Best Cheap Stocks For 2018: April 2014

Wednesday, April 30, 2014

U.S. Steel: “Sizable Negative Impact” From Outages, Nomura Says

U.S. Steel (X) has dropped this morning after the U.S. steel giant beat earnings forecasts but offered disappointing second-quarter guidance.

Reuters

US Steel reported a profit of 34 cents a share, beating the Street consensus for 32 cents, but said it would have a tough time during the second quarter.

JPMorgan’s Michael Gambardella says even the beat isn’t as good as it looks:

U.S. Steel’s 1Q14 earnings fell short of expectations, after excluding a one-time $0.10 gain from headline EPS, and management guided 2Q14 net income to a loss in large part from the impact of recent outages at the company's Gary and Great Lakes facilities which we previously estimated at 45% of Flat-Rolled capacity. We believe the loss in Flat-Rolled will still come as a negative surprise to the market which just began revising 2Q14 earnings expectations lower in recent weeks.

Nomura’s Curt Woodworth and team explain why the outages are such bad news:

Reduced volume should contribute to higher unit costs and limit X's ability to sell into a strong spot sheet market, where prices have reached close to $700/ton, as contract volumes take priority. The outages in 2Q are also expected to negatively impact the mix away from coated automotive products, a high margin product category. X didn't quantify the transitory impact from the recent outages; however, we estimate a sizable negative impact given the significant economies of scale at the affected plants.

Shares of U.S. Steel have dropped 2.9% to 25.57 at 10:03 a.m. but don’t seem to have impact other steel stocks much, if at all. Steel Dynamics (STLD) has dropped 0.6% to $18.07, while Nucor (NUE) has dipped 0.2% to $51.56. ArcelorMittal (MT), however, has gained 0.2% to $16.15 and AK Steel (AKS) has risen 0.6% to $6.92.

Tuesday, April 29, 2014

2 Index Funds And This Metal Are On Buy Signals

Hot Semiconductor Stocks To Invest In Right Now

Federal Reserve Chairman Ben Bernanke ignited another stock market rally and stocks ended last week near all-time highs. Traders will stay focused on Bernanke for at least the next week.

All Eyes Will Stay On the Fed
Last week, SPDR S&P 500 (NYSE: SPY) gained 2.75% as traders once again cheered the Fed's easy money policy. This week, monetary policy should remain in focus as Bernanke makes his semi-annual visit to Capitol Hill. During the past month, the chairman's words have sparked a sell-off (in mid-June) and a recovery (last week) in stock prices. It is unlikely he will add any new information about policy in his testimony, but his words will be scrutinized.

A 30-minute chart of SPY shows the impact Bernanke had on prices last week. A speech after the close on Wednesday, where the chairman said that monetary policy would remain "accommodative" for the "foreseeable future," pushed stocks up by more than 1% the next morning.

Stepping back to look at the weekly chart, we can see that SPY has become overbought.

However, an 8% pullback may have set the stage for a new bull run. The 2-period Relative Strength Index (RSI), a very short-term measure of market conditions, is above 90. While traders often expect a pullback after prices become overbought, testing shows that there is a greater-than-average chance of gains over the next six months.

The table below shows how SPY has performed since 2001 on average and how it performs after becoming overbought.

In the past, on average, gains are greater after the market becomes overbought as the price trend accelerates. Whether or not that will happen this time depends on the Fed.

One of the strongest index funds in the market right now is the iShares Russell Midcap Growth Index (NYSE: IWP). The Income Trader Volatility (ITV) indicator signaled a buy in IWP at the end of last week.

ITV also signaled a buy in SPY last week.

Junior Gold Miners Now 80% Below All-Time Highs
SPDR Gold Shares (NYSE: GLD) gained 5.11% last week. It's too early to tell whether this is the start of a recovery in gold prices. After large price declines, prices often spend weeks forming a consolidation pattern that serves as a bottom.

In the precious metals sector, junior mining companies have suffered the most. Junior miners are generally exploration companies working to find gold rather than operating mines. Many junior miners have little, if any, revenue. In a bull market they can be among the biggest winners, but in bear markets they are likely to lose more than companies that have revenue.

Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) is now more than 80% off its 2010 highs.

An 80% decline is rarely seen. Homebuilder stocks offer a recent example of this kind of decline, and they remain significantly below their highs more than four years after bottoming.

Junior gold miners are unlikely to recover quickly. They also may not be done falling. Bank of America (NYSE: BAC) is an example of a stock that fell more than 80% after topping in 2006. After falling 80%, BAC fell an addition! al 75% be! fore finding a bottom. In all, BAC lost 95% of its value in the bear market. BAC is still 75% below its all-time high even after rallying more than 440% in the past four and a half years.

I say all of this to illustrate the fact that miners are not a buy simply because they have fallen and are oversold. Many individual companies are likely to fail at this point. Company financials will have a greater impact on their survival than gold prices will.

Gold does look set to rally, at least briefly, and iShares Silver Trust (NYSE: SLV) appears to be the most interesting trade in the metals sector.

SLV could rally significantly as it has done in the past when a bullish divergence in the Bollinger Percent B indictor develops. This divergence forms when prices make a lower low but the indicator does not.

This article originally appeared on ProfitableTrading.com:
Market Outlook: 2 Index Funds and This Metal Are on Buy Signals

Monday, April 28, 2014

5 Best Japanese Stocks To Buy For 2015

With shares of Sony (NYSE:SNE) trading around $18, is SNE an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework.

T = Trends for a Stock’s Movement

Sony is involved in the electronics, games, entertainment, and financial businesses. The company operates in several different segments: Consumer Products Services, Professional Device Solutions, Movie, Music, Finance, Mobile, and Other. Through its segments, Sony is able to provide a wide range of products and services. These products include televisions, cameras, personal computers, game consoles, navigation systems, audio and video equipment, software, phones, and media platforms. The company brings new technologies to the hands of your average player as well as professional users. Look for Sony to continue to be a top choice for avid technology adopters worldwide.

Sales of Sony�� PlayStation 4 recently reached 2.1 million units worldwide, temporarily giving it bragging rights over Microsoft�� (NASDAQ: MSFT) Xbox. Given that the PS4 just launched and that the holiday season is critical to console sales, the news has to be among the best that the battered Japanese consumer electronics company has issued in a very long time.

5 Best Japanese Stocks To Buy For 2015: Intex Resources ASA (ITX)

Intex Resources ASA is a Norway-based mining and exploration company that focuses primarily on mineral and metal deposits. As of 31 December 2011, the Company�� project portfolio consisted of Mindoro Nickel in the Philippines, the Nordli molybdenum project in Norway, the Maniitsoqdiamond project in West Greenland, as well as several grassroots exploration projects. The Company focuses primarily on the Mindoro Nickel nickel-laterite deposit. As of December 31, 2011, the Company had a total of four wholly owned subsidiaries, namely Molynor AS, IceFire Diamonds AS, Intex Resources AS and Norex Resources AS. As of December 31, 2011, its largest shareholder was Lybica Holding B.V., which held 21.71% shares. Advisors' Opinion:

[By Sarah Jones]
Inditex SA (ITX) added 3.5 percent to 101.30 euros after reporting a 5.2 percent increase in first-quarter sales to 3.59 billion euros. The world�� biggest clothing retailer also forecast stable profitability even after first-quarter profit advanced at the slowest pace in four years.

5 Best Japanese Stocks To Buy For 2015: First Cash Financial Services Inc (FCFS)

First Cash Financial Services, Inc., incorporated on April 24, 1994, is an operator of retail-based pawn and consumer finance stores in the United States and Mexico. As of February 18, 2013 , the Company had approximately 829 locations twelve states in United States and 24 states in Mexico. The Company's primary business is the operation of pawn stores, which engage in retail sales, purchasing of secondhand goods and consumer finance activities. The pawn stores generate retail sales from the merchandise acquired through collateral forfeitures and over-the-counter purchases from customers. Pawn stores are also a convenient source for small consumer loans to help customers meet their short-term cash needs. Personal property, such as jewelry, consumer electronics, tools, sporting goods and musical instruments are pledged as collateral for the loans. In addition, some of the Company's pawn stores offer consumer loans or credit services products.

