Edited by

Taesik Yoon

Forbes Investor

Members beat the S&P 500 by 55% with undervalued stocks
I’m Taesik Yoon. As editor of the Forbes Investor, I help subscribers build wealth one undervalued stock at a time. Having joined Forbes in January 2000 after graduating from New York University's Stern School of Business, I've gained more than a decade of experience analyzing stocks from just about every sector and industry. This enables me to find winners in any market—good, bad or ugly.

As lead equity analyst of the Forbes Investors Advisory Institute, I’m trusted to keep the profits coming in. Those joining Forbes Investor can look forward to outperforming index investors and most every other stock investor, too.

My current subscribers achieved more than 55% gains last year, nearly doubling the returns posted by S&P 500. The coming 12 months will likely find us on top again. Here’s what my subscribers have racked up in just the past few months alone:

• 60% gain with Xerox
• 81% gain with Flextronics International Ltd.
• 48% gain with Foot Locker
• 53%

gain with Tyson Foods
• 54% gain with Corning
• A cutting-edge drug maker—up 134%
• An electronics powerhouse—up 152%
• A specialty chemicals maker—up 43%

So join the thousands of other investors who have been handsomely profiting from Forbes’s flagship newsletter. For a very low rate, you get top notch advice that you will profit from a hundred times over. Don’t delay. Become a Forbes Investor member today!

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2014
  • October

    Mid-Month Update: Equity Investors Head For The Hills

    While today’s market rebound is providing some much welcomed relief, October has still been a brutal for stocks so far.  The S&P 500, Dow Jones and NASDAQ have dropped 5.6%, 5.4% and 6.1%, respectively, through the first 16 days of the month.  The Forbes Investor portfolios are essentially pacing the [...]

  • The Divergence In Performance Between Large- And Small-Cap Stocks Widens In September (October Issue)

    Hurt by a late-month swoon in stocks, the S&P 500, Dow Jones and NASDAQ fell 1.6%, 0.3% and 1.9%, respectively, in September.  However, due to the relative outperformance in large-cap stocks, the decline in these averages doesn’t fully depict how tough it really was for most stocks.  Indeed, on an [...]
  • September

    Portfolio Change: One Stock To Buy, September 30

    Companies can raise capital by issuing debt or selling new stock. Generally, they try to avoid the latter since it’s more costly and dilutes the value of existing shares. So perhaps no one should be surprised to see the stock of this provider of testing solutions for the semiconductor and electronic manufacturing markets down roughly 10% since it announced a secondary public offering of 4.7 million shares three weeks ago. But this issuance [...]

  • Portfolio Change: One Stock To Buy & One To Sell, September 23

    One unfortunate byproduct of the current investor bias against small-caps is that it tends to magnify share price declines resulting from any perceived negative developments. We believe that’s been the case with this IT and management consulting provider. Already down nearly 20% on the year, its shares fell another 8% in late July after the company indicated that [...]

  • Mid-Month Update: Stocks Take A Breather After Their Strong Performance In August

    Coming off a very strong month in August, stocks are having a more difficult time so far in September.  While the Dow Jones is up 0.2% through the first 16 days of the month, the S&P 500 and NASDAQ are down 0.2% and 0.6%, respectively.  The performance of our portfolios [...]

  • Improving Economic Data And Consumer Confidence Help Stocks Surge In August (September Issue)

    Given the way the month began—with stocks extending the sell-off that materialized in the second half of July—few probably predicted that August would ultimately prove to be such a strong month for the equity market.  But the fact is the S&P 500 enjoyed its best August gain since 2000, climbing [...]
  • August

    Portfolio Change: One Stock To Buy & One To Sell, August 29

    When a company reduces its near-term guidance, its stock often pays the price. So perhaps no one should be surprised by the 15% drop in shares of this customer management services provider over the past two-and-a-half months. After all, the company lowered its full-year revenue forecast due to weaker-than-anticipated volume from several large clients when it reported Q2 results just a few weeks ago. Yet as [...]

  • Portfolio Change: One Stock To Buy & One To Sell, August 22

    Back in March of 2013, we dropped this civil and building construction company, after a gain of nearly 70% in just six months -- partly on concern over the contract award environment, which remained fairly volatile at that time. So why are we re-recommending the stock after it has surged another 50% since? For one thing, the continual rally in [...]

  • Mid-Month Update: Easing Geopolitical Tensions Help Stocks Rebound After A Poor Start In August

    After extending the sell-off that materialized in the second half of July, the stock market has enjoyed a sharp rebound since August 7.  As a result, the S&P 500, Dow Jones and NASDAQ are up 2.1%, 1.7% and 3.2%, respectively, through the first 18 days of the month.  The Forbes [...]

