During my years as a global merchant banker, advisor to governments, financial-news editor and trading-service specialist, I’ve time and again seen the big losses that can result from arrogant executives (Enron), greed-driven strategies (Lehman) and other investments gone wrong.
But what most investors don’t understand is that the fallout from these losses reaches far beyond the losses themselves. You see, that’s money that can’t be deployed into winners.
As one longtime investing adage tells us, if you suffer a 50% loss on a stock, you need that stock to double in price (a gain of 100%) just to get back to even.
And let’s be honest: How many times has one of your stocks doubled – after it took that kind of a beating?
There are many strategies you can use to protect yourself from big losses. Just last week, for instance, I showed you how to bolster your portfolio by investing in companies with strong growth prospects and a record of consistent dividend payouts.
Advisors’ Opinion:
Advisors’ Opinion:
Advisors’ Opinion:
But what most investors don’t understand is that the fallout from these losses reaches far beyond the losses themselves. You see, that’s money that can’t be deployed into winners.
As one longtime investing adage tells us, if you suffer a 50% loss on a stock, you need that stock to double in price (a gain of 100%) just to get back to even.
And let’s be honest: How many times has one of your stocks doubled – after it took that kind of a beating?
There are many strategies you can use to protect yourself from big losses. Just last week, for instance, I showed you how to bolster your portfolio by investing in companies with strong growth prospects and a record of consistent dividend payouts.
Best Companies To Invest In 2012: Majesco Entertainment Company (COOL)
Majesco Entertainment Company develops and markets video game products primarily for family oriented mass-market consumers. The company publishes video games for various interactive entertainment hardware platforms, including Nintendo?s DS, DSi, and Wii; Sony?s PlayStation 3 and PlayStation Portable; Microsoft?s Xbox 360; and personal computers. It also publishes games for various digital platforms consisting of mobile platforms comprising iPhone, iPad, and iPod Touch, as well as online platforms, including Facebook. The company sells its products primarily to retail chains, specialty retail stores, video game rental outlets, and distributors. The company was founded in 1998 and is based in Edison, New Jersey.Advisors’ Opinion:
- By Louis At 2011-10-28Majesco Entertainment(NASDAQ: COOL) is an innovative provider of video games for the mass market, developing a wide range of titles for Sony’s PlayStation, Microsoft’s Xbox and Nintendo’s WII systems. On June 7, COOL announced that it had signed a contract with the NBA to begin development of an original video-game basketball franchise. The stock rose an impressive 32% over the next five trading days while the broader market sold off.However, the stock is down today after reporting weaker-than-expected second-quarter earnings last night, missing consensus earnings estimates by 2 cents. Majesco reported net revenues of $32.1 million for the second quarter ended April 30, 2011, compared with $10.9 million reported for the same period in the previous year. The company’s operating income for the second quarter was $5.3 million, compared with an operating loss of $1.6 million reported for the same period in the previous year. So treat this sell-off as a buying opportunity.
- By McWillams At 2011-10-28Majesco Entertainment makes video games mainly for the family-oriented, mass-market consumer.Majesco’s incredible run this year started on Jan. 11 when the company announced it had shipped more than 500,000 copies of its Zumba Fitness video game title for the Wii, Xbox 360 and PlayStation 3. In late January, the company announced that it regained compliance with the Nasdaq’s minimum bid price requirement for continued listing.
In early March, shares of Majesco climbed higher after the company posted better-than-expected fiscal first-quarter financial results, with revenue jumping to $48.5 million from $29.2 million in the same period a year earlier.
Current Share Price: $3.20 (March 29)
First Quarter Total Return: 315%
Analyst Ratings: Majesco garners a lone “buy” rating from Needham & Co. and a “neutral” rating from Wedbush. Coincidentally, both research firms have a $2.50 price target on the stock.
TheStreet Ratings has a “hold” recommendation on Majesco Entertainment. The research report from March 20 says revenue growth, a largely solid financial position with reasonable debt levels and solid stock price performance are strengths that are countered by the company’s weak cash flow from its operations.
