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Long Beats Short Which of these stocks gained
+145.7% in just four short months--+400% for investors
who got in a little earlier--after winning approval from
the U.S. Food and Drug Administration for an enzyme that
can be used in the production of beer and wine?
A.)
Dyadic International (DYAI)
B.)
Amgen (AMGN)
C.)
Genzyme (GENZ)
D.)
Gilead Sciences (GILD)
E.)
Biogen Idec (BIIB)
Rise of the Dead
The financial meltdown has left many industries looking
like shells of their former selves. Some investors in
these industries look like shells of their former
selves, too. But which of these sectors is bouncing back
hard, more than doubling since hitting bottom this
March, in contrast to the broader S&P 500's advance of
just +62% since then?
A.)
REITs
B.)
Treasurys
C.)
Preferred stock
D.)
Investment-grade bonds
E.)
TIGRs
Around the World in 80 Days
To say emerging markets are on fire is an
understatement. Which of these countries rules the
leaderboard, posting amazing year-to-date returns of
+114%?
A.)
Andorra
B.)
Brazil
C.)
Indonesia
D.)
Peru
E.)
Ethiopia
Calling All Investors
Even in the grip of a deep recession,
sales, profits and cash flows all set new records for
this little-known tech company. While revenues advanced
+16% last year, earnings rose at three times that pace,
climbing +48% to hit $0.71 per share. Which one was it?
A.)
NaviSite, Inc. (NAVI)
B.)
Agilsys, Inc. (AGYS)
C.)
ATS Corporation (ATCT.OB)
D.)
Skyworks Solutions (SWKS)
E.)
Elron Electronic Industries, Ltd. (ELRN)
Tech Triumph
The pendulum in tech investments has swung from one
extreme to another. But which of these ETFs has climbed
+37% this year and rebounded about +50% from the 2003
bear market?
A.)
iShares S&P Global Technology (IXN)
B.)
Goldman Sachs Networking Index Fund (IGN)
C.)
PowerShares Dynamic Networking fund (PXQ)
D.)
First Trust Dow Jones Internet Index (FDN)
E.)
ProShares Ultra Semiconductor (USD)
Home and Abroad
India's defense spending is usually
pretty low on the list of things that
get investors' attention, but which of
these American companies is making it
one of his top priorities, selling the
country $2.1 billion of maritime patrol
aircraft?
A.)
Acme Corporation (ACME)
B.)
Boeing (BA)
C.)
General Dynamics (GD)
D.)
Motorola (MOT)
E.)
Honeywell (HON)
Mortgage is a Dirty Word
Anything with "mortgage" in the name has spooked
investors during the past year, usually for good reason.
But which of these institutions is paying only 1.96% on
its liabilities and raking in a yield of 4.27% on its
portfolio, all with the support of Uncle Sam, and is
yielding a huge 17.1% to investors?
A.)
Wells Fargo (WFC)
B.)
Freddie Mac (FRE)
C.)
Capstead Mortgage (CMO)
D.)
Ameritrans Capital Corporation (AMTC)
E.)
Washington Mutual (WAMUQ)
Thanks, Uncle Sam
Without question,
certain industries have burned investors over the last
few years like no other time in history. But which
industry index has rebounded more than 90% since diving
more than -70% in March of 2009?
A.) BSE Auto Index (BSE-AUTO.BO)
B.) KBW Insurance Index (KIX)
C.) Standard & Poor's 500
Banks Index (S5BANKX:IND)
D.) Standard & Poor's Retail
Index (RLX)
E.) Dow Jones U.S. Select
Real Estate Securities Index (DWRSF)
New Products Equal New Profits
Research
and development benefits more than
just pharmaceutical companies. For
example, which of these companies
has belted it out of the ballpark
thanks to product development,
posting a wild +4,500% increase in
stock price over the past decade?
A.)
Citigroup (C)
B.)
American Airlines (AA)
C.)
Dell (DELL)
D.)
Hansen (HANS)
E.)
E*Trade (ETFC)
Reversal of Fortune
Just seven years
after receiving the largest IMF bailout on record ($41
billion), which of these countries now has a $12 billion
trade surplus and is one of the world's largest
economies, offering a bevy of double-digit investment
opportunities?
