Barely a week after it set another record high, the Dow just suffered its worst one-day loss in its entire history.
While the latest turmoil hasnt reached the crisis level by any means, Ive been warning about a correction for months.
Warnings about an imminent collapse of developed economy stock markets, especially the U.S. markets, have been everywhere.
Whether you use Shillers CAPE ratio, Warren Buffetts preferred market-cap-to-GDP ratio, or traditional P/E ratios, markets were overpriced and ready to fall. Of course, that did not mean they would fall anytime soon, or on anyones timetable.
As we saw in the dot.com bubble of 1996-2000, and the housing bubble of 2002-2007, so-called irrational exuberance can last longer than the skeptics believe. However, some warnings perhaps deserve more attention than others.
Anyone can sound warnings about doom and gloom or stock market crashes. But those Cassandras are not worth listening to unless they offer facts and analysis to support their views. Opinions without something solid to back them up are just that opinions. The warnings I pay most attention to are those from establishment insiders.
Hot Warren Buffett Stocks To Buy Right Now: Green Mountain Coffee Roasters Inc.(GMCR)
- [By David Sterman]
But for short sellers in Green Mountain Coffee Roasters (Nasdaq: GMCR), there's another outcome: They've been badly burned as shares have surged, but they insist they've been right all along, and it's only a matter of time before the stock crashes and burns.
- [By Jonas Elmerraji]
As badly as short sellers want to hate on Green Mountain Coffee Roasters (GMCR), betting against the multiyear rally in this $12.7 billion beverage stock has been about as wise as eating from a box with a skull and crossbones on it. And as a bull market continues to lift all ships, Green Mountain’s ship is going to keep floating above the others.
Green Mountain owns Keurig, the brand of beverage brewers that use self-contained K-Cups to make coffee, teas, and other drinks. While Keurig’s “fad” status has certainly helped tip the deck against GMCR, the fact remains that the firm has done most of the hard work in getting Keurig machines accepted by consumers. With brewers essentially ubiquitous at this point, the firm is able to make money on its cash cow: the K-Cups.
Keurig’s individual-serving cups have big margins and a big installed base. With huge convenience and the relatively large sunk cost that consumers have put into their Keurig machines, it’s a sticky business with big switching costs. Consumers who buy a Keurig are much less likely to spend the money on a competing brand of proprietary coffee pods.
I’ve said before that GMCR is far from cheap right now. But its momentum trajectory is showing few signs of fizzling out, especially as direct competitors such as Starbucks (SBUX) continue to sell K-Cups of their own. Don’t bet against GMCR in September – buy this Rocket Stock instead.
- [By Canadian Value]
So Im going to stick my next out and share my views on four battleground stocks that are among my favorite shorts: World Acceptance (WRLD), Green Mountain (GMCR), Herbalife (HLF), and InterOil (IOC). And next week at the Value Investing Congress I will present another short, my largest.
Hot Warren Buffett Stocks To Buy Right Now: QCR Holdings Inc.(QCRH)
- [By Keith Fitz-Gerald]
My favorite at the moment is QCR Holdings Inc. (NasdaqGM:QCRH).
Founded in 1993 and headquartered in Moline, IL, the bank has a strong regional lending base in Illinois and Iowa that should grow in line with the broader national economy. I particularly like the fact that the bank considers itself relationship-driven at a time when trust is in short supply.
Hot Warren Buffett Stocks To Buy Right Now: International Lithium Corp. (ILHMF)
- [By SEEKINGALPHA.COM]
International Lithium [TSXV:ILC] (OTCPK:ILHMF) – Price = CAD 0.13
International Lithium (ILC) is a small lithium explorer/project generator with four joint venture lithium projects, and one fully-owned lithium project: