David Sterman

Posted November 01, 2013

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.

Posted October 25, 2013

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.

Posted October 15, 2013

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.

Posted September 30, 2013

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.

Posted September 16, 2013

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.

Posted September 09, 2013

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.

Posted September 05, 2013

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.

Posted August 20, 2013

Despite the current good news, demographic forces threaten to push the deficit higher later this decade.

Posted August 09, 2013

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.

Posted August 01, 2013

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.

Posted July 27, 2013

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.

Posted July 21, 2013

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.

Posted June 29, 2013

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.

Posted April 17, 2013

Analysts have reset their expectations for a basket of commodities. Here's how investors can turn the bear market to their advantage.

Posted April 02, 2013

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).

Posted March 30, 2013

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.

Posted March 07, 2013

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.

Posted January 29, 2013

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.

Posted January 28, 2013

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.

Posted January 20, 2013

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."


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