GoPro is Not the Way to Go

While the GoPro’s product is cool there’s no reason to think that this camera will stay ahead of the pack, or will be able to withstand the slumping demand that will always be a threat from improving smartphones.

As originally published at Money Morning
This “Pop” Stock Is One to Avoid
By KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning

My friends were going camping recently and their bags looked like something from a space shuttle, with cords sticking out of nearly every pocket.

“What on earth have you got in there?” I asked.

A GoPro, chargers, mounting stands, waterproof containers… I tuned out the rest, to be honest.

Just like I tuned out GoPro’s IPO, and will continue to ignore the stock for the foreseeable future.

It’s simply not worth the investment. A trade, maybe, and only then if you’re nimble and have great risk management discipline. Here’s why…

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    Apple & IBM Walking Arm in Arm to Where?

    Don’t be so quick to believe the deal between these tech giants will lead to riches. If history is any indicator, this move is a move of desperation.

    As originally published at Money Morning
    These Industry Powers Have Never Been More Scared
    By KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning

    Many investors are holding their breath even as they hold out plenty of hope looking at the recently announced deal between Apple and IBM.

    The upside, many say, is unlimited because it’s such a brilliant move.

    Hardly.

    In fact, the deal reeks of desperation and unprecedented weakness.

    We’ve seen this playbook before…

    We’ve Seen These Mergers Before

    Today’s computer market has some similarities to yesterday’s airline industry. With relentless competition and enormous downward price pressures, the only way to survive was to team up with rivals to improve economies of scale and broaden product outlets (In the case of airlines, acquiring flight routes and gates).

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      Keith appears on Varney & Co: Crisis, Alibaba IPO & Tobacco

      Stuart asks me about the effects the Ukraine and Israel situations are having on the markets? Several things are happening at once. First, investors are beginning to understand the difference between headline risk and systemic risk. So they’re not shying away. Second, earnings are not bad – 82 companies had reported as of last night and the beats are 67% which is ahead of the 63% average since 1994. And, third, the Fed is still in the game.

      Also, Alibaba is still a buy even if high-level Chinese officials stand to make a big profit once it does go public. It’s the way the game is played whether in China or here.

      Plus, see why I’m not shying away from Tobacco stocks even after a $23 billion verdict against R.J. Reynolds.



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        Keith on CNBC’s Closing Bell: Market

        Does the economy or the Fed support the stock market? See my response to Bill Griffeth’s question. Also, the Fed will take a giant step forward by acknowledging that too much liquidity is what got us into these sticky problems in the first place.



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          Keith on Varney & Co: Gold, Oil and Alibaba

          Gold dropped significantly today and Stuart Varney wanted to know what was behind the sharp move. Also, the news out of Iraq is causing oil price gyrations. See why I am cautious investor in oil. Finally, find out a backdoor way of getting in on the Alibaba IPO.



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            Keith on CNBC World: Betting on CEOs instead of the Fed

            The Fed had its say with the release of June’s FOMC meetings and, to nobody’s surprise, it’s the same old same. I’m more focused on what the CEOs of international companies are doing. They are the ones who understand the world’s environment and are very likely to showcase improved second-quarter earnings.



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