In March 2012, the Company acquired three Dallas-area pawn stores. In June 2012, the Company acquired 24 pawn stores located in the states of Colorado (13), Kentucky (seven), Wyoming (three) and Nebraska (one). In June 2013, First Cash Financial Services Inc announced the acquisition of 19 format U.S. pawn stores located in Texas.

Pawn Merchandise Sales

The Company's pawn merchandise sales are primarily retail sales to the general public from its pawn stores. The items retailed are primarily used consumer electronics, jewelry, household appliances, tools, musical instruments, and sporting goods. The Company also melts down certain quantities of scrap jewelry and sells the gold, silver and diamonds in commodity markets.

The Company acquires pawn merchandise inventory primarily through forfeited pawn collateral and, to a lesser extent, through purchases of used goods directly from the general public. Merchandise acquired by the Company through forfeited pawn collateral is carried in inventory at the amount of the ! related pawn loan, exclusive of any accrued service fees. The Company does not provide financing to customers for the purchase of its merchandise, but does permit its customers to purchase merchandise on an interest-free layaway plan. Should the customer fail to make a required payment, the item is returned to inventory and previous payments are forfeited to the Company. Interim payments from customers on layaway sales are credited to deferred revenue and subsequently recorded as income in which final payment is received or when previous payments are forfeited to the Company.

Pawn Lending Activities

The Company's pawn stores make small loans to their customers in order to help them meet short-term cash needs. All pawn loans are collateralized by personal property such as jewelry, electronic equipment, household appliances, tools, sporting goods and musical instruments. Pawn loans are non-recourse loans and the pledged goods provide the only security to the Company for the repayment of the loan. At the time a pawn transaction is entered into, an agreement, commonly referred to as a pawn ticket, is delivered to the borrower for signature that sets forth, among other items, the name and address of the pawnshop, borrower's name, borrower's identification number from his/her driver's license or other identification, date, identification and description of the pledged goods, including applicable serial numbers, amount financed, pawn service fee, maturity date, total amount that must be paid to redeem the pledged goods on the maturity date, and the annual percentage rate. Pledged property is held through the term of the loan, unless the pawn is paid earlier or renewed. The typical loan term is generally one month plus an additional grace period (typically 30 to 90 days). The Company contracts for pawn loan fees and service charges as compensation for the use of the funds loaned and to cover direct operating expenses related to the transaction and holding the pledged property. These pa! wn loan f! ees and service charges accounted for approximately 26% of the Company's revenue from continuing operations during the year ended December 31, 2012 .

Credit Services and Consumer Loan Activities

The Company has significantly reduced its U.S.-based consumer loan activities, primarily from payday lending, over the past several years. In September 2012, the Company closed seven of its consumer loan stores located in the Texas cities of Austin and Dallas. The Company offers a fee-based credit services organization program (CSO Program) to assist consumers, in Texas markets, in obtaining extensions of credit. The Company's consumer loan and pawn stores in Texas offer the CSO Program, and, in Texas, credit services are also offered via an Internet platform. Under the CSO Program, the Company assists customers in applying for a short-term extension of credit from an independent, non-bank, consumer lending company (the Independent Lender) and issues the Independent Lender a letter of credit to guarantee the repayment of the extension of credit.

The Company subsequently collects a percentage of these bad debts by redepositing the customers' checks, ACH collections or subsequent cash repayments by the customers. The profitability of the Company's credit services operations is dependent upon adequate collection of these returned items. The Company also offers an automobile title lending product under the CSO Program. These credit services fees accounted for approximately 8% of the Company's revenue from continuing operations during 2012 . In Mexico, the Company also offers an installment loan product with a term of 365 days and bears weekly service fees of 7% on the loan amount. These consumer loan fees accounted for less than 1% of the Company's revenue from continuing operations during 2012 .

Advisors' Opinion:

[By Eric Volkman]
First Cash Financial Services (NASDAQ: FCFS ) is becoming a pawn star. The company announced it has acquired a set of 19 large-format pawn shops in Texas, most of which operate under the Valu + Pawn brand name. The price was around $70 million in cash, funded for the most part under the company's revolving credit facility.
[By Brian Pacampara]
What: Shares of First Cash Financial Services (NASDAQ: FCFS ) plunged as low as 14% today after the consumer finance company cut its short-term guidance outlook.
[By Victor Selva]
We can appreciate that Capital One麓s ROE is lower than that of American Express, Discover Financial Services, First Cash Financial Services (FCFS) and Nelnet Inc. (NNI).

5 Best Quality Stocks To Own Right Now: Blyth Inc. (BTH)

Blyth, Inc. operates as a direct to consumer marketing company in North America, Europe, and Australia. The company operates in three segments: Health & Wellness, Candles & Home D茅cor, and Catalog & Internet. The Health & Wellness segment offers a suite of weight-management products, nutritional supplements, and energy drinks under the ViSalus Sciences, ViSalus, and Body by Vi Challenge brands primarily through its independent promoters. The Candles & Home D茅cor segment sells food and recipe products, candles, reed diffusers, and other home fragrance products and related decorative accessories under the PartyLite, GloLite by PartyLite, and Two Sisters Gourmet by PartyLite names through independent sales consultants. The Catalog & Internet segment develops and markets an array of decorative and functional household products, personalized cards, gifts, food products, and health and wellness products under the Miles Kimball, Walter Drake, As We Change, Easy Comforts, and Ex posures brands through its Websites, catalogs, and direct mail campaigns. Blyth, Inc. was founded in 1976 and is headquartered in Greenwich, Connecticut.

Advisors' Opinion:

[By Ben Levisohn]
Blyth�(BTH) has gained 10% to $14.25 this morning in what could be a short squeeze.

Packaging Corp. of America�(PKG) has jumped 6.3% to $57.99 after it said it would buy Boise (BZ) for $1.28 billion. Boise has gained 26% to $12.55.
[By John Udovich]
Small cap NYSE stocks Blyth, Inc (NYSE: BTH), ITT Educational Services, Inc (NYSE: ESI) and U.S. Silica Holdings Inc (NYSE: SLCA) had the highest short interest as of late September according to HighShortInterest.com with short interest of 56.80%, 55.73% and 40.22%, respectively. However, shorting a stock can be a dangerous business as the bears can and do sometimes get mauled by the bulls. With that in mind, let�� take a look at why the bulls or the bears may be right or wrong about these three shorted small cap NYSE stocks:�
[By Roberto Pedone]
Another non-cyclical consumer goods player that insiders are active in here is Blyth (BTH), which designs and markets home fragrance products and decorative accessories, as well as weight management products, nutritional supplements and energy drinks. Insiders are buying this stock into weakness, since shares are down by 22% so far in 2013.

Blyth has a market cap of $193 million and an enterprise value of $156 million. This stock trades at a reasonable valuation, with a price-to-sales of 0.19 and a price-to-book of 4.21. This is a cash-rich company, since the total cash position on its balance sheet is $172.96 million and its total debt is $127.98 million. This stock currently sports a dividend yield of 1.6%.

A beneficial owner just bought 20,000 shares, or $246,000 worth of stock, at $12.34 per share.

From a technical perspective, BTH is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has recently pulled back after trading just above its 200-day moving average at $14.60 a share to its intraday low of $12.05 a share. That pullback is pushing shares of BTH very close to its 50-day moving average of $11.48 a share. If that level holds off this pullback, then shares of BTH could present a solid buying opportunity.

