stocks to avoid

5 Reasons Why the Shake Shack Stock Price Is Overvalued Now (NYSE: SHAK)

Shake Shack Inc. (NYSE: SHAK) has become the most successful IPO of 2015.

The Shake Shack stock price skyrocketed 119% in its first day of trading and is up 53.9% since then.

But there are five reasons why shares of the burger chain are extremely overvalued...

The Basics

Pick the Stock, Mark a Date on Your Calendar… and Collect Clockwork Profits

In a market like this, buy-and-hold investors often watch volatility eat away at stock gains. But there's a simple way to boost your return on investment while you hold shares for their long-term price appreciation and dividends. One of my favorite strategies is to use leverage to get the absolute maximum profit performance from my […]

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Shelter from These Storms in the Distance

In South Florida, we call the dog days of summer the "mean season", as vicious thunderstorms move over the Everglades every afternoon and attack the east coast with lightning strikes and blinding downpours. We keep our fingers crossed that the storms won't morph hurricanes that can sweep the ocean over the land and cause catastrophic destruction.

After a period of intense hurricane activity in the early 2000s, it's been ten years since we've been hit by any serious storms, and we are being told that strong El Nino conditions will likely protect us again this season. But we know that sooner or later our luck will run out, and we will be back in the eye of dangerous winds and storm surges. And, at least for a moment, we'll wish we lived somewhere other than in paradise.

Stock market investors are experiencing similar feelings after a six year hiatus from reality, courtesy of the Federal Reserve.

Paradise is starting to give way to a very mean season...


Why the Walt Disney Stock Price Is Down (NYSE: DIS)

Money Morning Defense & Tech Specialist Michael A. Robinson appeared on CNBC World Tuesday night, presenting a comprehensive case for why Walt Disney Co. (NYSE: DIS) skeptics are wrong about the company's prospects through the end of the year.

"There's a lot of scared money out there," he said. "I think this is a classic Wall Street overreaction."

Watch the video to find out why...


Planet Fitness (NYSE: PLNT) IPO Date Is Tomorrow – Here's a Breakdown of the Deal

The Planet Fitness (NYSE: PLNT) IPO date is set for tomorrow, Aug. 6.

The leading U.S. gym chain will become only the second publicly traded gym company behind Town Sports International Holdings Inc. (Nasdaq: CLUB).

Here's everything you need to know about the deal before it hits the market...


What to Expect from Tesla Motors Stock After Earnings (Nasdaq: TSLA)

Tesla Motors stock has climbed 17.9% in 2015, as the company prepares to report Q2 earnings on Wednesday, Aug. 5, after the closing bell.

Tesla Motors Inc. (Nasdaq: TSLA) is expected to report an earnings per share (EPS) loss of $0.60. That compares to a profit of $0.11 from last year.

Here's everything else investors need to know about the Tesla earnings report...


In July, Investors Were Guests at the Market's "Red Wedding"

The simultaneous blood baths in commodities and U.S. stocks continued in July but failed to penetrate the skulls of U.S. stock investors who continue to allow themselves to be brainwashed into believing that they can only make money by owning an overbought market.

The S&P 500 (INDEXSP:.INX) recovered all of its June losses, gaining 2.1% in July including 1.2% last week to close the month at 2103.92, not far off its record closing high of 2,134.72. The index is now up 2.2% (excluding dividends) for the year.

The Dow Jones Industrial Average (INDEXDJX:.DJI) is showing greater recognition of the troubled state of the world. And after last week's 0.7% gain to 17,689.86, it is down -0.7% year-to-date.

The Nasdaq Composite Index (INDEXNASDAQ:.IXIC), powered by stocks such as Inc. (NASDAQ: AMZN), Facebook Inc. (NASDAQ:FB), Netflix, Inc. (NASDAQ:NFLX) and other biotech and social media names, is outpacing the other indices with a year-to-date gain of +7.6% after adding 0.8% last week to close at 5128.28.

At this point, investors can no longer ignore the fact that the knives are coming out...

energy sector

Why the Energy Sector's Perfect Storm Is About to Blow Over

There is a "perfect storm" brewing in the energy sector, only in the minds of those who created it.

And as storms go, this one has certainly attracted attention. The ongoing concern over supply gluts both in the United States and abroad has combined with a Chinese stock collapse to drive down the price of oil.

Here's our take on why this nasty weather won't be around for long...

Stocks to Buy

Why Neogen (Nasdaq: NEOG) Stock's 21% One-Day Jump Is Just the Start

just one day following the report. That's because Neogen reported a record high for both earnings and revenue.

Money Morning readers are already familiar with NEOG stock. That's because NEOG has climbed 36.5% since we first recommended it on April 22, 2014.

But the 36% gain we've seen is only the start...

capital gains tax

Weary Investors Signal an Exhausted Bull

It was probably not a coincidence that stocks ended their worst week of the year on the same day that Hillary Clinton gave a speech outlining her capital gains tax proposals. Stocks didn't crater just because of the speech, but it sure didn't help.

As I noted in a Money Morning Special Broadcast sent out just after the speech on Friday, the Democratic presidential candidate proposed to double capital gains taxes on most investors.  There was no mention in her speech of any desire to extinguish the egregious "carried interest" tax that allows her richest private equity donors to pay lower taxes than their secretaries. But her proposal was neither about showing political courage nor intelligent tax and economic policy.

It was merely one more cynical effort to appeal to left-wing Democrats by a woman who is desperately searching for an original or compelling idea to support her candidacy...Someone call me when she finds one.

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