Saturday, May 31, 2014

Best Defensive Stocks To Buy For 2015

Best Defensive Stocks To Buy For 2015: RBC Bearings Incorporated(ROLL)

RBC Bearings Incorporated manufactures and markets engineered precision plain, roller, and ball bearings primarily in North America, Europe, and Latin America. It operates in four segments: Plain Bearings, Roller Bearings, Ball Bearings, and Others. The Plain Bearings segment produces plain bearings with self-lubricating or metal-to-metal designs, including rod end bearings, spherical plain bearings, and journal bearings that are primarily used to rectify misalignments in various mechanical components. The Roller Bearings segment provides tapered roller bearings, needle roller bearings, and needle bearing track rollers and cam followers, which are anti-friction products that utilize cylindrical rolling elements. The Ball Bearings segment specializes in high precision aerospace, airframe control, thin section, and industrial ball bearings that utilize high precision ball elements to reduce friction in high speed applications. The Other segment consists of precision mechanic al components, which are used in various general industrial applications; and machine tool collets that are used for holding circular or rod-like pieces in a lathe or other machine. It serves construction and mining, oil and natural resource extraction, heavy truck, packaging, and semiconductor machinery; and aerospace and defense markets. The company offers its products through direct sales force and a network of industrial and aerospace distributors. RBC Bearings Incorporated is headquartered in Oxford, Connecticut.

Advisors' Opinion:
  • [By Stephen Simpson, CFA]

    This is a logical deal for SKF on multiple fronts. For starters, Kaydon will meaningfully expand the company's U.S. presence - something it could have done on its own eventually, but certainly not without spending money. With that, there is the possibility of using Kaydon's existing U.S. footprint to sell more SKF products and further trouble rivals like RBC ! Bearings (ROLL) and ITT (ITT).

  • source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/best-defensive-stocks-to-buy-for-2015.html

Friday, May 30, 2014

EMC: This Stock Can Help You Profit from Enterprise Cloud Growth

10 Best Oil Service Stocks To Watch For 2015

EMC (EMC) is one of the leading companies in data storage solutions. It also extends its hands at various other solutions such as data warehousing, business intelligent, and virtualization. It was surprised to see that some of its products like EMC Atmos, Vblock, Mozy and Syncplicity have gained enough traction in the market while the business moving to cloud of late.

Solid Performance

EMC has displayed a decent performance in the second-quarter as it revenue surged 6% to $5.61 billion year-on-year basis. Also it was good to notice that EMC's domestic revenue rose 4% to $3 billion that contributes approximately 53% of the total revenue. EMC also attained 8% growth in international revenue that came in at $2.7 billion, driven by its information infrastructure business, pivotal and VMware (VMW).

VMware is a pioneer in virtualization software and a subsidiary of EMC. EMC holds around 80% stake of VMware. VMware registered revenue growth of 11% in its latest quarter from the year ago period and posted an income of $244 million, a 28% jump. This strong growth has indeed contributed generously to the top and bottom line of EMC.

Growth Prospects

Later, a new company, Pivotal, was established as an amalgamation of various divisions and products from EMC and VMware. Pivotal's product portfolio will have Pivotal Labs, Cloud Foundry, Greenplum, Gem Fire, Cetas, Greenplum and Vfabix Suit (product of VMware). This strategic move was initiated so that EMC can concentrate on emerging market opportunities such as cloud application, security applications system and large scale data management system, which are its core business areas.

Also the investment of $105 million in Pivotal by General Electric (GE) made the stock more attractive to pick as this strategic investment will certainly boost its growth in the future and increase shareholder's value as EMC is recording steady growth in global market. Its revenue grew 12% in Asia Pacific and Latin America, while North America revenue was up by 4% and significant 6% rise was observed in the EMEA regions. Also EMC's revenue grew 18% in the BRIC nations.

Fundamentals

EMC projects total revenue of $23.5 billion for fiscal 2013 and is expecting a rise of 25.5% rise in non-GAAP operating margin. Also, Non-GAAP net income of $4 billion is expected for fiscal 2013. It expects cash flow of $6.8 billion from operating activities, and the free cash flow target is $5.5 billion.

EMC is determined to repurchase a total of $6 billion worth of shares by 2015 and this should have a positive effect on the EPS. Also Looking at the growth trajectory of EMC, the company should be able to at least match its estimates going forward. Moreover, its strategic investment in businesses such as XtremIO, ViPR and Pivotal should also help EMC in attaining its targets and increase its profitability in the coming years.

Competition

Its potential peer like NetApp (NTAP) that specializes in IT-enabled business solutions such as data security, cloud solutions, and data management systems posted weak performance in the recently declared quarter. Also its growth prospects do not look very enticing as it registered net revenue of $1.71 billion, a marginal increase of 0.8% from the previous quarter.

Also its operating expense increased 7.7% to $827.8 million from the year-ago quarter, which had an impact on its earnings that dipped 7.7% to $204.4 million. In addition to this, NetApp's operating margin also declined to 11.9% as compared to 13% in the year ago quarter.

Also, NetApp is very expensive at current levels. The company trades at a price-to-earnings multiple of almost 29x, while in comparison, EMC trades at a trailing P/E of 20. With quarterly revenue growth slowing down and earnings dropping, the valuation looks rich and investors are advised to stay away from NetApp.

Brocade Communications (BRCD) is another company that provides solutions similar to EMC, but it is a smaller player. Brocade earns 50% of its total revenue from its core service of storage area networks (SAN). However, it faced a 7% decline in revenue in the second quarter from the prior year period. This can be concerning for investors. With major players like Cisco (CSCO), Brocade faces fierce competition for its core business and the company might be in for tough times.

It looks like the company's management is aware of this and that's why they have been selling shares. Wall Tyler, a vice president at Brocade, recently sold around 97,000 shares. Given the recent revenue decline and probability of stiff competition, it is not surprising that an insider sold shares.

Conclusion

EMC's stake in VMware and the constant adoption of the cloud are expected to drive its growth in the future. Moreover, as seen above, the company is cheaper than peers such as NetApp and has a lucrative share repurchase plan in place. So, investors should consider putting their money in this stock if they are looking for a play on the cloud.

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Top 5 Defense Companies To Invest In Right Now

Top 5 Defense Companies To Invest In Right Now: Airbus Group NV (EADSY)

Airbus Group NV, known as European Aeronautic Defence and Space Company EADS NV, is a Netherlands-based company active within the aerospace and defense sector. The Company manufactures aircrafts, helicopters, commercial space launch vehicles, missiles, satellites, defense systems and defense electronics, and offers services related to these activities. The Company oprates four divisions. The Airbus division comprises the Airbus Commercial and Airbus Military segments, which develop, manufacture, market and sell commercial jet aircrafts, military transport aircrafts and special mission aircrafts, among others. The Eurocopter division develops, markets and sells civil and military helicopters. The Astrium division develops, manufactures and sells satellites, orbital infrastructures and launchers, as well as provides space-related services. The Cassidian division develops, manufactures and sells missiles systems, military combat and training aircrafts, among others. Advisors' Opinion:
  • [By Rich Smith]

    On Monday, the Department of Defense awarded 19 contracts, which addedup to just under $1.5 billion in total value. The largest award went to a private company to pay for "full line food distribution" in Okinawa. But even so, there were a few contracts worth noting, going to publicly traded companies:

  • source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-5-defense-companies-to-invest-in-right-now.html

Thursday, May 29, 2014

Top 10 Consumer Stocks To Own Right Now

Top 10 Consumer Stocks To Own Right Now: Campbell Soup Co (CPB)

Campbell Soup Company (Campbell), incorporated on November 23, 1922, together with its subsidiaries, is a manufacturer and marketer of branded convenience food products. The Company operates in five segments: U.S. Simple Meals; Global Baking and Snacking; International Simple Meals and Beverages; U.S. Beverages; and North America Foodservice. In June 2012, the Company purchased 1300 Admiral Wilson Boulevard in Camden. On August 6, 2012, the Company completed the acquisition of BF Bolthouse Holdco LLC (Bolthouse Farms). In September 2012, Vilmorin & Cie SA acquired the tomato and pepper breeding and sales business of the Company. In June 2013, Campbell Soup Co completed the acquisition of Plum Organics. In August 2013, Campbell Soup Company completed the acquisition of Kelsen Group A/S.

In the United States, Canada and Latin America, the Company's products are resold to consumers in retail food chains, mass discounters, mass merchandisers, club stores, conven ience stores, drug stores, dollar stores and other retail, commercial and non-commercial establishments. In Europe, the Company's products are resold to consumers in retail food chains, mass discounters, mass merchandisers, club stores, convenience stores and other retail, commercial and non-commercial establishments. In the Asia Pacific region, the Company's products are resold to consumers through retail food chains, convenience stores and other retail, commercial and non-commercial establishments.

U.S. Simple Meals

The U.S. Simple Meals segment aggregates the operating segments: U.S. Soup and U.S. Sauces. The U.S. Soup retail business includes the products, such as Campbell's condensed and ready-to-serve soups, and Swanson broth and stocks. The U.S. Sauces retail business includes Pregopasta sauces, Pace Mexican sauces, Campbell's canne! d gravies, pasta, and beans, and Swanson canned poultry.

Global Baking and Snacking

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The Global Baking and Snacking segment include Pepperi! dge Farm cookies, crackers, bakery and frozen products in the United States retail. It also includes Arnott's biscuits in Australia and Asia Pacific.

