Tuesday, April 29, 2014
Bear of the Day: Agnico Eagle Mines (AEM) - Bear of the Day
Monday, April 28, 2014
4 Stocks to Buy to Hedge Against Higher Gas Prices
That sucking sound you hear is more money going directly from your wallet and into your gas tank. That's right: Gas prices are once again on the move upward — just in time for your summer vacation plans.
According to AAA, a gallon of unleaded fuel hit an average of $3.67 this past Monday. That's about a 7-cent increase from last week and up from the $3.52 a gallon recorded last month. The automobile club predicts that gas prices per gallon will hit $3.75 by early summer before rising further during peak driving times.
The culprit? Lower supply here at home.
While energy companies aren't allowed to export crude oil, they can export finished and refined petroleum products. And that means gasoline. Recent data from the Energy Information Administration showed that energy firms in the U.S. exported about 3.6 million barrels worth of gasoline a day last week, according to the Wall Street Journal. That's an increase of about 25% for the same period last year. All in all, that's crimped domestic supplies of gasoline down to their lowest point for this time of year since 2011.
Lower supply due to exports plus rising demand equal higher gas prices for you and me. Yet, you don't have to take higher gas prices in stride. There are ways investors can hedge and profit from the upcoming pain at the pump. Here's four ways to do just that.
Valero (VLO)As one of the nation's largest independent downstream players, Valero (VLO) is in a prime position to profit from exporting refined petroleum products and rising gas prices. In fact, VLO has made sending gasoline and diesel overseas one of its main pillars of profit.
Valero is responsible for about 20$ to 25% of all refined fuel exports from the U.S. and exports around 20% of all the diesel fuel and 8% of all the gasoline in produces.
During its last earnings report, VLO reported that it sent 193,000 barrels of diesel fuel and 91,000 barrels of gasoline overseas every day during the third quarter. More importantly, Valero has been working to increase that capacity even further and recently beefed up its terminal assets on the Gulf Coast.
Valero has also spent a hefty penny reconfiguring its refineries to run on more light sweet crude oil — the kind produced in the Bakken and Eagle Ford — rather than heavier, sour crude. That gives VLO higher profit margins since gas prices are tied to Brent-benchmarked crude.
VLO trades at just 9 times next year’s expected earnings, so it’s a cheap choice to hedge rising gas prices, and it also offers a 1.8% dividend yield for a little backside protection.
Phillips 66 (PSX)As if ConocoPhillips (COP) spinoff Phillips 66 (PSX) needed any more positives. PSX is already becoming a major player in liquefied petroleum gas (LPG) and propane exports. Meanwhile, it's a major midstream and natural gas processor as well. All of these refining activities are boosting the firm's bottom line.
You can add gasoline exporter to that list of achievements.
Like Valero, PSX has continued to see the benefits of exporting gasoline and diesel — especially to a hungry South American market.
Phillips 66 currently has the capacity to export around 320,000 barrels of gasoline a day from its facilities in the Gulf. As of the fourth quarter of 2013, PSX was using that capacity to send around 190,000 barrels per day. While that was the fourth quarter in a row of rising export volumes, it still leaves plenty of room to raise it more. Also like Valero, PSX has been able to use light sweet crude to its advantage and profit from the rich crack spread.
Meanwhile, Phillips 66 shares, while not as cheap as VLO, still are decently valued at 10.5 times next year’s earnings on anticipated long-term growth of almost 10%. It also yields just less than 2% in dividends.
Enterprise Products Partners, LP (EPD)It shouldn't come as a shock that midstream giant Enterprise Products Partners, LP (EPD) is one of the best ways to play rising gas prices. When you're one of the largest midstream master limited partnerships (MLPs) in the country, you have your hands in a variety of different energy commodities. That includes pipelines that transport refined gasoline to export terminals.
EPD owns three different pipelines that carry refined crude oil to two different Gulf Coast export terminals. Those terminals are within a short tanker trip to the rich Central and South American markets. At the same time, Enterprise is expanding those terminals to begin exporting more gasoline. The terminals will be able to tap into nearly 12 million barrels worth of storage capacity and be able to export 360,000 barrels per day of gasoline, diesel and other products when fully completed by the end of this year.
All in all, these moves should help EPD continue with its rich tradition of rising cash flows and dividends. EPD currently yields a very healthy 3.9%.
United States Gasoline Fund (UGA)One of the best ways to hedge against rising gas prices is to directly bet on that happening. The exchange-traded fund boom has made it easy for anyone with a brokerage account to hedge their gasoline consumption.
The United States Gasoline Fund (UGA) is the way to do it.
UGA attempts to track the changes, in percentage terms, of spot gas prices. It does this by using RBOB gasoline futures contracts and other gasoline-related forwards/swaps traded on the NYMEX exchange. Essentially, UGA avoids investors the hassle of opening and owning a futures account and dealing with the resulting headaches.
UGA is proven to be pretty effective at tracking rising gasoline prices as well.
Over the last five years as gasoline has surged from recessionary lows, UGA has managed to tack on an impressive 208% gain. That gain has certainly made up for the rise in gas prices in that time. Expenses for UGA run 0.6% — or $60 per $10,000 invested — and investors will get a K-1 statement from the fund come tax time.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.
Sunday, April 27, 2014
Bezos’ wife MacKenzie criticizes new Amazon book
In the review, posted on Amazon's website Monday, MacKenzie Bezos criticized the book, The Everything Store, saying it has "too many inaccuracies."
She said that near the beginning of the book her husband is described as having read Remains of the Day by famous author Kazuo Ishiguro and was inspired to start Amazon by that book. But she said that Jeff Bezos did not read that book until after he started the company.
"The book is also full of techniques which stretch the boundaries of non-fiction, and the result is a lopsided and misleading portrait of the people and culture at Amazon," she added in the review.
She gave the book one star out of five. She was the only reviewer to give one star, as of Monday afternoon. The book has got 30 five-star reviews, 11 four-star reviews and two three-star reviews so far on Amazon's website.
The book, written by veteran Amazon reporter and Bloomberg Businessweek journalist Brad Stone, is the first in-depth look at a company that grew from a small online bookseller into one of the world's most successful and powerful Internet businesses.
"I talked to 300 people to get a picture of one of the most interesting and secretive companies around," Stone said in an interview with USA TODAY. "I stand by my book. To the extend that I made mistakes I will gladly fix them."
The book describes CEO Bezos as the talented mastermind behind the company's success. But it also describes him as a sometimes tough leader and portrays Amazon as a difficult place to work for some employees.
"Amazon draws extremely divergent perspectives, not only from competitors but from the people who work there," Stone added. "I tried to do justice to the remarkable achievements of the company and to the fact that it hasn't been an easy path from four people in a garage to a company with over 100,000 employe! es."
This is not the first time MacKenzie Bezos has come out publicly in support of her husband's company. Earlier this year, Bezos, who is an author herself, defended Amazon's role in the publishing world in an interview with the Times of London.
Saturday, April 26, 2014
Can Herbalife Earnings Keep the Stock Soaring?
Herbalife (NYSE: HLF ) will release its quarterly report on Monday and, as the subject of attention from some of the most influential investors in the market, the company can expect fireworks to ensue. In the midst of such a public battle between bullish and bearish investors, it's easy to lose sight of company fundamentals, but Herbalife earnings might help make the case clearer for one side over the other.
Herbalife has faced serious accusations lately, with hedge-fund manager Bill Ackman referring to the company's business model as a pyramid scheme. Yet, equally prominent investor Carl Icahn has taken the opposite side of Ackman's short trade, buying up a big stake in the company, and making moves to put two representatives on the Herbalife board. Meanwhile, though, the company is still in business to make money, and must keep operating despite the controversies. Let's take an early look at what's been happening with Herbalife over the past quarter, and what we're likely to see in its quarterly report.
Stats on Herbalife
| Analyst EPS Estimate | $1.18 |
| Change From Year-Ago EPS | 7.3% |
| Revenue Estimate | $1.16 billion |
| Change From Year-Ago Revenue | 12.4% |
| Earnings Beats in Past 4 Quarters | 4 |
Source: Yahoo! Finance.
How fast can Herbalife earnings grow?
Analysts have had mixed views about Herbalife earnings recently, pulling back on their estimates for the June quarter by $0.08 per share, but boosting their projections for the full 2013 and 2014 years. The stock, though, has been unequivocal in its upward movement, climbing 60% just since late April.
Herbalife started out the quarter well for Icahn and other bullish investors, reporting first-quarter financial results that featured a 17% jump in revenue, and earnings per share that jumped 20%. The company also gave favorable guidance, with expectations of 13% to 15% sales growth producing $4.60 to $4.80 in earnings per share for the full 2013 year.
Fundamentally, the company is in the middle of an industry that's gaining in importance, as people pay more attention to the obesity epidemic. Weight-specialists Weight Watchers and NutriSystem come at the industry from a slightly different angle, with more specialization on weight specifically, without the diverse personal-care and other products that Herbalife offers, and they've faced some challenges in producing growth. GNC Holdings (NYSE: GNC ) , which is arguably a more direct competitor that resembles Herbalife more closely, reported earnings earlier today that rose by 18% from the previous year, sending its stock up nearly 11% in today's trading.
Herbalife recently made a deal with sports and entertainment company AEG Worldwide expanding its existing relationship under which Herbalife sponsors the shirts of the LA Galaxy major-league soccer team. The new deal adds Sweden's Hammarby team to the mix, with the hopes of boosting Herbalife's international exposure.
Still, all attention will remain on the Icahn/Ackman battle for the foreseeable future, especially as it now appears to be as much a personal fight as a difference of investment opinion. One big question is how much in losses Ackman can afford to absorb before a short squeeze of massive proportion results. But for now, neither investor is giving the other any quarter.
In the Herbalife earnings report, watch to see how the company responds to the ongoing drama. Ideally, the company should be able to rely on its fundamental results and let its numbers do the talking for it.
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Friday, April 25, 2014
Yandex: Time to Catch a Falling Knife (YNDX)
To say the last three months have been tough ones for Russian search engine company Yandex NV (NASDAQ:YNDX) would be an understatement. Since the January the January 9th peak of $45.42, YNDX has fallen more than 50%, hitting a low of $21.70 today. Ouch.
As the cliche goes, however, it's always darkest just before down. In stock parlance, it just means that the time to buy into a stock is when it looks like nobody else wants it. Yandex is no exception to that norm, and given the shape and context of today's drubbing, it does indeed look like YNDX is a speculative buy. How's that? Because today looks like a major capitulation for the stock... the point where things literally can't get any worse, starting the transition from a net-selling environment to a net-buying one.
There are three inter-related clues pointing to that end. One of them is the fact that YNDX shares have just been blasted since January, yet still somehow the bears were able to muster a bearish gap this morning. The market doesn't like to leave gaps behind, however, so there's apt to be a lot of bullish pull beginning today.
The second clue that today's action is a pivotal, blowout day is the volume spike. A lot of people are getting in, and a lot of people are getting out. Either way, it points to the same transition from a net-bearish environment to a net-bullish one.
The third and final clue? The shape of today's bar. The open was at the high, then we saw a deep low, and then we saw a very strong push off that low to at least get back to the upper half of today's trading range. It's not a perfect dragonfly doji - a sign of reversal - but it's a pretty good sign, especially knowing how ripe Yandex NV shares are following the steep selloff, and in the shadow of a big bearish gap at today's open. In other words, this really does look like a blowout/capitulation day.
Yes, there's still plenty of risk here as there's still plenty of opportunity for the market to keep chipping away at YNDX. From an odds-making perspective though, today's a good opportunity to take a smart calculated risk on Yandex.
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Which Snack Maker Are You Looking For?
Food industry is one of the safest options to invest in since food can never be out of vogue. Moreover, even snack making industry is quite a lucrative one with some of the prominent players being Kellogg (K), Mondelez International (MDLZ) and J&J Snack Foods (JJSF). However, it is important to understand which among these will be the best pick for any investor.
Stock price comparison of industry players
When stock price performance is compared for all the three players, J&J Snack Foods proves to be the best performer, providing the highest return to its investors.
With a stock price appreciation of 28.6%, J&J has outpaced its peers. Mondelez, too, has performed well with a return of 10.2% in the last one year. The company has not been able to live up to investors' expectations in its last quarter, missing on the top line estimates. This is mainly because of decrease in coffee prices, which hampered the retailer's sales. Also, it has been witnessing lower demand for gum in the developing nations. However, coffee prices are expected to increase in the future, which should lead to higher revenue.
Mondelez has been taking measures to boost its results. For example, its new biscuit facility in Mexico is expected to lower costs and expand margins. Also, it plans to put up new manufacturing lines for its Oreo brand which will cut costs. Additionally, cocoa price is expected to decrease, which should prove to be beneficial.
Kellogg has been the worst performer with almost flat returns in the last one year. This is mainly because of its dependence on sale of cereals. Demand for cereals has been decreasing because of a number of new breakfast options such as Greek yogurts and smoothies.
Nonetheless, Kellogg is taking initiatives to attract customers. It plans to launch a number of new products in order to lure customers. New introductions include Pringles Tortilla chips in various flavours, Cheez it Grooves, and three new varieties of cereals. The retailer is also focused on breakfast items such as SpecialK breakfast sandwich, Kashi and Quinoa burger which are made with organic ingredients. It will be interesting to see how these new products help Kellogg provide stiff competition to other industry players.
Additionally, if we consider profit margin of these companies, on a trailing twelve month basis, Kellogg looks better. It has a profit margin of 12.2% whereas J&J Snack Foods and Mondelez have a profit margin of 7.6% and 11.1%, respectively. However, J&J Snack Foods has been expanding its margins by increasing product prices and keeping its costs under check at the same time. In fact, Kellogg also provides the highest return on equity of 59.4% as against the return of 13.2% and 7.2% of J&J Snack Foods and Mondelez, respectively. Although Kellogg's stock price performance has been dismal, it is providing highest returns to its equity investors.
Final thoughts
J&J Snack Foods has been able to put up a great show mainly because of its acquisition strategy. Acquisition of businesses such as New York Pretzel has strengthened J&J Snack's business, enabling it to outperform its peers. However, Mondelez and Kellogg too are making a number of efforts to perform better. In fact, they look better when profit margins are concerned, with Kellogg providing the highest margin. Therefore, investing in J&J will give better returns whereas Kellogg gives better margins. If returns are what you are looking for, do not look beyond J&J Snack Foods.
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Thursday, April 24, 2014
Yahoo! Pops Again
The following video is from Wednesday's Investor Beat, in which host Chris Hill, and analysts Jason Moser and Matt Argersinger, dissect the hardest-hitting investing stories of the day.
Yahoo!'s second-quarter earnings rose 46%, but the company missed on revenue, as advertising took a hit. Despite the expectations miss, the stock continues to rally on the market. In today's top story, Matt and Jason discuss why CEO Marissa Mayer continues to drive so much investor confidence, and what we can expect from her and the company as she enters her second year as Yahoo!'s first in command.
Plus, Mattel announces that second-quarter profits fell 24%. Bank of America, however, saw its second-quarter profits rise 63%. Google may be getting into the battle for your living room with an online pay-TV service, and finally, the Google of Russia, Yandex hits a 52-week high ahead of earnings. Finally, Matt and Jason discuss why they'll be watching Sherwin-Williams and Athenahealth this week.
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Wednesday, April 23, 2014
The Surprising Economic Consequences of Owning a Pet
Man's best friend is quickly becoming America's hairy stepchild.
And although this shift is good news for the pet supply industry, it also may have some frightening long-term economic consequences -- ones that are currently playing out in other pet-obsessed countries.
Spending on our furry friends
The pet market in America is massive. All told, $53.33 billion was spent on purchasing, feeding, medicating, caring for, boarding, and grooming pets last year alone, according to the American Pet Products Association. This total has doubled since the late '90s, despite two recessions.
The following publicly traded companies have, no doubt, noticed as this growing trend has played out in their improving financials. With the exception of one company, investors have also taken notice:
| PetMed Express (NASDAQ: PETS ) | Runs 1-800-PetsMeds, a pharmacy for pets. | (2.4%) | 3.5% | 10.3% |
| Central Garden & Pet (NASDAQ: CENT ) | Produces pet supplies, such as edible bones, collars, and leashes. | (10.1%) | 9.7% | 64.4% |
| VCA Antech (NASDAQ: WOOF ) | Provides veterinary services and diagnostics. | (0.8%) | 0.2% | (1.1%) |
| PetSmart (NASDAQ: PETM ) | Operates the retail stores that sell pet supplies and food. | 14.8% | 28.1% | 254.9% |
All data from S&P Capital IQ. Returns from Google Finance .
*Based on normalized earnings.
But what's perhaps even more shocking, pets now outnumber children 4-to-1 in America, according to Jonathan Last in his new book, What to Expect When No One's Expecting. Commenting on this statistic, he writes, "the evidence suggests that pets are increasingly treated like actual family members."
