Author: Daniel Cross

This Health Care Play Could Help Protect Your Portfolio

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


The markets have been behaving badly over the past several weeks posting gains and losses of more than 100 basis points on several occasions. The indexes have shed about 3% just this week as investors scramble to find a sense of direction amidst a market where volatility reigns supreme. With so much uncertainty in stocks right now, it might be a good time to consider adding a defensive play to your portfolio.

As the economy continues to struggle, we could be headed towards a recession. It's a good time to reevaluate your holdings and think about adding something defensive into the mix. Certain sectors of the stock market tend to outperform when the overall economy contracts and picking up a solid, dividend paying health care stock could deliver the kind of defensive results your portfolio needs. Continue reading "This Health Care Play Could Help Protect Your Portfolio" →

This Grocery Stock Could Be A Steal At This Price

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


It's been a wild ride for Wall Street this past week as the broader indexes collapsed for several days before rebounding sharply back to the upside. The short correction was mostly blamed on the fallout from the Chinese stock market crash which triggered panicked selling across all assets and dragged down every segment of the stock market. But panic selling can be a great buying opportunity for value shoppers.

Sometimes a perfect storm can take a stock way down below its fair value. An earnings miss combined with a macroeconomic crisis can amplify losses well beyond a reasonable range. However, if the long-term fundamentals hold strong, investors can pick up a great value buy at a discounted price.

A solid company in the wrong place at the wrong time

The Fresh Market (TFM) is a grocery store with 168 stores in 27 states known for its organic foods selection. The stock has suffered mightily this year – down roughly 50% year-to-date. The company's recent earnings miss coupled with the recent events in the global financial markets have contributed to the stock's weakness. Continue reading "This Grocery Stock Could Be A Steal At This Price" →

Find Winners On Down Days In The Market

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


When the broader stock averages all fall, savvy investors can find winning companies by watching for stocks that show a gain when all others show a loss.

Concern over the state of the global economy sent markets plunging on Friday with the S&P 500 shedding 3.19%, the Dow losing 3.12% and the NASDAQ dropping 3.52%. Stocks like Valero Energy and Ross Stores fell over 9% and further corrective activity is expected to follow next week.

But not all stocks are facing negative pressure. One company is the growing data storage field showed promise and lifted expectations following a surprise earnings beat that helped the stock gain 8.95% on a day where most others fell. Strength in a difficult market environment is a good sign of a solid company and could provide a safe haven for investors looking for bullish plays right now. Continue reading "Find Winners On Down Days In The Market" →

This High-Yield Stock Will Ensure Steady Profits In Your Portfolio

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


There's a good reason that investors love high yielding dividend stocks. Not only does a dividend help buffer against downside risk, it also provides a steady base of returns over time that compounded, can add up to higher growth than you might expect.

Usually investors think of dividend paying stocks as large behemoths that simply don't have the ability to grow like it's smaller, younger competitors. It's a myth that's led many investors away from solid opportunities. These large entities might grow at a slower rate than you want, but when you factor in the dividends and the small downside risk these companies tend to have, you could find an investment that matches any high-risk small cap growth stock without having to expose yourself to unnecessary risk.

For a good example, all we need to do is look at Johnson & Johnson's (JNJ) stock.

NYSE:JNJ
Chart courtesy of StockCharts.com

If you bought 100 shares 10 years ago and reinvested all dividends, your holdings would have grown nearly 140%. And if you take a look at it's performance over that time, you'll see it's a very low-risk stock that was easily able to weather the 2008 financial crisis essentially making it a growth stock without the high growth risk. Continue reading "This High-Yield Stock Will Ensure Steady Profits In Your Portfolio" →

A Consumer Goods Stock That Feeds Any Investors Appetite

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


A missed quarter is often an opportunity for value investors who know how look to the future rather than the short term. A temporary stock hit can mean getting a discount on a company that could turn around and post out-sized profits down the road.

For a food production company, weakness can come from a number of sources such as higher livestock costs, grain costs or import costs. However, one fairly steady constant is the demand for food itself. Rather than being subject to supply and demand curves or the whims of the business economic cycle, a food producer will always have a solid customer base that's always growing as the global population rises. Regardless of the state of the economy, food will always be in demand making it a solid investment choice over the long run. Continue reading "A Consumer Goods Stock That Feeds Any Investors Appetite" →