David Sterman has worked as an investment analyst for nearly two decades. He started his Wall Street career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. While at Smith Barney, he learned of all the tricks used by Wall Street to steer the best advice to their top clients and their own trading desk.
David has also served as Managing Editor at TheStreet.com and Director of Research at Individual Investor. In addition, David worked as Director of Research for Jesup & Lamont Securities. David has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV, and has a master's degree in management from Georgia Tech.
Warren Buffett loves to invest in stable businesses with few competitors. One of his recent favorites is DaVita HealthCare (NYSE: DVA), which operates a network of dialysis treatment centers in the United States catering to patients that have diabetes-induced kidney failure. But DaVita has a big problem on its hands.
As interest rates start to rise, so will net interest margins. It happens every cycle, and investors are only just beginning to warm up the profit boom yet to come.
Repeated predictions of the world's oil shortage in coming years simply failed to account for our ability to tap into deeper, more complex seams of energy, buried under the ocean floor or the Arctic tundra. And frankly, the whole discussion is becoming moot.
An industry shake-out may be at hand. You can get a sense of how close to bankrupt these firms are by looking at their cash burn for the first six months of 2013, and how much cash they have left.
Does the rising level of short interest in Sprint and AT&T have anything to do with possible imminent announcements from Google, GlobalStar, the FCC, Amazon, or others? That's possible. But short sellers may also be looking at other issues.
For struggling global construction firm McDermott International (NYSE: MDR), the path to a turnaround has been spelled out for investors. Now it's time to execute on that plan.
Find great companies and tune out the market noise. The nation's top companies deliver shareholder value on a consistent basis, which puts them among the best candidates we know for the buy-and-hold investor.
Despite the current good news, demographic forces threaten to push the deficit higher later this decade.
Thanks to a dome of cool air that is enveloping much of the eastern United States, natural gas prices are back in freefall, falling roughly $1 per thousand cubic feet (Mcf) since just the start of May to a recent $3.36 per Mcf.
A few years after the global economy emerged from the economic crisis of 2008, commodity prices began to surge, thanks to ongoing robust demand from China. Chief financial officers at mining firms quickly realized that firm commodity prices implied robust future profit streams, and a broad range of new mining projects were put into motion.
To paraphrase the 17th-century philosopher Thomas Hobbes, the tenure of a corporate executive can be "nasty, brutish and short." Indeed, many CEOs and chief financial officers last just a few years on the job before the board decides that fresh blood is needed.
Petrobras has managed to disappoint its backers in new and novel ways. The oil giant vastly overspent to get those big oil fields ready for production, the Brazilian government sought onerous levels of taxes from the company, and investors had to sit idly by as the company issued massive blocks of new shares, leading to hefty dilution.
The question is whether the ongoing challenges in Europe, the incipient slump in China, Brazil and elsewhere, and the impact of our own weakness will lead to further weakness in the business sector.
Analysts have reset their expectations for a basket of commodities. Here's how investors can turn the bear market to their advantage.
Buffett thinks the value of all stocks in the Wilshire 5000 Total Market Index should be worth less than the U.S. gross national product (GNP).
Slowing economic activity in these regions won't likely drag the U.S. economy into recession. But it could lead to slower-than-expected growth, creating a vast disconnect between stock valuations and corporate profit growth.
Do commodities also have a place in your portfolio? After all, they seem to rise and fall with alacrity, and investors often only notice them after they've made sharp gains or plunges.
Though investors were a bit spooked in late December in the face of the budget crisis (which temporarily spiked the VIX), the long-term volatility trend has been gliding lower. Simply put, investors know the typical risks that can derail the market, and they are expecting little drama in coming months.
Chinese stocks surged in the last decade, but dropped sharply by the end of the decade and have been in a trading range ever since. Looking ahead, the share price moves are likely to be less dramatic than a decade ago, simply because the Chinese economy is now much larger and poised for a phase of solid, but not sizzling growth.
When investors have sought to gain exposure to less developed economies, they've largely focused on Brazil, Russia, India and China, mostly ignoring the dynamic growth that has been taking place beyond the "global top 20."
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for September 3rd, 2014 | John Ransom
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for September 1st, 2014 | John Ransom