A.)
Australia
B.) Brazil
C.) Cambodia
D.) Denmark
E.) Estonia
A Hot Sector with Low Debt
Companies
with low debt burdens and large amounts of cash on the
balance sheet deserve to trade at a significant
valuation premium. After all, these firms have no need
to sell bonds or take on credit lines to expand. On that
basis, which of these industry sectors is particularly
attractive, with the average S&P 500 stock in this
sector having a debt-to-market capitalization ratio of
just over +23% (compared to the S&P 500 average of
around 50%)?
A.)
Restaurants
B.) Travel
C.)
Technology
D.) Energy
E.) Banking
The Lost Decade
Microsoft, Wal-Mart, Berkshire
Hathaway--they're some of the most
successful stocks of the past two
decades. But there are plenty of
other big winners that might not be
as obvious. For instance, which of
these stocks has posted a
jaw-dropping +1,700% gain since
2001?
A.)
Charter Comms (CHTR)
B.)
Biopure (BPUR)
C.)
Middlby (MIDD)
D.)
Sirius XM Radio (SIRI)
E.)
BroadVision (BVSN)
Thanks, Uncle Sam
Government spending can be
controversial in the investing world, but sometimes it
can create unrivaled opportunities for investors. For
example, which of these companies has raked in a 56.5%
revenue increase since 2006 and a whopping 364.5%
increase in profit over the same period, thanks in part
to the actions of the U.S. Government?
A.)
McDonald's (MCD)
B.)
Ford Motor Company (F)
C.) Vestas
Wind Systems (VWDRY)
D.) The
Medicines Company (MDCO)
E.) MGM
Mirage (MGM)
Digging a Hole to China
If a fund has "China" somewhere in
the name, odds are good that it has
screamed to the top of the charts. For
example, which of these ETFs has posted
annualized gains of +17.4% over the last
decade--enough to quintuple a $20,000
investment into nearly $100,000?
A.) iShares
FTSE/ Xinhua 25 (FXI)
B.) Claymore/Alpha
Shares China Real Estate (TAO)
C.)
iShares FTSE Hong Kong Listed China
Index Fund (FCHI)
D.)
WisdomTree Dreyfus Chinese Yuan Fund
(CYB)
E.)
Templeton Dragon (TDF)
Get Your Motor Running
Investors are
avoiding the battered auto industry like the plague
these days, what with the bailouts, complicated cost
structures, and imminent bankruptcies rippling through
the industry. But not all car makers are under water.
Which of these manufacturers has posted 25% annual
revenue increases from 2003 to 2007 and even sports a
dividend that has risen significantly since it first
began in 2006?
A.) Daimler
AG (DAI)
B.) Tata
Motors (TTM)
C.)
Honda Motor Co. (HMC)
D.) Zap (ZAAP.OB)
E.)
Chicago Rivet & Machine Co. (CVR)
And Now for Some Good
News
Which of these
companies just hiked its latest distribution, has
returned +43% so far this year, has zero debt, and is
sitting on a pile of cash--and sports a juicy
double-digit yield of 10.5%?
A.) Terra
Nitrogen (TNH)
B.) Heritage Commerce
Corp. (HTBK)
C.) Layne Christensen
Co. (LAYN)
D.) Starbucks (SBUX)
E.) Panera Bread (PNRA)
Finding Treasure Island
In ordinary market
conditions, it's nearly impossible to find attractive
companies whose net cash exceeds market cap. That money
would act as a floor, and the negative enterprise value
could entice arbitrageurs to step in and collect a quick
profit. But in this market, the usual rules don't apply.
Leveraged buyouts and other mergers and acquisition
activity has dried up because of the lack of financing
-- leaving deals for the rest of us that would usually
be off the table by now. For instance, which of these
firms has 45 million outstanding shares worth a total of
$135 million even though the firm has accumulated a cash
stockpile (net of a trivial amount of debt) in excess of
$230 million?
