Alamy When you read something discouraging about a company you patronize or invest in, it's easy to think there isn't much you can do about it. But of course that's not true. As a customer, you can simply stop giving the company your business. If you're a shareholder, you can vote for or against various proposals for the company. And if those options don't feel like enough, there's another way to voice your displeasure -- a tactic that is growing in popularity and is truly bring about changes: You can start or sign a petition. If your first reaction to that is, "Nonsense, petitions never accomplish anything," your skepticism is understandable. But it's a little out of date. Social media has changed the petition game as it has changed so many other things. Banding Together for Change By now, you've probably seen petitions pop up on your Facebook (FB) page. You might have even signed some. But we don't often hear what happens next. In many cases, they work. For example, 162,150 people signed a petition protesting the name of a Jacksonville, Fla., high school, which had been named in the 1950s after a slave trader and Ku Klux Klan member, and the school board has agreed to change its name at the start of the new school year. Changes can happen at big companies, too. More than 307,000 petitioners were successful in getting Tyson Foods (TSN), the second-largest food-production company in the Fortune 500, to "stop torturing pigs." The company announced new animal-welfare guidelines for its pork suppliers, requiring more room for pigs to move around and more humane methods of killing the animals. Abercrombie & Fitch (ANF) is another example. It had long been criticized for policies such as not offering clothing in larger sizes and making someone's looks a major hiring criteria in order to distance itself from anyone other than "cool, good-looking people." The company has finally agreed to start offering plus-size clothing, likely persuaded in part by more than 80,000 people signing a petition urging Abercrombie to change its ways. SeaWorld Entertainment (SEAS) has come under fire lately for its treatment of captive killer whales, publicized in the disturbing documentary "Blackfish," which is now streaming on Netflix (NFLX). Disillusionment with SeaWorld seems to be growing, with it experiencing some traffic shrinkage. At Change.org, a petition asking singer Willie Nelson to cancel an appearance there worked, with fewer than 10,000 signers. Other similar efforts have led many other performers to drop Seaworld gigs. Sprint (S), petitioned by more than 175,000 people, agreed to improve its policies to keep domestic-violence victims safer. Verizon (VZ) did as well. Part of the problem were steep fees faced by those who were trying to separate themselves from joint accounts with abusers. Even Facebook, which is used to spread many petitions, was itself the subject of a successful petition, with the company agreeing not to censor images of women who have had mastectomies. More than 21,000 supporters signed that petition. Take Action
Friday, January 31, 2014
Workers, Customers: You Really Can Make Big Businesses Listen
Not Your Dad's Nasdaq
Each Monday, MoneyBeat publishes a short column in the WSJ print edition highlighting a statistic getting traction in the markets. This week’s "Big Number" is 51, the number of dividend payers among the 100 biggest Nasdaq(NDAQ)-listed companies.
The Nasdaq Composite is a far more mature version of its former self.
The tech-heavy index is poised to cross 4000 for the first time in 13 years, a development that has stoked concerns another tech-bubble is forming. But the Nasdaq nowadays has more dividend payers, fewer dot-coms and a more reasonable valuation, a nod to the evolution of an index once only known for tech and growth stocks.
Currently, 51 of the top 100 Nasdaq stocks – including Apple Inc.(AAPL), Microsoft Corp.(MSFT) and Cisco Systems Inc.(CSCO) – pay dividends. In December 1999, when the Nasdaq initially jumped above 4000, only nine companies paid dividends, according to stock-market research firm Birinyi Associates.
Between dividend increases and bigger share buybacks, the increase of shareholder-friendly moves in recent years have helped juice the Nasdaq as it approaches 4000. The index currently sports a dividend yield of 1.41%, compared to 0.11% in December 1999. The S&P 500′s dividend yield is 1.91%.
Apple, which started paying a regular dividend last year, is illustrative of the Nasdaq's trend. The iPhone and iPad maker has transformed from a high-flying growth stock to one that’s more characteristic of a plodding value stock over the past year, a fate similar to the likes of Microsoft, Cisco and Intel Corp.(INTC)
The Nasdaq finished Friday at 3985.87, its highest close since September 2000. It has risen in eight of the past 11 weeks and is up 32% this year, outpacing both the Dow and S&P 500.
Beyond dividends, there are other characteristics that show the differences between then and now. In 1999, there were 119 companies in the Nasdaq that had ".com" in their name. Now, there are 15.
And the Nasdaq now trades at about 25 times the previous year’s earnings, compared with 151 times trailing earnings in December 1999, Birinyi says.
In 1999, stocks were in a bubble. Now, the evidence isn't as convincing.
Thursday, January 30, 2014
Boeing to Boost 737 Annual Production to 560 Planes
The Boeing Co. (NYSE: BA) announced on Thursday afternoon that the company would raise production of its 737 family of single aisle planes to 47 new aircraft a month (564 a year) in 2017. The company currently builds 38 planes a month at its plant in Renton, Washington plant and that number will grow to 42 planes a month in the first half of 2014.
Boeing said it is laying a "foundation" for the transition to its new 737 MAX aircraft which are scheduled for first delivery in the third quarter of 2017. The 737 is arguably the single most popular airplane ever built. Boeing claims it has built and has orders for a total of 11,200 of the planes with 3,400 orders still to be filled.
Ever since the troubles the company had getting its 787 Dreamliner into service — and the problems that have arisen since it began delivering the planes — one has to wonder if the company has a chance of keeping to its schedule for the 737 MAX. Last week Boeing announced an order worth $20.7 billion for 200 of its 737 MAX aircraft from China's three largest airlines.
The competitor to the 737 MAX is the Airbus 320neo which is scheduled for delivered a full two years earlier than the new Boeing plane. If Airbus can deliver a hot new product on time and on budget, Boeing could have a difficult time keeping all those orders on its books.
Wednesday, January 29, 2014
Fed tapers another $10B a month; stocks extend losses
The Federal Reserve will trim its monthly bond buying by $10 billion to $65 billion, sticking to its plan for a gradual withdrawal from departing Chairman Ben S. Bernanke's unprecedented easing policy.
“Labor market indicators were mixed but on balance showed further improvement,” the Federal Open Market Committee said Wednesday in a statement following a two-day meeting in Washington that was the last for Mr. Bernanke, who will be succeeded by Vice Chairman Janet Yellen on Feb. 1. “The unemployment rate declined but remains elevated.”
Policymakers pressed on with a reduction in the purchases intended to speed a recovery from the worst recession since the Great Depression, even after payroll growth slowed in December and amid a rout in emerging-market currencies. Some officials have expressed concern that the Fed's record $4.1 trillion balance sheet could help create asset-price bubbles.
Stocks declined further after the news. The S&P 500 lost 1.2% to 1,771.86 and the Dow Jones Industrial Average dropped 202.90 points, or 1.3%, to 15,725.66. Ten-year Treasury note yields were at 2.72% from 2.75 late Tuesday.
The Fed left unchanged its statement that it will probably hold its target interest rate near zero “well past the time” that unemployment falls below 6.5%, “especially if projected inflation” remains below the committee's longer-run goal of 2%.
MONITORING INFLATION
The Fed repeated the inflation “persistently below its 2% objective could pose risks to economic performance and it is monitoring inflation developments carefully for evidence that inflation will move back toward its objective over the medium term.”
The central bank's preferred gauge of consumer prices climbed 0.9% in the year through November and hasn't exceeded the Fed's goal since March 2012.
Bond purchases will be divided between $35 billion in Treasuries and $30 billion in mortgage debt beginning in February, the Fed said. It repeated that purchases are not “on a preset course.”
It was the first meeting with no dissent since June 2011, showing Fed officials coalescing around the central bank's tapering strategy as Ms. Yellen prepares to take over the chairmanship from Mr. Bernanke.
Fed district bank presidents rotate voting on monetary policy each year, with Cleveland's Sandra Pianalto, Philadelphia's Charles Plosser, Richard Fisher of Dallas and Narayana Kocherlakota of Minneapolis voting in 2014. Fed governors hold permanent votes, as does the president of the Federal Reserve Bank of New York, who serves as FOMC vice chairman.
TEST PROGRAM
Even as they maintain stimulus, central bankers are planning for the end to the era of low interest rates. In a technical note Wednesday, the Fed said it would continue testing a program designed to prevent short-term market interest rates from falling too low. The program, called an overnight reverse repurchase! facility, was first approved in September.
Economists surveyed by Bloomberg forecast the Fed will continue tapering at each meeting and end the program no later than December.
SET COURSE
“Once you set out on a course, it's costly to deviate from that course,” said Benjamin Mandel, an economist at Citigroup Inc. who formerly worked at the New York Fed. “It's costly in terms of credibility and predictability.”
The Fed on Dec. 18 announced its first reduction in bond purchases, by $10 billion, and Mr. Bernanke outlined the strategy for tapering at a press conference, the last of his eight-year tenure.
“If we're making progress in terms of inflation and continued job gains, then I imagine we'll continue to do probably at each meeting a measured reduction,” he said.
Since then, a Labor Department report showed payrolls in December rose at the slowest pace in almost three years, partly reflecting the impact of bad weather. The unemployment rate declined to 6.7%, a five-year low, as people left the labor force.
