Tuesday, December 31, 2013

Hot Heal Care Stocks For 2014

" Rural Electrification Corporation (REC) has come out with the first tax free bond issue in the current financial year. For retail investors, the bonds carry tax free coupon of 8.26 percent, 8.71 percent and 8.62 percent for tenure of 10 years, 15 years and 20 years, respectively. For the highest tax bracket investor (30.9 percent tax rate), the pre-tax yield on the bond works out to 11.95 percent, 12.6 percent and 12.5 percent for 10 years, 15 years and 20 years, respectively, which is higher than 8.75-9 percent available on bank fixed deposits and other stable fixed income instruments of similar duration. Given that REC is a government owned company, credit risk is low. Rating agencies Crisil, Care, IRPL and Icra have assigned AAA ratings to the issue indicating the highest degree of safety regarding timely servicing of financial obligations with lowest credit risk."

"REC Tax Free Bond carries a coupon rate of 8.26 percent, 8.71 percent and 8.62 percent for 10 years, 15 years and 20 years, respectively, for the retail investor. The coupon on the bond issued under the tax exempt clause is related to the prevailing government securities rates. The ceiling coupon rate for AAA rated issuers shall be the reference G-sec rate* less 55 basis points in case of retail individual investor and reference G-sec less 80 basis points in case of other investor segments.

Hot Heal Care Stocks For 2014: Hibbett Sports Inc.(HIBB)

Hibbett Sports, Inc. operates sporting goods stores in small to mid-sized markets primarily in the southeast, southwest, Mid-Atlantic, and Midwest regions of the United States. Its stores offer an assortment of merchandise, including athletic footwear, team sports equipment, athletic and fashion apparel, and related accessories. The company also provides its merchandise directly to educational institutions and youth associations. As of January 28, 2012, it operated 832 stores consisting of 812 Hibbett Sports stores, 19 smaller-format Sports Additions athletic shoe stores, and 1 larger-format Sports & Co. superstore in 26 states. The company was formerly known as Hibbett Sporting Goods, Inc. and changed its name to Hibbett Sports, Inc. in January 2007. Hibbett Sports, Inc. was founded in 1945 and is headquartered in Birmingham, Alabama.

Advisors' Opinion:
  • [By John Udovich]

    Yahoo! Finance recently noted once again�how the hit reality show ��uck Dynasty��along with fears about Obama�� gun control policies have rural enthusiasts flocking to Cabela�� Inc (NYSE: CAB), but how does its performance compare with that of mid cap peer�Dicks Sporting Goods Inc (NYSE: DKS) along with small caps Big 5 Sporting Goods Corporation (NASDAQ: BGFV)�and Hibbett Sports, Inc (NASDAQ: HIBB)? After all, the same trends should be lifting all boats that sell outdoor related merchandise, guns or sporting goods (Note: Bass Pro, Inc, which is much closer to being a true�peer of Cabela�� Inc as its also focused on the outdoors, is�privately held) . �

  • [By Seth Jayson]

    Calling all cash flows
    When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Hibbett Sports (Nasdaq: HIBB  ) , whose recent revenue and earnings are plotted below.

  • [By Seth Jayson]

    Calling all cash flows
    When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Hibbett Sports (Nasdaq: HIBB  ) , whose recent revenue and earnings are plotted below.

Hot Heal Care Stocks For 2014: City Developments Limited (C09.SI)

City Developments Limited, through its subsidiaries, engages in the development and investment of real estate properties, and ownership and management of hotels, as well as the provision of hospitality solutions. It develops various types of residential properties; develops and leases commercial properties, such as office, industrial, and retail properties; owns and operates 110 hotels in 18 countries; and provides technology solutions for the global hospitality industry. The company also operates and owns clubs; offers property management, project management, and consultancy services; and provides information technology and procurement services. City Developments Limited has operations in Asia, Europe, North America, New Zealand, and Australia. The company was founded in 1963 and is headquartered in Singapore, Singapore.

10 Best Biotech Stocks To Watch For 2014: Abraxas Petroleum Corp (AXAS.PH)

Abraxas Petroleum Corporation is an independent energy company primarily engaged in the acquisition, exploitation, development and production of oil and gas in the United States and Canada. As of December 31, 2011, the Company�� estimated net proved reserves were 29.0 million barrels of oil equivalent (MMBoe), (including reserves attributable to its 34.7% equity interest in the proved reserves of Blue Eagle), of which 53% were classified as proved developed, 54% were oil and natural gas liquids (NGL��) and 94% by PV-10 were operated. Its daily net production during the year ended December 31, 2011, was 3,484 barrels of oil equivalent per day, of which 45% was oil or liquids. Its oil and gas assets are located in four operating regions in the United States, the Rocky Mountain, Mid-Continent, Permian Basin and onshore Gulf Coast, and in the province of Alberta, Canada.

The Company�� properties in the Rocky Mountain region are located in the Williston Ba sin of North Dakota and Montana and in the Green River, Powder River and Unita Basins of Wyoming and Utah. In this region, its wells produce oil and gas from various reservoirs, including the Niobrara, Turner, Bakken and Three Forks formations. Well depths range from 7,000 feet down to 14,000 feet. The Company�� properties in the Mid-Continent region are primarily located in the Arkoma Basin and principally produce gas from the Hartshorne coals at 3,000 feet. Its properties in the Permian Basin region are primarily located in two sub-basins, the Delaware Basin and the Eastern Shelf. In the Delaware Basin, its wells are located in Pecos, Reeves, and Ward Counties, Texas and produce oil and gas from multiple stacked formations from the Bell Canyon at 5,000 feet down to the Ellenburger at 16,000 feet.

In the Eastern Shelf, its wells are principally located in Coke, Scurry, Midland, Mitchell and Nolan Counties, Texas and produce oil and gas from the Strawn Reef f ormation at 5,000 to 7,500 feet and oil from the shallower! C! learfork formation at depths ranging from 2,300 to 3,300 feet. The Company�� properties in the onshore Gulf Coast region are located along the Edwards trend in DeWitt and Lavaca Counties, Texas and in the Portilla field in San Patricio County, Texas. In the Edwards trend, its wells produce gas from the Edwards formation at a depth of 14,000 feet and in the Portilla field, its wells produce oil and gas from the Frio sands and the deeper Vicksburg from depths of approximately 7,000 to 9,000 feet. In addition, the Company also owns a 34.7% equity interest in a joint venture targeting the Eagle Ford in South Texas. Its properties in the province of Alberta, Canada are located in the Pekisko fairway and the Nordegg/Tomahawk area of Central Alberta.

As of December 31, 2011, the Company leased approximately 20,835 net acres, primarily in counties located on the Nesson Anticline and in areas west, including Rough Rider and Lewis & Clark in North Dakota and in Sheridan County, Montana, which are prospective for the Bakken and Three Forks formations. During the year ended December 31, 2011, the Company drilled two operated wells and participated in an additional 19 gross (1.0 net) non-operated wells. In July 2011, Abraxas purchased a used Oilwell 2000 horsepower diesel electric drilling rig. In August 2010, the Company formed a joint venture, Blue Eagle, with Rock Oil to develop its acreage in the Eagle Ford Shale play. As of December 31, 2011, the Company owned a 34.7% interest in Blue Eagle. During 2011, Blue Eagle drilled, completed or participated in three gross (2.4 net) wells and added approximately 3,800 net acres to its holdings, principally in McMullen County, Texas.

As of December 31, 2011, the Company leased a total of approximately 20,720 gross (17,800 net) acres in the southern Powder River Basin, of which 17,800 gross (15,700 net) acres were located in the Brooks Draw field of Converse and Niobrara Counties, Wyom ing. In addition, it owns approximately 2,100 net acres! in s! ou! thern C! ampbell County, Wyoming which are held by production and are near the Crossbow field operated by EOG Resources, Inc. and other recent horizontal activity. As of December 31, 2011, the Company leased 6,880 net acres in western Alberta. In 2011, it drilled or completed six gross (6 net) wells in the Twining area. In the emerging southern Alberta Basin Bakken play of Toole and Glacier Counties, Montana, the Company leased approximately 10,000 gross/net acres under long-term leases or direct mineral ownership As of December 31, 2011, it leased approximately 5,600 gross/net acres in Nolan County, Texas. In 2011, the Company drilled three wells in the Spires Ranch offsetting the prolific Nena Lucia field.

