What Makes a Perfect Stock?
Yet while few stocks have everything one might want in an investment, knowing the most desirable traits of great stocks can guide you in making choices for your own portfolio.
Yet while few stocks have everything one might want in an investment, knowing the most desirable traits of great stocks can guide you in making choices for your own portfolio.
Can you ever really find a stock that provides everything you could possibly want? Let's discuss the ideal qualities of such a hypothetical "perfect" stock, then decide if Expedia fits the bill.
America loves cars, but Wall Street analysts don't have much affection for the country's leading auto showroom operator. AutoNation has beaten its targets, is making strong profits, and is poised to grow. So what's wrong with its stock?
Facebook may finally be ready to go public in the second quarter of 2012. At an estimated valuation of $100 billion, the social networking giant is probably no longer a ground-floor opportunity -- but could even that number be too low?
Zillow's stock more than tripled after its IPO Wednesday, then fell back to settle up a mere 79% at the close. Initial public offerings have become a way to make huge profits in the market, if investors have the stomach for extreme risk -- and the access to buy in.
Trefis put a value estimate of $30 a share on LinkedIn as it launched its IPO Thursday. Shares actually opened at $83, raced past $100, and closed at $94.25. Wondering why the Trefis estimate is so much lower? Let's re-examine the fundamentals, and how they arrived at that number.
Facebook and many other tech startups have realized that the hassles and headaches of an IPO in the U.S. aren't always worthwhile. Thanks to willing venture capitalists and private investors, it's easier than ever for tech companies to avoid the lure of going public.
Amid rumors that Twitter is considering pursuing another round of venture funding, the microblogging site's co-founder Evan Williams said his company has "a lot of money in the bank," and that its advertising efforts are paying off better than expected.
Social shopping site Groupon has garnered fast success and a dizzying valuation of $1.35 billion. Its new hyperlocal and reward-plan features help illustrate why the startup has such a sky-high price tag.
Hard to believe, but the major indexes are basically unchanged since October. Still, fourth-quarter earnings and economic reports have been generally supportive of share prices. And the case for stocks based on valuation may be stronger -- until the Fed starts raising rates in earnest.
Europe, China and the Fed have generated lots of scary headlines lately, yet stocks have risen to nearly breakeven for the year. Does that mean they're overvalued now? Hardly. In fact, by some estimates, they could be 15% undervalued.
As stunning as Google's threat to shut down its operations in China may be, its business in the Middle Kingdom means almost nothing to the company's bottom line. And while Baidu may win in the long run, its shares look mighty rich after today's run up.
When a highly successful money manager like Hussman crunches the numbers and decides that shares are priced to disappoint -- perhaps for the next decade -- intelligent investors would do well to pay attention.