The report didn't signal a major labor market shift, Fed President Jeffrey Lacker told reporters on Jan. 10. An opponent of bond purchases by the Fed, Mr. Lacker doesn't vote on policy this year.
Other data have shown continued strength in an economy that expanded at a 4.1% annual pace in the third quarter, the most in almost two years.
Retail sales climbed for the ninth straight month in December as frigid temperatures prodded Americans to buy discounted winter clothing and shop online for the holidays. Industrial production last month capped the strongest quarter since 2010.
“The Fed's going to be feeling fairly good about the economy,” said Bluford Putnam, chief economist at CME Group Inc., owner of the world's largest futures market. “Even though the last employment data were a disappointment, most people attribute it to noise, and other indicators about the economy are looking good.”
Emerging-markets turmoil has push! ed Treasu! ry yields lower as investors seek the safety of U.S. government debt. The yield on the 10-year Treasury note was 2.75% Tuesday, retreating from a more- than-two-year high of 3.03% on Dec. 31.
Corporate earnings may support share prices. About three-fourths of S&P 500 companies have exceeded forecasts for fourth-quarter earnings, according to data compiled by Bloomberg.
(Bloomberg News) Like what you've read?
Monday, January 27, 2014
Stocks: Which Will End First?
MoneyShow's Jim Jubak analyzes the current market action and wonders whether the prevailing sentiment can last until the earnings season kicks in.
For the week ahead, well maybe the next two or three weeks ahead, we're in a kind of race to see what ends first, whether it's the market's complacency about the government shutdown and the debt ceiling battle, or whether it's the government shutdown and the debt ceiling battle itself.
Right now it looks like the market is pretty much assuming that this is going to be over in like a week, it's not going to have a whole lot of effect. It's not going to lead into some kind of bigger battle over the debt ceiling. In fact, it may mean that the debt ceiling battle itself will be resolved fairly easily, but you've got things like on October 2, you had the ADP research numbers on jobs. Now, there won't be a government report this week, the government is shutdown, so the September jobs numbers, which were supposed to come out on Friday, October 4, won't come out, so this is the only jobs number we have for September, probably for a while.
The ADP report showed 166,000 jobs being created by the economy. That was lower than economists expected. They'd expected 180 or so. The market did indeed move lower on that, but after hitting a low around 1018-1020, it proceeded, pretty much, to go up all day and finish the day down a little less than two-tenths of a percent. Not a big move, considering all that's happening.
So, basically, I think what you're looking at is a market that's willing to look past these problems, to say, "Well, what we've got coming up is earnings season. We think earnings season is going to look pretty good. The last five in a row have looked pretty good, so we're expecting the market to move ahead." The thing that would upset this would be some actual events that tell us that this thing is not going to be over in a week or so, and that the debt ceiling battle is, instead of getting sort of resolved because we're not going to fight these things all over again, right, is getting worse.
So, really, we've got a market that pretty much has decided that the best of all possible worlds is going to come true, and if it does, I think the market is well placed to go up in earnings season, and if it doesn't, we've got a lot of down side below us.
This is Jim Jubak for the MoneyShow.com video network.
Sunday, January 26, 2014
Ray Dalio - Radical Truths of the Financial Universe
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You've spoken about individuals who shape the world we live in and the particular qualities they share. What is the process these people, "the shapers," go through that perhaps the rest of us do not?
Ray Dalio: I think for everybody, in order to be successful, there are five steps that you go through essentially. But everybody has their goals. What is their goal and passion? So you have goals. And then what happens is you're going after your goals and you encounter your problems. So encountering problems, and then the big difference between people is how they approach those problems. People who get bummed out by the problems don't learn from it. Who learns from them? So those who recognized the problems are excited that they get into those problems or mistakes. Mistakes are learning experiences. The pain that comes for that mistake, every time you have pain it's an indication that something is at odds. So the people who have the pain are the people then who will go into that and realize that if they solve that pain, solve that problem, understand what that is representative of -- not just the one problem -- but that problem is a certain type of problem that will happen over and over and over again in your life, and if you can solve, "How do I deal with that kind of problem?" The third thing that everybody needs to do is, if they have problems on the way to their goals, that they diagnose those problems and they get to the root cause -- the real root cause. The real root is often -- is typically -- what people are like. Can you go to what you're like? Can you go to your mistakes? Can you go to your weaknesses? Right. Can you go to other people's mistakes and weakness? Some people, because of ego barrier, can't do that, so if they don't recognize their own mistakes, their own weaknesses, or other's mistakes and weaknesses -- what the root ca! use may be and what they're like because of ego barriers -- if they can't go there, they're going to repeat those mistakes. They're going to have them over and over again. So it's the process essentially of saying, at that stage, "What am I like?" Everybody has strengths and everybody has weaknesses. The weaknesses are the other side of the strengths. So let's say if you're a right brain/creative person, you may not be reliable. Because just the way you think necessitates you to think a certain way, that means you can't think in another way. That means you're going to keep bumping into that thing that's standing in your way. But unless you can embrace, "I'm not reliable," right, and deal with it, you won't get around it. It's still going to continue to be a barrier. Right. So the diagnosis to the root cause is important. So then if you diagnose, then you have to design what you are going to do about it that works. So let's say you are very creative but not reliable. Okay, you have to find the means of first of all embracing that, and then saying, "If I'm not reliable, what do I? Do I work with a reliable person? Do I learn reliability? Do I have some compensating mechanism?" Because I can't let that lack of reliability stand in the way of my goal. As long as I keep doing that I'm going to keep running into problems.
So you have to design what you do about the problems. And then when you're designing what to do about the problems, you have to follow it through. You have to follow through, or do the thing you design. Doing the thing you design requires self-discipline and so on. People have to do those things in order to be successful. Right. They have to know what their goals are. They have to diagnose their problems down to the root cause, the real root cause. They have to design ways to get around them, and then they have to have the self-discipline to follow that. It's a continuous iterative process. So that's what we keep doing. I would say that all of the shapers are doing that. So they don't ! mind the ! problems. That's their adventure. A wonderful book is Einstein's Mistakes. You hear his struggles. He wouldn't have been cutting-edge, he wouldn't have been inventive if he didn't go through that. So when you're looking at the personality characteristics, the personality characteristics lend themselves to doing that five-step process well.
In his book The Outliers, Malcolm Gladwell says it takes something like 10,000 hours of working at something to become remarkable, to become extraordinary. I think you're also describing a person who is very driven, who has great tenacity and doesn't let things get in the way of the goal.
Ray Dalio: Yes, of course. It's an element, but... It's the mixture of the elements that matter. You could have a tremendous tenacity, but you're studying, you're learning, you're trying to memorize and remember everything that you're being taught and you're really trying hard. You could have great tenacity. You need the making sense of something, you need to embrace reality. You need these other dimensions. Right. So I think the things that we started to talk about just before, the things that these people have a need for is: First, they need to -- most fundamentally - make sense of things, which is a very different kind of learning process. It's a very internalized learning process. It's not a memory-based process. So none of these people -- unlike the population as a whole -- none of these people have a desire to follow instructions.
Continue reading here.
Saturday, January 25, 2014
Technical Forecast for EUR/USD
EURUSD hit our next target of 1.3375/80 & topped exactly here. Good support at 1.3325/20 also held profit taking as predicted & we bottomed exactly here. However the outlook is quite negative so be ready to go with a break lower & look for the next support at 1.3280/75. A low for the day is possible here so we can exit shorts & try longs with stops below the next support at 1.3240. We then look for a buying opportunity at 1.3210.
If we manage to hold support at 1.3325/20 look for a return to 1.3350/55, possibly as far as 1.3375/80 for a selling opportunity with stops above 1.3410.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
Friday, January 24, 2014
The World's Richest Man Bill Gates on Charlie Rose
Billionare, philanthropist, best pal of Warren Buffett (Trades, Portfolio). Bill Gates (Trades, Portfolio) has everything most of us want but will never have.
This week he sat down with Charlie Rose to discuss all of his favorite topics.
Listening to Gates is quite a bit like listening to Buffett. So open you ears and drink it in.
Also check out: Bill Gates Undervalued Stocks Bill Gates Top Growth Companies Bill Gates High Yield stocks, and Stocks that Bill Gates keeps buying
About the author:Canadian Valuehttp://valueinvestorcanada.blogspot.com/
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Thursday, January 23, 2014
FDA to revise nutrition facts label
The Food and Drug Administration says knowledge about nutrition has evolved over the past 20 years, and the labels need to reflect that.
As the agency considers revisions, nutritionists and other health experts have their own wish list of desired changes.
The number of calories should be more prominent, they say, and the amount of added sugar and percentage of whole wheat in the food should be included. They also want more clarity on how serving sizes are defined.
"There's a feeling that nutrition labels haven't been as effective as they should be," says Michael Jacobson of the Center for Science in the Public Interest. "When you look at the label, there are roughly two dozen numbers of substances that people aren't intuitively familiar with."
For example, he says, most of the nutrients are listed in grams, the metric system's basic unit of mass. Jacobson says people don't really understand what a gram is.
