The Motley Fool's Weekly Editors' Picks
Fools were out and about this week in an investing world jampacked with actions and ideas. Here are three articles you might find useful as you decide how to invest your money.
5 High-Yield Stocks You May Be IgnoringFool editor and analyst Ilan Moscovitz turned his gaze to Europe to find five high-yield stocks that investors might be overlooking because of their fear. "It probably goes without saying that Wall Street is especially reluctant to own European companies these days," Ilan wrote. "All this should suit savvy Fools just fine. The more-or-less indiscriminate selling has pushed valuations down and dividend yields up. That means opportunities for us."
Ilan points out that the companies make their money in different countries in Europe and around the world. France-based Veolia Environnement (NYS: VE) , for instance, provides water, environmental, and energy-grid services around the globe. "While only a quarter or so of its revenue comes from outside of Europe, about two-thirds of its euro revenue comes from the strongest countries, France and Germany," Ilan wrote.
Think Electric Cars Are Coming Soon? Read This.Fool contributor John Rosevear did some legwork for investors this week, diving into comments made by Toyota's chief engineer, Satoshi Ogiso, in an interview with Bertel Schmitt of The Truth About Cars.
John said he would bet on "Toyota's key assumption that demand for vehicles will outstrip oil supplies in a significant way pretty soon, even if oil-supply growth continues." John continues: "Given the long lead times required to develop new vehicles ... the cars and trucks that will help close this gap need to be in development now."
In considering which companies are going to step up to the plate, John gives investors one main point to ponder: "Toyota is a massive company, the largest automaker in the world by volume last year and the global leader in hybrid technology, and it is straining to do the research and development it thinks is necessary."
GameStop Is Playing Tricks on YouInvestors talk a lot about guidance, the predictions companies make about how they will do in areas such as earnings or sales. Investors make decisions based on whether a company meets or misses its guidance, and whether it lowers, raises, or reaffirms its guidance.
Longtime Fool contributor Rick Munarriz dug into GameStop's (NYS: GME) guidance and found something a little off. "The video game retailer is reiterating its projection of $2.82 a share to $2.92 a share in earnings for the fiscal year ending in January, though it's talking down everything else," Rick wrote. "Holy Dorian Gray! That bottom line never ages."
GameStop has been using stock buybacks to reduce the number of its shares, which bolsters the earnings-per-share figure. Read the article to find out why Rick thinks GameStop is "fundamentally crumbling with every passing quarter."
At the time this article was published Fool online editor Kris Eddy owns no shares of any stocks mentioned in this article.The Motley Fool owns shares of GameStop, Telefonica, and Ford.Motley Fool newsletter serviceshave recommended buying shares of France Telecom, Ford, Total, General Motors, and Veolia Environnement, as well as writing covered calls on GameStop. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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