International Simple Meals and Beverages

The International Simple Meals and Beverages segment aggregates the simple meals and beverages operating segments outside of the United States, including Europe, the retail business in Canada, and the businesses in Asia Pacific, Latin America and China. The segment's operations include Erasco and Heisse Tasse soups in Germany,Liebig and Royco soups in France, Devos Lemmens mayonnaise and cold sauces and Campbell's and Royco soups in Belgium, and Bla Band soups and sauces in Sweden. In Canada, operations include Habitant and Campbell's soups, Prego pasta sauces, Pace Mexican sauces, V8 juices and beverages and certain Pepperidge Farm products. In Asia Pacific, operations include Campbell's soup and stock, Kimball sauces, V8 juices and beverages, Prego p asta sauce and Swanson broths.

U.S. Beverages

The U.S. Beverages segment represents the United States retail beverages business, including V8 juices and beverages, and Campbell's tomato juice.

North America Foodservice

The North America Foodservice segment represents the distribution of products, such as soup, specialty entrees, beverage products, other prepared foods and Pepperidge Farm products through food service channels in the United States and Canada.

Advisors' Opinion:
  • [By Jake L'Ecuyer]

    Campbell Soup Company (NYSE: CPB) shares tumbled 3.44 percent to $43.57 after the company reported a rise in its fiscal third-quarter earnings and cut its FY14 forecast.

  • [By WWW.DAILYFINANCE.COM]

    Justin Sullivan/Getty Images Campbell Soup (CPB), the world's l! argest so! up maker, cut its full-year sales forecast after posting weaker-than-expected quarterly sales as increased promotions failed to boost its U.S. soup division. Shares of Campbell, which also makes Prego pasta sauces and Pepperidge Farm cookies, fell 5.4 percent in premarket trading. The company said it expects sales from continuing operations to increase about 3 percent in fiscal 2014 ending July, compared with the previous forecast of a 4 to 5 percent rise. Campbell has been facing stiff competition from private-label brands and smaller rivals and has had trouble attracting younger, more health-conscious consumers to its canned soup products. The company launched eight new soups in January, including its first Latin-inspired cooking soups, and new varieties in its Healthy Request line. However, Campbell said Monday it was disappointed that its plans did not drive stronger soup sales in the third quarter ended April 27. "Despite an increase in the frequency of our promotional activity in the third quarter, we did not realize the anticipated lifts in a challenging consumer environment." Chief Executive Officer Denise Morrison said in a statement. Campbell didn't give a figure for U.S. soup sales for the quarter, but said sales "held steady" after growing 14 percent in the same quarter a year earlier. The company said it expects full-year adjusted earnings to be at the low end of its forecast of $2.53 to $2.58 a share. Analysts on average expect a profit of $2.53 a share, according to Thomson Reuters I/B/E/S. Net income attributable to Campbell rose 1.7 percent to $184 million, or 58 cents a share, in the third quarter. Excluding items, the company earned 62 cents a share. Net sales grew 0.4 percent to $1.97 billion. Analysts on average were expecting a profit of 59 cents a share on revenue of $2 billion. The company's shares had risen about 4 percent so far this year to Frida

  • [By Sue Chang]

    Campbell Soup (CPB) !  is fo! recast to post third-quarter earnings of 59 cents a share. Analysts at Deutsche Bank on Thursday lowered the stock's price target to $41 from $42 due to a tough market environment and weakness in certain categories.

  • source from Top Stocks For 2015:http://www.topstocksblog.com/top-10-consumer-stocks-to-own-right-now.html

Wednesday, May 28, 2014

Top 10 Valued Stocks To Watch For 2015

Top 10 Valued Stocks To Watch For 2015: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and i! nventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas .

Advisors' Opinion:
  • [By Monica Wolfe]

    Schlumberger NV (SLB)

    Manning & Napier Advisors' largest position is in Schlumberger where they maintain 8,882,428 shares. Their position in Schlumberger represents 3.6% of their total portfolio and 0.67% of the company's shares outstanding. During the first quarter the fund made a reduction of -3.32% by selling 305,133 shares of the company's stock. They sold these shares in the first quarter price range of $86.16 to $97.96, with an estimated quarterly price of $90.27. Since then the price per share is up approximately 13.1%. Manning & Napier's historical holding history:

  • [By David Fabian]

    Schlumberger Ltd (NYSE: SLB) recently reported a record first quarter profit, as demand for its advanced energy exploration technology continues to grow.

  • [By Holly LaFon]

    Schlumberger (SLB) was a top performer during the quarter, continuing its strong performance since the summer of 2012. Since late June 2012 (6/22) through mid-­‐ April 2014, the stock (a holding since late September 2011) is up approximately 60% -­‐ nearly double the S&P 500 Index's gain of 36%. Schlumberger continues to do what it does best – dominate their respective industry and generate industry-­‐ leading growth and cash flow generation. The Company is a leading global provider of oil services. At the risk of repeating an oil service industry cliché, "the easy oil has been found." The technological development being brought to bear to the extremes and complexities in the exploration and development of hydrocarbon energy is relentless. The Company's depth and breadth of their integrated products and services has been at the forefront of the unceasing progress of energy services for decades. Indeed, according to the Company, over the past decade, total E &P capital expenditur! es have i! ncreased by 400%, yet global oil production is up only a scant 15%. Furthermore, in just the last three years, the upstream E&P industry has spent on average $600 billion per year yielding only a net increase in global oil production coming from the shale deposits in North American. Due to the significant advancements in horizontal drilling and multistage fracking natural gas prices are generally one-­‐third of what they are in Europe or Asia. This differential has had 2 profound implications, for instance in the U.S. chemical industry. Chevron Phillips just this month broke ground on a $6 billion ethane cracker plant in Texas – the first petrochemical refinery built in the U.S. in twenty-­‐five years. Circa-­‐2014 finds the Company at the cutting edge in the continued search for unconventional oil and gas, plus in the environmentally challenging area in offshore and deepwater. The Company continues to enhance their capabiliti es, scale and integra

  • [By Teresa Rivas]

    Schlumberger (SLB) was down in Thursday afternoon trading after a mixed first quarter.

    The oilfield giant said first quarter earnings were $1.59 billion, or $1.21 a share, up from 94 cents in the year-ago period and one penny ahead of estimates. Revenue rose 6.3% to $11.24 billion, just below the $11.49 billion analysts were expecting.

    The Middle East and Asia a was the strongest region, with sales up 19%, followed by North America, with 12%. Revenue edged ahead by 0.6% in Europe and Africa, while Latin America saw a 7.7% decline.

    Stephens analyst Michael Marino reiterated an Overweight rating on the stock: "While SLB’s geographically diversified footprint will likely limit exposure to the accelerating margin trends in North America this year, global oilfield spending continues to grow at a modest pace. Overall, we continue to see slow and steady revenue growth for the Company and solid incremental margins on higher deepwater mix, overall efficiency gains and potential pricing! gains in! North America."

    FBR Capital Markets' Thomas Curran and Juan Avendano reiterated their Outperform rating on the stock, noting the company's share repurchases and reiteration of gudiance:

    Reveals several awards, confirming it claimed lion’s share of Pemex’s Mega-Tenders. In (1) Mexico, SLB officially announced that it won the largest combined award in Pemex’s recent Mega-Tender round: three multi-year IPM contracts worth, in aggregate, over $1.9B in revenues or nearly 50% of the spoils; (2) Norway, the Company inked a 5-year (plus two option periods of one year) IPM contract, of undisclosed value, with Det norske oljeselkap ASA for exploration drilling and development of the Ivar Aasen field in northern North Sea; (3) Australia, SLB completions signed a $40M contract with INPEX covering the upper and intermediate completions for its first 20 wells at the offshore Ichthys field; and (4) Brazil, SLB artificial lift won

  • source from Top Stocks For 2015:http://www.topstocksblog.com/top-10-valued-stocks-to-watch-for-2015.html

This is Now Your No. 1 Choice for Big Gains

From the Editor: Subscribers who followed Keith's most recent play on U.S. Treasuries locked in a 100% gain on Friday. But "this game is a long way from over," he says. So here's what he's recommending now. Take notes. "Home run potential" isn't a phrase Keith uses lightly...

As I'm writing this, halfway through Wednesday's session, stocks are in danger of closing in the red for a fifth straight day. And this is all you'll hear about today.

Yet bonds are telling you the real story.

In fact, at this point, they are the next best thing to the Holy Grail if you've got the right perspective and understand what's happening.

This is a big moment.

It's big for uber-investors like Bill Gross, who just experienced something brand-new for PIMCO.

And it's big for you.

So at the very least, strongly consider the first move I'm going to show you today. You don't have to buy a single bond to take advantage of its home run potential. The other two moves I'm going to share with you simply "ice the cake."

But let's go back to the 1980s for a minute, when all this payoff potential began to build...

The Reversing of a 30-Year Trend

For years, we've seen bond prices rise almost without interruption. In the process, yields, which move in the opposite direction, have plummeted to historic lows.

Bond Markets

Since the 1980s, the decline in yields has been especially steep, as you can see in this chart of the bellwether 10-year Treasury from the St. Louis Fed... lulling millions of investors into a false sense of security via ultra-low interest rates.

Then, as the old joke goes, a funny thing happened on the way to the market:

The Fed mentioned tapering for the first time earlier this spring.

Not surprisingly, yields are moving higher while the whispering in the hallways is turning into a full-blown conversation... Will the Fed start winding down stimulus sooner rather than later?

Bond Markets

The markets are acting like this is a fait accompli, but I am not so certain.

As you know, I've said that Bernanke doesn't have the guts to take his foot off the gas. More to the point, he can't risk the market throwing a full-blown "taper-tantrum."

That's why the fact that he isn't going to this year's Jackson Hole Summit is critical; my guess is that he wants to let somebody else establish leadership so that the fireworks can begin under the next Fed Chairman (or Chairwoman's) watch.