He backs his statement up with the bizarre -- but completely true -- reality that auto insurance companies offer add-on policies for when pets are traveling in your car, and that a recent Congressional bill proposed that citizens receive a $3,500 tax break for pet-care expenses.
What happens when pets outnumber kids?
Look no further than Japan and Italy (two countries similarly obsessed with pets) to see what can happen when pets are more prevalent than children: The fertility rate drops.
Japan and Italy both have fertility rates of 1.4, according to the CIA's World Factbook. That's well below the "replacement level" of 2.1 necessary to maintain a steady population.
This low fertility rate eventually forces tough policy decisions. With no extended family to help care for aging parents, adult children become increasingly in need of governmental help (an issue China will similarly face because of its one-child policy). Unfortunately, this help is sought just as the tax base begins to decline because of the shrinking population of workers.
A smaller number of workers attempting to care for a larger number of elderly? Sounds like the situation we're facing right now with Social Security and Medicare.
The only solutions are either an increase in taxes or a decrease in benefits -- neither of which is easy to stomach, and both of which have consequences of their own.
So, no more pets?
Of course, this doesn't mean Americans should abandon pets.
Jonathan Last does acknowledge that the decline in the fertility rate (in America, Japan, and Italy) can't be attributed solely to a rising fondness for pets. It's an instance of correlation, not direct causation.
But the correlation is interesting, nevertheless -- and a fascinating, fresh way to spark much-needed conversation and debate about what Last calls America's "unspoken one-child policy."
If you do own pets, there's a good chance that, like me, you're part of "the 99%." A free report I recently wrote highlights three less-than-luxurious stocks the 1% may be overlooking. Simply click here to read it now.
Tuesday, April 22, 2014
Why IntriCon (IIN) Stock Is Soaring Today
NEW YORK (TheStreet) -- IntriCon (IIN) soared more than 40% to a one-year high of $6.95 on Tuesday after the body-worn device manufacturer reported increases in revenue and net income in its first-quarter results.
The company reported net sales of $17.3 million, its best quarterly figure in more than five years. This marked a 22.5% year-over-year increase from $14.1 million. Net income totaled $517,000, or 9 cents per diluted share, compared to a net loss of $471,000, or 8 cents per diluted share, in the same quarter one year earlier.
Gross profit margin rose year over year to 27.6% from 26.7%.
Net income from continuing operations was $787,000, or 14 cents per diluted share, up from a net loss of $23,000 in the same period a year ago. Net loss from discontinued operations totaled $270,000, or 5 cents per diluted share, compared to a net loss of $448,000, or 8 cents per diluted share, in the same quarter one year ago. This included a loss of $120,000, or 2 cents per diluted share, from the sale of IntriCon Tibbetts Corporation, the company's wholly-owned subsidiary based in Camden, Maine. "We are very pleased with our first-quarter performance-we delivered double-digit top-line gains across all of our businesses and returned to profitability," said President and CEO Mark S. Gorder in a statement. "With our restructuring plan behind us and its significant cost reductions, we're focused on driving business with our key medical and hearing health customers, and pursuing our highest potential growth opportunities: value hearing health and medical biotelemetry." More than 400,000 shares changed hands on Tuesday, which dwarfed the average volume of 5,650. Must Read: Warren Buffett's 10 Favorite Growth Stocks SELL NOW: If you own any of the 900 stocks that TheStreet Quant Ratings has identified as a 'Sell'...you could potentially lose EVERYTHING in the next 6-12 months. Learn more
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Stock quotes in this article: IINMonday, April 21, 2014
American Heritage E-Cigs: From Great to Even Better (ECIG, MO, AHII)
Every cigarette company from Altria Group Inc. (NYSE:MO) to Victory Electronic Cigarettes Corp. (OTCMKTS:ECIG) will want to take notice of this morning's news from American Heritage International Inc. (OTCBB:AHII) - the young startup's electronic cigarettes now have something else great going for them. As such, it just got a little easier for smokers to justify dumping traditional tobacco cigarettes like those made by Altria (like Marlboro) in favor of e-cigs....
...not that it wasn't already pretty easy to do so. The fact that electric cigarettes don't leave tar and other burning carcinogens in smokers' lungs is pretty well documented. That's why sales of e-cigs are expected to explode from last year's $1 billion to $3 billion this year, and that's why sales of electronic cigarettes are expected to surpass tobacco cigarette sales by 2047.But, that's not where the upside of AHII stops.
Even within the electronic cigarette industry alone, American Heritage International is a stand-out. The company has known for weeks now (per consumer testing) that its electronic cigarettes were preferred among its competitors like Victory Electronic Cigarettes, MarkTen (owned by Altria), and NJOY, just to name a few. Well, per this morning's press release, AHII e-cigs now last longer, becoming more and more like a tobacco-based cigarette without all the health hazards and social frustrations.
The upgrade adds to an already-compelling product. Of all the electronic cigarettes out there, American Heritage International's are the only ones that actually look and feel like a real cigarette, as opposed to a ballpoint pen or a mini-flashlight that most e-cigs appear to be at first glance. Consumers love the traditional look and feel too.
With all of that being said, what investors need to know about AHII more than anything else at this point is that the company has only been around for a few weeks, and its high growth phase is just beginning. As of the beginning of April, American Heritage International is still only available in eleven states. However, that's eleven more than its product was available in December. Yes, AHII is still very much a ground-floor opportunity, and though it may be a few years before it causes significant problems for a "big tobacco" name like Altria or Philip Morris, it's not too soon for it to start making problems for a smaller e-cig newcomer like Victory Electronic Cigarettes. Moreover, given how well-received the company's products have been in locales where they've already been launched, today's announced improvement is yet another reason AHII shareholders could be rewarded soon.
For more on American Heritage, its investor presentation PDF offers the most insight. The corporate website can be found here.
The Next Hot IPO to Get Crushed 70%?
Candy Crush is on a candy rush to IPO -- or so say all the pundits.
Lately, the Interwebs have been practically humming with anticipation that the maker of the popular Candy Crush app -- Midasplayer International Holding Co, better known as King.com -- is gearing up to go public. What investors are wondering, though, is whether we're being set up to fail again, after watching the stock of a similar company, with a similar business model -- Zynga (NASDAQ: ZNGA ) -- crash and burn, and burn its bridges with Facebook (NASDAQ: FB ) along the way.
Since its IPO, and since unbundling its sign-in process from Facebook earlier this year, shares of Zynga are down 70%. This naturally worries investors. Yet there are significant differences between the two companies, differences that may allay investor concerns that what happened to buyers of the Zynga IPO will happen to early investors in King as well.
What we know
Much about the upcoming King IPO remains a mystery. Pricing has not been announced. Timing of the IPO, neither. But we do know a few things about King.
Source: Wikimedia Commons.
King is bigger
In the period ending in March 2012, Zynga reported having 65 million active daily users of its products. A year later, the March 2013 tally had dropped 20%, to just 52 million. King, in contrast, says it's now entertaining more than 70 million daily users of its "saga" games, which in addition to Candy Crush, include Pet Rescue and Farm Heroes.
King is popular
With 15 million daily players, Candy Crush is the hottest gaming app on the market today. According to gaming app-tracker thinkgaming.com, Candy Crush currently ranks No. 1 among the top grossing apps for Facebook, and No. 1 on the market overall. It's the No. 3 most popular free app.
Actually, make that "freemium," because Candy Crush is actually making a lot of money for King through the sale of in-app items such as lollipop hammers and extra "lives." Thinkgaming.com last clocked the company making $632,867 per day in revenue off Candy Crush alone. That works out to just over $230 million annually. And once you roll in the revs from its other games, the U.K.'s Telegraph estimates that King is holding court over a revenue stream close to $530 million wide -- up 300% from one year ago.
King is older, and (money-) wiser
Now granted, Zynga made popular games once, too. Indeed, it rode the road to IPO riches on the strength of its FarmVille and CityVille franchises -- and then bombed when those games lost popularity. The same could certainly happen to King if its Candy Crush game, for example, loses hold over the attention of a fickle gamer-nation.
Yet despite its games' initial success, six-year-old Zynga has earned a full-year profit only once, in 2010. Privately held King, in contrast, is both more experienced -- set up in 2003 -- and says it has been profitable every year since 2005.
That's eight straight years of King proving it's no one-hit wonder.