If you're in the bull camp on BTH, then look for long-biased trades as long as this stock is trending above is 50-day at $11.48 and then once it breaks out above some near-term overhead resistance at $13.09 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 287,505 shares. If we get that move soon, then BTH will set up to re-test or possibly take out its next major overhead resistance levels at $14.60 to $15.69 a share. Any high-volume move above those levels will then put $17 to $20 into range for shares of BTH.
[By Robert Hanley]
Consumer-goods marketer Blyth (NYSE: BTH ) , owner of weight-loss upstart ViSalus, has been in the doghouse lately, sitting near a 52-week low due to poor results in its weight-loss unit.� Despite a large potential customer base of overweight people worldwide, the industry has had difficulty generating growth lately, with data provider Marketdata Enterprises estimating that industry sales rose only 1.7% in 2012.� However, Blyth caught a bid in late October from a proposed combination with marketing-services provider CVSL, indicating that some people see incremental value in Blyth's businesses.�So, should small investors bet on this small cap or should they focus their attention on Weight watchers International (NYSE: WTW ) and Medifast (NYSE: MED ) instead?

5 Best Japanese Stocks To Buy For 2015: Abraxas Petroleum Corp (AXAS)

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

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

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

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

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

Advisors' Opinion:

[By Monica Gerson]
Abraxas Petroleum (NASDAQ: AXAS) is estimated to post its Q4 earnings at $0.04 per share on revenue of $23.05 million.

Broadwind Energy (NASDAQ: BWEN) is projected to post a Q4 loss at $0.19 per share on revenue of $56.54 million.
[By Tyler Crowe]
In the energy world, it's never much of a surprise when an oil company picks up natural gas assets or vice versa. But a coal company getting into the oil business? Now that's a rarity. This week, Natural Resources Partners (NYSE: NRP ) �did just that. The company announced that it's taking a working interest in some of Abraxas Petroleums (NASDAQ: AXAS ) assets in the Bakken. While the $35 million purchase was not that large, it's a rare case where a coal company branches out into other natural resources.�

5 Best Japanese Stocks To Buy For 2015: Greenhill & Co Inc (GHL)

Greenhill & Co., Inc. (Greenhill), incorporated on March 10, 2004, is an independent investment bank focused on providing financial advice on mergers, acquisitions, restructurings, financings and capital raising to corporations, partnerships, institutions and governments. The Company acts for clients located throughout the world from its offices in the United States, United Kingdom, Germany, Canada, Japan, Australia and Sweden. The Company provides advisory services primarily in connection with mergers and acquisitions, financings, restructurings, and capital raisings. On merger and acquisition engagements, it provide a broad range of advice to global clients in relation to domestic and cross-border mergers, acquisitions, and similar corporate finance matters and are generally involved at each stage of these transactions, from initial structuring to final execution. It advises client�� matters, including acquisitions, divestitures, defensive tactics, special committee projects and other important corporate events. It also provides advice on valuation, tactics, industry dynamics, structuring alternatives, timing and pricing of transactions, and financing alternatives.

In the Company�� financing advisory and restructuring practice, the Company advise debtors, creditors, governments, other stakeholders and companies experiencing financial distress as well as potential acquirers of distressed companies and assets. It provides advice on valuation, restructuring alternatives, capital structures, financing alternatives, and sales or recapitalizations. The Company also assists those clients who seek court-assisted reorganizations by developing and seeking approval for plans of reorganization as well as the implementation of such plans. In its private capital and real estate capital advisory business the Company assists fund managers and sponsors in raising capital for new funds and provide related advisory services to private equity and real estate funds and other organizations globally. It ! also advises on secondary transactions.

The Company competes with America Corporation, Barclays Bank PLC, Citigroup Inc., Credit Suisse, Deutsche Bank AG, Goldman Sachs Group, Inc., JPMorgan Chase & Co., Morgan Stanley, UBS A.G., Evercore Partners Inc., Jefferies Group, Inc., Lazard Ltd., Credit Suisse and Park Hill.

Advisors' Opinion:

[By Matt Koppenheffer and David Hanson]
An article in Financial Times came out suggesting that smaller investment banks, such as Greenhill (NYSE: GHL ) or Lazard (NYSE: LAZ ) , might be workplaces that offer more options and flexibility for those pursuing a banking career. Will we start to see the best talent move away from Wall Street's biggest banks to find the true opportunities? In the video, Matt tells us what effect this could have on big banking as a whole.
[By Mark Hulbert]
The stocks are C.H. Robinson Worldwide (CHRW) �, a freight-transportation company; chip maker Cirrus Logic (CRUS) �; independent oil company Forest Oil (FST) �; investment bank Greenhill & Co. (GHL) �; Intrepid Potash (IPI) �, a fertilizer company; retailer J.C. Penney (JCP) �; Quest Diagnostics (DGX) �, a medical diagnostic company; Strayer Education (STRA) �, a for-profit college; Tower Group International (TWGP) �, an insurance company; and Windstream Holdings (WIN) �, a rural telecommunications firm.

Sunday, April 27, 2014

Apple Just Stunned Wall Street

Apple Inc. (Nasdaq: AAPL) pleasantly surprised Wall Street by comfortably beating expectations when it reported earnings for its March quarter after the market close today (Wednesday).

The Cupertino, Calif.-based tech giant also threw existing holders of Apple stock several goodies, including an expansion of the stock buyback program, a seven-for-one stock split, and an 8% increase in the dividend.

The Apple stock buyback program will expand by $30 billion, to bring the total by 2015 to $130 billion.

The raft of happy news sent AAPL stock up more than 8% in after-hours trading.

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Apple reported earnings per share of $11.62, a healthy $1.46 above the $10.16 analysts had forecast as well as the $10.09 reported in the same quarter a year ago.

Revenue was $45.6 billion, which was $2 billion above both the year-ago quarter and analyst expectations.

apple earnings Another pleasant surprise was higher gross margins, which came in at 39.3%. That, too, beat the forecast of 37.7% as well as the year-ago quarter number of 37.5%.

The good news was almost entirely driven by surprisingly strong iPhone sales. Apple sold 43.7 million iPhones in the quarter, a 17% increase over the same quarter last year and far above the Street's number of 37.7 million.

That's a positive sign for the current quarter in that it shows demand for the iPhone remained high despite the lack of any updates and rumors of iPhone models with larger screens (a 4.7-inch and a 5.5-inch) expected to arrive in the fall.

The only other sector to shine in the March quarter was iTunes/Software and Services, which saw revenue rise 11% to nearly $4.6 billion.

Mac sales were nearly flat, rising 1% by revenue and 5% by units. Meanwhile, iPad revenue slumped 13%, with unit sales falling 16%.

Still, the Apple earnings report hit a lot more high notes than anyone expected, particularly with the stock buyback and dividend increase.

But while the stellar earnings report will push Apple stock higher in the short term, it will take more than that to sustain a push back to $600 and beyond.

What Apple (Nasdaq: AAPL) Stock Really Needs

While the pop in iPhone sales was great, it pales next to the days of the 50% or even 100% growth that drove Apple stock from 2007 to 2012.

The reality is that the mobile revolution that Apple helped pioneer is reaching maturity - that was clear in the declining iPad sales.

Most of the people in the world who want a smartphone or tablet already have one by now; the market is almost all about replacements and repeat sales now. And while Apple is holding its own, mature markets don't generate the kind of numbers that can double a stock in a year.

Top 5 Logistics Stocks To Watch Right Now

Without that dramatic growth in sales of its mobile hardware, Apple stock has settled into a range between $500 and $575.

The strong earnings report has AAPL back at the top of the range, but is unlikely to push it back anywhere near its all-time highs.

Sure, new iPhones and iPads in the fall will help boost sales seasonally, and maybe give AAPL another short-term pop. But Apple stock can't break out of this range until the company comes out with some completely new product or service.

The rumor mills are full of possibilities here. Apple is alleged to be working on everything from a big-screen TV (very unlikely) to a smartwatch (very likely) to a mobile payment service (also very likely).

Some critics have already started calling for Apple Chief Executive Officer Tim Cook's head for his failure to deliver either new products or substantial growth in any of the existing ones. He doesn't need to fear for his job, but the change in Wall Street's mood is telling - and worrisome.

