September 3, 2013: U.S. markets opened higher on Tuesday morning following Monday�� Labor Day holiday with an upbeat reaction to European and Asian PMI reports. ISM data for the U.S. rose unexpectedly�and July new construction spending also rose more than expected. House Speaker John Boehner�� statement of support for President Obama�� call to action in Syria�cut into early gains, but did not wipe them out.
European markets closed mixed today, while Asian markets closed higher and Latin American markets closed lower.
Wednesday�� calendar includes reports from automakers on August sales, speeches by Minneapolis Fed President Narayana Kocherlakota and San Francisco Fed President John Williams, and the following data releases and events (all times Eastern):
7:00 a.m. – Mortgage Bankers Association purchase applications 8:300 a.m. – International trade 10:00 a.m. – Quarterly services survey 11:30 a.m. – 4-week bill auction 2:00 p.m. – Beige BookHere are the closing bell levels for Tuesday:
Hot Dividend Companies To Watch In Right Now: Medical Action Industries Inc.(MDCI)
Medical Action Industries Inc. develops, manufactures, markets, and supplies various disposable medical products primarily in the United States. It offers custom procedure trays that include orthopedic, cath lab/radiology, labor and delivery, cardiac, ophthalmology, tissue procurement, neurology, robotic, gynecological, vascular, urology, cosmetic/plastic surgery, anesthesia/pain, bariatric, and general/other trays; minor procedure kits and trays, such as central line dressing, suture removal, laceration, incision and drainage, general purpose instrument, wound dressing change, sharp debridement, venipuncture, ear and ulcer syringes, trach care, and irrigation trays, as well as razor and shave prep kits, piston syringes, and I.V. start kits; and operating room disposables and sterilization products comprising surgical marking pens, needle counters, light shields, convenience kits, surgical headwear and shoe covers, isolation gowns, instrument protection, eye-shields, sutur e boots, basin separators, reel cutters, patient aids, crutches, walkers, canes, patient slippers, O.R. basins, magnetic drapes, guide wire bowls, bowie dick test packs, vessel loops, anti-fog solutions, heat sealers, and tray liners. The company also provides patient bedside products consisting of wash basins, bedpans, pitchers and carafes, urinals, emesis basins, soap dishes, medicine and denture cups, tumblers, sitz baths, service trays, and perineal bottles; dressings and surgical sponges, which include burn dressings, sponge counting systems, elastic nets, and bandage rolls; containment systems for medical waste, such as waste solidifier and spill cleanup kits, and equipment dust and sterility maintenance covers; and laboratory products comprising petri dishes, containers, collectors, calculi strainers, and vials. It sells its products primarily to acute care facilities through a network of direct sales personnel. The company was founded in 1977 and is headquartered in Brentwood, New York.
Advisors' Opinion:- [By Thomas Scarlett]
The medical device market keeps expanding, as new technologies are constantly introduced and the need for health care by the U.S. population keeps growing. One of the most dynamic companies in this sector is Medical Action Industries Inc.�(NASDAQ: MDCI).
Medical Action is a manufacturer and distributor of disposable medical devices, and a leader in many of the markets where it competes. Its products are marketed primarily to acute care facilities in domestic and certain international markets. The company has recently expanded its target market to include physician, dental and veterinary offices, out-patient surgery centers, long-term care facilities and laboratories.
Medical Action’s products are marketed nationally by its direct sales personnel and extensive network of health care distributors. The firm has preferred vendor agreements with several national and regional distributors, as well as sole and multi-source agreements with group purchasing organizations.
Concerns about contamination, infection, or imperfection in medical supplies have never been higher. Medical Action has earned a solid reputation for producing reliable, well-crafted medical tools.
The company has moved to a dominant position in the operating room supplies market in just a few years. Among the company�� products are sutures, laparotomy sponges, operating room basins and various sterility monitoring products. It also offers clinical care market products, which include custom procedure trays and minor procedure kits. Medical Action has a strong record of developing new products and getting them approved by the Food and Drug Administration in a timely manner.