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Sunday, April 20, 2014
5 Best Life Sciences Stocks To Invest In 2015
Pall Corporation (PLL) is a supplier of filtration, separation and purification technologies, principally made by the company, for the removal of solid, liquid and gaseous contaminants from a range of liquids and gases. The company serves customers through two businesses globally: Life Sciences and Industrial. While Pall competes with many companies in the Life Sciences markets and Industrial, few companies operate in both, like ESCO Technologies Inc. (ESE) and Danaher Corp. (DHR).
In this article, let's take a look at this company and try to explain to investors the reasons this is an apparently appealing investment.
Cost Reduction
Pall targeted $100 million in structural cost reductions over the next three years. It saved $50 million during fiscal 2013 by reducing SG&A expenses along with other costs. It expects to save another $50 million in the next couple of years. Further, we think new management is going to focus on improving the company's cost structure in emerging markets as well. Moreover, Pall will focus on markets such as Asia, expanding its outsourcing network in low-cost countries.
5 Best Life Sciences Stocks To Invest In 2015: News Corporation(NWSA)
News Corporation operates as a diversified media company worldwide. Its Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, and movie programming for distribution through cable television systems and direct broadcast satellite operators primarily in the United States, Latin America, Europe, and Asia. The company?s Filmed Entertainment segment produces and acquires live-action and animated motion pictures for distribution and licensing in entertainment media, as well as produces and licenses television programming worldwide. Its Television segment operates 27 broadcast television stations in the United States. The company?s Direct Broadcast Satellite Television segment distributes programming services via satellite and broadband directly to subscribers in Italy. Its Publishing segment provides newspapers and information services, such as publishing national newspapers in the United Kingdom, approximately 146 newspapers in Australia, and a metropolitan and a national newspaper in the United States; book publishing services, including the publishing of English language books worldwide; and integrated marketing services comprising the publishing of free-standing inserts, which are marketing booklets containing coupons, rebates, and other consumer offers, as well as provides in-store marketing products and services, primarily to consumer packaged goods manufacturers in the United States and Canada. The company also sells advertising, sponsorships, and subscription services on the company?s various digital media properties and outdoor advertising space on various media primarily in Russia and eastern Europe; and provides data systems and professional services that enable teachers to use data to assess student progress and deliver individualized instructions. News Corporation was founded in 1922 and is headquartered in New York, New York.
Advisors' Opinion:- [By Rick Munarriz]
Digital distribution was front and center in the bidding war for the popular comedy's syndication rights two years ago. Time Warner's (NYSE: TWX ) Turner Broadcasting vocally dropped out of contention, arguing that the show was too exposed in cyberspace. Hulu and�Disney's (NYSE: DIS ) ABC.com -- but not Netflix -- were streaming earlier episodes. News Corp. (NASDAQ: NWSA ) COO Chase Carey backed Time Warner's move to pass on the sitcom that had become huge for Disney's ABC.
- [By GURUFOCUS]
News Corp. (0.4%) (NWSA - $16.06 (0.3%) NWS - $16.43 (0.1%) - NASDAQ)(NWSA), based in New York, operates in five segments: 1) News and information services ��U.S., United Kingdom, and Australian publishing businesses, including The Wall Street Journal, the Times of London, and the New York Post, along with News America Marketing Corp., a leading provider of free standing inserts (FSIs or cents off coupons); 2) Cable network programming ��Fox Sports Australia; 3) Digital real estate services ��a 62% interest in publicly traded REA Group Ltd. (Australia); 4) Book publishing ��Harper Collins, one of the largest English language publishers in the world; and 5) Other ��primarily the company's K-12 education business ��Amplify. On June 28, 2013, 'old News' Corp. (now Twenty-First Century Fox Inc. (2.4%)) spun off most of its non entertainment assets ('new News') to holders on a one for four basis. We estimate that the company will generate about $800 million of EBITDA on $8.7 billion of revenues for the year ending June 30, 2014.�
5 Best Life Sciences Stocks To Invest In 2015: Theragenics Corporation(TGX)
Theragenics Corporation operates as a medical device company serving the cancer treatment and surgical products markets primarily in the United States and Europe. It operates through two segments, Surgical Products and Brachytherapy Seed. The Surgical Products segment manufactures, markets, and sells disposable devices primarily utilized in surgical procedures. It offers wound closure products, including sutures, needles, and other surgical products; vascular access products comprising introducer sheaths, guidewires, and accessories; and specialty needles consisting of coaxial, biopsy, brachytherapy, guidewire introducer, spinal, and disposable veress, as well as access trocars and other needle-based products. This segment?s products are used in various markets and applications, such as interventional cardiology and radiology, vascular surgery, orthopedics, plastic surgery, urology, veterinary medicine, pain management, endoscopy, and spinal surgery. The Brachytherapy See d segment manufactures, markets, and sells TheraSeed and I-Seed, which are FDA-cleared devices for treatment of solid localized tumors and localized prostate cancer. The company sells its products primarily to physicians, hospitals and other healthcare providers, original equipment manufacturers, and to a network of distributors. Theragenics Corporation was founded in 1981 and is based in Buford, Georgia.
Advisors' Opinion:- [By James E. Brumley]
I hate to be the one to say I told you so, but, I told you so. Back on February 26th I suggested IsoRay, Inc. (NYSEMKT:ISR) shares were a budding breakout play. The 48% rally that's played out for ISR in the meantime unfurled right on cue. While overbought in the very short run, this small cap stock looks like it's earning the right to be compared to the likes of bigger brothers in the cancer-treatment space... names like Roche Holding Ltd. (OTCMKTS:RHHBY) or Theragenics Corporation (NYSE:TGX).
Hot Warren Buffett Companies To Buy Right Now: RLI Corp. (RLI)
RLI Corp., through its subsidiaries, underwrites property and casualty insurance primarily in the United States. The company operates in three segments: Casualty, Property, and Surety. The Casualty segment provides general liability services consisting of coverage for third party liability of commercial insurers, including manufacturers, contractors, apartments, and mercantile; commercial and personal umbrella coverage; and commercial transportation that include automobile liability and physical damage insurance to local, intermediate, and long haul truckers, public transportation risks, and equipment dealers, as well as incidental and related insurance coverage. It also offers professional liability coverages, such as directors? and officers? liability insurance, employment practices liability, and other miscellaneous professional liability coverage; and specialty program coverages, such as commercial property, general liability, inland marine, and crime, as well as deduc tible buy-back. The Property segment offers property coverage that consists primarily of excess and surplus lines and specialty insurance, such as fire and earthquake. It also provides insurance for commercial and industrial risks, such as office buildings, apartments, condominiums, and certain industrial and mercantile structures, as well as writes boiler and machinery coverage; marine coverage, including hull, cargo, and protection and indemnity; homeowners and dwelling fire insurance; and property facultative reinsurance for insurance companies. The Surety segment specializes in writing small-to-large commercial and small contract surety coverages, as well as for the energy, petrochemical, and refining industries. It offers miscellaneous bonds, such as license and permit, notary, and court bonds; and fidelity and crime coverage for commercial insured and select financial institutions. RLI Corp. was founded in 1965 and is headquartered in Peoria, Illinois.
Advisors' Opinion:- [By Neil Macneale]
The top-rated stock among split announcements is RLI Corp. (RLI). I had never heard of this company, and I'm pleased to make its acquaintance.
5 Best Life Sciences Stocks To Invest In 2015: Pioneer Floating Rate Trust(PHD)
Pioneer Floating Rate Trust is closed ended fixed income mutual fund launched and managed by Pioneer Investment Management, Inc. It invests in the fixed income markets of the United States. The fund primarily invests in senior secured floating-rate loans. It invests in fixed income securities with average credit quality of B. The fund benchmarks the performance of its portfolio against the Credit Suisse Leveraged Loan Index. Pioneer Floating Rate Trust was formed on October 6, 2004 and is domiciled in the United States.