Apple is known not to debut products until it feels they are truly ready, but unless it actually brings out some major new thing in 2014, the company risks losing its status as a leading Silicon Valley innovator - with other tech titans like Google Inc. (Nasdaq: GOOG) and even Facebook Inc. (Nasdaq: FB) only too happy to fill the void.

Were you impressed by the Apple earnings beat? Where do you see AAPL stock headed in 2014 and 2015? Let us know on Twitter @moneymorning or Facebook.

Tech investing in the current markets can be tricky, so you need to find stocks with powerful potential for growth. And there's no better place to start than a company that's tapping into three of tech's hottest growth trends - data centers, the mobile wave, and cloud computing. It's clearly a winning combo...

Saturday, April 26, 2014

5 Stocks Poised for Breakouts

DELAFIELD, Wis. (Stockpickr) -- Trading stocks that trigger major breakouts can lead to massive profits. Once a stock trends to a new high or takes out a prior overhead resistance point, then it's free to find new buyers and momentum players who can ultimately push the stock significantly higher.

>>5 Mega-Cap Stocks to Trade for Gains

Breakout candidates are something that I tweet about on a daily basis. I frequently tweet out high-probability setups, breakout plays and stocks that are acting technically bullish. These are the stocks that often go on to make monster moves to the upside. What's great about breakout trading is that you focus on trend, price and volume. You don't have to concern yourself with anything else. The charts do all the talking.

Trading breakouts is not a new game on Wall Street. This strategy has been mastered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. These pros know that once a stock starts to break out above past resistance levels and hold above those breakout prices, then it can easily trend significantly higher.

>>QE5 Is Coming -- Here's What It Means to Your Portfolio

With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.

Gigamon

One technology player that's starting to move within range of triggering a major breakout trade is Gigamon (GIMO), which designs, develops and sells products and services that provide customers with visibility and control of network traffic for enterprises and services providers in the U.S. and the rest of the Americas, Europe, the Middle East, Africa and the Asia Pacific. This stock has been destroyed by the bears over the last six months, with shares off sharply by 47%.

>>5 Stocks Under $10 Set to Soar

5 Best Undervalued Stocks To Buy For 2015

If you take a look at the chart for Gigamon, you'll see that this stock is gapping up sharply higher here with heavy upside volume. Volume so far today has registered 1.58 million shares, which is well above its three-month average action of 627,044 shares. This spike higher on Friday has pushed shares of GIMO into breakout territory, since the stock has taken out some near-term overhead resistance at $16.64 a share. That move is starting to push shares of GIMO within range of triggering another big breakout trade.

Traders should now look for long-biased trades in GIMO if it manages to break out above Friday's intraday high of $18.02 a share to its recent gap-down-day high of $20.01 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 627,044 shares. If that breakout triggers soon, then GIMO will set up to re-fill some of its gap-down-day zone that started at $26 a share.

Traders can look to buy GIMO off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $16 a share. One can also buy GIMO off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Hercules Offshore

An energy player that's starting to move within range of triggering a big breakout trade is Hercules Offshore (HERO), which provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry worldwide. This stock has been hit hard by the sellers over the last six months, with shares down sharply by 38%.

>>3 Stocks Rising on Big Volume

If you take a glance at the chart for Hercules Offshore, you'll notice that this stock has trending sideways and consolidating for the last three months, with shares moving between $4.21 on the downside and $4.98 on the upside. Shares of HERO are now starting to bounce higher off that $4.21 low and it's starting to move within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in HERO if it manages to break out above its 50-day moving average at $4.58 a share and then once it takes out more key overhead resistance levels at $4.70 to $4.98 share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 4.22 million shares. If that breakout materializes soon, then HERO will set up to re-test or possibly take out its next major overhead resistance levels at $5.50 to $6 a share, or even $6.50 a share.

Traders can look to buy HERO off weakness to anticipate that breakout and simply use a stop that sits right below its 52-week low of $4.21 a share. One could also buy HERO off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Alamos Gold

Another stock that's starting to trend within range of triggering a near-term breakout trade is Alamos Gold (AGI), which is engaged in the acquisition, exploration, development, and extraction of precious metals, primarily gold. This stock has been hit hard by the bears over the last six months, with shares down sharply by 39%.

>>5 Stocks With Big Insider Buying

If you take a glance at the chart for Alamos Gold, you'll notice that this stock has been trending sideways and consolidating for the last month and change, with shares moving between $8.89 on the downside and $9.92 on the upside. Shares of AGI have also been forming a major bottoming pattern over the last three months and change, with the stock finding buying interest each time it's trended down just below $9 a share. Shares of AGI are now starting to bounce higher off those support levels and it's quickly moving within range of triggering a major breakout trade above the upper-end of its recent sideways trading chart pattern.

Traders should now look for long-biased trades in AGI if it manages to break out above some near-term overhead resistance levels at $9.50 to its 50-day moving average at $9.63 a share and then once it takes out $9.92 to $10 a share with high volume. Watch for a sustained move or close above those levels with volume that registers near or above its three-month average action of 391,795 shares. If that breakout kicks off soon, then AGI will set up to re-test or possibly take out its next major overhead resistance levels at $11.11 a share. Any high-volume move above that level with volume will then give AGI a chance to re-fill some of its previous gap-down-day zone from January that started at near $12.50 a share.

Traders can look to buy AGI off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $8.89 to $8.78 a share. One can also buy AGI off strength once it starts to take out those breakout levels share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Lake Shore Gold

Another basic materials player that's starting to trend within range of triggering a major breakout trade is Lake Shore Gold (LSG), which is engaged in the acquisition, exploration and development of gold properties in Canada. It also explores for silver ores. This stock has been on fire so far in 2014, with shares up sharply by 75%.

>>Do You Own These 5 Toxic Stocks? Watch Out!

If you look at the chart for Lake Shore Gold, you'll notice that this stock has been uptrending strong for the last month and change, with shares moving higher from its low of 60 cents per share to its recent high of 84 cents per share. During that uptrend, shares of LSG have been making mostly higher lows and higher highs, which is bullish technical price action. Shares of LSG recently pulled back off that 84 cents high to around 70 cents per share, and subsequently the stock has now resumed its uptrend. That move is quickly pushing shares of LSG within range of triggering a major breakout trade.

Traders should now look for long-biased trades in LSG if it manages to break out above some near-term overhead resistance levels at 80 to 84 cents per share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 509,824 shares. If that breakout gets underway soon, then LSG will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of 91 cents per share to 94 cents per share. Any high-volume move above those levels will then give LSG a chance to tag $1 to $1.10 a share.

Traders can look to buy LSG off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at 69 cents per share. One can also buy LSG off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Wet Seal 

My final breakout trading prospect is retailer Wet Seal (WTSL), which operates stores that sell fashionable and contemporary apparel and accessory items for female consumers. This stock is down big so far in 2014, with shares off by 60%.

>>3 Stocks Under $10 Triggering Breakout Trades

If you look at the chart for Wet Seal, you'll notice that this stock has been uptrending over the last few weeks, with shares moving higher from its low of $1.05 to its intraday high of $1.25 a share. During that uptrend, shares of WTSL have been consistently making higher lows and higher highs, which is bullish technical price action. This uptrend is coming after a major downtrend for shares of WTSL that took the stock significantly lower over the last six months from over $3.40 to that $1.05 low. Shares of WTSL are now starting to spike higher and move within range of triggering a big breakout trade.

Traders should now look for long-biased trades in WTSL if it manages to break out above some near-term overhead resistance at $1.25 share with high volume. Look for a sustained move or close above that level with volume that registers near or above its three-month average action of 1.53 million shares. If that breakout triggers soon, then WTSL will set up to re-test or possibly take out its next major overhead resistance level at $1.37 a share. Any high-volume move above that level will then give WTSL a chance to tag its 50-day moving average of $1.53 to possibly even $1.80 a share.

Traders can look to buy WTSL off weakness to anticipate that breakout and simply use a stop that sits right around some near-term support levels at $1.14 a share or at $1.10 a share. One can also buy WTSL off strength once it busts above those breakout levels with volume and then simply use a stop that sits a conformable percentage from your entry point.