As the population ages and more Americans are covered by Medicare, while younger Americans have more access under the Affordable Care Act, the earnings potential of well-managed health care providers and the companies that supply them with tools will only grow.
The company�� first-qu
Hot Asian Stocks To Buy For 2014: Kodiak Oil & Gas Corp (KOG)
Kodiak Oil & Gas Corp. (Kodiak) is an independent energy company focused on the exploration, exploitation, acquisition and production of crude oil and natural gas in the United States. Kodiak has developed an oil and natural gas asset base of proved reserves, as well as a portfolio of development and exploratory drilling opportunities on high-potential prospects with an emphasis on oil resource plays. The Company�� oil and natural gas reserves and operations are primarily concentrated in the Williston Basin of North Dakota. As of January 31, 2012, it had approximately 169,000 net acres under lease, including 157,000 net acres in the Bakken oil play in the Williston Basin of North Dakota and Montana. In January 2012, the Company acquired Williston Basin oil and gas producing properties and undeveloped leasehold. On January 10, 2012, it acquired certain oil and gas leaseholds, overriding royalty interests and producing properties located in North Dakota. Advisors' Opinion:- [By Matt DiLallo]
Kodiak Oil & Gas� (NYSE: KOG )
Another big culprit in the demise of Peak Oil is the Bakken Shale of North Dakota. Its development has enabled companies such as Kodiak to annually deliver triple-digit oil production growth. It is quite astonishing to think that in 2010 the company produced an average of 1,260 barrels of oil equivalent per day, while this year it expects to deliver an average of nearly 31,000 barrels of oil equivalent per day. With an inventory of more than 950 future drilling locations, investors can expect Kodiak continue to grow oil production well into the future.�
Hot Asian Stocks To Buy For 2014: Gulf Resources Inc (GURE)
Gulf Resources, Inc. (Gulf Resources), incorporated on February 28, 1989, is engaged in manufacturing and trading of bromine and crude salt, and manufacturing and selling of chemical products used in oil and gas field exploration, oil and gas distribution, oil field drilling, wastewater processing, papermaking chemical agents and inorganic chemicals. As of December 31, 2011, its products have been sold only within the People�� Republic of China. The Company operates in three segments: bromine, crude salt and chemical products. It manufactures and trades bromine and crude salt through Shouguang City Haoyuan Chemical Company Limited (SCHC), and manufactures chemical products for use in the oil industry and paper manufacturing industry through Shouguang Yuxin Chemical Industry Co., Limited (SYCI). On December 22, 2011, the Company acquired substantially all of the assets owned by Liangcai Zhang in the Shouguang City Yangkou Township Area.
Bromine and Crude Salt
The Company manufactures and distributes bromine through its wholly owned subsidiary, SCHC. Bromine (Br2) is a halogen element and it is a red volatile liquid at standard room temperature, which has reactivity between chlorine and iodine. Elemental bromine is used to manufacture a variety of bromine compounds used in industry and agriculture. Bromine is also used to form intermediates in organic synthesis. Its bromine is used in brominated flame retardants, fumigants, water purification compounds, dyes, medicines and disinfectants. Its production sites are located in the Shandong Province in northeastern China. Its production feeds include natural brine, vitriol, chlorine, sulfur and coal.
Crude Salt
The Company also produces crude salt, which is produced from the evaporation of the wastewater after its bromine production process. Once the brine is returned to the surface and the bromine is removed, the remaining brine is pumped to onsite containing pools and then exposed to natural sunshine. T! his causes the water to evaporate from the brine, resulting in salt being left over afterwards. Crude salt is the principal material in alkali production, as well as chlorine alkali production and is used in the chemical, food and beverage, and other industries.
Chemical Products
The Company produces chemical products through its wholly owned subsidiary, SYCI. The products it produces include hydroxyl guar gum, demulsified agent, corrosion inhibitor for acidizing, bactericide, chelant, iron ion stabilizer, clay stabilizing agent, flocculants agent, remaining agent, expanding agent, bromopropane, environmental friendly additive products, solid lubricant and polyether lubricant.