  • Strong Corporate Earnings Can't Stem The Slide In Stocks (August Issue)

    A strong sell-off in the final day of July capped what was a deceivingly tough month for stocks.  The S&P 500, Dow Jones and NASDAQ fell 1.5%, 1.6% and 0.9%, respectively, in July.  Yet, as these cap-weighted indices benefited from strong earnings-related gains in some of their largest constituents, they [...]
  • July

    Portfolio Change: One Stock To Buy, July 31

    At first blush this provider of analog and mixed-signal semiconductors used in high-end consumer, computing communications and industrial equipment, doesn’t appear particularly attractive from a growth standpoint. After all, based on analysts’ consensus estimate, earnings for the current year are expected to be up less than 4%. However, this is largely due to a significant [...]

  • Portfolio Change: One Stock To Buy & One To Sell, July 29

    When times are tough, as they have been for small-caps, investors tend to focus on the negatives. Take this provider of high-definition audio solutions for example. It enjoyed what by most measures was a very strong first quarter with both revenues and adjusted earnings coming in well ahead of expectations. The only negative was [...]

  • Mid-Month Update: Small-Caps Take A Beating As Earnings Season Begins

    The S&P 500, Dow Jones and NASDAQ are up 1.1%, 1.9% and 0.4%, respectively, through the first 16 days of July.  Yet these gains mask the overall weakness of the broader equity market, spurred by another sharp sell-off in small-cap stocks.  Indeed, after nearly rebounding to its highest level of [...]

  • Strong Momentum At The End Of June Helps The Stock Market Close The First Half Of 2014 At Record Highs (July Issue)

    June proved to be another solid month for U.S. stocks with the S&P 500 and Dow Jones gaining 1.9% and 0.7%, respectively. Once again, the NASDAQ that was the biggest beneficiary of the ongoing market strength, up 3.9% in June after rising 3.1% in the prior month. While the Forbes [...]
  • June

    Portfolio Change: One Stock To Buy & One To Sell, June 30

    In the absence of company-specific catalysts, the direction share prices tend to move in is often reflective of how they are classified, as well as investor sentiment towards those classes. For example, if investors are currently favoring large-cap stocks or certain sectors, there’s a good chance those categories will outperform the overall market over the near term. For much of 2014, this has been the case with [...]

  • Portfolio Change: One Stock To Buy & One To Sell, June 26

    Acquisitions are a double-edged sword. The right one can add significant shareholder value by enhancing top-line growth and expanding profits. But when they don’t pan out as expected, it could haunt a company for years. Unfortunately, that’s exactly what occurred after this image sensor producer acquired [...]

  • Mid-Month Update: Momentum From The End Of May Continues

    The momentum in equities that began in the second half of May has continued into June with the S&P 500, Dow Jones and NASDAQ up 0.7%,0.4% and 1.8%, respectively, through the first 16 days of month. The performance of the Forbes Investor portfolios has been more mixed. While the Master [...]

  • Why Stocks Showed Strength Despite Lousy GDP Report (June Issue)

    For the second year in a row, May proved to be a good month for stocks. The S&P 500 and Dow Jones, which gained 2.1% and 0.8%, respectively, ended May at all-time closing highs. Yet the Nasdaq was the big winner, climbing 3.1%. It was a solid month for the Forbes [...]
  • May

    Portfolio Change: One Stock To Buy & One To Sell, May 29

    Few stocks are as closely associated to the health of the domestic housing market than this appliance producer. This makes sense when you consider that more than half of its sales are generated in North America and a sizable portion of appliance demand comes from new and existing home sales. So perhaps it shouldn’t be too surprising that the stock is down following an analyst downgrade based on the slow pace of recovery in the U.S. [...]

  • Portfolio Change: One Stock To Buy & One To Sell, May 22

    Despite expectations for strong earnings growth in excess of 30% for the remainder of 2014, shares of this leading provider of automotive driveline and drivetrain systems are down 15% from mid-January. When you consider the fact that automaker General Motors (GM) -- which has been skewered by the press, politicians and its own customers for the massive number of vehicle recalls initiated so far this year -- is responsible for roughly [...]

  • Mid-Month Update: New All-Time Market Highs Prove Short-Lived

    Like April, the S&P 500 rose to a new all-time high earlier in the month. The Dow Jones also reached a new record. But these gains didn’t last long. Neither did the strong start to the month by the NASDAQ. As a result, the S&P 500, Dow Jones and NASDAQ [...]

  • Weakness In Small Caps Presents Buying Opportunity (May Issue)

    Aided by a strong second half performance in equities, the S&P 500 and Dow Jones managed to post gains of 0.6% and 0.7%, respectively, in April. The NASDAQ wasn’t as lucky, falling 2.0%. The month also proved to be very challenging for our portfolios. The Forbes Investor Master Buy List [...]
  • April

    Portfolio Change: One Stock To Buy & Two To Sell, April 30

    It’s not unusual to see shares of a company sell-off on any action perceived as potentially reducing shareholder value. Take this leading funeral home and cemetery services provider for example. The stock has dropped more than 30% since its late January high with most of the decline occurring after the company announced last month [...]