Advisors' Opinion:- [By John Dowdee]
The following 10 funds satisfied all of these conditions:
BlackRock Float Rate Strategies (FRA). This CEF sells at a discount of 3%, which is low compared to an average premium of 2% over the past year. The distribution has been managed at 6.1% and a small amount (less than 10%) has been return of capital (ROC). However, this has not negatively affected net asset value (NAV) so has not been destructive. The fund holds 447 securities, with 90% in floating rate loans. FRA utilizes 27% leverage and has an expense ratio of 1.7%, including interest payments. Eaton Vance Floating Rate (EFR). This CEF sells at a 1% premium, which is low compared to an average premium of 5% over the past year. The distribution is 6.2%, none of which was ROC. The fund holds 800 securities, with 90% in floating rate loans. About 85% of the securities are from U.S. companies. EFR utilizes 35% leverage and has an expense ratio of 1.8% including interest payments. ING Prime Rate Trust (PPR). This CEF sells for a premium of 2%, which is below the average premium of 5%. It has a distribution of 6.8%, none of which was ROC. The fund has 350 holdings, virtually all in senior loans and from US companies. PPR utilizes 29% leverage and has a high expense ratio of 2.1%, including interest payments. Invesco VK Dynamic Credit Opportunities (VTA). This CEF sells for a discount of 5%, which is below the average discount of 1%. It has a distribution of 7.1%, none of which was ROC. The fund has 495 holdings, with 76% in floating rate loans. About 25% of the loans are from non-US companies. VTA utilizes a relatively low 20% leverage but still has a high expense ratio of 2.1%, including interest payments. Invesco VK Senior Income (VVR). This CEF sells for a discount of 1%, which is below the average premium of 3%. It has a distribution of 7.1%, none of which was ROC. The fund has over 500 holdings, with 89% in floating rate loans. Almost all (95%) securities are from US companies. VVR ut
5 Best Life Sciences Stocks To Invest In 2015: Iridium Communications Inc(IRDM)
Iridium Communications Inc. provides mobile voice and data communications services through satellites to businesses, the U.S. and foreign governments, non-governmental organizations, and consumers worldwide. It offers post-paid mobile voice and data satellite communications services; prepaid mobile voice satellite communications services; high-speed data services; machine-to-machine services for sending and receiving data from one location to other; and ancillary services, including inbound connections from the public switched telephone networks, SMS, SIM, activation, customer reactivation, and other peripheral services to commercial customers. The company also offers traditional voice, netted voice, data, messaging, and paging services, as well as maintenance services for the DoD?s dedicated gateway; and offers voice and data solutions, including personnel tracking devices; over-the-horizon aircraft communications applications; submarine communications applications; spec ialized communications solutions for high-value individuals; asset tracking devices for equipment, vehicles, and aircraft; and secure mobile communications and data devices for the military and intelligence community, such as secure satellite handsets to U.S. government customers. In addition, it manufactures and sells satellite handsets, voice and data modems, high-speed data devices, and machine-to-machine data devices. Further, the company offers accessories for its devices, including holsters, earbuds, portable auxiliary antennas, antenna adaptors, USB data cables, and charging units. Additionally, it provides engineering and support services to commercial and government customers. The company sells products and services to commercial end-users through service providers, value-added resellers, and value-added manufacturers. As of March 31, 2011, it had approximately 447,000 billable subscribers. The company was founded in 2000 and is headquartered in McLean, Virginia.
Advisors' Opinion:- [By Jake L'Ecuyer]
Telecommunications services sector gained 0.12 percent in the US market today. Among the sector stocks,Iridium Communications (NASDAQ: IRDM) was down more than 4.5 percent, while America Movil S.A.B. de C.V. (NYSE: AMX) tumbled around 2.3 percent.
- [By John Udovich]
The Iridium Communications, Inc. (NASDAQ: IRDM) fiasco about a decade ago might offer investors a cautionary tale about getting into small cap in-flight wifi stock Gogo, Inc. (NASDAQ: GOGO) too soon. Moreover, Gogo, Inc. just had an IPO, but Mad Money’s Cramer recently described that IPO as “horrible” and that "it's still bad” plus there are some issues with the company's in-flight wifi service itself.
- [By John Udovich]
Jim Cramer, the host of CNBC�� Mad Money, recently touted ViaSat, Inc (NASDAQ: VSAT) as an in-flight WiFi or satellite communications related play, meaning its worth taking a closer look at the stock along with the performance of small cap in-flight WiFi provider Gogo Inc (NASDAQ: GOGO) and small cap satellite communications firm Iridium Communications Inc (NASDAQ: IRDM). I should mention that I have written about Gogo Inc in the past (Small Cap Gogo Inc (GOGO): Is There Turbulence Ahead? IRDM�and Is In-flight WiFi Stock Gogo, Inc. (GOGO) the Next Iridium?) and Cramer also touched on some of the differences between the in-flight wifi service offerings of both. Cramer also interviewed ViaSat, Inc�� CEO who said they had been waiting for a new satellite to ��isrupt��the market.
Saturday, April 19, 2014
Top Industrial Conglomerate Companies To Invest In Right Now
NEW YORK (TheStreet) -- U.S. stocks were trading on a cautious note Wednesday following disappointing earnings from Coach (COH), U.S. Bancorp (USB) and IBM (IBM).
The S&P 500 was off 0.09% to 1,842.21, while the Dow Jones Industrial Average was down 0.36% to 16,355.49. The Nasdaq was up 0.24% to 4,235.78, buoyed by a 1.19% gain in Apple (AAPL) after its share price target was raised at Goldman Sachs.
"Given the mixed bag in earnings and some disappointments, investors are really in a wait and see mode before making any additional commitment to the asset class," said Lon Erickson, the Santa Fe, New Mexico-based money manager at Thornburg Investment Management. Thornburg oversees about $90 billion.
Coach was tumbling 6.2% to $49.29 after missing fourth-quarter earnings per share estimates by five cents at $1.06. Same-store sales plummeted 13.6%. Norfolk Southern (NSC) jumped 5.5% to $94.14 after its profit beat forecasts due to higher shipments of chemicals, auto and agricultural products. BlackBerry (BBRY) gained 7.4% to $10.67 after saying it will work with CBRE Group to sell properties that it will lease back from new owners. IBM was shedding 3.80% to $181.27 after the company on Tuesday reported fourth-quarter earnings that beat expectations, but revenues that came in light. Upbeat software and cloud performance helped offset the continued drag from its hardware units. eBay (EBAY) and Netflix (NFLX) will report after market close. eBay was off 0.22% and Netflix was up 0.74%. Netflix's fourth-quarter results may show a big increase in streaming subscribers, but Netflix is likely working harder to get them. The domestic economic calendar is empty Wednesday. Markets closed mixed Tuesday after lackluster results for companies such as Travelers (TRV), Johnson & Johnson (JNJ) and Verizon (VZ). -- Written by Jane Searle in New York.
Top Industrial Conglomerate Companies To Invest In Right Now: Orkla ASA (ORK)
Orkla ASA is a Norway-based company active in various sectors. The Company�� operations are structured into two segments: Branded Consumer Goods and Other Businesses. The Branded Consumer Goods segment is divided into five units: Orkla Foods, which comprises the Company�� food businesses in the Nordic region and the Baltics; Orkla Confectionery, which comprises five branded consumer goods businesses which serve the Nordic region and the Baltics as their home markets; Orkls Home & Personal consists of five branded consumer goods businesses, including Lilleborg, Lilleborg Profesjonell, the Axellus Group, Pierre Robert Group and House Care; Orkla Food Ingredients cover product categories, including margarine, marzipan, bread improvers and mixes, and yeast, and Orkla International includes branded consumer goods companies outside the Nordic region and the Baltics. The Other Businesses segment covers the Company�� operation in aluminum, real estate and hydropower sectors, among others. Advisors' Opinion:- [By Jonathan Morgan]
Orkla ASA (ORK), the Norwegian industrial conglomerate transforming itself into a consumer-goods producer, slumped 11 percent to 46.78 kroner, the largest drop since November 2011. The company reported second-quarter pretax profit of 514 million kroner ($86 million), missing estimates of 965 million kroner in a Bloomberg survey of analysts.
Top Industrial Conglomerate Companies To Invest In Right Now: ThyssenKrupp AG (TKA)
ThyssenKrupp AG is a Germany-based technology holding company operating in seven business areas. The Steel Europe division produces carbon steel flat products. The Steel Americas division is engaged in production, processing and marketing of high-grade carbon steels. The Materials Services division is engaged in global distribution of materials and the provision of complex technical services for the production and manufacturing sectors. The Elevator Technology division is engaged in the area of passenger transportation systems. The Plant Technology division focuses on specialty and large-scale plant construction. The Components Technology division is engaged in manufacturing components for the automotive, construction and engineering sectors as well as for wind turbines. The Marine Systems division focuses on naval and civil shipbuilding. Apart from its business areas, it provides business services, which are diversified into Business Services and Information Technology (IT) Services. Advisors' Opinion:- [By Corinne Gretler]
Telekom Austria (TKA) slid 1.6 percent to 5.63 euros. Second-quarter earnings before interest, taxes, depreciation and amortization fell to 330.3 million euros ($439 million) from 364.8 million euros a year earlier. That compared with the average 332.7 million-euro analyst estimate.
