/* Article Data (Server Side) article (o): [object Object] Content (s): Article Not Found. relatedData (o:Array(16)): 0 (o): [object Object] Headline (s): Fire At India's Biggest Army Ammunition Depot Kills At Least 17 In Maharashtra ... Teaser (s): Mumbai fire Fire at India's Central Ammunition Depot in Maharashtra has been brought under control Tuesday. In this unrelated photo, Indian rescue teams gather at the site of an explosion and fire that destroyed a chemical plant in Mumbai, May 26, 2016. Source (s): International Business Times DocumentDate (s): 16 minutes ago DocumentDate_raw (n): 1464679800000 Link (s): http://www.ibtimes.com/fire-indias-biggest-army-ammunition-depot-kills-least-17-maharashtra-death-toll-2375972 DocumentKey (s): HTTPwww.ibtimes.com/fire-indias-biggest-army-ammunition-depot-kills-least-17-maharashtra-death-toll-2375972 DMSourceID (s): Google ContentType (s): Article 1 (o): [object Object] Headline (s): VW Profit Rises 3.4% as Carmaker Plans Diesel-Crisis Rebound Teaser (s): Volkswagen AG's profit rose 3.4 percent in the first quarter, the first time the carmaker hasn't set aside billions of euros in provisions since admitting in September to rigging vehicles to pass emissions tests. Source (s): Bloomberg DocumentDate (s): 38 minutes ago DocumentDate_raw (n): 1464678527000 Link (s): http://www.bloomberg.com/news/articles/2016-05-31/vw-profit-rises-3-4-as-carmaker-plans-emissions-crisis-rebound DocumentKey (s): HTTPwww.bloomberg.com/news/articles/2016-05-31/vw-profit-rises-3-4-as-carmaker-plans-emissions-crisis-rebound DMSourceID (s): Google ContentType (s): Article 2 (o): [object Object] Headline (s): UberPool now covers most of central London Teaser (s): Uber's ride-sharing service, UberPool, is now available in a larger patch of London. Whereas before it was limited to a small part of the capital, it now spans all of zone one and zone two, as well as Heathrow Airport. Source (s): Engadget DocumentDate (s): 50 minutes ago DocumentDate_raw (n): 1464677775000 Link (s): http://www.engadget.com/2016/05/31/uberpool-london-zone-one-two/ DocumentKey (s): HTTPwww.engadget.com/2016/05/31/uberpool-london-zone-one-two/ DMSourceID (s): Google ContentType (s): Article 3 (o): [object Object] Headline (s): Flint water worries seep into gardens Teaser (s): Sheila Sanders says she intends to set out buckets to collect rain water to keep her plants irrigated. Sanders says she doesn't trust that Flint water is usable. Source (s): The Detroit News DocumentDate (s): 4 hours ago DocumentDate_raw (n): 1464663791000 Link (s): http://www.detroitnews.com/story/news/michigan/flint-water-crisis/2016/05/30/flint-water-worries-seep-gardens/85178150/ DocumentKey (s): HTTPwww.detroitnews.com/story/news/michigan/flint-water-crisis/2016/05/30/flint-water-worries-seep-gardens/85178150/ DMSourceID (s): Google ContentType (s): Article 4 (o): [object Object] Headline (s): China's Richest Man Ups Privatization Offer As Relisting Scramble Continues Teaser (s): China's richest man, billionaire Wang Jianlin, on Monday raised his offer to purchase shares he doesn't already own or control in his Hong Kong-listed real estate flagship Dalian Wanda Commercial Properties ahead of its expected relisting on a mainland ... Source (s): Forbes DocumentDate (s): 5 hours ago DocumentDate_raw (n): 1464660858000 Link (s): http://www.forbes.com/sites/russellflannery/2016/05/30/chinas-richest-man-joins-scramble-to-relist-offshore-businesses-at-home/ DocumentKey (s): HTTPwww.forbes.com/sites/russellflannery/2016/05/30/chinas-richest-man-joins-scramble-to-relist-offshore-businesses-at-home/ DMSourceID (s): Google ContentType (s): Article 