Zacks Market Edge

Learn More About Zacks Value Investor Trading Service: https://www.zacks.com/valueinvestorpodcast In this first episode, Tracey jumps right into the number one worry she hears all the time now that stocks are at new all time highs: are there ANY value stocks out there at all? Investors are worried about valuation as many 20th century company stocks like Smucker and Conagra soar to new highs with sky high valuations to boot. But there’s always value stock opportunities out there, no matter what the market conditions. Investors just need to look beyond the big, hot names. Tracey urges investors to look at industries that have been beaten down, including agriculture, energy, big equipment, apparel retailers. Of course, the Zacks Rank also plays a role. Which are some of the best value stocks right now that also have high Zacks Ranks? This week’s top value stocks: 1. Meritage Homes (MTH): watch the homebuilders for opportunities. They are cheap and investors have been ignoring the industry for a couple of years. Meritage has a forward P/E of just 10.9. 2. Best Buy (BBY): a retailer??? Really? Isn’t brick and mortar dead? Tracey explains what she likes about BBY and why it’s not out of the game yet. It has a Price-to-Sales (P/S) ratio of just 0.3. What else do you need to know about these value stocks? Tracey talks about all of this and more in this week’s podcast. Meritage Homes: https://www.zacks.com/stock/quote/MTH?cid=cs-soundcloud-ft-pod Best Buy: https://www.zacks.com/stock/quote/BBY?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

Welcome to Episode #40 of the Zacks Market Edge Podcast. Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. In this episode, Tracey is joined by Kevin Cook, Zacks Senior Stock Strategist and Editor of the Tactical Trader portfolio service. Kevin was on the podcast in January 2016 as stocks sold off, discussing what investors should do, and now he’s back just 6 months later with stocks at new all time highs. But the questions remain the same as in January: 1. What should investors do now? 2. Where are there values or opportunities? In June, Kevin discussed in a video how the S&P 500 could actually get to 2200 despite market valuations and sluggish growth. His conclusions then were that the Central Banks were making US equities the “stars” of investing. Basically, with bond yields so low, or negative, there is no other alternative. Additionally, the dividend yield on the S&P 500 is around 2%, which is much higher than the yield on the US 10-year. You can watch his video here. A lot of investors also have questions about valuations. Neither Tracey nor Kevin think that the S&P 500 is overvalued here. But, investors have to be picky. Many large cap stocks, even those with great fundamentals, have expensive valuations. Lockheed Martin (LMT), which just had a great second quarter earnings report, has a forward P/E of about 22. Johnson & Johnson (JNJ), which just guided higher for the year, has a forward P/E of 18. Neither is cheap. IBM (IBM) is one of the few large caps that seems to have value. It trades with a forward P/E of just 12. Where else should investors be looking for stock ideas? 1. The small caps haven’t yet reached new highs but do your homework. 2. Tracey and Kevin like the medical sector and there are opportunities outside of biotechs such as with the medical staffing companies like AMN Healthcare Services (AHS). 3. There are also some opportunities in technology with companies like Ambarella (AMBA). During market pullbacks, and during bull runs, Tracey and Kevin agree that there are always stock opportunities. What other tips do they have about buying at market tops? Tune into this week’s podcast to find out. IBM: https://www.zacks.com/stock/quote/IBM?cid=cs-soundcloud-ft-pod Johnson & Johnson; https://www.zacks.com/stock/quote/JNJ?cid=cs-soundcloud-ft-pod Lockheed Martin: https://www.zacks.com/stock/quote/LMT?cid=cs-soundcloud-ft-pod American Healthcare Solutions: https://www.zacks.com/stock/quote/AHS?cid=cs-soundcloud-ft-pod Ambarella: https://www.zacks.com/stock/quote/AMBA?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

Welcome to Episode #39 of the Zacks Market Edge Podcast. Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. In this episode, Tracey is joined by David Bartosiak, Editor of the Momentum Trader, who is Zacks’ expert on momentum stocks to discuss one of the hottest industries on the stock market this year: the gold mining stocks. And boy, do they have momentum. Most of the individual mining stocks are up over triple digits this year. But is it too much? Has the rally already peaked? Is it too late for traders to get in? Tracey and David discuss all of these concerns. With the price of gold rising, so are earnings estimates. Fundamentals are actually strong for these companies. Tracey and David discuss the top picks in the sector. These intermediate producers, B2Gold (BTG) and New Gold (NGD), are both trading under $10 per share and are Zacks Rank #1 (Strong Buy) stocks. Take a look at the chart of New Gold year to date. Shares are up about 100%. Other companies to consider are Sibanye Gold (SBGL) and Randgold (GOLD). For a different take on the miners, consider Royal Gold (RGLD). It’s not actually a miner. It makes its money through royalties and streaming from gold mines around the world. Royal Gold actually pays a dividend. It’s also a Zacks Rank #1 (Strong Buy). Royal Gold and B2Gold were recently Zacks Bulls of the Day because the fundamentals are strengthening. Read the B2Gold Bull of the Day here and the

Visit https://www.zacks.com/podcast to learn about our other podcasts and signup for our daily On the very first episode of the Zacks Friday Finish Line podcast, Content Writer Ryan McQueeney and Editor Maddy Johnson take on this week’s biggest news from the investment and financial world. Up first this week was news from Chipotle Mexican Grill (CMG). As the company continues to look for ways to get customers back in the door following its food safety scandals, Chipotle launched its new “Chiptopia” Summer Rewards Program today. Check out how you can get free burritos here: Chipotle Fans Rejoice: "Chiptopia" Rewards Program Launches Friday Chipotle wasn’t the only company launching a new promotion this week, as Walmart (WMT) announced its new ShippingPass. The retail giant will offer free two-day shipping on anything purchased on Walmart.com for just $49 per year. After investing nearly $2 billion in ecommerce, it’s clear that Walmart is doubling down on its fight against Amazon (AMZN). Get Maddy’s opinion on the new offer here: Walmart's Unoriginal ShippingPass is Still No Match for Amazon Prime Finally, our number one story this week was the Brexit. As you probably know by now, the United Kingdom voted to leave the European Union. As a result, the pound fell to a three-decade low, gold continued its climb upward, and stocks around the world plunged.

Tracey Ryniec and Eric Dutram share their best tips on trading the earnings reports. Johnson and Johnson: https://www.zacks.com/stock/quote/JNJ?cid=cs-soundcloud-ft-pod Priceline: https://www.zacks.com/stock/quote/PLCN?cid=cs-soundcloud-ft-pod Google: https://www.zacks.com/stock/quote/GOOGL?cid=cs-soundcloud-ft-pod Target: https://www.zacks.com/stock/quote/TGT?cid=cs-soundcloud-ft-pod Tesla Motors: https://www.zacks.com/stock/quote/TSLA?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

Welcome to Episode #36 of the Zacks Market Edge Podcast. Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. In this episode, Tracey is joined by Neena Mishra, the Editor of Zacks Income Investor, which buys stocks and ETFs that pay dividends. Apple Hospitality: https://www.zacks.com/stock/quote/APLE?cid=cs-soundcloud-ft-pod BG Staffing: https://www.zacks.com/stock/quote/BGSF?cid=cs-soundcloud-ft-pod H&E Equipment Services: https://www.zacks.com/stock/quote/HEES?cid=cs-soundcloud-ft-pod SPDR SP DIVIDEND ETF: https://www.zacks.com/funds/etf/SDY/profile?cid=cs-soundcloud-ft-pod PROSHARES S&P MIDCAP 400 DIVIDEND ARISTO: https://www.zacks.com/funds/etf/REGL/profile?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch StocksInvestmentInvestStockInvestmentPodcastFinance

Welcome to Episode #35 of the Zacks Market Edge Podcast. Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. In this episode, Tracey is joined by Jeremy Mullin, the Editor of, which is both a long and short trading portfolio, to discuss the hottest investment of 2016: Gold! Who would have thought the yellow metal would make a resurgence? The Gold ETF (GLD) is up 20% year to date but that is nothing compared to some of the gold mining ETFs. The Gold Miners Triple ETF (NUGT) is up over 300% year-to-date. The Junior Gold Miners Triple ETF (JNUG) is up over 400%. Even the basic Gold Miner ETF (GDX) is up 84% this year. Check out the 6 month chart for all three of these. You can see them just take off in 2016. Those are incredible returns. What’s driving this latest gold rush? Jeremy and Tracey drill down into the reasons including: 1. The fear trade 2. That negative bond yields worldwide are forcing investors to look elsewhere for returns What if you think this latest rally isn’t going to hold? Jeremy discusses ways to be short the gold rush including using the Gold Miners Bear 3X (DUST). What do Jeremy and Tracey think about gold going forward? Should you be investing now, if you aren’t already in it? Or is it too late? Jeremy and Tracey jump into all of these topics and more in this week’s podcast. Looking for even more information on how to invest using the gold ETFs? SPDR Gold Shares: https://www.zacks.com/funds/etf/GLD/profile?cid=cs-soundcloud-ft-pod DIREXION DAILY GOLD MINERS BULL 3X SHARE: https://www.zacks.com/funds/etf/NUGT/profile?cid=cs-soundcloud-ft-pod DIREXION DAILY JR GOLD MINER IND BULL 3X: https://www.zacks.com/funds/etf/JNUG/profile?cid=cs-soundcloud-ft-pod VANECK VECTORS GOLD MINERS ETF: https://www.zacks.com/funds/etf/GDX/profile?cid=cs-soundcloud-ft-pod DIREXION DAILY GOLD MINERS BEAR 3X SHARE: https://www.zacks.com/funds/etf/DUST/profile?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