  • Portfolio Change: One Stock To Buy, April 28

    Small-cap stocks have really taken it on the chin lately. Given their historically poor performance during the middle two quarters of a mid-term election year, such as the one we’re currently in, perhaps this shouldn’t be too surprising. Indeed, these stocks could easily remain under pressure over the near term -- especially if the equity market trends lower. Yet as with most situations, there are exceptions. We think we found one in [...]

  • Mid-Month Update: Extreme Volatility Dominates the First Half of April Trading

    The speed at which stock prices have bounced from one direction to the other so far in 2014 is something we haven’t seen in quite some time. In just the first 11 trading days of April, the S&P 500 initially gained 1.0% to a new all-time high, then lost 2.4%, [...]

  • The Forbes Investor Continues To Prove Its Worth, Gaining 9.2% In The First Quarter Of 2014 (April Issue)

    A market rebound in the final two trading days of March helped salvage what initially appeared to be a late-month swoon in stocks. As a result, the S&P 500 and Dow Jones managed to gain 0.7% and 0.8%, respectively, in March. While the NASDAQ also rallied, it wasn’t strong enough [...]
  • March

    Portfolio Change: One Stock To Buy & One To Sell, March 31

    Companies are often associated with certain products or services. For example, Apple is widely known for its iPhone while Google is considered thee provider of Web search. This makes it easy to overlook the strides they may be making in other businesses and markets. We think this is the case with [...]

  • Portfolio Change: One Stock To Buy & One To Sell, March 25

    An open investigation by the U.S Department of Justice (DOJ), a pending shareholder lawsuit, and a potential legal decision that could jeopardize a significant revenue stream... Any one of these issues is enough to cause investors to shy away from a stock. So why recommend a company currently dealing with all three of them? The most obvious answer is [...]

  • Mid-Month Update: March Proving To Be Another Seesaw Month For Equities

    Like February, March has been another seesaw month so far for equities. After exhibiting strength early, stocks sold off sharply last week before recouping some of these losses yesterday. As a result, the S&P 500 is essentially flat through the first 17 days of March while the Dow Jones and [...]

  • Stocks Rebound Sharply After Early Tumble But Continue To Face Ukraine Headwinds (March Issue)

    After the sharp tumble stocks took on the first trading day of February, many believed that we were headed for a true market correction of 10% or more. But this proved to be premature as equities began rebounding shortly thereafter and continued to display excellent strength throughout the month. As [...]
  • February

    Portfolio Change: One Stock To Buy, February 28

    International expansion is attractive for many reasons. It can add significant growth opportunities and lessen a company’s reliance on its larger and likely more mature domestic market. But this growth comes at a price since most international regions are perceived as more risky than the U.S. In particular, emerging markets offer vast growth potential but suffer from significantly greater political, social, economic and event-driven risk factors. It’s often easy [...]

  • Portfolio Change: One Stock To Buy, February 26

    The prevalence of bitter cold and wet weather across the U.S. so far this winter has been bad for many companies. While much of the attention has centered on the negative impact it has had on consumer-driven businesses, such as retail and casual dining, other industries have been hit just as hard. The trucking industry, for example, is especially vulnerable since heavy precipitation and sub-zero temperatures can severely impair road [...]

  • Portfolio Change: Two Stocks To Sell, February 19

    This stock is up 39.7% since we added it to the Forbes Investor Master Buy List about a year ago. This has significantly outperformed the S&P 500, which has gained 22.9% during the same period. Despite this outperformance [...]

  • Mid-Month Update: Stocks Staging An Impressive Rebound After A Terrible Start To The Year

    After extending their declines from January to start the month, equities have staged an impressive rebound so far in February. As with the prior month, the NASDAQ continues to lead, gaining 3.4% through the first 14 days of February. The S&P 500 and Dow Jones are up 3.1% and 2.9%, [...]

  • Stocks Sour As Economic Data From The U.S. And China Disappoints (February Issue)

    January was an awful month for stocks. The S&P 500 Dow Jones and Nasdaq fell 3.6%, 5.3% and 1.7%, respectively—marking the worst start to the year since 2009. While the Forbes Investor Master Buy List could not escape the selling pressure, it performed relatively well—especially compared to S&P 500 and [...]
  • January

    Portfolio Change: One Stock To Buy, January 30

    Traditional brick and mortar retailers seem to face more intense online competition every year. Given the challenging consumer spending environment -- particularly during the highly promotional holiday shopping period -- 2013 was an especially tough year for many. The weak holiday sales have resulted in numerous downgrades of retail stocks. Among them was this retail stock, which was downgraded earlier [...]

  • Portfolio Change: One Stock To Buy, January 22

    Investing in a company that derives the majority of its revenue by providing a specific set of services to its customers can be a double-edged sword. High demand for said services can result in significant growth. However, when demand falters, profits can shrink in a hurry. One way to offset this risk is by [...]

  • Mid-Month Update: Lackluster Performance in Equities To Start The New Year

    The nice recovery in stocks over the past two days has managed to offset the sharp sell-off that occurred on Monday. As a result, the S&P 500 is unchanged through the first 15 days of the year. While the Dow Jones also bounced back, it’s still down 0.6% for the [...]

