Wednesday, July 31, 2013

Hot Dividend Companies To Watch In Right Now

One of the best ways to make a lot of money in stocks is to invest in dividend-paying stocks. After all, a company that is able to commit to regularly rewarding its shareholders with a payout of cash is a company that's relatively stable, with a sufficiently predictable profit stream. There are pitfalls within the world of dividend investing, though. Here are some tips to help you avoid common blunders.

Don't overshoot
It's easy to be drawn to sky-high dividend yields. Who wouldn't favor a 10% yield over a 3% one, after all? Plenty of 10% yields are solid, but plenty are tied to companies on shaky ground. The best explanation for that is math: A dividend yield is simply a ratio, dividing a stock's annual dividend payout by its current stock price, and then expressing that result as a percentage. Thus, if the stock price falls sharply, you'll be dividing the dividend by a smaller number, and the yield will be bigger. Huge dividend yields are sometimes due to a company simply having a lot of excess cash to distribute, but sometimes they reflect a company in temporary or permanent trouble that has seen its price plunge.

Hot Dividend Companies To Watch In Right Now: Raytheon Company(RTN)

Raytheon Company, together with its subsidiaries, provides electronics, mission systems integration, and other capabilities in the areas of sensing, effects, and command, control, communications, and intelligence systems, as well as mission support services in the United States and internationally. It operates in six segments: Integrated Defense Systems, Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space and Airborne Systems, and Technical Services. The Integrated Defense Systems segment provides integrated naval, air, and missile defense and civil security response solutions. The Intelligence and Information Systems segment offers intelligence, surveillance and reconnaissance, advanced cyber solutions, weather and environmental solutions, and information-based solutions for law enforcement and homeland security. The Missile Systems segment develops and produces weapon systems, including missiles, smart munitions, close-in weapon systems, projectiles, kinetic kill vehicles, and directed energy effectors for the armed forces of the U.S. and other allied nations. The Network Centric Systems segment provides net-centric mission solutions, including integrated communications systems, command and control systems, combat systems, and operations and precision components for the U.S. federal, state, and local government customers, as well as civil customers. The Space and Airborne Systems segment designs and develops integrated systems and solutions for missions, including intelligence, surveillance, and reconnaissance; precision engagement; unmanned aerial operations; and space. The Technical Services segment provides training, logistics, engineering, product support, and operational support services for the mission support, homeland security, space, civil aviation, counterproliferation, and counterterrorism markets. Raytheon Company was founded in 1922 and is based in Waltham, Massachusetts.

Advisors' Opinion:
  • [By Stephen]

    The shares closed at $39.31, up $0.48, or 1.24%, on the day. Its market capitalization is $13.90 billion. About the company: Raytheon Company operates in defense, homeland security and other government markets. The Company provides electronics, mission systems integration in the areas of sensing, effects, command, control, communications and intelligence systems, and mission support services. Raytheon provides products and services worldwide.

Hot Dividend Companies To Watch In Right Now: Public Service Enterprise Group Incorporated(PEG)

Public Service Enterprise Group Incorporated, through its subsidiaries, operates in the energy industry primarily in the northeastern and mid Atlantic United States. The company primarily operates as a wholesale energy supply company that integrates its generating asset operations through its wholesale energy, fuel supply, energy trading, and marketing and risk management activities. It operates nuclear, coal, gas, and oil-fired generation facilities. The company also involves in the transmission of electricity and distribution of electricity and natural gas to residential, commercial, and industrial customers, as well as invests in the development of solar generation projects and energy efficiency programs. In addition, it owns and operates domestic projects engaged in the generation of energy; and offers appliance services and repairs to customers. As of December 31, 2010, it owned approximately 13,538 megawatts of generation capacity. The company also owned and operated approximately 17,608 miles of gas mains, 12 gas distribution headquarters, and 2 subheadquarters, as well as 62 natural gas metering and regulating stations. Public Service Enterprise Group was founded in 1985 and is based in Newark, New Jersey.

5 Best Blue Chip Stocks To Buy Right Now: (TELNY)

Telenor ASA operates as a telecommunication company worldwide. It provides mobile communication, fixed line communication, and television (TV)-based services. The company?s mobile communication services include voice, data, Internet, content, and electronic commerce services, as well as customer equipment, such as telephone sets, mobile phones, smart phones, computers, and PABX?s. Its fixed line services comprise analogue PSTN, digital ISDN, broadband telephony, xDSL, Internet, and leased lines, as well as communication solutions. The company?s TV-based services consist of pay-TV services via satellite dish, cable TV-networks, satellite master antenna TV-networks systems, broadband access services to cable TV-subscribers, and broadcasting rights, as well as security solutions to pay-TV operators. It also provides consulting and information technology services; maritime and aircraft telecommunications services; Internet protocol services; and mobile marketing agency service s, as well as manages two funds. The company has approximately 120 million mobile subscriptions. Telenor ASA was founded in 1885 and is headquartered in Fornebu, Norway.

Advisors' Opinion:
  • [By Richard Band]

    Why would you want to own a telco in Norway? For one thing, as a hedge against the ruinous financial policies of the U.S. government. Thanks to prudent management of the country’s oil revenues, Norway has run a budget surplus every year since 1995. The Norwegian currency (krone), in which Telenor (OTC: TELNY) reports its profits (and pays its dividends), is sounder than both the euro and the U.S. dollar.

    But there’s more to this story. TELNY has expanded far beyond its Norwegian base, with mobile and broadband operations in Sweden, Denmark, central and eastern Europe, plus five Asian countries. As a result, little-known Telenor is one of Europe’s fastest-growing telecom businesses. Sales will likely pass $19 billion in 2011. Current yield: 4.2%. Dividends have nearly quadrupled over the past seven years. This year’s dividend amounts to only about half of TELNY’s estimated 2011 profits, so an increase of 10% or so seems probable when the board declares next year’s payout. Buy TELNY on a pullback below $49.

Hot Dividend Companies To Watch In Right Now: Sanofi(SNY)

sanofi-aventis engages in the discovery, development, and distribution of therapeutic solutions to improve the lives of everyone. The company offers a range of healthcare assets, including a broad-based product portfolio in prescription drugs, OTC/OTX, generics, vaccines, and animal health. It has a strategic alliance with Regulus Therapeutics Inc. to discover, develop, and commercialize micro-RNA therapeutics, initially in fibrosis. The company was founded in 1970 and is headquartered in Paris, France.

Advisors' Opinion:
  • [By Michael]

    Sanofi is a global and diversified healthcare company. Cramer holds 2,600 shares of SNY stocks. SNY has a dividend yield of 5.40% and returned 7.19% since the beginning of this year. It has a market cap of $87.11B and a P/E ratio of 14.42. Ken Fisher invested nearly $600 million in SNY.

  • [By Dividend Stocks Online]

    Sanofi (SNY) has a market capitalization of $129.70 billion. The company employs 113,719 people, generates revenue of $47.297 billion and has a net income of $6.562 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13.805 billion. The EBITDA margin is 29.19 percent (the operating margin is 16.18 percent and the net profit margin 13.87 percent). 

    Financial Analysis: The total debt represents 15.41 percent of the company’s assets and the total debt in relation to the equity amounts to 27.46 percent. Due to the financial situation, a return on equity of 10.42 percent was realized. Twelve trailing months earnings per share reached a value of $3.05. Last fiscal year, the company paid $1.79 in the form of dividends to shareholders. 

    Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.07, the P/S ratio is 2.74 and the P/B ratio is finally 1.70. The dividend yield amounts to 3.46 percent and the beta ratio has a value of 0.91.

Hot Dividend Companies To Watch In Right Now: 21st Century Holding Company(TCHC)

21st Century Holding Company, through its subsidiaries, engages in insurance underwriting, distribution, and claims processing primarily in the United States. The company underwrites homeowners? multi-peril, personal umbrella, commercial general liability, commercial excess liability, personal and commercial automobile, fire, allied lines, workers? compensation, business personal property, and commercial inland marine insurance. It also provides premium financing to its insured?s, as well as third party insured?s. The company markets and distributes its own and third-party insurer?s products and other services through contractual relationships with independent agents, and general agents. 21st Century Holding Company was founded in 1991 and is based in Lauderdale Lakes, Florida.

Hot Dividend Companies To Watch In Right Now: Seadrill Limited(SDRL)

Seadrill Limited, an offshore drilling contractor, provides offshore drilling services to the oil and gas industries worldwide. It also offers platform drilling, well intervention, and engineering services. As of March 31, 2011 the company owned and operated 54 offshore drilling units, which consist of drillships, jack-up rigs, semisubmersible rigs, and tender rigs for operations in shallow and deepwater areas, as well as in benign and harsh environments. Seadrill Limited was founded in 1972 and is based in Hamilton, Bermuda.

Advisors' Opinion:
  • [By Bryan Perry]

    SeaDrill Ltd. (NYSE: SDRL) is a unique opportunity for income investors seeking a pure play on deep-water drilling outside the post-BP spill in the Gulf of Mexico. The company was formed in 2005, and owns the most state-of-the-art drilling equipment in the entire industry that commands premium day rates. It is in big demand with utilization rates running near100% as big oil deposits become harder to find without going deep.

    These guys operate all over the world in 15 countries on four continents, owning 54 rigs with exposure to only one rig in the Gulf of Mexico. Most of their drilling activity is off the coast of Norway and South Asia, so it has no exposure to the now unstable Middle East. However, news of ARAMCO in Saudi Arabia upping drilling production is hugely positive news for the oil and gas drilling sector. It confirms the belief that the worldwide drilling rig count will rise as well as day rates for the balance of 2011.

    Shares of SeaDrill stand to trade significantly higher than its current price of $36.50, while paying a dividend yield of 7.5%. Buy SDRL under $40.

  • [By Chuck]  

    SeaDrill is a company that is mostly involved in offshore drilling. The company provides mobile units, tender rigs and well services across the world. There is a direct connection between oil prices and the profitability of SeaDrill. Last year’s dividend yield was 7.6%. Current P/E ratio of 11.9 is lower than similar sized competitors such as Noble Corporation (NE) and Pride International (PDE). Jonathan Auerbach's Hound Partners and Craig Effron's Scoggin have large investments in another offshore driller, Ensco Plc (ESV).

Tuesday, July 30, 2013

Asian Stocks Rise as Japanese Exporters Gain on Weak Yen

Asian stocks rose, with the regional benchmark index heading for its first advance in five days, as Japanese exporters gained after the yen weakened, and China's central bank injected funds into the money market.

Toyota Motor Corp. (7203) climbed 2.9 percent in Tokyo as the yen's weakness boosted the outlook for export income. Daiwa Securities Group Inc., Japan's second-largest brokerage, rose 3.3 percent after posting earnings that beat analyst estimates. Jiangxi Copper Co., China's biggest producer of the metal, dropped 3.2 percent in Hong Kong after copper futures declined.

The MSCI Asia Pacific Index added 0.5 percent to 133.81 as of 5:42 p.m. in Tokyo, with almost two shares rising for each that fell. The gauge is headed for a 2.5 percent advance this month after China pledged to do more to support transition in the world's second-largest economy and earnings at companies from Daihatsu Motor Co. to Nomura Holdings Inc. beat analyst estimates.

"As the yen continues to weaken, profit at Japanese exporters will improve," said Daphne Roth, Singapore-based head of Asia equity research at ABN Amro Private Bank, which oversees about $207 billion. "That should drive earnings upgrades, boosting the share market. The market will remain volatile as investors await Japan's economic reforms. The market is still hung up on the prospects of the Federal Reserve's stimulus tapering."

Japan's Topix index rose 1.8 percent to close higher for the first time in five days. The benchmark Nikkei 225 Stock Average climbed 1.5 percent.

Fading Optimism

The Topix has climbed 34 percent this year amid optimism Prime Minister Shinzo Abe will push through reforms while the Bank of Japan continues record stimulus to beat deflation. The gauge traded at 1.23 times book value, compared with 2.48 for the S&P 500 and 1.70 for the Stoxx Europe 600 Index.

"The market is range-bound," said Kenichi Kubo, a senior fund manager at Tokio Marine Asset Management Co., which oversees about $51 billion. "At the beginning of this year, stocks extended gains on widespread optimism, but it's not like that now."

Japan's factory output declined 3.3 percent in June, the most since March 2011 when the nation was hit by a record earthquake. That was lower than any forecast in a Bloomberg News survey of 29 economists whose median estimate was for a 1.5 percent drop. A separate report showed the jobless rate fell to 3.9 percent in June, the lowest since 2008.

Liquidity Boost

China's Shanghai Composite Index increased 0.7 percent, heading for its first advance in five days. The country's central bank conducted reverse-repurchase operations for the first time in five months, helping alleviate a cash squeeze that drove the benchmark interbank lending rate to a four-week high. The People's Bank of China added 17 billion yuan ($2.8 billion) to the financial system today at a yield of 4.4 percent using seven-day reverse repos, according to traders.

Hong Kong's Hang Seng Index increased 0.5 percent. South Korea's Kospi Index (KOSPI) added 0.9 percent, while Taiwan's Taiex Index gained 1 percent. Singapore's Straits Times Index added 0.4 percent and Australia's S&P/ASX 200 Index closed little changed. New Zealand's NZX 50 Index dropped 0.6 percent.

India's S&P BSE Sensex slid 1 percent, erasing gains of as much as 0.4 percent, after the nation's central bank left interest rates unchanged.

The Asia-Pacific gauge fell 7.8 percent through yesterday from this year's high on May 20 amid signs China's economic slowdown is deepening and on concern the Federal Reserve will start tapering monetary stimulus. Shares on the gauge traded at 12.9 times estimated earnings as of yesterday, compared with 15.3 times for the Standard & Poor's 500 Index and 13.5 times for the Stoxx Europe 600 Index.

U.S. Futures

Futures on the S&P 500 Index added 0.2 percent. The gauge fell 0.4 percent in New York yesterday as energy shares led losses amid a plunge in natural gas and a report showed a drop in pending home sales.

Japanese exporters rose after the yen fell as much as 0.5 percent today, heading for its first drop in four days. A weaker yen boosts the overseas income of the nation's carmakers and electronics manufacturers when repatriated.

Toyota, the world's biggest carmaker, climbed 2.9 percent 6,070 yen in Tokyo. Sony Corp., the maker of Bravia Televisions and PlayStation game consoles, increased 2.9 percent to 2,117 yen. Panasonic Corp. (6752), Japan's third-biggest TV maker, gained 2.3 percent to 864 yen.

Tencent Holdings Ltd. (700), China's biggest Internet company, jumped 4 percent to a record close of HK$363.60 in Hong Kong. The stock, which is leading gains in the Hang Seng Index this year, advanced 4.1 percent last week after U.S. companies in the sector surged. The company accounted for almost half of the Hang Seng Index's net increase today.

Earnings Performance

Daiwa Securities advanced 3.3 percent to 839 yen. Net income rose to 57.3 billion yen ($582.4 million) for the three months ended June 30 from 2.7 billion yen a year earlier, the company said in a statement yesterday. The results beat the average 51.1 billion yen estimate of six analysts surveyed by Bloomberg News.

Yakult Honsha Co. (2267), a maker pro-biotic and fermented milk drinks, surged 17 percent to 4,935 yen after saying first-quarter profit increased to 3.8 billion yen from 1 billion a year earlier.

10 Best Financial Stocks To Buy For 2014

Of the 152 companies on the MSCI Asia Pacific Index that posted results since July 1 and for which estimates are available, 55 percent exceeded analyst estimates, according to data compiled by Bloomberg.

Yanzhou Coal Mining Co. slumped 9.3 percent to HK$5.26 after China's fourth-largest producer of the fuel reported a preliminary first-half loss after forecasting a profit in April.

Raw-materials producers declined as copper and gold futures fell. Jiangxi Copper slipped 3.2 percent to HK$13.18 in Hong Kong. Zijin Mining Group Co., China's biggest gold producer, fell 3 percent to HK$1.64.

Woolworths Ltd. (WOW) dropped 1.6 percent to A$33.22 after Australia's largest retailer said challenging economic condition were evident in the second quarter.

Monday, July 29, 2013

Top 10 Warren Buffett Companies To Own In Right Now

Warren Buffett may be getting old, but his quotes will live on forever.

The Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  ) chairman is well known for his keen and quotable prose. Though the great investor has never written a book, his lengthy letters to shareholders (the 2012 letter fills 24 pages) have been compiled into more than one. Popular Buffett quotes are found easily with a simple Google search, but for the Buffett enthusiasts looking for some new material, here are nine rarely heard -- but still noteworthy -- quotes.

1. An undying love for "float"

If our premiums exceed the total of our expenses and eventual losses, we register an underwriting profit that adds to the investment income our float produces. When such a profit is earned, we enjoy the use of free money ��and, better yet, get paid for holding it. That's like your taking out a loan and having the bank pay you interest. (2012 Berkshire Hathaway Annual Report)

Top 10 Warren Buffett Companies To Own In Right Now: Petrobras Argentina S.A.(PZE)

Petrobras Argentina S.A. operates as an integrated energy company. The company engages in oil and gas exploration and production activities in Argentina, Venezuela, Ecuador, and Bolivia; and provides technical and operating support services in Mexico. It also operates refineries that produce premium gasoline, ultra high octane gasoline, regular gasoline, diesel oil, fuel oil, solvents, aromatics, asphalts, and liquefied propane and butane gases. In addition, the company sells gas produced by the company, as well as imported; produces petrochemical products, such as styrene, polystyrene, and synthetic rubber; provides oil, gas, and LPG brokerage and trading services; engages in transporting gas in southern Argentina, as well as processing and marketing natural gas liquids; and involves in the gas-fired, thermal, and hydro electric power generation, transmission, and distribution. As of December 31, 2010, it has crude oil and natural gas proved reserves of approximately 248. 4 million barrels of oil equivalent. The company also operated 2 refineries in San Lorenzo and Bah� Blanca, as well as a network of approximately 604 gas stations in Argentina and 27 Spacio 1 convenience stores, including 360 points of sale. It has operations in Argentina, Bolivia, Brazil, Ecuador, Mexico, and Venezuela. The company was formerly known as Petrobras Energia S.A. and changed its name to Petrobras Argentina S.A. in July 2010. Petrobras Argentina S.A. was founded in 1946 and is based in Buenos Aires, Argentina. Petrobras Argentina S.A. operates as a subsidiary of Petroleo Brasileiro.

Top 10 Warren Buffett Companies To Own In Right Now: Envestnet Inc(ENV)

Envestnet, Inc. provides technology-enabled, Web-based investment solutions and services to financial advisors. The company?s technology platform provides financial advisors with a series of integrated services, including risk assessment and selection of investment strategies, asset allocation models, research and due diligence, portfolio construction, proposal generation and paperwork preparation, model management and account rebalancing, account monitoring, customized fee billing, overlay services covering asset allocation, tax management and socially responsible investing, and aggregated multi-custodian performance reporting and communication tools, as well as access to a wide range of leading third-party asset custodians. It also offers Web-based access to a range of technology-enabled investment solutions, including separately managed accounts (SMAs), which allow advisors to offer their investor clients a managed portfolio of securities with a personalized tax basis; unified managed accounts (UMAs) that allow the advisor to use various types of investment vehicles in one account; advisor-directed portfolios, where advisors create, implement, and maintain their own investment portfolio models to address specific client needs; mutual funds and portfolios of exchange-traded funds (ETFs); and access to a range of investment managers and investment strategists. The company was founded in 1999 and is headquartered in Chicago, Illinois.

Advisors' Opinion:
  • [By Harding]

    Envestnet, Inc. is a provider of technology-enabled, Web-based investment solutions and services to financial advisors. The company’s integrated technology platform allows financial advisors to provide their clients with investment solutions and services. Its EPS forecast for the current year is 0.42 and next year is 0.69. According to consensus estimates, its topline is expected to grow 65.45% current year and 21.21% next year. It is trading at a forward P/E of 19.16. Out of six analysts covering the company, five are positive and have buy recommendations and one has a hold rating.

10 Best Low Price Stocks To Own Right Now: Citizens South Banking Corporation(CSBC)

Citizens South Banking Corporation operates as the holding company for Citizens South Bank that provides various commercial banking services to local customers in the United States. The company offers a range of retail products, commercial banking services, and mortgage lending services. It provides retail deposit products, such as checking, savings, negotiable order of withdrawal, and money market accounts, as well as time deposits and individual retirement accounts. The company also offers commercial analysis deposit accounts, business checking accounts, and repurchase agreements for business customers. In addition, it provides various consumer and commercial loans, including business, real estate, residential, and consumer loans. Further, the company offers consumer and business credit cards, debit cards, commercial letters of credit, and safe deposit box rentals, as well as electronic funds transfer services, including automated clearing house and wire transfers. Addit ionally, it provides online banking, remote deposit capture, cash management, bank-by-phone capabilities, and ATM services. The company also acts as a broker in the sale of uninsured financial products. As of March 31, 2011, it operated through 21 branch offices located in North Carolina, South Carolina, and Georgia. The company was founded in 1904 and is headquartered in Gastonia, North Carolina.

Top 10 Warren Buffett Companies To Own In Right Now: Straco Corporation Limited (S85.SI)

Straco Corporation Limited, together with its subsidiaries, engages in the development and operation of tourism-related facilities in the People�s Republic of China. The company develops and operates cable car facilities, aquatic related facilities, dolphin and sea lion performance aquariums, and a restaurant, as well as engages in the supplementary retail of souvenir; provides management and consulting services, and project management services; and is involved in the production and management of shows, as well as provides creative and artistic content. In addition, it engages in investment holding, leisure, travel, and tour businesses. The company was incorporated in 2002 and is based in Singapore.

Top 10 Warren Buffett Companies To Own In Right Now: Cazador Acquisition Corporation Ltd.(CAZA)

Cazador Acquisition Corporation Ltd., a development stage company, intends to effect a merger, share capital exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more operating businesses or assets. It would focus on a business combination in developing countries in central and eastern Europe, Latin America, and Asia. The company was founded in April 2010 and is based in Grand Cayman, Cayman Islands. Cazador Acquisition Corporation Ltd. is a subsidiary of Cazador Sub Holdings Ltd.

Top 10 Warren Buffett Companies To Own In Right Now: Pacific Wildcat Resources Corp (PAW.V)

Pacific Wildcat Resources Corp., an exploration stage company, engages in the acquisition and development of rare earth, tantalum, and niobium mineral properties in Africa. It primarily focuses on the resource definition of the Mrima Hill rare earth and niobium project in Kenya. The company also owns and operates the Muiane tantalum mine in Mozambique. Pacific Wildcat Resources Corp. is headquartered in Vancouver, Canada.

Top 10 Warren Buffett Companies To Own In Right Now: COMS PLC ORD GBP0.001(COMS.L)

Coms plc engages in the development and commercialization of Internet telephony services, and supply and distribution of associated equipment to small and medium sized businesses in the United Kingdom. The company?s Internet telephony enables telephone calls to be transmitted as data over the Internet. It offers hosted VoIP, voice optimized broadband for business, PSTN CPS business telephone, audio and video conferencing, inbound numbers, number porting, and enterprise VoIP services. The company?s Internet telephony services related equipment comprises Internet telephony handsets, VOIP gateways, video phones, and integration consulting and SIP trunks. Coms plc was founded in 2000 and is based in London, the United Kingdom.

Top 10 Warren Buffett Companies To Own In Right Now: Bioquell(BQE.L)

Bioquell PLC engages in the design, manufacture, and supply of bio-decontamination equipment and services for the life sciences, healthcare, and defense sectors in the United Kingdom and internationally. The company operates in two divisions, Bio-decontamination and TRaC. The Bio-decontamination division develops, designs, and manufactures specialist surface sterilization and filtration technology used in the life sciences, healthcare, and defense sectors. It also offers room bio-decontamination services; chemical, biological, radiological, and nuclear filtration equipment; and Microflow and Astec laboratory filtration and containment equipment. The TRaC division provides specialist testing services, including environmental testing, telecoms testing, radio testing, EMC testing, safety testing, and CE mark testing, as well as finite element analysis and seismic testing services. It also provides regulatory and compliance services to companies and organizations. The company is based in Andover, the United Kingdom.

Top 10 Warren Buffett Companies To Own In Right Now: Solera Holdings Inc.(SLH)

Solera Holdings, Inc., together with its subsidiaries, provides software and services to the automobile insurance claims processing industry. The company offers estimating and workflow software to manage the overall claims process, estimate the cost to repair a damaged vehicle, and calculate the pre-collision fair market value of a vehicle; and salvage, salvage disposition, and recycling software that manages inventories in order to facilitate the location, sale, and exchange of vehicle parts for use in the repair of a damaged vehicle. It also provides business intelligence and consulting services that enable insurance companies to monitor and assess their performance through customized data, reports, and analyses; and leases hardware products for use with its software, training, and call center technical support services. In addition, the company offers various services that allow its customers to access operational and technical support in times of high demand following natural disasters; and used vehicle validation, fraud detection software and services, and disposition of salvage vehicles. Further, it provides products and services for accessing information on the United Kingdom registered vehicles to private car buyers, car dealers, finance houses, and the insurance industry; data analytics to insurance companies and brokers in the Netherlands; and an electronic exchange for the purchase and sale of vehicle replacement parts in Brazil and Mexico. The company primarily serves insurance companies, collision repair facilities, independent assessors, and automotive recyclers in North America, Central and South America, Europe, the Middle East, Africa, Asia, Australia, and the Netherlands. Solera Holdings, Inc. was founded in 1966 and is headquartered in Westlake, Texas.

Top 10 Warren Buffett Companies To Own In Right Now: W.P. Carey & Co. LLC(WPC)

W. P. Carey & Co. LLC, together with its subsidiaries, provides long-term sale-leaseback and build-to-suit transactions for companies worldwide and manages a global investment portfolio. It invests primarily in commercial properties that are each triple-net leased to single corporate tenants, which requires each tenant to pay substantially all of the costs associated with operating and maintaining the property. The company also operates as an advisor to publicly owned, non-actively traded real estate investment trusts, which are sponsored by it under the Corporate Property Associates brand name, as well as invests in similar properties. As of March 31, 2010, its portfolio comprised full or partial ownership interest in 167 properties that totaled approximately 14 million square feet. W. P. Carey & Co. LLC was founded in 1973 and is based in New York, New York.

Sunday, July 28, 2013

Mueller Industries Beats Analyst Estimates on EPS

Mueller Industries (NYSE: MLI  ) reported earnings on July 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 29 (Q2), Mueller Industries met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.

Margins expanded across the board.

Revenue details
Mueller Industries logged revenue of $582.3 million. The one analyst polled by S&P Capital IQ anticipated revenue of $579.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.90. The three earnings estimates compiled by S&P Capital IQ averaged $0.85 per share. Non-GAAP EPS of $0.90 for Q2 were 91% higher than the prior-year quarter's $0.47 per share. GAAP EPS of $3.23 for Q2 were much higher than the prior-year quarter's $0.47 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 13.9%, 190 basis points better than the prior-year quarter. Operating margin was 6.5%, 150 basis points better than the prior-year quarter. Net margin was 15.7%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $509.7 million. On the bottom line, the average EPS estimate is $0.73.

Next year's average estimate for revenue is $2.31 billion. The average EPS estimate is $3.32.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 155 members out of 162 rating the stock outperform, and seven members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Mueller Industries a green thumbs-up, and give it a red thumbs-down.

Top 5 Energy Stocks To Invest In Right Now

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mueller Industries is buy, with an average price target of $61.00.

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Add Mueller Industries to My Watchlist.

