Author: Daniel Cross

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" →

Don't Worry About Bulls or Bears, This 'Sin' Stock Is A Buy Regardless

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Sin stocks are popular with most investors. These are the types of companies that peddle alcohol, cigarettes and gambling to consumers – products and services that appeal to vices. It's popularity is easy to understand though. These companies tend to do well regardless of the economic environment. Whether the economy is expanding or contracting, people will still consume alcohol, smoke cigarettes and gamble.

For long-term investors, these are good stocks to own. They might be subject to short-term volatility, but generally have high free cash flow, operating margins and growth expectations. Alcohol in particular right now has a lot of potential for future growth.

The expanding global middle class – especially in BRIC economies – are becoming more demanding of what they want. Name-brand liquor and beer have proliferated in these countries as consumers have developed disposable income. Continue reading "Don't Worry About Bulls or Bears, This 'Sin' Stock Is A Buy Regardless" →

This Small Cap Stock Is Overdue For A Breakout Performance

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Certain stock sectors are great tools for measuring the health and state of the economy. Transportation is arguably the sector that says the most about it. When transportation companies are posting profits, that means more goods are being shipped and the economy is growing. And when those same companies are missing earnings, it means that fewer goods are being shipped and the economy is either stagnating or contracting.

So far this year, the Dow Jones Transportation Average doesn't reflect a strong and robust economy. It's fallen around 10% year-to-date and most transportation stocks have been bouncing around their 52-week lows for the past six months or so. However, that downward trend could be on the verge of entering a major reversal. Continue reading "This Small Cap Stock Is Overdue For A Breakout Performance" →