) Don’t Miss: Can the iWatch Be More Than a Hobby For Apple? Read the original article from Wall St. Cheat Sheet

Over the last week, municipal bonds have been back in the headlines as the city of Detroit, Michigan has declared that it will be unable to make payments on a portion of its debt. Their restructuring proposal has asked bond holders to be repaid less than 10 cents on the dollar. While defaults on muni bonds are rare, there have been several high profile instances of insolvent municipalities or debt restructuring demands over the last several years that have shaken investors' confidence in these securities. In addition, the recent rise in interest rates has caught many fixed-income holders off guard as the price of their bonds has receded. So is it time to throw in the towel on muni bonds or ride out the volatility? A quick look at a chart of the iShares National AMT-Free Muni Bond ETF (MUB) shows just how volatile the environment has been for