The Motley Fool's Weekly Editors' Picks
Fools were out and about this past week in an investing world jam-packed with actions and ideas. Here are three articles you might find useful as you decide how to invest your money.
This Stock Is CheapMotley Fool Rising Star analyst Jim Mueller has a tip for investors wanting to buy into a stock that the market is underpricing: GameStop (NYS: GME) . "I believe two reasons are still causing some messed-up expectations and that this situation is still holding GameStop's shares below where they should be trading," Jim wrote. He's bought GameStop shares twice before for his Messed-Up Expectations portfolio.
What's Jim seeing that others seem to be missing?
- Data on declining retail sales in the gaming industry don't tell the full story, as they don't include digital sales.
- GameStop is "embracing the digital revolution in several ways," including through its PowerUp member rewards program.
Read the story to see whether you think Jim can lead you to a winning investment in GameStop.
It's Time to Buy Natural GasOne of the most popular articles this week on Fool.com was Sean Williams' take on the natural gas situation. "With prices having fallen almost exponentially lower since 2012 began, I think the following question needs to be posed: 'Is it time to buy natural gas?'" Sean wrote. "I think the answer is yes, and I can give you a few reasons why and a few good ways to play the frustrating commodity."
Sean notes the wide split between oil and natural gas prices, says the U.S. government supports making natural gas a more prevalent fuel source, and cautions investors not to get sidetracked by one warm winter.
Sean's investment suggestions include Chesapeake Energy (NYS: CHK) and ExxonMobil (NYS: XOM) . The former is a "wild card," Sean wrote, because it has the most direct exposure to natural gas prices. "But being responsible for 8.3% of all U.S. natural gas production, Chesapeake clearly has a vested interest in natural gas pricing and could show the largest move higher when demand finally rebounds," he wrote. ExxonMobil is far from a wild card. "It's a large, low-beta, diversified energy company that's going to pay a decent dividend," he added.
Read the article to see all of what Sean had to say and to browse the more than 60 reader comments on that page.
5 Stocks That Love the Fed TodayYou may have heard something about the Federal Reserve's plans to make some sort of announcement about interest rates this week. What's it all mean? Fool editor and writer Dan Caplinger waded in to find some investing takeaways.
First up is good news for mortgage REITs, which make money by borrowing at low rates to invest in longer-term mortgage-backed securities that pay more interest. Annaly Capital (NYS: NLY) and Chimera Investment both went up on the Fed's announcement that low rates would continue more than a year longer than previously indicated, Dan noted. In a separate article, Sean Williams said the Fed had given investors the "all-clear" to invest in mortgage REITs, which tend to have high dividend yields.
Another winner is Ford (NYS: F) , which will benefit from lower rates on its debt and an expected upgrade out of junk-bond status, Dan wrote. "The resulting boost will cut Ford's interest expenses dramatically, adding to profits and creating a snowball effect for shareholders," he added.
Read the article for more on insight on what the Fed's move means.
To get a hot stock tip from The Motley Fool's chief investment officer, you'll want to get the free report "The Motley Fool's Top Stock for 2012." Check out the details on this "Costco of Latin America."It's free.
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 Annaly Capital, Ford, Chimera Investment, and GameStop.Motley Fool newsletter serviceshave recommended buying shares of Annaly Capital, Chesapeake Energy, and Ford, as well as creating a synthetic long position in Ford and writing covered calls in GameStop. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't 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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