5 (o): [object Object] Headline (s): Viacom board members vow to fight removal attempt Teaser (s): Gearing up for a battle for control of media company Viacom, board members on Monday took the unusual step of vowing to fight an expected campaign by Sumner Redstone and his family to shake up the board. Source (s): Los Angeles Times DocumentDate (s): 6 hours ago DocumentDate_raw (n): 1464656231000 Link (s): http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-viacom-letter-20160530-snap-story.html DocumentKey (s): HTTPwww.latimes.com/entertainment/envelope/cotown/la-et-ct-viacom-letter-20160530-snap-story.html DMSourceID (s): Google ContentType (s): Article 6 (o): [object Object] Headline (s): Asia shares firm but set for near 2 percent monthly loss Teaser (s): SINGAPORE/TOKYO Asian shares recovered from a wobbly start on Tuesday, but remained on track for a monthly loss, while the dollar edged away from recent peaks scaled on expectations the U.S. Source (s): Reuters DocumentDate (s): 7 hours ago DocumentDate_raw (n): 1464655295000 Link (s): http://www.reuters.com/article/us-global-markets-idUSKCN0YM013 DocumentKey (s): HTTPwww.reuters.com/article/us-global-markets-idUSKCN0YM013 DMSourceID (s): Google ContentType (s): Article 7 (o): [object Object] Headline (s): European Shares Swing After China Surges; Dollar Holds Advance Teaser (s): European and Asian stocks gained amid optimism the global economy is strong enough to withstand a boost to U.S. borrowing costs that may come as early as June. Source (s): Bloomberg DocumentDate (s): 8 hours ago DocumentDate_raw (n): 1464651367000 Link (s): http://www.bloomberg.com/news/articles/2016-05-30/dollar-s-ascent-firms-on-fed-outlook-while-gold-tries-to-rebound DocumentKey (s): HTTPwww.bloomberg.com/news/articles/2016-05-30/dollar-s-ascent-firms-on-fed-outlook-while-gold-tries-to-rebound DMSourceID (s): Google ContentType (s): Article 8 (o): [object Object] Headline (s): Carnival's Fathom Cruise Brand Delivers on its Promise Teaser (s): I have to confess my skepticism when I decided to cruise aboard Carnival's new cruise line, Fathom, on a “voluntourism” or “social impact” journey to the Dominican Republic. Source (s): Caribbean Journal DocumentDate (s): 11 hours ago DocumentDate_raw (n): 1464639300000 Link (s): http://caribjournal.com/2016/05/30/carnivals-fathom-cruise-brand-delivers-on-its-promise/ DocumentKey (s): HTTPcaribjournal.com/2016/05/30/carnivals-fathom-cruise-brand-delivers-on-its-promise/ DMSourceID (s): Google ContentType (s): Article 9 (o): [object Object] Headline (s): Verizon Strike to End as Both Sides Claim Victories on Key Points Teaser (s): Verizon workers on the picket line in New York City on April 13, the first day that they went on strike. Credit Nicole Bengiveno/The New York Times. Source (s): New York Times DocumentDate (s): 17 hours ago DocumentDate_raw (n): 1464617174000 Link (s): http://www.nytimes.com/2016/05/31/business/verizon-reaches-tentative-deal-with-unions-to-end-strike.html DocumentKey (s): HTTPwww.nytimes.com/2016/05/31/business/verizon-reaches-tentative-deal-with-unions-to-end-strike.html DMSourceID (s): Google ContentType (s): Article 10 (o): [object Object] WSODIssue (s): |36276|61925|151846|45127098|10808544 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Buffett Banks On Apple Link (s): http://folionation.squarespace.com/news/2016/5/16/buffett-banks-on-apple.html Thumbnail (s): DocumentDate_raw (n): 1463433660000 DocumentDate (s): May 16, 2016 DocumentDate_smart (s): May 16, 2016 DocumentKey (s): 1107-290734296785735688691-7J4TRT6L7LS0UBSQJ62F13LQIN ContentType (s): Article TrackingPixel (s): Teaser (s):

