/* Article Data (Server Side) article (o): [object Object] Content (s): Article Not Found. relatedData (o:Array(16)): 0 (o): [object Object] Headline (s): Judge Grants Request by Viacom Chairman, Board Member for Hearing Over Ouster ... Teaser (s): A Massachusetts judge has granted the request from Viacom Inc. VIA 5.91 % Chairman Philippe Dauman and board member George Abrams for a speedy hearing in their legal battle with Shari Redstone, the daughter of Viacom's controlling shareholder, ... Source (s): Wall Street Journal DocumentDate (s): 30 minutes ago DocumentDate_raw (n): 1464384825000 Link (s): http://www.wsj.com/articles/judge-grants-request-by-viacom-chairman-board-member-for-hearing-over-ouster-from-trust-1464385257 DocumentKey (s): HTTPwww.wsj.com/articles/judge-grants-request-by-viacom-chairman-board-member-for-hearing-over-ouster-from-trust-1464385257 DMSourceID (s): Google ContentType (s): Article 1 (o): [object Object] Headline (s): IRS scam suspects conned victims in at least 21 states Teaser (s): Suspects charged this week in an IRS impersonation scam traveled the country, using dozens of fake names and identifications and collecting millions of dollars in payments wired by unwitting victims from at least 21 states. Source (s): USA TODAY DocumentDate (s): 2 hours ago DocumentDate_raw (n): 1464376050000 Link (s): http://www.usatoday.com/story/money/2016/05/27/irs-scam-suspects-conned-victims-21-states/84999222/ DocumentKey (s): HTTPwww.usatoday.com/story/money/2016/05/27/irs-scam-suspects-conned-victims-21-states/84999222/ DMSourceID (s): Google ContentType (s): Article 2 (o): [object Object] Headline (s): UPDATE 2-Delay to Boeing's KC-46 tanker raises risk of further costs Teaser (s): (Adds details on cause of delay, comment by U.S. military official, stock price). By Alwyn Scott. NEW YORK May 27 The U.S. Air Force said on Friday that Boeing Co will miss its deadline for delivering an initial batch of KC-46 Pegasus aerial tankers ... Source (s): Reuters DocumentDate (s): 3 hours ago DocumentDate_raw (n): 1464375508000 Link (s): http://www.reuters.com/article/boeing-tanker-idUSL2N18O1AW DocumentKey (s): HTTPwww.reuters.com/article/boeing-tanker-idUSL2N18O1AW DMSourceID (s): Google ContentType (s): Article 3 (o): [object Object] Headline (s): Ad tycoon Jean-Claude Decaux, pioneer of self-cleaning public toilets, dies at 78 Teaser (s): jean claude decaux Jean-Claude Decaux is shown at the launch of a bike-sharing program in Nantes, France in 2008. A French tycoon whose company is credited with starting the first bike-sharing program and making the first self-cleaning public toilet ... Source (s): CNNMoney DocumentDate (s): 3 hours ago DocumentDate_raw (n): 1464374885000 Link (s): http://money.cnn.com/2016/05/27/news/companies/jean-claude-decaux-dies/ DocumentKey (s): HTTPmoney.cnn.com/2016/05/27/news/companies/jean-claude-decaux-dies/ DMSourceID (s): Google ContentType (s): Article 4 (o): [object Object] Headline (s): Thermo Fisher Acquisition of FEI Brings "Terrific Complementarity" While FEI ... Teaser (s): Thermo Fisher will pay a 14% premium for the microscope manufacturer, which according to TheStreet's Jim Cramer is an excessive purchase price. Source (s): TheStreet.com DocumentDate (s): 3 hours ago DocumentDate_raw (n): 1464374687000 Link (s): https://www.thestreet.com/story/13588697/1/thermo-fisher-acquisition-of-fei-brings-quot-terrific-complementarity-quot-while-fei-is-a-sell.html DocumentKey (s): HTTPSwww.thestreet.com/story/13588697/1/thermo-fisher-acquisition-of-fei-brings-quot-terrific-complementarity-quot-while-fei-is-a-sell.html DMSourceID (s): Google ContentType (s): Article 5 (o): [object Object] Headline (s): Cramer on Ulta Salon's Beautiful Q1 Results Teaser (s): Jim Cramer says that "the better the cellphone screen, the higher the resolution, the stronger Ulta's results will be." Armie Lee. Source (s): TheStreet.com DocumentDate (s): 5 hours ago DocumentDate_raw (n): 1464367275000 Link (s): https://www.thestreet.com/story/13588612/1/cramer-on-ulta-salon-s-beautiful-q1-results.html DocumentKey (s): HTTPSwww.thestreet.com/story/13588612/1/cramer-on-ulta-salon-s-beautiful-q1-results.html DMSourceID (s): Google ContentType (s): Article 6 (o): [object Object] Headline (s): Yellen says Fed rate hike likely appropriate in coming months Teaser (s): CAMBRIDGE, Mass. The Federal Reserve should raise interest rates "in the coming months" if the economy picks up as expected and jobs continue to be generated, U.S. Source (s): Reuters DocumentDate (s): 6 hours ago DocumentDate_raw (n): 1464362220000 Link (s): http://in.reuters.com/article/us-usa-fed-yellen-idINKCN0YI1TX DocumentKey (s): HTTPin.reuters.com/article/us-usa-fed-yellen-idINKCN0YI1TX DMSourceID (s): Google ContentType (s): Article 7 (o): [object Object] Headline (s): Verizon Strike May Depress U.S. Jobs Report, Labor Data Show Teaser (s): The walkout by Verizon Communications Inc. employees last month pushed the number of striking U.S. workers to the highest in more than four years and could depress the May jobs numbers slated for release next week, data from the Labor Department ... Source (s): Bloomberg DocumentDate (s): 7 hours ago DocumentDate_raw (n): 1464361319000 Link (s): http://www.bloomberg.com/news/articles/2016-05-27/verizon-strike-may-weigh-on-u-s-jobs-report-labor-data-suggest DocumentKey (s): HTTPwww.bloomberg.com/news/articles/2016-05-27/verizon-strike-may-weigh-on-u-s-jobs-report-labor-data-suggest DMSourceID (s): Google ContentType (s): Article 8 (o): [object Object] Headline (s): US consumer sentiment jumps in May to highest in year Teaser (s): In this Wednesday, May 18, 2016, photo, shoppers carry their bags through the Downtown Crossing of Boston. On Friday, May 27, 2016, the University of Michigan issues its monthly index of consumer sentiment for May. Source (s): STLtoday.com DocumentDate (s): 7 hours ago DocumentDate_raw (n): 1464359175000 Link (s): http://www.stltoday.com/business/national-and-international/us-consumer-sentiment-jumps-in-may-to-highest-in-year/article_9583a62c-fa94-5e89-86f4-235996dfd761.html DocumentKey (s): HTTPwww.stltoday.com/business/national-and-international/us-consumer-sentiment-jumps-in-may-to-highest-in-year/article_9583a62c-fa94-5e89-86f4-235996dfd761.html DMSourceID (s): Google ContentType (s): Article 9 (o): [object Object] Headline (s): US economic growth revised higher in first quarter Teaser (s): WASHINGTON U.S. economic growth slowed in the first quarter although not as sharply as initially thought, as a surge in home building and steady inventory accumulation partially offset the drag from a steep decline in business investment. Source (s): Reuters DocumentDate (s): 9 hours ago DocumentDate_raw (n): 1464352849000 Link (s): http://www.reuters.com/article/us-usa-economy-idUSKCN0YI1JQ DocumentKey (s): HTTPwww.reuters.com/article/us-usa-economy-idUSKCN0YI1JQ 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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