To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Friday, April 25, 2014

3 Stocks Under $10 Triggering Breakout Trades

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Mega-Cap Stocks to Trade for Gains

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Stocks With Big Insider Buying

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

Photronics

Photronics (PLAB), together with its subsidiaries, manufactures and sells photomasks in the U.S. This stock closed up 3.6% to $8.82 a share in Thursday's trading session.

Thursday's Range: $8.56-$8.85

52-Week Range: $7.03-$9.75

Thursday's Volume: 299,000

Three-Month Average Volume: 306,417

From a technical perspective, PLAB spiked notably higher here right off its 50-day moving average of $8.50 with decent upside volume. This move is quickly pushing shares of PLAB within range of triggering a near-term breakout trade. That trade will hit if PLAB manages to take out some key near-term overhead resistance levels at $8.86 to$8.95 with strong upside volume flows.

Traders should now look for long-biased trades in PLAB as long as it's trending above its 50-day at $8.50 or above its 200-day at $8.26 and then once it sustains a move or close above those breakout levels with volume that hits near or above 306,417 shares. If that breakout materializes soon, then PLAB will set up to re-test or possibly take out its next major overhead resistance levels at $9.24 to its 52-week high at $9.75.

Calix

Calix (CALX) develops, markets and sells broadband communications access systems and software for fiber and copper-based network architectures that enable communications service providers to transform their networks and connect to their residential and business subscribers. This stock closed up 3.6% to $9.10 in Thursday's trading session.

Thursday's Range: $8.61-$9.12

52-Week Range: $7.12-$13.98

Thursday's Volume: 403,000

Three-Month Average Volume: 497,285

From a technical perspective, CALX trended higher here right above its 50-day moving average of $8.39 with decent upside volume. This move is quickly pushing shares of CALX within range of triggering a near-term breakout trade. That trade will hit if CALX manages to take out Thursday's high of $9.12 to some more near-term overhead resistance at $9.16 with strong volume.

Traders should now look for long-biased trades in CALX as long as it's trending above its 50-day at $8.39 or above more support at $8 and then once it sustains a move or close above those breakout levels with volume that hits near or above 497,285 shares. If that breakout hits soon, then CALX will set up to re-test or possibly take out its next major overhead resistance levels at around $10 to its 200-day moving average of $10.31.

Wet Seal

Wet Seal (WTSL), a multi-channel specialty retailer, operates stores that sell fashionable and contemporary apparel and accessory items for female consumers. This stock closed up 2.5% to $1.19 in Thursday's trading session.

Thursday's Range: $1.15-$1.20

52-Week Range: $1.05-$5.20

Thursday's Volume: 934,000

Three-Month Average Volume: 1.51 million

From a technical perspective, WTSL bounced higher here right above some near-term support at $1.14 with lighter-than-average volume. This stock has been downtrending badly for the last six months, with shares falling sharply from over $3.40 to its recent 52-week low of $1.05. During that downtrend, shares of WTSL have been consistently making lower highs and lower lows, which is bearish technical price action. That said, the short-term trend for WTSL looks to be changing from bearish to bullish and the stock is quickly approaching a near-term breakout trade. That trade will hit if WTSL manages to take out Thursday's high of $1.20 to some more near-term overhead resistance at $1.25 with high volume.

Traders should now look for long-biased trades in WTSL as long as it's trending above support at $1.14 or at $1.10 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.51 million shares. If that breakout triggers soon, then WTSL will set up to re-test or possibly take out its next major overhead resistance level at $1.37. Any high-volume move above that level will then give WTSL a chance to tag its 50-day moving average of $1.54.

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Thursday, April 24, 2014

Best Blue Chip Companies To Watch In Right Now

Why are markets going to keep going up? �

Because as long as the easy money party being put on by the central banks globally lasts they have to.

At least that is what Jim Rogers thinks.

He also warns that at some point in time that party has to stop. �When it does it is going to get ugly.

One market Jim Rogers would favor is Japan, specifically its blue chip companies. �New taxation policies in Japan have made stocks very attractive for Japanese citizens.

If you are interested in investing for the long term you should consider investing where the Chinese government will be investing which is in railroads and other things that will address China's pollution.

About the author:Canadian Valuehttp://valueinvestorcanada.blogspot.com/
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Rating: 1.5/5 (2 votes)

Best Blue Chip Companies To Watch In Right Now: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:

[By Justin Loiseau]
As retail sales rose 9.8%, McDonald's (NYSE: MCD ) shares jumped 35%. As the Purchasing Managers Index increased 11.9%, General Electric (NYSE: GE ) shares grew 41% while Intel (NASDAQ: INTC ) rocketed 110% on 42% sales increases.
[By Ben Levisohn]
Maybe McDonald’s (MCD) investors are loving after all.
AP
Yesterday, McDonald’s dropped 0.3% after reporting same-store sales–and Barron’s panned the stock. Today, however, McDonald’s shares have gained 3.5% to $98.56, leaving Burger King (BKW), which has ticked up 0.3% to $27.63, and Wendy’s (WEN), which has dropped 1.1% to $9.30, in their dust.

Sterne Agee’s Lynne Collier and Wesley Carmichael explain why investors enthusiastic about McDonald’s prospects:

We are incrementally more positive on MCD following today’s comments from CFO Peter Bensen at the Bank of America Consumer Conference. Most importantly, Mr. Bensen spoke about the Company’s investigation into increasing leverage in the capital structure, which we believe could result in increased return of capital to shareholders…

Still, McDonald’s has dipped 0.4% during the past 12 months, even as Wendy’s has surged 70% and Burger King Worldwide has jumped 49%.

The question now: Is this the beginning of a new trend for McDonald’s?
[By Regarded Solutions]
The Team Alpha portfolio consists of Ford (F) Chevron (CVX) Apple (AAPL), McDonald's (MCD), Exxon Mobil (XOM), Johnson & Johnson (JNJ), AT&T (T), General Electric (GE), BlackRock Kelso Capital (BKCC), KKR Financial (KFN), Procter & Gamble (PG), CSX Corp. (CSX), Realty Income (O), Coca-Cola (KO), Annaly Capital (NLY), Cisco (CSCO), Bristol-Myers Squibb (BMY), Newmont Mining (NEM), and Wells Fargo (WFC), and Intel (INTC).

Best Blue Chip Companies To Watch In Right Now: Philip Morris International Inc(PM)

Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.

Advisors' Opinion:

[By Holly LaFon]
His top four holdings are Philip Morris International (PM), Nestle SA Reg (NSRGY), Berkshire Hathaway (BRK.A), CIE Financiere Rich (CFRHF).
Philip Morris International (PM)
[By Jonas Elmerraji]
As the world's second largest tobacco company, Philip Morris International (PM) is the prototypical sin stock. It boasts recognizable brands, a sticky customer base, and a hefty dividend payout -- and the payout looks due for a dividend hike. As I write, Philip Morris International currently pays out a 85 cents each quarter, adding up to a 4.05% yield.

Philip Morris owns almost 30% of the world's tobacco market. And much of that success is thanks to a single iconic brand: Marlboro. The firm has owned Marlboro (as well as second-tier names such as L&M and Parliament) internationally ever since Altria (MO) split up its international and domestic operations. Between the two markets, PM owns the more attractive franchise by far. After all, the international market is the only one that's actually growing.

While the U.S. market for tobacco products is rife with regulation and demographic shifts are turning away from smoking, international tobacco sales are up -- especially in emerging markets. Premium positioning in markets like India, China and Indonesia translates into substantial cash flows for PM investors. And while the strength of the dollar has been a challenge post-2008, the potential for a Fed taper could strengthen this stock's payout in 2013.
[By Ben Levisohn]
Shares of Phillip Morris (PM) have been performing about as well as a soggy cigarette–but Morgan Stanley still hopes they will catch fire.
Agence France-Presse/Getty Images
How bad has performance of Phillip Morris been? Its shares have dropped 1.9% during the past 12 months, while American-focused Altria Group (MO) has gained 15%. British American Tobacco (BTI) has gained 3%, Reynolds American (RAI) has advanced 14%, and Lorillard (LO) has jumped 26%.

