Tag: daniel cross

This Unlikely Stock Is Hitting On All Cylinders

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


It's no secret – it's a tough market out there. Oil prices are at record lows, the US dollar remains stubbornly strong, and now the Fed has all but admitted that the economy is weaker than expected and we might need to start preparing for negative rates.

In this kind of environment, smaller companies can often slip through the volatility. They can ride the waves of uncertainty and ignore macroeconomic hardships that plague their larger competitors making the smaller one an unlikely winner. If that stock is an industry which is trending higher, that's even better.

One stock in the communications sector is slipping through the noise and could be a huge opportunity for investors. The communications sector is widely viewed as an industry undergoing a rising tide, which as most investors know means it lifts all ships within that industry. Continue reading "This Unlikely Stock Is Hitting On All Cylinders" →

This High-End Retailer Is Beating The Odds

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


If you've payed any attention to the markets so far this year, it comes as no surprise that we're teetering on the edge of a major bearish reversal after many years in a bull market. The broader indexes are all down for the year and volatility is on the rise. With all the negative action going on right now, a stock that's on its way up stands out.

Stocks that outperform when the major averages are under performing deserve a closer examination. In order to appreciate amidst the storm of bearish momentum, these companies are generally doing something very right.

One company is undergoing a radical transformation and it's stock price is already beginning to show it. Despite all the negative macroeconomic news, this high-end retailer is belting out upside earnings surprises and growing sales both domestically and internationally – including China. Continue reading "This High-End Retailer Is Beating The Odds" →

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" →