Best Companies To Invest In 2012: Vanguard Natural Resources LLC (VNR)
Vanguard Natural Resources, LLC, through its subsidiaries, engages in the acquisition and development of oil and natural gas properties in the United States. Its properties are located in the southern portion of the Appalachian Basin, primarily in southeast Kentucky and northeast Tennessee; the Permian Basin, primarily in west Texas and southeastern New Mexico; and south Texas. As of December 31, 2010, the company had estimated proved reserves of 69.3 million barrels of oil equivalent, as well as working interests in 2,270 net productive wells. Vanguard Natural Resources, LLC was founded in 2006 and is based in Houston, Texas.Best Companies To Invest In 2012: Emerson Radio Corporation (MSN)
Emerson Radio Corp., together with its subsidiaries, engages in designing, sourcing, importing, marketing, selling, and licensing various house ware and consumer electronic products in the United States and internationally. It offers house wares products, such as microwave ovens, compact refrigerators, and wine coolers; audio products comprising digital clock radios, portable stereo systems, and other audio products; and video and other products, including televisions, digital video disc (DVD) players, mobile electronics, and telephone and telephone accessories. The company provides its products under the Emerson, HH Scott, and Olevia brands. It markets its products primarily through mass merchandisers. The company was founded in 1948 and is headquartered in Moonachie, New Jersey. Emerson Radio Corp. operates as a subsidiary of Grande Holdings Limited.Best Companies To Invest In 2012: Edison International (EIX)
Edison International, through its subsidiaries, engages in the supply of electric energy in central, coastal, and southern California. It involves in developing, acquiring, owning or leasing, operating, and selling energy and capacity from independent power production facilities, as well as conducts hedging and energy trading activities in power markets. The company also invests in energy and infrastructure projects, including power generation, electric transmission and distribution, transportation, and telecommunications, as well as has investments in housing projects in the United States. Edison International offers its services to commercial, residential, agricultural, and industrial customers, as well as to public authorities. As of December 31, 2009, the company served approximately 400 cities and communities, and a population of approximately 13 million people. The company was founded in 1886 and is based in Rosemead, California.Best Companies To Invest In 2012: Pengrowth Energy Corporation (PGH)
Pengrowth Energy Corporation engages in the acquisition, exploration, development, and production of oil and natural gas reserves in the Western Canadian Sedimentary Basin. It primarily explores for crude oil, natural gas, and natural gas liquids in the provinces of Alberta, British Columbia, Saskatchewan, and Nova Scotia. As of December 31, 2010, the company had total proved plus probable reserves of 318.4 millions of barrels of oil equivalent; and had an interest in 8,277 gross producing and 2,463 gross non-producing oil and natural gas wells. Pengrowth Energy Corporation was founded in 1988 and is headquartered in Calgary, Canada.Best Companies To Invest In 2012: II-VI Incorporated (IIVI)
II-VI Incorporated develops, manufactures, and markets high-technology materials and derivative precision components and products worldwide. It offers a line of precision infrared optical components, such as lenses, output couplers, windows, and mirrors for use in CO2 lasers; and one micron laser components, including modular laser processing heads for fiber lasers, YAG lasers, and other one micron laser systems, as well as beam delivery systems. The company also provides near-infrared optics consisting of waveplates, polarizers, lenses, prisms, and mirrors for visible and near-infrared applications, which are used to control or alter visible or near-infrared energy and its polarization; coated windows used as debris shields in the industrial and medical laser aftermarkets; micro optics and photonic crystal parts for optical communications components; optical and photonic crystal parts for instrumentation and laser applications; optical communication components and functional modules for optical communications; DPSS laser for optical instruments, display, and biotechnology; and components for UV Filters used in early warning missile detection. In addition, it offers military infrared optics comprising missile domes, electro-optical windows and subassemblies, imaging lenses, and other components; and visible materials and fused silica; material processing and refinement products, such as selenium and tellurium metals, and chemicals; and thermoelectric coolers (TECs), including single-stage TECs, micro TECs, multi-stage TECs, planar multi-stage TECs, extended life coolers, thermoelectric thermal reference sources, power generators, and thermoelectric assemblies for use in defense, telecommunication, medical equipment, and other industrial and commercial applications. Further, the company provides silicon carbide products consisting of 6H-SiC (semi-insulating) and 4H-SiC (conducting) poly-types. The company was founded in 1971 and is based in Saxonburg, Pennsylvania.Best Companies To Invest In 2012: Ameron International Corporation (AMN)
