Inside Peabody Energy’s Bankruptcy

Peabody Energy, a coal juggernaut and one of the world’s largest private-sector coal players with a legacy of 133 years, is now bankrupt. To the shock of many, the once iconic coal company filed for Chapter 11 bankruptcy in St. Louis late this spring. The Question on Everyone’s Mind is, “What happened?” A couple of […]

Bank Stocks Sailing into New Headwinds

Recently, five major banks, including Bank of America (ticker: BAC) and JPMorgan Chase (ticker: JPM), failed to meet the recently rolled-out “living will” standards—a regulatory provision designed to prevent a company financial crisis from mushrooming into an economy-wide meltdown. The new rules are part of the Dodd-Frank Act financial regulatory framework, the full features of […]

Should You Sell in May and Go Away?

  New York, New York asks… Mitch, there’s an old investing adage “Sell in May and Go Away,” that’s based on notoriously weak summer returns. I think about doing this every year—does it make sense?   The “Sell in May” adage makes its way into the equities market narrative every year, so I’m not surprised […]

Corporate America vs. the IRS

Recent news of the Pfizer-Allergan deal collapsing has brought a long-contentious issue back into the spotlight: corporate tax inversions. Corporate inversion (commonly called tax inversion) refers to a company shifting its legal domicile to a lower-tax nation, while maintaining operations in its original country—all in an effort to dodge higher corporate tax rates. The practice […]

Yahoo’s Downfall—What Happened?

Unlike many of today’s Silicon Valley tech giants, Yahoo (ticker: YHOO) came from humble origins. The company was founded in 1995 as a small hobby start-up of two Stanford graduate students, Jerry Yang and David Filo. In an effort to help people find websites more efficiently within categories like government, science, news, entertainment and business, […]

Fed’s Dovish Stance – What Does it Mean?

  It wasn’t even three months ago that the Fed seemed committed to “gradually raising rates” over time. But, when the Fed’s March minutes were released in April, Fed-watchers and investors almost unanimously concluded that the Fed would delay raising rates in their April 26-27 meetings. And, that’s precisely what happened—the Fed only managed a […]

Will ‘Sentiment’ Turn This Bull into a Bear?

I have used this space many times to discuss how fundamentals drive stock prices over the long run. Additionally, in the midst of (sometimes severe) volatility and rising uncertainties that come with it, I’ve often made the point to stay focused on what really matters in terms of equity prices these days including: U.S. GDP […]

Apple Inc. a Rotten Apple?

Another busy week for the market—while the Fed concluded its April meeting with little fanfare, China’s mounting debt garnered attention. Preliminary U.S. GDP readings came out and Apple found itself on the negative side of the news. Get the details in this week’s digest…” Apple Inc. a Rotten Apple? – Apple Inc. did something it […]