  • Portfolio Change: Two Stocks To Sell, January 15

    This stock is up 47.7% since we added it to the Forbes Investor Master Buy List just six-and-a-half months ago. This has significantly outperformed the broader equity market with the S&P 500 up just 14.6% during that same period. While quarterly earnings [...]

  • "Santa Claus Rally" Help Stocks Finish The Year Off In Strong Fashion (January Issue)

    Benefiting from a strong “Santa Claus Rally" in the second half of December, the S&P 500, Dow Jones and Nasdaq rose 2.4%, 3.0% and 2.9% in the final month of 2013—capping off what was a banner year for stocks by any measure. The 29.6% gain in the S&P 500 was [...]
2013
  • December

    Portfolio Change: One Stock To Buy & Two To Sell, December 30

    Domestic oil prices have declined significantly over the past several months. Indeed, a barrel of West Texas Intermediate (WTI) is down 10% since early September to roughly $100. The key concern is that record U.S. production, which exceeded foreign oil imports in October for the first time since February 1995, will further hurt oil prices in the upcoming year. This has pressured shares of [...]

  • Mid-Month Update: Fears Of Fed Tapering More Than Offset Better-Than-Expected Economic Reports

    So far this month we’ve seen the release of numerous better-than-expected economic reports. On the employment front, 203,000 jobs were created in November, which was significantly more than expected, and the unemployment rate fell to 7.0% -- the lowest level since November 2008. In terms of housing, recent data showed [...]

  • Portfolio Change: One Stock To Buy, December 16

    Given the disappointing Black Friday sales reported by many retailers and the growing consensus that the current holiday shopping season may be the weakest one in several years, retail stocks are probably not what investors want to be in right now. But this general avoidance can also create buying opportunities. Take this company for example. The stock jumped [...]

  • Bullish Sentiment And Market Momentum Continue To Send Stocks Higher (December Issue)

    History shows that when the stock market is up 10% or more in the first ten months of the year, it continues to climb in the final two over 80% of the time. This has ringed true so far in 2013 with the S&P 500, Dow Jones and Nasdaq up [...]
  • November

    Portfolio Change: One Stock To Buy, November 27

    When a government enforcement or protection agency begins investigating company’s business practices, investors usually sell first and ask questions later. That’s what happened to this stock in September of 2012 when it announced that the U.S. Attorney’s Office (USAO) for the Eastern District of Pennsylvania had initiated an investigation regarding the company’s promotional practices. Fortunately, strong operating results [...]

  • Portfolio Change: One Stock To Buy & One To Sell, November 26

    Too much demand is rarely a bad thing. The same, however, cannot be said about too much supply. This can lead to excess market inventories and force companies to lower selling prices in order to move their products, which negatively impacts profit margins. It’s also why investors generally avoid shares of firms that are operating in industries characterized by too much capacity, which can often result in an oversupply of goods [...]

  • Mid-Month Update: Stocks Continue To Rally After Yellen Comments

    The rally in stocks marches on with the S&P 500, Dow Jones and NASDAQ up 2.4%, 2.7% and 1.7%, respectively, through the first 15 days of November. The Forbes Investor portfolios have also started the month off well with the Master Buy List and the Core Growth sub-portfolio both outperforming, [...]

  • Deal To Raise The Debt Ceiling Sends Stocks Soaring (November Issue)

    For the equity market, October was a tale of two halves. Racked by concerns over the government shutdown and the looming debt ceiling, the first half was lackluster at best. But once Congress finally approved a deal to increase the debt ceiling and reopen the government, stocks took off. As [...]
  • October

    Portfolio Change: One Stock To Buy & One To Sell, October 30

    While the government has reopened for now, the negative impact of the 16-day shutdown is being felt by numerous companies. This includes this leading cloud computing solutions provider, which recently reported Q3 results that fell short of expectations due in part to lower year-end budgets by federal government customers and a reprioritizing of these funds ahead of the shutdown. To be fair, the company [...]

  • Portfolio Change: One Stock To Buy & One To Sell, October 24

    With the ever increasing focus on near-term results, investors often lose sight of the bigger picture. That’s why it’s not unusual to see shares of a company that misses quarterly expectations or reduces near-term guidance sell-off even if the primary reason for it stems from the negative effects of strategic actions that are designed to improve growth and profitability in future periods. This is what happened earlier in the year with [...]

  • Mid-Month Update: Equities Seesaw As Government Shutdown Continues And Debt Ceiling Looms

    The seesaw in equities stemming from the ongoing government shutdown and looming debt ceiling was in full effect through the first half of October. Stocks initially fell as the deadlock in Washington continued. Then, as signs pointed to possible compromise by House Republicans, stocks rebounded sharply late last week. After [...]

  • Portfolio Change: Two Stocks To Sell, October 15

    This stock has gained nearly 35% since being added 11 months ago. Including dividends paid during that time, the total return on the stock is closer to 37%. This outperformance has largely been driven by [...]

