SummaryBeware of buying stocks based solely on the magnitude of their positive EPS surprise, as it is unlikely to lead to significant outperformance.
Shorting stocks that miss estimates by wide margins (>50%) and covering within a few days is a viable, though not spectacular, strategy.
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SummaryA new paper by Claude Erb notes that over time the beta, size and value premiums have all declined.
The paper questions whether or not the trades are too crowded with investors demanding too much from a limited supply.
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SummaryReports say authors may have been paid to write favorable articles about micro/small cap biotechs.
Plenty of people contribute content who clearly don’t know what they are doing.
The writing world has gotten flatter.
by Roger Nusbaum AdvisorShares ETF StrategistThere was an interesting […]
SummaryA recent academic study, highlighted in today’s WSJ, validates that crowd-sourced research is predictive of future stock prices.
SA articles and comments were predictive of future stock prices and earnings surprises over all time-frames studied, from one month to three years.
Traditional media, sell-side research, and […]
Advanced Micro Devices, Inc. (AMD) is a leading designer and manufacturer of semiconductor chips, but you might not know that by looking at its $4 stock price. This company has annual revenues of roughly $5 billion and it is a very well-known and respected brand name, which doesn’t seem to fit with the low share price. While this company has […]
In November 2013, Deutsche Asset & Wealth Management, part of Deutsche Bank Group (DB) launched the first ETF listed on NYSE Arca that directly invests in A-shares of Chinese companies, which are traded in Shanghai and Shenzhen. The A-shares market has for many years been off limits to foreigners, but the Chinese government have gradually eased those restrictions. Deutsche has […]
by FS Staff“So the Fed kept filling up the punch bowl and instead of going into inflation of goods prices, it went into an inflation of asset prices. That’s inflation in the same way, but it’s not called inflation. So if the stock market goes up and doubles, we don’t say, ‘Oh, my God-there’s been inflation!’ Or, if housing prices […]
Homebuilders have been on everyone’s radar lately, and for a good reason: They have been outperforming the S&P500 by a wide margin. The good news is that the rally has been propelled by an improvement in the industry and company fundamentals. The bad news is that the last time the sector was on everyone’s radar was 2007. We all know […]
