Pointing Fingers and Liability

Posted on June 5, 2015 | Stock Superstars Report

The banking industry as a whole has not been particularly forthcoming about their litigation reserves and how much has been paid out of them. The Securities and Exchange Commission (SEC) has not issued a call for lenders to be more forthcoming about their litigation exposure as it has for other vulnerable areas of public companies, particularly banks. JPMorgan Chase disclosed that its litigation reserve in October 2013 was $23 billion, before a large settlement.

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Value Is In, Plus Changes to the Portfolio

Posted on May 29, 2015 | Stock Superstars Report

The June SSR Monthly Report is now available at the SSR website. There is one new portfolio deletion and one new portfolio addition to announce.

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Flying into Turbulence

Posted on May 22, 2015 | Stock Superstars Report

Each industry has its own unique concerns. Price wars and excess capacity are the ghosts from Christmases past that have killed profits for the airline industry. Previous price wars and excess capacity have resulted in billions of dollars of losses for the industry. Any mention of either or both of those can send investors fleeing, as we saw this week.

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Buybacks and Earnings per Share

Posted on May 15, 2015 | Stock Superstars Report

Stock buybacks result in fewer shares outstanding, which boosts earnings per share growth to the extent that the number of shares repurchased is not offset by the issuance of new shares. The growth in earnings per share will be higher than that of net income when repurchases are made, because each share still outstanding will have a larger stake of total earnings.

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Cash in the Bank, but What to Buy?

Posted on May 8, 2015 | Stock Superstars Report

While we don’t generally talk about market rumors (otherwise we would have time to talk about nothing else!), when one of the SSR portfolio’s holdings is the subject of speculation and it moves the share price significantly, we realize that you probably have questions.

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Moving on Up, Plus Changes to the Portfolio

Posted on May 1, 2015 | Stock Superstars Report

The May SSR Monthly Report is now available at the SSR website. There are 2 new portfolio deletions and 2 new portfolio additions to announce.

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Diversification Pays Off

Posted on April 24, 2015 | Stock Superstars Report

It can perhaps get tiring to hear about the importance of proper diversification, but earnings season reemphasizes its importance. While the SSR portfolio posted a nice gain this week, handily beating its benchmark, there were a couple of bumps in the road, so to speak.

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Breaking Up Is Hard to Do

Posted on April 17, 2015 | Stock Superstars Report

Hedge fund Jana Partners, which has a reputation for being an activist shareholder, recently urged Qualcomm (Group 4: QCOM) to split into two companies in a letter to Qualcomm’s shareholders and board of directors. Hedge funds recommend this kind of action when they believe that the pieces of the company are worth more than the whole.

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Jumping Merger Activity Snags SSR Holding

Posted on April 10, 2015 | Stock Superstars Report

Mergers and acquisitions (M&A), which are up 25% year over year, grabbed the headlines again this week as several large deals were announced.Seven years removed from the financial crisis, the aftereffects have mostly faded and companies have regained the confidence to make acquisitions

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Springing into the Second Quarter

Posted on April 3, 2015 | Stock Superstars Report

The first quarter came to a quiet close this week as quarterly earnings trickled in from a small group of early reporters. The first SSR holding to release earnings was Micron Technology (Group 4: MU), which reported earnings on Wednesday.

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