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.
Upstaging a perpetual 20-year-old blonde is no easy task. Yet it looks like Danish toymaker LEGO Group has finally put Mattel’s (Nasdaq: MAT) Barbie in the backseat. In fact, the LEGO Group’s sales have jumped by 11% during the first six months of the year, edging out Mattel’s $2 billion earnings by $0.01 billion.
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.