It doesn't seem like it was that long ago when Transocean (NYSE:RIG) was considered one of the best-run energy-related companies and the leader in the offshore drilling industry. While Transocean still has far and away the largest offshore fleet, the company's issues with downtime, operational efficiency, and legacy Macondo liabilities has eroded a lot of the goodwill the company had built with the Street. Transocean's valuation doesn't appear very demanding today, and an improving deepwater market should help, but management still has to rebuild its credibility if the stock is to get the sort of valuation it used to enjoy.
SEE: Pros And Cons Of Offshore Investing
Second Quarter Results Another Step Toward Normal
Transocean's second quarter was no blockbuster, but it was the sort of result that should help build investor comfort with the state of operations.
Revenue fell 7% from the year-ago level, but rose 9% sequentially and was basically in line with expectations. Not surprisingly, more specialized/scarce equipment did better – ultradeepwater revenue rose 5% and 15%, while harsh environment revenue rose 8% and 1%.Utilization rates were better almost completely across the board, with the sequential utilization number for midwater floaters being the only negative comp. Dayrates were more scrambled, though generally up on a sequential basis (with ultradeepwater rates up 11%).
Profitability is also improving as the company puts legacy issues with GE (NYSE:GE) bolts behind it. Operating income rose 18% and 34%, while EBTIDA rose 4% and 23% and came in a little bit ahead of expectation. Fleet revenue efficiency jumped six points sequentially (to 93), and though management expected ongoing improvements (the ultradeepwater fleet is at 91.1 and still below the 94 target), those improvements aren't likely to be smooth and linear from here.
SEE: Oil And Gas Industry Primer
With An Old Fleet, Can Transocean Still Be What It Once Was?
One of the hesitations I have in owning Transocean is my concern about the extent to which past results don't guarantee future performance. Transocean built a very strong operating reputation, but it's fleet has aged.
While SeaDrill's (Nasdaq:SDRL) fleet averages about four years in age, Ensco's (NYSE:ESV) 11 years, and Noble's (NYSE:NE) 17 years, only Diamond Offshore (NYSE:DO) has a higher average fleet age (28 years) than Transocean's 21. Not only does age mean less reliability and potentially higher maintenance spending, but the capabilities don't necessarily compare as favorably, as the water depth, deck load, and hook load capabilities of Transocean's fleet start to trend below average.
As has been the case with land drillers like Helmerich & Payne (NYSE:HP), newer equipment tends to attractive better terms, and I do have some concerns there with Transocean. Likewise, the maintenance burden could lead to more downtime and lower margins.
How Aggressively Should Management Act?
I'm not sure Transocean management has an abundance of choices when it comes to improving shareholder value. Although shipyards are likely looking to bargain, it would be very un-Transocean-like (and likely unpopular with the Street) for the company to commit to a meaningful number of on-spec newbuilds (that is, building new rigs without contracts in place with energy companies like Exxon (NYSE:XOM) to put them into service). Likewise, Transocean doesn't seem to have the type of fleet that would lend itself to a good master limited partnership (MLP) structure.
That may leave M&A as an option. I'm not expecting Transocean to make a move, but a deal for a company like Vantage Drilling (NYSE:VTG) or Pacific Drilling (Nasdaq:PADC) could add some growth during this cycle.
The Bottom Line
Transocean has historically traded at a multiple of 7.5x to forward EBITDA, and that would imply a fair value of almost $60 today. With the stock below $50, clearly the Street no longer believes that the old rules should apply. So the question is one of how much discount is fair. A multiple of 7x would still leave the stock more than 10% below fair value and that seems like too much of a discount given the improving dayrates and trends in the offshore drilling space. So while I'd be very careful about assuming that Transocean will ever regain former glories, the Street seems a little too down on what is still a major operator in an attractive market.
Disclosure – At the time of writing, the author did not own shares of any company mentioned in this article.
Thursday, October 31, 2013
Wednesday, October 30, 2013
Health chief apologizes for botched website
WASHINGTON — Health and Human Services Secretary Kathleen Sebelius apologized to Americans Wednesday for the troubled rollout of the national health care law and its plagued website.
"You deserve better," Sebelius said as she began her testimony to the House Energy and Commerce Committee. "I apologize. I'm accountable to you for fixing these problems."
As GOP calls for her resignation grow louder, Sebelius is getting intense grilling from the panel — which is hearing from the embattled health care secretary for the first time since HealthCare.gov went live on Oct. 1.
"Hold me accountable for the debacle. I'm responsible," Sebelius said after a heated exchange with Rep. Marsha Blackburn, R-Tenn., about problems with the website technology.
Best Insurance Stocks To Own For 2014
Asked for an accounting of federal dollars, Sebelius said the government so far has spent $118 million on the website and another $56 million on "IT support" for the website."
Sebelius' testimony comes the day after Marilyn Tavenner, the director of the Centers for Medicare and Medicaid Services and the Obama administration official closest to the website's management, apologized for the botched rollout.
HealthCare.gov has been shaky since its debut on Oct. 1, when open enrollment began under the Affordable Care Act. The law, which passed with no Republican support, was signed by President Obama with great fanfare in 2010 as a key to overhauling the nation's complex health care system and providing insurance to millions of people who are currently without such coverage.
Obama has stood by Sebelius, a former Kansas governor, and has embarked on his own campaign to tout the law's benefits and move away from the website debacle. The president will speak Wednesday afternoon in Boston, to illustrate the success of Massachusetts' health care law — the basis for the Affordable Care Act.
Je! ffrey Zients, a former White House budget deputy, said the site will be fixed by Nov. 30. Sebelius' prepared testimony says HHS has updated the website's technology with new code and help from experts inside and outside of government.
Sebelius said Wednesday that she feels good about the Nov. 30 date, noting that the department's assessment is that it will take that long for HealthCare.gov to be "an optimally functional" website.
"I have confidence ... but I know it isn't fair to the American people to take my word for it," she said. "I have to fix this."
But until HealthCare.gov gets a clean bill of health, congressional Republicans are sure to keep using the website as a focal point in their arguments that the law is an unwieldy and costly example of government intrusion. The GOP-led House has tried dozens of times to repeal the law, to no avail.
While the administration says more than 700,000 people have created accounts to buy insurance on state and federal health exchanges since Oct. 1, Tavenner and other officials have not disclosed how many people have actually enrolled through the online network.
Follow @KellySKennedy and @ccamia on Twitter.
Monday, October 28, 2013
Top 5 Dividend Companies To Buy Right Now
LONDON -- I'm looking at some of your favorite FTSE 100 companies and examining how each will deliver their dividends.
Today, I'm putting telecommunications giant�Vodafone�Group� (LSE: VOD ) (NASDAQ: VOD ) under the microscope.
Current dividend policy
Vodafone unveiled a new dividend policy when it announced its annual results this week:�"The Board ... going forward aims at least to maintain the ordinary dividend per share at current levels."
Vodafone's dividend for its financial year ended March 2013 is 10.19 pence a share. Therefore, investors can hope for a�minimum�of 10.19 pence a share (and�perhaps�more)�"going forward"�-- though how far forward the company doesn't tell us.
Past dividend policy
How well has Vodafone delivered on its dividend policy in the past? Let me begin by saying that the group is one of just a handful of FTSE 100 companies to have provided shareholders with an above-inflation dividend increase each and every year since the turn of the millennium.
Top 5 Dividend Companies To Buy Right Now: NYSE Euronext Inc.(NYX)
NYSE Euronext, through its subsidiaries, operates securities exchanges. It operates various stock exchanges, including the New York Stock Exchange (NYSE), NYSE Arca, Inc., and NYSE Amex LLC in the United States; and five European-based exchanges that comprise Euronext N.V. ? the Paris, Amsterdam, Brussels, and Lisbon stock exchanges, as well as the NYSE Liffe derivatives markets in London, Paris, Amsterdam, Brussels, and Lisbon. The company?s Derivatives segment provides access to trade execution in derivatives products, options, and futures; offers clearing services for derivative products; and sells and distributes market data and related information. NYSE Euronext?s Cash Trading and Listings segment engages in offering access to trade execution in cash trading and settlement of transactions in European markets; obtaining new listings and servicing existing listings; selling and distributing market data and related information; and providing regulatory services. Its Info rmation Services and Technology Solutions segment operates sell side and buy side connectivity networks for its markets and for other market centers, and market participants in the United States, Europe, and Asia; provides trading and information technology software and solutions; sells and distributes market data and related information to data subscribers for proprietary data products; and offers asset management services, and consultancy services to exchanges and liquidity centers. The company is headquartered in New York, New York.
Advisors' Opinion:- [By Whitney Kisling]
NYSE Euronext (NYX), the U.S. exchange operator being bought by IntercontinentalExchange Inc., reported second-quarter earnings that beat analysts��estimates as revenue from derivatives trading rose and costs fell.
- [By Nick Taborek]
NYSE Euronext (NYX) added 0.7 percent to $41.70. The U.S. exchange operator being bought by IntercontinentalExchange Inc. reported earnings that beat estimates as revenue from derivatives trading rose and costs fell.
Top 5 Dividend Companies To Buy Right Now: ONEOK Inc.(OKE)
ONEOK, Inc., a diversified energy company, operates as a natural gas distributor primarily in the United States. The company operates in three segments: ONEOK Partners, Distribution, and Energy Services. The ONEOK Partners segment engages in gathering, processing, fractionating, transporting, storing, and marketing natural gas and natural gas liquids (NGL) principally in the Mid-Continent and Rocky Mountain regions, which include Anadarko Basin of Oklahoma, Fort Worth Basin of Texas, Hugoton and Central Kansas Uplift Basins of Kansas, Williston Basin of Montana, and North Dakota and the Powder River Basin of Wyoming. This segment offers its services to oil and gas production companies; natural gas gathering and processing companies; petrochemical, refining, and NGL marketing companies; Local distribution companies (LDCs) and power generating companies; and natural gas marketing and NGL gathering companies, and propane distributors. The Distribution segment provides natural gas distribution services to residential, commercial, industrial, and transportation customers, as well as public authority customers, such as cities, governmental agencies, and schools in Oklahoma, Kansas, and Texas. The Energy Services segment delivers physical natural gas products and risk management services through its network of contracted transportation and storage capacity, and natural gas supply. This segment?s customers primarily comprise LDCs, electric utilities, and industrial end users. The company was founded in 1906 and is headquartered in Tulsa, Oklahoma.
Advisors' Opinion:- [By GuruFocus] ref="http://www.gurufocus.com/StockBuy.php?GuruName=Tom+Gayner">Tom Gayner initiated holdings in ONEOK, Inc.. His purchase prices were between $41.16 and $52.13, with an estimated average price of $46.98. The impact to his portfolio due to this purchase was 0.1%. His holdings were 70,000 shares as of 06/30/2013.
New Purchase: Blackstone Group LP (BX)
Tom Gayner initiated holdings in Blackstone Group LP. His purchase prices were between $19.1 and $23.45, with an estimated average price of $21.2. The impact to his portfolio due to this purchase was 0.09%. His holdings were 116,900 shares as of 06/30/2013.
New Purchase: BlackRock Inc (BLK)
Tom Gayner initiated holdings in BlackRock Inc. His purchase prices were between $245.3 and $291.69, with an estimated average price of $267.9. The impact to his portfolio due to this purchase was 0.08%. His holdings were 9,100 shares as of 06/30/2013.
New Purchase: KKR & Co LP (KKR)
Tom Gayner initiated holdings in KKR & Co LP. His purchase prices were between $17.8 and $21.15, with an estimated average price of $19.85. The impact to his portfolio due to this purchase was 0.08%. His holdings were 115,000 shares as of 06/30/2013.
New Purchase: Eni SpA (E)
Tom Gayner initiated holdings in Eni SpA. His purchase prices were between $40.39 and $48.96, with an estimated average price of $45.85. The impact to his portfolio due to this purchase was 0.04%. His holdings were 30,000 shares as of 06/30/2013.
New Purchase: Ross Stores, Inc. (ROST)
Tom Gayner initiated holdings in Ross Stores, Inc.. His purchase prices were between $59.26 and $66.5, with an estimated average price of $64.05. The impact to his portfolio due to this purchase was 0.04%. His holdings were 18,000 shares as of 06/30/2013.
New Purchase: Carlyle Group LP (CG)
Tom Gayner initiated holdings in Carlyle Group LP. His purchase prices were between $24.19 and $32.87, with an estimated average price of $29.5
Hot Financial Companies To Buy Right Now: First Security Group Inc.(FSGI)
First Security Group, Inc. operates as the holding company for FSGBank that provides banking and financial products and services to various communities in eastern and middle Tennessee and northern Georgia. The company offers various deposit services, such as checking, savings, and money market accounts, as well as certificates of deposit. It offers commercial loans, including loans to smaller business ventures, credit lines for working capital, short-term seasonal or inventory financing, and letters of credit; real estate?construction and development loans to residential and commercial contractors and developers; and consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans. The company also offers commercial mortgage loans to finance the purchase of real property; commercial leasing for new and used equipment, fixtures, and furnishings to owner-managed businesses; and leasing for forklifts, heavy equipment, and other machinery to owner-managed businesses primarily in the trucking and construction industries. It also provides trust and investment management, mortgage banking, financial planning, and electronic banking services, such as Internet banking, online bill payment, cash management, ACH originations, wire transfers, direct deposit, traveler?s checks, safe deposit boxes, United States savings bonds, and remote deposit capture, as well as equipment leasing. The company operates 38 full-service banking offices and 1 loan and lease production office. Its market areas include in Bradley, Hamilton, Jackson, Jefferson, Knox, Loudon, McMinn, Monroe, Putnam, and Union counties, Tennessee; and Catoosa and Whitfield counties, Georgia. First Security Group was founded in 1974 and is headquartered in Chattanooga, Tennessee.
Advisors' Opinion:- [By Ning Jia]
The case for First Security Group (FSGI) is interesting. It is bank holding company that is obscure, cheap and unloved. As the company completed the recapitalization earlier this year, I think the market has been under-appreciating its potential to return to growth and profitability as a result of the much-needed recapitalization.
- [By Roberto Pedone]
First Security Group (FSGI) operates as the holding company for FSGBank, which provides banking products and services to various communities in Tennessee and Georgia. This stock closed up 6.5% to $2.29 in Tuesday's trading session.
Tuesday's Range: $2.16-$2.30
52-Week Range: $1.30-$7.45
Tuesday's Volume: 80,000
Three-Month Average Volume: 509,606From a technical perspective, FSGI ripped higher here right above some near-term support levels at $2.14 to $2.12 with lighter-than-average volume. This move is quickly pushing shares of FSGI within range of triggering a major breakout trade. That trade will hit if FSGI manages to take out some near-term overhead resistance levels at $2.38 to $2.52 and then once it clears its 200-day moving average at $2.80 with high volume.
Traders should now look for long-biased trades in FSGI as long as it's trending above some key support levels at $2.14 to $2.12 and then once it sustains a move or close above those breakout levels with volume that hits near or above 509,606 shares. If that breakout triggers soon, then FSGI will set up to re-fill some of its previous gap down zone from June that started at $5.08.
Top 5 Dividend Companies To Buy Right Now: Polo Ralph Lauren Corporation(RL)
Ralph Lauren Corporation, together with its subsidiaries, engages in the design, marketing, and distribution of lifestyle products. The company offers men?s, women?s, and children?s clothing; and accessories comprising footwear, eyewear, watches, jewelry, hats, and belts, as well as leather goods, including handbags and luggage. It also provides products for homes, including bedding and bath products, furniture, fabric and wallpaper, paint, tabletop, and giftware; and fragrance products for women men. In addition, the company licenses its products, such as men?s sportswear, men?s tailored clothing, men?s underwear and sleepwear, eyewear, fragrances, cosmetics, and color and skin care products. It offers its products under the Polo by Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren Women?s Collection, Black Label, Blue Label, Lauren by Ralph Lauren, RRL, RLX, Rugby, Ralph Lauren Childrenswear, American Living, Chaps, and Club Monaco brand names. Ralph Lauren sells its products to department stores, specialty stores, and golf and pro shops; full-price retail stores, factory retail stores, and concessions-based shop-within-shops; and online through RalphLauren.com and Rugby.com. As of April 3, 2010, it operated 179 full-price retail stores and 171 factory stores worldwide, as well as 281 concessions-based shop-within-shops and 2 e-commerce Websites. The company was formerly known as Polo Ralph Lauren Corporation and changed its name to Ralph Lauren Corporation in August 2011. Ralph Lauren Corporation was founded in 1967 and is based in New York, New York.
Advisors' Opinion:- [By Shauna O'Brien]
Piper Jaffray reported on Wednesday that it has downgraded Ralph Lauren Corp (RL) to “Neutral.”
The firm has cut its rating on RL from “Overweight” to “Neutral,” and has lowered its price target on the company from $200 to $170. This new price target suggests a 6% upside from the stock’s current price of $159.64.
An analyst from the firm noted: ��s we think about the RL stock (not the company) over the next 6-12 months, we are stepping to the sidelines, moving our rating from OW to Neutral ($170 PT). To be clear, we view RL as a core holding for the longer-term oriented investor (2 yrs+) as we believe global growth initiatives in China, accessories & the prospects for accelerated sq-ftage (Polo stores in Europe) will create margin expansion opportunities over time. That said, in the absence of a compelling apparel spending environment and with a multi-year investment cycle underway, we believe earnings upside could be more limited. We believe money flow will favor equities but expect investors will pay up for visibility in beat & raise stories as we navigate through the evolving global retail landscape.��/p>
Ralph Lauren shares were down 92 cents, or 0.57% during Wednesday morning trading. The stock is up 7% YTD.
- [By Lu Wang]
Sempra Energy and Ralph Lauren Corp. (RL) slipped at least 2.3 percent after their forecasts missed analysts��estimates. Ford Motor Co. (F) (F) retreated 1.1 percent after saying it will stop making cars in Australia in October 2016. Hewlett-Packard Co. surged 17 percent after the computer maker�� forecast for fiscal third-quarter profit exceeded estimates.
Top 5 Dividend Companies To Buy Right Now: P.T. Telekomunikasi Indonesia Tbk.(TLK)
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides telecommunication and network services worldwide. The company?s Fixed Wireline segment offers local, domestic long-distance, international telephone services, and other telecommunications services, including leased lines, telex, transponder, satellite, and very small aperture terminal (VSAT), as well as ancillary services. Its Fixed Wireless segment provides local and domestic long-distance code division multiple access-based telephone services, as well as other telecommunication services within a local area code. Perusahaan Perseroan?s Cellular segment offers mobile cellular telecommunication services. Its network services comprise satellite transponder leasing, satellite broadcasting, VSAT, audio distribution, and terrestrial and satellite-based leased lines. The company?s data and Internet services include short messaging service for fixed wire line, fixed wireless, and cellular phones, dial-up and broadband Internet access, virtual private network (VPN) frame relay, Internet protocol (IP) VPN, voice over IP for international calls, integrated services digital network connections, and other multimedia services. The company also provides information services, such as billing, directory assistance, and content services; and wireless application protocol, Web portal, ring back tones, voicemail, and building management services. In addition, it offers consultancy services, as well as constructs and maintains telecommunications facilities; interconnection services; telephone directory production services; and cable and pay television services. As of December 31, 2010, the company served 120.5 million customers, including 8.3 million fixed wireline telephone subscribers, 18.2 million fixed wireless telephone subscribers, and 94.0 million cellular telephone subscribers. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk was founded in 1884 and is headquartered in Bandung, Indonesia.
