Posts by Maxwell Meyers
- Maxwell Meyers at Talking Numbers3 days ago
Its cars inspire envy in auto enthusiasts all over the world. But recently, Tesla Motors’ stock performance has elicited a different emotion: despair. That’s because the company’s stock price has fallen nearly 30 percent since hitting its February high. The move has come on relatively little news, which is not that surprising given the confusion among the analyst community about exactly how to value electric automaker.
(Read: Wall St falls as momentum shares sink again) Of the 16 analysts that cover the stock, five have a positive rating, eight list it as a “hold,” and three have it as either an “underweight” or a “sell,” according to Factset, “There is no strong consensus here, and that contributes to its volatility,” said Andy Busch, editor of the Busch Update and a CNBC contributor. “Is it an auto company or a technology company? All we really know is that it’s the poster child for momentum,” Busch added. With few fundamentals to rely on, many traders have turned to the charts for help. But unfortunately, they aren’t looking much better, at least according to some technicians.
- Maxwell Meyers at Talking Numbers26 days ago
Fear and greed are both rallying in 2014. Both the VIX, the so called “fear index,” and stocks, let’s call it the “greed index,” are up in 2014. Typically, these two indexes move inversely to each other, which makes sense. Stocks tend to rally when investors feel secure and fall when they’re scared. In simple terms, the VIX measures the cost of insuring stocks. The greater the fear, the more investors are willing to pay to protect their portfolios, which explains why the VIX rises during turbulent times. So what gives? And more importantly, what does that mean for stocks?
- Maxwell Meyers at Talking Numbers28 days ago
Do you want wine with your Frappuccino? Well, you may soon be in luck. That’s because Starbucks announced it will sell beer and wine in thousands of stores after 4 p.m. But will the move caffeinate the stock, which has badly lagged the broader market in 2014?
(Watch: Starbucks to sell wine and beer)
“People who are addicted to Starbucks are addicted to the brand as much as the coffee,” said Gina Sanchez of Chantico Global. “I think sharing a glass of wine with a close companion in a homey Starbucks still works. I think this could be a lucrative move.” Still, the initial shift to adding booze will take some time to roll-out and is expected to have a negligible impact on the company’s near-term bottom-line. And anyone hoping for a quick fix shouldn’t look to the charts either.
- Maxwell Meyers at Talking Numbers29 days ago
You want to know how to freak out a bond trader? Well, if you’re the chairwoman of the Federal Reserve, utter these words: “So I, you know, this is the kind of term it's hard to define. But, you know, probably means something on the order of around six months, that type of thing.” That “type of thing” took traders by surprise and laid a whipping to the ten-year bond yesterday. The yield, which moves inversely to prices, is now trading at the upper end of its recent range.
(Read more: Treasurys flat as investors absorb positive US data)
So did Yellen’s words signal a change in Fed policy, and should bond investors be concerned?
One well known bond watcher says yes. “Going from near total clarity on policy intention to near total uncertainty should have bond investors concerned,” said David Robin, Managing Director at Newedge. “The shift to qualitative guidance increases the uncertainty surrounding policy path determination. While inflation remains generally low, and will insulate the longer end of the curve from inflation premium, the front end of the curve will have to price in an escalating.”
- Maxwell Meyers at Talking Numbers29 days ago
It was all working for gold. And then Janet Yellen spoke. In her first news conference as the Fed chairwoman, Yellen seemed to imply the Fed might raise short-term rates sooner than many market participants expected.
Immediately following those remarks, gold continued to head south, capping off a four-day stretch in which the shiny metal has lost almost 5%. The move also marks quite a reversal for gold, which was in the midst of its best Q1 performance since 1985.
(Read more: Gold settles about 1% lower on Fed, firm US dollar)
While all eye have been fixated on new tech names like Facebook, Tesla and Netflix, quietly, some old-school tech stocks are staging impressive rallies of their own.
While all eye have been fixated on new tech names like Facebook, Tesla and Netflix, quietly, some old-school tech stocks are staging impressive rallies of their own. And one of those companies is catching the attention of a Wall Street legend: Texas Instruments.