Hot Heal Care Stocks For 2014: Scholastic Corporation(SCHL)

Scholastic Corporation, together with its subsidiaries, operates as a children?s publishing, education, and media company primarily in the United States. The company?s Children?s Book Publishing and Distribution segment publishes and distributes children?s books through school-based book clubs and book fairs, ecommerce, and the trade channel in the United States. Its Educational Publishing segment publishes and distributes educational technology products and services, curriculum materials, children?s books and collections, classroom magazines, and print and online reference and non-fiction products for grades pre-K to 12 to schools and libraries in the United States. The company?s Media, Licensing, and Advertising segment creates and produces programming and digital content for various platforms, including television, DVDs, audio, movies, interactive games, applications, and Websites. This segment produces and sells a television library consisting of approximately 50 0 half-hour productions; produces television programming, including the animated series; creates audiovisual adaptations of classic children?s picture books; produces young adult and children?s audio recordings; and creates original and licensed consumer software, including handheld and console products with accessories and mobile applications for grades pre-K to 8. This segment also develops sponsored educational materials and supplementary classroom programs in partnership with government agencies, nonprofit organizations, and business organizations; and operates a direct-to-home catalog business specializing in children?s toys. Its International segment publishes and distributes products and services in Canada, the United Kingdom, Australia, New Zealand, Ireland, India, China, Singapore, and other parts of Asia, as well as includes its export and foreign rights businesses. Scholastic Corporation was founded in 1920 and is headquartered in New York, New York.

Advisors' Opinion:
  • [By Jeremy Bowman]

    What: Shares of Scholastic (NASDAQ: SCHL  ) were sliding again today, falling as much as 10% after the company posted another disappointing earnings report.

  • [By Jon C. Ogg]

    Teradyne will replace Scholastic Corp. (NASDAQ: SCHL) in the S&P MidCap 400, and Scholastic will replace Lincoln Education Services Corp. (NASDAQ: LINC) in the S&P SmallCap 600. Lincoln Education Services currently ranks 600th in the S&P SmallCap 600 and is no longer representative of the small cap market space.

Hot Heal Care Stocks For 2014: Echelon Corporation(ELON)

Echelon Corporation develops, markets, and supports energy control networking solutions worldwide. Its solutions enable everyday devices, such as air conditioners, appliances, electricity meters, light switches, thermostats, and valves to be inter-connected; and energy control networking platform powers energy-savings applications for smart grid, smart cities, and smart buildings. The company?s product portfolio includes twisted pair smart transceivers that can be embedded into building automation devices, such as sensors, thermostats, motion detectors, air handlers, and chillers; SmartServer controller, a system manager and field controller for building networks and smart-energy applications; LonWorks control networks software (LNS) and OpenLNS operating system, which are development and integration tools; and third party energy management or grid analytics software, and apps for the SmartServer in hosted or server-based configurations. It also offers PL/RF Bridge to con nect segments of streetlights to a SmartServer; smart meters that provide load profiling, time-of-use, display of energy consumption, and prepaid metering payment capabilities; edge control nodes that connect smart meters and open smart grid protocol (OGSP) -based grid devices; and networked energy system software to retrieve data from smart meters and other OSGP-based devices. In addition, the company provides Element Manager, a browser based software that provides network analysis, graphed statistics, and automated network management; and control point modules that enable original equipment manufacturers (OEMs) to build OSGP compliant smart grid devices. It serves OEMs and systems integrators in the building, industrial, transportation, utility/home, and other automation markets through direct sales organization, electronics representatives, value-added resellers, and distributors. Echelon Corporation was founded in 1988 and is headquartered in San Jose, California.

Advisors' Opinion:
  • [By John Udovich]

    Although small cap smart metering stock Silver Spring Networks Inc (NYSE: SSNI) recently soared on earnings, it also plunged yesterday�after loosing�out on important contract ��meaning it might be time to take a closer look at it along with other smart metering stocks like Itron, Inc (NASDAQ: ITRI) or Echelon Corporation (NASDAQ: ELON) to see if they are smart investments.

Hot Heal Care Stocks For 2014: Cline Mining Corp Com Npv (CMK.TO)

Cline Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of mineral resource properties primarily in Canada and the United States. It holds interests in the New Elk coal mine project located near the town of Trinidad in southern Colorado; the Lodgepole, Sage Creek, and Cabin Creek coal mine projects in British Columbia, Canada; the Bekisopa iron ore properties in south-central Madagascar; and the Cline Lake gold property located in Ontario, Canada. The company is headquartered in Toronto, Canada.

Hot Heal Care Stocks For 2014: Panasonic Appliances India Company Ltd (PANI.NS)

Panasonic Appliances India Company Limited, formerly Panasonic Home Appliances India Company Limited is an India-based company , engaged in the manufacturing and marketing of Electric Cooker under Lid Type and Jar Type besides Mixer Grinders of various models. The Company also exports both Cooker and Mixer Grinder to various countries. The Company is principally engaged in the business of Household Appliances. The Company has developed and established a business model which comprises of manufacture and sale of Electric Cooker and Mixer Grinder under Panasonic Brand and trading of Panasonic brand imported products viz., Microwave Oven and other kitchen/small appliances, Beauty care, and Health care/Personal care products.

Hot Heal Care Stocks For 2014: iPass Inc.(IPAS)

iPass Inc. provides enterprise mobility services primarily in the United states, Europe, the Middle East, Africa, and the Asia Pacific. The company offers enterprise mobility services to manage mobility economics, high speed network connectivity, and proliferation of employee-liable mobile devices. Its enterprise mobility services include cost analysis, reporting, and policy compliance management tools; and Wi-Fi network access to enterprise customers. The company provides Mobile Connect, a service that collects and transmits usage data and statistics from the mobile device; Mobile Insight to report and analyze mobile usage across networks, connections, and devices; Mobile Control, a policy enforcement service; Mobile Office, which delivers 3G mobile data, Wi-Fi hotspot, wired broadband, and dial-up access services; and Mobile Network that provides broadband and dial-up network coverage. It also offers Carrier Wi-Fi enablement services that provide mobile network operators , telecommunication carriers, and service provider partners with the infrastructure to both address their network infrastructure costs and service capabilities, as well as to offer their subscribers global revenue-generating Wi-Fi based mobility services. In addition, the company provides managed network services (MNS) that offer wireline and wireless VPN connectivity services to branch locations of enterprises, retail stores, and financial institutions. Its MNS products comprise MultiLink VPN, a managed Internet-based IP VPN wide area networking service; Branch/Retail VPN that allow for various customer design requirements, backup to MPLS networks, or a hybrid MultiLink/Branch VPN network; and managed Wi-Fi services. iPass Inc. offers its services worldwide directly through its sales force; and through network service providers, telecommunications carriers, systems integrators, and value added resellers. The company was founded in 1996 and is headquartered in Redwood Shores , California.

Senate committee approves Yellen for Fed chair

The Senate Banking Committee voted 14-8 Thursday to send Janet Yellen's nomination to chair the Federal Reserve to the full Senate for confirmation.

Yellen, who is now the Fed's vice chairman, is expected to win confirmation to succeed Ben Bernanke after his second four-year term expires in January. She would become the first woman in the world to head a major central bank.

Republicans Bob Corker, Tennessee; Mark Kirk, Illinois, and Tom Coburn, Oklahoma, broke with other GOP members to support Yellen. Democrat Joe Manchin, D-W. Va., was the only Democrat to vote against Yellen's nomination. Corker had opposed her nomination for vice chair in 2010.

"Dr. Yellen understands the challenges facing our economy and the balance the Fed must strike as we navigate the path back to full employment," committee Chairman Tim Johnson, D-S.D., said in a statement. "Dr. Yellen also showed in her testimony that she understands the importance of completing ongoing Wall Street Reform rulemaking and of the Fed's regulatory role in supervising the riskiest banks.

Yellen, 67, served on the Fed's board in the 1990s. She also has taught economics at the University of California at Berkeley, headed President Clinton's Council of Economic Advisers and served as president of the San Francisco Federal Reserve Bank.

Yellen is considered one of the most pro-growth, or "dovish," members of the Fed's policymaking committee, meaning she has placed more emphasis on stimulating job growth than in preventing inflation. Several Republicans indicated they would oppose her nomination.

Yellen also has been instrumental in forging the Fed's easy-money policies that have supported the economy since the financial crisis and in Fed efforts to communicate more clearly to the public and financial markets.

She now faces the challenging task of gradually scaling back the Fed's extraordinary stimulus program without derailing the fragile economic recovery. The Fed is buying $85 billion in government bonds each m! onth to hold down long-term interest rates and spur economic and job growth.