In this episode, Tracey is joined by Maddy Johnson, a Zacks Editor, and Domina Tingos, Zacks Director of Product Development, in a roundtable discussion about the future of retail. Many naysayers believe that brick and mortar retail is doomed. That theory says that Amazon will someday rule the entire retail universe with its 1-hour shipping. Tracey, Maddy and Domina don’t agree. They delve into the reasons that brick and mortar will still survive. JC Penney (JCP), for instance, is making progress in its turnaround because its focusing on “experiences” like its photo stores, beauty salons and Sephora outlets. It also had success with in-store appliance showrooms in the first quarter and is expanding that concept into 500 stores. But it’s not leaving out on-line sales. In addition to buying the appliances in the stores, JC Penney is expanding online sales as well. Maddy and Domina believe that Macy’s (M), in both its Bloomingdales and Macy’s stores, and Nordstrom (JWN), can succeed by focusing on experiences and unique products. They also discuss apparel retailers and what is going well, or not, at some of them. One of Maddy’s favorite retailers is Athleta, which is owned by Gap (GPS). The rest of Gap might be struggling, but it continues to roll out new brick and mortar stores for this athletic leisure apparel brand. It’s a slightly lower priced version of Lululemon (LULU). Tracey’s favorite apparel retailer is Ann Taylor (which, she has since found out, has also gone private). It has really started turning it around with a product that is right on trend. Its Loft business is also popular, combining athletic leisure apparel and a lower price point. If you’ve ever wanted to know which retail store Tracey has wanted to live in (yes- she wants to move in!) or which store’s restaurant she has eaten in (hint, they specialize in Swedish meatballs), tune into this week’s podcast to find out. Macy's: https://www.zacks.com/stock/quote/M?cid=cs-soundcloud-ft-pod\ JC Penney: https://www.zacks.com/stock/quote/JCP?cid=cs-soundcloud-ft-pod Newman Marcus: https://www.zacks.com/stock/quote/JWN?cid=cs-soundcloud-ft-pod Lululemon: https://www.zacks.com/stock/quote/LULU?cid=cs-soundcloud-ft-pod Gap: https://www.zacks.com/stock/quote/GPS?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

Without talking about it beforehand, they both decided to share their top three lessons, and, wouldn’t you know it, none of the lessons overlapped. David came at it from a momentum trading angle while Tracey leaned more heavily on her value investing history. For Dave, his first lesson was “Don’t fall on your own sword.” If your strategy isn’t working, get out. Don’t try to convince yourself the market is wrong. Dave discusses Twitter (TWTR) and how it looked like such a great trade when Jack Dorsey came back, but it hasn’t turned out that way. For Tracey, her first lesson was to have “patience.” In 2014, CEO Mary Dillon bought shares of Ulta (ULTA) when it sold off on a weak earnings report. Dillon bought a chunk of shares in March 2014. But in the months afterwards, the shares didn’t do anything. They didn’t pass her buy-in price again until September 2014. In the meantime, Tracey, who bought them in the Insider Trader after Mary bought, held them in the Insider Trader portfolio for all those months as they treaded water. Her patience paid off. It turned out to be a highly lucrative trade, as shares have since soared. Additionally, Tracey and Dave look at Whirlpool (WHR), NeoPhotonics (NPTN), and Pioneer Natural Resources (PXD) as further examples of lessons learned from trading including how to trade small caps and why not to follow the herd. Learn from their mistakes and successes. Find out what Tracey and Dave’s think of these, and other trading lessons, in this week’s podcast. Twitter: https://www.zacks.com/stock/quote/TWTR?cid=cs-soundcloud-ft-pod Ulta: https://www.zacks.com/stock/quote/ULTA?cid=cs-soundcloud-ft-pod Pioneer Natural Resources: https://www.zacks.com/stock/quote/PXD?cid=cs-soundcloud-ft-pod Whirlpool Corp: https://www.zacks.com/stock/quote/WHR?cid=cs-soundcloud-ft-pod Neophotonics: https://www.zacks.com/stock/quote/NPTN?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

