Author: Daniel Cross

This 'Hated' Stock Might Be The Right Fit For Your Portfolio

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


There's a popular myth on Wall Street about short sellers being the smartest guys in the room. After all, stocks, in general, do tend to appreciate over time, but picking stocks that fall requires a bit more homework and skill. But short activity in a stock isn't always a good thing.

When enough short sellers team up on a stock and it happens to post better than expected results, they either bail out at the first opportunity or run the risk of getting caught in a short squeeze. If the stock appreciates too much too fast, they'll get called out of their positions creating an event that turns into massive buying on an already hot stock that can cause a quick spike in value.

For one stock, a slew of bad news seemed like the ideal playground for initiating a short position. Continue reading "This 'Hated' Stock Might Be The Right Fit For Your Portfolio" →

An Unlikely Hero For Your Portfolio

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


The markets have been anything but predictable just a few weeks into 2016 and investors are wondering if we're on the verge of a major bearish reversal or it's a temporary correction. Oil seems to go lower and lower despite with no sign of stopping anytime soon while the economy is still reeling from the loss of Chinese demand and the impact of the first Federal Reserve rate hike. For investors, there's no better time to start getting defensive.

When uncertainty reigns in financial markets, certain sectors become safe havens. Companies that offer products that are used regardless of the state of the economy like healthcare and consumer staples tend to outperform during these times. These types of stocks generally carry a dividend yield as well which helps protect investors from downside movements.

The consumer staples sector is particularly attractive in the very beginning of a possible bear market because it's historically provided relatively high returns with low volatility. While most investors think of this sector as “boring” filled with plain vanilla stocks and companies, it's actually one of the highest returning sectors in the market regardless of economic direction.

Annualized returns by sector from 1962 to 2015 revealed that consumer staples generated gains of 12.9% – trailing just slightly behind healthcare. From a volatility standpoint, consumer staples had the second lowest with utilities being the least volatile. Continue reading "An Unlikely Hero For Your Portfolio" →

This Stock Could Be The Right Flavor For Your Portfolio This Year

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


After a disappointing 2015 for the stock market in general with the S&P 500 ending basically flat, investors will need to exercise extra care when selecting solid companies for this year. One way to make sure your stock picks are high quality is to follow those that performed well in an otherwise apathetic market.

When macroeconomic fundamentals aren't giving off a positive vibe, investors need to focus on microeconomics – individual companies and their strengths. Certain sectors of the market actually enjoyed a very successful year last year but got overshadowed by the malaise seen in the markets as a whole. Continue reading "This Stock Could Be The Right Flavor For Your Portfolio This Year" →

A Deep Value Play Investors Shouldn't Overlook

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


The Fed might have finally raised rates this month, but it isn't a magic spell that automatically means that the global economy is strong. Oil is once again the leader of a sudden an aggressive bearish sentiment on Wall Street and stocks are suffering as a result.

The state of the global economy going into 2016 is still in question with energy markets yet again being the biggest concern for investors. The slowdown hasn't been kind to sectors like manufacturing either with many companies closing their doors or merging with other businesses in order to stay afloat. Those that have survived though have come out the other side sleeker, stronger, and have fewer competitors. Continue reading "A Deep Value Play Investors Shouldn't Overlook" →

Give Your Portfolio A Holiday Treat With This Value Stock

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Judging a company by its stock price can often lead investors astray. Sometimes a single bad event can drag down a stock's price while leaving its long-term growth potential fully intact. It's these types of opportunities that value investors love to pounce on.

As we head into the holiday season, investor sentiment is mixed when it comes to how consumers will spend. On the positive side, US GDP growth for the 3rd quarter was revised higher to 2.1% while unemployment fell to just 5%. However, consumer spending inched just 0.1% higher in October – less than expected.

Sales expectations for the holiday season appear to be optimistic. FedEx released an estimate earlier this week that it is on track to handle over 317 million packages between Black Friday and Christmas – record numbers and an increase of 12.4% from last year. Online sales are also expected to rise this year between 6% and 8% according to a recent National Retail Federation (NRF) survey. Continue reading "Give Your Portfolio A Holiday Treat With This Value Stock" →