The 2 Biggest Homebuyer Fears Are Irrational
In the following video segment, Motley Fool analyst Austin Smith discusses with host Chris Hill two irrational fears homebuyers worry about when thinking about purchasing a home on today's market: rising prices, and rising interest rates. Austin spells out why prospective homebuyers shouldn't be concerned with these at the moment over a 30-year timeline, and he warns those looking into buying a home about what the real potential danger is.
With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies that could take off when the global economy gains steam. Click here to read the full report!
Sunday, October 27, 2013
Why Active Management Isn't as Dumb as You Think
Millions of investors have learned that if you can't beat the market indexes, you're better off joining them. The popularity of passive investment strategies has exploded higher with the rise of exchange-traded funds, most of which use formulaic criteria to choose their stock holdings rather than qualitative analysis.
Yet as valuable as low-cost index funds can be, some investors are too quick to dismiss all actively managed mutual funds as being a waste of money. In particular, if you focus too much on short-term results to justify abandoning active investing strategies, you could end up making the same mistakes as short-term traders who move in and out of stocks too quickly to capture the lion's share of their long-term gains.
Active managers fall short -- again
S&P Dow Jones Indices recently did a study looking at the results of actively managed stock mutual funds. In particular, it looked at more than 700 mutual funds that finished in the top 25% in terms of one-year performance as of March 2011. After two years, fewer than 5% of those 700 funds managed to stay in the top 25% during each of the ensuing two 12-month periods.
Moreover, when S&P expanded the test to include managers in the top half, it produced similar results: Just 18% of funds in the top half by performance in 2011 managed to repeat those top-half returns in both 2012 and 2013. Looking back a longer period, only 2% to 5% of funds in various sub-asset classes managed to stay in the top half of performers for five consecutive years. Those figures are less even than a random distribution would predict, strongly suggesting that good performance in one period is more likely to be followed by worse performance in the next.
The wrong reason to go passive
Yet judging mutual funds based on streaks of short-term performance is exactly the wrong way to evaluate a long-term fund's holdings. If you're committed to an investment strategy for the long haul, then occasional one-year underperformance shouldn't amount to anything.
Perhaps the best example of this phenomenon lately comes from Bruce Berkowitz, manager of the Fairholme Fund (NASDAQMUTFUND: FAIRX ) . In 2011, Berkowitz was coming off three straight years of having been among the top 10% of fund managers in the large-cap value category, earning himself an award as Morningstar's Fund Manager of the Decade for stocks. Yet in 2011, he made big bets on financial stocks that turned out to be far too early. Investments in Bank of America (NYSE: BAC ) , mortgage- and bond-insurance company MBIA (NYSE: MBI ) , and insurer juggernaut AIG (NYSE: AIG ) didn't pan out as quickly as he'd hoped, and investors suffered 32% losses for the year while the S&P posted modest 2% gains. Investors fled the fund in droves, sending assets under management plunging.
Yet by 2012, Bank of America had recovered, doubling in value with help from capital financing courtesy of Warren Buffett and rising prospects in the banking sector. Meanwhile, AIG continued its strategy of divesting non-core assets and getting out from under government control. Fairholme's return more than doubled the S&P in 2012. More recently, MBIA's settlement with Bank of America sent shares soaring, allowing Berkowitz to sell out at a large profit.
Admittedly, 2011's massive underperformance did a lot to undermine Fairholme's longer-term track record. The fund's five-year performance now just barely beats out the average for the category. Yet with the rule applying even in an extreme situation, you can more easily see how a fund that just pokes down into the bottom half in performance one year could still put together an impressive track record over time.
Be careful, but don't panic
One thing is true: Higher-cost mutual funds have a greater burden to overcome in producing after-cost returns for their shareholders. That's why in the long run, many index funds beat out actively managed funds. But if you decide passive investing is for you, make sure you do it for the right reasons -- not just because a fund you own didn't manage to top the performance list every single year you owned it.
Whether you choose an actively managed fund or an index ETF, it's more important than ever to start investing right now. That's why we've brought you a brand-new special report, "Your Essential Guide to Start Investing Today." Inside, the Motley Fool's personal finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.
Tune in every Monday and Wednesday for Dan's columns on retirement, investing, and personal finance. You can follow him on Twitter @DanCaplinger.
Thursday, October 24, 2013
Ask Matt: Can I buy a single share of Disney?
USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com.
Q: How do I buy one share of Disney stock?
A: Paper certificates of Disney stock might be vanishing just as The Country Bear Jamboree did in Disneyland, but investors can still buy a single share.
The lowest cost way to buy a single share of Disney is by using a low-cost discount brokerage. Most online brokerages charge just $10 or less to buy the stock, and some, including Capital One ShareBuilder and TD Ameritrade, don't have a minimum account balance. The commission might seem high, as a percentage of the roughly $60 a share stock price, but other options will likely cost more.
TRACK YOUR STOCKS: Get real-time quotes with our free Portfolio Tracker
Investors can also consider buying Disney stock through Disney itself. But the way the Walt Disney Investment Plan is structured, you'll have to buy more than a share. Disney's stock purchase plan requires an initial investment of $250 or more. There are also commissions including a $10 one-time enrollment fee and a $5 purchase fee if you buy the stock with a check.
10 Best Dividend Stocks To Buy Right Now
If you're looking to give something tangible as a gift, there are stock-certificate framing services. But Disney stopped issuing paper certificates in October.
Framing services such as OneShare now sell framed "certificates of acquisition" to commemorate the digital Disney shares. The fees are pretty high, though. The certificate fee at OneShare.com is $49, plus the price of the digital share of Disney. Framing fees are added on top based on options you choose.
Wednesday, October 23, 2013
T-Mobile extends ‘Un-carrier’ plans to tablets
Wireless carrier T-Mobile has added tablets to its "Un-carrier" initiative that aims to drop monthly contracts in favor of plans allowing users to pay for the full price of the device in monthly installments.
Tablets running through T-Mobile's 4G LTE network will receive a free 200 MB of data every month for the life of the device. Consumers seeking more data can upgrade as high as 2 GB for $10 a month.
"Carriers figured out a long time ago that they could make money - a lot of money - by forcing customers into restrictive, overpriced data plans," says T-Mobile CEO John Legere in a statement. "We changed it for smartphones and we're changing it for tablets."
The company will also start offering tablets at full price, payable in monthly installments. For example, the Google Nexus 7 will be available starting November 20 for $16 a month over 24 months, while Samsung's Galaxy Tab 2 10.1 will go for $19 in installments.
T-Mobile will also carry the iPad Air, announced during an event hosted by Apple on Tuesday. Consumers can snag a 16 GB version with no money down for $26.25 in 24 monthly installments. Tablets with larger storage will require down payments starting at $99.99.
The tablet plans are the company's latest effort to shake up a wireless industry that offers subsidized devices requiring two-year contracts. Over the past year, T-Mobile has introduced plans where users can purchase an unsubsidized smartphone and pay the full price over monthly installments.
The company has also unveiled early upgrade plans, a more expensive option to secure a new device as soon as six months after the consumer's initial purchase.
Follow Brett Molina on Twitter: @bam923.
Tuesday, October 22, 2013
Arabian American Development Beats on Both Top and Bottom Lines
Arabian American Development (NYSE: ARSD ) reported earnings on June 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Arabian American Development beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share was unchanged. GAAP earnings per share expanded significantly.
Gross margins increased, operating margins contracted, net margins expanded.
Revenue details
Arabian American Development logged revenue of $52.7 million. The two analysts polled by S&P Capital IQ predicted a top line of $49.9 million on the same basis. GAAP reported sales were 7.1% lower than the prior-year quarter's $56.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.09. The one earnings estimate compiled by S&P Capital IQ predicted $0.08 per share. Non-GAAP EPS of $0.09 were the same as the prior-year quarter. GAAP EPS of $0.19 for Q1 were 138% higher than the prior-year quarter's $0.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 12.7%, 90 basis points better than the prior-year quarter. Operating margin was 5.8%, 60 basis points worse than the prior-year quarter. Net margin was 9.1%, 560 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $61.8 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $244.9 million. The average EPS estimate is $0.59.
Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arabian American Development is buy, with an average price target of $12.00.