Ironically, I think the event should be more appropriately titled the "Jackson Black Hole," because anybody who goes there is sucked into an alternate reality. But we'll come back to that story...

His not being there is implicit confirmation that the transition point we've long known is coming may be sooner rather than later.

The Exit Rush Has Begun

So far, investors have yanked more than $20 billion from bond funds this month alone.

While that's down from the nearly $70 billion they took out in June, we could see more than $500 billion coming out of bond instruments by the end of the year.

In fact, in June, investors pulled nearly $10 billion out of Bill Gross' Pimco Total Return Fund (PTTRX).

That's the largest outflow from the world's biggest bond fund since Morningstar started tracking the fund's flow in 1993.

This has prompted some serious selling across the spectrum, and it's only going to accelerate.

At the same time, yields, which run in the opposite direction from prices, are rising. The 30-year is now 3.87%, while the bellwether 10-year Treasury yield is pushing 2.83% after backing off from a Monday high of 2.88%.

Here's what that means...

It's Time to Move

After an extended bond-market bull run, Bernanke's barbeque appears to be beginning. And that means the best way to play bonds for big gains is by shorting them. I think rates are going to rise no matter what the Fed does or doesn't do.

So if you're of the same thinking, here are a few moves worth making today:

1) Inverse bond funds, like the ProShares Short 20+ Year Treasury (NYSEArca:TBF) are a great choice, because they will appreciate as rates rise and bond prices fall - probably for decades. Even if you're early to the trade, this one could be a home run. Momentum is building.


2) Inverse stock funds, like the Rydex Inverse S&P 500 Fund (RYURX) make for superb hedges for the balance of your portfolio. But they're also great profit-makers during challenging market conditions. While I'm a big fan of holding these at all times as a means of hedging overall portfolio income, I believe now's a great opportunity to turn them into a more opportunistic trade. That's because support for Bernanke's bond programs is waning, which means that investors are not likely to step up with additional money for stocks... even if he continues QE. Imagine what happens if he actually cuts it back!


3) Options, for more sophisticated investors or more aggressive traders. You can accomplish the same thing with put options against the broader markets or call options on the inverse funds.

Some will think, No way... not me. Bernanke will never let go of things.

And they'll be right.

He won't.

But traders backed by an estimated $500 trillion in interest-rate related derivatives - and the promise of hefty bonuses - will.

Tuesday, May 27, 2014

Home Depot: Strong Brand, Superb Management, Great Stock

source: Wikimedia Commons

The United States is finally starting to thaw from the brutal winter, and this couldn't come soon enough for retailers. In addition, the housing market continues to strengthen, evidenced by rising home prices across the country. These tailwinds are combining to provide a great deal of support to Home Depot (NYSE: HD  ) , the biggest home-improvement chain in the U.S, as well as close rival Lowe's (NYSE: LOW  ) .

Home Depot is an amazing story. It's a company that managed to turn in a solid first quarter even in the face of adverse conditions. If you're a Foolish investor looking for a high-quality company with a strong brand and excellent management team, you should get to know Home Depot.

Source: Wikimedia Commons

Home Depot's success speaks for itself
Home Depot posted 2.9% revenue growth in the first quarter along with 2.6% same-store sales growth (same-tore sales measure sales at locations open at least one year.) Earnings per share jumped 20% year over year, reflecting the benefits of tight cost controls and an effective share-buyback program.

To illustrate, Home Depot's total operating expenses only increased by 0.5%, far less than its rate of sales growth. And, the company's diluted shares outstanding dropped by nearly 7%, thanks to the $1.2 billion spent on share repurchases in the last three months.

These actions boosted Home Depot's profits in the first quarter, and excellent performance is becoming a habit for the company. In 2013, the company racked up nearly 7% growth in same-store sales, 25% earnings growth, and increased its dividend by 21% at year-end. This was comparable to Lowe's performance last year, which produced 4.8% same-store sales growth and 26% earnings growth. Like Home Depot, Lowe's is very shareholder friends. Lowe's repurchased $3.7 billion of its own stock and paid $733 million in dividends last year. This year, the company plans to buy back $5 billion of its stock.

It's clear that the continued momentum in the housing market and the economy more broadly are lending a helping hand to home-improvement retailers. These trends should continue for the remainder of the year. To reflect this, Home Depot management expects the company to produce 4.8% sales growth and 17% earnings growth, all of which will be made possible by the company's intent to purchase $3.7 billion of its own shares over the rest of the year.

However, Home Depot's results missed Wall Street expectations, and the company took some heat for it in the financial media. Don't be lured into thinking that Home Depot is struggling.

Ignore Wall Street disappointment
After Home Depot reported earnings, most of the attention from the financial media coverage circulated around the fact that the company missed analyst estimates. Revenue missed by about $200 million, and profits came up short by a few pennies per share. But once again, it seems that disappointment over Home Depot's results is only possible with a completely unrealistic view of how the past few months shaped up.

The spring season in the United States has gotten off to an extremely slow start. This has had an undeniable negative impact on retailers. That's especially true for home-improvement retailers, which rely on spring activity for sales. Obviously, analysts should have taken their estimates down a notch or two in light of the fact that brutally cold temperatures persisted well into March and April.

Hot Japanese Companies To Buy Right Now

Home Depot Chief Executive Officer Frank Blake acknowledged the winter slowdown, saying in the earnings results that the company was affected by weather. However, he also reaffirmed his outlook for the remainder of the year and insisted the company would hit its guidance. Sales are expected to quickly recover from pent-up demand, and non-weather affected areas of the business continue to look good.

Let Home Depot improve your portfolio
The bottom line is that there's absolutely nothing wrong with Home Depot or its close competitor Lowe's; far from it. In fact, both companies are thriving right now. That's especially true for Home Depot, which wrapped up a great first quarter even with the damage done by the extremely harsh weather. This came after a strong performance last year as well.

Home Depot is growing strong, buys back billions of dollars' worth of its own stock every year, and provides investors double-digit dividend increases annually. Any disappointment from Wall Street over Home Depot is misguided. This is clearly a company with a strong brand and capable management team, and the results speak for themselves.

Take advantage of this little-known tax "loophole"
Recent tax increases have affected nearly every American taxpayer. But with the right planning, you can take steps to take control of your taxes and potentially even lower your tax bill. In our brand-new special report "The IRS Is Daring You to Make This Investment Now!," you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.

 

Monday, May 26, 2014

Finally for rent: bridesmaid dresses

Future bridesmaids of the United States of America, you do not know how good you have it. The most distasteful of your long-endured duties may be nearing its end.

No, you'll still have to sweat bullets over heartfelt toasts and chase your bride's deadbeat college bestie down after she fails to pay her fair share of the bachelorette party tab. But chin up: the days of dropping hundreds on a pastel pink dress you'll never wear again are as good as over thanks to a growing number of options for renting exactly what you need for the big day – and not a day more.

More from OZY.com:

Wedding registry done right

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Having a happy marriage without kids

"Let's be honest, women really don't wear bridesmaids dresses again," says Kelsey Doorey, whose ecommerce company, Vow to Be Chic, launched last year and rents $500 designer bridesmaid's dresses for as little as $95.

Brides usually kick off the process by green-lighting choices for 'maids, who in turn browse online for dresses by designers such as LulaKate and Jim Hjelm and submit three standard measurements (bust, waist, hips). An at-home try-on feature means bridesmaids may test-run two sizes months in advance. The chosen dress arrives in time for the wedding — and, best of all, gets shipped back to where it came from when it's over.

Little Borrowed Dress, which announced a $1.25 million round of seed funding in February offers a similar service. With rentals starting at $50, the company has a collection custom-designed by founder Corie Hardee. Made in New York, there are 12 crinkle chiffon styles in 18 colors that can be mixed and matched. Bridesmaids receive their dress in two sizes two weeks before the wedding, along with a pre-paid envelope for returns.

As for icing, you'll find that on Adorn a bride can walk the aisle in a $27,000 diamond necklace for a $270 rental fee or ask her bridesmaids to rent $145 Swarovski crystal headbands for $45.

It's hardly a gi! rls-only affair. While renting a tux is nothing new for guys, startup The Black Tux aims to improve the Men's Wearhouse experience by offering high-end suits and tuxedos for $95 alongside borrowed accoutrements like shirts, vests, cuff links and shoes – that start at $15. "No more driving to a drab shop in a strip mall, or dealing with pushy salesmen," the site declares. It's been so popular, inventory is currently booked through July 1.

Fear not, more options await from just-launched NextSuit, which sends men's suits by monthly subscription. Wear one or two, for up to 30 days, then send your stash back and wait for the next to arrive. It's geared toward young fashion-inept professionals, but offers an equally elegant solution for guys who don't want to show up at wedding-after-wedding in the same tired duds.

"There are all these options now that are shared economy, green and ecofriendly," says Vow to Be Chic's Doorey.

Not bad things to be wed to.

Ozy.com is a USA TODAY content partner providing general news, commentary and coverage from around the Web. Its content is produced independently of USA TODAY.

Friday, May 23, 2014

Top 5 Restaurant Stocks For 2015

Top 5 Restaurant Stocks For 2015: BAB Inc (BABB)

BAB, Inc., incorporated on July 12, 2000, franchises and licenses bagel and muffin retail units under the Big Apple Bagel (BAB) and My Favorite Muffin (MFM) trade names. At November 30, 2012, the Company had 100 franchise units and 6 licensed units in operation in 24 states. The Company additionally derives income from the sale of its trademark bagels, muffins and coffee through nontraditional channels of distribution including under licensing agreements with Kohr Bros. Frozen Custard, Kaleidoscoops, Green Beans Coffee, Sodexo and through direct home delivery of specialty muffin gift baskets and coffee. The Company has two wholly owned subsidiaries: BAB Systems, Inc. (Systems) and BAB Operations, Inc. (Operations). At November 30, 2012, the Company had 100 franchise units and six licensed units in operation in 24 states.

