John Dorfman Columns category, Page 6

Suddenly, investors are looking for companies that can survive a possible recession. Corporations with high profitability and low debt seem a pretty good bet. Most corporate chief executives, in a recent Wall Street Journal poll, said a recession has either already begun or will begin in the next 12-18 months....

I recommend about 250 stocks a year in this column, but in a typical client portfolio, I own only 20 to 30 stocks. Readers sometimes are curious about which stocks I own. Here’s a rundown on my current holdings. Communications The world clamors for American entertainment and information. I own...

Chief executives at three regional banks have bought their own companies’ stock last month. That, coupled with the fact that bank stocks were strong in May, suggests that adding a bank stock to your portfolio now might be a good move. First Citizens First Citizens BancShares Inc. (FCNCA) is a...

With the stock market down 18% from its peak as of May 20, now is a good time for a portfolio upgrade. You can weed out losing holdings and get a tax deduction on your 2020 tax return. With the proceeds, you can buy first-rate replacements at prices well off...

Certain predators can’t see their prey if the prey holds still. It’s the same with some investors. Stocks that do nothing for a while might vanish from investors’ consciousness. But stagnant stocks can sometimes be good buys. Hence, my Do Nothing Club. It’s an annual compilation of stocks whose price...

Companies with high debt lived in a sort of paradise in 2019-21. With interest rates extraordinarily low, their debt burden didn’t hurt. Now, it looks as if it was a fool’s paradise.Interest rates are rising, and the debt burden is beginning to bite. I relish low-debt companies. They have little...

Contestants who picked energy stocks did well in my 14th annual stock picking contest. Almost everyone else did badly. My contest is called Dorfman’s Three Stock Derby. Each contestant picks three stocks. Total returns for the three are averaged, and the person with the highest average is the winner. Aside...

Here are some new stocks to consider, spawned by my Old Faithful stock-picking paradigm. Old Faithful is a simple stock-picking tool, but my selections from it in this column have averaged a 21% return over 19 years. To pop up on this screen, a stock must: • Have a return...

The small-stock slaughter continues. In the 12 months through April 14, small stocks fell almost 10%, while large stocks rose 8%. Moreover, the market’s big boys have beaten the small fry in four of the past five years. With inflation roaring, the Federal Reserve raising interest rates and Russia waging...

Few players — stars such as Willie Mays, Hank Aaron, Mike Trout and Mookie Betts — can make baseball’s 30-30 Club. It’s for players who hit 30 home runs and steal 30 bases in the same season. I have a 30-30 Club for companies. To make it, a company must...

For bargain hunters, every stock market cloud has a silver lining. After a rough first quarter, dozens of stocks have descended to what I consider attractive levels. I’ve put five of them on my Casualty List, a quarterly roster of stocks that have been beaten up, and that I believe...

At times like these, when investors are nervous, many will flee to the safety of the biggest, best-known stocks. The 30 stocks in the Dow Jones Industrial Average fit that description. They are chosen for the index specifically because they are industry leaders. Investors have reason to be skittish at...

The Nasdaq Stock Market has a reputation as a home for up-and-comers. In the past year, it’s been more like down-and-outers. The Nasdaq Composite Index fell more than 3% in the 12 months through March 15, while the Standard & Poor’s 500 Total Return Index, widely viewed as a proxy...

Semiconductor chips are a strategic commodity. For the past few years, people have been saying that Intel Corp. (INTC) is at a disadvantage because most of its fabs (fabrication plants) are in the U.S. Chips can be produced more cheaply in Asia. Based in Santa Clara, Calif., Intel is the...

Bruce Springsteen sang that glory days will pass “in the wink of a young girl’s eye.” I was thinking about that song a few days ago when I cleaned out some files and came up a list of the stocks with the greatest market value as of June 15, 1990....

They never see it coming. By “they,” I mean almost everyone. By “it,” I mean a surprise in the economy. As evidence, consider my annual Derby of Economic Forecasting Talent (DEFT), which has just concluded its 19th year. Inflation in 2021 heated up to 7%. Not a single one of...

George Soros recently bought shares of Rivian Automotive Inc. (RIVN). I think he’s wrong. Shares in Rivian, an electric-truck startup backed by Amazon.com Inc. and Ford Motor Co., trade for 6,637 times the company’s revenue for the past four quarters. That’s the kind of multiple you see when investors mentally...

Just as there are no sure winners in the stock market, there are no sure losers. But I can tell you something that’s close. If you want excellent odds of losing your money, invest in a stock selling for 100 times revenue or more. Each year from 2000 through 2006,...

For the past half dozen years, investors couldn’t care less about a company’s balance sheet. But now that interest rates are rising, companies with lots of cash and little debt will increasingly hold the advantage. You’ll find 32 such companies this year on my annual list that I call Balance...

It’s been a rough year for the stock market so far. Here are three stocks that are bucking the downtrend and that also are relatively inexpensive, selling for 15 times earnings or less. These stocks have managed to rise even as the Standard & Poor’s 500 Total Return Index fell...

Jim Cramer is one of the most controversial stock-market pundits and one of the most widely followed. He hosts the “Mad Money” segment on CNBC television and founded The Street.com, a popular financial website. On Jan. 28, Cramer recommended a few stocks that have fallen sharply in this year’s stock-market...

“As January goes, so goes the year” in the stock market. Thus runs a common belief among traders. If you believe it, you’re probably scared right now, as the Standard & Poor’s 500 Total Return Index was down 7.66% in the first three weeks of this year. Take heart. The...

I’ve always liked stocks that have taken a beating. The market has punished them for their sins, but sometimes the market goes overboard. That’s why each quarter I compile my Casualty List, comprising stocks that have been pummeled in the latest quarter, and that I think have major comeback potential....

Suppose your son falls in love with a beautiful Wall Street analyst. What should you do? Don’t try to block the wedding, but don’t take your future daughter-in-law’s advice on which stocks to buy. For more than two decades, I’ve been tracking the fate of the four stocks analysts love...

Investors are keenly aware that growth stocks have beaten value stocks five years in a row. So what am I going to recommend today? Some extreme value stocks. Beginning in 1998, I’ve started the year with the Robot Portfolio, comprising the ten cheapest stocks in the market. My measure of...