Yellen, and other Fed policymakers, also must be mindful not to move so slowly that they sow the seeds of inflation or fuel asset bubbles as low interest rates drive money to riskier investments.

Senators Rand Paul, R-Ky., and Lindsey Graham, R-S.C., have said they likely would try to block Yellen's nomination in the Democratic-controlled Senate floor. But a handful of Republicans are expected to join most Democrats to remove the block.

Monday, December 30, 2013

Green Dot Corporation (GDOT) Q3 Earnings Preview: Tricking Or Treating Shareholders On Halloween?

Green Dot Corporation (GDOT) will host a conference call to discuss third quarter 2013 financial results on Thursday, October 31, 2013 at 4:30pm ET. A press release with third quarter 2013 financial results will be issued after the market closes that same day.

Wall Street anticipates that the Business Services provider will make a profit of $0.21 per share for the quarter. iStock expects GDOT to top Wall Street's consensus number. The iEstimate is $0.22, too.

Green Dot operates as a technology-centric, pro-consumer bank holding company that provides personal banking for the masses. It offers prepaid debit card products and prepaid card reloading services in the United States, as well as mobile banking services with its GoBank mobile bank account offering.

It will be fascinating to see how Green Dot fares considering dueling research opinions. On October 19th, Janney Capital downgraded Green Dot to a "Sell" from "Neutral" rating. The firm says increased competition, specifically from American Express (AXP), and new entrants will make life more difficult for the business pre-paid card company. Janney believes GDOT is a $15 stock.

On the other hand, Piper Jaffray says nope, Green Dot's price target is $26. Earlier today, the research firm upgraded the stock to an "Overweight" from "Neutral" rating. Jaffray believes the recent price-pullback and concerns over competition are overdone.

They both can't be right – can they?

Green Dot has surpassed investors' expectation for the last four quarters; however, the magnitude of bullish surprises is trending downwards for the last three quarters.  Prior to its recent string of success, GDOT missed the mark, usually by a wide margin, eight consecutive quarters.

In the last four quarters, earnings drove the stock higher an average of 11.65% with a tight range of 9% to 13.4%. Prior to its recent run, shareholders weren't so lucky as the stock lost an average of 9.49% in the three days surrounding the previous eight quarterly ch! eckups.

Being on the right side of the trade can be rewarding as you can see. Rather than flipping a coin to pick which research firm to go with, let's turn to Google Trends to see if search volume intensity is up or down for the keyword "Green Dot."

And web queries say… Piper Jaffray is the early favorite to be the winner. Year-over-year (YoY) search volume intensity increased 8.53% and 3.58% quarter-over-quarter (QoQ).  Last year GDOT earned $0.29 in Q3 and $0.33 last quarter (Q2 2013). If Google Trends translate, Green Dot will earn a lot more than the current $0.21 consensus.

Best Value Companies To Own For 2014

Overall: Minus Piper Jaffray, sentiment for Green Dot Corporation (GDOT) is sour heading into their Thursday EPS announcement. Google Trends suggest YoY and QoQ improvement. If that's the case, history suggests GDOT will treat investors on Halloween.

Friday, December 27, 2013

Stocks climb wall of worry

stocks, equities, interest rates, federal reserve, taper, economy, QE Bloomberg News

The Standard & Poor's 500 Index (SPX) had its first weekly gain since Aug. 2 as investors weighed minutes of the Federal Reserve's July meeting and economic data to gauge the prospect of monetary stimulus.

Microsoft (MSFT) Corp. rallied 9.3 percent as the world's largest software maker said Chief Executive Officer Steve Ballmer will retire. Best Buy Co. jumped 16 percent after posting its biggest quarterly profit in more than two years. Hewlett-Packard Co. (HPQ), Abercrombie & Fitch Co. and Staples Inc. plunged more than 15 percent as earnings forecasts disappointed investors. Homebuilders slid 2.2 percent as a group as purchases of new U.S. homes plunged.

The S&P 500 added 0.5 percent to 1,663.5 for the five days, the first gain after two weeks of losses. The Dow Jones Industrial Average fell 70.96 points, or 0.5 percent, to 15,010.51. The 30-stock gauge declined for a third week, the longest retreat since November.

“Those who are not as invested in stocks still feel like they are missing something,” Richard Sichel, who oversees about $1.9 billion as chief investment officer at Philadelphia Trust Co., said by phone. “It comes down to the bottom line that interest rates may be going up a bit and they might want to get a little more into stocks.”

Almost all Fed policy makers agreed with plans to reduce the pace of monthly bond purchases if the economy continues to improve in line with forecasts, according to the central bank's minutes released Aug. 21.

Despite the consensus shown in the Fed minutes, three central bank presidents speaking later in the week during the annual conference in Jackson Hole, Wyoming, differed over the timing for easing stimulus. One backed a tapering next month if the economy remains strong and two others said policy makers should take time to assess economic data.

Economic Data

Investors have been weighing whether the economy is strong enough to prompt the Fed to curb its $85 billion in monthly bond purchases. Reports during the week included data showing the fewest workers in more than five years applied for U.S. unemployment benefits over the past month while manufacturing in China unexpectedly improved, offsetting the worse-than-anticipated sales of new homes.

Three rounds of bond purchases by the Fed and better-than-forecast earnings have helped extend the bull market in U.S. equities to a fifth year, with the S&P 500 surging more than 150 percent from a 12-year low in 2009. The benchmark index reached a record high of 1,709.67 on Aug. 2 and has since lost 2.7 percent amid concern rising interest rates may derail an economic recovery. Ten-year Treasury yields approached the highest level in two years during the week.

Computer Malfunctions

Trading during the week was roiled twice by computer malfunctions that raised questions about the reliability of electronic markets. On Aug. 20, a programming error at Goldman Sachs Group Inc. caused unintended ! stock-option orders to flood American exchanges. Two days later, the Nasdaq Stock Market was prompted to halt trading in stocks and options for three hours because of a faulty connection between exchanges.

“It's just another example of machines taking over and shutting things down,” Chris Willox, a Cobleskill, New York-based director of trading at Fenimore Asset Management Inc., said by phone. His firm manages about $1.7 billion. “It undermines confidence.”

The disruption resulted in the slowest week in at least five years, excluding periods surrounding holidays, with an average 5.1 billion shares trading over the five days, according to data Bloomberg began compiling in 2008.

Volatility Gauge

The Chicago Board Options Exchange Volatility Index, or VIX (VIX), declined 2.7 percent to 13.98. The equity volatility gauge reached its highest level this year in June and has since dropped 32 percent.

Nine of 10 main industries in the S&P 500 gained, with consumer-staples companies the only group declining. Raw-materials and technology stocks rose the most, climbing at least 0.8 percent.

Microsoft rallied 9.3 percent, the most since 2009, to $34.75. Ballmer, who has struggled to adapt the company to the shift away from personal computers and toward mobile devices, plans to step down within 12 months. Microsoft, which supplies the software running most PCs, lost almost half its value on Ballmer's watch.

Best Buy surged 16 percent to $35.08. The world's largest consumer-electronics retailer reported a profit of $266 million in the quarter ended Aug. 3 as Chief Executive Officer Hubert Joly trimmed costs and cut prices to spur sales.

Hewlett-Packard

Hewlett-Packard plunged 15 percent, the largest drop in two years, to $22.40. Chief Executive Officer Meg Whitman rescinded a projection for growth in fiscal 2014 as ebbing demand for PCs and lower business spending hamper her turnaround efforts.

Abercrombie & Fitch sank 20 percent to $38.68. The clothing retailer forecast pr! ofit for ! the current quarter that was less than analysts estimated amid declining traffic at its stores. Chief Executive Officer Mike Jeffries has been struggling to reconnect with the clothing chain's teenage customers who have become less enamored of Abercrombie's fashions.

Staples tumbled 16 percent to $14.20. The world's largest office-supplies chain reduced its annual profit forecast because of declines in its retail and international business.

The S&P Supercomposite Homebuilding Index fell 2.2 percent as all of its 11 members retreated. Purchases of new U.S. homes plunged 13 percent in July, the most in more than three years, raising concern higher mortgage rates will slow the real-estate rebound.

Lennar Corp. slipped 3.8 perce

Thursday, December 26, 2013

Top Performing Industries For September 17, 2013

At 10:15 am, the Dow surged 0.32% to 15,544.88, the broader Standard & Poor's 500 index moved up 0.36% to 1,703.68 and the NASDAQ composite index gained 0.44% to 3,734.21.