Whatever Buffett wants, Buffett tends to get. And at the moment, he wants a tech company in Cupertino. 

Warren Buffett's circle of competence just got a bit sweeter. On Monday, the billionaire's Berkshire Hathaway (BRK/A) firm submitted its quarterly 13-F filing to the SEC, and it revealed that Apple (AAPL) is now one of Buffett's holdings. At the end of the first quarter of 2016, Berkshire Hathaway had a $1 billion stake of 9.8 million shares in Apple, a notable development considering that Buffett tends to shy away from tech stocks—aside from his ongoing stake in IBM (IBM).

Back in November 1999, Buffett wrote a piece for Fortune where he explained why he didn't bother to invest in tech: essentially, it's difficult for companies to remain competitive for long periods of time, and it's hard to predict which companies will be successful far enough in advance to purchase them at a good price. As a value investor, buying stocks when they're trading lower than their fair value is an integral part of Buffett's investing philosophy.

Apple may not be the first name that comes to mind when thinking about undervalued stocks, but the tech company, which held the title most valuable company earlier this year, is down 10.81% for the year. After reaching a market cap of $534 billion in February, Apple is now worth $514 billion. Shares closed at $93.88 on Monday, a 29.4% decline from the 52-week high of $132.97. As a result, Apple's price/earnings growth ratio stands at 1.09 (typically, a PEG under 1 suggests that a stock is undervalued).

Buffett's investment in Apple comes on the heels of fellow billionaire Carl Icahn's April announcement that he no longer held a position in Apple. Icahn decided to ditch Apple due to concerns over the company's ability to thrive in China. 

Berkshire Hathaway picked up shares in four other companies in addition to its Apple investment. Interestingly, all five companies experienced a net decrease in institutional ownership in the first three months of the year. 

Click on the interactive chart to view data over time. 

 

1. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide.

Market cap at $514.22B, most recent closing price at $93.88.

Net institutional purchases at -35.4 million, resulting in a -1.09% change in ownership in the quarter ending 3/31/2016.

Berkshire Hathaway initiated a position in Apple with 9.8 million shares.

 

2. The Bank of New York Mellon Corporation (BK, Earnings, Analysts, Financials): Provides various financial products and services worldwide. Market cap at $42.80B, most recent closing price at $39.74.

Net institutional purchases at -7.7 million, resulting in a -0.86% change in ownership in the quarter ending 3/31/2016.

Berkshire Hathaway increased its stake by 3.6% to 20.8 million shares.

 

3. International Business Machines Corporation (IBM, Earnings, Analysts, Financials): Provides information technology (IT) products and services worldwide. Market cap at $143.48B, most recent closing price at $149.46.

Net institutional purchases at -10.7 million, resulting in a -1.88% change in ownership in the quarter ending 3/31/2016.

Berkshire Hathaway increased its stake by 0.25% to 81.2 million shares.

 

4. Phillips 66 (PSX, Earnings, Analysts, Financials): Operates as an energy manufacturing and logistics company. Market cap at $41.35B, most recent closing price at $78.68.

Net institutional purchases at -14.3 million, resulting in a -3.73% change in ownership in the quarter ending 3/31/2016.

Berkshire Hathaway increased its stake by 22.9% to 75.6 million shares.

 

5. Visa Inc. (V, Earnings, Analysts, Financials): Operates retail electronic payments network worldwide. Market cap at $185.55B, most recent closing price at $77.80.

Net institutional purchases at -14.2 million, resulting in a -0.79% change in ownership in the quarter ending 3/31/2016.

Berkshire Hathaway increased its stake by 3.6% to 10.2 million Class A shares.

 

(Monthly return data sourced from MOD. Institutional data sourced from Fidelity. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

11 (o): [object Object] WSODIssue (s): |36276|69617|1607179 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): CO2 Emissions Near Scary Threshold Link (s): http://folionation.squarespace.com/news/2016/5/11/co2-emissions-near-scary-threshold.html Thumbnail (s): DocumentDate_raw (n): 1462994760000 DocumentDate (s): May 11, 2016 DocumentDate_smart (s): May 11, 2016 DocumentKey (s): 1107-290734296785735683433-0V96V03QK9C8EAR90E5HT1TF10 ContentType (s): Article TrackingPixel (s): Teaser (s):

Once the global concentration of carbon dioxide reaches 400 parts per million, there's no turning back.