Michael Taylor, the FDA's deputy commissioner for foods, says 20 years ago "there was a big focus on fat, and fat undifferentiated." Since then, health providers have focused more on calories and warned people away from saturated and trans fats more than all fats. Trans fats were separated out on the label in 2006.
The nutrition facts label "is now 20 years old, the food environment has changed and our dietary guidance has changed," says Taylor, who was at the agency in the early 1990s when the FDA first introduced the label at the behest of Congress. "It's important to keep this updated so what is iconic doesn't become a relic."
The FDA has sent guidelines for the new labels to the White House, but Taylor would not estimate when they might be released. The FDA has been working on the issue for a decade, he said.
There's evidence that more people are reading the labels in recent years.
According to an Agriculture Department study released th! is month, a greater%age of adults reported using the nutrition facts panel and other claims on food packages "always or most of the time" in 2009 and 2010 compared with two years earlier.
The USDA study said 42% of working adults used the panel always or most of the time in 2009 and 2010, while older adults used it 57% of the time during that period.
One expected change in the label is to make the calorie listing more prominent, and Regina Hildwine of the Grocery Manufacturers Association said that could be useful to consumers. Her group represents the nation's largest food companies.
Hildwine said FDA also has suggested that it may be appropriate to remove the "calories from fat" declaration on the label.
It's not yet clear what other changes the FDA could decide on. Nutrition advocates are hoping the agency adds a line for sugars and syrups that are not naturally occurring in foods and drinks and are added when they are processed or prepared. Right now, some sugars are listed separately among the ingredients and some are not.
It may be difficult for the FDA to figure out how to calculate added sugars, however. Food manufacturers are adding naturally occurring sugars to their products so they can label them as natural — but the nutrition content is no different.
Other suggestions from health advocates:
— Add the percentage of whole wheat to the label. Many manufacturers will label products "whole wheat" when there is really only a small percentage of it in the food.
— Clearer measurements. Jacobson of CSPI and others have suggested that the FDA use teaspoons instead of grams on the label, since consumers can envision a teaspoon.
— Serving sizes that make sense. There's no easy answer, but health experts say that single-size servings that are clearly meant to be eaten in one sitting will often list two or three servings on the label, making the calorie and other nutrient information deceptive. FDA said last year that it may add another column! to the l! abels, listing nutrition information per serving and per container. The agency may also adjust recommended serving sizes for some foods.
— Package-front labeling. Beyond the panel on the back, nutrition experts have pushed for labels on the package front for certain nutrients so consumers can see them more easily. The FDA said several years ago it would issue guidelines for front of pack labeling, but later said it would hold off to see if the industry could create its own labels.
Tracy Fox, a Washington-based nutrition consultant, says clearer information is needed to balance the billions of dollars a year that the food industry spends on food marketing.
"There's a lot of information there, it's messy," she says. "There may be a way to call out certain things and put them in context."
Tuesday, January 21, 2014
Top Analyst Upgrades and Downgrades: Deere, Lululemon, Newmont, Starbucks and More
Investors and traders often get to read about the Wall Street analyst upgrades, but they often do not get to hear when to sell or avoid a stock. Each morning 24/7 Wall St. reviews literally dozens of Wall Street analyst research reports with a goal of finding fresh ideas for investors and traders. Some turn out to be stocks to buy and others stocks to sell. These are this Thursday’s top analyst upgrades, downgrades and initiations seen from Wall Street research firms.
Banco Bilbao Vizcaya Argentaria S.A. (NYSE: BBVA) was raised to Outperform from Neutral by Credit Suisse.
Caterpillar Inc. (NYSE: CAT) was started as Equal Weight at Morgan Stanley
Deere & Co. (NYSE: DE) was started as Underweight with a $72 price target (versus $84.48 close) by Morgan Stanley.
Dollar General Corp. (NYSE: DG) was raised to Buy with a $66 price target at Sterne Agee.
Groupon Inc. (NASDAQ: GRPN) was raised to Overweight from Equal Weight at Morgan Stanley.
Lockheed Martin Corp. (NYSE: LMT) was downgraded to Sector Perform from Outperform at RBC Capital Markets.
Lululemon Athletica Inc. (NASDAQ: LULU) was reiterated as Neutral but the price target was raised to $78 from $73 (versus $70.10 close) at Credit Suisse.
Newmont Mining Corp. (NYSE: NEM) was downgraded to Equal Weight from Overweight at Barclays.
OpenTable Inc. (NASDAQ: OPEN) was downgraded to Equal Weight from Overweight on valuation by Morgan Stanley.
Starbucks Corp. (NASDAQ: SBUX) was started as Outperform with an $80 price target (versus $72.14 close) at Wedbush.
Transocean Ltd. (NYSE: RIG) was raised to Outperform from Neutral with a $60 target price (versus $45.39 close) at Credit Suisse.
Zillow Inc. (NYSE: Z) was downgraded to Underweight from Equal Weight at Morgan Stanley; shares are down 3% after a $100.50 close.
Deutsche Bank has issued a tech research report showing that large networking giants are set to take even more selective market share.
Monday, January 20, 2014
5 Best Value Stocks For 2014
When Good Is Bad
I think the biggest problem with POSCO is that it's such a well-run steel company and that fact is so widely known. POSCO is not only the world's third-largest steel producer, but it's well-known for having/developing superior technology and operating with exceptional efficiency. Accordingly, investors are happy to assign above-average multiples to the stock, not unlike the above-average multiples that American mini-mill operators Nucor (NYSE:NUE) and Steel Dynamics (Nasdaq:STLD) have long enjoyed due to their efficiency and technological sophistication.
5 Best Value Stocks For 2014: Tupperware Corporation(TUP)
Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.
Advisors' Opinion:- [By Eric Volkman]
Tupperware Brands (NYSE: TUP ) is reaching into its corporate bowl for a fresh payout to shareholders. The company has declared a quarterly dividend of $0.62 per share. This will be paid on July 8 to stockholders of record as of June 19. That amount matches the firm's previous distribution, which was paid in early April. Prior to that, Tupperware Brands was rather less generous, handing out $0.36 per share.
- [By Oliver Pursche]
European large-cap pharmaceuticals like Novartis (NVS) �and Bristol Meyers Squibb (BMY) �count amongst some of our favorite stocks right now, as do U.S. multinationals that are growing revenue and margins in Asia ��Tupperware (TUP) �is a shining example. Stay away from utilities and energy stocks, as they are likely to be the laggards over the next year.
5 Best Value Stocks For 2014: Caterpillar Inc.(CAT)
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.
Advisors' Opinion:- [By Travis Hoium]
Caterpillar (NYSE: CAT ) stock is taking the commodities hit the hardest today, falling 1.8%. If commodities continue their decline, the company will see lower demand for earth moving equipment. It was also announced on Thursday that negotiations between Caterpillar and the Milwaukee workers' union have been suspended. Last week, workers rejected a proposal that would have frozen wages for existing workers and created a lower pay scale for new workers. In the meantime, they continue to report for work under the old contract terms, so there's no pending disruption to manufacturing. �
Top Blue Chip Companies To Own For 2014: Schlumberger N.V.(SLB)
Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.
Advisors' Opinion:- [By Richard Moroney, Editor, Dow Theory Forecasts]
Founded in 1926, Schlumberger (SLB), operates in all major facets of oilfield services, essentially covering the lifespan of reservoirs that house natural gas and oil.
5 Best Value Stocks For 2014: Dollar Tree Inc.(DLTR)
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.
Advisors' Opinion:- [By Lawrence Meyers]
The finance sector, as mentioned, can make money in many ways. The second-highest growth sector is expected to be consumer discretionary, with a 6.2% increase. When you look at earnings from luxury brands like Tiffany & Co. (TIF), and that the hotel sector continues to do very well, it suggests that those people who are in good financial shape are spending their money. Meanwhile, dollar players like Dollar Tree (DLTR) continue to perform very well, suggesting that folks with less money are spending it on cheaper items.
- [By Paul Ausick]
The other stock the firm likes is Dollar Tree Inc. (NASDAQ: DLTR). The company�� shares have lost about 4.6% since reporting an earnings per share (EPS) miss for the third quarter and the Sterne Agee analysts see the lower price as a ��reat entry point��for buying the stock. Dollar Tree raised fiscal year 2013 EPS guidance from a range of $2.66 to $2.77 to a new range of $2.72 to $2.78, effectively raising the mid-point by $0.04. Sterne Agee reiterated its Buy rating on the stock with a price target of $63. Dollar Tree�� shares are trading down nearly 0.4% at $55.99 in a 52-week range of $37.47 to $60.19.
Sunday, January 19, 2014
5 Best Casino Stocks To Buy For 2014
Shutterfly (NASDAQ: SFLY) also saw the number of its shares sold short rise somewhat in that time.
But short interest in Angie's List (NASDAQ: GRPN) was essentially flat in the final two weeks of June, compared to the previous period.
And the number of shares sold short in Google (NASDAQ: GOOG), LinkedIn (NYSE: LNKD), Pandora (NYSE: P) and United Online (NASDAQ: UNTD) declined somewhat.