In this episode, Tracey is joined by Kevin Cook, Zacks Senior Stock Strategist and the editor of the Follow the Money Trader and Tactical Trader. The first quarter 13-F form filings are out. Any firm with assets of more than $100 million had to disclose their latest investing moves. Kevin follows these moves closely in the Follow the Money Trader and he’s been seeing some interesting trades. These filings are always backward looking. The first quarter of this year included the big stock sell off so it’s not surprising that many managers used that as an opportunity to jump into new positions. What were they buying? Gold was a big one. Blackrock bought an 8.4 million share position in the SPDR Gold ETF (GLD). Eton Park also bought a 3.6 million position. In addition to buying the physical metal, George Soros started a new position in miner Barrick Gold (ABX). The gold miners have rallied hard in 2016. Another hot commodity area for hedge fund managers has been the fertilizers. Unlike energy and the miners, this group is still trading near multi-year lows. T. Rowe Price added 7 million shares of fertilizer giant CF Industries (CF). However, ValueAct manager Jeffrey Ubben actually sold a chunk of his Agrium (AGU). His $10 billion portfolio holds just 13 positions with Microsoft his largest position at 31.2% of the long portfolio. The Agrium position was small at under 3% of the long portfolio. Some fund managers have also been diving into the regional bank stocks. JPMorgan Chase bought 15 million shares of $10 billion market cap KeyCorp (KEY) in the quarter but several small fund managers were diving into the small-cap regional banks. Which ones were at the top of their lists? Should you be getting in as well? The larger hedge funds weren’t shy in adding to positions in the first quarter. Kevin watches Maverick Capital closely. It added to its Broadcom (AVGO) position in the quarter despite Apple’s issues. Many of the buys in the first quarter were value oriented. They were in sectors and industries that were beaten up or out of favor. Are the hedge fund managers sending a message about the market by suddenly acting like value investors? Find out in this week’s podcast. Broadcom: https://www.zacks.com/stock/quote/AVGO?cid=cs-soundcloud-ft-pod SPDR Gold Shares: https://www.zacks.com/funds/etf/GLD/profile CF Industries: https://www.zacks.com/stock/quote/CF?cid=cs-soundcloud-ft-pod Agrium Inc: https://www.zacks.com/stock/quote/AGU?cid=cs-soundcloud-ft-pod Keycorp: https://www.zacks.com/stock/quote/KEY?cid=cs-soundcloud-ft-pod Barrick Gold: https://www.zacks.com/stock/quote/ABX?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

In this episode, Tracey is joined by Kevin Matras, Zacks Vice President and portfolio manager of Zacks Options Trader service to talk about stock options: what they are and how you can trade them. Tracey admits she has never traded an option so Kevin starts off with the basics. What is an option? Options provide 3 advantages over regular stock trading: 1. Limited Risk 2. Leverage 3. Flexibility But there’s a bunch of things that beginners should learn before jumping in. What’s a call and a put? What’s the easiest of the two to use for beginning traders? Tracey always hears about being “in the money.” What does that mean? Kevin takes Tracey through three option examples that beginners would be able to execute, including Johnson & Johnson (JNJ), Simon Property Group (SPG) and Facebook (FB). With Facebook, he takes it one step further and discusses a bull call spread that can limit the profit potential but is a common strategy when options are expensive. While the options “lingo” may sound complex, “bull call what ???”, Kevin lays it out so even Tracey can understand it. If you’ve ever wondered how options work or thought about trying to trade them, then this is a must-listen podcast. Johnson & Johnson: http://www.zacks.com/stock/quote/JNJ?cid=cs-soundcloud-ft-pod Simon Property: http://www.zacks.com/stock/quote/SPG?cid=cs-soundcloud-ft-pod Facebook: http://www.zacks.com/stock/quote/FB?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

