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Wednesday's "Earnings Beat" Makes This The Perfect "Bad-Market" Tech Stock

In last week’s Private Briefing report Our Experts Show You the Stocks to Pick in a ‘Stock-Picker’s Market’,” Money Map Press Chief Investment Strategist Keith Fitz-Gerald identified SanDisk Corp.(NasdaqGS: SNDK) as one of three stocks to buy in the face of the stock market sell-off.

And now we see why…

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U.S. Economy Archives - Page 73 of 107 - Money Morning - Only the News You Can Profit From- Money Morning - Only the News You Can Profit From.

  • Three Ways to Profit From an Insurance-Sector Rebound

    Regional banks, investment bankers and insurance companies will be key winners in the next phase of an advance that will be characterized by very lukewarm participation by the average private investor.

    Most investors will be surprised by this turnabout – and especially by the insurance-sector rebound.

    Let me show you three ways to profit.

    To find out what companies will profit from this new trend, read on…

  • Playing 'Follow the Guru' Can Be Fun – and Profitable – for Investors

    If you wanted to distill all the world's best investment advice into a single sentence, it would probably come down to this: Follow the leader.

    In short: Follow the guru. That's not just a clever phrase. In fact, if you picked any of the investment world's living legends and copied what they did, odds are you'd be pretty successful over time, regardless of the general market environment during any given short-term period.

    We've whittled the investing wisdom of these three stalwarts – and others – into 15 rules to live by. We offered the first five rules in Part I of this story, which appeared yesterday (Wednesday). Here in today's second installment, we offer the final 10 rules.

  • Playing 'Follow the Guru' Can Be Fun – and Profitable

    If you wanted to distill all the world's best investment advice down into a single sentence, the result would actually be fairly simple:

    In short: Follow the guru. That's not just a clever phrase. In fact, if you picked any of the investment world's living legends and copied what they did, odds are you'd be pretty successful over time, regardless of the general market environment during any given short-term period.

  • The Investing Secrets of Warren Buffett

    Investing icon Warren Buffett is known for the market-beating returns that his company, Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B), has returned over the past few decades. His success is due to some very simple investing strategies that he adheres to religiously. Here are 10 of his best:

  • Treasury to Sell $7.7 Billion Stake in Citigroup in "Orderly and Measured Fashion"

    The U.S. Treasury Department said yesterday (Monday) that it plans to sell the government's $7.7 billion stake in Citigroup Inc. (NYSE: C) this year, bringing the bank one step closer to leaving the bailout program.

    "Treasury intends to sell its Citigroup common shares into the market through various means in an orderly and measured fashion," the Treasury said in a statement. "The manner, amount and timing of the sales under the plan is dependent upon a number of factors."

    The Treasury said it would use a "pre-arranged written trading plan," but did not elaborate further.

  • The Bull Market is Intact and On the Move

    Bears have been scratching for a vulnerable spot in the bulls' narrative in the past few weeks, but have been coming up empty, as they logged a blistering March.

    Sellers tried to sink the market back in February as the long-simmering Greek debt fiasco roared into the headlines, but that didn't work out so hot for them. And early last week they tried again by both highlighting new reports of discord between the European Monetary Union authorities and Greece, and by flogging the news of a Fitch Ratings Inc. downgrade of Portuguese debt.

    At some point, portfolio managers outside of Europe may decide that they care about these matters but for now there has been what you might call a Gallic shrug. Tant pis, as the French say.

  • Obama Reveals $14 Billion Housing Program Aimed at Unemployed and Underwater Homeowners

  • Healthcare Reform Losers: Companies Providing Retiree Benefits Face Multi-Million Dollar Tax Costs

    After sending letters of protest to Congress in the months prior to the healthcare law's approval, U.S. companies are now facing multi-million dollar after-tax hits this year due to a tax provision in the new legislation, labeling them healthcare reform losers instead of winners.

    Part of the new healthcare law places a federal income tax on government subsidies given to companies that provide retirees and their spouses with drug benefit plans. The 28% subsidy was created as Medicare Part D, adding a prescription plan for senior citizens to the Medicare Act of 2003. To encourage companies to continue offering retirees a drug plan, the tax-free subsidy reduced companies' costs. Fewer senior citizens then went through Medicare's prescription program – which would have cost taxpayers much more than the subsidy price.

    Caterpillar Inc (NYSE: CAT) and Deere & Company (NSYE: DE) are just two of the businesses that fought the new stipulations. The manufacturers estimate the tax will cost them $100 million and $150 million this year, respectively. Other companies who will pay handsomely include AK Steel Corp. (NYSE: AKS) with $31 million in charges, and Honeywell International Inc. (NYSE: HON) with an estimated fee of $42 million.

    Consulting firm Towers Watson & Co. (NYSE: TW) estimates these taxes could cost companies about $233 per person receiving drug benefits – a hefty price tag when a company gives benefits to 40,000 retirees, like Caterpillar.

    Overall, more than 3,500 companies offer drug benefits to 6.3 million retirees. Although the tax won't be effective until 2011, accounting practices force companies to recognize the fees in the period in which the law is signed. That means the tax could nab $14 billion from corporate profits in a year when companies were hoping to recover from huge losses during the recession.

  • Money Morning Mailbag: The Capital Wave That Could Blunt the U.S. Recovery

    Question: How can banks justify not giving out mortgage money in light of the fact that they can now qualify their applicants to a level not previously seen? I am talking about literally millions of people applying for loans with 800-plus FICO scores and Loan-to-Value (LTV) Ratios that are better than ever before.

    How can banks and lending institutions take our money and then turn around and shut nearly everyone out – which simply prolongs this recession? Can anyone explain why the present administration and regulatory bodies are not forcing the banks to loan monies to qualified applicants?

    At this rate, we will be dead soon.   Without borrowing, we will die.  

    •  (Signed) Living in Costa Rica

  • JPMorgan Close to $1.4 Billion Tax Refund Deal, Joining Long List of Companies Cashing In

    JPMorgan Chase & Co. (NYSE: JMP) is close to a deal that gives the financial giant a $1.4 billion tax refund, even though it received a $25 billion bailout in 2008. JPMorgan is the latest company to take advantage of the tax refund, which is giving billions to everyone from retailers and airlines to energy companies and homebuilders.

    A little-known provision in a November addition to the 2009 stimulus bill allows companies to apply losses from 2008 and 2009 to taxes paid up to five years ago, expanding the usual two-year limit. The " net operating loss carryback" extends the timeframe into years when companies were profiting and had to pay in each tax season.

    Although companies that received Troubled Asset Relief Program (TARP) aid are not eligible for the tax break – and JPMorgan nabbed a hefty $25 million of those funds – JPMorgan is gunning for part of Washington Mutual Bank's $2.6 billion refund. JPMorgan bought the financial institution's banking operations for $1.9 billion in September 2008, after WaMu became the biggest bank failure in U.S. history and was seized by the Federal Deposit Insurance Corporation (FDIC).