AMN Healthcare Services, Inc. provides healthcare staffing and clinical workforce management solutions in the United States. The company?s Nurse and Allied Healthcare Staffing segment provides staffing solutions for hospitals and other healthcare facilities, including medical, surgical, specialty, licensed practical or vocational, and advanced practice nurses, as well as surgical technologists and dialysis technicians. This segment also offers allied health professionals under the Med Travelers, Club Staffing, and Rx Pro Health brand names to acute-care hospitals and other healthcare facilities, such as skilled nursing facilities, rehabilitation clinics, and retail and mail-order pharmacies. These allied health professionals include physical, surgical, respiratory, and occupational therapists, as well as medical and radiology technologists, speech pathologists, rehabilitation assistants, pharmacists, and pharmacy technicians. Its Locum Tenens Staffing segment places physicians of various specialties, certified registered nurse anesthetists, nurse practitioners, and dentists on a temporary basis as independent contractors with various healthcare organizations, including hospitals, medical groups, occupational medical clinics, individual practitioners, networks, psychiatric facilities, government institutions, and managed care entities. The company?s Physician Permanent Placement Services segment provides permanent physician placement services to hospitals, healthcare facilities, and physician practice groups under the Merritt Hawkins and Kendall & Davis brand names. This segment also offers specialty offerings, including internal medicines, family practices, and surgeries. Its Home Healthcare Services segment provide home healthcare services to individuals with acute-care illness, long-term chronic health conditions, permanent disabilities, terminal illnesses, and post-procedural needs. The company was founded in 1985 and is headquartered in San Diego, California.Advisors’ Opinion:
- By Bill At 2011-8-26Ameron International Corporation (AMN), a California-based firm that makes water transmission lines, fiberglass-composite pipe for transporting oil, and infrastructure-related products like ready-mix concrete and lighting poles — just the kind of company that could benefit from the federal stimulus package’s infrastructure funding.Having lived through both his own family’s fall from financial grace (following his father’s death when Benjamin was a young man), and, later, through the Great Depression, it’s no surprise that Graham focused as much on preserving capital and limiting losses as he did on producing big gains. He liked stable, conservatively financed companies, not speculative gambles, and Ameron fits the bill. One example of why: its strong current ratio of 2.87. Graham used the current ratio (current assets/current liabilities) to get an idea of a company’s liquidity (and the credit crisis has shown us all how important liquidity is).
Best Companies To Invest In 2012: The Wendy’s Company (WEN)
The Wendy’s Company operates as a quick-service hamburger company in the United States. The company, through its subsidiary, Wendy’s International, Inc., operates as a franchisor of the Wendy’s restaurant system. As of December 26, 2011, the Wendy’s system comprised approximately 6,500 franchise and company restaurants in the United States and the United States territories, as well as in 26 other countries worldwide. The company was formerly known as Wendy’s/Arby’s Group, Inc. and changed its name to The Wendy’s Company in July 2011. The Wendy’s Company was founded in 1884 and is headquartered in Dublin, Ohio.Advisors’ Opinion:
- By Hilary Kramer At 2011-10-28Fast food franchisor Wendy’s/Arby’s Group(NYSE: WEN) rallied after its most recent earnings report revealed some optimism on the hoped-for sale of Arby’s and promising new hamburger offerings, but it has since given back all of those gains and more on overall market weakness.I continue to feel the company is getting back on the right track with its menu changes (its new fries have already been well received), which will increase customer traffic. I like the stock at current prices and expect some of these catalysts to have more of an impact in the second half of the year. There remains the possibility as well that Wendy’s will get acquired.