The industries that are driving the market today are:

Medical Practitioners: This industry jumped 2.82% by 10:15 am. The top performer in this industry was LCA-Vision (NASDAQ: LCAV), which rose 2.9%. LCA-Vision's trailing-twelve-month revenue is $91.12 million.

Computer Peripherals: This industry rose 2.21% by 10:15 am ET. The top performer in this industry was Key Tronic (NASDAQ: KTCC), which gained 0.3%. Key Tronic's trailing-twelve-month ROE is 14.57%.

Electronics Stores: This industry moved up 1.16% by 10:15 am. The top performer in this industry was Conns (NASDAQ: CONN), which gained 1.3%. Conns' PEG ratio is 0.87.

5 Best Gold Stocks To Invest In Right Now

Catalog & Mail Order Houses: The industry gained 1.13% by 10:15 am. The top performer in this industry was Mojo Organics (OTC: MOJO), which gained 6.6%. Mojo Organics shares have jumped 361.54% over the past 52 weeks, while the S&P 500 index has gained 16.18% in the same period.

Wednesday, December 25, 2013

Gross Says Fed Won’t Tighten Till 2016

PIMCO manager Bill Gross has taken to Twitter to hammer home the idea that there’s value in bonds as the Fed continues to support markets with quantitative easing and bond buying.

The bond king’s Monday morning tweet was, initially, simple and direct: “One big idea—policy rates cannot normalize.” The manager fleshed out the tweet with “policy implications: curves remain steep, bullets beat barbells.”

 

GROSS: One Big Idea – policy rates cannot normalize. Portfolio implications: curves remain steep, bullets beat barbells.

 

While his Twitter followers asked for clarification (“could you explain the bullet strategy?” one tweet asked), an earlier Gross tweet on Sunday left little doubt the portfolio manager was long on bonds.

Gross: So bonds come out of their coffin & it’s not even Halloween. #Bernanke says follow policy rate & we agree. 2016 tightening @ earliest

Gross’s current tweets expand and amplify his latest long-form investment outlook, where — in his July letter to investors — he stated that bonds were oversold in response to Fed Chairman Ben Bernanke’s May comments about “tapering,” or reducing the Fed’s commitment to buying U.S. Treasuries and mortgage-backed securities.

In that outlook three weeks ago, Gross argued that the Fed was committed to a 25-basis-point federal funds rate to last beyond the end of its bond-buying program.

“If frontend curves are up to 50 basis points cheap, then intermediate curves — the 10-year Treasury — may be as much as 35 basis points too cheap," Gross wrote. "They belong in our opinion at 2.20% instead of 2.55%.”

Given the 10-year bond’s current 2.49% yield, the Gross investment thesis means bond prices have plenty of room to run up.

While Gross’ Monday tweet and July outlook focus on policy rates, market concern over “tapering” may also be yielding to diminished fear over the impact of reduced Federal Reserve bond buying.

Fed Chairman Ben Bernanke has walked back his tapering comments on a number of occasions, most recently in Senate testimony Thursday where he said that monetary authorities would be closely watching data on economic performance to determine timing issues.

An article in Monday’s Wall Street Journal notes that surveyed economists are now more pessimistic — amid disappointing corporate earnings and GDP growth — than when Bernanke announced the Fed’s intentions to gradually withdraw its support for Treasuries.

----

Check out Are TIPS From Bill Gross Worth Much Anymore? on ThinkAdvisor.

Tuesday, December 24, 2013

How High Is Ford’s Potential?

With shares of Ford Motor Co. (NYSE:F) trading at around $15.08, is F an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock's Movement

Ford has a lot going for it at the moment. An attempt will be made to cover all the biggest potential catalysts, but that's not an easy task.

Let's begin overseas. Ford expects sales to increase 50 percent in China by 2015. Ford is expanding in China, and 15 models will be introduced within the next 2.5 years. Of course, this will require more plants, which means increased spending. However, the auto market is strong in China, aided by government-backed investments and easy credit. Another positive for Ford is that Chinese consumers are shying away from Japanese brands, such as Toyota and Honda. This relates to an ongoing dispute over islands in the East China Sea. Ford's sales have increased in China, and it has been stealing market share from competitors.

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Russia also presents good potential. Ford Sollers is accelerating growth in Russia. A new engine plant and the launch of the Ford EcoSport SUV are expected within 18 months. There will now be seven models built by Ford Sollers opposed to just two models. Adil Shirinov, executive director and chief operating officer of Ford Sollers, recently stated:

“The demand for Ford SUVs is growing in Russia, and we’re pleased to announce that next year our already strong lineup of SUVs will be supplemented by the Ford EcoSport, Local production of the EcoSport by Ford Sollers in Tatarstan will help to strengthen the Ford brand position in Russia’s popular SUV segment.”

In regards to Europe, Allan Mulally wants to be profitable by 2015. This will require cutting operations and making the company leaner and meaner. Europe's unemployment rate is still approximately 12 percent, and auto sales have been atrocious. However, Jim Cramer recently made an optimistic comment related to Europe: "Europe is bottoming. I think Ford is a buy. Don't just quote me because John Chambers of Cisco says Europe is bottoming, and that's fabulous for letter F." It's more likely that monetary stimulus is going to have a temporary positive impact than Europe is actually bottoming and all skies are clear ahead.

As far as the domestic market is concerned, Ford sales increased 18 percent year-over-year in April. By comparison, General Motors Company’s (NYSE:GM) sales increased 11 percent year-over-year, and Toyota Motor Corporation's (NYSE:TM) sales increased 1.1 percent year-over-year.

A company's culture is often a clear indication of employee optimism and production potential. Ford's company culture is strong. According to Glassdoor.com, employees have given their employer a 3.5 of 5 rating, and 70 percent of employees would recommend the company to a friend. Even more impressive is that 94 percent of employees approve of CEO Alan Mulally. This is a sign of excellent leadership.

Many people feel as though Ford has a debt problem. However, that's not the case. We'll get into this in this on the next page. For now, let's take a look at some numbers before forming an opinion on the stock. The chart below compares fundamentals for Ford, General Motors, and Toyota.

F GM TM
Trailing P/E 10.22 11.51 16.47
Forward P/E 9.08 7.71 N/A
Profit Margin 4.27% 4.00% 4.36%
ROE 33.97% 15.15% 9.09%
Operating Cash Flow 7.18B 8.92B 31.15B
Dividend Yield 2.90% N/A 1.10%
Short Position 2.00% 7.50% N/A

Let's take a look at some more important numbers prior to forming an opinion on this stock.

T = Technicals Are Strong

Ford has been a steady performer over the past three years. Toyota has claimed the number one spot for this group over a three-year time frame, and that has potential to continue, but all three companies are poised for near-term success.

1 Month Year-To-Date 1 Year 3 Year
F 15.55% 17.93% 51.87% 28.47%
GM 13.57% 16.09% 52.76% 3.33%
TM 12.94% 36.27% 67.04% 73.51%

At $15.06, Ford is trading above its averages.

50-Day SMA 13.44
200-Day SMA 12.73

E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for Ford is much weaker than the industry average of 0.80. That being the case, you might be wondering why the debt-to-equity ratio is categorized as Normal. It’s because the debt-to-equity ratio would be much lower if it excluded Ford Credit.

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Ford Credit has been performing very well. It takes on low-interest consumer loans and turns them around on consumers for considerable profits, over and over again. The best part is that these low-rate loans are secured for the long haul, which means profits will be even bigger when interest rates increase. However, when interest rates increase, auto sales are likely to weaken.

Debt-To-Equity Cash Long-Term Debt
F 5.99 24.18B 107.60B
GM 0.48 24.31B 18.42B
TM 1.11 30.73B 179.57B

Now let's take a look at the next page for the Trends and Conclusion. Is this stock an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY?

T = Trends Support the Industry (for now)

Auto sales have been strong everywhere expect for Europe. This trend is likely to continue considering everyone is printing money. It’s the biggest party that never ends! Yes, that was sarcasm. The point here is that the party has been extended. As long as real estate and stock prices continue to appreciate, auto sales will do well. All that said, the eventual hangover from this party will last many years.

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Conclusion

Ford has one of the best leaders around in Alan Mulally. This is the most important factor. For those who put their trust in analysts, they like the stock: 10 Buy, 9 Hold, 2 Sell. For those who trust valuation, Ford is currently trading at 10 times earnings while the industry average is 19.5 times earnings. And for those who like yield, Ford currently yields 2.90 percent (higher than peers).