Saturday, July 27, 2013

What Panera Could Learn From Chipotle

Panera Bread (NASDAQ: PNRA  ) is in unfamiliar territory. After logging industry-trouncing sales growth for years, its latest results put it much closer to plain old average. That could be bad news for a stock that's trading at a premium to other casual dining giants.

For the quarter that just ended, Panera saw comparable sales growth of just 3.8%. That was lower than the 4%-5% annual target it forecast last quarter, which itself was below the 4.5%-5.5% that Panera was expecting two quarters ago. Something clearly isn't working at the bakery-cafe.

What's working
Store growth isn't the issue. Panera opened 37 new locations in the quarter, bringing its total to 1,708 restaurants. The company sees loads of potential for boosting its store footprint and expects to hit the high end of its full-year openings goal of 115 to 125 new units.

Profitability is on track, too. Operating margin inched up by 60 basis points, keeping Panera firmly ahead of Darden Restaurants (NYSE: DRI  ) , and closing in on Chipotle Mexican Grill (NYSE: CMG  ) .

PNRA Operating Margin TTM Chart

PNRA Operating Margin TTM data by YCharts

What's not working
But Panera is coming up short where it counts the most -- during peak lunch hour. After average food production times spiked last quarter, Panera has called out its throughput as a major operational weakness. It seems that for many of the company's locations last quarter, the customer traffic was there, but service just wasn't quick enough to satisfy it.

That could be due to Panera's increasingly complex menu. The company recently added a full line of pasta dishes to its offerings. And while that's been great for boosting check averages, it might have slowed down the kitchen and limited total output.

It doesn't have to be that way. For clues on mastering the art of high-volume feeding, Panera can look to Chipotle. The burrito slinger's most efficient restaurants process 350 orders over lunch hour, moving one through the line every 11 seconds. Sure, that's mostly thanks to Chipotle's buffet-line concept that keeps the kitchen humming. But the company has also been extremely careful about adding anything to its menu for fear of gumming up the works.

A tough road ahead
The good news is that Panera is aware of the production issue and plans to meet it head-on. But it won't be an easy fix.

Management warned of "choppy" results over the next few quarters -- and a potential drop in profitability -- as it makes the investments required for getting throughput numbers up. That spending will be worth it if it helps Panera serve all of its customers at peak hours, lifting the company's sales growth back to above average in the process.

If you're an investor who prefers returns to rhetoric, you'll want to read The Motley Fool's new free report "5 Dividend Myths ... Busted!" In it, you'll learn which stocks provide premium growth and whether bigger dividends are better. Click here to keep reading.

Friday, July 26, 2013

Can Hertz Global Holdings Meet These Numbers?

Hertz Global Holdings (NYSE: HTZ  ) is expected to report Q2 earnings on July 29. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Hertz Global Holdings's revenues will grow 21.7% and EPS will grow 28.6%.

The average estimate for revenue is $2.71 billion. On the bottom line, the average EPS estimate is $0.45.

Revenue details
Last quarter, Hertz Global Holdings booked revenue of $2.44 billion. GAAP reported sales were 24% higher than the prior-year quarter's $1.96 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.21. GAAP EPS were $0.04 for Q1 against -$0.13 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 21.1%, 280 basis points better than the prior-year quarter. Operating margin was 10.3%, 360 basis points better than the prior-year quarter. Net margin was 0.7%, 360 basis points better than the prior-year quarter.

10 Best Stocks To Invest In Right Now

Looking ahead

The full year's average estimate for revenue is $10.90 billion. The average EPS estimate is $1.90.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 207 members out of 285 rating the stock outperform, and 78 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give Hertz Global Holdings a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hertz Global Holdings is outperform, with an average price target of $23.88.

If you're interested in transportation companies like Hertz Global Holdings, then you should check out our special report that features 3 companies who depend on, and invest in, that industry. Learn the basic financial habits of millionaires next door and get these 3 focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

Add Hertz Global Holdings to My Watchlist.

Thursday, July 25, 2013

Stateless Income: What It Means for the Stocks You Own

With taxes having risen for most people at the beginning of 2013, ordinary Americans are increasingly angry about the steps that many well-known U.S. companies have used to minimize or eliminate their tax bills. By creating what's become known as stateless income, companies have navigated the complexities of international tax law to earn more money free of tax than many Americans believe reflects their fair share of the nation's overall tax burden.

Now, though, the IRS has said that it plans to clamp down on companies using stateless income strategies, with the intent to pursue enforcement claims against users of the controversial techniques. Let's take a closer look at how companies create stateless income and whether IRS moves will hurt them in the near future.

Who's earning stateless income?
Two months ago, Congressional hearings focused on tax strategies that many multinational corporations have successfully used to minimize their corporate tax liability. A Senate subcommittee report found that Apple (NASDAQ: AAPL  ) successfully saved billions of dollars in potential U.S. tax liability by using foreign business entities. Because those units didn't have any legally determinable country of origin for tax purposes, the earnings they generated became stateless income.

Several other companies use similar strategies to cut their tax bills in high-tax jurisdictions. Google (NASDAQ: GOOG  ) has used units based in Ireland and the Netherlands to help greatly reduce taxation on the money it earns, while Professor Edward Kleinbard's recent paper "Through a Latte, Darkly" goes into great detail about the methods that Starbucks (NASDAQ: SBUX  ) used to minimize tax payments to the U.K. through the use of affiliates in the U.S., the Netherlands, and Switzerland. A Bloomberg article from 2011 cited Forest Labs (NYSE: FRX  ) as using a strategy similar to Google's involving an Irish unit headquartered in Bermuda, while the same article said Cisco Systems (NASDAQ: CSCO  ) attributed half its profits to a unit in Rolle, Switzerland.

10 Best Stocks To Invest In Right Now

The unsolvable problem
The problem that countries have in collecting taxes from multinational corporations is that it's increasingly difficult in the global economy to attribute income to particular business units accurately. When global divisions of large corporations used to act largely autonomously and separately, it was reasonable to assume that reported revenue and earnings reflected actual sales and profits that each country's business division brought in. Now, though, with global commerce having become commonplace, it's much easier for companies to manipulate their tax liability with intra-company transactions that produce huge tax savings by shifting income to lower-tax jurisdictions.

Moreover, the rise of intangibles like intellectual property makes it even easier to relocate income-producing assets at will. Simply by assigning a valuable asset to a subsidiary in a low-tax environment, a company can make a massive shift in where taxable income comes from that has huge implications for total tax liability.

One world, one tax rate?
The best theoretical solution to the stateless income problem is also the most unrealistic one: setting a uniform global tax rate that would remove the incentive for companies to prefer one jurisdiction over another and the barriers to repatriating profits. Without such incentives, companies would presumably pay taxes wherever it made sense to do so rather than to produce tax savings.

Absent that solution, though, the IRS and other tax authorities in high-tax jurisdictions will have no choice but to fight big corporations under broad and somewhat vague laws challenging the true business purpose of tax-motivated moves to create stateless income. That will prove to be an uphill battle for the IRS unless Congress moves to create tighter laws on international tax enforcement. With that being unlikely in the current political environment, shareholders of companies like Apple, Starbucks, Forest Labs, Cisco, and Google probably don't have much to worry about in the near future.

Unfortunately, you won't be able to create stateless income to avoid the personal tax increases that took effect at the beginning of 2013. But with the right planning, you can take steps to take control of your taxes and potentially create at least some tax savings. In our brand-new special report "How You Can Fight Back Against Higher Taxes," the Motley Fool's tax experts run through what to watch out for in doing your tax planning this year. With its concrete advice on how to cut taxes for decades to come, you won't want to miss out. Click here to get your copy today -- it's absolutely free.

Wednesday, July 24, 2013

A Biotech Investing Strategy for Retirees

Conventional wisdom says that investing in biotech is too risky for retirees. Biotech stocks are too volatile. They can crash and burn. Retirees should stick with bonds and boring high-yield stocks. Despite these warnings, I think that there is a biotech investing strategy for retirees that could help make retirement much more enjoyable.

Let me first be clear that I agree with most of the conventional wisdom. Many individual biotech stocks are too volatile for investors seeking to preserve capital. The advice frequently given that retirees allocate significant percentages of their portfolios to income-oriented investments like bonds and dividend stocks makes a lot of sense.

But there is a smart way for retirees and soon-to-be retirees to gain exposure to the heart-pounding, pulse-quickening world of biotech without taking on an inordinate amount of risk. This strategy is to invest a modest amount into a biotech exchange traded fund, or ETF, as opposed to buying individual biotech stocks.

One good pick is the iShares Nasdaq Biotechnology ETF (NASDAQ: IBB  ) . iShares started this ETF back in 2001 to track the performance of the NASDAQ Biotechnology Index. The fund usually has at least 90% of its portfolio invested in biotech or pharmaceutical stocks. Its annual expense ratio stands at 0.48%.

Currently, the top 10 stocks in which the ETF is invested comprise more than 55% of total assets. Sure, there are some speculative names included in the full list of holdings. However, the largest stakes are in big biotechs with long track records, like Gilead Sciences (NASDAQ: GILD  ) , Celgene (NASDAQ: CELG  ) , Amgen (NASDAQ: AMGN  ) , and Biogen Idec (NASDAQ: BIIB  ) . These top four holdings make up almost one-third of the ETF's total assets.

Over the past five years, the iShares Nasdaq Biotechnology ETF has performed well against these major components. Only Biogen outpaced the ETF by a wide margin.