And now Morgan Stanley’s David Adelman and team have cut their earnings-per-share forecast for Phillip Morris by 11 cents thanks to the strong dollar, after cutting it by 41 cents six weeks ago. Adelman explains why:

While PM�� significant EM exposure has been an important driver of its 8%+ constant-currency 2008-2013 EBIT CAGR, recent weakness in a number of important EM currencies (e.g., Argentina, Turkey and Indonesia) will undoubtedly weigh on 2014 reported results. Further, it remains somewhat unclear the extent to which added Yen weakness will impact results, as PM�� F/X guidance already suggests that it was somewhat hedged on USD/Yen. Finally, with ~60% of its operating expenses denominated in ��ard dollar��currencies (USD, EUR and CHF), we have also incorporated a significant estimated transactional F/X impact (+40% of our $0.52/share est.).

Still, Adelman kept Phillip Morris rated Overweight. He explains why:

Remain OW, as stock should benefit from recent weakness and achievable 2014 targets: After underperforming US Tobacco and Staples by 18% and 24%, respectively, in 2013, and with expectations already lowered to a conservative level of 6-8% currency-neutral underlying EPS growth in 2014, we believe current valuation of ~14.5x 2015e P/E and <10x EV/EBITDA remains attractive. We continue to view local-currency earnings risk as to the upside, particularly as no new issues have appeared to emerge entering 2014 (such as unforeseen outsized excise

Top 10 Shipping Stocks To Invest In Right Now: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:

[By Tim Brugger]
Microsoft (NASDAQ: MSFT ) �is making inroads in a key market, and at the rate its going, longtime stalwarts including Hewlett-Packard (NYSE: HPQ ) and IBM (NYSE: IBM ) better stand up and take notice.
[By Kathy Kristof]
Steve Halpern: Finally, in your article, among the other companies you discuss, you do look at International Business Machines (IBM), and you note that they're spending billions to buy back their own shares. Could you tell us a little about that?
[By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, global IT solutions giant International Business Machines (NYSE: IBM ) has earned a coveted four-star ranking.
[By Dan Caplinger]
On Thursday, IBM (NYSE: IBM ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever surprises inevitably arise. That way, you'll be less likely to have an uninformed, knee-jerk reaction that turns out to be exactly the wrong move.

Best Blue Chip Companies To Watch In Right Now: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:

[By DailyFinance Staff]
Investors took a wait-and-see attitude Tuesday, but airline stocks lost altitude. The market is in a holding pattern until 2 p.m. Wednesday, when the Fed reveals details of this week's FOMC policy meetings, and whether it's ready to begin cutting back on its main economic stimulus program. If it does begin to taper, the next debate will begin immediately: Is that good or bad for investors? On Wall Street today, the Dow Jones industrial average (^DJI) edged down 9 points, the Nasdaq composite (^IXIC) fell nearly 6, and the Standard & Poor's 500 index (^GPSC) lost 5 points. The Dow's gainers were led by a pair of companies hiking their dividends. 3M (MMM), which makes everything from Post-It notes to medical equipment, rose 3 percent after increasing its payout by 35 percent. And Boeing (BA) rose 1 percent. It boosted the dividend by 50 percent and announced a big stock buyback. The other big blue chip winner was Visa (V), which gained another 2.5 percent. Its stock is now up 43 percent from a year ago. On the downside, Verizon (VZ), IBM (IBM), McDonald's (MCD) and Microsoft (MSFT) all lost about one percent. Microsoft says it will not name a new CEO until next year. And airline stocks were broadly lower. United (UAL) and Delta (DAL) both fell 3 percent. American Airlines (AAL), which completed its merger with U.S. Airways last week, fell 2 percent. And Southwest (V) also lost 2 percent. Brokerage recommendations gave a boost to several issues. Data storage companies Seagate (STX), up 3 percent, and Western Digital (WDC), up 2.5 percent, following JP Morgan upgrades. And iRobot (IRBT) surged 17 percent after Raymond James gave it a 'strong buy.' Shares of Facebook (FB) rose 2 percent, hitting an all-time high. The social media giant is rolling out new video ads this week. That's expected to boost revenue. The question is, will it alienate users? On the downside, Targacept (TRGT) lost more than a third of its value. A clinical trial of its schizophreni
[By Anora Mahmudova]
American Express Co. (AXP) �shares gained 3.6% after the credit card company said its fourth-quarter earnings more than doubled. Shares in rival Visa Inc. (V) � rose 4.7%
[By Dan Caplinger]
2. A simple savings account
Savings accounts aren't popular among financial institutions because they aren't big revenue generators. The profits from prepaid cards come from merchant charges that Visa (NYSE: V ) and MasterCard (NYSE: MA ) collect, keeping a portion and giving the rest to card-issuing institutions. That's likely where SpendSmart expects to get the money to pay Bieber's $3.75 million endorsement fee.
[By Ben Levisohn]
After last week’s record high, the S&P 500 looked poised for a breakout. Then reality took over, as Russian troops landed in Ukraine, world markets shuddered, and U.S. stocks followed suit thanks to drops in 3M (MMM), Visa (V) and Walt Disney (DIS).

Best Blue Chip Companies To Watch In Right Now: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:

[By Sara Murphy]
Joe also discusses particular risks to offshore oil rigs in the Gulf of Mexico. BP (NYSE: BP ) will have six rigs under firm contract there by December 2014, more than any other operator. Shell (NYSE: RDS-A ) will come in second with five rigs. Anadarko Petroleum (NYSE: APC ) is expected to have four operating rigs by then, followed by Chevron (NYSE: CVX ) with three under firm contract and ExxonMobil (NYSE: XOM ) (NYSE: XOM ) with two. Watch the following video to learn how climate change could affect these companies.
[By Matt Thalman]
Shares of Chevron (NYSE: CVX ) are down 1% today as the price of crude sinks. Just yesterday the stock was up 1.1% for the session, and I commented on how even at their current price, shares look rather cheap. The company is trading at less than 10 times earnings and pays a healthy 3.2% dividend yield. When we look at the company from a growth perspective, it doesn't look like a big winner with a market cap of $245 billion, so it's unlikely the stock will more than double in the coming years. But the strong dividend, combined with increasing worldwide demand for oil and energy, will make Chevron a stable winner for the years to come.

Wednesday, April 23, 2014

Canadaâ€™s Disinflation Woes Are Over

Shortly after last year's worry about what Canada's persistent disinflation might portend, the country's inflation rate started rising faster than expectations. Indeed, Canada's consumer price index (CPI) has now surpassed the consensus forecast for three consecutive months.

Although consumers often dread the prospect of rising prices, disinflation, or even outright deflation, can wreak far more havoc on an economy than inflation. And when a country is emerging from a period of economic weakness, inflation can be one of the first signs that an economy is revving up again.

According to Statistics Canada (StatCan), non-seasonally adjusted inflation rose 0.6 percent month over month, surpassing the consensus forecast by a substantial two-tenths of a percentage point, which was the same margin in each of the two prior months.

While Canada's inflation may be perking up, on a year-over-basis it's still toward the low end of the 1 percent to 3 percent target range that the Bank of Canada (BoC) uses to guide its monetary policy. The CPI rose 1.5 percent year over year in March, which was one-tenth of a point better than projected.

The goal of the BoC's monetary policy is to target the midpoint of the aforementioned range, though the CPI has not increased at a rate anywhere near 2 percent since April 2012. Instead, it's occupied the low end of the BoC's control range, even dipping below the 1 percent threshold seven times since November 2012, hence the central bank's concern about persistent disinflation.

Meanwhile, the core CPI, which excludes volatile items such as food and energy, climbed 1.3 percent year over year, which was in line with the consensus.

