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Small companies moving to big league |
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By Saghir Aslam, IFN Financial Columnist
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Tuesday, 12 January 2010 |
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Page 2 of 2
In March, investors were suspicious of all banks' viability, but now they realize many will survive, thanks to improving business and more lenient accounting rules. The same goes for insurers such as Genworth Financial. After dumping shares of many insurers, investors now realize why the industry's strong cash flow is such an attractive long-term investment.
Moved quickly to ease their cash crunch when the credit markets healed. Investors are pleased Hertz refinanced part of its $4 billion in debt tied to financing its fleet of rental cars. Raising $1.2 billion in October eased worries that Hertz would face intense financial stress. Likewise, MGM Mirage pushed back much of the debt maturing this year to 2010 and 2011.
Stayed globally focused. With the U.S. economy growing more slowly than Asia and Latin America, investors see companies such as Tupperware, which gets more than half its revenue from emerging nation, as a play on growth. Since the lows of the market worldwide, emerging markets have been up dramatically again, but it takes patience. When the market start to junk, many people lost patience. Those who stayed in the market are smiling today. Some of the funds and money managers are up over 60 percent - once again, the patience paid out.
Tapped new markets or products. Human Genome Sciences is testing a promising drug for lupus, a disease that's long stumped researchers, and it's the kind of reborn large-cap stock that may continue to lead. Many investors thought the stock was hopeless when it was on its knees.
Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and no advice is given. Mr. Aslam does not endorse nor recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr. Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor or certified financial planner. Mr. Aslam does not have anything for sale.
Editor's note: The information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling community members to live in security and dignity and fulfill their religious and moral obligations toward charitable activities
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Last Updated ( Thursday, 29 April 2010 )
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