A.) Genentech
(DNA)
B.) Palm
(PALM)
C.) General
Motors (GM)
D.) MGM
Mirage (MGM)
E.)
Nam Tai Electronics (NTE)
Up
When They're Down
Record yield spreads have already
begun to narrow, and some bonds and bond
funds have produced impressive
equity-like returns in recent months.
For example, which of these closed-end
bond funds is up close to +50% since
October and sports a yield close to 20%?
A.) BlackRock
Corporate High Yield Fund (COY)
B.) Helios Select
Intermediate Fund (HSICX)
C.) John Hancock Government
Income A (JHGIX)
D.) Thrivent Core Bond A (AAINX)
E.) Van Kampen Limited
Duration A (ACFMX)
Ratio rationale
The market downturn has beaten down asset values,
and funds that are saddled with debt are at risk of
violating certain ratio requirements, particularly one
in Section 18 of the Investment Company Act of 1940.
Under the legislation how much in assets should a fund
have for each $1 of preferred stock issued, and how much
in assets should a fund have for each $1 of bank debt?
A.)
$2 and $3, respectively
B.)
$1 and $1, respectively
C.)
$2 and $2, respectively
D.)
$3 and $3, respectively
E.)
$4 and $3, respectively
Raising the Bar
According to Bloomberg, profit forecasts have shrunk
across the board for every industry. There are now more
than 3,500 companies whose 2009 EPS estimates are lower
today than they were 90 days ago. But which of these
companies is actually raising its earnings estimates
from $3.49 per share in 2009 to $3.80, with some of the
more optimistic projections even calling for $4.00?
A.) Apollo Group (APOL)
B.) General Motors
(GM)
C.) Home Depot
(HD)
D.) Philip Morris
(PM)
E.) Starwood
Hotels (HOT)
A Falling Dollar Can
Mean Big
Dividend Growth
A falling dollar is good news for U.S. investors who
own foreign securities, but you don't necessarily have
to look beyond America's borders to find opportunities.
For instance, which of these commodities producers has
taken advantage of the lower dollar and increased its
quarterly dividend +44% in only three years?
A.)
Endeavour Silver Corp (EXK)
B.)
Intrepid Potash Inc. (IPI)
C.)
New Gold Inc. (NGD)
D.)
Royal Dutch Shell (RDS-A)
E.)
Bunge Ltd. (BG)
Triple-Digit Yield
Growers
Like the rest of the market, income securities have
taken a big hit, leaving many investors scrambling for
higher yields. But not everything has been decimated.
Which of these securities groups has witnessed a +151%
increase in dividend yields between 2007 and 2008?
A.) TIGRs
B.) Preferred
stocks
C.) General
partnerships
D.) TIPs
E.) Utility
stocks
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Top 10
There are a number of iron-clad reasons
inflation is likely headed higher and
the dollar is destined to move lower.
These separate but related macroeconomic
tidal forces can exert tremendous pull
on the market -- and they are both
tugging in the same direction. That's
why the environment is starting to look
conducive for Treasury
Inflation-Protected Securities (TIPS),
but which of these asset classes has
history shown to thrive even more under
these hostile conditions?
A.)
AAA
Corporate bonds
B.)
Commodities
C.)
Real estate
D.)
Small-cap stocks
E.)
Municipal bonds
Stoxx Sectors That Rock
Which of these is the highest yielding group among
all 20 sectors in the Dow Jones Stoxx 600 Index, which
represents companies in 18 European countries?
A.)
European banks
B.)
European telecoms
C.)
European autos
D.)
European energy
E.)
European media
Coming Home to Roost
Everybody knows that outsourcing IT
services to India has helped many American companies
buoy profits, but which of these companies has actually
boosted sales +50% by keeping an army of local reps
available in the United States to personally answer
questions and fulfill certain tasks for American
customers?
A.)
ATA Inc. (ATAI)
B.)
Intrepid Potash (IPI)
C.)
Cognizant Technology Solutions (CTSH)
D.)
VanceInfo Tech (VIT)
E.)
Linear Technology (LLTC)
On Fire
Energy prices go up, and energy prices go down, but
which of these energy sectors has seen share prices
double or even triple off last year's lows and still
offers yields of up to 10%?