- [By Sofia Horta e Costa]
ThyssenKrupp AG (TKA), Germany�� largest steelmaker, rose to a five-week high. YOC AG (YOC) surged the most in more than three months after the mobile-phone advertising company said it sold 1.3 million euros ($1.7 million) of shares to increase capital. Lanxess AG (LXS), the chemical maker that joined the DAX in September, retreated 3.4 percent.
Top 5 Machinery Companies To Watch In Right Now: Siemens AG (SI)
Siemens AG (Siemens), incorporated on August 28, 1996, is a globally operating technology company with core activities in the fields of energy, healthcare, industry and infrastructure. Siemens business activities focus on four sectors, Energy, Healthcare, Industry and Infrastructure & Cities. These sectors form four of Siemens reportable segments. In addition to the four sectors, Siemens has two additional reportable segments: Equity Investments and Siemens Financial Services (SFS). The Energy sector comprises four divisions: Power Generation, Wind Power, Power Transmission and Energy Service. The Healthcare Sector includes four divisions: Imaging & Therapy Systems, Clinical Products, Diagnostics and Customer Solutions; and one sector-led Business Unit, Audiology Solutions. The Industry sector consists of three divisions: Industry Automation, Drive Technologies and Customer Services; and one sector-led Business Unit, Metals Technologies. The Infrastructure & Cities sector consists of five divisions: Rail Systems, Mobility and Logistics, Low and Medium Voltage, Smart Grid, and Building Technologies. In July 2013 Siemens sold its stake in the Nokia Siemens Networks (NSN) joint venture to Nokia and OSRAM Licht AG was spun off from Siemens.
Industry
The Industry Sector offers a broad spectrum of products, solutions and services that help customers use resources and energy. The Sector�� integrated technologies and holistic solutions primarily address industrial customers, particularly those in the process and manufacturing industries. The portfolio spans industry automation, industrial software, drive products and services, system integration, and solutions for industrial plant businesses. The Industry Sector consists of three Divisions: Industry Automation, Drive Technologies and Customer Services. The Sector also includes a sector-led Business Unit, Metals Technologies. In addition to its Sector-level financial results, Industry also breaks out financial results for the Indust! ry Automation Division and the Drive Technologies Division. The Industry Automation Division offers a range of standard products and system solutions for automation technologies used in the manufacturing and process industries. The Division�� offerings include automation systems and software, motor controls, machine-to- machine communication products, sensors, product and production lifecycle management products, and software for simulating and testing mechatronic systems. The Drive Technologies Division offers products and comprehensive systems across the entire drive train. These offerings are customized to the respective application and include numerical control systems, inverters, converters, motors (geared and gearless), drives and couplings. In addition, Drive Technologies supplies integrated automation systems for machine tools and production machines. The Division also offers integrated lifecycle solutions and services for industries such as shipbuilding, cement, mining, and pulp and paper. The Customer Services Division offers a comprehensive portfolio of services and supports industrial customers.
Energy
The Energy Sector offers a spectrum of products, solutions and services for generating and transmitting power, and for extracting, converting and transporting oil and gas. The Fossil Power Generation Division offers products and solutions for fossil-based power generation. The Division concentrates on products and solutions for gas and steam turbines, turbo generators, heat recovery steam generators including control systems, with an emphasis on combined-cycle power plants. It also develops solutions for instrumentation and control systems for all types of power plants and for use in power generation. The Wind Power Division manufactures wind turbines for onshore and offshore applications, including both geared turbines and direct drive machines. The product portfolio is based on four product platforms, two for each of the onshore and offshore applications. The Oil ! & Gas Div! ision has a comprehensive portfolio of rotating machinery (gas turbines, steam turbines, compressors with associated equipment) and electrical, instrumentation and telecommunication (EIT) solutions. The Power Transmission Division provides customers with turnkey power transmission solutions as well as discrete products, systems and related engineering and services. It covers high-voltage transmission solutions, power and distribution transformers, high-voltage switching and non-switching products and systems, and alternating and direct current transmission systems. The Energy Service Division offers comprehensive services for products, solutions and technologies, covering performance enhancements, maintenance services, customer trainings and consulting services for the Divisions Fossil Power Generation, Wind Power and Oil & Gas. The Wind Power Division is active in both the onshore and the offshore market segments globally. Power Transmission Division is expanding infrastructure in emerging countries, equipment replacement and modernization in mature economies, and integration of renewable energies.
Healthcare
The Healthcare Sector offers customers a comprehensive portfolio of medical solutions across the treatment chain-ranging from medical imaging to in-vitro diagnostics to interventional systems and clinical information technology systems-all from a single source. In addition, the Sector provides technical maintenance, professional and consulting services, and, together with Financial Services (SFS), financing to assist customers in purchasing the Sector�� products. The Healthcare Sector includes four Divisions: Imaging & Therapy Systems, Clinical Products, Diagnostics and Customer Solutions. The Sector also includes one sector-led Business Unit, Audiology Solutions. In addition to its Sector-level financial results, Healthcare also separately breaks out financial results for the Diagnostics Division.
The Imaging & Therapy Systems Division provides large-scale! medical ! devices for diagnostic imaging and for image-guided therapies. Imaging equipment includes computed tomographs, magnetic resonance imaging equipment, angiography systems for diagnostics, and positron emission tomography. The Clinical Products Division mainly comprises the business with ultrasound and X-ray equipment including mammography. The Diagnostics Division offers products and services in the area of in-vitro diagnostics. The Division�� product portfolio represents a comprehensive range of diagnostic testing systems and consumables, including offerings for clinical chemistry and immunodiagnostics, molecular diagnostics, hematology, hemostasis, microbiology, point-of-care testing and clinical laboratory automation solutions. The Customer Solutions Division provides healthcare information technology (HIT) systems. It is responsible for the Sector�� service business and customer relationship management on a global level.
Equity Investments
The Equity Investments comprises equity stakes held by Siemens that are accounted for by the equity method, at cost or as current available-for-sale financial assets and for strategic reasons are not allocated to a Sector, SFS, Centrally managed portfolio activities, Siemens Real Estate (SRE), Corporate items or Corporate Treasury. Its main investments within Equity Investments are its stake of 50% in BSH Bosch and Siemens Hausgerate GmbH (BSH), its stake of 17% in OSRAM Licht AG (OSRAM) as well as its 49% stake in Enterprise Networks Holdings B.V. (EN).
Financial Services
Financial Services provides a variety of financial services and products to other Siemens units and their customers and to third parties. SFS has three strategic pillars: supporting Siemens units with finance solutions for their customers, managing financial risks of Siemens and offering third-party finance services and products. SFS��business can be divided into capital business and fee business. The Commercial Finance Business Unit offers! a compre! hensive range of solutions for equipment financing, leasing, rental and related financing for equipment supplied by Siemens or third-party providers. The Venture Capital Business Segment�� main task, together with Siemens��Sectors, is to identify and finance young companies worldwide. The Treasury Business Unit operates the global Corporate Treasury of the Siemens Group, with SFS employee�� thereby managing liquidity, cash and financial risks (interest, foreign exchange, commodities) on behalf of Corporate Treasury. The Financing & Investment Management Business Unit manages fee-based receivables and offers investment management services. The Insurance Business Unit acts primarily as an insurance broker for Siemens and external customers.
Infrastructure & Cities
The Infrastructure & Cities Sector offers a range of technologies for the sustainability of metropolitan centers and urban infrastructures worldwide, such as integrated mobility solutions, building and security systems, power distribution equipment, smart grid applications and low and medium-voltage products. The Sector consists of five Divisions: Rail Systems; Mobility and Logistics; Low and Medium Voltage; Smart Grid; and Building Technologies. The Rail Systems Division comprises Siemens��rail vehicle business, encompassing the entire spectrum of rolling stock-including high-speed trains, commuter trains, passenger coaches, metros, people movers, light rail vehicles, locomotives, bogies, traction systems and rail-related services. The Mobility and Logistics Division primarily provides products, solutions (including IT solutions) and services for rail transportation operating systems, such as central control systems, interlockings and automated controls. The Division also provides offerings for road traffic, including traffic detection, information and guidance systems.
Advisors' Opinion:- [By Louie Grint]
A discouraging diagnosis
Second, here's a well-known global leader in most of its key businesses: Siemens AG (NYSE: SI ) .In this case, the company reported a lackluster fourth quarter, with a year-over-year decrease in both revenue and earnings. Revenue and orders dropped 1% to 21.2 billion euros and 21 billion euros, respectively.