Gulf Resources competes with Shandong Yuyuan Group Company Limited, Shandong Haihua Group Company Limited, Shandong Dadi Salt Chemical Group Company Limited, Shandong Haiwang Chemical Company Limited, Shandong Weifang Longwei Industrial Company Limited, Shandong Caiyangzi Saltworks, Beijing Tianqing Chemical Company Limited, Shandong Weifang Shuangxing Pesticides Company Limited, Zibo Dacheng Pesticides Company Limited, Befar Group Company Limited, China Eastar (Group) Chemical Industry Company Limited and Pecome Technologies Limited.
Advisors' Opinion:- [By Paul Ausick]
Big Earnings Movers: Gogo Inc. (NASDAQ: GOGO) is up 28.3% at $24.05. Gulf Resources Inc. (NASDAQ: GURE) is up 15.8% at $2.46.
Stocks on the Move: ViroPharma Inc. (NASDAQ: VPHM) is up 25.4% at $49.38 on a $4.2 billion buyout offer from London-listed Shire. Zalicus Inc. (NASDAQ: ZLCS) is down 72.3% at $1.30 on a failed drug trial.
- [By Roberto Pedone]
Another under-$10 basic materials player that's starting to move within range of triggering a major breakout trade is Gulf Resources (GURE), which manufactures and trades bromine and crude salt, and manufactures and sells chemical products used in oil and gas field exploration. This stock has been a favorite target of the bulls so far in 2013, with shares up sharply by 140%.
If you take a look at the chart for Gulf Resources, you'll notice that this stock has been uptrending strong for the last six months, with shares soaring higher from its low of $1.10 to its recent high of $3.10 a share. During that uptrend, shares of GURE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GURE within range of triggering a major breakout trade.
Market players should now look for long-biased trades in GURE if it manages to break out above some near-term overhead resistance levels at $2.87 to its 52-week high at $3.10 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 467,986 shares. If that breakout hits soon, then GURE will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $4 to $4.50 a share.
Traders can look to buy GURE off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support levels at $2.38 a share, or near its 50-day moving average of $2.23 a share. One can also buy GURE off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Hot Asian Stocks To Buy For 2014: Waddell & Reed Financial Inc. (WDR)
Waddell & Reed Financial, Inc., through its subsidiaries, provides investment management, investment product underwriting and distribution, and shareholder services administration to mutual funds, and institutional and separately managed accounts in the United States. The company acts as an investment adviser for institutional and other private investors, and provides sub advisory services to other investment companies; underwrites and distributes registered open-end mutual fund portfolios; distributes business partners� variable annuity products, and retirement and life insurance products to advisors channel customers; sells life insurance and disability products underwritten by various carriers; and offers fee-based asset allocation investment advisory products to advisors channel customers. It distributes investment products through independent financial advisors, broker/dealers, registered investment advisors, and various retirement platforms; and markets investment a dvisory services to institutional investors directly or through consultants. Waddell & Reed Financial, Inc. was founded in 1937 and is based in Overland Park, Kansas.
Advisors' Opinion:- [By Marc Bastow]
Investment services and shareholder services administrator Waddell & Reed (WDR) raised its quarterly dividend 21% to 34 cents per share, payable on Feb. 3 to shareholders of record as of Jan. 13.
WDR Dividend Yield: 2.2% - [By Rich Duprey]
Mutual fund complex�Waddell & Reed Financial� (NYSE: WDR ) announced today its third-quarter dividend of $0.28 per share, the same rate it's paid for the past two quarters after raising the payout 12% from $0.25 per share.
Hot Asian Stocks To Buy For 2014: Physicians Formula Holdings Inc.(FACE)
Physicians Formula Holdings, Inc. develops, markets, and sells cosmetic and skin care products for the mass market channel. Its cosmetic products include face powders, bronzers, concealers, blushes, foundations, eye shadows, eyeliners, mascaras, and brow makeup; and skin care products comprise cleansers, moisturizers, and treatments. Physicians Formula Holdings, Inc. sells its products to various retailers in the food retail, drug chain, mass volume, specialty retail, and wholesale channels in the United States, Canada, Australia, South Africa, Turkey, Mexico, El Salvador, and Panama. The company, formerly known as PFI Holdings Corp., was founded in 2003 and is based in Azusa, California.