IBB Total Return Price Chart

IBB Total Return Price data by YCharts.

More importantly, though, is how the ETF performed against the broader market. Take a look at how the iShares biotech ETF stacks up against the S&P 500 in terms of total return during the last five years.

Top Stocks To Buy For 2014

IBB Total Return Price Chart

IBB Total Return Price data by YCharts.

There were very few times during the period where the S&P outgained IBB in cumulative total return. As of now, the ETF's gains are more than double (and almost triple) those of the S&P 500. And what about that risk mentioned earlier? You might be surprised.

Let's look at one of the best measures of risk vs. reward -- the Sharpe ratio. The higher the Sharpe ratio is for a given investment, the better its risk-adjusted performance has been. Using the SPDR S&P 500 ETF as a proxy for the S&P 500 index, the five-year Sharpe ratio is 0.45. The five-year Sharpe ratio for the iShares biotech ETF is 0.92 -- more than twice that of the S&P 500.

Buying an ETF like the iShares Nasdaq Biotechnology fund provides retirees an investing strategy to profit from skyrocketing biotech growth in a way that incurs much less risk than buying individual biotech stocks. There is even a tiny dividend yield of 0.3% thrown in, thanks mainly to Amgen's dividend payments. It's not for everyone, but for retirees who want a little more sizzle in their portfolios, biotech investing ETF-style could be the way to go.

Even if investing in biotechs isn't your cup of tea, we at The Motley Fool have plenty of other retirement investing ideas for you. Our free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Tuesday, July 23, 2013

Best Value Companies To Watch For 2014

Starbucks� (NASDAQ: SBUX  ) has appointed Deverl Maserang to lead the company's Global Supply Chain Organization, the company announced Thursday.
Beginning June 3, Maserang will become executive vice president responsible for supply chain operations worldwide, which encompasses responsibilities from manufacturing and engineering to procurement and inventory management. Maserang joins Starbucks from Chiquita Brands International and brings more than two decades of experience in supply chain leadership positions. In leading the Global Value Chain for Chiquita and Fresh Express, he oversaw about 20,000 employees. Before Chiquita, Maserang worked in supply chain positions at Pepsi Bottling Group, United Parcel Service, and several start-ups.
Maserang will report to Starbucks CFO Troy Alstead, who is also the company's chief administrative officer, and be a part of the company's Senior Leadership Team. Maserang's appointment follows other recent, senior leadership appointments by the company. After its first-quarter report, Starbucks moved around�five people�in its Senior Leadership Team.

link

Best Value Companies To Watch For 2014: Ohio Legacy Corporation(OLCB)

Ohio Legacy Corp. operates as a bank holding company for Premier Bank & Trust, National Association that provides retail and commercial banking services to its customers located in Stark, Wayne, and Belmont Counties in Ohio. The company offers a range of deposit products, including interest-bearing demand deposits, noninterest-bearing demand deposits, personal and business checking, time accounts, savings and money market accounts, certificates of deposit, Internet banking, cash management, and direct-deposit services. It also provides commercial loans, construction loans, real estate mortgage loans, home equity lines of credit, and installment and personal loans. In addition, the company offers safe deposit box facilities, courier services, night depository facilities, Internet banking, cash management, direct-deposit services, and electronic funds transfer services, as well as provides trust, wealth management, and investment brokerage services. It provides its banking s ervices through its four branch offices and a trust office. The company was founded in 1999 and is based in North Canton, Ohio. Ohio Legacy Corp. is a subsidiary of Excel Bancorp, LLC.

Best Value Companies To Watch For 2014: Orchids Paper Products Company(TIS)

Orchids Paper Products Company manufactures private label tissue products for the consumer market in the United States. Its product line includes paper towels, bathroom tissue, and paper napkins. The company also offers its products under the Orchids, Velvet, Colortex, Ultra Valu, Dri-Mop, Big Mopper, Soft & Fluffy, Tackle, My-Size, and Care brand names. It serves value retailers (dollar stores), discount retailers, grocery stores, grocery wholesalers and cooperatives, and convenience stores. The company markets its products directly, as well as through independent brokers. Orchids Paper Products Company was founded in 1976 and is headquartered in Pryor, Oklahoma.

Best Stocks To Own Right Now: Xtierra Inc (XAG.V)

Xtierra Inc. engages in the exploration and development of precious and base metal properties in Mexico. The company primarily explores for silver, zinc, lead, copper, and gold. It principally holds a 100% ownership interest in the Bilbao project that consists of 9 exploitation concessions covering an area of approximately 1,406.7 hectares in the Panfilo Natera district of Zacatecas. The company is headquartered in Toronto, Canada.

Sunday, July 21, 2013

Best Stocks To Invest In Right Now

Are healthy menu options important to the American fast-food consumer? A recently released study found one restaurant where consumers couldn't care less about healthy choices. Yet this company is emphasizing nutritious menu items with even more vigor.

Healthy menu choices: Offer the whole enchilada?
A recently released Placed survey, "Dining Out in America, Part 2: The Impact of New Menu Items, Value, and Nutrition," found that consumers who would fork over more money for healthy menu options were 10% more likely to visit Wendy's (NASDAQ: WEN  ) , which ranked at the top of the list among big burger chains. In fact, Wendy's was the only burger joint where consumers stated a willingness to pay more for healthy menu items.

Source: Wikimedia Commons.

Best Stocks To Invest In Right Now: Alliance Resource Partners L.P.(ARLP)

Alliance Resource Partners, L.P. engages in the production and marketing of coal for utilities and industrial users in the United States. It operates nine underground mining complexes, which offer low, medium, and high-sulfur coal. The company also leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana; and purchases and resells coal. In addition, the company provides mine products and services comprising design and installation of underground mine hoists for transporting employees and materials in and out of mines; design of systems for automating and controlling various aspects of industrial and mining environments; and design and sale of mine safety equipment, such as its miner and equipment tracking, and proximity detection systems. Further, it offers ash and scrubber sludge removal, coal yard maintenance, and arranging alternate transportation services. As of December 31, 2010, the company had approximately 697.4 million tons of coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. Alliance Resource Management GP, LLC serves as the general partner of Alliance Resource Partners, L.P. The company was founded in 1971 and is based in Tulsa, Oklahoma.

Advisors' Opinion:
  • [By Bill]  

    Coal is also an attractive investment to protect investors against runaway inflation. Industrial use of coal is particularly quite high. Flexible electricity producers switch between coal and other energy sources and this causes a high correlation in prices. The price of coal also collapsed from $200 per ton to $60 per ton during the financial crisis. The current level of $120 is 40% lower than its peak price. ARLP is a very profitable company, and it will benefit from the rise in coal prices. Current P/E ratio of 10 and dividend yield of 5% suggests ARLP is a very good buy.

  • [By Richard Young]

    The market storyline says coal will soon be run to extinction because of new EPA regulations curtailing pollutants and forcing upgrades to scrubbers on coal plants. But the real losers will be small coal power plants with no scrubbers. They’re simply not worth the cost of upgrading. But coal isn’t going anywhere. The driver of growth at U.S. coal mining companies may not be domestic demand, but rather rapidly increasing demand for coal from Asia. China and India are expected to double their energy consumption by 2035. Buy ARLP to gain exposure to the fourth-largest coal producer in the Eastern U.S. My relative strength chart shows ARLP’s long record of outperformance compared to the S&P.

Best Stocks To Invest In Right Now: Claim Post Resources Inc (CPS.V)

Claim Post Resources Inc., a junior exploration company, engages in the acquisition, exploration, and development of mineral resource properties in Canada. The company primarily focuses on exploring and developing base metals and gold properties located in the Abitibi Greenstone Belt Region near Timmins in Ontario, Canada. It holds a 100% interest in the Kamiskotia property comprising 1,195 claim units located in the Godfrey, Turnbull, Jamieson, Robb, Cote, Massey, Mountjoy, and Bonar townships; and a 100% interest in the Dayton Porcupine claims consisting of 49 patented claims in Deloro and Ogden townships, as well as has an option to earn up to 100% interest in the Racetrack Project comprising 103 claim units and 12 patented claims located in Ogden township. Claim Post Resources Inc. was founded in 2005 and is headquartered in Toronto, Canada.

Top Stocks To Own For 2014: Alix Resources Corp. (AIX.V)

Alix Resources Corp. engages in the acquisition, exploration, and evaluation of mineral properties in North America. It has an option to acquire up to 70% interest in the Golden Zone gold-silver-copper deposit that covers an area of 24,500 acres and is located in the Valdez Creek Mining District, Alaska. The company also has interests in the Money Rock/West Pogo project, which covers an area of 5,439 hectares and is located to the southeast of Fairbanks, Alaska. In addition, it has interests in the Cougar claims that cover an area of 2,550 hectares and are located to the northeast of Prince George in British Columbia, Canada, as well as has an option agreement to acquire a 100% interest in a portfolio of 5 properties in Yukon Territory, Canada. The company was formerly known as NPN Investment Group Inc. and changed its name to Alix Resources Corp. in August 2007. Alix Resources Corp. was incorporated in 2004 and is headquartered in Vancouver, Canada.