When it comes to greenhouse gas emissions, 400 is the most important number. A recent atmospheric reading from a Cape Grim, Australia measuring station showed that the global concentration of carbon dioxide—the primary greenhouse gas—is nearing 400 parts per million (ppm), an alarming climate change development.

Once the atmosphere reaches that threshold, atmospheric readings will never again dip below 400ppm. The Guardian reports that the northern hemisphere may have already hit 400ppm. This is troubling because carbon dioxide traps heat in the atmosphere (hence the term "greenhouse gas"), so the more carbon dioxide present in the atmosphere, the more likely we are to see an increase in the effects of climate change. 

Supply chains have a large carbon footprint, so embracing decarbonization within the supply chain is one way to significantly reduce emissions. With that in mind, below are three publicly-traded tech companies with the greenest supply chains, according to the Corporate Information Transparency Index's (CITI) 2015 "Greening the Global Supply Chain" report.

The report, which ranked companies in various industries, provides each company with an overall rating between 0 and 100. Each company's score is the sum of its ratings in the following categories: engagement & responsiveness, compliance & corrective actions, extend green supply chain practices, data disclosure & transparency, and responsible recycling.

Click on the interactive chart to view data over time. 

1. Apple Inc. (AAPL): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $509.98B, most recent closing price at $93.42.

CITI ranking: 1.

CITI score: 72.

Highest sub-category score: 14 out of 14 for Push for Corrective Actions.

 

2. Canon Inc. (CAJ): Manufactures and sells network digital multifunction devices (MFDs), plain paper copying machines, laser printers, inkjet printers, cameras, and lithography equipments primarily under Canon brand in the Americas, Europe, Asia and Oceania. Market cap at $30.66B, most recent closing price at $28.37.

CITI ranking: 9.

CITI score: 40.5.

Highest sub-category score: 6 out of 8 for Recycling Used Products.

 

3. Cisco Systems Inc. (CSCO): Designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology industry worldwide. Market cap at $135.16B, most recent closing price at $27.03.

CITI ranking: 18.

CITI score: 18.5.

Highest sub-category score: 9 out of 12 for Respond to & Engage with Public.

 

(Monthly return data sourced from MOD. CITI data sourced from CITI. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

12 (o): [object Object] WSODIssue (s): |59476371|248333|7186257|283359 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Wireless Carriers Look to Cuba and the Future Link (s): http://folionation.squarespace.com/news/2016/5/9/wireless-carriers-look-to-cuba-and-the-future.html Thumbnail (s): DocumentDate_raw (n): 1462824120000 DocumentDate (s): May 9, 2016 DocumentDate_smart (s): May 9, 2016 DocumentKey (s): 1107-290734296785735681436-0KK7UID3STQHU8Q9L4KLT8J5L2 ContentType (s): Article TrackingPixel (s): Teaser (s):

Roaming in Cuba and 5G trials—here's what the big four U.S. wireless carriers are working on these days.

Airplanes, Airbnb and hotels aren't the only U.S. companies with their sights set on Cuba. On Monday, T-Mobile (TMUS) announced that it had entered an agreement with Cuba telecommunications firm Empresa de Telecomunicaciones De Cuba, S.A (ETECSA) and will offer U.S. tourists data, voice and text through roaming while visiting the island this summer.

T-Mobile isn't the first U.S. wireless carrier to offer roaming in Cuba. Verizon (VZ) accomplished that feat in September, roughly nine months after the Obama administration gave telecommunications providers the go-ahead to set up shop. In November, Sprint (S) became the first U.S. wireless carrier to offer direct roaming through a partnership with ETECSA. AT&T (T) is the lone holdout, though a spokesman told Fortune that the company is in talks with ETECSA.

Branching out into Cuba isn't the only exciting development for (most of) these wireless carriers; all of them are testing out 5G wireless connectivity this year. AT&T, T-Mobile and Verizon's trials are currently underway, and Sprint will launch demos at the 2016 Centennial Copa America men's soccer tournament this June.

With that in mind, below is a list of the aforementioned companies along with their year-over-year growth in first-quarter revenue. 

Click on the interactive chart to view data over time. 