A.)
Propane
B.)
Natural Gas
C.)
Diesel Fuel
D.)
Gasoline
E.)
Wind
Mighty Oaks
Most income-seeking investors spend little time
hunting for small stocks, preferring their stocks to be
full-grown. But promising small-cap firms are like tiny
acorns that will one day become towering oaks, and
overlooking smaller companies can be costly. For
instance, which one of these small-caps would have
turned a $25,000 investment into a cool $1 million in
just 10 years?
A.)
Otter Tail (OTTR)
B.)
Fannie Mae (FNM)
C.)
KeyCorp (KEY)
D.)
Interpublic Group (IPG)
E.)
Dillard's (DDS)
A Little Goes a Long Way
The recession has prompted companies to
implement cost-cutting measures -- sometimes drastic
measures -- to survive. Though that makes for tough
times, cutting out the fat also sets many companies up
for incredible profits as the economy recovers. For
example, which of these companies has grown revenues by
+25% in 2009 but, thanks to cost controls, has seen its
operating margins explode 580 basis points to 36%?
A.)
Plantronics (PLT)
B.)
ITT Educational Services (ESI)
C.)
Banta Corp. (BN)
D.)
MGM Mirage (MGG)
E.)
Peace Arch Entertainment (PAE)
The Best of Both Worlds
Which of these asset classes has
trounced the +11% return of the S&P 500,
shining with a robust +21% gain in the
first half of 2009?
A.)
REITs
B.)
Convertible Bonds
C.)
Blue Chip Stocks
D.)
Treasurys
E.)
Commercial Paper
Health Care Reform
Which of these
health care companies delivered an annualized +24.5%,
about twice the average historical return of the S&P, in
the past 10 years, and is poised to add billions more to
its bottom line if Washington moves more people onto
private insurance?
A.)
Continucare CP (CNU)
B.) Neostem
Inc. (NBS)
C.) Mednax
(MD)
D.) DaVita (DVA)
E.) MDS Inc.
(MDZ)
Driving Home a Bargain
Which one of these car stocks is
actually a winner in the industry,
offering a 9.7% yield and 50.5%
year-to-date returns?
A.)
Ford Motor Co. Capital Trust II
Cumulative Conv. Trust Preferred
(F-S)
B.)
General Motors Series G Preferred
(GM-G)
C.)
Hilltop Holdings Preferred Series A
(HTH-PA)
D.)
DaimlerChrysler 7.25% Trust
Preferred Stock (PYO)
E.)
Mills Corp Preferred Series F (MLSFO.PK)
Boldly Go Where No Income
Investor Has Gone Before
Tech stocks don't
fit the typical income investor's profile. But which of
these instruments allow investors to lock in
double-digit yields of 10%, 11%, or 12% and also
participate in the tech rally?
A.) TIPS
B.) TIGRs
C.) SPDRs
D.) STRIDES
E.) ADRs
The Hunt for the Safest Dividend
Both
Wall Street and Main Street are
looking for something they can be
sure of in the year ahead. And for
income investors, that means finding
a safe and rewarding dividend yield.
So which of these companies has
StreetAuthority editor Carla
Pasternak determined to have one of
the safest dividends in the market?
A.)
Verizon (VZ)
B.)
American Capital (ACAS)
C.)
Gannett Co. (GCI)
D.)
Archer Daniels Midland (ADM)
E.)
Fifth Third Bancorp (FITB)
Green Shoots
Investors are
looking for some "green shoots" after a long winter of
discontent. So which of these instruments are up a
remarkable +46% for the year through mid-April?
A.)
Convertible bonds
B.)
Treasurys
C.)
Preferred stock
D.) Blue
chip stocks
E.) TIPs
A Financial Booster
Shot
As governments around the
world scramble to ensure there are adequate supplies of
antiviral medications, all of them wish they had a
vaccine to better protect their populations. Currently
there is no vaccine for things like swine flu, but which
of these antiviral-medication manufacturers has an
effective treatment for H1N1 as well as long-term
prospects for income-oriented investors?