Best Stocks To Invest In Right Now: Clover Corporation Ltd (CLV.AX)

Clover Corporation Limited engages in the refining and sale of natural oils; production of encapsulated powders; and the research and development of functional food and infant nutrition ingredients primarily in Australia. The company primarily supplies refined tuna oil and a range of other encapsulated ingredients for use in infant formulas. It also provides a range of microencapsulated powders that enable the addition of Hi-DHA tuna and/or algal oils to various products in a dry powder form under the Driphorm name. Clover Corporation Limited was founded in 1988 and is headquartered in Sydney, Australia.

Best Stocks To Invest In Right Now: Gemini Corporation (GKX.V)

Gemini Corporation, a professional services company, engages in designing, building, and maintaining energy and industrial facilities in western Canada and internationally. The company operates in two segments, Field Solutions and Engineered Solutions. The Field Solutions segment offers engineering, construction, fabrication, and maintenance services. The Engineered Solutions segment provides engineering, procurement, and construction management services. Gemini Corporation principally serves conventional/unconventional oil and gas, in-situ heavy oil, and heavy industrial facilities markets. The company was founded in 1982 and is headquartered in Calgary, Canada.

Best Stocks To Invest In Right Now: Owens & Minor Inc.(OMI)

Owens & Minor, Inc., together with its subsidiaries, provides distribution, third-party logistics, and other supply-chain management services to healthcare providers and suppliers of medical and surgical products. Its services include logistics, supplier management, analytics inventory management, outsourced resource management, clinical supply management, and business process consulting. The company also offers various services comprising PANDAC, an operating room-focused inventory management program that helps healthcare providers to control suture and endo-mechanical inventory; SurgiTrack, a customizable surgical supply service that includes the assembly and delivery of surgical supplies in procedure-based totes; OMSolutions, a supply-chain consulting, customer technology, and resource management service; and WISDOM Gold, an Internet-based supply spend management, data normalization, and contract management solution. In addition, it provides Clinical Supply Solutions, a n inventory and contract management service; and Implant Purchase Manager, a technology-based service, as well as owns OM HealthCare Logistics, a customized third-party logistics and business process outsourcing service. Further, the company distributes medical and surgical supplies to the acute-care market. It serves federal government, including the U.S. department of defense; and alternate-site providers, such as ambulatory surgery centers, physicians? practices, clinics, home healthcare organizations, nursing homes, and rehabilitation facilities, as well as provides distribution and supply-chain management services that include third-party logistics and business process outsourcing services to manufacturers of medical and surgical products. Owens & Minor, Inc. was founded in 1882 and is headquartered in Mechanicsville, Virginia.

Top 5 Penny Companies To Own For 2014

The price-to-earnings ratio might be the most polarizing statistic in investing. Some investors call it a basic core tenet for judging stocks; others see it as a misguided and useless tool. Strong earnings or a big run-up in share price can skew the P/E ratio toward more expensive stocks, but how does this classic statistic measure up when viewing Big Pharma's priciest picks?

Using data compiled from stock screening site Finviz, let's check out the three most expensive stocks among major pharmaceutical developers. In the following video, Fool contributor Dan Carroll tells you what you need to know about these stocks -- and whether their outlooks are worth the pretty penny you'll pony up to buy them.

One of the best parts of owning big pharma stocks is their attractive dividends, but smart investors know the importance of diversifying -- seeking high-yielding stocks from multiple industries. The Motley Fool's special free report "Secure Your Future With 9 Rock-Solid Dividend Stocks" outlines the Fool's favorite dependable dividend-paying stocks across all sectors. Grab your free copy by�clicking here.

Top 5 Penny Companies To Own For 2014: Homeowners Choice Inc.(HCII)

Homeowners Choice, Inc., an insurance holding company, provides property and casualty insurance in Florida. The company provides property and casualty homeowners? insurance, condominium owners? insurance, and tenants? insurance to individuals owning property. It serves approximately 59,500 policyholders primarily through independent agents. The company was founded in 2006 and is headquartered in Tampa, Florida.

Top 5 Penny Companies To Own For 2014: (NWBO)

Northwest Biotherapeutics, Inc., a development stage biotechnology company, engages in the discovery, development, and commercialization of immunotherapy products that generate and enhance immune system responses to treat cancer in the United States. Its technology platforms comprise dendritic cell-based cancer vaccines (DCVax) and monoclonal antibodies for cancer therapeutics. The company?s product candidates include DCVax-Prostate for the treatment of non-metastatic hormone independent prostate cancer, which cleared Phase III clinical trial; DCVax-Brain that is in Phase II clinical trial for the treatment of glioblastoma multiforme; and DCVax-LB, which cleared Phase I clinical trial for the treatment of non-small cell lung cancer. Its product candidates also comprise DCVax-Direct that cleared Phase I clinical trial for the treatment of ovarian, head, and neck cancer; and DCVax-L, which completed Phase I/II clinical trials for the treatment of resectable solid tumors. In addition, the company develops CXCR4 antibodies, which are involved in various phases of disease progression, including proliferation of the primary tumor, migration of cancer cells out of the primary tumor, and establishment of distant metastatic sites for the treatment of non-small cell lung cancer, breast cancer, glioblastoma multiforme, colon cancer, melanoma, prostate, pancreatic, kidney, ovarian, and certain blood cancers. Northwest Biotherapeutics, Inc. was founded in 1996 and is headquartered in Bethesda, Maryland.

Advisors' Opinion:
  • [By Jim Lowell]

    Northwest Biotherapeutics Inc (OTC: NWBO)is up 20.40% to $0.530 on volume of over 414K shares.Biomedreports published a specialreporton the drug developer and some developments involving its clinical trials of DCVax for GBM brain cancer. (OTC:NWBO), (NWBO)

Best Stocks To Own For 2014: SRS Labs Inc.(SRSL)

SRS Labs, Inc., through its subsidiaries, engages in the development and provision of audio and voice technology solutions. The company principally develops and markets audio rendering, voice, and surround sound technologies and solutions to original equipment manufacturers, original design manufacturers, semiconductor manufacturers, and software providers. The company?s portfolio of licensable technologies includes Surround Sound, Audio Rendering, Voice Processing, and Solutions Suite. A surround sound technology, Circle Surround, is an encoding and decoding format. Circle surround encoding enables the distribution of up to 6.1 channels of audio over existing two-channel carriers, such as digital media files, standard definition and high-definition television, FM radio, and compact discs; and Circle Surround decoding decodes Circle Surround encoded material for multichannel playback or creates up to 6.1 channels of audio from older formats of material, including mono, ste reo, 4-channel surround, or other matrix surround formats. Audio Rendering technologies optimize device audio output and enable the presentation of 3D and multichannel audio content over two speakers. Its TruVoice and SRS Noise Reduction technologies reduce noise to produce a clearer dialog over wireless communication devices and improve the intelligibility of the human voice in a variety of listening situations, including high ambient background environments. The company?s solutions suites combine various technologies to deliver a package of post processing audio enhancement products. It serves home entertainment, personal computers, personal telecommunications, automotive, portable media devices, and broadcast markets. The company sells its products and services in Korea, Japan, the Americas, the People's Republic of China, the Asia Pacific, and Europe. SRS Labs, Inc. was founded in 1993 and is headquartered in Santa Ana, California.

Top 5 Penny Companies To Own For 2014: Hawaiian Holdings Inc.(HA)

Hawaiian Holdings, Inc., through its subsidiary, Hawaiian Airlines, Inc., engages in the scheduled air transportation of passengers and cargo. It offers daily service on transpacific routes between Hawaii and Los Angeles, Oakland, Sacramento, San Diego, San Francisco, and San Jose, California; Las Vegas, Nevada; Phoenix, Arizona; Portland, Oregon; and Seattle, Washington, as well as daily service on its inter island routes among the four islands of the State of Hawaii. The company also provides scheduled service on its Pacific routes between Hawaii and Pago Pago, American Samoa; Papeete, Tahiti; Sydney, Australia; Manila, Philippines; Tokyo, Japan; and Seoul, South Korea, as well as other ad hoc charters. As of December 31, 2010, its fleet consisted of 15 Boeing 717-200 aircraft for its interisland routes; 18 Boeing 767-300; and 3 Airbus A330-200 aircrafts for its transpacific, Pacific, and charter routes. Hawaiian Holdings, Inc. was founded in 1929 and is headquartered in Honolulu, Hawaii.

Top 5 Penny Companies To Own For 2014: Amsurg Corp.(AMSG)

AmSurg Corp., through its wholly owned subsidiaries, engages in the development, acquisition, and operation of ambulatory surgery centers in partnership with physicians in the United States. The company?s surgery centers perform colonoscopy and other endoscopy procedures in the area of gastroenterology; cataracts and retinal laser surgery in the area of ophthalmology; and knee and shoulder arthroscopy and carpal tunnel repair in the area of orthopedics. As of December 31, 2010, it owned interest in 204 surgery centers in 33 states and the District of Columbia, including 140 centers performed gastrointestinal endoscopy procedures, 37 centers performed ophthalmology surgery procedures, 19 centers were multiple specialties, and 8 centers performed orthopaedic procedures. AmSurg Corp. markets its surgery centers directly to patients; and referring physicians and third-party payors, such as health maintenance organizations, preferred provider organizations, other managed care o rganizations, and employers. The company was founded in 1992 and is headquartered in Nashville, Tennessee.

Saturday, July 20, 2013

5 Best Undervalued Stocks To Watch For 2014

Introduction

In late January 2013, I wrote an article about Surge Energy (ZPTAF.PK), an oil-weighted intermediate producer with operations in Canada and US. It was when the price dropped below $4. Actually, I recommended Surge Energy back then at $3.7, for the reasons mentioned here.