Monday, December 23, 2013

5 Rocket Stocks to Buy for a Santa Claus Rally

BALTIMORE (Stockpickr) -- It's beginning to look a lot like Christmas -- not because there's snow on the ground or because trees are lit, but because Wall Street trading desks are running on a skeleton crew this week.

>>5 Stocks Poised for Breakouts

Typically, the Christmas week is a quiet one for investors. With a truncated trading week for the holidays and more folks taking vacation time than taking new trading positions, this week tends to sport low volume and low volatility. It also tends to sport upward mobility in the form of a "Santa Claus Rally," the end-of-year pop that stocks often get between Christmas and New Year's.

If there's ever a year to end on a strong note, it's 2013. The venerable S&P 500 Index is up a staggering 27.5% year-to-date heading into this week, and the big index is showing some serious signs of strength this morning too.

To take full advantage, we're taking a closer look at five Rocket Stocks worth buying.

>>5 Dividend Stocks Ready to Pay You More

For the uninitiated, "Rocket Stocks" are our list of companies with short-term gain catalysts and longer-term growth potential. To find them, I run a weekly quantitative screen that seeks out stocks with a combination of analyst upgrades and positive earnings surprises to identify rising analyst expectations, a bullish signal for stocks in any market. After all, where analysts' expectations are increasing, institutional cash often follows. In the last 228 weeks, our weekly list of five plays has outperformed the S&P 500 by 85.99%.

Without further ado, here's a look at this week's Rocket Stocks.

Walt Disney

How appropriate that Walt Disney (DIS) tops off our Christmas list of Rocket Stocks this week -- the home of Mickey Mouse has a major presence under kids' trees this year. Disney is an entertainment giant that owns some of the most valuable intellectual property in the industry; in addition to Mickey and Donald, it owns brands such as ESPN, ABC and Pixar.

>>4 Big Stocks on Traders' Radars

Disney's businesses range from film studios to TV networks to theme parks to cruise ships. That huge income statement diversity means that Disney can create huge cross-promotional opportunities: Films get marketed on Disney's networks and drive visitors to its theme parks.

It may come as a surprise, but the real jewel in Disney's crown isn't an anthropomorphic mouse; it's ESPN. ESPN is the most valuable network on TV, measured by the affiliate fees that providers are willing to pay to carry the channel. While it's not a cheap business to run (ESPN pays the NFL $1.8 billion annually to carry Monday Night Football), it is a lucrative one.

One big catalyst for Disney in 2014 is the theme parks business. Parks are hugely capital-intense, and they were the slowest part of Disney's empire to turn around after the Great Recession. As park visitors continue to tick higher, investors should expect the late stage cycle in theme parks to transition them from earnings drags to earnings drivers.

Meanwhile, keep an eye out for earnings on Feb. 3.

Priceline.com

There's no two ways about it: 2013 has been a phenomenal year for shareholders in Priceline.com (PCLN). Shares of the $61 billion online travel site have rallied 92% since the calendar flipped over to January, besting the broad market's big returns nearly four times over. Now that momentum looks like it's holding up.

>>5 Stocks Rising on Unusual Volume

Priceline.com is an online travel aggregation site that helps customers book everything from hotel rooms and airline tickets to rental cars and vacation packages. The firm's revenues come from transaction fees that PCLN earns for facilitating the sales. While the U.S. travel market is very commoditized at this point, Priceline brand recognition ensures that it still receives a disproportionate amount of bookings -- and moves like the acquisition of travel content site Kayak mean that the site is trying to prove its ability to add value beyond ease of booking.

Internationally, Priceline has some bigger opportunities. Overseas, travel commoditization is less of a problem, as many hotels and air carriers lack the "lowest price" contracts with other resellers that spurred a race to the bottom here at home. Because of its size, PCLN offers those service providers a market to sell excess capacity at a discount. In short, international sales provide the biggest opportunity for margin expansion for PCLN, while legacy sales continue to keep the lights on.

Carnival

It hasn't, on the other hand, been smooth sailing over at one of Priceline's partners: Carnival (CCL). Carnival experienced some high-profile disasters, from the Costa Concordia wreck in 2012 to the fire that stranded the Carnival Triumph at sea for five days. But with the worst behind it, Carnival looks well positioned for a stronger showing into 2014.

>>5 Big Trades for Post-Taper Gains

Carnival is the world's largest cruise operator. The firm's fleet includes more than 100 ships that fly the flags of its wide spectrum of brands. In addition to Carnival's namesake line, the firm's portfolio includes names like Holland America, Cunard, Princess, and more than a half-dozen other lines. By pursuing a niche strategy, Carnival is able to court worldwide customers from a wider array of income brackets, rather than a one-size-fits-all approach. As the cruise industry continues to grow in popularity (especially as cruise-hungry baby boomers reach their retirement years at record rates) Carnival's upside potential is continuing to increase in kind.

Big macro tailwinds provide some extra help for Carnival right now. The cruise industry is incredibly capital-intense, with new ships coming in at price tags of around $1 billion. But with record-low interest rates at present, CCL has been able to refresh its fleet at an exceptionally low cost. Likewise, CCL indexes its prices to the cost of oil, reducing risk and taking the need for commodity hedging off the table.

With rising sentiment in Carnival this week, we're betting on shares.

Michael Kors Holdings

Michael Kors Holdings (KORS) has been another big momentum name in 2013; shares of the apparel brand have rallied more than 64% since the start of the year. In fact, since going public in late 2011, KORS has been one of the most conspicuous IPO success stories on the NYSE, ballooning in price by 248% since the first trade hit the tape. But it's KORS' upside yet to come that investors should be paying attention to now.

>>5 Cash-Rich Stocks That Could Pay Triple the Gains in 2014

Kors has a hand in every corner of the apparel and accessory business from clothes and handbags to watches and jewelry. The firm's niche focus on mass-affluent consumers puts it in a sweet spot -- it courts luxury cash without the luxury price tags that hamper sales for higher-priced "true luxury" brands. The firm has done well catering to a population of spend-happy young professionals, a coveted group of super consumers. The transition from selling primarily though third-party retailers to a dual model with a large footprint of company-owned stores should keep revenues climbing at a fast pace.

Financially, KORS is in spectacular shape, with net profit margins deep in the double digits and a debt-free balance sheet. The firm's ability to finance store build-outs with cash and equity is commendable, even if cash remains cheap in this environment.

KORS' willingness to play the "long game" should pay off for shareholders in 2014.

Western Digital

By far, one of the most captivating technology trends in 2013 has come from storage. As cloud-based services proliferate the web, and more devices become capable of recording data-hungry media like video, enterprise storage needs are ballooning. And that means Western Digital (WDC) is first in line to get paid.

Western Digital is the largest hard-drive maker in the world, thanks to a deal to acquire Hitachi's hard drive business last year. WDC's manufacturing capacities make it a critical player in the storage business, a space that's been supply constrained for the last few years. The future, though, is in solid-state drives, and Western Digital knows it. SSDs don't have moving parts, which makes them quicker and smaller than conventional hard disks – but the considerable expertise needed to build out an SSD business creates a challenge for conventional hard disk makers.

To combat that, WDC has been acquiring expertise in the SSD arena (like its tuck-in buy of Stec earlier this year). As Western Digital ramps up its solid state capabilities, it should be able to boast much bigger margins in the long-run. Meanwhile, the firm has enough cash on its balance sheet to cover around a quarter of its current market capitalization. A cash-rich status that makes WDC look downright cheap at current price levels.

To see all of this week's Rocket Stocks in action, check out the Rocket Stocks portfolio at Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.


RELATED LINKS:



>>5 Stocks With Big Insider Buying



>>5 Commodity Stocks to Trade for Gains



>>3 Biotech Stocks Spiking on Big Volume

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji


Sunday, December 22, 2013

Does Going Green Contribute to Bottom Line Profits?

It's always nice for big companies and their PR spin machines to mention how green and environmentally friendly their operations have become. However, those statements are often just that -- PR spinning its wheels. We have to be honest with ourselves: While the going green theme will help improve Ford's (NYSE: F  ) or General Motors' brand image, it hasn't historically contributed much to the bottom line, if at all. A recent study by Interbrand found that the automotive industry has improved by leaps and bounds in producing environmentally green brands and, this time, there is more substance for investors looking at the bottom line.

