Last week in this column, I discussed why I do not believe the market is in a bubble. I offered several reasons, among them that the market's price-to-earnings (P/E) ratio was not in bubble territory. P/E is the most popular method of valuing a company. You take the company's earnings per share and divide it by its stock price. Read On…
Can you imagine a trading strategy with which you can make more than 300% a year, even if a stock price goes nowhere? Using an options strategy called a bearish call spread, you can. This strategy provides you with a substantial payout if the price of a stock remains below your customized level at an expiration date of your choosing.
Analysts predict that mobile payments could grow from $1 billion last year to more than $58 billion by 2017. Needless to say, the mobile payments industry is gearing up to be a hotbed for profits. But as other companies’ troubled attempts have shown, getting into the payments business is no easy task - even for a company like Apple (Nasdaq: AAPL).
Back in July, we covered rumors that cloud service provider Rackspace Hosting Inc. (NYSE: RAX) was considering taking itself private. At the time, shares jumped more than 7% on the news that the acquisition would have a price tag of up to $6 billion. Let's see how Rackspace scores on our Investment U Fundamental Factor Test now that the acquisition party is over and shares have plunged.