In this episode, Tracey is joined by Brian Bolan, Zacks Equity Strategist and Editor of the Game Changers and Stocks Under $10 portfolios. Berkshire Hathaway (BRKB) just held its annual shareholder meeting in Omaha which draws thousands of faithful Warren Buffett fans every year. As a result, for the entire weekend, the financial press was filled with quotes from Warren Buffett. Additionally, after the meeting, Warren Buffett, Charlie Munger and Bill Gates were interviewed for several hours on CNBC about their views on the economy and the stocks that Berkshire Hathaway owns, including IBM (IBM), Wells Fargo, American Express and Coca-Cola. Warren Buffett has given out a lot of advice over the years. But should you be following it? Brian has never been a Buffett fan, but being a value investor, Tracey has read books and articles about the Oracle of Omaha over the years. She was once a Berkshire Hathaway shareholder (of the B shares.) Have times changed since Buffett was investing in the 1970s which makes his advice less applicable to today’s market? And does the size of Berkshire Hathaway, which is a large cap, mean that Buffett can no longer invest in the small cap value names he was famous for? Brian does like one aspect of Buffett’s investing advice and that’s the buy and hold strategy but thinks the “hold” part is the most difficult for most investors. Tracey’s not a fan of the large cap dividend paying stocks that seem to dominate Berkshire’s stock portfolio now. Tracey and Brian discuss what stocks they like now (hint, they aren’t IBM.) Brian likes the disruptor technologies like the lending companies such as OnDeck Capital (ONDK) and Lending Club but also is a fan of the old line companies like Johnson & Johnson (JNJ) if you’re investing for the long haul and looking for a dividend. Tracey, following Buffett’s lead, likes companies with well known brands such as Snap-On (SNA) and Bank of the Ozarks (OZRK). Is the Oracle of Omaha still worth listening to in 2016? Check out this week’s podcast to find out. Snap-On Inc - http://www.zacks.com/stock/quote/SNA?cid=cs-soundcloud-ft-pod Bank of Ozarks: http://www.zacks.com/stock/quote/OZRK?cid=cs-soundcloud-ft-pod OnDeck Capital: http://www.zacks.com/stock/quote/ONDK?cid=cs-soundcloud-ft-pod Johnson & Johnson: http://www.zacks.com/stock/quote/JNJ?cid=cs-soundcloud-ft-pod Berkshire Hathaway: http://www.zacks.com/stock/quote/BRKB?cid=cs-soundcloud-ft-pod IBM: http://www.zacks.com/stock/quote/IBM?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

Momentum trading is one of the most exciting investment strategies out there. Traders love buying stocks that are trading near their 52-week highs. But there’s more to momentum investing than just buying every stock topping out. David shares his tips for finding the best momentum stocks including: 1. Buying when there is relative strength versus the market 2. Using the chart to find resistance, 52-week highs and trend lines 3. How to use the Zacks Rank to increase your odds of finding the best momentum stocks Earnings season presents its own challenges. Should you buy a momentum stock into the number? What about figuring out when momentum ends? David has a secret signal that tells him when to sell which you can use too. David ran his screen and unearthed 5 momentum stocks for this week: Hasbro (HAS), Bank of California (BANC), Boston Scientific (BSX), Tile Shop (TTS) and Becton Dickinson (BDX). When you become a momentum investor, you also begin to see patterns develop in the stock market. Tracey and David discuss the trends these five stocks are predicting for the stock market. David even goes so far as saying that momentum stocks can predict an upcoming recession. Is that true? With baseball season upon us, the Chicago Cubs and the Chicago White Sox are also thrown into the mix (what???). Find out everything you ever wanted to know about how to pick the best momentum stocks on this week’s podcast. Banc of California: http://www.zacks.com/stock/quote/BANC?cid=cs-soundcloud-ft-pod Hasbro: http://www.zacks.com/stock/quote/HAS?cid=cs-soundcloud-ft-pod Boston Scientific: http://www.zacks.com/stock/quote/BSX?cid=cs-soundcloud-ft-pod Tile Shop Holdings: http://www.zacks.com/stock/quote/TTS?cid=cs-soundcloud-ft-pod Becton Dickinson: http://www.zacks.com/stock/quote/BDX?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