Best global green brands
Recently Interbrand, the world's leading brand consultancy, released its annual "Best Global Green Brands" report. Surprisingly to some, the automotive sector dominated, with Toyota (NYSE: TM  ) , Ford, and Honda owning the top three spots -- in that order. Automakers also make up 50% of the top 10, with Nissan ranking fifth, and Volkswagen in at No. 7. Nissan was even named the most improved, jumping 16 spots from last year to its No. 5 ranking.

The report examines consumer research and public perception of each company's sustainability and green practices. According to Interbrand, David Pearson, Deloitte's Global Sustainability Leader, noted that: "Sustainability continues to assert itself on the business agenda. Customers and stakeholders are holding businesses more and more accountable for sustainability performance, and businesses are working hard to ensure that their external perception reflects their internal efforts."

The reason that this global green brand report means more than it has in the past is because we've seen a boom in green products that have actually produced profits in the bottom line. Three good examples of this are Ford's EcoBoost engine, Toyota's Prius, and the breakout company Tesla (NASDAQ: TSLA  ) .

EcoBoost
Ford's critically acclaimed engine, which launched in 2009, offers a unique combination of fuel economy and turbocharged power. Ford has lofty goals for its emissions as regulations continue to tighten, and its EcoBoost offers approximately 20% better fuel efficiency, and 15% reduced greenhouse emissions. Thus far, the sales have backed up the hype; see the impressive growth below.


Source: Ford Press Release.

The increase in EcoBoost sales, including its option in America's No. 1 selling F-Series, was a prime reason Ford jumped 13 spots in this year's report to No. 2. While Ford's popular engine has been a great success, Toyota has taken a more complete approach.

Toyota has owned Interbrand's "Best Global Green Brand's" No. 1 position for three years now. The Japanese automaker continues to make environmentally sound practices a part of its business strategy, and continues to excel in the hybrid segment. Consider that almost 3 million Prius models sold worldwide last year alone – an impressive number. As the future trends continue toward EV, improved fuel efficiency, and smaller vehicles, profits will continue to improve from these green initiatives. Toyota looks well-positioned to reward its investors with increasing revenues in the segment.

Tesla (NASDAQ: TSLA  ) is in a league all its own right now, and its entire mission is to produce EVs for the future. Tesla believes that, after 100 years of the internal combustion engine, it's time to shake up the industry with a more environmentally friendly vehicle. This may be the ultimate proof that going green is gaining more traction, as Tesla posted its first ever profit last quarter, and has seen its stock price more than double since April. While the quarterly profit was partially from selling its zero-emission credits, we have to remember a company like this wouldn't have found any success or profits a decade ago – and many still can't.

Bottom line
The fact is that green products and fuel efficiency is selling with consumers more than ever, and is beginning to contribute to the bottom line. When it comes to being successful in the automotive industry, it's all about flexibility, fuel efficiency, and popular designs. Many of the global automakers can now offer multiple engine sizes and flexible options for fuel efficiency, as well as EVs for the early adopters. It's no coincidence that during the surge in automotive sales, we see a surge in going green, as well. Finally, investors should start seeing a surge in contributions to the bottom line profits -- another welcome change.

Tesla's stock price has soared recently since April, but, as giant competitors are moving in to disrupt Tesla, will the company be able to fend them off? The Motley Fool answers this question and more in our most in-depth Tesla research available. Get instant access by clicking here now.

Saturday, December 21, 2013

Why Websense Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Websense (NASDAQ: WBSN  ) were skyrocketing today, up as much as 29% after the web-security specialist agreed to be bought out for $907 million.

So what: Vista Equity Partners offered to take Websense private for $24.75 a share, or the equivalent of $907 million, all in cash. The Websense board said it had explored proposals from several potential acquirers, and the offer represents a 29% premium over Websense's closing price on Friday at $19.23. Websense has been in the process of converting from a web-screening and blocking service to one focused on Internet security.

Now what: Websense's share price today has come within pennies of Vista's offering price, indicating a high level of confidence that the deal will go through as agreed. The deal looks like a win for Websense shareholders, as the stock price is now double nearly what it was last fall. From here the question seems to be what implications the buyout has for other web-service companies.

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Friday, December 20, 2013

It Might Be the Time for Beer

Best Stocks To Own Right Now

After a couple of capital increases and what looks like a weak strategy for its growth in different South American countries, Chile's beer king Compania Cervecerias Unidas (CCU) – most commonly knows as CCU - is selling at a steep discount to its peers. In other words, being down by 23% year to date, I think it might be the time to start thinking of buying CCU's shares.  

A Weak Growth Strategy

CCU recently issued more than 50 million shares and plans to use the proceeds for organic growth as well as M&A in South America. Possible targets could be related to soft drinks in Colombia, dairy in Chile, or a multi-category approach in Argentina and Uruguay (where the company recently acquired a mineral water company). That being said, I agree with most analysts. CCU should focus on its wonderful beer business in Chile (where the company is an effective monopoly) and on returning capital to its shareholders through dividends and buybacks.  

Results Are Still Wonderful

Despite having lost some ground in terms of market share in its main market against its rival, the Brazilian giant AmBev (ABEV), CCU's results are still ameliorating fast. Revenues were up by 13% year over year, EBITDA increased 6% year over year and their net income grew by 21% year over year. Better yet, consolidated organic volumes (the most important figure for beverage companies) increased by 7% year over year while pricing was also up by 5% year over year. That said, cost increases in Chile, Argentina and Uruguay (where the company is still losing money) were behind the 1.2% EBITDA margin contraction. Even when CCU's figures look very compelling, the company needs to work a lot on its cost structure and on focusing on its main market. After all, CCU's 18.4% EBITDA margin is well below AmBev's 50% margins.  

Valuation Contraction Looks Overdone

Despite the unnecessary capital increase, I believe it's time to take a deep look at the shares. Price is what you pay and value is what you get, and at the current market price, I think you will get more than you pay for if you buy CCU's shares. The Chilean beverage leader sells for 7.7 times 2014 EV/EBITDA and 15 times earnings. Meanwhile, AmBev, which is down by 16% year to date, currently trades at 13 times 2014 EV/EBITDA and 20 times earnings. Even when the Brazilian beverages leader pays a much higher cash dividend yield than CCU (2.95% versus 1.95%), I believe the valuation gap is too wide. Moreover, with CCU you always have the M&A free call attached to the asset. The Chilean beer leader would be a wonderful target for the much bigger AmBev, which has been (unsuccessfully) trying to enter the Chilean market for more than a decade now. The Brazilian company could buy CCU and put into practice its wonderful famous cost-cutting strategies in order to boost margins.

Investors such as Carl Icahn and Richard Perry have held CCU for long periods of time. Maybe they should be buying once more. Always remember: “Price is what you pay and value is what you get.”


Also check out: Carl Icahn Undervalued Stocks Carl Icahn Top Growth Companies Carl Icahn High Yield stocks, and Stocks that Carl Icahn keeps buying

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Monday, December 16, 2013

Online holiday shopping stays strong while stor…

SAN FRANCISCO -- Holiday shoppers are busy online, while physical stores have some work to do to salvage what has been a challenging season so far, retail experts said Monday.

While the crucial holiday season started strongly, especially for e-commerce companies Amazon.com and eBay, there was concern about a possible lull in the middle of the period between Thanksgiving and Christmas. However, that slowdown, which hit hard last year, has yet to materialize.

"So far we haven't seen much of a dip -- not nearly as much as last year," said Scot Wingo, CEO of ChannelAdvisor, which helps merchants sell more online.

This holiday season is six days shorter than last year, leaving consumers less time to complete gift purchases. Promotions continue to come thick and fast, which may also have helped prop up sales, he added.

Wal-Mart, the world's largest retailer, launched a new series of online sales this Monday, calling the event "Gold Monday."

Amazon unveiled an interest-free installment plan that lets shoppers buy one of its Kindle Fire HDX tablets over nine months. In the U.K., the company offered 10 pounds off select products if consumers spend 50 pounds by Dec. 24.

"I haven't seen them do something that aggressive in a while," Wingo said.

ChannelAdvisor clients are generating same-store sales growth of more than 30% on Amazon.com so far this holiday, compared to the same period last year. On eBay, that number has been in the mid 20% range. Wingo said those results were positive for both companies.

"Online is going to be the darling of the holiday shopping season," said Marshal Cohen, chief retail industry analyst at The NPD Group. "It may grow a little more than the 20% that was expected before the season began. The consumer is spending more time online trying to find deals."