Also, note that U.S.-listed shares (or ADRs) sold short of Chinese social media companies Sina (NASDAQ: SINA) and Sohu.com (NASDAQ: SOHU) fell by double-digit percentages to the end of June. But short interest in Baidu (NASDAQ: BIDU), Renren (NYSE: RENN) and YouKu Todou (NYSE: YOKU) declined more modestly.
eBay
Short interest in this San Jose, California-based online commerce company increased by more than four percent to more than 15.75 million shares in late June. The number of shares sold short has risen since the end of April but was a little more than one percent of the float. Days to cover was less than two.
EBay has a market capitalization of more than $72 billion. It is expected to post double-digit revenue growth in the current quarter and the next. The long-term earnings per share (EPS) growth forecast is about 15 percent, but the price-to-earnings (P/E) ratio is about 27. The return on equity is less than 14 percent.
Of the 39 analysts who follow the stock that were surveyed by Thomson/First Call, 33 recommend buying shares, 13 of them rating the stock at Strong Buy. The mean price target, or where analysts expect the share price to go, is almost 13 percent higher than the current share price. That target would be a new multiyear high.
The share price rose more than five percent in the past month and it is now more than 40 percent higher than a year ago. But ov! er the past six months, the stock has underperformed the likes of Amazon.com (NASDAQ: AMZN) and Overstock.com (NASDAQ: OSTK).
Yelp
This San Francisco-based company saw its short interest increase more than 10 percent in the final weeks of June to more than 4.71 million shares. The number of shares sold short represented more than 16 percent of the total float, and the days to cover increased to about four.
An analyst remarked on Yelp's runaway growth potential during the period. The company currently has a market cap near $2.4 billion. While Yelp has a long-term EPS growth forecast of about 20 percent, its return on equity is in negative territory. Note that analysts do not expect the company to show a profit until 2014.
For at least three months, the consensus recommendation of the polled analysts has been to hold shares. So, no surprise, the share price has overrun their mean price target, meaning they see no upside potential at this time. Note that the street-high target is more than 11 percent higher than the share price.
The share price has risen about 25 percent in the past month and reached a 52-week high this week. The stock has outperformed Yahoo! (NASDAQ: YHOO) and the broader markets over the past six months.
Zynga
Short interest in the San Francisco-based online social games operator increased more than four percent to 26.14 million shares in the latter two weeks of June. That followed a more than 16 percent rise in the number of shares sold short in the previous period. Short interest was about five percent of the float.
In June, Zynga acquired a casino gaming company, but also was a rumored takeover target. Zynga has a market cap of more than $2 billion but does not offer a dividend. The long-term EPS growth forecast is about 21 percent, but the return on equity and the operating margin are both in the red.
Only two of the 22 surveyed analysts recommend buying shares, while 17 recommend holding them. Hold has been the! consensu! s recommendation for at least three months. The current share price is higher than the analysts' mean price target, meaning they see no upside potential at this time.
The share price has climbed more than 17 percent in the past month and is up almost 42 percent year-to-date. Over the past six months, the stock has underperformed the likes of Electronic Arts (NASDAQ: EA), but it has outperformed Facebook and the broader markets.
5 Best Casino Stocks To Buy For 2014: Penn National Gaming Inc.(PENN)
Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.
Advisors' Opinion:- [By Roberto Pedone]
Penn National Gaming (PENN) is a diversified, multi-jurisdictional owner and manager of gaming and pari-mutuel properties. This stock closed up 1.4% at $56.13 in Monday's trading session.
Monday's Volume: 1.11 million
Three-Month Average Volume: 824,334
Volume % Change: 73%From a technical perspective, PENN jumped modestly higher here right above some near-term support at $54.71 with above-average volume. This move is quickly pushing shares of PENN within range of triggering a breakout trade. That trade will hit if PENN manages to take out some near-term overhead resistance at $57.44 to some past resistance at $58 with high volume.
Traders should now look for long-biased trades in PENN as long as it's trending above Monday's low $55.65 or above more support at $54.71 and then once it sustains a move or close above those breakout levels with volume that this near or above 824,334 shares. If that breakout hits soon, then PENN will set up to re-test or possibly take out its 52-week high at $59.93. Any high-volume move above $59.93 will then give PENN a chance to hit $65.
5 Best Casino Stocks To Buy For 2014: Wynn Resorts Limited(WYNN)
Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes approximately 22 food and beverage outlets comprising 5 dining restaurants; 2 nightclubs; 1 spa and salon; 1 Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; meeting space; and foot retail promenade featuring boutiques. Wynn Las Vegas casino resort also features approximately 147 table games, 1 baccarat salon, private VIP gaming rooms, 1 poker room, 1,842 slot machines, and 1 race and sports book. It also owns and operates an Encore at Wynn Las Vegas resort, a destination casino resort located adjacent to Wynn Las Vegas that features a 2,034 all-suite hotel, as well as a casino with 95 table games, 1 sky casino, 1 baccarat salon, private VIP gaming rooms, and 778 slot machines. In addition, the company operates Wyn n Macau casino resort located in the Macau Special Administrative Region of the People?s Republic of China. Wynn Macau casino resort features approximately 595 hotel rooms and suites, 410 table games, 935 slot machines, 1 poker room, 1 sky casino, 6 restaurants, 1 spa and salon, lounges, meeting facilities, and retail space featuring boutiques. Further, it operates Encore at Wynn Macau resort located adjacent to Wynn Macau. Encore at Wynn Macau resort features approximately 410 luxury suites and 4 villas, as well as casino gaming space, including a sky casino consisting of 60 table games and 80 slot machines, 2 restaurants, 1 luxury spa, and retail space. The company was founded in 2002 and is based in Las Vegas, Nevada.
Advisors' Opinion:- [By Dan Caplinger]
4. Nevada
The $8.25 minimum wage that Nevada pays comes with an interesting twist: Companies that offer health insurance benefits to their employees are allowed to pay $1 less in hourly wages. Although a referendum in 2006 required the state to index its base wage to inflation, the wage has stayed the same since 2010. Another perk: Tipped employees have to receive the same minimum wage as other workers. That's a big cost for Las Vegas Sands (NYSE: LVS ) , Wynn Resorts (NASDAQ: WYNN ) , and other companies with casinos in the state that might otherwise be able to pay many of their tip-earning workers less. - [By Travis Hoium]
Cotai is no doubt the hottest area of Macau for gaming and Wynn Resorts' (NASDAQ: WYNN ) results from the first quarter are another data point showing one of the downsides to this trend. Macau's gaming revenue overall was up 14.8% in the first quarter, but Wynn's revenue was only up 4.4% because its only resort is on the Macau Peninsula. Casinos won't average 14.8% growth across the board because Las Vegas Sands' (NYSE: LVS ) Sands Cotai Central added some capacity vs. last year but we definitely see gaming dollars moving to Cotai, which hurts Wynn.
Top 10 China Companies For 2014: Umax Group Corp (UMAX)
Umax Group Corp., incorporated on March 21, 2011, is a development-stage company. The Company focuses to develop and distribute its product to the arcade and entertainment industry. The Company�� products include Rocket Launch, is Strength testing game which allows players to test their pushing/ throwing strength; Space Hockey, is a two player hockey game - each player must score as many as possible goals and Boxer, is a Simple punch testing game: insert coin/token/bill, press start button, hit the punch bag, wait for result, and try to beat opponent�� score or high score.
As of April 30, 2013, the Company had no revenues. The Company has developed its business plan, and executed exclusive distribution contract GEO a private enterprise, where it engages GEO as an independent contractor for the specific purpose of developing, manufacturing and supplying games for the Company.
5 Best Casino Stocks To Buy For 2014: Pinnacle Entertainment Inc.(PNK)
Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.
Advisors' Opinion:- [By Travis Hoium]
What: Shares of Ameristar Casinos (NASDAQ: ASCA ) and Pinnacle Entertainment (NYSE: PNK ) fell as much as 11% today after the government brought into question the merger of the two companies.
- [By Dan Radovsky]
Pinnacle Entertainment (NYSE: PNK ) has reached an agreement in principle with the Bureau of Competition of the Federal Trade Commission that would allow the company to complete its proposed acquisition of Ameristar Casinos (NASDAQ: ASCA ) , Pinnacle announced today.
- [By Ben Levisohn]
Pinnacle Entertainment (PNK) has gained 56% this year; Las Vegas Sands (LVS) has climbed 38%. And Deutsche Bank has nice things to say about both today.
BloombergFirst Pinnacle. Deutsche Bank’s Carlo Santarelli ponders the stock’s big move and comes away still seeing value in its shares. He writes:
When we upgraded PNK in April, our thesis centered on the FCF strength of the combined entities [Pinnacle completed its acquisition of Ameristar Casinos on Aug. 14], a handful of favorable catalysts, easing regional gaming comps, & an inexpensive relative valuation. Given the shares’ sizeable move since then, we believe it is worth revisiting the investment case. Post the announcement of several asset sales and the closing of the transaction, we are adjusting our estimates, raising our PT to $30 from $24, and maintaining our bullish view at current levels given what we still believe to be an attractive free cash flow valuation, meaningful potential synergy realization beyond the $40 mm of announced benefits, and a free option on a lagging regional recovery.
