Everyone wants a bargain, but some bargains can cost you. In fact, they can hoover away thousands of dollars in lost profits and years of your time… time spent waiting… and waiting… and waiting some more for these bargain stocks to finally realize their potential. Oh, and did I mention, that’s only IF they realize their potential, which is by no means guaranteed.
Dr. Bart DiLiddo, founder of VectorVest, writes about his own problems with P/E ratios and what he did to solve them.
The Major Indices began the week with a bang as investors cheered merger & acquisition activity and a better-than-expected German Business Climate report. The Dow ended the day 0.6% higher, the S&P 500 also closed 0.6% in the black, just shy of its January 15th record close and the Nasdaq ended 0.7% higher, a 13-and-a-half-year high.
GDP grew at an annual rate of 2.4% in the fourth quarter of 2013, slightly lower than estimated growth of 2.5%. Durable Goods Orders fell 1.0% on a monthly basis in January, whereas consensus pointed to a steeper drop of 1.5%. Ex-transportation, Durable Goods Orders rose 1.1% month-over-month in January, beating forecasts which pointed to a 0.3% decline.
Consumer Prices grew by 1.6% on an annualized basis in January, compared with the previous month’s annual rate of 1.5%. Meanwhile, Core CPI, which excludes food and energy, rose 1.6% annually in January. Producer Prices rose 1.2% year-over-year in January, while Core PPI grew 1.3%.
After being closed for President’s Day Monday, the Major Indexes began the trading week mixed on Tuesday as investors digested another round of downtrodden economic data and news that Actavis agreed to acquire Forest Laboratories. The Dow faltered 0.2%, led by poor results from Coca-Cola (KO). Meanwhile, the S&P 500 picked up a modest 0.1% and the Nasdaq rose 0.7%, its eighth straight winning session.
Stock prices extended gains to three consecutive days on Monday in relatively lackluster trading ahead of new Federal Reserve chief Janet Yellen’s first testimony to Congress. The Dow picked up a modest 0.05%, the S&P 500 rose 0.2% and the Nasdaq, the biggest winner for the day, gained 0.5%.
It’s somewhat alarming when a friend, one who has never had a passing thought about the stock market, asks me to show her how to buy “pot stocks.” I saw dollar signs glowing like neon lights in her pupils. Apparently, my friend’s co-worker was boasting to everyone in the office that her profits on a Cannabis stock she recently bought would end up paying for her kids to go to college. (I thought to myself, “Is she high?”)
The trading week began with the release of a weaker-than-expected manufacturing report which showed activity at an eight-month low, sparking economic fear in the hearts of investors. The Dow plunged 326 points, or 2.08%, its biggest loss in more than 7 months, while the S&P 500 plummeted 41 points, or 2.28%, and the Nasdaq faltered 107 points, or 2.61%
The trade deficit widened from $34.56 billion to $38.70 billion in December 2013.
The Market Services PMI rose 1.0 point to a level of 56.7 in January. The Market Manufacturing PMI fell to a three-month low in January, registering at a level of 53.7. The ISM Manufacturing PMI fell 5.7 points to a level of 51.3 in January, missing forecasts of modest dip to 56.0.
VectorVest is pleased to announce the release of “VectorVest OptionsPro,” a state of the art stock options platform, on Monday, February 10, 2014. This product, along with VectorVest 7, is designed to provide the ultimate experience in trading stock options, i.e., knowing when to trade, what to trade and how to trade for maximum profits.