In contrast, physical store retailers have had a tougher holiday season so far. With Christmas nine days away, consumers have completed 44% of their shopping, a little behind where th! ey should be at this point, according to Cohen.

"Some say it's the weather and I say it's a lack of exciting merchandize," he added. "Stores have not done enough to generate excitement and consumers are waiting for sales and discounts to get better."

Brian Sozzi, CEO of Belus Capital Advisors, a research firm focused on the retail sector, visited five Wal-Mart stores in the New York City area recently and found excess seasonal inventory.

"They just bought too much," Sozzi said. A Wal-Mart spokeswoman did not immediately respond to a request for comment Monday.

Sozzi also spotted lots of clearance racks with items priced 40% to 70% off at J.C. Penney stores and aggressive promotions by Abercrombie & Fitch, Gap and Coach.

A large storm this weekend in the Northeast and Midwest prevented some shoppers from visiting stores on Saturday. But there is still another weekend to go before Christmas and purchases have probably been delayed rather than canceled, analysts said Monday.

Super Saturday is the Saturday before Christmas, when many shoppers try to get in their last minute shopping. This year, that day falls on Dec. 21.

"About 50% of shopping will be done in the last week of the holiday season," Cohen said. "Retailers will be able to make it up this weekend. But if the weather plays havoc again it could take a toll."

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Belus Capital's Sozzi suggests shoppers buy gift cards and wait until the days following Christmas when retailers will likely have even bigger discounts. The analyst highlighted Best Buy in particular, which has been among the most aggressive with promotions to compete with Amazon.

For shoppers planning to buy gifts late in the season online, orders can be placed on Dec. 23 for fast delivery the following day, UPS said.

Amazon is offering one-day shipping on orders placed as late at! Midnight! EST on Dec. 23. For Dec. 24, the company offers Local Express Delivery in cities including Boston, Chicago and New York for $3.99 per item.

EBay is keeping its same-day delivery service, eBay Now, open longer from Dec. 16 to 23 to capture sales from consumers doing last minute shopping.

Sunday, December 15, 2013

Why Accenture Is Poised to Keep Popping

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, global consulting giant Accenture (NYSE: ACN  ) has earned a respected four-star ranking.  

With that in mind, let's take a closer look at Accenture and see what CAPS investors are saying about the stock right now.

Accenture facts

Headquarters (founded)

Dublin, Ireland (1995)

Market Cap

$49.9 billion

Industry

IT consulting and other services

Trailing-12-Month Revenue

$28.3 billion

Management

CEO Pierre Nanterme (since 2011)

CFO Pamela Craig (since 2006)

Return on Capital (average, past 3 years)

49.8%

Cash/Debt

$5.6 billion / $29.0 thousand

Dividend Yield

2.1%

Competitors

IBM

Computer Sciences

Infosys

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 1,344 members who have rated Accenture believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, mcjc12, offered some insight into the Accenture bull case:

Having been an employee at Accenture for 2 years, it's a good company with a management that is focused on financial results. They should continue to prove profitable and at minimum meet analyst expectations. Their two biggest, most recent bets right now are on Cloud technologies, investing [$400M] on a full SAAS platform, and a JV with GE Aviation on a company called Taleris. Accenture will provide the system architecture/integration support to GEA's design capability. ...

I wouldn't expect this stock to make you big bucks, but will provide a staple to your buy/hold portfolio.  

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Accenture may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.  

Saturday, December 14, 2013

Investors Keep Punishing Lululemon Athletica

Investors aren't done punishing Lululemon Athletica (LULU).

The yoga apparel maker disappointed investors Thursday when it said it would report far lower sales during the fourth quarter than investors had expected and cuts its full-year financial forecasts for the current year. In doing so, Lululemon erased the good will it had earned Tuesday, when it announced that its controversial founder, Chip Wilson, was out as chairman and a new CEO was in.

Investors sent the shares plunging, and Barrons.com weighed in bearishly on the  stock, noting the challenges facing the new CEO (see Barron’s Take, “Lululemon: Bottom-Fishers Beware,” Dec. 12).

Today, the selloff continued amid a string of slashed earnings estimates, price target cuts and a downgrade by Credit Suisse.

At $59, Lululemon fell 2.3%, adding to yesterday's nearly 12% drop.

In a note published today, Credit Suisse analyst Christian Buss cut Lululemon from Outperform to Neutral and cut its price target by one-third to $59, calling the company's lowered expectations "a significant source of concern." He writes:

… we no longer think that product flow issues are holding back the comp significantly. Instead, we view it as increasingly likely that recent quality issues and communication missteps, as well as the increase in availability of lower-priced knock-offs of their core assortment are holding back demand. This suggests a structural change in the demand equation and suggests caution is in order going forwards.

Mizuho Securities analysts Bety Chen and Alex Pham cut their price target from $70 to $60. They wrote:

With weak 4Q guidance, which suggests further comp deceleration, we believe the company may continue to suffer from the intensifying promotional retail environment, particularly as LULU does note typically promote, as well as impact from further issues with product flow. While we are encouraged by opportunities within new product categories, men's, and the growth of ivivva, we remain sidelined until we can see a re-acceleration in comps and as we anticipate further investment may pressure margins in 4Q and beyond.

And Wedbush Securities cut its outlook on the stock from $75 to $68. Analyst Corinna Freedman writes:

Stock essentially de-risked, but likely range-bound through year-end… Mgmt continues to expect product flow issues to continue through 2014 and we believe top-line expectations for 2014 are now reset for the incoming CEO.

Friday, December 13, 2013

Defense attacks Madoff aide’s credibility

NEW YORK — Ponzi scheme mastermind Bernard Madoff's former finance chief admitted Wednesday that he spent decades lying to clients, regulators, auditors and co-workers — including his own brother-in-law.

Testifying on the five-year anniversary of the day Madoff was arrested and the scam collapsed, Frank DiPascali was grilled by the first defense team member representing five former co-workers charged with aiding the $17.3 billion scam that victimized thousands of ordinary investors, celebrities, charities and others.

The cross-examination came after DiPascali, the star prosecution witness, described hurried document-destruction and secret financial transactions that marked the final days before Madoff's operation imploded.

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Attorney Larry Krantz, representing former Madoff computer programmer George Perez, asked DiPascali if he manipulated and lied to Robert Cardile, his brother-in-law and co-worker, "to get him to do the tasks you needed him to do" to help operate the fraud scheme.

"I did," said DiPascali.

Defense lawyers are trying to prove their contention that the five co-workers had no knowledge of the scam and, like thousands of Madoff customers, were fooled by the now-imprisoned and disgraced financier. In part, the legal effort involves trying to discredit DiPascali as a liar who would say anything to avoid the brunt of the maximum 125-year prison sentence he faces.

During at times contentious exchanges, Krantz highlighted earlier testimony in which DiPascali testified he'd known since the 1970s that Madoff never made any of the many stock trades promised to investors. But the ex-Madoff lieutenant identified the time period as "at least the early 1990s" in sworn testimony during his 2009 guilty plea.

"It was not a discrepancy in my mind," said DiPascali.

Similarly, he sparred with the defense lawyer about whether the five-bedroom, five-bath! room, seven-acre $2 million-plus New Jersey home he financed with scam proceeds could be characterized accurately as "lavish." Federal marshals ultimately seized and sold the house, along with DiPascali's 61-foot sport fishing boat, family jewelry and other possessions.

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Asked to try placing his many lies in context with the millions of dollars in salary, cash gifts and other benefits he received from the scam, DiPascali responded: "I don't know what the rate per lie would be."

During earlier questioning by a federal prosecutor, DiPascali recounted a Dec. 3, 2008, meeting in which a weeping Madoff told him his firm was broke and outlined a plan in which the mastermind would tell his family and surrender to authorities after the year-end holidays.

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Madoff warned that decades of falsified business records were "damning," and initially suggested that DiPascali burn them in his New Jersey backyard fire pit. Told that would be impractical, Madoff told DiPascali to box up the records in preparation for shredding by the boss' private driver. DiPascali said he later learned the driver had "consummated" the project.

Over the next few days, DiPascali said Madoff made plans to distribute the roughly $200 million left in the company's bank account to relatives, employees and friends. The boss had him print a spreadsheet identifying employees and their relatives who had Madoff investment accounts, DiPascali testified.

Unaware of the impending collapse, other investors continued to wire funds to Madoff, while some received what proved to be the firm's final disbursements.