  • Congress' Inability To Prevent Government Shutdown Mar A good Month For Stocks (October Issue)

    Selling pressure in the second half of September marred what was shaping up to be one of the strongest months for equities this year. Even with this weakness, the S&P 500 and Dow Jones still gained 3.0% and 2.2%, respectively. The Nasdaq held up much better in the back half [...]
  • September

    Portfolio Change: One Stock To Buy, September 30

    Brand recognition is so valuable that companies spend billions to promote it and then spend billions more to maintain it. Among producers of consumer goods, there is no greater compliment than when shoppers begin identifying their brands with the products they represent. For example, when you think of Kellogg or Campbell’s, it’s probably cereal and soup that comes to mind. Yet from an investment standpoint, this recognition can [...]

  • Portfolio Change: One Stock To Buy & One To Sell, September 23

    Like most products, semiconductors and integrated circuits (ICs) have to be designed, modeled, tested and prototyped before being commercially brought to market. Driven by the proliferation of smartphones, tablets, entertainment consoles, smart TVs and other consumer electronic devices, chipmakers have been under greater pressure to develop, smaller, more complex and feature-rich products. Companies that provide [...]

  • Mid-Month Update: Stocks Rebound As U.S. And Russia Agree On Peaceful Syria Resolution

    As it has after every meaningful sell-off so far this year, the stock market is once again showing its resilience. Indeed, coming off their worst month of the year, the S&P 500, Dow Jones and NASDAQ are up 4.0%, 4.6% and 3.6%, respectively, through September 16. While the Forbes Investor Master [...]

  • Stocks Stall Amid Unease Over Syria And Fed Tapering (September Issue)

    Racked by the growing conflict in Syria and concern that the Federal Reserve will begin tapering its stimulus program, August proved to be the most challenging month for equities so far this year. The S&P 500 fell 3.1%—its worst performance since May 2012. The Dow Jones fared even more poorly, dropping [...]
  • August

    Portfolio Change: One Stock To Buy & One To Sell, August 29

    While few stocks have been spared by the current sell-off in equities, those of retail store operators have been especially hard it. When you consider the disappointing comparable store sales performance reported by many retail companies last month and the weaker-than-expected quarterly performance by industry bellwethers, such as Wal-Mart, Target and Macy’s, it’s not too hard to see why. But not all retailers were deserving of their steep [...]

  • Portfolio Change: One Stock To Buy, August 23

    Large-cap companies are typically so widely followed by the investment community that their stock prices tend to fully reflect what they are worth. This is why there aren't many large-caps in our portfolio. Indeed, there is far more potential for mispricing in shares of smaller companies with less industry coverage. Smaller-sized companies also often have better growth potential as their businesses tend not to be as mature. But every now and [...]

  • Mid-Month Update: This Breather May Take Longer Than The Last One

    August has been a fairly challenging month for stocks so far with the S&P 500, Dow Jones and NASDAQ down 1.8%, 2.7% and 0.7%, respectively, through the first 16 days of the month. Fortunately, our Forbes Investor portfolios have held up better. In particular, the Master Buy List has managed to [...]

  • Stocks Stage A Surprisingly Strong Rebound In July (August Issue)

    After a disappointing June, many investors may not have been surprised to see the stock market rebound in July. But few probably predicted such an impressive performance. After all, the S&P 500 and Dow Jones rose 4.9% and 4.0%, respectively. Not to be outdone, the Nasdaq surged 6.6%. On the [...]
  • July

    Portfolio Change: One Stock To Buy & One To Sell, July 31

    Not all companies provide future financial guidance. For those that do it can provide investors with a fairly accurate estimate of what a firm expects to achieve on an operating basis given the current macro environment, industry conditions, business and market trends, and other relevant factors. Yet for this company, weaker-than-expected Q1 results, coupled with a soft outlook for the current quarter, have investors skeptical on the [...]

  • Portfolio Change: One Stock To Buy & One To Sell, July 26

    Generally, investors do not look too kindly on firms that cut their dividend payments. This is especially true if the company operates in an industry that is known for offering high dividend yields. To many investors, such cuts are a signal of trouble ahead as future operating cash flows may not be sufficient to support the current dividend payments. That’s why we were not surprised to see shares of this leading domestic provider of telecommunications [...]

  • Mid-Month Update: Investors Start Viewing Selloffs As Buying Opportunities

    The rebound in the equity market so far this month has been impressive to say the least. The S&P 500 and Dow Jones are up 5.2% and 4.3%, respectively, through July 18 with both closing at their highest levels ever. The NASDAQ has done even better, rising 6.1% through July [...]

