investment
An investment is an asset or property acquired to generate income or gain appreciation. Appreciation is the increase in the value of an asset over time. It requires the outlay of a resource today, like time, effort, and money, for a greater payoff in the future or for generating a profit.
An investment involves using capital in the present to increase an asset’s value over time.
Investments may include bonds, stocks, real estate, or alternative investments.
Investments can be diversified to reduce risk, though this may reduce the amount of earning potential.
In business contexts, investments are financial; however, consider how some people spend time to make higher incomes in the future (i.e. invest in a college education).
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Welcome to your latest issue of Power Growth Investor! This month, we feature nine of our 60-plus high-growth buys. Each has strong potential to expand your investment returns. Plus, we also pinpoint a couple of sells.
Thermo Fisher is a top example, and a Power Buy....
Thermo Fisher is a top example, and a Power Buy....
Thermo Fisher’s shares have bounced back from their drop during the March market meltdown. They’re now up 22.1% over the last year.
The fundamentals that made Thermo Fisher a good investment before the COVID-19 downturn remain. And now, the company has just received FDA approval for its coronavirus test....
The fundamentals that made Thermo Fisher a good investment before the COVID-19 downturn remain. And now, the company has just received FDA approval for its coronavirus test....
HP INC. $15 is a hold. The company (New York symbol HPQ; Manufacturing sector; Shares outstanding: 1.4 billion; Market cap: $21.0 billion; Dividend yield 4.5%; Takeover Target Rating: Medium; www.hp.com) took its current form on November 1, 2015, when the old Hewlett-Packard Co....
Foodmaker Post Holdings recently initiated a “carve-out,” using an IPO to sell a portion of its active nutrition business, BellRing Brands. That now pure-play firm makes protein bars, shakes and nutritional supplements.
Post used the proceeds from the sale to pay down its debt and strengthen value for investors....
Post used the proceeds from the sale to pay down its debt and strengthen value for investors....
The stock market turmoil caused by COVID-19 will likely prompt many companies to postpone their upcoming spinoffs or strategic sales. Even so, when business conditions improve, we expect Vonage and Archer Daniels to follow through with their own plans to add investor value.
VONAGE HOLDINGS CORP....
VONAGE HOLDINGS CORP....
SONY CORP. ADRs $62 is still a hold. The Japanese conglomerate (New York symbol SNE; Manufacturing sector; ADRs outstanding: 1.3 billion; Market cap: $80.6 billion; Dividend yield: 0.6%; Takeover Target Rating: Lowest; www.sony.net) has created a new subsidiary called Sony Electronics Corporation to hold three of its businesses—Imaging Products and Solutions, Home Entertainment and Voice, and Mobile Communication.
The reorganization seems to be in response to reports that activist investor Daniel Loeb is taking advantage of Sony’s weaker stock price during the COVID-19 outbreak to increase his stake in the company.
At last report, he held about 2% of Sony, and still wants the company to separate its entertainment businesses (including Columbia Studios and Sony Music) from its electronic-manufacturing operations....
The reorganization seems to be in response to reports that activist investor Daniel Loeb is taking advantage of Sony’s weaker stock price during the COVID-19 outbreak to increase his stake in the company.
At last report, he held about 2% of Sony, and still wants the company to separate its entertainment businesses (including Columbia Studios and Sony Music) from its electronic-manufacturing operations....
Sharp share-price drops due to the coronavirus outbreak will likely encourage activist investors to raise their stake in—and influence on—these three firms (including Sony—see box). However, for reasons outlined below, we advise you to stay on the sidelines, at least for now.
OCCIDENTAL PETROLEUM CORP....
OCCIDENTAL PETROLEUM CORP....
We first recommended Leidos to you as buy in our December 2017 issue at $62; your shares then rose to $125 in February 2020 before the coronavirus outbreak pulled down the market. Even so, Leidos is still up an impressive 50% since our initial 2017 recommendation.
Your long-term prospects with this stock remain strong....
Your long-term prospects with this stock remain strong....
Spinoffs offer flexibility. Spinning off unwanted assets lets the parent company’s managers focus on that part of the business they want to retain. Usually they hold on to operations best suited to their talents.
Spun-off shares often slump when they begin trading. Many investors routinely dump stock they receive in a spinoff....
Spun-off shares often slump when they begin trading. Many investors routinely dump stock they receive in a spinoff....