The Company additionally derives income from the sale of its trademark bagels, muffins and coffee through nontraditional channels of distribu tion including under licensing agreements with Kohr Bros. Frozen Custard, Kaleidoscoops, Green Beans Coffee, Sodexo and through direct home delivery of specialty muffin gift baskets and coffee. The BAB franchised brand consists of units operating as Big Apple Bagels, featuring daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches and other related products. Licensed BAB units serve the Company's par-baked frozen bagel and related products baked daily. BAB units are primarily concentrated in the Midwest and Western United States. The MFM brand consists of units operating as My Favorite Muffin, featuring a variety of freshly baked muffins, coffees and related products, and units operating as My Favorite Muffin and Bagel Cafe, featuring these products as well as a variety of specialty bagel sandwiches and related products.

The Companys BAB offering franchises in all 50 states, its initial development focus is targeted for the Mid ! west, specifically Illinois, Michigan, Wisconsin and Ohio. A! s part of its introductory development plan, BAB will be donating 10% of the initial franchise fee from its 50 SweetDuet units to the Cystic Fibrosis Foundation, of which BAB is a corporate sponsor. SweetDuet, as its name implies, is a fusion concept, pairing self-serve frozen yogurt with BAB's exclusive line of My Favorite Muffin gourmet muffins, broadening the shop's offering and therefore differentiating itself from the numerous frozen yogurt outlets already populating the market. SweetDuet shops include BAB's Brewster's Coffee and a streamlined breakfast menu. The concept is designed to work in 1600 square feet of space.

BAB franchised stores daily bake a variety of fresh bagels and offer up to 11 varieties of cream cheese spreads. Stores also offer a variety of breakfast and lunch bagel sandwiches, salads, soups, various dessert items, fruit smoothies, gourmet coffees and other beverages. A typical BAB store is in an area with a mix of both residential and commercial properties and ranges from 1,500 to 2,000 square feet. The Company's current store design is approximately 1,800 square feet, with seating capacity for 20 to 30 persons, and includes approximately 750 square feet devoted to production and baking. A satellite store is typically smaller than a production store, averaging 800 to 1,200 square feet. Although franchise stores may vary in size from other franchise stores, store layout is generally consistent.

MFM franchised stores daily bake 20 to 25 varieties of muffins from over 250 recipes, plus a variety of bagels. They also serve gourmet coffees, beverages and, at My Favorite Muffin and Bagel Cafe locations, a variety of bagel sandwiches and related products. The typical MFM store design is approximately 1,800 square feet, with seating capacity for 20 to 30 persons.The Company advertises its franchising opportunities in directories, newspapers and the Internet.

The Company competes w! ith E in! stein Noah Restaurant Group, Panera Bread Company and Brue! gger's Ba! gel Bakery.

Advisors' Opinion:
  • [By CRWE]

    Today, BABB remains (0.00%) +0.000 at $.800 thus far (ref. google finance July 11, 2013).

    For the quarter ended May 31, 2013, BAB had revenues of $658,000 and net income of $125,000, or $0.02 per share, versus revenues of $826,000 and net income of $267,000, or $0.04 per share, for the same quarter last year. For the quarter ended May 31, 2012, the Company received a $171,000 payment for the buyout of the Franchise Agreement from its Minot, ND franchisee so the franchisee could pursue its other business interests associated with the local energy boom. In that acceptance by the Company of the voluntary buyout is unique, no such transaction occurred nor was such income earned in the quarter ended May 31, 2013.

  • source from USA Best Stocks:http://www.usabeststocks.com/top-5-restaurant-stocks-for-2015.html

Thursday, May 22, 2014

Hot Low Price Stocks To Watch Right Now

The following video is from Thursday's Investor Beat, in which host Chris Hill and analysts Andy Cross and Matt Koppenheffer dissect the hardest-hitting investing stories of the day.

Shares of Costco (NASDAQ: COST  ) hit an all-time high on Thursday, after the retailer reported a 19% increase in third-quarter profits. Costco racked up strong sales in both its domestic and international stores. What's behind Costco's success? Will the retailer continue to be a big hit with investors? In this installment of Investor Beat, Andy and Matt discuss the future of Costco.

Costco's low prices haven't just benefited customers -- shares have walloped the market, returning 11,000% over the past two decades. However, with prices at all-time highs, is the ride over for Costco investors? To answer that and more, The Motley Fool's compiled a premium research report with in-depth analysis on Costco.�Simply click here now to gain instant access to this valuable investor's resource.

Hot Low Price Stocks To Watch Right Now: Petrosonic Energy Inc (PSON)

Petrosonic Energy, Inc, incorporated on June 11, 2008, is a development-stage company. The Company focused on the treatment and upgrading of heavy oil by sonicated solvent de-asphalting. On July 27, 2012, the Company completed the acquisition of 60% ownership in Petrosonic Albania, SHA. from Sonoro.

The Company�� core technology is an industrial scale sonic reactor that transfers sonic energy on an industrial scale to physical, chemical or biological processes. As of December 31, 2012, the Company had not generated any revenue.

Advisors' Opinion:
  • [By Inyoung Hwang]

    Pearson (PSON) jumped 6.2 percent to 1,329 pence, the highest price since May 2001. The media and education company said first-half revenue climbed 7 percent to 2.76 billion pounds ($4.3 billion), surpassing the 2.69 billion-pound average prediction of analysts. Profit fell 26 percent as the company invested in new products.

Hot Low Price Stocks To Watch Right Now: Sky Deutschland AG (SKYD)

Sky Deutschland AG is a Germany-based holding company, which operates a subscription television network in Germany and Austria. The Company manages television brands, including Sky Welt and Sky Welt Extra, as well as offers packages Film, Sport, Fussball Bundesliga (Germany football league), and HD (High Definition television), as well as pay-per-view service Sky Select and Sky Go. Furthermore, the Company offers Sky Hotel & Bars service, which provides the Company's services in public houses and bars. The Company offers approximately 70 television channels of various genres. Sky Select package enables watching selected movies at the specific time. Sky Go offers content on mobile devices, Internet and simultaneously on different television sets. The Company is also engaged in the purchase, sale and distribution of rights to film, series and television productions, the acquisition, sale and distribution of broadcasting rights for public events, among others. Advisors' Opinion:
  • [By Inyoung Hwang]

    Sky Deutschland AG (SKYD) surged 5 percent to 7.55 euros, the highest price since September 2008. The pay-television said third-quarter ebitda climbed 19 percent to 29.2 million euros. Revenue jumped 19 percent from a year earlier to 392.7 million, topping analysts��estimates.

Top US Companies To Buy Right Now: St. Jude Medical Inc.(STJ)

St. Jude Medical, Inc. develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide. It operates in four segments: Cardiac Rhythm Management, Cardiovascular, Atrial Fibrillation, and Neuromodulation. The Cardiac Rhythm Management segment offers products for cardiac arrhythmias, or irregular heart beats. Its products include tachycardia implantable cardioverter defibrillator systems to provide therapy to patients suffering from lethal heart conditions, such as sudden cardiac arrest; cardiac resynchronization therapy devices to treat heart failure patients; pacemakers to help people whose hearts beat too slowly or who suffer from other cardiac arrhythmias; and leads, which connect devices to the heart and carry the electrical impulses to the heart and information from the heart to the device. The Cardiovascular segment offers mechanical and tissue replacement heart valves, as well as heart valve repair products. It also pr ovides disposable interventional devices, including vascular closure devices, compression assist devices, percutaneous catheter introducers, diagnostic guidewires, and temporary bipolar pacing catheters, as well as diagnostic coronary imaging technology. The Atrial Fibrillation segment offers a system of products for access, diagnosis, visualization, and ablation that assist physicians in diagnosing and treating various irregular heart rhythms used in the electrophysiology lab and cardiac surgery. It provides electrophysiology introducers and catheters, cardiac mapping, navigation and recording systems, and ablation systems. The Neuromodulation segment offers a range of neurostimulation systems, such as rechargeable implantable pulse generators, primary cell implantable pulse generators, and radio frequency powered systems. St. Jude Medical markets its products through a direct sales force and independent distributors. The company was founded in 1976 and is headquartered in St. Paul, Minnesota.

Advisors' Opinion:
  • [By Dan Carroll]

    Why is this important? Medtronic's battling with Edwards Lifesciences's (NYSE: EW  ) Sapien heart valve for market share in Europe, and upstarts Boston Scientific (NYSE: BSX  ) and St. Jude Medical (NYSE: STJ  ) are looking to punch into the European industry with their Lotus and Portico valves, respectively. Medtronic's valve-in-valve approval gives the company a leg up on its competition, but is it enough to entrench this firm as a leader in the industry? Motley Fool contributor Dan Carroll and health-care analyst Max Macaluso discuss what you need to know below.

  • [By Monica Gerson]

    St. Jude Medical (NYSE: STJ) is projected to report its Q3 earnings at $0.89 per share oor $1.32 billion.

    The Bank of New York Mellon (NYSE: BK) is expected to report its Q3 earnings at $0.58 per share on revenue of $3.75 billion.

  • [By Peter Stephens]

    Still, guidance does seem to matter, as seen in the recent jump of St. Jude Medical's (NYSE: STJ  ) share price, which recently went from $66 to $68 in the space of a few hours.

  • [By Sean Williams]

    Finally, implantable cardiovascular device maker St. Jude Medical (NYSE: STJ  ) jumped 5.2% after reporting better-than-expected second-quarter results. Although second-quarter revenue fell by less than 1%, to $1.4 billion, from the year-ago period, it was enough to surpass the $1.36 billion analysts expected. Furthermore, St. Jude forecast EPS for the full-year of $3.70-$3.73, as compared to the Street's expectation of just $3.68. While I do see the benefits of owning a company like St. Jude as baby boomers age, I remain a bit concerned about the affect the medical device excise tax and Obamacare as a whole may have on a company like St. Jude in the near term.

Hot Low Price Stocks To Watch Right Now: Adecco SA (ADEN)

Adecco SA is a Switzerland-based holding company and provider of human resource services, including temporary staffing, outsourcing, permanent placement, outsourcing, outplacement and career management, training and consulting. The Company divides its activities into two main sectors: General Staffing and Professional Staffing. The General Staffing sector, which is the Company's prime segment, is divided into two business lines: Adecco Office, which includes Adecco Office and Office Angels brands, and Adecco Industrial, including Adecco, Adecco Industrial and Tuja brands. The Professional Staffing sector is divided into four business lines: Information Technology, including Modis and Computer People brands; Engineering & Technical, including Adecco Engineering & Technical, Entegee and euro engineering brands; Finance & Legal, including Badenoch & Clark and Accounting Principals brands, and Medical & Science, including Soliant and Adecco Medical brands. Advisors' Opinion:
  • [By Corinne Gretler]

    ��decco fulfilled expectations on all levels,��Patrick Hasenboehler, an analyst at J. Safra Sarasin in Zurich, wrote in a report to clients. ��he outlook statement is quite promising. Adecco (ADEN)�� strategy of focusing on profitability will continue to pay off.��

Hot Low Price Stocks To Watch Right Now: Gran Tierra Energy Inc (GTE)

Gran Tierra Energy Inc. (Gran Tierra) is an independent international energy company engaged in oil and gas acquisition, exploration, development and production. Gran Tierra owns oil and gas properties in Colombia, Argentina, Peru and Brazil. During the year ended December 31, 2011, the Company focused on development of producing fields and generation of exploration prospects in Colombia, including the acquisition of three blocks in the Petrolifera acquisition and the acquisition of a working interest in the Llanos 22 Block. It delivers its oil to Ecopetrol S.A. (Ecopetrol) through its transportation facilities, which include pipelines, gathering systems and trucking. On March 18, 2011, the Company acquired of all the issued and outstanding common shares and warrants of Petrolifera Petroleum Limited (Petrolifera). Advisors' Opinion:
  • [By Caiman Valores]

    The volume of Whitecap's proved and probable reserves also compares favorably to many of the company's peers, as shown by the chart below being higher than similarly sized Canadian peers Gran Tierra Energy (GTE) and Petrominerales (PMGLF.PK).

  • [By Richard Moroney]

    Gran Tierra Energy (GTE) ranks among the very best stocks in Quadrix. Shares earn the maximum Overall score of 100, ranking them Number One among the 165 energy exploration stocks in our research universe.

  • [By Richard Moroney]

    Based in Canada, Gran Tierra Energy (GTE) explores for oil and gas in Colombia, Argentina, Peru, and Brazil. In August, management raised its full-year production guidance, with the midpoint implying 27% growth.

Wednesday, May 21, 2014

Top Long Term Stocks To Watch For 2015

The following video is from Friday's Investor Beat,� in which host Chris Hill, and analysts Ron Gross and Charly Travers dissect the hardest-hitting investing stories of the day.

The Dow Index rose more than 4% in May, fueled, in part, by a booming housing market. In this installment of Investor Beat, Motley Fool analysts Ron Gross and Charly Travers examine what's driving the market, and whether or not we can finally forget about the old adage of "Sell in May." Also, a look at four stocks making big moves on the market today, and two stocks our analysts are watching this week that you should be watching, too.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of.�Click here now�to keep reading.

Top Long Term Stocks To Watch For 2015: Kate Spade & Co (KATE)

Kate Spade & Co, formerly Fifth & Pacific Companies Inc, incorporated in January 1976, designs and markets a portfolio of retail-based, premium brands, including JUICY COUTURE, KATE SPADE and LUCKY BRAND. The Company also has a private brand jewelry design and development division, which markets brands through department stores and serves J.C. Penney Corporation, Inc. (JCPenney), through exclusive supplier agreements for the LIZ CLAIBORNE and MONET jewelry lines and Kohl's Corporation (Kohl's) through an exclusive supplier agreement for DANA BUCHMAN jewelry. It also has licenses for the LIZ CLAIBORNE NEW YORK brand, available at QVC and LIZWEAR, which is distributed through the club store channel. It maintains an 18.75% stake in MEXX, a European and Canadian apparel and accessories retail-based brand. As of December 31, 2011, the Company operated a total of 307 specialty retail stores under various Company trademarks, consisting of 285 retail stores within the United States and 22 retail stores outside of the United States (primarily in Europe and Canada). The Company operates in four segments: JUICY COUTURE segment, KATE SPADE segment, LUCKY BRAND segment, and Adelington Design Group & Other segment. In August 2013, Granite Real Estate Investment Trust closed its acquisition of a 600,000 square foot logistics-distribution facility in West Chester (Cincinnati), Ohio from the Company. In February 2014, the Company completed the sale of Lucky Brand Dungarees Inc.

JUICY COUTURE segment consists of the specialty retail, outlet, concession, wholesale apparel, wholesale non-apparel (including accessories, jewelry and handbags), e-commerce and licensing operations of its JUICY COUTURE brand. KATE SPADE segment consists of the specialty retail, outlet, wholesale apparel, wholesale non-apparel, e-commerce and licensing operations of its KATE SPADE and JACK SPADE brands. LUCKY BRAND segment consists of the specialty retail, outlet, wholesale apparel, wholesale non-apparel, e-commerce and licensing ! operations of its LUCKY BRAND. Adelington Design Group & Other segment consists of exclusive arrangements to supply jewelry for the DANA BUCHMAN, LIZ CLAIBORNE and MONET brands; the wholesale non-apparel operations of the TRIFARI brand and licensed KENSIE brand; the wholesale apparel and wholesale non-apparel operations of the licensed LIZWEAR brand and other brands, and the licensed LIZ CLAIBORNE NEW YORK brand.

JUICY COUTURE

The Company�� JUICY COUTURE brand offers luxurious, casual and fun women's and girl's apparel, as well as accessories and jewelry under various JUICY COUTURE trademarks. JUICY COUTURE products are sold through wholly owned specialty retail and outlet stores, select upscale specialty retail stores and department stores throughout the United States, through a network of distributors and owned and licensed retail stores in Asia, Canada, Europe, South America and the Middle East, as well as through its JUICY COUTURE e-commerce Website. In addition, JUICY COUTURE has existing licensing agreements for fragrances, footwear, optics, watches, swimwear, electronics cases and baby products.

KATE SPADE

The Company�� KATE SPADE brand offers fashion products (accessories, apparel and jewelry) for women and men under the KATE SPADE and JACK SPADE respectively. These products are sold primarily in the United States through wholly owned specialty retail and outlet stores, select specialty retail and upscale department stores, its operations in Brazil and the United Kingdom and through its KATE SPADE e-commerce Website, as well as through joint ventures in Japan and China and through a network of distributors in Asia. KATE SPADE's product line includes handbags, small leather goods, fashion accessories, jewelry and apparel. In addition, KATE SPADE has licensing agreements for footwear, optics, fragrances, tabletop products, legwear, electronics cases, bedding and stationery. JACK SPADE products include briefcases, travel bags, small leather go! ods and a! pparel.

LUCKY BRAND

The Company�� LUCKY BRAND offers an expanded assortment of men's and women's denim, woven and knit tops, dresses and sweaters, graphic tees, as well as accessories and jewelry, under various LUCKY BRAND. LUCKY BRAND products are available for sale at wholly owned specialty retail and outlet stores in the United States and Canada, select department and specialty stores and through the LUCKY BRAND e-commerce Website. LUCKY BRAND also has licensing agreements for fragrances, footwear, swimwear, eyewear and electronic cases.

Adelington Design Group & Other

The operations within the Company Adelington Design Group & Other segment consist of exclusive supplier arrangements to provide JCPenney with LIZ CLAIBORNE and MONET branded jewelry and Kohl's with DANA BUCHMAN-branded jewelry for two years; a license to produce and sell jewelry under the KENSIE brand name; a royalty free license for the LIZ CLAIBORNE NEW YORK brand; LIZWEAR, women's apparel available through the club store channel, and TRIFARI, a signature jewelry brand for women sold in mid-tier department stores.

The Company competes with Marc by Marc Jacobs, JCrew, Michael Kors, Pink, Coach, Diane von Furstenberg, Diesel, Guess, True Religion, 7 for all Mankind, Abercrombie & Fitch, and Tory Burch.

Advisors' Opinion:
  • [By Sue Chang]

    Kate Spade & Co. (KATE) �is expected to post a loss of 4 cents a share in the first quarter.

  • [By Laura Brodbeck]

    Wednesday

    Earnings Expected: Cisco Systems (NASDAQ: CSCO), Macy�� (NYSE: M), Sony (NYSE: SNE), Kate Spade (NYSE: KATE) Economic Releases Expected: �Japanese GDP, US PPI, eurozone industrial production, British unemployment rate

    Thursday

  • [By Matt Egan]

    Shares of BP (BP) nudged over 2% higher after the oil and gas firm hiked its dividend. But Coach (COH) dropped 9% after the luxury handbag company reported weaker sales, even as it beat on profits. One trader said that Coach continues to face pressure from rivals Michael Kors (KORS) and Kate Spade (KATE).

Top Long Term Stocks To Watch For 2015: Atwood Oceanics Inc. (ATW)

Atwood Oceanics, Inc., together with its subsidiaries, engages in offshore drilling, and the completion of exploratory and developmental oil and gas wells. The company owns semisubmersible rigs, semisubmersible tender assist rigs, jack-up drilling rigs, and submersible drilling rigs. As of November 22, 2010, it operated nine mobile offshore drilling units located in offshore southeast Asia, offshore Africa, offshore Australia, offshore South America, and the Mediterranean Sea. The company was founded in 1968 and is headquartered in Houston, Texas.

Advisors' Opinion:
  • [By Ben Levisohn]

    We do not see an immediate inflection in group sentiment but see an opportunity in getting paid to wait for a market recovery. Our favorite yield plays include [Seadrill, Seadrill Partners, and North Atlantic Drilling.] Meanwhile, we would stick to premium asset exposure ([Atwood Oceanics (ATW), Ensco (ESV), Pacific Drilling (PACD]) over lower- end fleets ([Diamond Offshore Drilling (DO), Noble (NE), Transocean (RIG)]).

  • [By Ben Levisohn]

    “There will be blood,” one analyst noted this morning about Hornbeck Offshore Services (HOS) –but his observation could apply to just about the entire offshore-services sector, as Atwood Oceanics (ATW), Diamond Offshore (DO) and Ensco (ESV) tumble.

  • [By Ben Levisohn]

    See, the offshore drillers have been reporting earnings results, and really, they haven’t been that bad. Diamond Offshore beat by 15 cents yesterday, Atwood Oceanics (ATW) beat by 12 cents this week, and in January�Noble�(NE) reported results in line with analyst forecasts.

5 Best Safest Stocks To Buy Right Now: Equity Residential (EQR)

Equity Residential (EQR) is a real estate investment trust (REIT). The Company is focused on the acquisition, development and management of multi-family residential properties, which includes the generation of rental and other related income through the leasing of apartment units to residents, in United States. ERP Operating Limited Partnership (or Operating Partnership), which is an Illinois limited partnership, conducts the multifamily residential property business of EQR. All of the Company's property ownership, development and related business operations are conducted through the Operating Partnership. The Operating Partnership holds all of the assets of the Company, including the Company's ownership interests in its joint ventures. As of December 31, 2011, the Company, directly or indirectly through investments in title holding entities, owned all or a portion of 427 properties located in 15 states and the District of Columbia consisting of 121,974 apartment units. In December 2012, it acquired four multifamily properties totaling 1,134 units.

The Company is structured as an umbrella partnership REIT (UPREIT). EQR is the general partner of, and, as of December 31, 2011, owned an approximate 95.7% ownership interest in ERPOP. The remaining 4.3% interest is owned by limited partners. As of December 31, 2012, the Company�� wholly owned properties included 404 properties and 113,157 apartment units. Its consolidated partially owned properties include 21 properties and 3,916 apartment units. The Company�� military housing includes two properties and 4,901 apartment units. As of December 31, 2011, the Company�� properties had an average occupancy of approximately 94.2% (94.7% on a same store basis).

During the year ended December 31, 2011, EQR acquired apartment properties consisting of 20 consolidated properties and 6,103 apartment units and acquired five land parcels; acquired one vacant land parcel in New York City in a joint venture with Toll Brothers, and acquired o! ne unoccupied property in the San Francisco Bay Area consisting of 95 apartment units. During 2011, it also acquired a 97,000-square foot commercial building adjacent to its Harbor Steps apartment property in downtown Seattle, and sold consolidated apartment properties consisting of 47 properties and 14,345 apartment units. Subsequent to 2011, the Company acquired two land parcels, and sold one property consisting of 704 apartment units.

Advisors' Opinion:
  • [By Jim Powell]

    Steve Halpern: Another real estate position that you own is Equity Residential (EQR), which is a real estate investment trust. What's your outlook for that?

  • [By gurujx]

    Equity Residential (EQR) Reached the 3-year Low of $50.83

    The prices of Equity Residential (EQR) shares have declined to close to the 3-year low of $50.83, which is 26.3% off the 3-year high of $65.72.

Top Long Term Stocks To Watch For 2015: Warren Resources Inc.(WRES)

Warren Resources, Inc., an independent energy company, engages in the exploration, development, and production of onshore crude oil and gas reserves in the United States. It primarily explores for oil reserves in the Wilmington field in California; and natural gas in the Washakie Basin in Wyoming. The company was founded in 1990 and is headquartered in New York, New York.

Advisors' Opinion:
  • [By Rich Smith]

    New York City-based Warren Resources (NASDAQ: WRES  ) has a new CFO.

    On Monday, the independent oil and gas company announced that it has promoted current Chief Financial Officer Timothy A. Larkin to the position of executive vice president for mergers�and acquisitions, after 18 years' service in the former capacity. Taking his place will be Corporate Controller Stewart P. Skelly, now promoted to the CFO's post.

Top Long Term Stocks To Watch For 2015: Mears Group PLC (MER)

Mears Group PLC (Mears Group) is a holding company. The principal activities of the Company are the provision of a range of outsourced services to the public and private sectors. The Company operated in three business segments: social housing, which provides a full repair and maintenance service to local authorities and other registered social housing landlords in the United Kingdom; domiciliary care, which provides personal care services to people in their own homes and mechanical and electrical (M&E), which consists of provision of design and build M&E services. The Company�� subsidiaries include Mears Limited, Haydon Mechanical & Electrical Limited, Scion Technical Services Limited, Scion Estates Limited, Jackson Lloyd Limited, Morrison Facilities Services Limited, Morrison Facilities Services Limited, Manchester Working Limited and Mears Home Improvements Limited. Effective August 13, 2013, Mears Group PLC acquired a 50% interest in Just Call 24/7 (UK) Ltd. Advisors' Opinion:
  • [By John Heinzl]

    If you're uncomfortable picking individual preferred shares, a diversified exchange-traded fund, such as CPD can be a good option. The fund, which has about $1.4-billion under management, holds more than 200 preferred shares, with banks and insurance companies accounting for more than half of the assets. The fund has a management expense ratio (MER) of 0.5%.

Top Long Term Stocks To Watch For 2015: Saks Incorporated(SKS)

Saks Incorporated operates retail stores in the United States. Its stores offer an assortment of fashion apparel, shoes, accessories, jewelry, cosmetics, and gifts. The company operates stores under the brand name of Saks Fifth Avenue (SFA) that are principally free-standing stores in shopping destinations or anchor stores in upscale regional malls. It also operates Saks Fifth Avenue OFF 5TH (OFF 5TH) stores, which are primarily located in upscale mixed-use and off-price centers. As of January 28, 2012, the company operated 46 SFA stores; and 60 OFF 5TH stores. Saks Incorporated also sells its products online at saks.com, as well as through catalogs. The company was founded in 1919 and is headquartered in New York, New York.

Advisors' Opinion:
  • [By Howard Gold]

    The only retail stocks he likes now are high-end emporia like Saks (SKS), which has agreed to a buyout from Hudson's Bay, and off-price retailer Ross Stores (ROST), whose stock has risen 700% from its lows.

  • [By Andrew Marder]

    Earlier this week, the New York Post reported that high-end retailer Saks (NYSE: SKS  ) had brought in Goldman Sachs to explore a possible sale. The company also reported its first-quarter results, and is looking fairly strong. Comparable sales grew, and earnings per share�hit analyst expectations. The combination of quarterly results and sale rumors conspired to push the stock up 11% yesterday, and overnight it rose another 18%. Is this the right time for Saks to sell, and if so, what should investors be on the lookout for?

  • [By Rich Duprey]

    The own of upscale retailer Lord & Taylor is adding another luxury nameplate to its portfolio. Canadian shop Hudson's Bay will buy Saks (NYSE: SKS  ) , the two retailers jointly announced, in a deal valued at about $2.9 billion, including debt.

Top Long Term Stocks To Watch For 2015: LMP Real Estate Income Fund Inc (RIT)

LMP Real Estate Income Fund Inc. (the Fund) is a non-diversified, closed-end management investment company. The Fund�� primary investment objective is to provide high current income. Its secondary investment objective is capital appreciation. Legg Mason Partners Fund Advisor, LLC (LMPFA) is the Fund�� investment manager and AEW Management and Advisors, L.P. (AEW) is the Fund�� subadviser. LMPFA is a wholly owned subsidiary of Legg Mason, Inc.

The Fund invests in securities related to the real estate industry. Its portfolio includes common stocks, preferred stocks and short-term investments. The Fund invests in sectors, such as office, healthcare, diversified, apartments, industrial, shopping centers, home financing, lodging/resorts, regional malls and specialty.

Advisors' Opinion:
  • [By Joe Eqcome]

    Actionable Items:

    Highest Positive Spread: Nuveen Mortgage Opportunity Term Fund (JLS)Focus Stock: LMP Real Estate Income Fund (RIT)Last Week's Focus Stock: ASA Gold and Precious Metals (ASA)

    ECB cuts its rates: The European Central Bank (ECB) will cut its benchmark rate a quarter-of-a-point to 0.5%.

  • [By GURUFOCUS]

    Special Purpose Funds- Eaton Vance Tax-Adv. Global Dividend Oppor. Fund (ETO) | Yield: 7.3%
    - The Gabelli Global Utility & Income Trust (GLU) | Yield: 6.2%
    - Pimco Global Stocksplus Income Fund (PGP) | Yield: 9.5%
    - LMP Real Estate Income Fund Inc. (RIT) | Yield: 7.0%

Tuesday, May 20, 2014

Akamai Technologies, Inc. (AKAM): Making Short Work of $65?

Shares of Akamai Technologies, Inc. (NASDAQ:AKAM) are outperforming on a day when the broader market is struggling to get above water. AKAM is up more than 2% as we type thanks to an upgrade from Pacific Crest Securities.

Analyst, Chad Bartley upgraded the media delivery solutions company to an "Outperform" from "Sector Perform" rating and attached a $65 price-target.

Akamai provides content delivery and cloud infrastructure services for the delivery of content and applications over the Internet. The Company's solutions range from delivery of conventional content on Websites, to tools that support the delivery and operation of cloud-based applications, to live and on-demand streaming video capabilities all designed to help its customers interact with people accessing the Internet from myriad devices and locations around the world.

[Related -Akamai Technologies, Inc. (NASDAQ:AKAM): Mark Down These Insider Buys]

Bartley cites two main reasons for his call, "The two primary factors for the change in our opinion are: 1) the strong acceleration in media traffic that we have seen year-to-date, including 60% in the first quarter, high 60% in April and low 70% in May; and 2) strong first-half revenue performance despite lower pricing with the company's largest customer, which makes us less concerned about pricing pressure hurting revenue growth."

To justify $65, he explains, "Our $65 target is based on 11 times enterprise value/earnings before interest, taxes, depreciation and amortization (EV/Ebitda) and 24 times price/earnings multiple. These target valuation multiples are also in line with the trailing-12-month averages, and below the peak multiple of 13 times and 27 times."

[Related -ETF Periscope: Sentiment On Main Street At Odds With Jubilation On Wall Street]

Since Pacific Crest's basis is earnings based, let's examine the tech company's recent price-to-earnings (P/E) history to see how $65 measures up.

For 2014, analysts forecast earnings-per-share (EPS) of $2.29 and $2.69 next year. In the past five-years, the average P/E was 35.71 with a low of 18.41 and high of 64.86. During the same timeframe, AKAM's earnings averaged annual growth of 13.21%. That means Wall Street has been willing to pay a P/E premium versus bottom line growth. The annual rate for the next half-decade is slated to increase to 15.29%, which could mean P/E expansion if the same premium holds.

Expansion aside, at the average price-to-earnings ratio, Akamai would price out at $81.77 and $96.06 based on the 14 and 15 consensus, respectively. Both numbers make $65 look small. Meanwhile, the peer group trades at a much lower P/E multiple of 10.18, which delivers AKAM price-targets under $30.  That being said, AKAM's revenue growth is stronger than the group so Akamai should be rewarded with a premium.

Overall: Based on Akamai Technologies, Inc.'s (NASDAQ:AKAM) average P/E since 2009, Bartley's $65 could come into focus sooner than later with the potential of considerable upside beyond the target. 

Sunday, May 18, 2014

Best Warren Buffett Companies To Buy For 2015

Best Warren Buffett Companies To Buy For 2015: Market Vectors Short Municipal Index ETF (SMB)

Market Vectors Short Municipal Index ETF (the Fund) seeks to replicate as closely as possible the price and yield performance of the Barclays Capital AMT-Free Short Continuous Municipal Index (the Index). The Index provides broad exposure to investment-grade municipal bonds with a nominal maturity of 1 to 6 years. To be included in the Index, bonds must be rated investment-grade (Baa3/BBB- or higher) by at least two ratings agencies: Moody's, S&P, Fitch. If only two of the three agencies rate the security, the lower rating is used to determine index eligibility. If only one of the three agencies rates a security, the rating must be investment grade. They must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million. The bonds must be fixed rate, have a dated-date within the last five years, and must be at least 1 year but less than 6 years from their maturity date. Its investment advisor is Van Eck Associates Corpor ation. Advisors' Opinion:
  • [By Todd Rosenbluth]

    Two others are iShares Short-Term National AMT-Free Municipal Bond ETF (SUB) and Market Vectors Short Municipal Index ETF (SMB).

    The Market Vectors fund, not surprisingly, has more A bond exposure and less AA exposure than the iShares fund. However, both have lower average durations than iShares National AMT-Free Muni Bond and thus might appeal to investors concerned about the impact of higher rates.

  • source from Top Stocks Blog:http://www.topstocksblog.com/best-warren-buffett-companies-to-buy-for-2015-2.html

Saturday, May 17, 2014

13 “Triple A” Stocks to Buy

RSS Logo Portfolio Grader Popular Posts: 13 “Triple A” Stocks to Buy10 Best “Strong Buy” Stocks — EQM DAL ILMN and more7 Biotechnology Stocks to Buy Now Recent Posts: Hottest Transportation Stocks Now – GBX GMT CKH NSC Biggest Movers in Healthcare Stocks Now – WMGI ACOR VRX REGN Biggest Movers in Financial Stocks Now – AB ADS PUK TYG View All Posts

This week, 13 stocks get A’s (“strong buy”) in Portfolio Grader‘s three main grading categories, Total Grade, Overall Fundamental Grade and Quantitative Grade.

These are the best of the best in the entire Portfolio Grader database. This week, there are 4,261 stocks and only these 13 get top marks in all categories to make the elite “Triple A” stocks list. Here they are:

Edwards Group Ltd. ADR () is an industrial technology company that manufactures and sells vacuum products and abatement systems. .

Phoenix New Media Ltd. Sponsored ADR Class A () provides content on an integrated platform across Internet, mobile, and TV channels in the People’'s Republic of China. .

Michael Kors Holdings Ltd () engages in the design, marketing, distribution and retailing of branded women'’s apparel and accessories, and men'’s apparel. Since January 1, KORS has jumped 9.4%. This is better than the S&P 500, which has remained flat. .

Lannett Company, Inc. () manufactures and distributes pharmaceutical products under its own trade name and under generic names. LCI is 8.1% higher since the beginning of the year. .

Packaging Corporation of America () engages in the manufacture and sale of containerboard and corrugated packaging products for industrial and consumer markets in the United States. Since the start of the year, PKG has soared 7.1%. .

Par Pharmaceutical () develops, manufactures and distributes generic and branded pharmaceuticals in the United States. .

Qihoo 360 Technology Co., Ltd. ADR Class A () provides Internet and mobile security products in the People’s Republic of China. .

SouFun Holdings Ltd Sponsored ADR Class A () operates a real estate Internet portal, and a home furnishing and improvement website in the People'’s Republic of China. .

Santarus, Inc. () is a specialty pharmaceutical company focused on acquiring, developing and commercializing proprietary products that address the needs of patients treated by gastroenterologists and other targeted physicians. .

Constellation Brands, Inc. Class A () is primarily a wine company that also markets other alcoholic beverages. Stock prices have risen 13.8% since the first of the year. The stock’s trailing PE Ratio is 8.10. .

Ubiquiti Networks, Inc. () designs, manufacturers and sells innovative broadband wireless solutions worldwide. .

TAL Education Group Unsponsored ADR Class A () provides K-12 after-school tutoring services in China. The price of XRS is up 16.6% since the first of the year. Trade volume rose notably over the past week, up 2342.8%. .

YY, Inc. Sponsored ADR Class A () operates an online social platform in the People’'s Republic of China. Since the start of the year, YY has increased 7.7%. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Thursday, May 15, 2014

The Fed's "Growth-Buying" Scheme Is Failing

The numbers are in. And they are ugly...

Based on preliminary first-quarter data, U.S. GDP (gross domestic product) growth is 0.1%.

That's not much.

But then again what do you expect for $3.4 trillion of Federal Reserve spending to boost the economy?

So the question is, how is it possible that we've got nonexistent economic growth, or worse, negative growth and possibly another recession looming, when the Federal Reserve since September 2008 has spent $3.4 trillion to prime the economic pump?

This could push the whole economy past the brink...

The Ugly Truth on Fed Intervention

First of all, the preliminary GDP number, which is the total output of goods and services produced by labor and property minus imports, will be revised on May 29, 2014.

A majority of economists are already revising their estimates down into negative territory.

The consensus view expects the revised or "second" GDP number will actually show the economy contracted by 0.5% to 1% in the first quarter.

Not that the second quarter is expected to be bad just because of a slow first quarter. In fact, a majority of pundits, including the Federal Reserve itself, are saying because the first quarter was so bad the economy will bounce robustly in the second quarter.

But if they're wrong and the second quarter shows negative growth, that's really bad.

It's bad because two consecutive quarters in a row of negative GDP growth is the definition of a recession.

Why has the Fed intervention failed so miserably in spurring growth? It's an ugly truth but needs to be told.

Since the credit crisis, which spawned the Great Recession, the Federal Reserve has been trying to build a bridge to growth. The truth is they've spent trillions on their bridge efforts, but they can't deliver the destination.

Here's what's frightening: What seems like misguided Federal Reserve policies to stimulate economic growth by printing egregious amounts of money was never a misguided policy of trying to stimulate the economy. It was a massive liquidity and profit-making program designed to first save, then enrich, the nation's biggest banks.

Economic growth was the expected byproduct of the Fed's "trickle-down" banking bonanza.

Why It Didn't Work

The reason we're not seeing that trickle-down growth is because the banks aren't lending as they were expected to.

They aren't lending robustly into the economy because they've had to pay out billions of dollars in fines and legal costs.

That plus their former freewheeling speculative trading gambits with depositor money are being shut down thanks to Dodd-Frank and the Volcker rule, and they are facing their worst free-market enemy, a flattening yield curve.

It's common knowledge that all the nation's too-big-to-fail banks would have all failed if the Fed hadn't bailed them out. Any one of them collapsing, after what happened when Lehman Brothers imploded, would have brought down all of them like a professional bowler throwing a 50-pound ball down an alley with gutter guards.

It's impossible for there to be any economic activity if there are no banks. So, the Fed did what it had to do to save the big banks.

It flushed them with trillions of dollars.

To get their footing back, the Fed took bad loans off their books and opened up its discount window to all comers for all they needed.

They also took in underwater mortgage-backed securities (MBS) and bad loans as collateral for the cash they lent them. To ensure their return to massive profitability, the Fed then embarked on quantitative easing, or QE.

QE is another giveaway program for the big banks. The Fed buys tens of billions of dollars a month in treasuries and MBS from the banks.

The banks in turn get cash, and they lend overnight at the fed funds rate. The Fed set the fed funds rate to essentially zero, and with their borrowed cash the big banks buy more treasuries and MBS to sell next month to the Fed.

It's a great way to make risk-free money and for the big banks to improve their capital ratios and reserves and profits. All of which makes them flush enough to raise dividends, which makes their equity stock look better to investors. And the icing on the cake is that they get to raise dividends to entice more investors. It's a great game.

Too bad the banks are the only ones benefiting directly. The whole trickle-down thing isn't working.

What Has the Big Banks Terrified

Besides hoarding money to pay ongoing and future fines for criminal activities, all the big banks are terrified of the shape of the yield curve.

The yield curve is a graphical representation of interest rates. On the vertical left axis are interest rates rising from zero to whatever height they attain. The horizontal axis is time, with one day all the way on the left and going out to 30 years on the right end of the axis.

Banks borrow from each other, usually for a day at a time, at the fed funds rate, which is a market rate but a rate that the Fed largely controls. The fed funds rate is somewhere between zero and .025% now, as that's where the Fed manipulated it to. As the line that traces interest rates moves to the right, it trends higher. That's because you pay a higher interest rate to borrow money you intend to pay back over a longer time.

Normally the yield curve slopes upward steadily, so that interest rates to borrow for a day might be .25% (on an annualized basis) and 5% or 6% or more for a 30-year mortgage.

5 Best Quality Stocks To Own Right Now

But the yield curve is flattening, not steepening, for a few reasons.

Investors are buying 10-year and 15-year and 30-year bonds because their yield is better than what they would be paid if they bought shorter maturity bonds.

One reason that longer-term interest rates aren't as high as they are expected to be is because rates are so artificially low (courtesy of the Fed' manipulation) that investors are going further out on the "risk spectrum," meaning they're willing to lend out money for longer to get more yield.

But another reason there's so much interest in longer-dated bonds is that investors are seeking a safe place to park their cash in anticipation of falling yields because of a market crash or some global macro-event that panics markets.

In other words, investors are fearful.

One of the reasons is that they don't believe the Fed's low interest rate policies are creating growth and that the economy could fall back into recession, which would cause yields to fall even further.

So they want to lock in whatever higher yields they can get now.

The flattening of the yield curve is bad for banks.

When they lend out for a long period of time, they want to charge as much interest as they can.

But if the yield curve is flat and investors are willing to take less interest, they can't charge as much interest as they would like.

If you're a bank and you make loans, you price them according to your risk of being paid back and how long you're making the loan for.

Banks don't want to make long-term loans and not get paid; that's too much risk. That's why they're not making loans hand over fist, even though they have the money to lend.

Thanks to the Fed's QE, banks are better off doing business with each other and the Fed than the public. If there's no credit, there's no economic growth.

And that's the dilemma we're facing.

And most frightening of all, the consequences of no growth and the Fed's money printing are about to devastate equities (again), some bond investments, commodities, real estate (again), and other asset classes.

Don't wait for the Fed to scuttle the economy. Shah helped create a powerful index that you can use to make money no matter what happens. You'll need this when the crash comes...

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Wednesday, May 14, 2014

Rackspace Hosting, Inc. (RAX) Q1 Earnings Preview: What a Difference $0.07 Makes

Rackspace Hosting, Inc. (NYSE:RAX) will release its First Quarter 2014 results After the market close on Monday, May 12, 2014. On the same day, management will host a conference call starting at 4:30 p.m. ET, 3:30 p.m. CT, 1:30 p.m. PT.

Wall Street anticipates that the cloud company will earn $0.12 per share for the quarter, which is $0.07 less than last year's profit of $0.19 per share. iStock expects Rackspace to hitWall Street's consensus number. The iEstimate is $0.12, too.

Sales, unlike earnings, are expected to increase, rising by a healthy 15.9% year-over-year (YoY). RAX's consensus revenue estimate for Q1 is $419.63 million, more than last year's $362.2 million.

[Related -Rackspace Hosting, Inc. (NYSE:RAX): Faces An Uphill Battle Amid Rising Competition]

Rackspace Hosting offers a diverse portfolio of cloud computing services, including public, dedicated and private cloud, and hybrid hosting. The Company is a global company, selling its services to business customers in more than 120 countries.

Hitting Wall Street's target is the norm for RAX. Actual results equaled the consensus estimate eight of the last 16 quarterly announcements; however, things have become a more difficult lately.

The technology company missed the mark three of the last four quarters, falling short by an average of 12% less than forecasted. Those bearish misses were not kind to shareholder. RAX tumbled -15.6%, -15.9% and -19.30% in the three days surrounding the trio of EPS mishaps – OUCH! Meanwhile, the lone bullish beat in the last four got a yawn from investors, gaining just 0.7%.

[Related -This Is What Real Bubbles Look Like]

Although recent history is not favorable to earnings, two analysts upped their profit estimates within the last 30-days; one in the last week. That being said, the consensus of $0.12 is less than where analysts started the quarter: $0.15.

After reviewing RAX's income statement, we find some things we like and some we don't. We'll start with the don't like. Management increased general and administrative expenses (G&A) by 21.57% in 2013 versus sales growth of 17.23%. Had the executive team kept G&A in-line with sales growth, it would have added $10.6 million or $0.07 per share. The three misses in the last four quarters totaled $0.06.

On the plus side, Rackspace is investing heavily in research and development (R&D), and sales and marketing (S&M), both of which should payoff down the road.

Overall: Rackspace Hosting, Inc. (NYSE:RAX) struggled to hit the consensus in the last year, and the stock price has been worse off for it. If management can get G7A in-line with revenue growth, then misses might be less frequent, which could allow R&D and S&M time to pay off without killing the share price in the meantime. 

Tuesday, May 13, 2014

3 Stocks Breaking Out on Unusual Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Stocks Set to Soar on Bullish Earnings

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Stocks Ready to Break Out

With that in mind, let's take a look at several stocks rising on unusual volume recently.

Susser Petroleum Partners

Susser Petroleum Partners (SUSP), is engaged in the wholesale distribution of motor fuels primarily in Texas, New Mexico, Oklahoma and Louisiana. This stock closed up 3.2% to $43.89 in Monday's trading session.

Monday's Volume: 217,000

Three-Month Average Volume: 85,098

Volume % Change: 222%

From a technical perspective, SUSP jumped higher here right above some near-term support levels at $42 to $41.50 with above-average volume. This spike higher on Monday is starting to push shares of SUSP within range of triggering a near-term breakout trade. That trade will hit if SUSP manages to clear Monday's high of $44 to some more near-term overhead resistance at $45 with high volume.

Traders should now look for long-biased trades in SUSP as long as it's trending above support at $42 or t $41.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 85,098 shares. If that breakout materializes soon, then SUSP will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $47.93.

Tal Education Group

Tal Education Group (XRS), together with its subsidiaries, provides K-12 after-school tutoring services under the Xueersi brand name in China. This stock closed up 8.6% to $25.16 in Monday's trading session.

Monday's Volume: 955,000

Three-Month Average Volume: 380,100

Volume % Change: 183%

From a technical perspective, XRS exploded higher here right off its 50-day moving average of $25.21 with heavy upside volume. This move pushed shares of XRS into breakout territory, since the stock took out some near-term overhead resistance levels at $23.95 to $25.06. This spike higher on Monday is now quickly pushing shares of XRS within range of triggering another big breakout trade. That trade will hit XRS manages to take out some more key near-term overhead resistance levels at $25.90 to $25.98 and then once it clears its 52-week high of $26.58 with high volume.

Traders should now look for long-biased trades in XRS as long as it's trending above its 50-day at $22.95 or above more near-term support at $22.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 380,100 shares. If that breakout gets underway soon, then XRS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $30 to $35.

Top 5 Cheapest Companies To Buy Right Now

Piper Jaffray Companies

Piper Jaffray Companies (PJC) provides investment banking, institutional brokerage, asset management and related financial services in the U.S. and Europe. This stock closed up 4.5% at $44.99 in Monday's trading session.

Monday's Volume: 309,000

Three-Month Average Volume: 100,635

Volume % Change: 213%

From a technical perspective, PJC spiked notably higher here right off its 50-day moving average of $43.36 with above-average volume. This move is quickly pushing shares of PJC within range of triggering a major breakout trade. That trade will hit if PJC manages to take out some key near-term overhead resistance levels at $45.80 to its 52-week high of $47.43 with high volume.

Traders should now look for long-biased trades in PJC as long as it's trending above its 50-day at $43.36 or above more near-term support near $42 and then once it sustains a move or close above those breakout levels with volume that's near or above 100,635 shares. If that breakout begins soon, then PJC will set up to enter new 52-week-high territory above $47.43, which is bullish technical price action. Some possible upside targets off that breakout are $50 to $55, or even 60.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


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>>5 Rocket Stocks to Beat a Sideways Market



>>Sell These 5 Toxic Stocks Now



>>5 Stocks Under $10 Set to Soar

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.