  • Despite The June Swoon In Equities, The Forbes Investor Surges 26% In the First Half Of 2013 (July Issue)

    It was bound to happen sooner or later. Selling pressure in the final two weeks of the month resulted in a 1.5% decline in the S&P 500 in June—its first monthly drop since October 2012. The Dow Jones fell 1.4% while the NASDAQ was down 1.5%. The Forbes Investor Master [...]
  • June

    Portfolio Change: Two Stocks To Buy & Two To Sell, June 27

    Last year, Samsung’s Galaxy S3 smartphone took the industry by storm with sales that exceeded even the most optimistic expectations. Some of the biggest beneficiaries of this were companies that supplied components used in the device. That’s why we were not surprised to see shares of this touchscreen technology provider move higher after reporting strong fiscal Q3 results in late April and announcing that its ClearPad [...]

  • Mid-Month Update: Investor Sentiment Weakens And Volatility Increases

    June is proving to be a very uneven month for equities with the stock market swinging between gains and losses on almost a daily basis. By the end of June 17, however, both the S&P 500 and the Dow Jones managed to stay on the positive side, up 0.5% and [...]

  • Not Many Investors Selling In May And Going Away (June Issue)

    Despite the sharp sell-off in the final day of the month, not too many investors were keen on selling in May and going away. The S&P 500, Dow Jones and Nasdaq gained 2.1%, 1.9% and 3.8%, respectively, last month. With a gain of 6.1% during the same period, the Forbes [...]
  • May

    Portfolio Change: One Stock To Buy & One To Sell, May 31

    Generally, when a company grows quarterly revenue by nearly 40% from the prior year, it provides investors with a reason to cheer. But top line growth matters little if it doesn’t translate into higher profits. Unfortunately, that proved to be the case with [...]

  • Mid-Month Update: No Selling In May And Going Away So Far

    So far, not too many investors seem keen on selling in May and going away. In fact, May is shaping up to be the strongest month for stocks since January with the S&P 500, Dow Jones and NASDAQ up 3.8%, 2.9% and 4.3%, respectively, through May 15. With a gain [...]

  • Portfolio Change: One Stock To Buy & One To Sell, May 10

    Shares of oil and gas producers sold off sharply in mid-April as crude oil prices slid on concerns of slowing global growth. This includes EOG Resources, Continental Resources, Oasis Petroleum and this company, which all have oil and gas production interests in the Williston Basin, North Dakota. But while most of these firms have seen their shares prices recover substantially along with the rebound in oil prices over the past several [...]

  • Telecom And Utilities Lead As Investors Get More Defensive (May Issue)

    With six trading days where the S&P 500 either gained or lost more than one percent, April has been the most volatile month for stocks so far this year. Yet thanks to a market rally in the second half, both the S&P 500 and the Dow Jones finished April up [...]
  • April

    Portfolio Change: One Stock To Buy & One To Sell, April 30

    Recently, it seems that any reliance on the federal government for a meaningful portion of business has been viewed by investors as an albatross for most firms. This reflects the expectation that federal spending will continue to trend lower as the government reigns in the large federal deficit. Indeed, the sequestration that went into effect in March was specifically designed to do just that by cutting $85.4 billion in federal spending this year. Because half of [...]

  • Portfolio Change: One Stock To Sell, April 24

    This stock is down about 43% since being added to the Forbes Investor Master Buy List a year and 11 months ago. Yet is has been among our best performers so far in 2013, up 134%. The stock’s [...]

  • Portfolio Change: One Stock To Buy, April 22

    More often than not, when you come across a stock that’s down 15% during a period of market strength, as shares of this company were from mid-October 2012 to Mid-March 2013, there’s usually a pretty good reason for it. For this stock, the primary catalysts were weaker-than-expected sales growth in the second half of 2012 and guidance that suggests this trend will likely continue in the current year. You could probably add in the [...]

  • Mid-Month Update: April Proves To Be Challenging Month For Stocks

    Today’s market rebound managed to offset some of the steep drop stocks suffered the day before. As a result, the Dow Jones and S&P 500 are up 1.2% and 0.3%, respectively, while the NASDAQ is down just 0.1% through April 16. Yet April is still proving to be a fairly [...]

  • Solid Quarterly Results And Improving Economic Conditions Provide Investors With Optimism (April Issue)

    The path that stocks have taken so far this year is very similar to the one in 2012. After another strong outing, the S&P 500, Dow Jones and Nasdaq gained 3.6%, 3.7% and 3.4%, respectively, in March. They are now up 10.0%, 11.3% and 8.2% for the year. At the [...]
  • March

    Portfolio Change: One Stock To Buy & One To Sell, March 28

    Internet companies of today are not like the ones that pervaded the equity market during the dotcom bubble of 2000. Back then, it was all about potential. Today, it’s more about profits. That’s why all of the well-known Internet companies, such as Google, Yahoo, Facebook, Demand Media, Expedia, Priceline, Amazon and Ebay, make money. But with all of these stocks trading for no less than 18 times their respective expected earnings [...]