StatCan observed that the rise in CPI was led by energy prices, which climbed 4.6 percent year over year. In the BoC's latest Monetary Policy Report, the central bank said that the total CPI will likely outpace core CPI ! in the coming quarters due to higher energy prices at the consumer level.

Gasoline prices were up 1.4 percent, while the natural gas index increased 17.9 percent, following a 5.5 percent rise in February. Prices for electricity rose 5.0 percent, while prices for fuel oil increased 9.1 percent.

Of the eight major CPI components, six posted price gains on a year-over-year basis, particularly shelter, transportation and food.

Shelter costs were up 2.7 percent, after climbing 2.2 percent the previous month. StatCan notes that the increase in March was the largest since December 2010.

Prices for transportation rose 1.7 percent year over year, following a 0.4 percent rise in February.

And food prices were up 1.5 percent versus a year ago. Economists with CIBC World Markets expect food prices will continue to head higher in the coming months because key food-producing regions were disrupted by extreme winter weather. And the fact that Canada imports much of its food means that consumers will pay more due to the lower exchange rate.

The aforementioned BoC report was published just prior to the latest CPI data. However, the central bank's projections still seem in line with what the latest data suggest. While the bank believes core inflation will remain well below 2 percent at year end, it expects the total CPI to come much closer to its 2 percent target.

Even so, the BoC's near-term growth expectations have become somewhat more muted as of late, with its forecast for full-year 2014 gross domestic product (GDP) growth revised slightly lower to 2.3 percent from 2.5 percent.

The good news is that the lower estimate is largely the result of the unusually harsh winter's effect on first-quarter growth, rather than something more ominous. In the four quarters thereafter, the bank projects the economy will grow at a 2.5 percent rate, or even slightly higher.

In fact, the bank's forecast for full-year 2015 is for GDP growth of 2.5 percent. That's si! gnificant! because this rate was previously identified as the minimum growth necessary to remove excess capacity from the economy.

So Canada's economy is sustaining its upward trend, even if growth isn't quite as robust as we'd like it to be.

Tuesday, April 22, 2014

Mid-Day Market Update: Allergan Surges On Buyout Offer; Lexmark Shares Slip

Hot Integrated Utility Stocks To Buy Right Now

Related BZSUM Mid-Morning Market Update: Markets Gain; McDonald's Posts Lower Profit #PreMarket Primer: Tuesday, April 22: Japan Refocuses Massive Pension Fund

Midway through trading Tuesday, the Dow traded up 0.57 percent to 16,543.40 while the NASDAQ surged 0.95 percent to 4,160.65. The S&P also rose, gaining 0.49 percent to 1,881.02.

Leading and Lagging Sectors
In trading on Tuesday, healthcare shares were relative leaders, up on the day by about 1.50 percent. Meanwhile, top gainers in the sector included Allergan (NYSE: AGN), up 15.7 percent, and Idera Pharmaceuticals (NASDAQ: IDRA), up 16.5 percent. Non-cyclical consumer goods & services shares dropped around 0.05 percent in today's trading.

Top decliners in the sector included The Coca-Cola Company (NYSE: KO), off 0.3 percent, and Kimberly-Clark (NYSE: KMB), down 1.8 percent.

Top Headline
McDonald's (NYSE: MCD) reported a drop in its first-quarter profit. McDonald's posted its quarterly profit of $1.20 billion, or $1.21 per share, down from $1.27 billion, or $1.26 per share, in the year-ago period. Its total revenue rose to $6.70 billion versus $6.61 billion, while operating income slipped to $1.94 billion versus $1.95 billion. However, analysts were estimating earnings of $1.24 per share on revenue of $6.71 billion. McDonald's global same-store sales climbed 0.5%, while US same-store sales declined 1.7%. Equities Trading UP
Revance Therapeutics (NASDAQ: RVNC) shares shot up 14.01 percent to $32.63 after the company reported positive results from the RT002 Phase 1/2 study in glabellar (frown) lines.

Shares of Centene (NYSE: CNC) got a boost, shooting up 12.72 percent to $64.58 on upbeat quarterly results. Centene reported its Q1 earnings of $0.57 per share on revenue of $3.46 billion.

Allergan (NYSE: AGN) shares were also up, gaining 15.49 percent to $163.99 on buyout offer from Valeant Pharmaceuticals International (NYSE: VRX).

Equities Trading DOWN
Shares of Medidata Solutions (NASDAQ: MDSO) were 27.49 percent to $38.21 after the company reported downbeat quarterly results.

Lexmark International (NYSE: LXK) shares tumbled 10.80 percent to $41.72 after the company reported Q1 adjusted earnings of $0.92 per share on revenue of $877.70 million.

Koninklijke Philips NV (NYSE: PHG) was down, falling 5.52 percent to $32.68 after the company reported a drop in its Q1 profit.

Commodities
In commodity news, oil traded down 1.91 percent to $102.38, while gold traded down 0.52 percent to $1,281.80. Silver traded up 0.05 percent Tuesday to $19.36, while copper rose 0.10 percent to $3.03.

Eurozone
European shares were higher today.

The Spanish Ibex Index rose 1.37 percent, while Italy's FTSE MIB Index jumped 1.46 percent.

Meanwhile, the German DAX climbed 1.98 percent and the French CAC 40 jumped 1.18 percent while U.K. shares gained 0.89 percent.

Economics
The ICSC-Goldman same-store sales index gained 0.4% in the week ended Saturday versus the prior week.

The Johnson Redbook Retail Sales Index dropped 0.5% in the first two weeks of April versus March.

The FHFA house price index rose 0.60% in February, versus economists' expectations for a 0.50% growth.

The Richmond Fed manufacturing index rose to 7.00 in April, versus a prior reading of -7.00. However, economists were expecting a reading of 2.00.

Sales of existing homes declined 0.2% to an annual rate of 4.59 million in March, versus a rate of 4.6 million in February, the National Association of Realtors said. However, economists were projecting a sales rate of 4.55 million.

Posted-In: Earnings News Guidance Eurozone Futures Commodities Forex Global Econ #s Economics Intraday Update Markets Movers Tech

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Monday, April 21, 2014

Top 10 Medical Companies To Watch For 2014

Top 10 Medical Companies To Watch For 2014: Hemispherx Biopharma Inc (HEB)

Hemispherx Biopharma, Inc. (Hemispherx) is a specialty pharmaceutical company engaged in the clinical development of new drugs therapies based on natural immune system enhancing technologies for the treatment of viral and immune based chronic disorders. Hemispherx focuses on two core pharmaceutical technology platforms Ampligen and Alferon N Injection.The commercial focus for Ampligen includes application as a treatment for Chronic Fatigue Syndrome (CFS) and as an influenza vaccine enhancer (adjuvant) for both therapeutic and preventative vaccine development. Alferon N Injection is a United States Food and Drug Administration (FDA) approved product with an indication for refractory or recurring genital warts. Alferon LDO (Low Dose Oral) is a formulation under development targeting influenza. It has three subsidiaries BioPro Corp., BioAegean Corp., and Core BioTech Corp. The Company's foreign subsidiary is Hemispherx Biopharma Europe N.V./S.A.

Ampligen

Ampligen is an experimental drug, which is undergoing clinical development for the treatment of Myalgic Encephalomyelitis/Chronic Fatigue Syndrome (ME/CFS). Over 1,000 patients have participated in the Ampligen clinical trials representing the administration of more than 90,000 doses of this drug. The Company is also engaged in ongoing, experimental studies assessing the efficacy of Ampligen against influenza viruses.

Alferon N Injection

Alferon N Injection is the registered trademark for the Company's injectable formulation of natural alpha interferon. Interferons are a group of proteins produced and secreted by cells to combat diseases. The Company's natural alpha interferon is produced from human white blood cells. Alferon N Injection [Interferon alfa-n3 (human leukocyte derived)] is a highly purified, natural-source, glyc! osylated, multi-species alpha interferon product.