(Watch: Top tech trends for 2014)
Ralph Acampora is a veteran investor who's made money in all types of markets. His specialty is technical analysis, and his expertise has earned him the moniker "The Godfather of Technical Analysis." He literally scans through thousands of charts, so it might be surprising that he would choose Texas Instruments, which seems downright unexciting when compared to the likes of a Google or Apple, as his top pick. But the chip giant has been on a decidedly new school rally, rising nearly 50-percent in the last year. And according to Acampora, the run has just begun.
"This is a textbook breakout," Acampora told Talking Numbers.
It’s sleek, fast, and just flat-out gorgeous. But can the new Ford Mustang revive Ford’s stock, which is stuck in neutral?
For those living under a rock, Ford is launching a 50 th anniversary version of the pony car for 2015. The completely redesigned car will offer a choice of 3 different engines, including the first four-cylinder version in 20 years. It’s been a long, slow decline for America’s favorite muscle car. In 1965, Ford sold an astounding 559,000 Mustangs to the American public. In 2009, it sold just over 66,000, despite a snazzy redesign. But since hitting its nadir in 2006, Mustang sales have been on the rise, climbing to 82,000 last year.
(Watch: Alan Mulally: We are reinventing the Mustang)
But enough with the car talk. What will the new Mustang mean for Ford’s bottom line?
“Probably not much in and of itself,” said Chantico Global’s Gina Sanchez. “But it could be a way to get people into the showroom and interested in other models. It is great looking.”
Will we see the NASDAQ hit 5,000 in 2014?
The NASDAQ is trading at its highest level in over a decade and is up more than 1,000 points in the past year. If it can eke out another 1,000 points, or rally 25% from here, it will have retraced all its losses from the dot-com bubble and trade above 5,000.
So how likely is that?
After all, the NASDAQ has soared nearly 20% since June, and many of its largest components like Microsoft and Apple sport P/E ratios that are more on par with names like Coke and McDonald’s than with high flying tech stocks.
Still, some market participants aren’t holding their breath for NASDAQ 5,000 anytime soon.
(Check out: U.S. stocks end lower)
“I think it will get there,” said Gina Sanchez of Chantico Global. “I just don’t think it’ll happen next year, and that has more to do with the extraordinary runs some of these names have had than with valuations.”
Why the constant drumbeat of illegitimacy could fuel the next leg of the Bitcoin Rally.
First it was the gold bugs. Then the fringe economists and media. Now, some very important people and institutions have joined the Bitcoin fray in dismissing the digital currency as nothing more than a bubble du jour. But ironically, that is precisely why some market watchers say the digital currency could have real value.
In just the last 24 hours, former Fed Chairman Alan Greenspan said the virtual currency is worthless, and the People’s Bank of China outlawed the use of Bitcoin by financial institutions. But curiously, as the cries of illegitimacy grow louder, the value of Bitcoin is surging – rising more than 1000% in the last three months.
“The move by the PBoC to ban banks from dealing in Bitcoin could be seen as a blow to its acceptance, or it could signal China is attempting to regulate the currency,” said Brian Kelly of Brian Kelly Capital. “Regulation implies acceptance, which in Bitcoin's case equates to value,” Kelly added. In other words, the more important the protestors become, the more value the digital currency carries.
- Maxwell Meyers at Talking Numbers6 mths ago
Bob Olstein, Chairman and Chief Investment Officer of The Olstein Funds, says Wall Street uses three big myths to lure investors. In this segment, he tackles one of the biggest ones.
There are rules, and there are myths. And Bob Olstein amassed huge wealth not by following the former, but rather by avoiding the latter.
Bob Olstein is the Chairman and Chief Investment Officer of The Olstein Funds. He's been managing and making money for his clients for over forty years. In other words, he's made money in all kinds of markets.
"Investors don't realize just how many myths are out there," Olstein told Talking Numbers. "Basically, there are all these myths that Wall Street uses to lure investors into making investments. And they're just not good advice."
So what are the three biggest myths Bob Olstein says you should avoid? Well, all this week, Olstein is revealing them to Talking Numbers one at a time.
First up, myth number one:
"A good company is a good investment."
This runs counter-intuitive to the whole "buy what you know" mantra that many famous investors recommend.