  • Portfolio Change: One Stock To Buy & One To Sell, March 22

    After enjoying a spectacular first half in 2012 -- highlighted by better-than-expected net sales growth of more than 14% from the prior year and a 119% jump in earnings per share -- this company's earnings unexpectedly fell in Q3. This contributed to the stock losing a third of its value in just a one month span from mid-October to mid-November. But the earnings shortfall in Q3 was largely the result of [...]

  • Mid-Month Update: Bulls Remain In Control

    The bulls remain in control of the stock market so far this month with the S&P 500, Dow Jones and NASDAQ up 2.5%, 2.8% and 2.5%, respectively, through March 18. With a gain of 5.1% the Forbes Investor Master Buy List is well on its way to outperforming for the [...]

  • February's Rollercoaster Ride In Stocks Ultimately Ends On a High (March Issue)

    Stocks went on a rollercoaster ride in February. They shot up right out of the gate with the S&P 500 gaining one percent on the first day of the month. By February 19, the index had extended this gain to 2.2% then gave it all back and more over the [...]
  • February

    Portfolio Change: One Stock To Buy & Five To Sell, February 28

    Producers of commodities -- be it metals or meats -- tend to have some of the most volatile stock prices around. This is generally due to the uneven nature of their cash flow stemming from price movements of the commodities-based products they supply. In a rising demand environment, this works to their advantage since it often results in higher selling prices and profit margins. But if demand falters and commodity prices [...]

  • Portfolio Change: One Stock To Buy, February 26

    Investors hate uncertainty. However, in their attempt to avoid or minimize it, they sometimes overestimate the potential impact of the risk concerns responsible for the uncertainty. We believe this company is a clear example of this. Boosted by demand for genetic tests designed to assess a person’s risk of developing certain types of cancers and other diseases, the company’s revenue and earnings have grown at a compounded annual rate of 28% and [...]

  • Mid-Month Update: Investors Are Becoming Less Risk Averse To Buying Stocks

    While gains have slowed from their torrid pace in January, stocks are still exhibiting good momentum with the S&P 500, Dow Jones and NASDAQ up 1.5%, 0.9% and 1.6%, respectively, through February 15. The Forbes Investor continues to extend its outperformance with the Master Buy List and Core Growth sub-portfolio [...]

  • For the Second Year In A Row, The Forbes Investors Start Off In Strong Fashion (February Issue)

    When our portfolio gained 13.0% last January, I was extremely pleased but not overly surprised. After all, stocks were coming off a pretty lackluster year in 2011 with the S&P 500 unchanged and the broader Wilshire 5000 Total Market Index down 1.3%. It was a market characterized by one overriding [...]
  • January

    Portfolio Change: One Stock To Buy & Two To Sell, January 31

    It’s not unusual for shares of a company to trade measurably lower after missing quarterly profit expectations. This is what happened to this company's stock when it fell 10.4% after reporting disappointing third quarter results back in late October. What is unusual, however, is seeing the stock trading 26% higher just a few months later -- especially when there hasn't been any major change to the company’s business outlook or overall industry [...]

  • Portfolio Change: One Stock To Buy & One To Sell, January 29

    This is an example of a company that has become a victim of its own brand. Ask anyone on the street what they do and the answer you’re bound to get is that they make [...]

  • Mid-Month Update: Stocks Kick Off Year Traditionally Strong

    January has generally been a good month for stocks. So far, 2013 has proved to be no different with the S&P 500, Dow Jones and NASDAQ up 3.2%, 3.3% and 3.0%, respectively, through January 15. More importantly, the Forbes Investor continues to outperform, with the Master Buy List up 5.2% [...]

  • Portfolio Change: Three Stocks To Sell, January 9

    This stock is up 20.1% since it was added to the Forbes Investor Master Buy List about four months ago. Adding the single dividend payment received during the period, the total return is 21.1%. This strong outperformance confirms our initial assessment that shares were significantly undervalued at that time. They were so underpriced [...]

  • Optimism Over Deal To Advert The Fiscal Cliff Help Equities End The Year With A Bang (January Issue)

    The equity markets sure ended 2012 with a bang. Driven by strong indications that a deal to advert the fiscal cliff was imminent, the S&P 500, Dow Jones and NASDAQ rose sharply on the final trading day of the year. This pushed all three indices back into positive territory for [...]
2012
  • December

    Portfolio Change: One Stock To Buy, December 31

    Retailers seem to be getting no respect these days. Shares of industry heavyweights like Wal-Mart, Macy’s, Nordstrom, Target and Kohl’s are down at least 6% from their recent highs. Specialty retailers have been especially hard hit with shares of well-known companies such as the Gap, Limited Brands, Foot Locker, DSW Inc., Stage Stores, Children’s Place, Buckle, Cato Corporation, Men’s Wearhouse and Finish Line down roughly 9% or more [...]

  • Portfolio Change: One Stock To Buy, December 28

    With the fiscal cliff still unresolved, it may seem unwise to recommend companies that rely on the public sector for a significant portion of their revenues. After all, cuts in federal spending seem inevitable -- even after the issue is dealt with. Most might argue that the sensible thing to do is to stay away from these companies for now and see how things play out first. Yet shares of some of these firms have held up surprisingly well even as we reach the end of 2012. Take [...]