Advisors' Opinion:- [By CRWE]
Physicians Formula Holdings, Inc. (Nasdaq:FACE) reported that it has received an unsolicited, nonbinding proposal to acquire all its outstanding shares of common stock at a price of $4.90 per share, subject to several conditions, including the completion of due diligence and securing of financing commitments by the third party who submitted the proposal and the negotiation of a mutually acceptable definitive agreement
Hot Asian Stocks To Buy For 2014: AB SKF (SKFRY.PK)
AB SKF, formerly SKF AB, is a global supplier of products, solutions and services within rolling bearings, seals, mechatronics, services and lubrication systems. The services provided by the Company include technical support, maintenance services, condition monitoring and training. The Company operates in three divisions: Industrial Division and Service Division, servicing industrial original equipment manufacturers (OEMs) and aftermarket customers respectively, and Automotive Division, servicing automotive OEMs and aftermarket customers. SKF operates in around 40 customer segments, including cars and light trucks, wind energy, railway, machine tool, medical, food and beverage and paper industries. In April 2009, the Company acquired the remaining 49% interest in SKF Polyseal.
In February 2008, the Company acquired QPMAerospaces�� metallic rods business. In October 2008, the Company acquired Cirval S.A Argentina. In November 2008, the Company acquired GLO s.r.l. Italy. In December 2008, the Company acquired the remaining 30% of the operations of SKF Automotive Bearings Company. In September 2008, the Company acquired PEER Bearing Company and its manufacturing units in the People�� Republic of China and Thailand.
Industrial Division
The Industrial Division serves industrial OEMs customers in some 30 global industry customer segments with a range of energy-efficient offerings. The solutions and know-how are based on the manufacturing of a wide range of bearings, such as spherical and cylindrical roller bearings, angular contact ball bearings, medium deep groove ball bearings and superprecision bearings, as well as lubrication systems, linear motion products, magnetic bearings, by-wire systems and couplings.
Service Division
The Service Division serves the global industrial aftermarket providing products and knowledge-based services for customers��plant asset efficiency. The solutions are based on SKF�� knowledge of bearings, sea! ls, lubrication systems, mechatronics and services, and customers are served by SKF and its network of over 7,000 authorized distributors. The division runs a network of Condition Monitoring Centres, which designs and produces global hardware and software. Service Division is also responsible for all SKF�� sales in certain markets.
Automotive Division
The Automotive Division serves manufacturers of cars, light trucks, heavy trucks, buses, two-wheelers and the vehicle service market, supporting them in bringing solutions to global markets. In addition, the division provides energy-saving solutions for home appliances, power tools and electric motors. Within the Automotive Division, SKF develops and manufactures bearings, seals and related products and services. Products include wheel hub bearing units, tapered roller bearings, small deep groove ball bearings, seals, and automotive specialty products for engine, steering and driveline applications. For the vehicle service market, the division provides complete repair kits, including a range of drive shafts and constant velocity joints.
Logistics Services
SKF�� business is supported by its logistics processes and systems, which involve all parts of the logistics needs in the supply chain. SKF Logistics Services provides warehousing, transportation, packaging and inventory management based on seamless information and communication technology for the SKF Group globally.
Advisors' Opinion:- [By Stephen Simpson, CFA]
I wrote on bearings and velocity control products company Kaydon (KDN) in early March of this year, and I didn't see a lot of value at the time. As the year went on, that call looked worse and worse, as the stock climbed about 18% - well above the S&P 500, and well above industry peers/competitors like Timken (TKR) and SKF (SKFRY.PK). To top it all off, Kaydon announced this morning (September 5) that it had received and accepted a buyout offer from SKF valuing the company at $35.50 - some 45% higher than the price when I thought it looked only about 10% undervalued. So what did I get wrong here, and what can investors do to avoid a similar mistake?
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