I know that I am the only contributor of SA who writes articles about Surge Energy, but I do not really care. I always enjoy unearthing overlooked and grossly undervalued companies. This is how I discovered C&C Energia (CZE.TO) from the main Toronto board, recommending it at $5.7 in August 2012. My article is here.

C&C Energia was acquired by Pacific Rubiales (PEGFF.PK) for $9.5 (including the shares for Platino Energy), three months later. Nobody else had ever written an online article about C&C Energia.

5 Best Undervalued Stocks To Watch 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 Sam Collins]

    Household name Tupperware Brands Corp. (NYSE:TUP) is a global direct seller of products with multiple brands through an independent sales force of 2.4 million people. Its product line focuses on kitchen storage and serving solutions, as well as personal-care products. Over 60% of sales in 2011 are expected to come from Europe and Asia, and the stock has appeal as an emerging markets story.

    S&P estimates that 2011 earnings will increase to $4.54 versus $3.53 in 2010, and it increased its rating to a “five-star strong buy” with a recently revised 12-month target of $81, up from $73. The 2005 purchase of Sara Lee’s (NYSE:SLE) direct-sales business, which has a high growth rate, should be a long-term benefit. TUP’s annual dividend yield is 1.92%.

    Technically TUP had a pullback following a new high at over $70 and is currently oversold. Buy TUP at the current market price with a trading target of $70, but longer term a much higher target will likely be attained.

5 Best Undervalued Stocks To Watch 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 Roberto Pedone]

    Caterpillar (CAT) is staging a textbook breakout in May. Shares of heavy equipment maker haven't exactly been kind to investors year-to-date; CAT has barely broken even during a time when the broad market has been in a historic rally. But a textbook breakout should change that.

    CAT started forming an inverse head and shoulders pattern back in early April. The inverse head and shoulders is formed by two swing lows that bottom out around the same level (the shoulders), separated by a lower low called the head; the buy signal comes on the breakout above the pattern's "neckline" level, which was just below $86 for CAT. That puts this stock's upside target right around $92.

    Even though CAT has nearly hit its upside target already (the post-breakout buying has been very quick), the longer-term implication for investors is a break of the downtrend that had been haranguing shares this year. Now, with that downtrend broken, CAT should have more room to move higher. I'd just expect some consolidation first.

  • [By Dave Friedman]

    The shares closed at $91.37, up $1.56, or 1.74%, on the day. They have traded in a 52-week range of $63.34 to $116.55. Volume today was 10,450,473 shares, against a 3-month average volume of 9,960,260 shares. Its market capitalization is $59.03billion, its trailing P/E is 15.11, its trailing earnings are $6.05 per share, and it pays a dividend of $1.84 per share, for a dividend yield of 2.00%. About the company: Caterpillar Inc. designs, manufactures, and markets construction, mining, agricultural, and forestry machinery. The Company also manufactures engines and other related parts for its equipment, and offers financing and insurance. Caterpillar distributes its products through a worldwide organization of dealers.

  • [By Jim Cramer]

    this stock could be a monster in 2011, especially with the integration of Bucyrus (BUCY), which I think will turn out to be a fantastic acquisition. Estimates, currently showing EPS at about $6, I think are way, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation. Right now almost all of the growth is overseas. Still a fantastic mineral play and a terrific call on world growth.

Top 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 Sam Collins]

    Dollar Tree (NASDAQ:DLTR) is a leading operator of discount variety stores. The stock has hugged its 50-day moving average since mid-February. But a recent minor revision of earnings for this year by several analysts and the recent market sell-off have resulted in a fall from its high of the year at over $70 to under $66. However, Goldman Sachs (NYSE:GS) increased its price target to $73 from $69.

    Technically DLTR is oversold, according to MACD. A break below its 50-day moving average could result in a pullback to $64, but positions could be taken at the current market price. The trading target for DLTR is $72.

5 Best Undervalued Stocks To Watch 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 Robert Holmes]

     Schlumberger has the most potential upside of any stock in this group of 50 that also makes the firm's Best Ideas list. Analyst Ole Slorer says Schlumberger has "what we consider the most advanced technology portfolio in the industry."

    "Its fundamentals are impressive, with what we think are some of the best field personnel, a pristine service and performance reputation, and leading market share in most of its product lines," Slorer writes.

    Though Slorer's price target is 42% above current levels, his most bullish scenario for Schlumberger over the next year would see shares climb a whopping 116%. On the downside, his most bearish scenario for the company would see shares slide 38% over the next 12 months.

  • [By Kathy Kristof]

    Headquarters: Houston

    52-Week High: $79.38

    52-Week Low: $56.86 

    Annual Sales: $39.5 bill.

    Projected Earnings Growth: 18% annually over the next five years 


    Energy-services giant Schlumberger is the prototypical multinational. The company derives roughly 85% of its revenues from overseas, including developing markets in Africa, Brazil and Asia. 

    With particular expertise in deep-water drilling, Schlumberger is well-positioned to compete in a world where oil is harder to find, says Argus Research analyst Philip Weiss. Admittedly, oil exploration is a cyclical business, driven largely by crude prices. And weak prices for natural gas have hit the company’s stock, Weiss says. But the price of natural gas has little to do with Schlumberger’s profits, so Weiss just sees this as an opportunity to get the shares at a more reasonable price.

Friday, July 19, 2013

How to Profit From Pipeline Alternatives

The Energy Information Administration has reported that refinery receipts of crude oil delivered by rail, truck, and barge increased 57% in 2012 year over year, so that the nation's refineries were receiving more than 1 million barrels per day via these transportation methods.

Before we get into what this means for investors, it's important to place this trend in context. Pipelines still delivered more than half of all refinery receipts. Total deliveries to refineries were more than 15 million bpd in 2012, so that 1 million bpd delivered by alternative methods is just a drop in the bucket. It's a rapidly growing drop, so let's take a look.

Behind the trend
Much of the growth is driven by increased production from U.S. oil plays, which seems obvious enough, but some of it is also being driven by market fundamentals and the fact that truck, barge, and train transportation can hit markets that are not served by pipeline. When they do that, producers fetch a higher price.

For example, East Coast refiners like PBF Energy (NYSE: PBF  ) did not see the astronomical margins that mid-continent refiners experienced last year, because they were still importing foreign oil, while midcontinent refiners had access to cheap Bakken crude. PBF has built out its rail infrastructure, and it can now receive cheaper domestic crude from North Dakota and Canada by rail -- provided that domestic crude remains cheaper than foreign crude.

Buckeye Partners (NYSE: BPL  ) is another company hoping to exploit alternative transportation from its rail and barge hub at the Port of Albany, on the Hudson River.

Everybody wins
Buckeye's Albany assets help highlight another point, which is that the simultaneous growth of truck, rail, and barge is no coincidence. Typically when one of these alternative methods takes off, so do the others. For example, a pipeline may bring oil from the field to the refinery, while a train will go from the field to a river, where a barge awaits to haul the crude up or down stream to a refinery.

The role of the barge can't be underestimated. Barge receipts increased more than two percentage points year over year, and this is a great place for investors to look for opportunity. Companies with maritime resources benefit from this trend, as well as growth in exports. Three such companies that are worth a look are:

Kirby Corporation (NYSE: KEX  ) , which operates 30% of the coastal tank barges in the U.S.  Oiltanking Partners (NYSE: OILT  ) , which has storage capacity of 12.1 million barrels and six deepwater docks on the Houston Ship Channel Martin Midstream Partners (NASDAQ: MMLP  ) , which operates a large fleet of inland barges and controls 31 marine terminals 

These companies won't be the only winners, but they are a good place to start your research.

Bottom line
Going forward, domestic oil production will continue to increase in the near future, though the long term outlook is much more uncertain. It's important to note, however, that the WTI/Brent spread is an important factor in transportation dynamics. If the spread shrinks, it will erode some of the benefits that these alternative transportation methods provide.

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Thursday, July 18, 2013

If Your Stocks Could Talk, Would You Listen?

Picture a person you talk to only four times a year...

Do you know exactly what's happening in this person's life? Do you think this person considers how his or her actions affect you on a daily basis? Most of all, would you feel comfortable trusting this person with $1,000, $10,000, or even $100,000?

As earnings season bears down on us again, I'm reminded of a terrifying reality: Our money is in the hands of companies that have us in the dark practically 361 days a year. And if you're like me, you know the unfortunate feeling of opening up a shareholder letter to find that, since you last heard, things have gone very, very wrong.

For long-term investors, agonizing over the quarterly income statement is a fairly trivial exercise. In general, one quarter's earnings performance is not indicative of the overall health of the business.

However, the bigger concern is the status of business-specific "core metrics" that are vital to the company's station moving forward. These figures don't appear on the balance sheet, but from restaurants to retail, they're almost more important than cash flows. Think of search traffic growth for Google, or the amount of new stores opened for Whole Foods or McDonald's. These core metrics are far more important to a company's long-term health than the amount of money made in a three-month period.

But the question still remains: In the time between quarterly reports, is there a way to gauge the well-being of your company and investment capital?

Covert company communications
Whether you realize it or not, hundreds of publicly traded companies give you a peek into their businesses every day; these peeks just don't take the shape of 10-Q reports. Instead, you see them on television, on the Internet, and in magazines -- in the form of advertising.