  • Portfolio Change: Two Stocks To Sell, December 12

    This stock is up 53.1% since being added to the Forbes Investor Master Buy List just five and a half months ago. This outperformance was initially driven by stronger-than-expected Q2 results released in July. Robust automobile sales [...]

  • Pending Fiscal Cliff Creates Buying Opportunity (December Issue)

    After falling more than 4% in the first two weeks of November, the S&P 500 managed to post a gain of 0.3% while the Dow Jones limited its loss to just 0.5% for the month. The rebound in the Nasdaq was even more impressive, gaining 1.1% after falling roughly 5% [...]
  • November

    Markets Wane Thanks To Underperforming Tech Stocks (November Issue)

    For the third time in a row, stocks exhibited marked weakness in the final weeks of the month. The severity of the sell-off in late October led to a 2.0% and 2.5% decline in the S&P 500 and Dow Jones, respectively for the month. Driven by the underperformance in technology [...]
  • October

    Strong Month For Stocks Puts More Pressure On Companies To Deliver (October Issue)

    Like August, September proved to be a stronger than expected month for U.S. equities. The S&P 500, Dow Jones and NASDAQ gained 2.4%, 2.7% and 1.6%, respectively. Once again, the Forbes Investor Master Buy List outperformed the broader market, up 3.8% in September. The recent rally in stocks, which began in [...]
  • September

    Stocks Buck Historical Trend With Gains in August (September Issue)

    Forbes Investor September 2012 issue Bucking its historical trend, August was a good month for U.S. equities. The S&P 500, Dow Jones and Nasdaq gained 2.0%, 0.6% and 4.3%, respectively. The Forbes Investor Master Buy List had one of its best months of the year, gaining 4.4% in August. Nevertheless, I was disappointed [...]
  • August

    Unusual Trading Activity Not Helping Investor Confidence (August Issue)

    The equity markets managed to end July on the positive side with the S&P 500, Dow Jones and Nasdaq up 1.3%, 1.0% and 0.2%, respectively, last month. The Forbes Investor portfolios were negatively impacted by substantial declines in Supervalu (SVU) and Calix (CALX). SVU’s drop was especially tough due to [...]
  • July

    Small-Cap Stocks Lead A Late-Month Rally In Stocks (July Issue)

    A nice late-month rally in stocks helped the S&P 500, Dow Jones and NASDAQ gain 4.0%, 3.9% and 3.8% respectively, in June. Despite a weak start to the month, the Forbes Investor Master Buy List matched the strong performance in the S&P 500 with a gain 4.0%. Last month, I said [...]
  • June

    Enticing Stock Valuations Could Trigger A Rebound Soon (June Issue)

    Anyway you look at it, May was an awful month for U.S. equities. The S&P 500, Dow Jones and Nasdaq fell 6.3%, 6.2% and 7.2%, respectively. The Forbes Investor Master Buy List also had one of its poorest showings, falling 10.4% last month. In the prior issue, I suggested that the [...]
  • May

    After Three Months Of Gains, Stocks Take A Pause (May Issue)

    After three months of strong gains, the equity markets displayed general weakness in May. While the Dow Jones managed to eke out a gain of 0.1%, the S&P 500 and NASDAQ were down 0.8% and 1.5%, respectively. The Forbes Investor Master Buy List also had its first down month in [...]
  • April

    Stocks Enjoy Their Strongest Quarter Performance Since 1998 (April Issue)

    U.S. stocks continued to climb in 2012 with the S&P 500, Dow Jones and NASDAQ up 3.1%, 2.0%, and 4.2% in March. Much like the month prior, the Forbes Investor Master Buy List performed well in the first half but suffered from marked sell-offs in several recommended stocks in the [...]
  • March

    The Rally In Stocks Continues Through February (March Issue)

    Spurred by the continuation of favorable corporate earnings reports and improving economic data, the equity markets extended their impressive start to 2012 with another good month of gains. The S&P 500, Dow Jones and NASDAQ rose 4.1%, 2.5% and 5.4%, respectively. The Forbes Investor Master Buy List began with the same [...]
  • February

    The Forbes Investor Starts The New Year With Its Best January On Record (February Issue)

    The U.S. equity market staged an impressive start to the New Year. The S&P 500 and Dow Jones gained 4.4% and 3.4%, respectively—representing their best start to the year since January of 1997. The NASDAQ surged 8.0% for its best January gain since 2001. The Forbes Investor Master Buy List [...]
  • January

    Favorable Economic Data And Consumer Spending Trends Could Portend A Strong Year Ahead For Stocks (January Issue)

    A nice rally in the final two weeks of December helped lift stocks from their mid-month lows. As a result, the S&P 500 and Dow Jones gained 0.9% and 1.4%, respectively. The NASDAQ was able to limit its decline to just 0.6%. While the Forbes Investor Master Buy List also [...]