Alferon LDO (Low Dose Oral)

Alferon LDO [Low Dose Oral Interferon Alfa-n3 (Human Leukocyte Derived)]! is an experimental low-dose, oral liquid formulation of Natural Alpha Interferon and like Alferon N Injection should not cause antibody formation, which is a problem with recombinant interferon. It is an experimental immunotherapeutic that works by stimulating an immune cascade response in the cells of the mouth and throat, enabling it to bolster systemic immune response through the entire body by absorption through the oral mucosa.

The Company competes with Pfizer, GlaxoSmithKline, Merck, AstraZeneca, Baxter International, Fletcher/CSI, AVANT Immunotherapeutics, AVI BioPharma and Genta.

Advisors' Opinion:

[By MONEYMORNING]
Hemispherix Biopharma Inc. (NYSE: HEB) is a specialty pharmaceutical company. It engages in the clinical development of new drug therapies based on natural immune system enhancing technologies and targets the treatment of viral and immune-based clinical disorders. The Philadelphia, Pa.-headquartered company gained widespread attention over the last several months for its work on flu research. Its flagship products include Alferon N Injection, approved by the FDA for a category of sexually transmitted disease infection. Experimental treatments include Ampligen and Oragens, in development stages for the potential treatment of global viral diseases and disorders of the immune system including human papilloma virus, human immunodeficiency virus, chronic fatigue syndrome, hepatitis, and influenza. Shares have traded as low as $0.18 and as high as $0.55 over the last year. At last check, shares were changing hands around $0.50 on volume of 2 million shares.

source from Top Stocks Blog:http://www.topstocksblog.com/top-10-medical-companies-to-watch-for-2014-3.html

Sunday, April 20, 2014

Is There Any Value in OGX's Shares?

Eike Batista's spectacular fall from the billionaire's list is not the only outcome from the fall of his energy and infrastructure Brazilian empire. The shares of his flagship oil company OGX Petroleo e Gas Participacoes (OGXPY), which have fallen more than 95% year-to-date, have made investors across the world lose billions. The problem is simple: The company has an outstanding debt of more than $3.6 billion, which is substantially more than the value of all the company's assets. As a matter of fact, Credit Suisse's analysts estimate the value of OGX's assets to be around $1.9 billion. That said, a successful re-structuring of OGX's debt could leave some value left for currently existing shareholders.

Exercising an Outstanding Put Option

If OGX does exercise the $1.0 billion put option it has against its biggest shareholder, the company could gain time to re-negotiate its debt in order to get better conditions for the rest of its current owners. Out of the $1 billion, $100 million would be injected immediately and the remaining $900 million as the company needs it. Even when I have doubts about Eike's ability to honor the remaining $900 million, one $100 million deposit would boost the company's assets by more than 30% of today's total market capitalization (at $330 million).

The Coming Re-structuring

I am inclined to think that current relevant bondholders such as BlackRock (BLK) will not ask for a full liquidation of the company. Mainly because they could recover a higher percentage of their investment through agreeing to fair re-structuring terms. Here are the two re-structuring options that are currently being contemplated by most analysts.

1) Simple liquidation. This would leave equity holders with zero value. In this case (and this is extremely relevant) the value left for the bondholders depends on whether a deal with Petronas would happen or not. If there is a deal and bondholders force OGX's liquidation, bondholders would let go a relevant amount of assets! (40% of Tubarao Martelo and 20% of BS-4 would go to Petronas). In the that case a deal is not reached, bondholders would have 100% of all assets, but monetizing those assets under distressed conditions would come at a huge cost. For this reason, I think that bondholders will agree to a bonds-to-equity conversion.

2) Conversion of bond to equity. If the proportion of $330 million market cap and $3.6 billion of bonds is kept, bondholders would retain 91.6% of the assets (since today's implied enterprise value is equal to $3.93 billion). This implies that bondholders would immediately recover 48% of their initial value (91% of a total asset value of $1.9 billion).In this case, the book value left for shareholders is 8.4% of the total current asset base, which is equal to $160 million. That said, OGX's financial flexibility would be remarkably better off since the company would be freed from $300 million of interest payments per year.

Bottom Line

I think there is some value left for OGX's current shareholders but I do not think the current margin of safety is big enough. I would go long if and only if the company's market capitalization goes below $160 million (half today's price). The reason? In the case a bond-for-equity conversion takes place, I do not think bondholders would agree on a total enterprise value greater than $4 billion.

Saturday, April 19, 2014

The Secret to Happiness Isn't Income or a Lot of Stuff

5 Best Net Payout Yield Stocks To Buy Right Now

Gilligan's Island CBS/Getty ImagesAre Thurston Howell III and his wife Lovey really the types you should imitate? Would you like to be happy? Of course -- but how? How much income do you need to feel financially secure enough to feel happy? How should you spend the money you make to "buy happiness" -- if that's even possible? In 2012, a website opened up with a mission to quantify happiness and utilize vetted academic data from positive psychology to help lead people to a happy place. Its name: Happify.com. And as luck would have it, Happify.com has just released a short, colorful report on some of its findings. Recognize When Enough's Enough Citing data from a 2010 Princeton University study, Happify notes that an annual income of $75,000 is the sweet spot for personal happiness. After that, "salaries above $75,000 have no impact on our day-to-day feelings of happiness." That seems to defy logic. (If enough is enough, then shouldn't more than enough be better?) But research appears to confirm that after you reach a point of comfortable well-off-ness -- $75,000 being a good benchmark, 50 percent above the median annual household income in America -- you hit a point of diminishing returns. In terms of absolute wealth, once you can comfortably cover life's necessities -- and then some -- a little more cash doesn't matter. It's a different story for those who are focused on relative wealth and status (how much you have vs. your neighbor). In that case, there's always going to be someone you know or read about who's earning more. The research's conclusion: Catching up to Thurston Howell III is an impossible task, and you're more likely to be happy if you don't even try, and just content yourself with being significantly above average for income. Wake Up From the American Dream Another finding cited by Happify challenges the idea that the American dream of homeownership is one key to happiness. According to Happify (and others), "homeowners are ... no happier than renters. Owners often experience more burden than joy from their homes." Among other findings, the requirements of home upkeep -- repairing broken appliances, mowing the lawn and so on -- result in homeowners having less time to spend on leisure activities than do renters. Think a nicer car will make you a happier camper? Think again. Paying $60,000-plus for a new "super luxury" automobile may elicit envy from your friends, but as far as happiness goes, chances are you can be just as happy with an average car costing half as much. Happify cites a University of Michigan study that reports drivers of economy cars get no more of a "hedonic experience" while driving their cars than luxury vehicle owners experience. Or as Happify puts it, there's "no relationship between the Blue Book value of a car and the amount of enjoyment the owners got from driving it that day." On the other hand, Happify cites research that shows that for Americans over the age of 50, spending money on car payments and leisure activities made them happier than spending on their homes or on television. The theory is that spending is more gratifying when it goes toward things that make you feel more connected to others (and, in the case of a car, can physically transport you to others). Research found that spending on those two things increases optimism and reduces loneliness and depression. Spend the Rest of the Money the Right Way So what if you've followed Happify's advice so far -- making more than $75,000, downsized to an apartment and traded in the Lexus for a cheap jalopy? What should you do with the "extra" money, if it's really not doing much to make you happier? Happify cites research showing that when spending on yourself, you'll get more bang for your buck by spending on "experiences" (think a vacation, a trip to the theater or a five-course dinner) rather than "stuff." Research shows that while "shop therapy" can give a consumer's happiness an initial boost, "the initial joy of acquiring a new object ... fades over time as people become accustomed to seeing it every day." Experiences, in contrast, form memories that can be tucked away and mentally pulled out for reflection -- feeling almost new again -- an infinite number of times over the course of a person's lifetime. An even better idea may be to give away the money you don't need. It needn't be a lot. Research shows that donating just $5 to charity can make you happier than buying a $5 cup of coffee at Starbucks (SBUX). Spending money on yourself (and on a cup of coffee that, after all, will be gone in 10 minutes) doesn't hold a candle to the "experience" of knowing you helped out someone in need. The latter can generate warm feelings -- happiness -- for a lifetime.