An advertisement is a strategic brand communication that encourages consumers to think about their buying decisions. But it's also a way for companies to interface with the public when they aren't formally communicating performance. Sometimes, you can tell how a company's core metrics are faring based on the themes of their advertising. 

Let's take a look...

The good ones
Three companies in particular have captured my attention with recent advertising campaigns. And in doing so, addressed some pressing questions I had about their respective business models.

In terms of its business and advertising, Microsoft (NASDAQ: MSFT  ) truly reinvented itself with the launch of Windows 8. Facing both decreased global PC penetration and the rise of cloud computing, the future of Microsoft's business depended on management's ability to adapt and think outside the box. The result was an operating system that united the desktop and mobile experience, and the release of an iPad competitor.

I'll admit: I was skeptical. But after seeing more than six months of Windows 8 and Surface Tablet ads, I think they've got the right idea. Say what you will about the hiccups in the operating system, Microsoft's ad campaign completely rebuilt their public image and, in my opinion, started taking pages out of Apple's old-school underdog playbook. Microsoft has yet to see the real payout from this attitude adjustment, but with 100 million Windows 8 licenses already sold, I think the future is looking better than it did 12 months ago. 

Along with Microsoft, I've been extremely impressed by the advertising of LED lightbulb maker Cree (NASDAQ: CREE  ) , and the cult-favorite homemade soda producer SodaStream (NASDAQ: SODA  ) . In both cases, the companies used memorable ad campaigns to introduce their products to mass markets. Much like an FDA approval for a pharmaceutical company, a successful ad campaign shows the world that the company is ready for growth. From an investing perspective, that's what I like to see.

Describing his company's latest campaign, SodaStream's president, Yonah Lloyd, said, "It's smart business. It's the right time." The company saw its soda machine sales climb from 2.7 million in 2011 to close to 3.5 million in 2012 and expects $1 billion in revenue by 2016. By upping its game in advertising, SodaStream sent a wake-up call to investors, telling them to get on board before the growth train leaves the station. A major check in the "win" column as far as I'm concerned.

In March, Cree became the new kid on the block in the LED lightbulb market, but after pronouncing the death of Thomas Edison's greatest invention, the company caught my attention. In the short time after, Cree has been a hot topic on Mad Money and has received several analyst upgrades, including one from Goldman Sachs banking on "better-than-expected" sales numbers. Much like SodaStream, Cree's advertising primed my expectations for growth and looks to be living up to them.

The bad eggs
On the flip side, advertising can be interpreted as a red flag. Revealing, in some instances, that a company's core metrics aren't performing as well as we may have thought.

In my mind, Apple (NASDAQ: AAPL  ) is the poster child for this sin. Having built its brand reputation on growth, evolution, and the slogan "Think Different," much of its recent advertising has screamed, "Think the Same." Instead of using advertising to announce a new product (as the market would hope), Apple has chosen to reflect upon a decade of goodness and show no meaningful desire to move forward.

If my 12-month memory serves me, it's this kind of thinking that got Apple into trouble in the first place. In order for Apple's stock to rebound, it needs to do more than just flex its impressive balance sheet; it needs to show Wall Street that the growth story isn't over yet. Unfortunately, by the looks of its advertising, I'd be hesitant to jump back in at present.

As a shareholder, it pains me to say that Netflix (NASDAQ: NFLX  ) advertising has me worried. In 2013, Netflix has exploded thanks in large part to rapid member growth. However, Netflix will only be able to keep the party going if it can consistently add impressive amounts of members each quarter. This is where the success of its original content comes into play, because refreshed content creates the largest catalyst for subscription growth.

The problem is, until recently, Netflix wasn't advertising -- not even to promote its most acclaimed original series, House of Cards. Word of mouth was working and it was free. But after a "flop" release of Season 4 of Arrested Development, we started seeing ads popping up everywhere to create buzz. Why the change? 

I'm not condemning Netflix for trying to market a new product, I'm just suspicious of its timing. It seems to me that management has noticed a member shortage and is trying to manufacture growth before revealing its numbers. Maybe it'll work, but I have to say, these Netflix ads have me expecting the worst on earnings day.

The Foolish takeway
No one can inform you about a company's health better than the company can. Yet every day, your stocks are talking to you. If you listen up and examine how the business is presented to the public through advertising, you could uncover small nuggets of information that can aid your other analyses -- and as a result, arrive at a better idea of what to expect in the future. 

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Wednesday, July 17, 2013

Best Gold Stocks For 2014

Goldman Sachs (NYSE: GS  ) has released its first-quarter earnings, and overall, things look pretty good for the famous investment bank. It earned $2.26 billion on $10.09 billion in revenue, exceeding analysts' expectations. Nevertheless, if you look beyond the top and bottom lines of the earnings release, there are three areas where Goldman investors should expect a little more.

1. Institutional Client Services revenue
Overall, revenue was up just over 1% from the same quarter last year, with three of four business segments improving year over year. However, institutional client services, the bank's largest segment, declined 10% from the first quarter of 2012.

In the bank's own words, the first quarter of 2012 was strong, so it could simply be a victim of its own success. Net revenues in interest rate products were significantly lower compared to the first quarter of 2012, and commission and fees were down because of lower market volumes. One positive is that the net loss attributable to the bank's credit spreads on borrowings declined to $77 million, which was down from $224 million in the same quarter of last year.

Best Gold Stocks For 2014: Towers Watson & Co (TW)

Towers Watson & Co. operates as a global professional services company that provides human capital, and financial consulting services worldwide. The company operates in four segments: Benefits, Risk and Financial Services, Talent and Rewards, and Exchange Solutions. The Benefits segment offers benefits consulting and administration services, such as retirement solutions, which support organizations in designing, managing, administering, and communicating retirement plans; and health and group benefits that provides advice on the strategy, design, financing, delivery, ongoing plan management, and communication of health and group benefit programs. This segment also offers its technology and administration solutions to deliver benefit outsourcing solutions; and international consulting services, which provide expertise in dealing with international human capital management and related benefits, and compensation advice. The Risk and Financial Services segment offers risk cons ulting and financial modeling software solutions primarily to the insurance industry; reinsurance and insurance brokerage services; and investment consulting and solutions covering investment strategy risk assessment, asset allocation, and investment manager selection to institutional investors. The Talent and Rewards segment provides executive compensation advisory services; employee rewards, talent management, and communication and change management services; and data, analytics, survey, and technology solutions. The Exchange Solutions segment operates the private Medicare insurance exchange in the United States that enables employers to transition their retirees to individual, defined contribution health plans. The company was formerly known as Watson Wyatt Worldwide, Inc. and changed its name to Towers Watson & Co. in January 2010 as a result of merging with Towers, Perrin, Forster & Crosby, Inc. Towers Watson & Co. was founded in 1871 and is headquartered in New York, N ew York.

Best Gold Stocks For 2014: Adept Technology Inc.(ADEP)

Adept Technology, Inc., together with its subsidiaries, provides intelligent robotics systems and services for packaging, solar, medical, disk drive/electronics, machine tool automation, and automotive electronics markets. Its product range includes application software, integrated real-time vision and multi-axis motion controls, machine vision systems and software, autonomous navigation software and controls, industrial robots and grippers, autonomous service robots, intelligent automated guided vehicles (AGVs), and advanced vision-based flexible parts feeders. The company offers 4-axis Cobra family of robots, which are designed for assembly and material handling tasks; Adept Quattro parallel robots for high-speed packaging, assembly, and loading/unloading applications; Adept Viper 6-axis articulated robots for high-speed precision assembly; Modular Adept Python single axis robot mechanisms; and mobile robots, including autonomous service robots and intelligent AGVs. It a lso provides support services to customers, including spare parts for and/or remanufacture of robot mechanisms; information regarding the use of its automation equipment; ongoing support for installed systems; consulting services for applications; and training courses ranging from system operation and maintenance to programming for manufacturing engineers, who design and implement automation lines. The company markets its products through its direct sales force, as well as through systems integrators, sales representatives, distributors, and original equipment manufacturers primarily in the United States, Europe, and Asia. Adept Technology, Inc. was founded in 1983 and is headquartered in Pleasanton, California.

Top Stocks To Watch Right Now: CombiMatrix Corporation(CBMX)

CombiMatrix Corporation, a molecular diagnostics company, operates primarily in the fields of genetic analysis and molecular diagnostics in the United States. The company, through its wholly owned subsidiary, CombiMatrix Diagnostics, operates a diagnostics reference laboratory that provides DNA-based clinical diagnostic testing services to physicians, hospitals, and other laboratories in two primary areas, including prenatal and postnatal developmental disorders, and oncology. It offers a suite of developmental disorder array tests on the prenatal and postnatal application of array-comparative genomic hybridization in diagnosing genomic syndromes associated with developmental delays, autism spectrum disorders, dysmorphic features, and/or birth defects. The company also provides DNAarray?Heme Profile test to address various common hematological malignancies, including chronic lymphocytic leukemia; DNAarray?HER2 PRO test for breast cancer; and DNAarray?Tumor Profile test for the analysis of solid tumors, including breast, colon, lung, prostate, and brain tumors. In addition, it focuses on developing a series of drug compounds to address various oncology-related diseases. CombiMatrix Corporation was founded in 1995 and is based in Irvine, California.