Chasing Growth Stocks? Lessons From The Pros

UPDATE 2-China Dec fuel stocks rebound after five-month drawdown

Participants take a break between sessions at the annual meeting of the World Economic Forum (WEF) in Davos January 23, 2014.                        REUTERS/Ruben Sprich

“We got a healthy allocation, because investors were worried at owning such a small capitalization stock,” he explained to me recently. Despite his penchant for growth and his conviction that the company and its industry will be game-changers, the sudden surge in Voxeljet’s valuation made it too rich for his blood. So how do the most successful pros navigate the growth-stock conundrum? What last year’s top-performing managers had in common was their willingness to always look past the “noise” of today’s markets. Instead of comparing to a company’s share price to its recent earnings reports or even what it might generate in profits in the coming year, they compare it to what they believe the business could look like in five or even 10 years’ time.

A driver delivers two packages from in Boston, Mass. © REUTERS, Brian Snyder, Files

Crude oil stocks fell 0.87 percent in December over the previous month, Xinhua said. Fuel inventories had thinned for five months in a row through November, and prior to that, stocks had dropped for three consecutive months starting in March, making 2013 a year of repeated inventory draws. The OGP newsletter does not provide outright inventory volumes, and the government rarely discloses levels of either commercial or strategic oil stocks, making it difficult to gauge real demand in the world’s second-largest oil consumer. China’s implied oil demand – refinery throughput plus net fuel imports but excluding changes in inventories – rose 1.6 percent in 2013, or a meagre 150,000 bpd, according to Reuters calculations based on preliminary government data and unrevised 2012 output figures.

Stocks tumble after mixed economic news in the U.S. and disappointing news on China’s economy rattle investors

Industrial & Commercial Bank of China Ltd. slipped 3.4 percent to HK$4.81 as investors in a troubled trust product distributed by the bank met the lenders officials at a private-banking branch in Shanghai , demanding their money amid concerns of a default. Hang Lung Properties sank 5.1 percent to HK$23.10. Profit excluding revaluation gains and deferred taxes fell 18 percent to HK$5.05 billion ($651 million) from a year earlier as the company sold fewer investment properties. Insurance Australia sank 3 top 10 stocks percent to A$5.60 in Sydney.

Asian Stocks Drop After China’s Flash Manufacturing PMI

The menthol debate is extensive but it is unlikely that the FDA will come down hard on the product, there is just too much at stake. You can read more about it here. Foolish summary So overall, apart from the issue of menthol regulation the two factors currently putting pressure on big tobacco stock prices do not look to be of long-term concern. Philip Morris is likely to return to growth after a year of consolidation and the court judgement will hurt big tobacco but it is unlikely to be a game changer. If tobacco’s not your cup of tea One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend paying brethren.

Tobacco Stocks Fell, But Should Investors Worry?

The yield on the 10-year note, which declines as prices rise, fell to levels not seen since before the Federal Reserve began cutting back its bond-buying program. On the domestic front, jobless claims rose slightly less than expected last week, according to the Labor Department, but existing home sales also increased less than expected in December to a seasonally adjusted annual rate of 4.87 million, according to the National Association of Realtors. Analysts had expected 4.90 million existing home sales. Netflix ( NFLX ) was a bright spot for stocks. Netflix shares soared after the company surpassed expectations for fourth quarter earnings and subscribers, and offered an upbeat outlook for the first quarter.


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