Santarelli also revisited Las Vegas Sands and there too, he likes what he sees. He writes:
With…LVS at [a share price level] that have been challenging to break from over the last year plus, we believe this time is different and hence we see continued upward momentum…In the case of LVS, we see; 1) meaningful mass market strength continuing through year end, setting the stage for upward company and market estimate revisions for 2014, 2) continued cash flow appreciation and capital returns serving as downside protection and positive catalysts, and 3) continued shared gains, largely driven by table optimization and mass market strength, driving both estimates and sentiment.
He also likes Wynn Resorts (WYNN), despite its 34% gain.�Santarelli writes:
As for WYNN, we believe near-term estimates continue to take a back seat to capital return
- [By Sean Williams]
Time to make the switch
If I could name a sector that I'd certainly tread lightly around considering that consumers are tightening their wallets, it would be the casino sector. Casino companies rely on loose wallets and vacations to drive profits. This is why I feel it could be the time to say goodbye to casino and race track operator Pinnacle Entertainment (NYSE: PNK ) near its 52-week high.
5 Best Casino Stocks To Buy For 2014: Boyd Gaming Corporation(BYD)
Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.
Advisors' Opinion:- [By Dan Caplinger]
MGM has built a history of being the odd player out in many of the most lucrative opportunities in the gaming industry. In Macau, the company is stuck in the slower-growth area of the Asian gaming destination. In Las Vegas, the new CityCenter area in the mid-Strip has watered down MGM's opportunities and has created another potential barrier for patrons coming from the northern end of the Strip to its namesake MGM Grand property. And in New Jersey, where online gaming has boosted prospects for Caesars Entertainment (NASDAQ: CZR ) and Boyd Gaming (NYSE: BYD ) , MGM has no exposure.
- [By M. Joy, Hayes]
Industry trends
Other businesses in the industry also have copious related-party transactions. In particular, founder-led businesses Wynn Resorts (NASDAQ: WYNN ) and Boyd Gaming (NYSE: BYD ) �reported a large number of such transactions in their 2013 proxies, including employment of relatives, employee use of company services, and employee use of company-owned property. MGM Resorts International (NYSE: MGM ) , on the other hand, didn't have to report any related-party transactions in its 2013 proxy. - [By Seth Jayson]
Boyd Gaming (NYSE: BYD ) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Boyd Gaming met expectations on revenues and beat expectations on earnings per share. - [By Travis Hoium]
Earnings from Boyd Gaming (NYSE: BYD ) surprised investors last week, but there's still a lot of fundamental weakness for the company. Revenue is declining across the country as more supply is added to the market, and the only way to grow is through acquisitions. The Fool's Erin Miller sat down with Travis Hoium to see how to play the gaming market now.�
Friday, January 17, 2014
Monthly Income Plans: Should investors put money in?
Gold or MFs: Which is better for long-term investment?
Below is the verbatim transcript of Rustagi's interview with CNBC-TV18.
Q: MIPs or monthly income plans. Despite being an ideal product for retail investors, MIPs have lost ground over the last few years. Are MIPs still relevant for retail investors; is it still an option to put money in?
A: MIPs are essentially debt oriented hybrid funds wherein the significant part of the portfolio is invested in debt instrument and a part of the portfolio is invested in equities. The role of debt instrument in the portfolio is to generate regular income as well as create stability whereas equities aim to generate growth. As a combination, it has a potential to do better than traditional option like fixed deposits, bonds and debentures and for someone who invest for longer period or for a year or more and considering that mutual funds are more tax efficient, the post tax return can be much higher. Of course, considering that a part of the portfolio is invested in equity, one has to content with some amount of volatility from time to time.
The general perception about MIP is that these are ideally suited for someone who wants regular income but in reality MIPs can be great option for someone who is looking for capital growth over a period of time. When we talk about MIPs, as I said they have lost ground over the last couple of years and the reason for that is because equity market have been a bit volatile and that reflects in the performance and unfortunately because many investors invest when the market is good because that is when the returns looks good, they feel a bit disappointed and the second reason why MIPs have lost ground because there was a recent hike in the dividend distribution tax, which has made dividend payout option unattractive for most of the investors.
Q: What kind of returns can investors expect from these funds now?
A: If you look at the performance of MIP as a category over five-seven year period. They have given annualised return of around 8 percent but if you look at the leaders in the category like Reliance Monthly Income Plan or HDFC Monthly Income Plan - Long Term , Canara Robeco Monthly Income Plan and Birla Sun Life MIP II -Savings 5 have generated annualised return of around 10 percent. So, some one who is looking to build capital over a longer period with a portfolio that has a restricted exposure to equity, MIP remains a good bet.
Caller Q: Can invest Rs 10,000 per month for children's benefit. Please advise allocation for 20 years?
A: Your time horizon is 20 years and you will be investing on regular basis. Therefore, the right option for you would be to look at equity funds and invest through systematic investment plan (SIP) because when you invest through SIP, the volatility that exists in the market place is taken care of. Here for a time horizon of 20 years if I assume annualised return of around 12 percent, you can hope to build a corpus of around Rs 95 lakh with your investment of Rs 10,000 per month. So, it will be almost there as far as target is concerned.
Therefore, couples of funds that you can consider are ICICI Prudential Focused Bluechip Equity Fund , which is a pure largecap fund and IDFC Premier Equity Fund which is essentially a midcap fund.
Thursday, January 16, 2014
Microsoft Reportedly Considering Ericsson CEO for Top Job
Henrik Montgomery, AFP/Getty ImagesEricsson CEO Hans Vestberg SAN FRANCISCO and STOCKHOLM -- Microsoft is considering Ericsson Chief Executive Officer as a possible successor to outgoing CEO Steve Ballmer, Bloomberg reported, citing sources briefed on the software giant's executive search. The dynamic 48-year-old Swede fits the bill as a media-savvy technology fanatic, but his emergence as a leading candidate for the U.S. company will still come as a surprise to many on Wall Street. Vestberg, a former elite-level handball player, worked his way through the ranks at the world's largest mobile telecom equipment maker, with stints in China, Brazil, Mexico and the United States en route to becoming chief financial officer before taking the top job in 2010. But he has struggled to convince investors that Ericsson can maintain its lead in mobile networks in the face of stiff competition from rivals such as China's Huawei. Since Vestberg took the helm, the company's shares have underperformed the sector. Though the share price has risen 19 percent, in line with Microsoft (MSFT), that compares with a leap of nearly 60 percent for the Stoxx Europe 600 Technology Index over the same period and a 41 percent rise for Sweden's blue-chip index. Both Microsoft and Ericsson declined to comment on Bloomberg's report, though a source close to the U.S. company has said that no CEO appointment is likely until the last week of January at the earliest. Furthermore, Microsoft might prefer a candidate with more experience in consumer products as it tries to take the fight to market leaders Apple (AAPL) and Samsung in handsets and tablets after its purchase of Nokia's mobile phone business. Vestberg was in charge of Ericsson's exit from its handset joint venture with Sony two years ago, ending the company's association with consumer products. "I don't think it's very likely that they will choose Vestberg," said Bengt Nordstrom, head of Swedish telecoms consultancy Northstream. "It's more logical that they will find a U.S. leader, from their network of owners, board members and experienced CEOs with a software, enterprise and media background. There's enough with talent and experience in the U.S. market." Limited Options Since Microsoft's Ballmer announced his retirement plans last August, analysts have discussed potential candidates ranging from company insiders Satya Nadella and Tony Bates to several outsiders. But speculation refocused on internal choices this month after the leading external candidate, Ford Motor (F) CEO Alan Mulally, took himself off the list. Sources familiar with the company have told Reuters that, with Mulally out of the running, the list of candidates able to run a globe-spanning software corporation struggling to expand into the mobile software and devices markets is thin. Analysts say that Microsoft may have to look at "dark horse" candidates, but noted that some widely touted executives in the technology sector, including Pivotal Inc. CEO Paul Maritz, have already declined to take the job.
Wednesday, January 15, 2014
S&P 500 Books Record High as Beige Book Sees U.S. Growing at Moderate Pace
NEW YORK (TheStreet) -- A spate of encouraging economic reports and an upbeat earnings announcement from financial heavyweight Bank of America (BAC) helped push the S&P 500 to a record closing high Wednesday. The S&P 500 added 0.52% to close at 1,848.38 after charging to a record intraday high of 1,850.84, pushing the index into positive territory for the year. The Dow Jones Industrial Average was higher by 0.66% to 16,481.94, and the Nasdaq finished up 0.76% to 4,214.88. The Beige Book report for late November through the end of the year said that for the most part, the economy expanded at a moderate pace; there was an increase in retail activity and real estate markets continued to improve. Wage and price pressures were contained. International Monetary Fund Managing Director Christine Lagarde said Wednesday that central banks around the globe should remain supportive to avoid deflation. "Deflation is a psychological thing that is very hard to break," Lance Roberts, CEO of STA Wealth Management, said in a phone interview. "We have a very stable recovery here and we need to do everything to foster that." Bank of America (BAC) gained 2.3% to $17.16 after demonstrating progress on expenses and improvement in several key businesses in its fourth-quarter earnings report. The World Bank said faster economic growth would be driven by high-income economies this year. It forecast global growth to rise to 3.2% in 2014 from 2.4% last year and 3.4% in 2015. The Empire State Manufacturing Index for January jumped to a better-than-expected 12.5. The Producer Price Index for December rose by an as-expected 0.4%. The core PPI was up a more-than-expected 0.3%. Overall, there was nothing alarming in the inflation report. Chicago Fed Bank President Charles Evans said Wednesday that the job market has strengthened enough to warrant tapering, but that the economy still requires the support of accommodative monetary policy. Atlanta Federal Reserve Bank President Dennis Lockhart will speak on the economy and monetary policy in Atlanta at 5:20 p.m. The Hang Seng finished 0.49% higher. Japan's Nikkei jumped 2.5%. Germany's DAX gained 2.03% and the FTSE rose 0.78%. Dick's Sporting Goods (DKS) gained 2.1% to $56.38 after being upgraded to "outperform" from "neutral" at Credit Suisse. Intel (INTC) increased 0.6% to $26.67 after being hiked to "outperform" from "market perform" at BMO. Raymond James (RJF) popped 2.1% to $54.38 after being initiated at Credit Suisse with an "outperform" rating.
-- Written by Andrea Tse and Joe Deaux in New York.
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Stock quotes in this article: DJI, ^GSPC, ^IXIC, RJF, INTC, DKSTop Penny Companies To Watch For 2014
It was a strange week on Wall Street, highlighted by a slew of earnings reports, an economic slowdown in China, and an epic fall for gold. At the end of the week, the Dow Jones Industrial Average (DJINDICES: ^DJI ) had fallen 2.14% and the S&P 500 (SNPINDEX: ^GSPC ) was off 2.11%. The biggest data point investors should be concerned with was 7.7% GDP growth in China, which fell short of the 8% estimate. Growth of 7.7% would be a blistering pace in the U.S., but in China it's a snail's pace, and the country's growth has been the one bright spot for the global economy.
There was some good news on the market this week. Here are the top three stocks on the Dow.
Coca-Cola (NYSE: KO ) was the biggest winner, jumping 3.8% this week. The company made all of its gains on Tuesday after it reported first-quarter earnings. Revenue fell 0.9% in the quarter, but earnings of $0.46 per share were enough to beat expectations by a penny, and investors rejoiced at the news. Coca-Cola is obviously not a high growth stock these days, but it has very steady earnings, and investors will pay a premium for that in uncertain economic times.
Top Penny Companies To Watch For 2014: (ENTI)
Encounter Technologies, Inc. operates as an online video distribution and technology company that launches proprietary syndication platforms and offers a range of video technology and distribution services to other companies. The company develops and programs solutions for the online streaming, distribution, and networking, as well as for the social network and distribution platforms. It offers end-to-end technology and online marketing services, including design, build, hosting, and online marketing support. The company primarily operates GlobalAdOn.com, a patented technology for the yellow pages publishing industry. Its sales and management platform facilitates the sales and video production process for Internet yellow page publishers and their sales forces, as well as integrates and facilitates various processes, such as video shoot, sales rep, and publisher. The company was formerly known as Encounter.com, Inc. and changed its name to Encounter Technologies, Inc. in De cember 2009. Encounter Technologies, Inc. is based in Fort Myers, Florida.
Top Penny Companies To Watch For 2014: Independent Bank Corporation(IBCP)
Independent Bank Corporation operates as a holding company for the Independent Bank that provides various retail and commercial banking services in Michigan. The company offers various deposit products, including non-interest bearing demand deposits, time deposits, checking and savings accounts, and NOW accounts. It also provides commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services. The company, through its other subsidiaries, offers payment plans used by consumers to purchase vehicle service contracts and title insurance services, as well as provides investment and insurance services. As of May 2, 2011, it operated approximately 100 offices across Michigan?s Lower Peninsula. The company was founded in 1864 and is based in Ionia, Michigan.
Hot Financial Companies To Watch For 2014: PostRock Energy Corporation(PSTR)
PostRock Energy Corporation, an integrated independent energy company, engages in the acquisition, exploration, development, production, and transportation of oil and natural gas in the United States. It operates in two segments, Oil and Gas Production, and Natural Gas Pipelines. The Oil and Gas Production segment primarily focuses on the development of coal bed methane in the Cherokee basin and the Marcellus Shale in Appalachian Basin, as well as has oil properties in Central Oklahoma. As of December 31, 2009, it had approximately 51.9 billion cubic feet equivalent (Bcfe) of estimated net proved reserves; development rights to approximately 516,184 net acres; and operated approximately 2,849 gross wells in the Cherokee Basin. It also had approximately 44,507 net acres of oil and natural gas producing properties with estimated proved reserves of 18.9 Bcfe and approximately 498 gross wells in Appalachian Basin; and had 65 gross wells, development rights to approximately 1,4 80 net acres, and estimated net proved reserves, 3.9 Bcfe in Central Oklahoma. The Natural Gas Pipelines segment involves in transporting, gathering, treating, and processing natural gas. It owns and operates a natural gas gathering pipeline networks of approximately 2,173 miles in the Cherokee Basin and 183 miles in the Appalachian Basin; and a 1,120 mile interstate natural gas pipeline, which transports natural gas from northern Oklahoma and western Kansas to the metropolitan Wichita and Kansas City markets. The company is headquartered in Oklahoma City, Oklahoma.
Advisors' Opinion:- [By Eric Volkman]
LeBlanc is a veteran energy industry CFO. He has filled that role at East Resources -- now a unit of Royal Dutch Shell (NYSE: RDS-A ) -- as well as�PostRock Energy (NASDAQ: PSTR ) , and Range Resources, among others.
Top Penny Companies To Watch For 2014: Fushi Copperweld Inc.(FSIN)
Fushi Copperweld, Inc., through its subsidiaries, develops, designs, manufactures, markets, and distributes bimetallic wire products, principally copper-clad aluminum (CCA) and copper-clad steel (CCS). Its CCA and CCS conductors are used as a substitute for solid copper conductors in applications where specific electrical or physical attributes are necessary. The company markets its products under Copperweld and Fushi brand names. It primarily serves end-user applications in the telecommunication, electrical utility, and transportation markets. The company?s CCS products in the utility market are used in grounding applications, power cables, electrified railroad tracks, and tracer wires. It?s CCS and CCA wires in transportation market are used in original equipment and aftermarket applications for electrified rail applications, as well as in automobiles, trucks, motorcycles, commercial off road equipment, and trailers. The company sells its products through its direct sale s force, as well as through sales agents or distributors primarily in North America, Europe, North Africa, the Middle East, and the People?s Republic of China. Fushi Copperweld, Inc. is based in Beijing, the People?s Republic of China.
Top Penny Companies To Watch For 2014: Sanderson Farms Inc.(SAFM)
Sanderson Farms, Inc., an integrated poultry processing company, engages in the production, processing, marketing, and distribution of fresh, frozen, processed, and prepared chicken products. The company?s prepared chicken product line includes institutional and consumer packaged partially cooked or marinated chicken items. It sells ice pack, chill pack, bulk pack, and frozen chicken in whole, cut-up, and boneless form under the Sanderson Farms brand name. The company sells its products to retailers, distributors, and casual dining operators in the southeastern, southwestern, northeastern, and western United States, as well as to the United States based customers who resell frozen chicken into export markets. Sanderson Farms, Inc. was founded in 1947 and is headquartered in Laurel, Mississippi.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Sanderson Farms (Nasdaq: SAFM ) , whose recent revenue and earnings are plotted below. - [By Diane Alter]
Dividend Stocks That Increased Payout in September
Accenture plc (NYSE: ACN) announced a 14.8%, or $0.12 per share, increase to its semiannual dividend. The management consulting firm will now pay a semiannual dividend of $0.93. Shares yield 2.53%. Agruim Inc. (NYSE: AGU) boosted its dividend by $1.00 per share to a total dividend of $3.00 on an annualized basis. Shares of the global retailer of agricultural products now sprout a 3.54% yield. Air Industries Group Inc. (NYSE: AIRI) doubled its dividend to $0.125 per share. The maker of airplane and helicopter parts now floats a lofty yield of 6.6%. Alexandria Real Estate Equities Inc. (NYSE: ARE) upped its dividend 4.6% to $0.68 per quarter for a yield of 4.21%. Banner Corp. (Nasdaq: BANR) boosted its quarterly dividend 25% to $0.15 per share. The parent company of Banner and Islander Bank serves the Pacific Northwest region. Brady Corp. (NYSE: BRC) lifted its quarterly dividend 2.6% to $0.78 per share. It was the 28th straight dividend increase from the identification solutions company. Shares yield 2.57%. Campbell Soup Co. (NSE: CPB) raised its quarterly dividend to $0.31 per share, up from $0.29. The company last raised its dividend in November 2010. Shares yield a hearty 3.06%. CLARCOR Inc. (NYSE: CLC) raised its quarterly dividend 26% to $0.17 per share. It's the largest percentage increase from the Tennessee-based diversified marketer of mobile filtration and packaging products in the last 20 years, and it continues the company's consecutive streak of increasing dividends for the last 30 years. Franklin Resources Inc. (NYSE: BEN) boosted its quarterly dividend 2.6% to $0.10 per share. Frisch's Restaurants Inc. (NYSE: FRS) increased its quarterly dividend 12.5% to $0.18. Shares yield 3.10% The Goodyear Tire & Rubber Company (NYSE: GT), in a move that suggests good times are ahead, reinstated its dividend at $0.05 per share. Good - [By Rich Duprey]
The four biggest chicken processors in the country are Tyson Foods (NYSE: TSN ) ,�JBS, Perdue, and�Sanderson Farms� (NASDAQ: SAFM ) , which slaughter 60% of all the chickens consumed in the country, and according to the National Chicken Council, the industry has invested tens of millions of dollars in technology and scientific processes to minimize any risks to the buying public. Indeed, every�factory-scale slaughterhouse has four USDA inspectors overseeing its kill lines.�
- [By Arturo Cuevas]
It looks like you and I will be eating more chicken this 2014. Retail beef prices remain at record highs, and we consumers will likely be driven more toward comparatively cheaper chicken meat in 2014. Given this trend, loading up on shares of Sanderson Farms (NASDAQ: SAFM ) , Pilgrim's Pride (NASDAQ: PPC ) , and�Tyson Foods (NYSE: TSN ) �should be worth considering.
Top Penny Companies To Watch For 2014: China Sky One Medical Inc.(CSKI)
China Sky One Medical, Inc., through its subsidiaries, engages in the development, manufacture, marketing, and sale of over-the-counter, branded nutritional supplements, and over-the-counter plant and herb-based pharmaceutical and medicinal products primarily in the People?s Republic of China. The company?s product line includes ointments, sprays, medicated skin patches, injections, capsules, suppositories, tablets, and granules. It offers compound camphor cream that is used for the treatment of various pathogens on the skin surface, such as mycete, trichopytic, staphylococcal bacteria aureus, bacillus coli, and candida albicans; Hemorrhoids ointment, which is made in soft ointment form and is effective in sterilizing and relieving hemorrhoid symptoms, including itching, distending pain, burning, and bleeding; Sumei slim patch, a natural treatment for weight loss; and pain relief patch used for various ailments, including fever, headache, heart dysentery, diarrhea, and sti ffness and pain caused by hypertension. China Sky One also provides anti-hypertension patch that stimulates blood capillaries, improves circulation, and reduces blood pressure; QiXue asthma patch, which is designed for the treatment of chronic inflammation of the airways and lungs; Stomatitis spray used for the treatment of dental ulcers, pharyngitis, and faucitis; Naphazoline Hydrochloride eye drops for the temporary relief of eye redness associated with minor irritations; cardiac arrest early examination kit used for early stage diagnosis of myocardial infarction; and Naftopidil dispersible tablet designed to treat benign enlargement of the prostate among middle age males, as well as various wash fluids, tablets, liniments, syrups, capsules, granules, injections, aerosols, and oral liquids. The company sells its products through Chinese domestic pharmaceutical chains. China Sky One Medical, Inc. is headquartered in Harbin, the People?s Republic of China.
Top Penny Companies To Watch For 2014: Atlas Air Worldwide Holdings(AAWW)
Atlas Air Worldwide Holdings, Inc. provides air cargo and outsourced aircraft operating solutions worldwide. The company operates through four segments: Aircraft, Crew, Maintenance, and Insurance (ACMI); Air Mobility Command (AMC) Charter; Commercial Charter; and Dry Leasing. The ACMI segment offers aircraft that is crewed, maintained, and insured by the company for lease. The AMC Charter segment provides full planeload charter flights to the U.S. military. The Commercial Charter segment provides planeload of capacity charter services to charter brokers, freight forwarders, direct shippers, and airlines. The Dry Leasing segment provides for the leasing of aircraft and/or engines to customers. The company operates a fleet of Boeing 747 freighters. Its customers include airlines, express delivery providers, freight forwarders, the U.S. military, and charter brokers. It operates in Asia, the Middle-East, Australia, Europe, South America, Africa, and North America. As of Decem ber 31, 2009, the company operated a fleet of 747-400 freighter aircraft. Atlas Air Worldwide Holdings was founded in 1992 and is based in Purchase, New York.
Advisors' Opinion:- [By Ben Levisohn]
Atlas Air Worldwide (AAWW) has plunged 21% to $38.63 following its announcement that it would earn less this year than it had previously expected.
Oshkosh has dropped 12% to $46.25 after it reported a profit of 49 cents a share, missing forecasts for 590 cents, as sales of military vehicles plunged.
Top Penny Companies To Watch For 2014: Horizon Lines Inc.(HRZ)
Horizon Lines, Inc., through its subsidiaries, provides container shipping and integrated logistics services. It ships a range of consumer and industrial items, such as refrigerated and non-refrigerated foodstuffs, household goods, auto parts, building materials, and other materials used in manufacturing. The company offers container shipping services to ports within the continental United States, Puerto Rico, Alaska, Hawaii, Guam, the U.S. Virgin Islands, and Micronesia. Its integrated logistics services comprise rail, truck brokerage, warehousing, distribution, expedited logistics, and non-vessel operating common carrier operations. Horizon Lines, Inc. also offers terminal services. The company operates terminals in Alaska, Hawaii, and Puerto Rico; contracts for terminal services in seven ports in the continental United States; and the ports in Guam, Yantian, and Xiamen, China, as well as Kaohsiung, Taiwan. In addition, it offers inland transportation services. As of Dec ember 20, 2009, the company owned or leased approximately 20 vessels and 18,500 cargo containers. Horizon Lines, Inc. serves consumer and industrial products companies, as well as various agencies of the U.S. government, including the Department of Defense and the U.S. Postal Service. The company was founded in 1956 and is based in Charlotte, North Carolina.
Tuesday, January 14, 2014
Best Small Cap Stocks To Invest In Right Now
Our latest recommendation combines two highly profitable asset classes ��small cap stocks and emerging markets ��through the WisdomTree Emerging Markets SmallCap Dividend Index (DGS).
Emerging markets have gotten off to a slow start in 2013. Nevertheless, much of the world�� ��mart money��expects emerging markets to be standout performers during the second half of 2013.
A recent survey, by investment bank Credit Suisse of over 500 market participants with more than $1 trillion in assets under management, found that emerging markets were pegged as the top-performing asset class for 2013.
Best Small Cap Stocks To Invest In Right Now: FuelCell Energy Inc.(FCEL)
FuelCell Energy, Inc., together with its subsidiaries, engages in the development, manufacturing, and sale of high temperature fuel cells for clean electric power generation primarily in South Korea, the United States, Germany, Canada, and Japan. The company offers proprietary carbonate Direct FuelCell Power Plants that electrochemically produce electricity from hydrocarbon fuels, such as natural gas and biogas. Its fuel cells operate on a range of hydrocarbon fuels, including natural gas, renewable biogas, propane, methanol, coal gas, and coal mine methane. The company also develops carbonate fuel cells, planar solid oxide fuel cell technology, and other fuel cell technologies. It provides its products to universities; manufacturers; mission critical institutions, such as correction facilities and government installations; hotels; and natural gas letdown stations, as well as to customers who use renewable biogas for fuel, including municipal water treatment facilities, br eweries, and food processors. The company was founded in 1969 and is headquartered in Danbury, Connecticut.
Advisors' Opinion:- [By Bryan Murphy]
Had shares of its peers and competitors performed as well, it may not even be worth bringing up. But, Plug Power Inc. (NASDAQ:PLUG) shares have done significantly better than FuelCell Energy Inc. (NASDAQ:FCEL) and Ballard Power Systems Inc. (NASDAQ:BLDP) since the end of March. And, PLUG has performed considerably better than FCEL and BLDP have since mid-August. This is more than "just a little volatility." This is a leader breaking away from the pack after a very long lull. Thing is, there's plenty more room for Plug Power to keep running.