 

1. Sprint Corporation (S): Offers wireless and wireline communications products. Market cap at $13.92B, most recent closing price at $3.54.

Year-over-year change in Q1 revenue at -2.55% compared to the wireless telecommunications services average of -3.07%.

 

2. AT&T Inc. (T): Provides telecommunication services to consumers, businesses, and other service providers worldwide. Market cap at $239.44B, most recent closing price at $38.99.

Year-over-year change in Q1 revenue at 24.43% compared to the diversified telecommunications services average of 3.90%.

 

3. T-Mobile US Inc. (TMUS, Earnings, Analysts, Financials): Provides mobile communications services in the United States, Puerto Rico, and the U.S. Virgin Islands. Market cap at $32.79B, most recent closing price at $39.49.

Year-over-year change in Q1 revenue at 10.56% compared to the wireless telecommunications services average of -3.07%.

 

4. Verizon Communications Inc. (VZ, Earnings, Analysts, Financials): Provides communication services. Market cap at $208.58B, most recent closing price at $51.12.

Year-over-year change in Q1 revenue at 0.58% compared to the diversified telecommunications services average of 3.90%.

 

(Monthly return data sourced from MOD. Revenue data sourced from Fidelity. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

13 (o): [object Object] WSODIssue (s): DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Wages Are Growing, But Are They Growing Fast Enough? Link (s): http://folionation.squarespace.com/news/2016/5/6/wages-are-growing-but-are-they-growing-fast-enough-1.html Thumbnail (s): DocumentDate_raw (n): 1462568580000 DocumentDate (s): May 6, 2016 DocumentDate_smart (s): May 6, 2016 DocumentKey (s): 1107-290734296785735679566-2V7SLUVORF4AT5L8509J5D1C8M ContentType (s): Article TrackingPixel (s): Teaser (s):

The April jobs report was weak, though higher wages was a bright spot. Still, all is not well on the wages front.

Everybody's working for the weekend, but most Americans are doing it for lackluster wages. According to an NPR report, citing the Economic Policy Institute, four out of five Americans saw stagnant or declining wages between 2007 and 2014, though, on average, wages for the American worker haven't grown significantly since the early '70s. And for the past six years, annual wage growth has hovered around 2%.

That's why the 2.5% year-over-year growth in hourly earnings in Friday's April jobs report was considered a bright spot amid mixed results, including the lower-than-expected addition of 160,000 new jobs. Though wages grew by 2.5% in January, growth slowed to just 2.2% in February and 2.3% in March. 

Considering the cost of living, the 2.5% increase in wages isn't likely to comfort many American workers. In 2015, the Kaiser Family Foundation discovered that employee deductibles had risen by 67% since 2010, meaning employees are increasingly paying out of pocket for their medical treatments. Given that 81% of health insurance plans have deductibles, this means that an overwhelming number of workers have less money to spend. 

Despite issues with wage growth, the economic recovery has led to a better job market overall: unemployment is at 5% compared to the recession high of 10% in October 2009. Perhaps this helps explain why Americans' perception of their financial situation is evenly split: according to a recent Gallup poll of 1,015 U.S. adults, 50% view it positively, while the other 50% view it negatively. 

14 (o): [object Object] WSODIssue (s): DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Wages Are Growing, But Are They Growing Fast Enough? Link (s): http://folionation.squarespace.com/news/2016/5/6/wages-are-growing-but-are-they-growing-fast-enough.html Thumbnail (s): DocumentDate_raw (n): 1462562940000 DocumentDate (s): May 6, 2016 DocumentDate_smart (s): May 6, 2016 DocumentKey (s): 1107-290734296785735679471-0OC3UMRRR16LCCETBOQ0S1PA12 ContentType (s): Article TrackingPixel (s): Teaser (s):

The April jobs report was weak, though higher wages was a bright spot. Still, all is not well on the wages front.

Everybody's working for the weekend, but most Americans are doing it for lackluster wages. According to an NPR report, citing the Economic Policy Institute, four out of five Americans saw stagnant or declining wages between 2007 and 2014, though, on average, wages for the American worker haven't grown significantly since the early '70s. And for the past six years, annual wage growth has hovered around 2%.

