Tag: daniel cross

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" →

Pick Up This Metal Fabricator Now That It's Bottomed

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Certain stock sectors tend to underperform others as part of the business cycle. Investors have known about this phenomenon for decades and cyclical industries like industrial goods have a well-established track record of ups and downs. Occasionally, these stocks find themselves at the bottom of their cyclical curve and suddenly have nothing but bad news priced into the stock. That can leave them deeply undervalued with a lot more upside potential than downside.

Industrial manufacturing production has fallen this year with projected growth of just 2.5%, partially due to the slow start in the first quarter thanks to adverse winter weather conditions. However, with the economy posting improving data, those figures could be revised upwards as the year progresses. With the lower expectations already priced into the manufacturing industry, stocks look to be at tremendously discounted prices. Continue reading "Pick Up This Metal Fabricator Now That It's Bottomed" →

This Specialty Retailer Has Been Quietly Beating The Market All Year

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Much like actors and actresses in Hollywood, certain stocks seem to dominate the headlines regardless of whether it's good or bad news. Meanwhile, less known names are outperforming their superstar counterparts yet continue to operate in relative obscurity.

Value investors love finding these stealthy bullish stocks. The less known it is, the more likely it is that it's been undervalued.

A disruptor that's defying gravity

Outerwall (OUTR) is a $1.55 billion specialty retailer that has an interesting story to tell to investors. The company is known for its brand name Redbox and Coinstar machines and along with its competitor Netflix (NFLX), is responsible for revolutionizing the way consumers rent movies and watch television. Outerwall has more than 66,000 kiosks across the U.S., Canada, Ireland and the U.K.

In the past year, the stock has gained nearly 54% and has done well so far this year as well – up 12.5%.

NASDAQ:OUTR
Chart courtesy of StockCharts.com

Taking a closer look at the chart, we can see that the 50-day moving average has been above the 200-day all year long and now appears to be pulling away at a rapid rate. This momentum is evidenced by its MACD, which indicates a strong upward trend in the stock right now. Continue reading "This Specialty Retailer Has Been Quietly Beating The Market All Year" →

Take Advantage of the Volatility in Stocks with This Gold Play

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


The recent Greek crisis and Chinese stock market crash has injected high volatility back into the financial markets and dragged down the broader averages over the past week or so. Before you hit the panic button and start selling though, this news isn't necessarily a bad thing.

There are two big factors working for savvy investors right now. One is a fundamental tenant of investing – no one ever made money by panicking. A market sell-off means plenty of stocks that might not even be exposed to the events occurring overseas are suddenly much cheaper right now. Value investors know that the pickings are good when everyone else is nervous because there are deals to be found in multiple market sectors.

The other factor is that sudden uncertainty usually translates into good news for gold. This safe haven asset is a tried and true resource for investors who want to place to park their gains while the stock market undergoes a correction. Continue reading "Take Advantage of the Volatility in Stocks with This Gold Play" →