- [By Dan Carroll]
For Germany's economy, the ongoing swamp of the eurozone will weigh on the nation's exports -- and export-reliant companies -- as it has already. That's no easy hurdle to jump for such a trade-reliant economy as this, and for Germany's top international businesses like industrial conglomerate Siemens (NYSE: SI ) , European business will grow all the more troubling.
Top Industrial Conglomerate Companies To Invest In Right Now: Smiths Group PLC (SMGKF.PK)
Smiths Group plc is a technology company. It has five divisions: Smiths Detection, Smiths Medical, John Crane, Smiths Interconnect and Flex-Tek. The Company and its subsidiaries develop, manufacture, sale and support advanced security equipment, including trace detection, millimeter-wave, infrared, biological detection and diagnostics; mechanical seals, seal support systems, engineered bearings, power transmission couplings and specialist filtration systems, and medical devices aligned to specific therapies, principally airway, pain and temperature management, and vascular access. It also develops, manufactures, sells and supports specialized electronic and radio frequency products for the global wireless telecommunications, aerospace, defense, space, medical, rail, test and industrial markets, and engineered components, including ducting, hose assemblies and heating elements. In May 2011, it acquired the entire issued share capital of SDBR Comercio De Equipamentos De Seguanca LTDA. Advisors' Opinion:- [By Daniel Lauchheimer]
Currently, three main companies supply security equipment to the TSA - Safran (SAFRY.PK), Smiths (SMGKF.PK), and Level-3 Holdings (LLL). All three of these companies sell the whole range of their products to the TSA, with an ETD offering included. Recently, however, a new company, Implant Sciences Corporation (IMSC.PK) received approval from the TSA to begin selling their ETD equipment to airport security professionals. This approval has opened the door for IMSC to begin taking some market share away from the more established players in the US and beyond.
Friday, April 18, 2014
4 Stocks Rising on Big Volume
DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.
>>5 Rocket Stocks for a Tumbling Market
Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."
Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.
>>5 Stocks Insiders Love Right Now
With that in mind, let's take a look at several stocks rising on unusual volume recently.
Mattress Firm
Mattress Firm (MFRM), through its subsidiaries, operates as a specialty retailer of mattresses, and related products and accessories in the U.S. This stock closed up 3.6% to $46.92 in Wednesday's trading session.
Wednesday's Volume: 621,000
Three-Month Average Volume: 221,623
Volume % Change: 208%
From a technical perspective, MFRM spiked notably higher here right above its 50-day moving average of $44.68 with above-average volume. This move is quickly pushing shares of MFRM within range of triggering a big breakout trade. That trade will hit if MFRM manages to take out some near-term overhead resistance levels at $48 to its all-time high at $49.81 with high volume.
Traders should now look for long-biased trades in MFRM as long as it's trending above its 50-day at $44.68 or above more support at $44.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 221,623 shares. If that breakout hits soon, then MFRM will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $55 to $60.
Precision Drilling
Precision Drilling (PDS) operates as an oilfield services company primarily in Canada, the U.S., Mexico and the Middle East. This stock closed up 5.8% to $12.47 in Wednesday's trading session.
Wednesday's Volume: 8.02 million
Three-Month Average Volume: 1.98 million
Volume % Change: 325%
From a technical perspective, PDS gapped up sharply higher here right above some near-term support at $11.69 with heavy upside volume. This move briefly pushed shares of PDS into breakout territory, after the stock flirted with some near-term overhead resistance at $12.49. Shares of PDS close just below that level at $12.47, but very close to its intraday high of $12.53. Market players should now look for a continuation move higher in the short-term if PDS manages to take out Wednesday's high of $12.53 with strong volume.
Traders should now look for long-biased trades in PDS as long as it's trending above Wednesday's low of $12.05 or above more key near-term support at $11.69 and then once it sustains a move or close above $12.53 with volume that hits near or above 1.98 million shares. If that move starts soon, then PDS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that action are $14 to $15.
Conmed
Conmed (CNMD) provides surgical devices and equipment for minimally invasive procedures and monitoring. This stock closed up 6.5% at $48.21 in Wednesday's trading session.
Wednesday's Volume: 599,000
Three-Month Average Volume: 200,934
Volume % Change: 233%
From a technical perspective, CNMD ripped sharply higher here back above its 50-day moving average of $45 with strong upside volume. This move pushed shares of CNMD into breakout territory, after it took out some near-term overhead resistance at $47.58 and flirted with more resistance at $48.88. Market players should now look for a continuation move higher in the short-term if CNMD manages to take out Wednesday's high of $49.07 to its 52-week high at $49.10 with high volume.
Traders should now look for long-biased trades in CNMD as long as it's trending above Wednesday's low of $46 or above its 50-day at $45 and then once it sustains a move or close above those breakout levels with volume that hits near or above 200,934 shares. If that breakout triggers soon, then CNMD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $55 to $60.
Hexcel
Hexcel (HXL), together with its subsidiaries, engages in the development, manufacture and marketing of lightweight and high-performance structural materials for use in commercial aerospace, space and defense, and industrial applications. This stock closed up 2.4% at $43.44 in Wednesday's trading session.
Wednesday's Volume: 1.02 million
Three-Month Average Volume: 641,881
Volume % Change: 77%
From a technical perspective, HXL jumped notably higher here back above its 50-day moving average of $43.17 with above-average volume. This stock recently pulled back right to its 200-day moving average and has subsequently bounced higher off that level. Market players should now look for a continuation move to the upside in the short-term if HXL can manage to take out Wednesday's high of $43.45 to some more near-term overhead resistance at $44.38 with high volume.
Traders should now look for long-biased trades in HXL as long as it's trending above Wednesday's low of $42.47 or above $41.50 and then once it sustains a move or close above $43.45 to $44.38 with volume that's near or above 641,881 shares. If that move kicks off soon, then HXL will set up to re-test or possibly take out its next major overhead resistance levels at $45.51 to its 52-week high at $46.46.
To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
RELATED LINKS:
>>2 Oversold Stocks Ready to Bounce Higher
>>5 Stocks Set to Soar on Bullish Earnings
>>5 REIT Trades Worth Buying in April
Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including
CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.Thursday, April 17, 2014
Beef Prices Are High, Herd Size Is Down -- But That's Only Part Of The Story
The headlines have been scary, especially for the carnivores among us -- beef prices are at their highest level in decades and the overall U.S. cattle herd at its smallest since 1951.
But industry experts say there's more to those numbers than meets the media's eye. Lance Zimmerman, an analyst at the Denver-based industry research group Cattlefax, says the combination of wide-spread drought conditions, along with rising demand, have indeed created challenges for the beef industry.
What's lost in that discussion, he tells Benzinga, is that the cattle industry is "able to produce today nearly twice as much beef from that cow herd as we did in the same one, from a head count perspective, in the 1950s," thanks to continued improvements in genetics, feeding technologies and animal husbandry.
Related: Watch Out, Mickey D's: Jack In The Box Is Making Some Serious Gains
Beef is also the victim of its own popularity. The drought may have decreased the cattle herd, "but...we've also seen increasing demand every single year coming out of the recession," said Zimmerman.
It's not just beef prices that are rising. U.S. pork producers are dealing with the porcine epidemic diarrhea virus (PEDV). The disease has forced them to kill off millions of piglets and, at the same time, driven pork prices up 10 percent or more. Poultry operators, meanwhile, are trying to rebuild their chicken populations, taking advantage of relatively lower corn prices, in the face of growing consumer demand.
At the same time, Zimmerman says, demand for U.S. beef exports from its five key international markets – Japan, Mexico, Hong Kong, Canada and South Korea – has remained "relatively robust" through February, with the March trade data expected in several week's time.
Even though mainland China officially has a ban on U.S. beef, due to the industry's use of the feed additive ractopamine, a lot of American beef is apparently making its way into the People's Republic via Hong Kong and other neighboring countries.
"What is favoring beef from losing considerable market share, with these high prices, is that their competing meats are going to be increasing in price as well," Zimmerman notes. "So beef is actually going to remain relatively competitive to these other proteins – at least through the summer and into the early fourth quarter."