In this episode, Tracey is joined by Sheraz Mian, Zacks Director of Research, who also worked as an oil analyst for seven years. That makes him the perfect guest to have on to discuss what’s really going on in the energy market. Sheraz and Tracey first discussed the crude sell-off and the oil stocks back in December 2015 in Episode #8 of the podcast. It’s worth listening to that podcast first, as Sheraz provides a great outline about how the crude sell off would look in 2016. And he was right! Back then, crude was trading around $40 a barrel and the US rig count had fallen to 744 rigs from its peak of 2031 rigs in 2008. The energy market was grim. There was talk of a massive numbers of bankruptcies and the cutting of dividends. Sheraz predicted that oil prices could briefly decline in the $20s and $30s but he thought they wouldn’t stay there very long because “the best solution for bringing supply back into equilibrium with production is low oil prices.” He also predicted that by the middle of next year (i.e. 2016), there would be sharply lower US inventory and it would be reasonable to expect oil to trade in the high $50s to mid $60s by the end of the year. It turns out he is a bit of an “oil whisperer” as his predictions last year seem to be turning into reality. The number of US oil rigs continued to drop and now sits at just 440. While inventories remain elevated, with production still declining, it’s only a matter of time before inventories start to fall. Does he still think that crude prices will finish the year in the $50s and $60s? And if they do, how do investors take advantage? The oil stocks have had big runs, but Sheraz still likes the E&Ps. In the December 2015 podcast he liked Pioneer Natural Resources (PXD) and still likes it. If you’re looking for a less known name, another one of his E&P favorites is Diamondback Energy (FANG). There’s also the big cap option. Occidental Petroleum (OXY) is high on his list and it still pays a juicy dividend, yielding 4%. For investors looking for diversity, there’s the option of the big integrateds like Exxon (XOM), Chevron (CVX) and British Petroleum (BP). Sheraz discusses which one is his favorite this year. These stocks have had big runs off their lows. Is it too late to get in? And what about the service companies like Schlumberger (SLB) and Halliburton (HAL)? Sheraz and Tracey tackle these oil patch questions and more on this week’s podcast. Pioneer Natural Resources: http://www.zacks.com/stock/quote/PXD?cid=cs-soundcloud-ft-pod Occidental: http://www.zacks.com/stock/quote/OXY?cid=cs-soundcloud-ft-pod Diamondback Energy: http://www.zacks.com/stock/quote/FANG?cid=cs-soundcloud-ft-pod Exxon-Mobil: http://www.zacks.com/stock/quote/XOM?cid=cs-soundcloud-ft-pod Chevron: http://www.zacks.com/stock/quote/CVX?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

In this episode, Tracey is joined by Jeremy Mullin, Zacks Stock Strategist and Editor of Zacks Counterstrike, a long and short trading service. But this leads to the question: How DO you short a stock? Tracey admits that she has never shorted an individual stock before so she brought in Jeremy to discuss the various scenarios that he looks for to create the most favorable short selling conditions. There are 2 main scenarios: 1. When an “event” of some kind happens. Recent examples of this were with Lumber Liquidators (LL) when it was the focus of a 60 Minutes segment about its Chinese laminate flooring and Chipotle (CMG) which had to shut restaurants after a health scare. Both “events” caused the stock to plunge. 2. When there are disappointing fundamentals. This usually happens when a company reports earnings or pre-announces disappointing sales or guidance. Recent examples of this scenario were with LinkedIn (LNKD) and Michael Kors (KORS). Both stocks plunged on earnings fears, and rebounded. But is the selling really over or is another shorting situation appearing? How do traders play both of these scenarios? How do you figure out your risk and reward? Should you only be shorting the glamour names? What about those stocks that appear to be overvalued? GoPro (GPRO) certainly seemed ripe for the short sellers after its shares soared and that turned out to be a big shorting opportunity for the savvy investor. If you don’t want to short individual stocks, should you stick to the ETFs? Shorting stocks doesn’t have to be scary. Think of it as just taking the other side of the trade. Jeremy takes on all of these questions and more in this week’s podcast. Chipotle: http://www.zacks.com/stock/quote/CMG?cid=cs-soundcloud-ft-pod Lumber Liquidators: http://www.zacks.com/stock/quote/LL?cid=cs-soundcloud-ft-pod Michael Kors: http://www.zacks.com/stock/quote/KORS?cid=cs-soundcloud-ft-pod LinkedIn: http://www.zacks.com/stock/quote/LNKD?cid=cs-soundcloud-ft-pod GoPro: http://www.zacks.com/stock/quote/GPRO?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch