Fascinated with Fastenal? Here’s your play…

How do you trade a stock that never gets cheap? By Dr. Paul Price of Market Shadows Very good companies are not hard to identify. They sport excellent long-term growth in easily measurable business metrics. Industrial and construction supply company Fastental (FAST) surely qualifies as a real winner on that basis based on its excellent […]

Danger: Falling Prices

Danger: Falling Prices By Dr. Paul Price of Market Shadows We tried holding up stock prices but couldn’t get the job done. Market Shadows’ Virtual Value Portfolio dipped by 2% during the week but still holds on to a market-beating 8.45% gain YTD. There was no escaping the downdraft after a major Portuguese bank failed. […]

Prophylactic Close-Outs on Teva Pharmaceuticals

Prophylactic Close-Outs on Teva Pharmaceuticals Better safe than sorry… By Dr. Paul Price of Market Shadows Bombs are flying between Israel and Gaza. This is not new, but it does appear to be escalating along with tensions in the area. Our Virtual Put Writing Portfolio had been short one contract of the TEVA Jan. 2015, […]

Ending Our Quest A Month Early

Ending Our Quest A Month Early We closed out our only August Position in the Put Writing Portfolio. Quest over.  By Dr. Paul Price of Market Shadows Market Shadows Virtual Put Writing Portfolio had sold one option contract on laboratory testing firm Quest Diagnostics (DGX) back on Feb. 19, 2014, when the shares were trading for […]

Confine your ‘Dating’ activities to Match.com and eHarmony

Limit your Target-Dates to Match.com or eHarmony This week’s Barron’s cover story glorifies Target-Date funds. The idea behind the concept is that investors are simply too dumb to effectively manage their own retirement accounts. Buy a target-date fund, though, and one of the big investment managers like Fidelity, Vanguard or T. Rowe Price (TROW), will […]

You Can’t Handle the Truth

By Dr. Paul Price of Market Shadows The Thomson Reuters Insider Sell-Buy ratio went negative a week ago just ahead of all-time highs on the DJIA and S&P 500. It now appears that it was an example of a errant road sign. The Insider signal has generally been much better historically when pointing out good […]

No Holiday Blues For Us

Only the ‘Shorts’ were unhappy today. By Dr. Paul Price of Market Shadows The shortened trading schedule didn’t bother anyone except the perma-bears. The DJIA surpassed 17,000 for the first time ever while the S&P 500 also posted a new record. After a very poor start to 2014, the Nasdaq Composite has drawn into a […]

No Harm, No Foul

Failed to Hit the Target – Made a Small Profit Anyway By Dr. Paul Price of Market Shadows Last September 25th, we thought discount retailer Target (TGT) looked like a good bet to go higher as its Canadian operations improved along with North American economic activity. TGT was trading for $63.34 when the Market Shadows […]

We Added a Touch of Style Today

A Trendy New Name for Our Put Writing Portfolio By Dr. Paul Price of Market Shadows Urban Outfitters (URBN) is a fine company that fluctuates readily in reaction to quarterly results which vary more dramatically than the firm’s long term numbers. The most recent decade’s progresss was quite impressive. Short-term thinkers sent URBN shares to […]

Analysts Can’t Always Be Trusted

Here’s One Way Wall Street Cheats. Los Angeles based Wedbush Securities got some national press last Friday morning when Barrons.com republished their Jun. 26, 2014, research blurb on Bed, Bath & Beyond (BBBY).  The analyst indicated he was now neutral on BBBY @ $61.11 per share. He cut his target price by $8 per share […]

Macro-Economic Factors Make for Bad Market Timing

Would knowing next year’s GDP in advance help you invest? By Dr. Paul Price Data released by Zacks Investments shows advanced knowledge of some pretty important economic information… might actually have led you astray. Since 1933, there have been nine full years which showed negative GDP. Six of those years experienced positive stock market action […]

6 Weeks of Manic-Depressive Insider Trading Action

Bottoms Up is the Way to Go By Dr. Paul Price of Market Shadows Even corporate insiders have been indecisive over the last six weeks as world events and market sentiment shifted rapidly. The Thomson Reuters Insider Sell-Buy ratio has been pretty accurate during that period and over the full year ended June 27, 2104. […]

Glad We Didn’t “Sell in May and Go Away”

Major Averages: Mixed         Market Shadows’ Value Mix: New Record By Dr. Paul Price of Market Shadows The DJIA and SPY posted fractional losses this week while the Nasdaq Composite rose by almost 0.7%. The three indices are all in the black year to date with profits running from 1.66% to 6.09%. […]

Made a Valuation-Based Swap

Sold IBM to Pick Up BBBY By Dr. Paul Price of Market Shadows When you are fully invested and a too-good-to-miss chance to buy pops up, you need to triage your portfolio. Something must be sold  to raise cash for the new position. With Bed, Bath & Beyond (BBBY) down 9% this morning and on […]

Expert opinion… that was dead wrong.

It pays to question assumptions, even from ‘expert’ sources. By Dr. Paul Price of Market Shadows  

Bed, Bath & (Beyond explanation)

Bed, Bath & Beyond – An overreaction? By Dr. Paul Price BBBY management had said previously that they expected the May quarter to come in at $0.92 – $0.96 per share. Actual EPS were right in that range, at $0.93, flat with last year. Fiscal Q2 is also projected to be flattish. The company still expects […]

Simple to Say, Harder to Do

Trading Course 101: Buy Low, Sell High By Dr. Paul Price of Market Shadows Everybody knows they should buy low and sell high, but few traders have the psychological fortitude to actually stick with the plan. When shares are cheap there are always negatives that get well publicized. Fund managers and guest hosts on CNBC […]

A Bad Coach Ride. A New End-of-the-Week Close.

Stocks Rose, Records Fell By Dr. Paul Price of Market Shadows Friday’s afternoon charge left the DJIA and the Standard & Poors 500 at all-time peaks. The Nasdaq Composite remains well under its March 2000, pinnancle but closed at its highest level since then.  Year to date gains in all three major indices are modest, […]

Booked a Gain Early, Sold Some New Puts

Closed the Circuit on JBL, Sold Puts on Oracle By Dr. Paul Price of Market Shadows Jabil Circuits (JBL) rallied enough since last December for us to close our Jan. 2015, $15 puts for just 25-cents per share. With so little left to gain by waiting another seven months, buying to close is exactly what we did […]

Sold Used Cars, Bought Food and Beverages

Market Shadows Exited Autos, Added ConAgra, Panera Bread By Dr. Paul Price of Market Shadows I may be overreacting but I decided to sell both Honda (HMC) and Toyota (TM) today, locking in small gains on each. The current industry climate (recalls galore and sub-prime financing of 6 – 7 year loans) is looking more […]

Shorted Some HSII Puts Today

Shorted Some HSII Puts Today By Dr. Paul Price of Market Shadows We sold six contracts of Heidrick & Struggles (HSII) Jan. $17.50 puts at a price of $1.60 per share in our Virtual Put Writing Portfolio.  Our commitment is to be ready to purchase 600 HSII shares at a net cost of $15.90 per share […]

Insider Trading: Turned Bearish. We’re still finding opportunities.

Company officers are a bit more cautious than a month ago. By Dr. Paul Price of Market Shadows That doesn’t mean there is nothing to trade. Company officers and directors play with real money. They only get to keep winnings on shares they hold for more than six months (shorter-term profits must be disgourged). Trading […]

Friday the 13th – Not Unlucky At All

By Dr. Paul Price of Market Shadows The Market Shadows Virtual Value Portfolio eked out a tiny gain for the week as our two emerging markets positions (EMF & VWO) plus buyout talk on International Game Technology (IGT) gave us a late boost. Our value blend is now up just over 8% year to date […]

A Fashionable Put Writing Play

Ross Stores – High Quality at a Discount Price By Dr. Paul Price of Market Shadows Ross Stores (ROST) has posted outstanding long-term numbers. The company’s balance sheet is as beautiful as their designer clothing. Despite excellent fundamentals, shares that were trading as high as $82 last November were down to $66.69 this morning. ROST […]