Posted-In: beef beef prices Canada cattle Cattlefax China corn food and beverage Food Prices Hong Kong Japan Lance Zimmerman Mexico porcine epidemic diarrhea virus Pork poultry South Korea U.S. beef exportsNews Commodities Retail Sales Restaurants Events Global Economics Markets General Interview Best of Benzinga
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Most Popular Microsoft Shares Gain 1.5% as Nadella Announces Launch of SQL Server 2014 Market Wrap For April 15: Who Doesn't Love A Turnaround? UPDATE: Organovo Responds, Calls Two Reports from Unknown Firms 'Misleading, Inaccurate' Earnings Scheduled For April 16, 2014 Pandora Media's Next Big Opportunity: Connected Cars The Market Is Not Acting Right Related Articles () BlackBerry Enters Healthcare via NantHealth - Analyst Blog FLIR Receives Defense Contracts - Analyst Blog TASER Wins London Police Contract - Analyst Blog Balanced View on Petrobras - Analyst Blog Moody's Affirms Trustmark's Ratings - Analyst Blog Why SodaSream (SODA) Shares Exploded Higher Today - Analyst Blog Around the Web, We're Loving... Noble Energy to PromoteWednesday, April 16, 2014
Should You Buy Zynga After Its 11% Drop?
A little over a month ago, I wondered if Zynga's (NASDAQ: ZNGA ) terrible first-quarter results had marked the beginning of the end for the social-gaming specialist.
After all, the stock had plummeted 9% that day after the company said bookings -- their metric for tracking customers' in-game virtual goods purchases -- fell 30% year-over-year to just $229.8 million. What's more, total revenue had fallen 18% to $261.3 million, and net income came in at meager $0.01 per share.
Worse yet, Zynga not only issued weak second-quarter sales guidance between $225 million and $235 million, but also told investors to expect a Q2 net loss between $36.5 million and $26.5 million, or between $0.05 and $0.03 per share. In addition, Zynga also said second-quarter bookings would likely be in the disappointing range of $180 million to $190 million.
Still, Zynga had managed to remain cash-flow positive for the quarter, with operating cash flow of $26.4 million and free cash flow of $23.2 million, and it still had $1.67 billion in cash remaining with no debt at the end of March.
Here's why things just got worse
On Monday, Zynga issued a press release which caused the stock to drop 11% and investors to wonder whether anyone realizes just how bad things have gotten for the otherwise cash-rich company.
The release, which was awkwardly titled "Zynga Announces Substantial Cost Reductions," described how Zynga will close some of its various office locations and eliminate 520 employees -- or around 18% of its total workforce -- "across all functions" by August. As a result, though Zynga will incur restructuring charges of approximately $24 million to $26 million in the second quarter, the move should save the company between $70 and $80 million annually before taxes.
If that weren't bad enough, Zynga simultaneously lowered its Q2 guidance and now expects a net loss anywhere from $39 million to $28.5 million. Meanwhile, a strong showing from Zynga's FarmVille franchise wasn't enough to prop up bookings, which are now expected to be in the lower half of the previously supplied range.
Even so, Zynga reaffirmed all other guidance metrics including revenue, earnings per share, adjusted EBITDA, and non-GAAP earnings per share.
Don't touch this house of cards
While the bulls may still be hanging onto a sliver of hope from the company's foray into online gambling, I'm going to have to side with fellow Fool Michael Lewis, who pointed out last month plenty of hurdles still need to be overcome for Zynga to succeed in the space.
After all, even if additional states continue to pass legislation legalizing online gambling, you can bet Zynga will face intense competition from other well-funded competitors. Michael also noted there's a chance recent rumors of a Zynga partnership with Wynn Resorts (NASDAQ: WYNN ) could turn out to be true.
Wynn, for its part, certainly wouldn't mind another source of revenue; while the company did find some growth last quarter thanks in part to its Cotai operations in Macau, that growth still didn't keep pace with Macau as a whole. As a result, Wynn's overall sales managed to rise just 4.9% from the same year-ago period.
Even still, unlike Zynga, Wynn remains solidly profitable and doesn't need to lean on an unproven online presence nearly as bad as Zynga needs a partner to share the risk. In addition, as Zynga's dissolving relationship with Facebook proves, there's still plenty of risk involved with Zynga relying too much on other companies to ensure its own survival.
Foolish final thoughts
Finally, Zynga is no stranger to experiencing painful brain drains, and I suspect this latest round of layoffs will likely result in a fresh exodus of top talent to other gaming firms like Electronic Arts or the ridiculously profitable Activision Blizzard.
In the end, despite all its cash, I'm afraid Zynga is still too risky for my taste. Until its online gambing efforts bear some tangible fruit, these "substantial cost reductions" may only be delaying the inevitable as Zynga extends its vicious downward spiral.
More expert advice from The Motley Fool
Zynga's post-IPO performance has been dreadful, and investors are beginning to wonder if it's "game over" for this newly public company. Being so closely tied to the world's largest social network can be a blessing and a curse. You can learn everything you need to know about Zynga and whether it's a buy or a sell in our new premium research report. Don't even think about picking up shares before you read what our top analysts have to say about Zynga. Click here to access your copy.
Tuesday, April 15, 2014
3 Stocks Rising on Big Volume
DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.
>>5 Stocks Sell Before It's Too Late
Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."
Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.
>>5 Stocks Poised for Breakouts
With that in mind, let's take a look at several stocks rising on unusual volume recently.
Posco
Posco (PKX), together with its subsidiaries, manufactures and sells steel rolled products and plates. This stock closed up 2.2% at $75.45 in Friday's trading session.
Friday's Volume: 613,000
Three-Month Average Volume: 239,925
Volume % Change: 123%
From a technical perspective, PKX jumped modestly higher here with above-average volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $63.71 to its intraday high of $75.69. During that uptrend, shares of PKX have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move to the upside in the short-term of PKX manages to take out Friday's intraday high of $75.69 with strong volume.
Traders should now look for long-biased trades in PKX as long as it's trending above Friday's low of $73.83 or above its 200-day at $72.44 and then once it sustains a move or close above Friday's high of $75.69 with volume that this near or above 239,925 shares. If that move starts soon, then PKX will set up to re-test or possibly take out its next major overhead resistance levels at $79 to its 52-week high at $80.46.
CH Robinson Worldwide
CH Robinson Worldwide (CHRW), a third party logistics company, provides freight transportation services and logistics solutions to companies in various industries worldwide. This stock closed up 1.9% at $54.87 in Friday's trading session.
Friday's Volume: 4.51 million
Three-Month Average Volume: 2.06 million
Volume % Change: 119%
From a technical perspective, CHRW spiked modestly higher here and broke out above some near-term overhead resistance at $54.80 with above-average volume. This breakout has started to push shares of CHRW into its previous gap-down-day zone from February that started just above $58. Market players should now look for a continuation move higher in the short-term if CHRW manages to take out Friday's high of $55.13 with strong volume.
Traders should now look for long-biased trades in CHRW as long as it's trending above Friday's low of $53.92 or above its 50-day at $52.64 and then once it sustains a move or close above Friday's high of $55.13 with volume that's near or above 2.06 million shares. If that move gets underway soon, then CHRW will set up to re-fill some of its previous gap-down-day zone that started just above $58. If that gap gets filled with strong upside volume flows, then CHRW could even tag or take out $60.
DreamWorks Animation SKG
DreamWorks Animation SKG (DWA) is engaged in the development, production and exploitation of animated films and their associated characters worldwide. This stock closed up 3% at $27.68 in Friday's trading session.
Friday's Volume: 2.09 million
Three-Month Average Volume: 1.10 million
Volume % Change: 78%
From a technical perspective, DWA spiked notably higher here with above-average volume. This stock recently formed a double bottom chart pattern at $25.67 to $25.75. Following that bottom, shares of DWA have started to spike higher and flirt with a near-term breakout trade, after the stock briefly traded above some near-term overhead resistance at $27.89. Shares of DWA hit an intraday high of $28.02 on Friday before closing at $27.68. Market players should now watch for a continuation move to the upside in the short-term if DWA manages to take out Friday's high of $28.02 with strong volume.
Traders should now look for long-biased trades in DWA as long as it's trending above Friday's low of $26.45 or above those double bottom support levels and then once it sustains a move or close above Friday's high of $28.02 with volume that's near or above 1.10 million shares. If that move materializes soon, then DWA will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $29.54 to its 200-day moving average of $29.29. Any high-volume move above those levels will then give DWA a chance to tag $31 to $32. Also, keep in mind that DWA has a large gap-down-day zone just above $32 that could come into focus.
To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
RELATED LINKS:
>>5 Stocks Under $10 Set to Soar
>>5 Big Trades to Survive a Roller Coaster Market
>>5 Ways to Profit From a Crowded Short Trade
Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including
CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.