Eagle Financial Publications – Chris Versace

PowerTrend Brief

Souring Chinese Consumers Weigh on Alibaba Shares

There’s been no shortage of commentary on the recent initial public offering (IPO) of Alibaba (BABA) shares. During the last week or so, I’ve fielded questions from a number of people, including students that attend the graduate finance classes I am teaching this semester at the New Jersey City University (NJCU) School of Business, as to my thoughts on the pricing of that offering.

There is no doubt the Alibaba IPO was a hot transaction – not only was it the largest-ever IPO, but the shares quickly catapulted up to close their first day of trading at $93.89, a 38% gain from the more»

The Growth of Regulation Means Pain for You and American Business

There has been a lot of talk about regulations, more specifically about how the number of regulations have grown during the last several years. Sad to say, if you take a longer-term view and look again at the regulatory environment, you’ll find it has been what an investor would call a growth industry, with the number of restrictions in the Code of Federal Regulations growing 28% since 1997 – that’s nearly 2% per year. If page count is an indicator, then hang on to your collective hats — in 1975, the Code of Federal Regulations had 71,224 pages. By 2013, the number more»

Are You Profiting from Living Longer?

Subscribers to my investment newsletter, PowerTrend Profits, know I look at the intersection of economics, demographics, psychographics and more to zero in on profitable, long-term investments. As a part of my filtering process, I look for companies with strong earnings growth prospects, solid cash flow, pristine balance sheets and, if they have it, a rising dividend yield policy. That’s the financial side of the equation, but there is another aspect that I look for in PowerTrend candidates for my subscribers – pain points.

Pain points are those problems or vexing issues that a company or even a person may have to contend more»

Money Awareness Can Aid Your Retirement

Money.

A simple word that, if you aren’t careful, can cause you a lot of problems. If not you, then maybe for a family member or a close friend.

Some have more than others, but the bottom line – and that is what we are all about – is we all need it.

Whether it’s to put food on the table, buy the latest whiz-bang device from Apple or Samsung, buy clothes for that soon to be tween that is rapidly outgrowing their clothes or simply to treat yourself to dinner and a movie, let alone to save for your golden years or pay down more»

What’s Loaded in Your Valuation Tool Kit? Hopefully More Than Just P/Es…

Last week, I shared with you one of the techniques that companies use to boost their earnings per share (EPS) results and give the appearance of a business that is firing better than may be the case. Towards the end, I raised the question about what this means for price to earnings (P/E) ratios, which I’m sure you recognize as one of the easiest valuation metrics to use, but also one that is fraught with issues. That’s why in order to get really comfortable recommending a company to subscribers of my PowerTrend Profits newsletter, I need to triangulate the more»

How You Can Use a Technical Analysis of Earnings to Make Smarter Investments

One of the easiest and simplest metrics that investors use to screen for, as well as value, stocks is the price-to-earnings ratio, better known as a stock’s P/E. Of course, on its face, a P/E is nothing more than a snapshot in time, but what if I told you it was far more complicated than that?

There are several P/Es that you need to keep in mind. Sure, there is the current P/E, which reflects a stock’s price divided by the current year’s expected earnings per share, but there are also trailing P/Es, as well as price-to-peak-earnings and price-to-trough earnings. Obtaining more»

Investing is as Easy as Understanding the Dynamic of… Milk?

There are many things that we take for granted in this country. WiFi connectivity, water, streets and roads are some, as is milk. Yep, that whitish fluid that you put into your cereal, morning coffee, pancake mix and so on. What you may not realize is that milk prices, just like those for beef, pork, shrimp and others, have jumped significantly. Year over year, during the June quarter, raw milk costs increased 31% and rose 6% from the March quarter to an all-time high.

Dairy company Dean Foods (DF) shared that figure when it issued its most recent quarterly earnings results. more»

Making the Most of the Recent Sell-off with PowerTrend Profits

If you had never looked at a chart of any of the major stock market indices — the Dow Jones Industrial Average, the S&P 500 or even the Nasdaq Composite Index — before and you saw one from last week, you would likely say, “What happened?”

You and I know we saw a sell-off in the stock market that was started by talk of an Argentinean default and then continued with the sharp rise in the Employment Cost Index, which climbed 0.7% in Q2 2014, up from a 0.3% increase in the first quarter, and the initial more»