The end came earlier than the boss had planned, said DiPascali. Madoff called his cellphone on Dec. 11, and announced that FBI agents were in his Manhattan offices.

Wednesday, December 11, 2013

Soda sales are losing their fizz

soda consumption

Americans are on pace to drink 38.6 gallons of soda per person this year, but that's down 3.5 gallons from five years ago.

NEW YORK (CNNMoney) Health-conscious consumers are buying less soda, especially diet sodas flavored with artificial sweeteners, which some consider risky.

Spending on soft drinks dropped 3.3% between late November and a year ago, according to sales data gathered by Nielsen.

The decline in diet beverages was even steeper: Year-over-year, consumers spent 7.2% less on diet cola and 7.8% less on diet lemon-lime drinks.

It's a concern on the mind of Pepsico (PEP, Fortune 500) CEO Indra Nooyi, who told investors in October that her company has seen "a fundamental shift in consumer habits and behaviors," adding that "the diet slowdown has been a little more rapid than we expected."

Industry watchers say the trend began about 10 years ago and is primarily driven by increasingly health-conscious consumers looking for ways to cut back on sugar and sugar substitutes.

The sales decline intensified in the last five years, said Hester Jeon, an industry research analyst at research firm IBISWorld whose study on soda production was published last month.

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Americans are on track this year to drink 3.5 gallons per person less than they did five years ago, when they drank just over 42.1 gallons of soda each year, she said.

"Industry revenue declined significantly during the recession as consumer spending plummeted," Jeon wrote. She said the diet sales drop appears tied to concerns about processed artificial sweeteners.

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Their response: Introduce low-calorie sodas and expand the range of products to include ready-to-drink tea, juices and sports drinks.

"Our member companies offer a wide variety of product choices, portion sizes and calorie counts, and continue to innovate with more choices to meet evolving consumer needs," said Maureen Beach, spokeswoman for the American Beverage Association, an industry group.

Industry giants Coca-Cola (CCE, Fortune 500) and Pepsi -- which together make up about 70% of the soft drink industry, according to IBISWorld -- did not comment for this article. Pepsi referred questions to the American Beverage Association.

Nooyi, the Pepsico executive, told investors in October that her company would respond to the changing preferences with new products in 2014.

"They don't mind some calories, but they want natural sweeteners," she said. "They want to go back to sugar in some cases."

But the shift has at least one industry excited -- water bottlers.

"This is less an issue of [whether] water's cool or trendy," said Chris Hogan, spokesman for the International Bottled Water Association. "It really is reflective of a societal change."

His industry noticed several years ago that "people were making deliberate switches from carbonated beverages including soft drinks over to bottled water."

Soft drink makers are prepared. Pepsico, for example, owns water brands SoBe Lifewater and Propel, while Coca-Cola owns Dasani, Vitamin Water and Smart Water. To top of page

Tuesday, December 10, 2013

Is Yahoo A Buy At Current Prices?

With shares of Yahoo (NASDAQ:YHOO) trading around $38, is YHOO an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Yahoo is a technology company that provides search, content, and communication tools on the web and on mobile devices worldwide. It operates Yahoo.com, which offers Yahoo Search, Yahoo News, Yahoo Sports, Yahoo Finance, Yahoo Entertainment and Lifestyles, and Yahoo Video. Being such a large content provider, Yahoo is able to reach a significant amount of consumers across the globe. As the internet attracts an increasing number of participants, look for Yahoo to continue to be a major player.

Yahoo ran to its highest perch since January 2006 earlier, after bouncing sharply off its rising 10-day moving average earlier this week. Despite YHOO flexing its technical muscle, puts have gained in popularity today and are trading at two times the average intraday volume. The most sought-after position among this group of option players is the stock’s January 2014 34-strike put.

T = Technicals on the Stock Chart are Strong

Yahoo stock has been exploding to the upside in the last several months. The stock is currently trading near all time highs and looks set to continue. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Yahoo is trading above its rising key averages which signal neutral to bullish price action in the near-term.

YHOO

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Yahoo options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Yahoo options

31.64%

30%

28%

What does this mean? This means that investors or traders are buying a minimal amount of call and put options contracts, as compared to the last 30 and 90 trading days.

Put IV Skew

Call IV Skew

December Options

Flat

Average

January Options

Flat

Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a minimal amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Yahoo’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Yahoo look like and more importantly, how did the markets like these numbers?

2013 Q3

2013 Q2

2013 Q1

2012 Q4

Earnings Growth (Y-O-Y)

-6.67%

66.67%

52.17%

-2.15%

Revenue Growth (Y-O-Y)

0.33%

-6.78%

-6.62%

1.64%

Earnings Reaction

-0.86%

10.34%

-0.37%

-3.00%

Yahoo has seen mixed earnings and revenue figures over the last four quarters. From these numbers, the markets have been pleased with Yahoo’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Yahoo stock done relative to its peers, Google (NASDAQ:GOOG), AOL (NYSE:AOL), Microsoft (NASDAQ:MSFT), and sector?

Yahoo

Google

AOL

Microsoft

Sector

Year-to-Date Return

95.28%

51.16%

50.05%

44.25%

61.18%

Yahoo has been a relative performance leader, year-to-date.

Conclusion

Yahoo is an Internet bellwether that provides a multitude of services to consumers and companies worldwide. The company ran to its highest perch since January 2006 earlier, after bouncing sharply off its rising 10-day moving average earlier this week. The stock has been moving higher in recent quarters and is now trading near all time highs. Over the last four quarters, earnings and revenues have been mixed, which has pleased investors about earnings announcements. Relative to its peers and sector, Yahoo has been a year-to-date performance leader. Look for Yahoo to OUTPERFORM.

Sunday, December 8, 2013

Does JPMorgan Chase Have a Bright Future?

With shares of JPMorgan Chase & Co. (NYSE:JPM) trading around $55, is JPM an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

JPMorgan Chase is a financial holding company that provides various financial services worldwide. The company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management, and private equity. Financial services companies like JPMorgan Chase are essential for well-functioning economies around the world.

JPMorgan Chase is warning some 465,000 holders of prepaid cash cards issued by the bank that their personal information may have been accessed by hackers who attacked its network in July. The cards were issued for corporations to pay employees and for government agencies to issue tax refunds, unemployment compensation, and other benefits. JPMorgan said on Wednesday it detected that its web servers used by its site www.ucard.chase.com had been breached in the middle of September. It then fixed the issue and reported it to law enforcement.

T = Technicals on the Stock Chart Are Strong

JPMorgan Chase stock has done relatively well in the past couple of years. The stock is currently trading near highs for the year and looks set to continue. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, JPMorgan Chase is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

JPM

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of JPMorgan Chase options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

JPMorgan Chase options

21.96%

90%

88%

What does this mean? This means that investors or traders are buying a very significant amount of call and put options contracts as compared to the last 30 and 90 trading days.

Put IV Skew

Call IV Skew

December Options

Flat

Average

January Options

Flat

Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a very significant amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on JPMorgan Chase’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for JPMorgan Chase look like and more importantly, how did the markets like these numbers?

2013 Q3

2013 Q2

2013 Q1

2012 Q4

Earnings Growth (Y-O-Y)

-112.14%

32.23%

33.61%

54.89%

Revenue Growth (Y-O-Y)

-7.67%

13.67%

-3.57%

10.16%

Earnings Reaction

-0.01%

-0.30%

-0.60%

1.01%

JPMorgan Chase has seen increasing earnings and mixed revenue figures over the last four quarters. From these numbers, the markets have had conflicting feelings about JPMorgan Chase’s recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has JPMorgan Chase stock done relative to its peers, Bank of America (NYSE:BAC), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), and sector?

JPMorgan Chase

Bank of America

Citigroup

Wells Fargo

Sector

Year-to-Date Return

27.50%

32.82%

29.15%

27.18%

30.16%

JPMorgan Chase has been an average relative performer, year-to-date.

Conclusion

JPMorgan Chase is a bellwether in the banking space that forms an essential part of the United States financial system. The company is warning some 465,000 holders of prepaid cash cards issued by the bank that their personal information may have been accessed by hackers who attacked its network in July. The stock has done relatively well in recent months but is now trading near highs for the year. Over the last four quarters, earnings have been increasing while revenues have been mixed, which has produced conflicting feelings among investors. Relative to its peers and sector, JPMorgan Chase has been an average year-to-date performer. WAIT AND SEE what JPMorgan Chase does this quarter.