Should you purchase dividend stocks at 52 week highs?

Many investors I know follow different investment principles, such as that to “Buy low, sell high” and “Buy and hold forever”. To many investors, purchasing dividend paying stocks at 52 weeks highs or all-time-highs seems like anathema, since it would run contrary to their beliefs of buying low. I expect businesses I own to keep expanding, selling more products, generating higher revenues and…

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Diamonds: the Gift That Keeps Giving

Diamonds: The Gift That Keeps Giving

By Tim Maverick, Commodities Correspondent

Still thinking about that perfect Christmas gift for someone special? Still mulling over a good investment going forward?

Two distinct questions with two totally different answers, right? Maybe not… Diamonds could be the answer to both.

For centuries, diamonds have served as a preserver of wealth, along with gold and silver. And like precious metals, diamonds are also portable and usually liquid.

Along with being a special gift, diamonds can be a great portfolio diversification tool. Especially now that the outlook for diamonds is rather rosy, according to the consultancy Bain & Company.

A Sparkling Outlook

Bain says in a recent report that demand for diamonds is strongly increasing in the top three markets for diamond jewelry – the United States, China, and India – at a high single-digit rate for 2014.

China is quickly catching up to the United States as the No. 1 importer, as giving diamond engagement rings becomes a part of mainstream Chinese culture. Such a practice was practically unknown a mere decade ago.

China alone now accounts for 15% of the global diamond market, from less than 3% in 2003. Most experts believe the combination of the Chinese and Indian markets will equal U.S. diamond demand in the next decade or so.

Against this backdrop, there’s a rather limited supply growth. There hasn’t been a major diamond discovery since 1997. Last year, rough diamond output – measured in carats – rose by only 2%.

Going forward, Bain agrees with others in the diamond industry who say that, beginning in 2019 or 2020, diamond output will actually decline by about 2% annually. It’s a result of aging mines, with some major mines having only about 10 years of life left.

De Beers, which is part of Anglo American PLC (AAUKY), said in September, “Unless major new discoveries are made in the coming years, supply can be expected to decline gradually from 2020.”

Stock Up Early

So how can individuals invest in diamonds?

Of course, one can buy into a diamond mining company. In the past, I’ve mentioned both Dominion Diamond (DDC) and Mountain Province Diamonds (MDM).

But there’s another way that allows investors to directly invest in high-quality diamonds…

It’s a site called InvestDiamond.com, which opened its door at the start of this year and has about 2,000 members. The site is an offshoot of LinGold.com, which allows investors to purchase gold directly online.

Instead of buying a whole diamond (very expensive), InvestDiamond allows their members to purchase as little as 0.001 carat of a certified, investment-grade diamond. That comes to around $ 15!

Of course, there are fees on both buying and selling. But if you sell your diamonds to another member, the fee is only 1% instead of 7%.

The diamonds are sourced from Antwerp and are stored in a Swiss vault in a free port zone (which avoids value-added taxes).

Investors should always do their own due diligence before investing money at InvestDiamond or any other company, but it does look as if the company has come up with a good idea – investing in diamonds is no longer just for the elite, but also for everyday investors.

And “the chase” continues,

Tim Maverick

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By Tim Maverick


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Apple Analysis: Free Versus Levered Free Cash Flow

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What dividend stocks would I buy if I were just starting out as an income investor?

I have been investing in dividend growth stocks and discussing dividend growth stocks on this site since early 2008. I have learned that dividend investors need to be flexible, and constantly be on the lookout for attractive investments. This is because companies from different sectors are attractive at different times. In addition, there are many companies within a sector that could have…

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Is This the Last Surge for OvaScience?

OvaScience, Inc.: Is This the Last Surge?

By Richard Robinson, Ph.D., Equities Analyst

Thursday’s stock action saw shares of OvaScience, Inc. (OVAS) soar nearly 23.2%, or $ 8.13, following corporate news that the company fully accomplished its 2014 clinical goals.

Shares of the Cambridge-based company closed the day at $ 43.09 with more than 1.9 million shares trading hands. This compares to the company’s three-month average volume of nearly 200,000 shares.

The chart below illustrates how the company engaged in the discovery, development, and commercialization of new treatments for infertility has nearly gone parabolic with shares rising more than 371.4% year to date.

Discoveries Driving Shares Higher: OvaScience, Inc. (OVAS) Year to Date

Disruptive Technology…

Indeed, the company is greatly benefitting from its disruptive technology, called AUGMENT, which is designed to improve a woman’s egg health by using mitochondria from the patient’s own egg precursor (EggPCSM) cells during in-vitro fertilization (IVF).

From the patient’s point of view, the technology is far superior to current IVF treatments since the patented technology doesn’t require expensive intracytoplasmic sperm injections (ISCI) or grueling hormone booster shots.