That's why the 2.5% year-over-year growth in hourly earnings in Friday's April jobs report was considered a bright spot amid mixed results, including the lower-than-expected addition of 160,000 new jobs. Though wages grew by 2.5% in January, growth slowed to just 2.2% in February and 2.3% in March. 

Considering the cost of living, the 2.5% increase in wages isn't likely to comfort many American workers. In 2015, the Kaiser Family Foundation discovered that employee deductibles had risen by 67% since 2010, meaning employees are increasingly paying out of pocket for their medical treatments. Given that 81% of health insurance plans have deductibles, this means that an overwhelming number of workers have less money to spend. 

Despite issues with wage growth, the economic recovery has led to a better job market overall: unemployment is at 5% compared to the recession high of 10% in October 2009. Perhaps this helps explain why Americans' perception of their financial situation is evenly split: according to a recent Gallup poll of 1,015 U.S. adults, 50% view it positively, while the other 50% view it negatively. 

Read Next: The Trouble With The Typical Millennial Starting Salary

15 (o): [object Object] WSODIssue (s): |41742|4541440|3346440 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Sell In May and Go Away? Link (s): http://folionation.squarespace.com/news/2016/5/4/sell-in-may-and-go-away.html Thumbnail (s): DocumentDate_raw (n): 1462381200000 DocumentDate (s): May 4, 2016 DocumentDate_smart (s): May 4, 2016 DocumentKey (s): 1107-290734296785735677591-0M1C46PR5VVN098PJJQFKRJCJV ContentType (s): Article TrackingPixel (s): Teaser (s):

Just as schoolchildren learn "April showers bring May flowers," investors know "Sell in May and go away." 

"Sell in May and go away" is one of Wall Street's most beloved cliches. The idea behind the saying is that investors should sell their stocks in May to avoid the seasonal underperformance that takes place between May and October. Per Investopedia, citing the Stock Trader's Almanac, the average return of the Dow Jones Industrial Average is 0.3% between May and October, compared to 7.5% between November and April since 1950.

Of course, following cliches may not be the best investing strategy, especially since past performance isn't indicative of future performance. Take last May, for example. At the end of the month, the Dow and S&P 500 were up 1%, while the Nasdaq gained roughly 3%.

The three indices also had a good May back in 2014; the Dow hit a new high, the S&P 500 rose over 2% and the Nasdaq surged 3.1%. And as Brian Lund pointed out over at Daily Finance, the SPDR S&P 500 ETF (SPY) and the Powershares QQQ ETF (QQQ), which track the S&P 500 and Nasdaq, respectively, rose 6% and 14% between May 2 and September 2, 2014.

On the other hand, following investor selling can be a useful metric when considering a stock. Significant selling by institutional investors, such as hedge funds and mutual funds, and company insiders can indicate increased bearishness towards a stock. Both groups of investors are likely to have a better understanding of the company's specific industry—as well as the various conditions that can affect its success—than the average investor. When insiders sell, lack of faith in the company's future may be why, though there are other possible explanations as well.

Screening for stocks with an uptick in selling by institutional investors and insiders is one way to get a sense of how bearish informed investors are towards a stock. With that in mind, here are three stocks with very negative institutional and insider transactions. That means that the net activity for both institutional and insider transactions has been at least 20% negative. 

Click on the interactive chart to view data over time. 

 

1. Alliance Healthcare Services Inc. (AIQ): Provides outpatient diagnostic imaging services and radiation therapy services in the United States. Market cap at $74.55M, most recent closing price at $7.02.

Insider transactions at -26.68%.

Institutional transactions at -55.05%,

 

2. Lake Shore Bancorp Inc. (LSBK): Operates as the holding company for Lake Shore Savings Bank that provides banking products and services in New York. Market cap at $89.29M, most recent closing price at $14.25.

Insider transactions at -23.15%.

Institutional transactions at -26.61%.

 

3. PharmAthene Inc. (PIP): Engages in the development and commercialization of medical countermeasures against biological and chemical weapons in the United States. Market cap at $156.11M, most recent closing price at $2.40.

Insider transactions at -28.85%.

Institutional transactions at -22.87%,

 

 (Monthly return data provided by MOD. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

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