A.)
GlaxoSmithKline (GSK)
B.) Johnson and Johnson (JNJ)
C.)
Chem Rx Corp. (CHRXE.OB)
D.)
Inhibition Therapeutic (IHBT.OB)
E.)
GeoPharma, Inc. (GORX)
Investing with the Stars
There is no
definitive "A-list" roster of superstar value investors.
But if there were, you'd undoubtedly see names such as
Warren Buffett, Bruce Berkowitz, Bill Nygren, Charlie
Dreifus, and Mario Gabelli. But there are lots of other
starts in the sky. For example, which of these fund
managers has delivered a cumulative +150% gain since the
inception of his fund 9 years ago, compared to a -28%
return for the S&P 500?
A.) Abe
Froman
B.) Bruce
Berkowitz
C.)
Steven Cohen
D.)
David Tepper
E.)
Edward Lampert
Star Performers
Some
types of stocks don't just beat the
S&P 500 in down markets -- they
bludgeon the S&P 500. For example,
over the long-term, which class of
stock tends to outperform the
broader market average by +17% in
the year following major market
bottoms?
A.) Large-cap
value stocks
B.) Small-cap
value stocks
C.)
Small-cap growth stocks
D.)
Blue chip stocks
E.)
Tech stocks
Nuts for Brazil
The so-called BRIC
emerging markets -- Brazil, Russia, India and China --
have driven more than their share of the world's
economic growth over the past five years but are either
slowing or slumping now. But there are still some
amazing winners out there. For example, which of these
Brazilian companies recently reported a +12% increase in
earnings and a +23.6% increase new customers?
A.) Gerdau
(GGB)
B.) Aracruz
Celulose (ARA)
C.) Telesp
(TSP)
D.) Braskem
(BAK)
E.) Gafisa
(GFA)
Cashing In
Despite the terrible economy, which of these MLP-focused
ETFs is throwing off about $1,110 in annual income on a
$10,000 investment — about +50% more than the $730 you
would have been getting on an annualized basis last
summer?
A.)
Tortoise Energy (TYG)
B.)
Fiduciary/Claymore MLP Opportunity Fund (FMO)
C.)
BearLinx Alerian MLP Select Index (BSR)
D.)
Kayne Anderson Energy TR (KYE)
E.)
Cushing MLP Total Return Fund (SRV)
Pick-Up Game
India has some important lessons to teach about
sector formation in emerging economies. For example, as
an emerging market grows, which of these industries is
one of the first to develop?
A.)
Aerospace
B.)
Banking
C.)
Restaurants
D.)
Advertising
E.)
Media
Not All Retailers Got
Hammered in 2008
According to the U.S. Commerce Department, the
fourth quarter of 2008 marked the worst retail shopping
season since at least the 1970s. But few would guess
that the best performer in the Dow last year was
actually a retailer. Who was it?
A.)
Big Lots (BIG)
B.)
Wal-Mart Stores (WMT)
C.)
TJX Companies (TJX)
D.)
Williams-Sonoma (WSM)
E.)
Limited Brands (LTD)
Outperforming the
Market
Nearly everything in the investing universe was hit hard
by the market in 2008, but some sectors still managed to
maintain their enviable track records. For example,
which of these iShares funds tracks an index that has
shown impressive annualized gains of +11.4% over the
past five years, versus an annual loss of -2.2% for
the S&P 500?
A.) iShares
S&P Global Utilities (JXI)
B.) iShares
S&P Global Financials
(IXG)
C.) iShares
S&P North American
Technology (IGW)
D.) iShares
MSCI Belgium Investable (EWK)
E.) iShares
Dow Jones U.S. Consumer Goods Sector (IYK)
A Triple-Digit Trend
Which of these
electronics companies has surged +116% in just one year and, despite the
current economic instability, has posted five consecutive triple-digit
quarterly sales increases since the end of 2007?
A.) Sigma
Designs (SIGM)
B.) Avid
Technology (AVID)
C.) Thomson
ADS (TMS)
D.) Harman
International (HAR)
E.) Hubbell
(HUB-B)
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