And in the company’s press release, the firm reported that it has exceeded its AUGMENT patient goal with more than 150 patients now receiving the fertility treatments.

In 2015, the company expects another 1,000 additional patients to be receiving the AUGMENT treatment at its clinics in North America (Canada), the European Union (the United Kingdom), Turkey, and the Middle East (the United Arab Emirates).

While the treatments are not yet available in the United States, the company reported that the company has a signed commitment from one of the largest IVF clinic networks in Japan, which plans to offer the AUGMENT treatment in 2015.

Entry into the lucrative Japanese market should provide the resources for the company to shore up its financials.

Weak Financials Weighing Down the Stock

Net losses for Q3 2014 were $ 12.9 million, nearly double the net loss of $ 6.9 million reported in the same quarter last year. On a per-share basis, the loss was $ 0.54 compared to a $ 0.40 loss in Q3 2013.

According the company’s filings, the increase in net loss was attributed to higher personnel costs, as well, as additional research and development expenses related to the launch of the AUGMENT treatment, which increased to $ 5.3 million. This compares to R&D costs of $ 3.2 million for the same period in 2013.

But it’s the downward earnings estimates that concern shareholders the most.

Over the past two months, there have been four earnings estimate revisions, falling from -$ 1.71 per share two months ago to -$ 1.95 per share today.

And the disconnect between the stock’s price and its earnings revisions portend trouble for the stock on the horizon.

Now, don’t get me wrong. Long term, this stock will continue to rise as the technology proves successful in the treatment of infertility.

But for now, OvaScience’s weak financials and still rather limited market means the stock has gotten ahead of itself and will likely pull back before continuing its climb higher.

This means that investors should avoid buying this disruptive technology stock until share prices come back to ground.

Until then, the only thing this stock will conceive is volatility.

Good investing,

Richard Robinson

The post Is This the Last Surge for OvaScience? appeared first on Wall Street Daily.
By Richard Robinson


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Compounding or Confounding: The Agony of the Sale

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3 Things That Can Help McDonald’s Hit A Home Run

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September 2014: The Month SolarCity Residential Rooftop Solar Beat The US Grid Everywhere

Long Investing Ideas from Seeking Alpha

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How to Combat Autism: Enter the “Therapy Cave”

How 3-D Virtual Reality Therapy Helps

By Martin Denholm, Editor-in-Chief

This time next week, millions of kids will be happily bashing away on their new videogame consoles and games.

For many, gaming is nothing more than escapism and entertainment. A chance to get out of the real world for a while and play sports, race cars, or beat people up.

But for some kids, gaming is serious business.

I’m not talking about those geeks you find at the arcade.

I’m referring to kids who actually need the distraction of the gaming world to help them focus in the real world.

Children who suffer from conditions like autism and Down syndrome.

And they’re getting some essential therapy, thanks to a cave in Poland.

But this is no ordinary cave…

To the Therapy Cave, Batman!

Due to the difficulties that autistic children have in focusing and interacting with humans in the real world, scientists at the Silesian University of Technology have designed a special 3-D cave that transports them into a virtual world, and helps them concentrate on therapeutic exercises.

The cave is basically a virtual reality world that’s based on simulators that are used to train soldiers.

The idea is that it keeps the children stimulated by constantly triggering their imagination.

One of the scientists behind the cave, Piotr Wodarski, says, “A child entering our [cave] activates certain motion sequences, which allows the optical system to measure where the segments of the body are… so they match the location of the objects with the reach of a palm or the position of the head of the person.”

For example, the children are asked to move colored building blocks around in a more interactive way than they would do in a regular therapy session.


Fellow creator of the virtual reality therapy cave, Marek Gzik, says, “Getting through to these children can be difficult. But thanks to this technology, they open up, and we can diagnose their problems properly, in detail and objectively. We measure the mobility in their joints, for instance, and then see which methods of rehabilitation are most efficient.”

Further refinements to the system will include customizing it a little more, in order to adapt to each child’s individual needs and varying levels of mental and physical development.

Ultimately – and ideally – they want children to be able to use the virtual reality system with headsets in the home.

Gaming and virtual reality is used to entertain… it’s used to train soldiers, pilots, and law enforcement in simulators… and it’s used to provide essential learning and therapy to kids who’d otherwise be lost in the real world.

Cheers,

Martin Denholm

The post How to Combat Autism: Enter the “Therapy Cave” appeared first on Wall Street Daily.
By Martin Denholm


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Should I hold on to American Realty Capital Properties (ARCP)?

There have been some recent developments over at American Realty Capital Properties (ARCP). First of all, on Monday, the REIT said Nicholas Schorsch, its founder and chairman, and David Kay, its chief executive, stepped down. Chief Operating Officer Lisa Beeson also resigned. The happened approximately six weeks after American Realty Properties disclosed accounting irregularities that erased more…

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