- [By Rick Aristotle Munarriz]
Bloomberg via Getty ImagesSteelcase, a leading maker of office furniture, reports this week; its earnings are a bellwether of how corporate America is faring. You can never know in advance all the news that will move the market in a given week, but some things you can see coming. From a pair of leading office furniture companies reporting on the same day to a popular used-car seller showing off its showroom, here are some of the things that will help shape the week that lies ahead on Wall Street. Monday -- New Energy for the New Week: The new trading week kicks off with FuelCell Energy (FCEL) reporting. The builder of fuel cell power plants reports its latest quarterly results after the market closes on Monday. It's been 10 years since FuelCell completed its first commercial fuel cell plant installation. Business is starting to pick up, as it has as many orders over the past two years combined as it did during the eight previous years combined. Revenue should continue to grow as FuelCell grows closer to profitability. Tuesday -- Lone Wolf: Disney's (DIS) "The Lone Ranger" was a flop earlier this year. It failed to break $90 million in domestic box office receipts, and the $260 million it amassed in gross ticket sales worldwide wasn't enough to offset its massive production budget and cinematic distribution. Disney had fared well with Johnny Depp and director Gore Verbinski before. The two teamed up for the blockbuster success of Disney's "The Pirates of the Caribbean" movie series. It convinced a jaded audience to return to the local multiplex for a movie about swashbucklers. But it couldn't revive the Western genre this time around. Despite being a box office bomb, "The Lone Ranger" will get a chance at new life in the home market. It comes out on Blu-ray and DVD on Tuesday. Wednesday -- Office Space: When it comes to stocks, it's safe to say that Steelcase (SCS) and Herman Miller (MLHR) aren't exactly the busy bees of the exchanges. On a typical day you w
Best Small Cap Stocks To Invest In Right Now: Achillion Pharmaceuticals Inc.(ACHN)
Achillion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of treatments for infectious diseases. The company focuses on the development of antivirals for the treatment of chronic hepatitis C; and the development of antibacterials for the treatment of resistant bacterial infections. Its drug candidates for the treatment of chronic HCV include ACH-1625, a protease inhibitor, which is in phase IIa clinical trial for the treatment of chronic HCV; ACH-2684, a pangenotypic protease inhibitor, which is in phase I clinical trial for the treatment of chronic HCV infection; and NS5A inhibitors for the treatment of chronic HCV infection, including ACH-2928, which is to enter a phase I clinical trial, as well as various additional NS5A inhibitors in preclinical development. Its pipeline of product candidates also includes ACH-702 and ACH-2881 for drug resistant bacterial infections; elvucitabine for HIV infection; and AC H-1095 for HCV infection. The company was founded in 1998 and is based in New Haven, Connecticut.
Advisors' Opinion:- [By Sean Williams]
In terms of clinical updates, hepatitis-C-focused biotech Achillion Pharmaceuticals (NASDAQ: ACHN ) announced updated midstage results for its lead compound, ACH-3102, on Tuesday. In trials of genotype-1b treatment naive patients, ACH-3102 plus a ribavirin delivered a 75% success rate in end-of-treatment virologic response. The problem with these results is that not only is Achillion far behind its all-oral peers in terms of development, but its 75% success rate trailed that of Gilead Sciences' Sofosbuvir, which delivered 100% success rates in some of its late-stage trials featuring genotype-1 patients.
- [By Dan Carroll]
Few biotechs were hit as hard as Achillion Pharmaceuticals (NASDAQ: ACHN ) this week, however. Achillion makes up around 2% of the weight of the SPDR Biotech ETF, and its 7.5% loss this week was a major reason for the fund's fall. This stock has failed to capitalize on the markets' surge this year, losing 10% year-to-date. The company only recently named a new CEO, lifting its former R&D head and chief science officer to the top job. Achillion's still in the developmental stage of its life and thus produces no revenue, and the company's cash burn makes it seem likely that more share dilution is on its way as the company looks to advance its hepatitis-C pipeline over the coming years. Until Achillion produces some meaningful results from that pipeline, this stock will remain a risky play in an already risky space.
- [By Lauren Pollock]
Among the companies with shares expected to actively trade in Monday’s session are Achillion Pharmaceuticals Inc.(ACHN), Active Network Inc.(ACTV) and Harvest Natural Resources Inc.(HNR)
Best China Stocks For 2014: bebe stores inc.(BEBE)
bebe stores, inc. engages in the design, development, and production of women?s apparel and accessories. Its products include a range of separates, tops, dresses, active wear, and accessories in career, evening, casual, and active lifestyle categories. The company markets its products under the bebe, BEBE SPORT, bbsp, and 2b bebe brand names targeting 21 to 34-year-old woman. As of July 2, 2011, it operated 252 retail stores, and an online store at bebe.com in the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Japan, and Canada, as well as 60 international licensee operated stores in south east Asia, the United Arab Emirates, Israel, Russia, Mexico, and Turkey. The company was founded in 1976 and is headquartered in Brisbane, California.
Advisors' Opinion:- [By Rich Smith]
This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense and which ones investors should act on. Today, our headlines include upgrades for both industrialist Aixtron (NASDAQ: AIXG ) and fashionista bebe stores (NASDAQ: BEBE ) . But the news isn't all good, so let's start off with a few words on...
Best Small Cap Stocks To Invest In Right Now: EZchip Semiconductor Limited(EZCH)
EZchip, a fabless semiconductor company, engages in the development and marketing of Ethernet network processors for networking equipment. Its products include network processor chips, evaluation boards and network-processor based systems, and development software toolkits. The company offers network processors for use in forming the silicon core of networking equipment, such as switches and routers; and for voice, video and data integration in various applications. Its network processors are single-chip solutions, which enable its customers to design multi-port line cards, such as processing and classification engines, traffic managers, media access controllers, as well as a range of specialized hardware blocks that accelerate various functions. The company offers Evaluation systems which enable customers to test NPU-based systems; and toolkits that assist customers in creating, verifying, and implementing solutions based on its network processors. It provides a library f eaturing data plane code for a range of applications, which include Metro Ethernet protocols, Multi-Protocol Label Switching, IPv4 and IPv6 routing, Access Control Lists, GPON/EPON OLT functionality, Network Address Translation, and Server Load Balancing. The company sells its products directly, and through contract manufacturers and distributors to network equipment vendors. It markets its products in Israel, China, Hong Kong, the Far East, Canada, the United States, and Europe. The company was formerly known as LanOptics Ltd. and changed its name to EZchip Semiconductor Ltd. in July 2008. EZchip Semiconductor Ltd. was founded in 1989 and is based in Yokneam, Israel.
Advisors' Opinion:- [By Jake L'Ecuyer]
EZchip Semiconductor (NASDAQ: EZCH) was also up, gaining 7.16 percent to $24.11 after a Cisco (NASDAQ: CSCO) announced a new product that would not threaten the company as previously thought. Equities Trading DOWN
Shares of Cypress Semiconductor (NASDAQ: CY) were down 16.05 percent to $9.91 after the company lowered its Q3 forecast. - [By Evan Niu, CFA]
What: Shares of EZchip (NASDAQ: EZCH ) have jumped today by as much as 13% after the company reported first-quarter earnings.
So what: Revenue in the first quarter totaled $15.3 million, topping the Street's forecast of $15.1 million. Non-GAAP net income per share came in at $0.23, which was right on target with expectations.
Best Small Cap Stocks To Invest In Right Now: Rackspace Hosting Inc(RAX)
Rackspace Hosting, Inc. operates in the hosting and cloud computing industry. It provides information technology (IT) as a service, managing Web-based IT systems for small and medium-sized businesses, as well as large enterprises worldwide. The company?s service suite includes dedicated hosting comprising customer management portal and other management tools that manage data center, network, hardware devices, and operating system software; and cloud computing that enables customers to provide and manage a pool of computing resources, as well as delivery of computing resources to business when they need them. It offers cloud servers, cloud files, and cloud sites, as well as cloud applications, such as email, collaboration, and file back-ups; and hybrid hosting that provides a combination of dedicated hosting and cloud computing services. The company also offers customer support services. It sells its service suite through direct sales teams, third-party channel partners, an d online ordering. The company was formerly known as Rackspace.com, Inc. and changed its name to Rackspace Hosting, Inc. in June 2008. Rackspace Hosting, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.
Advisors' Opinion:- [By Investometrica]
First, I compare the stock performance of Salesforce.com with other competitors. Although some competitors are not exactly in the same business, all of them have either a cloud computing or CRM component in their revenue: Citrix Systems (CTXS), Rackspace (RAX), SAP (SAP), Oracle (ORCL), Microsoft (MSFT), IBM (IBM), Amazon (AMZN) and VMware (VMW). Salesforce.com's one year stock performance, 13.51%, is far from the top (that is, SAS, with 31.19%) gainer. On one hand, things could have been worse, as a good number of competitors show negative returns. On the other hand, we should notice that the current stock price level has not changed that much since early 2011 ($39.2 per share). This stagnation is hard to ignore.
Best Small Cap Stocks To Invest In Right Now: China Metro-Rural Holdings Limited(CNR)
China Metro-Rural Holdings Limited, through its subsidiaries, primarily engages in the development and operation of agricultural logistics and trade centers in northeast China. It also involves in purchasing, processing, assembling, merchandising, and distributing pearls and jewelry products. The company markets its pearls and jewelry products to wholesale distributors and mass merchandisers in Europe, the United States, Hong Kong, and other parts of Asia. In addition, it develops, sells, and leases residential and commercial properties in Hong Kong and the People?s Republic of China. The company is based in Tsimshatsui, Hong Kong.
Advisors' Opinion:- [By Katie Brennan]
Canadian National Railway Co. (CNR) added 0.9 percent to C$104.93 and Canadian Pacific Railway Ltd. rose 1.7 percent to C$131.73.
Niko Resources surged 3.4 percent to $8.64 after the company entered an agreement for a $60 million loan that will be funded by a group of institutional investors. Net proceeds from the loan will be used to fund working capital requirements.