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Add Arabian American Development to My Watchlist.Monday, October 21, 2013
5 Best Medical Stocks For 2014
William Vazquez, Pfizer/AP TRENTON, N.J. -- Men who are bashful about needing help in the bedroom no longer have to go to the drugstore to buy that little blue pill. In a first for the drug industry, Pfizer Inc. (PFE) told The Associated Press that the drugmaker will begin selling its popular erectile dysfunction pill Viagra directly to patients on its website. Men still will need a prescription to buy the blue, diamond-shaped pill on viagra.com, but they no longer have to face a pharmacist to get it filled. And for those who are bothered by Viagra's steep $25-a-pill price, Pfizer is offering three free pills with the first order and 30 percent off the second one. Pfizer's bold move blows up the drug industry's distribution model. Drugmakers don't sell medicines directly to patients. Instead, they sell in bulk to wholesalers, who then distribute the drugs to pharmacies, hospitals and doctors' offices. But the world's second-largest drugmaker is trying a new strategy to tackle a problem that plagues the industry. Unscrupulous online pharmacies increasingly offer patients counterfeit versions of Viagra and other brand-name drugs for up to 95 percent off with no prescription needed. Patients don't realize the drugs are fake or that legitimate pharmacies require a prescription. Other major drugmakers likely will watch Pfizer's move closely. If it works, drugmakers could begin selling other medicines that are rampantly counterfeited and sold online, particularly treatments for non-urgent conditions seen as embarrassing. Think: diet drugs, medicines for baldness and birth control pills. "If it works, everybody will hop on the train," says Les Funtleyder, a health care strategist at private equity fund Poliwogg who believes Pfizer's site will attract "fence-sitters" who are nervous about buying online. The online Viagra sales are Pfizer's latest effort to combat a problem that has grown with the popularity of the Internet. In recent years, Americans have become more comfortable with online shopping, with many even buying prescription drugs online. That's particularly true for those who don't have insurance, are bargain hunters or want to keep their medicine purchases private. Few realize that the vast majority of online pharmacies don't follow the rules. The Internet is filled with illegitimate websites that lure customers with spam emails and professional-looking websites that run 24-hour call centers. A January study by the National Association of Boards of Pharmacy, which accredits online pharmacies, found that only 257 of 10,275 online pharmacy sites it examined appeared legitimate. Experts say the fake drugs such websites sell can be dangerous. That's because they don't include the right amount of the active ingredient, if any, or contain toxic substances such as heavy metals, lead paint and printer ink. They're generally made in filthy warehouses and garages in Asia, Eastern Europe and Latin America. Online buyers are "playing Russian roulette," says Matthew Bassiur, vice president of global security at New York-based Pfizer. "The factories are deplorable. I've seen photographs of these places," he says. "You wouldn't even want to walk in them, let alone ingest anything made in them." Pfizer, which invented the term "erectile dysfunction," has long been aggressive in fighting counterfeiters. It conducts undercover investigations and works with authorities around the globe, with good reason. Counterfeits and Generics Counterfeit versions of Viagra and dozens of other Pfizer medicines rob the company of billions in annual sales. Viagra is one of its top drugs, with $2 billion in worldwide revenue last year. And it's the most counterfeited drug in the U.S., according to the company. A 2011 study, in which Pfizer bought "Viagra" from 22 popular Internet pharmacies and tested the pills, found 77 percent were counterfeit. Most had half or less of the promised level of the active ingredient. Viagra is appealing to counterfeiters because it carries a double whammy: It's expensive and it treats a condition with an "embarrassment" factor. Crooks running the illegal online pharmacies brazenly explain their ultra-low Viagra prices -- often $1 to $3 a pill -- by claiming they sell generic Viagra. Generics are copycat versions of brand-name prescription drugs. They can legally be made after a drugmaker's patent, or exclusive right to sell a drug, ends. Generic drugmakers don't have to spend $1 billion or so on testing to get a new drug approved, so their copycat versions often cost up to 90 percent less than the original drug. But there is no such thing as generic Viagra. Pfizer has patents giving it the exclusive right to sell Viagra until 2020 in the U.S. and for many years in other countries. Many patients are unaware of that. Dr. David Dershewitz, an assistant urology professor at New Jersey Medical School who treats patients at Newark's University Hospital, says erectile dysfunction is common in men with enlarged prostates, diabetes and other conditions, but most men are too embarrassed to discuss it. He says well over half of his patients who do broach the issue complain about Viagra's price. Some tell Dershewitz that they go online looking for bargains because they can't afford Viagra. "The few that do admit to it have said that the results have been fairly dismal," but none has suffered serious harm, he says. For Pfizer, that's a big problem. People who buy fake drugs online that don't work, or worse, harm them, may blame the company's product. That's because it's virtually impossible to distinguish fakes from real Viagra. "The vast majority of patients do believe that they're getting Viagra," said Vic Cavelli, head of marketing for primary care medicines at Pfizer, which plans to have drugstore chain CVS Caremark Corp. (CVS) fill the orders placed on viagra.com. The sales lost to counterfeits threaten Pfizer at a time when Viagra's share of the $5 billion-a-year global market for legitimate erectile dysfunction drugs has slipped, falling from 46 percent in 2007 to 39 percent last year, according to health data firm IMS Health. The reason? Competition from rival products, mainly Eli Lilly & Co.'s (LLY) Cialis -- the pill touted in those ubiquitous commercials featuring couples in his-and-hers bathtubs in bizarre places. Judson Clark, an Edward Jones analyst, forecasts that Viagra sales will decline even further, about 5 percent each year for the next five years, unusual "for a drug in its prime." Clark says he thinks Pfizer's strategy will prevent sales from declining, but he's unsure how well it will work. "It's a very interesting and novel approach," he says. "Whether it returns Viagra to growth is hard to say." (MDT) Medtronic is a maker of medical devices, specializing in cardiovascular products like pacemakers, valve replacements, and various items to help repair problems in the circulatory system. But Medtronic also serves a number of other areas, including ways to treat spinal problems, diabetes and chronic pain.
5 Best Medical Stocks For 2014: Oxford BioMedica PLC (OXB)
Oxford BioMedica plc is a biopharmaceutical company developing gene-based medicines and therapeutic vaccines. The Company�� LentiVector platform products include ProSavin, RetinoStat, StarGen, UshStat, EncorStat, Glaucoma-GT and MoNuDin. Its 5T4 Tumour Antigen produces TroVax and Anti-5T4 antibody. The Prime Boost�� product includes Hi-8 Mel. Its GDEPT platform produces MetXia and Anti Angiogenesis platform produces EndoAngio-GT. The Company is developing four LentiVector platform product candidates for the treatment of ocular diseases: RetinoStat for wet age-related macular degeneration (AMD); StarGen for Stargardt disease; UshStat for Usher syndrome type 1B, and EncorStat for corneal graft rejection. TroVax is a therapeutic vaccine that stimulates the immune system to destroy cancerous cells expressing the 5T4 tumour antigen. On February 25, 2011, the Company purchased a freehold property, United Kingdom comprising a manufacturing facility.5 Best Medical Stocks For 2014: Myriad Genetics Inc (MYGN.O)
Myriad Genetics, Inc. (Myriad) is a molecular diagnostic company. The Company is focused on developing and marketing predictive medicine, personalized medicine and prognostic medicine tests. It performs all of its molecular diagnostic testing and analysis in its own reference laboratories. These technologies include the cornerstone technologies of biomarker discovery, high-throughput deoxyribo nucleuc acid (DNA) sequencing, ribo nucleic acid (RNA) expression and multiplex protein analysis. The Company uses this information to guide the development of new molecular diagnostic tests that are designed to assess an individual's risk for developing disease later in life (predictive medicine), identify a patient's likelihood of responding to drug therapy and guide a patient's dosing to ensure optimal treatment (personalized medicine), or assess a patient's risk of disease progression and disease recurrence (prognostic medicine).
As of June 30, 2012, the Company h ad launched nine commercial molecular diagnostic tests. The Company markets these tests through its own approximate 385-person sales force in the United States. The Company also markets its BRACAnalysis, COLARIS, and COLARIS AP tests through its own European sales force and have entered into marketing collaborations with other organizations in selected Latin American, European and Asian countries. The Company also generates revenue by providing companion diagnostic services to the pharmaceutical, and biotechnology industries and medical research institutions utilizing its multiplexed immunoassay technology.
Molecular Diagnostic Tests
The Company's molecular diagnostic tests are designed to analyze genes, their mutations, expression levels and proteins to assess an individual's risk for developing disease later in life, determine a patient's likelihood of responding to a particular drug, assess a patient's risk of disease progression and disease recu rrence and measure a patient's exposure to drug therapy to! e! nsure optimal dosing and reduced drug toxicity. The Company's BRACAnalysis test is a analysis of the BRCA1 and BRCA2 genes for assessing a woman's risk of developing hereditary breast and ovarian cancer. BRACAnalysis accounted for 81.7% of the Company's total revenue during the fiscal year ended June 30, 2012. Its The Company's COLARIS test is an analysis of the MLH1, MSH2, MSH6 and PMS2 genes for assessing a person's risk of developing colorectal cancer or uterine cancer.
The Company's COLARIS AP test detects mutations in the APC and MYH genes, which cause a colon polyp-forming syndrome known as Familial Adenomatous Polyposis (FAP), a more common variation of the syndrome known as attenuated FAP, and the MYH-associated polyposis signature (MAP). The Company's MELARIS test analyzes mutations in the p16 gene to determine genetic susceptibility to malignant melanoma. The Company's OnDose test is a nanoparticle immunoassay that is designed to assist oncologists in optimizing 5-FU (fluorouracil) anti-cancer drug therapy in colon cancer patients on an individualized basis. The Company's PANEXIA test is a comprehensive analysis of the PALB2 and BRCA2 genes for assessing a person's risk of developing pancreatic cancer later in life. The Company's PREZEON test is an immunohistochemistry test that analyzes the PTEN gene and assesses loss of PTEN function in many cancer types.
The Company's Prolaris test is a 46-gene molecular diagnostic assay that assesses whether a patient is likely to have a slow growing, indolent form of prostate cancer that can be safely monitored through active surveillance, or a more aggressive form of the disease that would warrant aggressive intervention, such as a radical prostatectomy or radiation therapy. The Company's TheraGuide 5-FU test analyzes mutations in the DPYD gene and variations in the TYMS gene to assess patient risk of toxicity to 5-FU (fluorouracil) anti-cancer drug therapy.
< p>Companion Diagnostic Services and Other RevenueThe Company has compiled a library of over 550 individual human and rodent immunoassays for use in its multi-analyte profile (MAP) testing services. The Company has also developed RodentMAP, a panel for use in pre-clinical animal studies and OncologyMAP, which measures cancer-related proteins to assists researchers accelerate the pace of discovery, validation and translation of cancer biomarkers for early detection, patient stratification and therapeu tic monitoring. The Company has developed multiplexed immunoassay kits that enable its customers to leverage its technology services with their in-house capabilities. The Company's internally developed multiplexed immunoassay kits include all of the components necessary for a customer to perform a test on their own Luminex instrument. TruCulture is a simple, self-contained whole blood culture that can be deployed to clinical sites around the world for acquiring cell culture data without specialized facilities or training.
Top Biotech Companies To Invest In Right Now: Fuse Science Inc (DROP)
Fuse Science, Inc. ( Fuse Science), incorporated on September 21, 1988, is a consumer products holding company. The Company maintains the rights to sublingual and transdermal delivery systems for bioactive agents that can effectively encapsulate and charge many varying molecules in order to produce complete product formulations which can be consumed orally, applied topically or delivered otherwise sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The Fuse Science technology is designed to accelerate conveyance of medicines or nutrients relative to traditional pills and liquids and can enhance how consumers receive these products. In December 2012, the Company launched its initial DROP products, PowerFuse, an energy formulation in a concentrated drop and ElectroFuse, an electrolyte formula in a concentrated drop, online, with the expansion into targeted retail distribution channels.
The Company is developing formulations and devices, which are compatible with alternative delivery systems for energy, medicines, vitamins and minerals, among other bioactives. These alternative systems include, but are not limited to, sublingual, transdermal and buccal drug delivery methods. use Science has developed and continues to advance, in conjunction with its scientific team, sublingual and transdermal delivery systems for bioactives that can effectively encapsulate and charge varying molecules in order to produce product formulations which can be consumed orally, applied topically or otherwise delivered sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The delivery technology is consists of encapsulation vesicles and ion exchange permeation enhancers. This technology utilizes a gradient across the mucosa membrane to help deliver the bioactive more efficiently through the mucosa.
The Company�� products consist of EnerJel, PowerFuse and ElectroFuse. Ene! rJel is a topical product leveraging some of its technology, which is designed to address muscle fatigue and soreness, before, during and after physical activity. The product contains a natural anti-inflammatory and energy source which is directly applied to the problem area. PowerFuse contains natural ingredients, causes no sugar crash with zero calories and less than half the caffeine of an eight ounce cup of premium coffee. It is available in a great tasting Berry Blast Flavor. ElectroFuse contains natural ingredients, causes no sugar crash with zero calories, is easily portable and is available in a great tasting Salty-Sweet flavor.
5 Best Medical Stocks For 2014: Hanger Orthopedic Group Inc.(HGR)
Hanger Orthopedic Group, Inc. engages in the ownership and operation of orthotic and prosthetic (O&P) patient care centers in the United States. The company provides orthotic and prosthetic patient care services. Its orthotics business include the design, fabrication, fitting, and maintenance of a range of standard and custom-made braces and other devices that provide external support to patients suffering from musculoskeletal disorders, such as ailments of the back, extremities or joints, and injuries from sports or other activities. The company?s prosthetics business comprise designing, fabricating, fitting, and maintaining custom-made artificial limbs for patients, who are without limbs as a result of traumatic injuries, vascular diseases, diabetes, cancer, or congenital disorders. It also distributes branded and private label O&P devices, as well as develops programs to manage various aspects of O&P patient care for insurance companies. In addition, the company manufac tures and distributes therapeutic footwear for diabetic patients in the podiatric market, as well as develops and provides specialized rehabilitation technologies and integrated clinical programs to rehabilitation providers. As of June 30, 2011, it operated approximately 675 patient-care centers in 45 states and the District of Columbia. The company, formerly known as Sequel Corporation, was founded in 1861 and is headquartered in Austin, Texas.
5 Best Medical Stocks For 2014: StemCells Inc (STEM)
StemCells, Inc. (StemCells), incorporated in August 1988, is engaged in the research, development, and commercialization of stem cell therapeutics and related tools and technologies for academia and industry. The Company is focused on developing and commercializing stem and progenitor cells as the basis for therapeutics and therapies, and cells and related tools and technologies to enable stem cell-based research and drug discovery and development. The Company�� primary research and development efforts are focused on identifying and developing stem and progenitor cells as potential therapeutic agents. The Company has two therapeutic product development programs, including its CNS Program, which is developing applications for HuCNS-SC cells, its human neural stem cell product candidate, and its Liver Program, which is characterizing the Company�� human liver cells as a therapeutic product.
CNS Program
The Company in its CNS Program, is in clinical development with its HuCNS-SC cells for a range of disorders of the central nervous system. The CNS includes the brain, spinal cord and eye. In February 2012, the Company had completed a Phase I clinical trial in Pelizeaus-Merzbacher Disease (PMD), a fatal myelination disorder in the brain.
The Company�� CNS Program is focused on developing clinical applications, in which transplanting HuCNS-SC cells protect or restore organ function of the patient before such function is irreversibly damaged or lost due to disease progression. The Company�� initial target indications are PMD, and more generally, diseases in which deficient myelination plays a central role, such as cerebral palsy or multiple sclerosis; spinal cord injury, disorders in which retinal degeneration plays a central role, such as age-related macular degeneration or retinitis pigmentosa. The Company�� product candidate, HuCNS-SC cells, is a purified and expanded composition of normal human neural stem cells. Its HuCNS-SC cells can be directly transp! lanted.
Liver Program
Liver stem or progenitor cells offer an alternative treatment for liver diseases. A liver cellular therapy or cell-based therapeutic provide or support liver function in patients with liver disease. The Company held a portfolio of issued and allowed patents in the liver field, which cover the isolation and use of both hLEC cells and the isolated subset, as well as the composition of the cells themselves.
The Company�� range of cell culture products, which are sold under the SC Proven brand, includes iSTEM, GS1-R, GS2-M, RHB-A, RHB-Basal, NDiff N2, and NDiff N2B27. Its iSTEM is a serum-free, feeder-free medium that maintains mouse embryonic stem cells in their pluripotent ground state by using selective small molecule inhibitors to block the pathways, which induce differentiation. RHB-A is a defined, serum-free culture medium for the selective culture of human and mouse neural stem cells and their maintenance and expansion as adherent cell populations. RHB-Basal is a defined, serum-free basal medium. When supplemented with specific growth factors, this media is formulated for the propagation and differentiation of adherent neural stem cells. RHB-Basal can also be tailored to specific-cell type requirements by the addition of customer preferred supplements.
The Company�� NDiff N2 is a defined serum-free scell culture supplement for the derivation, maintenance, expansion and/or differentiation of human and mouse embryonic stem (ES) cells and tissue-derived neural stem cells supplement. Its NDiff N2-AF is a serum-free and animal component-free version of NDiff N2. Its NDiff N2B27 is a defined, serum-free medium for the differentiation of mouse embryonic stem cells to neural cell types. NDiff N27-AF is a serum-free and animal component-free version of NDiff N27. Its GS1-R is a serum-free media formulation shown to enable the derivation and long-term maintenance of true, germline competent rat embryonic stem cells without the add! ition of ! cytokines or growth factors. Its GS2-M is a defined, serum- and feeder-free medium for the derivation and long-term maintenance of true, germline competent mouse iPS cells.
The Company also markets a number of antibody reagents for use in cell detection, isolation and characterization. These reagents are also under the SC Proven brand and it includes STEM24, STEM101, STEM121 and STEM123. Its STEM24 is a human antibody that recognizes human CD24, also known as heat stable antigen (HSA), a glycoprotein expressed on the surface of many human cell types, including immature human hematopoietic cells, peripheral blood lymphocytes, erythrocytes and many human carcinomas. Its CD24 is also a marker of human neural differentiation. Its STEM101 is a human-specific mouse antibody that recognizes the Ku80 protein found in human nuclei. Its STEM121 is a human-specific mouse antibody that recognizes a cytoplasmic protein of human cells. Its STEM123 is a human-specific mouse antibody that recognizes human glial fibrillary acidic protein (GFAP).
The Company�� Other products marketed under SC Proven include total cell genomic DNA (gDNA), RNA and protein lysate reagents purified from homogenous stem cell populations for intra-comparative studies, such as Epigenetic fingerprinting, Southern, Western and Northern blots, PCR, RT-PCR and microarrays. This range of purified stem cell line lysates includes mouse embryonic stem (ES) cells propagated in SC Proven 2i inhibitor-based GS2-M media and mouse ES cell-derived and fetal tissue-derived neural stem (NS) cells propagated in SC Proven RHB-A media.
Advisors' Opinion:- [By James E. Brumley]
When an investor thinks of spinal-related stem cell stocks, usually a name like Neuralstem, Inc (NYSEMKT: CUR) or StemCells Inc (NASDAQ: STEM) comes to mind. And well they should. STEM has logged some amazing breakthroughs in the field of spinal cord repair, while CUR has done the same. Not all back problems are spinal cord related though. In fact, most back problems - and therefore the most opportunity - are bone and disc related problems. That's where a young gun like BioRestorative Therapies (OTCBB: BRTX) can step in and make stem cell waves. BRTX has developed an approach to rejuvenate and revive failing spinal discs, potentially ending pain for millions of back-pain sufferers, and circumventing expensive spinal surgeries that are in increasing burden on insurance companies.
- [By John Udovich]
The results of a recent Pew Center Poll regarding attitudes towards abortion and various forms of stem cell research could be a good sign for the stem cell industry along with small cap stem cell stocks like StemCells Inc (NASDAQ: STEM), NeoStem Inc (NASDAQ: NBS), Neuralstem, Inc (NYSEMKT: CUR),�International Stem Cell Corp (OTCMKTS: ISCO) and BioRestorative Therapies (OTCBB: BRTX). Basically, Americans think that having an abortion is a moral issue with 49% of American adults believing abortion is morally wrong, 23%�view it not as a moral issue and and 15% view it as morally acceptable. However and when Americans were asked about issues surrounding�human embryos, such as stem cell research or in vitro fertilization, as a matter of morality, their views were different.
Sunday, October 20, 2013
EUR/USD Unable To Hold A Bid After FOMC Release Deemed Hawkish
The EUR/USD was unable to continue its run higher, losing 98 pips to finish at $1.3295. The sharp declines occurred directly after the release of the latest FOMC minutes, which the many analysts deemed as more hawkish than expected.
Greg Gibbs, FX Trading Strategist at RBS provided some thoughts on the release, detailing a few of the comments which may have helped create the firm bid in the USD. "It appears that Bernanke has taken the view that the market needed a bit more guidance over the type of taper the Fed has in mind. He indicated in the press conference that if all goes to plan (famous last words) the taper would be done by mid-2014."
In conclusion, Gibbs went on to comment the statement was viewed as hawkish, most notably with the Fed lowering its unemployment outlook from 2013 through 2016. Although the Fed did also lower its inflation forecast, the statement did not seem overly concerned about the recent lull in inflation readings, with the exception of Fed member James Bullard's dovish dissent.
Analysts at Rabobank also agreed the Fed's tone seemed more upbeat then previously about the economic recovery. "He (Bernanke) sent a more hawkish signal than we and most in the market had anticipated and there was quite a sharp market reaction." In going on to discuss the market price action, Rabobank added, "U.S. Treasuries sold off on prospects for less generous liquidity from the central bank over time and on increased risks of an actual tightening in monetary policy in the next few years. The yield on 10Y U.S. Treasuries rose to 2.36% from circa 2.18." In conclusion, Rabobank noted the sharp move higher in yields seemed to help provide a firm bid to the DXY index which finished up 1.2%.
Although the FOMC meeting was the major headline of the day, Kathy Lien of BK Asset Management went on to point out a few developments in Europe which will be important to focus on in the coming days.
Eurozone PMI numbers are scheduled for release tomor! row [Thursday] and these are the most important pieces of economic data expected from the region this week. If the data surprises to the upside, speculation about negative interest rates will recede and the euro could recover some of its losses.
Lien went on to conclude if the ECB does dial down its dovish tone, the EUR is likely to see better performances against commodity currencies such as the AUD and NZD, instead of the USD.
It is important to point out that the sharply lower close did create some minor technical damage on the EUR/USD daily chart. Firstly, the candle which was formed on the daily chart can be labeled a bearish engulfing candle. Since the candle formed after a few weeks worth of sharp gains, the development is more important. Secondly, price closed below the 9 DMA ($1.3325) for the first time since May 28th. This is a short-term moving average that has acted as support/resistance in the past so will be important to monitor going forward. On a final note, the ADX (7) is now sloping slightly lower, a sign trend strength on the daily chart is deteriorating and a period of consolidation or a short-term correction may be possible in the coming days. Initial resistance now sits at $1.3325 (noted above), while first support sits at $1.3240 (support on the daily chart).
Source: EUR/USD Unable To Hold A Bid After FOMC Release Deemed HawkishTop 5 Biotech Companies For 2014
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. (More...)
Saturday, October 19, 2013
Why Rambus 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 Rambus (NASDAQ: RMBS ) have popped today by as much as 10% after the company settled a long-standing patent dispute with rival SK Hynix.
So what: The two companies have entered into a five-year patent license agreement where SK Hynix can use Rambus' memory-related patents in its semiconductor products. The agreement includes quarterly payments of $12 million to Rambus related to DRAM products.
Now what: Rambus and SK Hynix have now settled all outstanding patent claims. Rambus CEO Ron Black called it a "milestone agreement" that allows the two companies to collaborate and focus on the future. The SK Hynix settlement is the latest in a string of other licensing deals that Rambus has scored with other chip makers, although it lost a major suit to Micron last year.
Interested in more info on Rambus? Add it to your watchlist by clicking here.
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Thursday, October 17, 2013
UK AIM-Listed Charlemagne Capital Limited (CCAP) – Still No Margin of Safety
Charlemagne Capital Limited (CCAP) is an established asset management group in the UK with an exclusively emerging markets focus and bottom-up stock picking process. The business is cyclical with fortunes linked to emerging market performance. The company's strategy is to grow each category within its broad fund range: mutual funds, hedge funds, specialist funds and institutional products.
The company has been trading near its three-year lows (although current price is near 52-week high), so was worth a bit of further analysis. The current price (Oct. 17, 2013 – 14.10p) equates to about £40 million in market cap, i.e. around $56 million (accounts are all in USD so need to look at market cap in USD).
The company has a cash balance ($22 million – 39% of market cap) and no debt. This is a big plus.
The directors hold 31% of share capital. Founder CEO, Jayne Sutcliffe, holds 11% and non-executive director, James Mellon, holds around 19% (he set up Regent Pacific along with Jayne Sutcliffe – CCAP was formed out of this entity). This is another positive sign.
The company has paid dividends each year since 2004. Its policy is to pay out regular dividend to reflect the earnings and cash flow of the Group. A point to note is that in the last couple of years dividend level as been maintained even though profitability has reduced. Most of the earnings have been paid as dividends over the last five years.
The capital allocation record of management is decent – most of the earnings have been used for dividends and buybacks. Although there has been no buyback in the last three years, there was a big amount of buybacks in the previous years. Overall share numbers have remained stable since 2006 when the company started trading on AIM. Over the last five years shares have increased marginally.
At the end of 2012, outstanding options were around 20 million with average exercise price of GBP 0.007 – so option overhang was around 7% of share capital. That is quite a ! lot. Apart from the CEO, other executive directors can receive share based incentives. During 2012, employees were given 16 million share options at a zero exercise price based on continuing service – thus no performance condition was involved. Granting non-performance related options is not a good sign.
The company gets its revenues from two types of fees: management fees which are linked to the assets under management (AUM) and performance fees which can be quite volatile. Over the last five years AUM have increased by around 4% per annum from the low at the end of 2008. However, revenues have decreased by around 7% per annum. Performance fees have held up okay since 2008, but management fees have taken a big hit. Since revenues are dependent on the average AUM over the whole year, let's look at revenues from 2009 – they have grown by around 6.5% per annum in this case. Institutional clients are more sticky and stable compared to retail, but the company has not managed to increase AUM from this source substantially over the last five years.
10 Best Performing Stocks To Own For 2014
In terms of profitability, operating income has reduced by around 3% per annum from 2009 to 2012. Operating margins have decreased from around 24% in 2009 to 16.5% in 2012. The interim results for 2013 highlight further drop in operating margin to 10%.
Personnel expenses make up most of the chunk of the operating expenses as can be expected in this industry. Moreover one would expect variable bonuses linked to performance to be a significant part of remuneration. The Annual Report mentions that bonus pools will be predominantly proportionate to profits. So it is a concern that personnel expenses have increased by around 11.5% per annum even though revenue levels have decreased. This is the primary reason for the drop in operating income.
Operating cash flow has been quite volatile over the las! t five ye! ars. All of this cash flow does not come to the company's shareholders though. The reason is an employee of the Group holds a 49.9% minority interest in the shares of a group entity and has an option to acquire a further 12.6% of the shares. Major portion of the profit/operating cash flow seems to go out to minority interest holders. In 2010, 15% of net income went to minority interest – this has increased to more than 60% in 2012. After deducting this, the free cash flow (FCF) coming to company shareholders has reduced to $3.5 million in 2012.
Based on a FCF of $3.5 million, FCF yield to company equity holders is less than 7% per annum. The share option overhang has not been taken into account here. The FCF after minority interest needs to increase by at least 60% to justify the current market capitalization of $56 million to provide a FCF yield of 10%. AUM have further decreased as per the interim results of 2013, so there is no margin of safety.
Disclosure: As of this writing, I do not have any positions in Charlemagne Capital Limited (CCAP).
Disclaimer
This research was produced by M. Joshi (the "Author"). Information and opinions presented in this research have been obtained or derived from sources believed to be reliable, but the Author makes no representation as to their accuracy or completeness. The Author accepts no liability for loss arising from the use of the material presented in this report. The Author may have long or short positions in (please refer to the Disclosure above), or may buy or sell any of the securities, derivative instruments or other investments mentioned or described in this research, either as agent or as principal for their own account. This research is prepared solely for information purposes and it does not constitute an advertisement. This document is not, and must not be construed as, a solicitation or an offer to buy or sell any securities or other financial instruments in any jurisdiction. By writing this research, the Autho! r neither! provides personal recommendations to, nor receives and transmits orders from, nor executes orders for, recipients of this research. This research should neither be passed on, nor reproduced in whole or in part under any circumstances without the Author's express consent. This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation which would subject the Author to any registration or licensing requirement within such jurisdiction. The financial instruments described in this research may not be eligible for sale in all jurisdictions or to certain categories of investors.
Wednesday, October 16, 2013
Does Bank of America Support Rising Prices?
With shares of Bank of America (NYSE:BAC) trading around $14, is BAC 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 MovementBank of America is a financial institution serving individual consumers, small- and middle-market businesses, corporations, and governments with a range of banking, investing, asset management, and other financial and risk management products and services. With its banking and various non-banking subsidiaries throughout the United States and international markets, the company provides a range of banking and non-banking financial services and products through several business segments: consumer and business banking, consumer real estate services, global banking, global markets, global wealth, investment management, and other.
On Wednesday morning, Bank of America reported that net income rose to $2.5 billion in the third quarter of 2013 from $340 million in the year-ago quarter. Earnings per diluted share increased to 20 cents from 0 cents in the third quarter of 2012. ”This quarter, we saw good loan growth, improved credit quality and record deposit balances. Our customers and clients continue to do more business with us,” said Chief Executive Officer Brian Moynihan. “The economy and business climate will improve even more quickly as conditions normalize, and we are well positioned to benefit from that.”
T = Technicals on the Stock Chart Are StrongBank of America stock has been flying higher in recent quarters. The stock is currently trading sideways as it digests gains from a recent run, so it may need time to stabilize. 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, Bank of America is trading above its rising key averages, which signals neutral to bullish price action in the near-term.
Source: Thinkorswim
Taking a look at the implied volatility and implied volatility skew levels of Bank of America options may help determine if investors are bullish, neutral, or bearish.
| Implied Volatility (IV) | 30-Day IV Percentile | 90-Day IV Percentile | |
| Bank of America Options | 25.58% | 0% | 0% |
What does this mean? This means that investors or traders are buying a very minimal amount of call and put options contracts as compared to the last 30 and 90 trading days.
| Put IV Skew | Call IV Skew | |
| November Options | Flat | Average |
| December Options | Flat | Average |
As of Wednesday, there is 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 minimal amount of call and put option contracts and are leaning neutral to bullish over the next two months.
E = Earnings Are Increasing Quarter-Over-QuarterRising 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 Bank of America’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Bank of America look like and, more importantly, how did the markets like these numbers?
| 2013 Q2 | 2013 Q1 | 2012 Q4 | 2012 Q3 | |
| Earnings Growth (Y-O-Y) | 20% | 27.15% | 37.05% | 72.68% |
| Revenue Growth (Y-O-Y) | -1.52% | 17.41% | 20.31% | 29.09% |
| Earnings Reaction | 2.02%* | 2.8% | -4.72% | -4.24% |
Bank of America has seen increasing earnings and mixed revenue figures over the last four quarters. From these numbers, the markets have had conflicting feelings about Bank of America’s recent earnings announcements.
P = Excellent Relative Performance Versus Peers and SectorHow has Bank of America stock done relative to its peers – JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), and Citigroup (NYSE:C) — and sector?
| Bank of America | JPMorgan Chase | Wells Fargo | Citigroup | Sector | |
| Year-to-Date Return | 25.28% | 22.2% | 23.7% | 27.58% | 24.16% |
Bank of America has been a relative performance leader, year-to-date.
ConclusionBank of America is a bank and financial services giant that operates in a recovering financial industry, the backbone of the United States economy. A recent earnings release has investors upbeat about the company. The stock has been exploding to the upside in recent quarters and is now consolidating near highs for the year. Over the last four quarters, earnings have been rising while revenues have been mixed, which have produced conflicting feelings among investors about earnings announcements. Relative to its peers and sector, Bank of America has been a year-to-date performance leader. Look for Bank of America to OUTPERFORM.
Tuesday, October 15, 2013
Best Stocks To Watch Right Now
Stocks continued their half-stepping ways today as the Dow Jones Industrial Average (DJINDICES: ^DJI ) overcame a down opening to finish up 13 points, or 0.1%. Facebook shares stole headlines, jumping 30% after crushing sales estimates, pushing the Nasdaq up 0.8% as a result.
In the day's economic data, the initial unemployment claims report showed 343,000 new jobless filings last week, slightly ahead of estimates at 340,000. On the other hand, durable goods orders jumped 4.2% in June, well ahead of projections at 1.8%, but excluding the volatile transportation sector, growth was flat from the previous month. Commercial aircraft orders helped send the overall figure up, jumping 31.4%.
Only one Dow stock reported earnings today, 3M (NYSE: MMM ) , which finished up 0.2%. The maker of everything from office products to health-care supplies posted earnings per share of $1.71, slightly up from $1.66 a year ago, and better than the analyst estimates by $0.01. Revenue increased 2.9%, to $7.75 billion, just shy of the experts' mark at $7.77 billion. CEO Inge Thule cited "challenging conditions" in the first half of the year, but said the company performed well, adding that he expected demand to improve in the second half of the year.
Best Stocks To Watch Right Now: Advanced Holdings Ltd. (5IA.SI)
Advanced Holdings Ltd., an investment holding company, designs, manufactures, and distributes process equipment for oil and gas, petrochemicals and chemicals, power generation, and micro-electronics industries. The company operates as a contractor and consultant in supplying and installation, commissioning, testing, and maintenance of industrial equipment, machinery hardware, and software; and designs, manufactures, and supplies process equipment, instrumentation systems, and related products for oil, gas, and petrochemical plants. It is also involved in distributing and storing of mechanical product, international trading, carrying trading, trading in bonded zone, and agency services; simple processing and sample showing; and provision of consulting services and after-sales services. In addition, the company provides turnkey development of carbon sequestration projects; procures, processes, and supplies carbon credit; and offers algae bioreactor to convert green house gas to renewable biofuels and to provide funding, technical consultancy, solutions, technologies, and equipment for turnkey development of carbon sequestration and renewable energy projects. Further, it engages in the engineering, construction, start-up, commissioning, maintenance, and operation of biodiesel plants; and project financing, feasibility studies, plant leasing, and resale of used plant equipment, etc., as well as offers biofuels process technology and plant equipment. The company t primarily operates in China, Singapore, Malaysia, Korea, Japan, Thailand, the United States, and Europe. Advanced Holdings Ltd. was founded in 1993 and is based in Singapore.
Best Stocks To Watch Right Now: Electronic Arts Inc (EA)
Electronic Arts Inc., incorporated in 1982, develops, markets, publishes and distributes game software content and services that can be played by consumers on a variety of video game machines and electronic devices (platforms). Its offers products, such as video game consoles, such as the Sony PLAYSTATION 3, Microsoft Xbox 360 and Nintendo Wii; personal computers, including the Apple Macintosh (the Company refers to personal computers and the Macintosh together as PCs); mobile devices, such as the Apple iPhone and Google Android compatible phones; tablets and electronic readers, such as the Apple iPad and the Amazon Kindle, and Internet, including social networking sites, such as Facebook. In August 2011, it acquired PopCap Games Inc. (PopCap), a developer of casual games for mobile devices, tablets, PCs, and social networking sites.
The Company has created, licensed and acquired a portfolio of brands, which span a diverse range of categories, including action-adventure, casual, family, fantasy, first-person shooter, horror, science fiction, role-playing, racing, simulation, social, sports, and strategy. The Company�� portfolio of brands includes wholly owned brands, such as Battlefield, Mass Effect, Need for Speed, The Sims, Bejeweled, and Plants v. Zombies. Its portfolio also includes sports-based brands, such as Madden NFL and FIFA, and titles-based on other brands, such as Star Wars: The Old Republic. It provides a variety of online-delivered products and services, including through its Origin platform. Its packaged goods products are also available through direct online download through the Internet. The Company also offers online-delivered content and services that are add-ons or related to its packaged goods products, such as additional game content or enhancements of multiplayer services. It provides other games, content and services that are available only via electronic delivery, such as Internet-only games and game services, and games for mobile devices.
The Comp! any operates development studios (which develop products and perform other related functions) in North America, Europe, Asia and Australia. It also engages third parties to assist with the development of its games at their own development and production studios. Internationally, the Company conducts business through its international headquarters in Switzerland and has wholly owned subsidiaries worldwide, including offices in Europe, Australia, Asia and Latin America. The Company�� studios and development teams are organized around its Label structure. Each Label operates globally with dedicated game development and marketing teams. These Labels are supported by the Company�� Global Publishing Organization that is responsible for the distribution, sales, and marketing of its products, including planning, operations, and manufacturing functions.
EA Games
EA Games is home to a number of the Company�� studios and development teams, which together create a portfolio of games and related content and services marketed under the EA brand in categories, such as action-adventure, role playing, racing and first-person shooter games. The EA Games portfolio includes a number of franchises, such as Battlefield, Dead Space, Medal of Honor and Need for Speed. EA Games titles are developed primarily at the following EA studios, Criterion, DICE, EA Los Angeles, Visceral, and EA Montreal. EA Games also contracts with external game developers, to provide these developers with a variety of services, including development assistance, publishing, and distribution of their games.
EA SPORTS
EA SPORTS develops a collection of sports-based video games and related content and services marketed under the EA SPORTS brand. EA SPORTS games range from simulated sports titles with realistic graphics based on real-world sports leagues, players, events and venues to more casual games with arcade-style gameplay and graphics. The Company�� EA SPORTS franchises include FIFA, Fig! ht Night,! Madden NFL, NCAA Football, NHL Hockey, and Tiger Woods PGA Tour. EA SPORTS games are developed primarily at the Company�� EA Canada studio in Burnaby, British Columbia, and its EA Tiburon studio located in Orlando, Florida.
BioWare
BioWare develops role-playing games, focused on stories, characters and worlds to discover. BioWare�� portfolio includes the MMO role-playing game Star Wars: The Old Republic and the Mass Effect and Dragon Age franchises. BioWare operates in Texas, California, Canada and Ireland.
Maxis
Maxis (formerly EA Play) are focused on creating games and related content and services for a mass audience. Maxis products include wholly owned franchises, such as The Sims, SimCity, MySims, and Spore. During the fiscal year ended March 31, 2012 (fiscal 2012), the Company released titles in The Sims 3 franchise, and together with Playfish, The Sims Social game on Facebook. Maxis oversees internal studios and development teams located in California, Utah, Beijing, China and Guildford, England, and works with third-party developers.
PopCap
PopCap develops easy-to-learn games. PopCap games, including Bejeweled, Plants vs. Zombies, Zuma, Peggle, and Bookworm are gameplays. PopCap games are developed primarily in Seattle, Washington.
Social/Mobile Studios
The Company�� Social/Mobile studios is focused on developing interactive games for play on mobile devices and Internet platforms, including social networking sites, such as Facebook. Through EA Mobile, the Company is a global publisher of games for mobile devices. Its customers purchase and download the Company�� games through a mobile carrier�� e-commerce service and mobile application storefronts accessed directly from their mobile devices. EA Mobile develops games for mobile devices at studios located in the United States, Canada, Romania, Australia, India and Korea. Through Playfish, it offers free-to-play social games, in! cluding T! he Sims Social, Pet Society, EA Sports FIFA Superstars and Madden NFL Superstars that can be played on platforms, such as Facebook, Google, iPhone and Android. Playfish generates revenue through sales of digital content and Internet-based advertising.
The Company, through its Pogo online service, offers games, such as card, puzzle and word games on www.pogo.com, as well as on Facebook and other platforms. In addition to paid subscriptions, Pogo also generates revenue through Internet-based advertising and sales of digital content. In addition, it has a licensing agreement with Hasbro, which provides the Company with the rights to create digital games for all platforms based on most of Hasbro�� toy and game intellectual properties, including MONOPOLY, SCRABBLE (for United States and Canada), YAHTZEE (excluding the Nordic countries), NERF, and LITTLEST PET SHOP. Hasbro games are developed by its EA Mobile, Pogo and Social studios.
The Company competes with Activision Blizzard, Take-Two Interactive, THQ, Ubisoft, Disney, Capcom Mobile, DeNA, Gameloft, Glu Mobile, Gree, Rovio, Zynga, Big Fish, Nexon, Tencent and Facebook.
Advisors' Opinion:- [By Demitrios Kalogeropoulos]
How to be worst
For a preview of what might go wrong, look at what happened to Electronic Arts (NASDAQ: EA ) recently. The game publisher chose to require Internet connections for players of the latest installment of its beloved SimCity game -- and created a firestorm of customer complaints in the process. - [By Steve Symington and Alison Southwick]
Electronic Arts (NASDAQ: EA ) has announced notable third-party content deals over the past two months, including contracts with Disney (NYSE: DIS ) for developing Star Wars games,�and with Hasbro (NASDAQ: HAS ) to bring popular board games to mobile platforms.
- [By Lu Wang]
Disney and DirecTV rallied at least 3.7 percent, pacing gains among consumer stocks. Whole Foods Market Inc. and Electronic Arts (EA) Inc. jumped more than 10 percent on better-than-expected profit forecasts. Bank of America Corp. advanced 6.4 percent after settling a five-year legal battle with MBIA Inc. (MBI) over soured mortgage debt. McDonald�� Corp. slipped 2.6 percent as sales dropped in April amid slowing demand in Asia.
5 Best Financial Stocks To Watch For 2014: Caterpillar Inc.(CAT)
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.
Advisors' Opinion:- [By Dan Caplinger]
Rather than focusing on big market milestones, it's important on quiet days to look at which stocks are making more dramatic moves. Today, for instance, Caterpillar (NYSE: CAT ) is leading the Dow's gainers with a rise of 1.7%. Quietly, the construction equipment giant has seen its shares bounce 10% off their April lows, even though prospects for the overall global economy haven't begun to rebound markedly. Caterpillar has a long way to go to recover its highs from earlier in the year, but greater investor optimism about cyclical stocks could lead to a new leg for the bull market, given its reliance until now on more defensive stocks like consumer products companies.
- [By Dan Carroll]
Shares of hard-hit Caterpillar (NYSE: CAT ) have also risen sharply today, pulling in gains of 1.6%. Little news is out from the company, and today's rally is likely due to investors looking to pick up a beaten-down blue-chip stock for cheap after the shares had fallen more than 11% year to date. Caterpillar is still atop its industry, making it an attractive turnaround option for the long term when leading economies and industrial spending pick up. However, investors will have to be patient: With China's rise still stuck in a slump and Europe mired in recession, this economically reliant stock isn't likely to surge anytime soon.
Best Stocks To Watch Right Now: Wabash National Corporation(WNC)
Wabash National Corporation engages in designing, manufacturing, and marketing standard and customized truck trailers, intermodal equipment, and transportation related products in North America. It operates in three segments: Commercial Trailer Products, Diversified Products, and Retail. The Commercial Trailer Products segment manufactures truck trailers; proprietary composite products; dry van trailers; standardized sheet and post, and refrigerated trailer products; and steel and aluminum flatbed, and dropdeck trailers. This segment markets its transportation equipment under the Wabash, DuraPlate, DuraPlateHD, DuraPlate XD-35, FreightPro, ArcticLite, RoadRailer, Transcraft, Eagle, Eagle II, D-Eagle, and Benson trademarks directly to customers, as well as through independent dealers and company-owned retail branch network. The Diversified Products segment focuses on diversifying its product offerings using intellectual technology. It offers complementary products to compan y?s truck trailers and transportation equipment; AeroSkirt, an aerodynamic solution for over-the-road trailers; and customer-specific solutions to original equipment manufacturers and aftermarket customers. This segment also manufactures laminated hard wood oak floor products for the van trailer industry. The Retail segment operates 12 retail branch locations, which sell new and used trailers, aftermarket parts, and services throughout the United States. Wabash National Corporation was founded in 1985 and is headquartered in Lafayette, Indiana.
Best Stocks To Watch Right Now: Jabil Circuit Inc.(JBL)
Jabil Circuit, Inc., together with its subsidiaries, provides electronic manufacturing services and solutions worldwide. The company offers electronics and mechanical design, production, product management, and after-market services to companies in the aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, solar, storage, and telecommunications industries. Its services comprise integrated design and engineering; component selection, sourcing, and procurement; automated assembly; design and implementation of product testing; parallel global production; enclosure services; and systems assembly, direct-order fulfillment, and configure-to-order services. The company also provides set-top boxes, mobility products, and display products, as well as peripheral products, such as printers and point of sale terminals; and aftermarket services consisting of warranty and repair services. Jabil Circuit, Inc. was founded in 196 6 and is headquartered in St. Petersburg, Florida.
Advisors' Opinion:- [By Paul Ausick]
Apple Inc. (NASDAQ: AAPL) is about to be pilloried again for ��thical and legal��labor violations at the Chinese factory of one of its parts suppliers. A watchdog group called China Labor Watch reports that the Wuxi manufacturing plant of Jabil Circuit Inc. (NYSE: JBL) has failed to pay workers millions of dollars in overtime wages, demanded 100 hours of mandatory overtime pay per month, required more than 11 hours a day of standing work with no rests except a 30-minute meal break, and other violations.
- [By Alex Dumortier, CFA]
Meanwhile, BlackBerry's troubles and its decision to pull out of the consumer market are having a real impact on the relationships it has with its partners, with wireless operator T-Mobile USA already announcing it will no longer stock its devices in its stores. Meanwhile, Jabil Circuit (NYSE: JBL ) , one of BlackBerry's main contract manufacturers, said it is examining how to wind down their relationship, which represents 12% of its revenue.
Best Stocks To Watch Right Now: Lookers(LOOK.L)
Lookers plc engages in the sale, hire, and maintenance of motor vehicles and motorcycles in the United Kingdom. The company sells new and used cars, tires, oil, franchise parts, and accessories, as well as offers vehicle servicing and repair. It also engages in arranging vehicle financing and related insurance products. The company offers various brands, such as Alfa Romeo, Aston Martin, Audi, Bentley, Chevrolet, Chrysler, Citroen, Dodge, Ferrari, Fiat, Ford, Honda, Hyundai, Jaguar, Jeep, Kia, Land Rover, Lexus, Maserati, Mazda, Mercedes-Benz, Nissan, Peugeot, Renault, Saab, Seat, Skoda, Smart, Toyota, Vauxhall, Volkswagen, and Volvo, as well as BMW and Yamaha. It operates 119 motor franchise dealerships representing 33 marques in 71 sites. Lookers plc was founded in 1908 and is headquartered in Manchester, the United Kingdom.
Best Stocks To Watch Right Now: The Hanover Insurance Group Inc.(THG)
The Hanover Insurance Group, Inc., through its subsidiaries, underwrites commercial and personal property, and casualty insurance coverage in the United States. It operates in three segments: Commercial Lines, Personal Lines, and Other Property and Casualty. The Commercial Lines segment provides coverage for commercial multiple peril; commercial automobile; workers? compensation; and other commercial coverages, including specialty program business, inland marine, and bonds, as well as umbrella, general liability, fire, specialty property, and professional and management liability. The Personal Lines segment offers coverage for personal automobile, homeowners, and other personal lines, such as inland marine, umbrella, fire, personal watercraft, and earthquake. The Other Property and Casualty segment provides investment advisory services; and manages assets for unaffiliated institutions, such as insurance companies, retirement plans, and foundations. The company sells its p roducts and services through a network of independent agents. The Hanover Insurance Group, Inc. was founded in 1844 and is headquartered in Worcester, Massachusetts.
Best Stocks To Watch Right Now: Cookson Grp(CKSN.L)
Cookson Group plc, a materials science company, together with its subsidiaries, provides products, processes, and services worldwide. Its Ceramics segment engages in the supply of consumable products and systems to the steel and foundry industries, as well as specialist ceramic products to the glass and solar industries under the brand names of Vesuvius and Foseco; and supply and installation of monolithic refractory linings. This segment?s products include VISO and VAPEX products, slide-gate and tube changer systems and refractories, gas purging and temperature control devices, and mould and tundish fluxes to control, regulate, and protect the flow of steel in the enclosed continuous casting process. Its products also include castables, gunning materials, ramming mixes, pre-cast shapes, tap hole clays, bricks, and mortars; feeding systems, filters, metal treatments, metal transfer systems, crucibles, stoppers, sand binders, coatings, and molding materials to the foundry industry; and Solar Crucibles for use in the manufacture of photovoltaic panels and tempering rollers used in the glass industry. The company?s Electronics segment supplies consumable electronic assembly materials to the assemblers of printed circuit boards and the semi-conductor packaging industry; and surface treatment and electro-plating chemicals for the electronics industry, as well as for industrial and automotive applications. Its Precious Metals segment offers fabricated precious metals, primarily gold, silver, and platinum to the jewelry industry. This segment also involves in precious metal refining and recycling operations. Its products include alloy materials, semi-finished jewelry components, and finished jewelry. The company is headquartered in London, the United Kingdom.
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