The stock market dropped significantly on Sep 9, only to bounce back yesterday. Such volatility is the result of the Fed’s ambiguous stance regarding monetary tightening measures. To top it, profit expectations are down for this year, while stocks remain overvalued.
We are also heading toward the presidential elections, which may lead to a correction. Hence, in order to safeguard one’s portfolio from such uncertainties, we advise investors to bet on low beta mutual funds.
Markets on a Topsy-Turvy Ride
U.S. stocks suffered their worst decline on Sep 9 since the U.K.’s decision to exit the European Union, with all 30 blue-chip companies closing in the red and all 10 sectors of the S&P 500 ending in the negative territory. Rout in equities had pushed both the Dow and the S&P 500 below their 50-day moving averages. One the other hand, both the indices closed more than 1% higher on Monday, with more stocks advancing rather than declining. About 70% stocks advanced on the NYSE, while 27% declined.
best stock for investment: iShares US Regional Banks (IAT)
- [By Keith Fitz-Gerald]
If you’re not comfortable with a single stock, I understand. In that case, consider a regional banking ETF like iShares U.S. Regional Banks ETF (NYSEArca:IAT), which holds positions in 54 regional banks around the country. You won’t get quite the pop of an individual acquisition but, chances are, you won’t lose out either.
best stock for investment: Charter Communications, Inc.(CHTR)
- [By Andrew Tonner]
As one of the group of companies associated with telecom magnate John Malone — who regularly uses complex, tax-efficient corporate transactions to unlock value for shareholders — Liberty Broadband serves as a holding company that controls a diverse set of media assets. The most important of these is Liberty Broadband’s ownership of 25% of Charter Communications’ (NASDAQ:CHTR) total voting power, which effectively makes Liberty Broadband a tracking stock for Charter Communications shares.As such, Liberty Broadband shares have largely mirrored the impressive rally in Charter Communications stock over the past year. Particularly given Charter’s upcoming launch of its own wireless service network, Soros’ investment in Liberty Broadband remains an interesting option as the cable and telecom industries continue to evolve.
- [By Money Morning Staff Reports]
SoftBank also purchased telecom upstart Sprint Corp. (NYSE: S) in 2013. And it is considering deals with other communications giants, including Charter Communications Inc. (Nasdaq: CHTR) and T-Mobile U.S. Inc. (Nasdaq: TMUS)
- [By Matt Hogan]
It has been widely reported that T-Mobile US Inc. (NASDAQ: TMUS) had been in merger talks with Sprint Corp. (NYSE: S), a competitor that is majority owned by Softbank. However, these talks are now on hold as Sprint is negotiating potential deals with two of the largest cable companies in the United States; Comcast Corporation (NASDAQ: CMCSA) and Charter Communications, Inc. (NASDAQ: CHTR). These cable companies are under pressure having lost subscribers due to services like Netflix, Inc. (NASDAQ: NFLX), which recently blew away its second quarter growth estimates.
- [By Adam Levy]
Image source: Getty Images.
It was just a little more than a year ago when Comcast (NASDAQ:CMCSA) was the largest U.S. pay-TV provider. And it wasn’t even close. But after AT&T (NYSE:T) merged with DirecTV, it took over the top spot. Now, AT&T’s rival telecom company, Verizon (NYSE:VZ), is reportedly considering a megamerger of its own with Charter Communications (NASDAQ:CHTR). The move would put the combined company’s total video subscriber count very close to Comcast’s.
The potential merger points to a big hole in Comcast’s service offerings — its lack of wireless service. If customers can save money by bundling their TV, internet, and wireless bills together with its competitors, Comcast stands to lose customers. But Comcast’s management and investors shouldn’t lose sleep over the possibility that its two biggest competitors offer wireless service.
- [By WWW.GURUFOCUS.COM]
For the details of OBERNDORF WILLIAM E’s stock buys and sells, go to www.gurufocus.com/StockBuy.php?GuruName=OBERNDORF+WILLIAM+E
These are the top 5 holdings of OBERNDORF WILLIAM EWorkiva Inc (WK) – 2,369,384 shares, 43.81% of the total portfolio. Shares added by 38.81%AppFolio Inc (APPF) – 839,797 shares, 26.98% of the total portfolio. Shares reduced by 39.22%Liberty Global PLC (LBTYK) – 289,812 shares, 12% of the total portfolio. Herbalife Ltd (HLF) – 145,000 shares, 9.96% of the total portfolio. Charter Communications Inc (CHTR) – 18,758 shares, 7.25% of the total portfolio.
best stock for investment: Royal Bank Scotland plc (The)(RBS)
- [By Jonathan Morgan]
Adidas AG slid 2.9 percent after lowering its profit forecast for 2013. Direct Line Insurance Group Plc lost 2.5 percent as Royal Bank of Scotland Group Plc (RBS) sold a 630 million-pound ($1 billion) stake in the U.K.s biggest car insurer.
- [By Paul R. La Monica]
European banks worse off than 2008? Lamensdorf is concerned about the exposure to bad loans (especially energy company debt) held by big banks such as Royal Bank of Scotland (RBS), Credit Suisse (CS) and Deutsche Bank (DB). He’s shorting all three.
best stock for investment: Intrepid Potash, Inc(IPI)
- [By Lisa Levin]
Friday afternoon, the basic materials sector proved to be a source of strength for the market. Leading the sector was strength from Intrepid Potash, Inc. (NYSE: IPI) and L.B. Foster Co (NASDAQ: FSTR).
- [By Lisa Levin]
Wednesday afternoon, basic materials shares gained by 1.74 percent. Meanwhile, top gainers in the sector included Intrepid Potash, Inc. (NYSE: IPI), and L.B. Foster Co (NASDAQ: FSTR).
- [By Lisa Levin]
Monday afternoon, the basic materials shares surged 0.57 percent. Meanwhile, top gainers in the sector included CF Industries Holdings, Inc. (NYSE: CF), up 7 percent, and Intrepid Potash, Inc. (NYSE: IPI), up 7 percent.
best stock for investment: TRC Companies Inc.(TRR)
- [By Lisa Levin]
Shares of TRC Companies, Inc. (NYSE: TRR) got a boost, shooting up 16 percent to $7.53. TRC posted Q4 earnings of $0.20 per share on revenue of $132.3 million.
best stock for investment: New Residential Investment Corp.(NRZ)
- [By Chris Dier-Scalise]
Thge Vetr crowd upgraded its rating for New Residential Investment Corp (NYSE: NRZ) on Friday from the company's previous standing at 3 stars (Hold), issued 10 days ago, to 4 stars (Buy). Crowd sentiment at the time of the upgrade was mostly positive, with 80 percent of Vetr user ratings bullish.
- [By Sean Williams]
Today’s lawsuit has spilled over to the company’s peers as well. New Residential Investment Corp. (NYSE:NRZ), which invests in excess mortgage servicing rights (MSRs), wound up falling as much as 13% during the day’s trading session. Ocwen is one of the three companies mentioned as being one of the primary servicers in New Residential Investment’s MSRs, according to its 10-K. If mortgage owners or bondholders terminate Ocwen as the servicer, the excess MSRs tied to Ocwen could lose some or all of their value.Altisource Portfolio Solutions S.A.(NASDAQ: ASPS)fell 42%.
- [By Lisa Levin]
Ocwen Financial Corp (NYSE: OCN) shares were also up, gaining 42 percent to $3.25. New Residential Investment Corp (NYSE: NRZ) revealed it owned some servicing rights to the troubled Ocwen Financial. During today's conference call, New Residential’s executive suggested the company will pay $425 million for Mortgage Servicing Rights to Ocwen.