Thursday, May 30, 2013

General Dynamics Is Building a Supertank

America's generals want a new tank, and General Dynamics (NYSE: GD  ) would love to build it for them.

On Thursday, the armored-vehicle specialist announced that its General Dynamics Land Systems subsidiary, or GDLS, is "leading an effort to develop the first North American combat vehicle with a fully integrated Active Protection System," or APS.

Having recently and successfully completed the critical design review stage of APS, GDLS says it will now move on to integrate APS onto a Light Armored Vehicle III test vehicle to demo the system's operation.

The APS system consists of a gun turret that revolves 360 degrees horizontally and fires a shotgun blast of pellets at incoming rocket-propelled grenades, aiming to detonate them before they make an impact with the defended vehicle. The aim is to replace heavy (and gas-guzzling) vehicle armor with a lightweight defense system that reduces the need for heavy armor to defend a vehicle. Asserts the company: APS "is the only technology capable of defeating certain threats without significantly sacrificing vehicle mobility and transportability."

Talk of Tapering Sends Stocks Sharply Lower

Stock markets started the day higher as Federal Reserve Chairman Ben Bernanke testified before Congress, but the mood quickly changed when he mentioned pulling back on bond purchases. Bernanke hinted that the Fed could slow down purchases in the next few months -- what's being called "tapering" -- if the job market continues to improve and the economy doesn't slow down. Stocks quickly dropped, and as of 3:15 p.m. EDT the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is off 0.47%, while the S&P 500 (SNPINDEX: ^GSPC  ) is down 0.84%.

Pfizer (NYSE: PFE  ) is one of only a few companies to buck the trend today, climbing 2%. Shareholders were offered the option to exchange shares of Pfizer for shares of Zoetis (NYSE: ZTS  ) , an animal-health company Pfizer is fully spinning off. Shares were offered at a 7% discount to shareholders who participate, and on June 19 the company will announce the final ratio shareholders will receive. This is part of an effort to sell assets that don't align with Pfizer's efforts to focus on human drugs and vaccines. In the end, it will help reduce Pfizer's shares outstanding.

After the market closes this afternoon, Hewlett-Packard (NYSE: HPQ  ) will release its much-anticipated fiscal-second-quarter earnings results. Analysts are expecting revenue to drop nearly 9% to $28 billion and earnings per share to fall to $0.81 from $0.98 a year ago. Investors will be focusing on how fast the PC business is declining and judging whether or not HP's other businesses will be able to pick up the slack going forward. This is still a high-risk stock, and I'd expect a strong reaction tomorrow based on whether results beat or miss expectations. 

The massive wave of mobile computing has done much to unseat the major players in the PC market, including venerable technology names like Hewlett-Packard. However, HP is rapidly shifting its strategy under the leadership of CEO Meg Whitman. But does this make HP one of the least-appreciated turnaround stories on the market, or is this a minor detour on its road to irrelevance? The Motley Fool's technology analyst details exactly what investors need to know about HP in our new premium research report. Just click here now to get your copy today.

Finally, commodities took a major hit today following Bernanke's comments. Gold is down 1.5%, and oil has fallen 0.9% today. The drop in gold is no surprise, because one of the theories about the shiny metal is that it becomes more valuable as the Fed prints more money. If the Fed stops printing, that thesis holds less water and will cause gold to drop. Tighter monetary policy is also pushing oil down, and recent government reports show that there's more than enough supply in the market.

Wednesday, May 29, 2013

Portland General Raises Dividend

Utility operator Portland General Electric  (NYSE: POR  )  announced yesterday its second-quarter dividend of $0.275 per share, a near-2% increase over last quarter's payout of $0.27 per share.

The board of directors said the quarterly dividend is payable on July 15 to the holders of record at the close of business on June 25.

Portland General Electric President and CEO Jim Piro said, "PGE's strong operations, prudent financial management, and focus on delivering value to both our customers and our shareholders makes it possible to provide the seventh consecutive annual dividend increase since going public in 2006."

The regular dividend payment equates to a $1.10-per-share annual dividend, yielding 3.5% based on the closing price of Portland General Electric's' stock on May 22.

POR Dividend Chart

POR Dividend data by YCharts

Tuesday, May 28, 2013

5 Best New Stocks To Invest In Right Now

On Thursday, Starbucks (NASDAQ: SBUX  ) 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 inevitable surprises arise. That way, you'll be less likely to make an uninformed, knee-jerk reaction to news that turns out to be exactly the wrong move.

Starbucks has recovered sharply from a crisis of confidence during the financial crisis, as customers returned to their coffee habit after the recession ended. Yet the company continues to face strong competitive pressures from several directions. Let's take an early look at what's been happening with Starbucks over the past quarter and what we're likely to see in its quarterly report.

5 Best New Stocks To Invest In Right Now: WaterFurnace Renewable Energy Inc (WFIFF)

WaterFurnace Renewable Energy, Inc. specializes in the design, manufacture and distribution of geothermal and water-source systems. It�� the United States subsidiary companies are WaterFurnace International, Inc. (WaterFurnace) and LoopMaster International, Inc. (LoopMaster). In December 2010, it incorporated two Australian subsidiaries: WaterFurnace International Asia Pacific Pty. Ltd. (WaterFurnace Asia Pacific) and Hyper WFI Pty. Ltd. (Hyper WFI). WaterFurnace designs, manufactures and distributes geothermal water source heating and cooling systems for residential, commercial and institutional buildings. LoopMaster installs geothermal loops for residential applications, does commercial conductivity testing and provides design and installation assistance. Hyper WFI designs, develops and builds devices that limit the inrush current, which electric motors draw upon start up. On January 21, 2011, the Company acquired inventory and fixed assets from Binary Engineering Pty. Ltd. Advisors' Opinion:
  • [By Tom Konrad]

    Waterfurnace has appeared in my annual picks several times over the years because they are a pure-play leader in geothermal heat pumps, which the US EPA calls "the most efficient way to heat and cool a building."  Heat pumps have a high up-front cost, and so they benefit from low interest rates and a high price of heating alternatives, such as natural gas.  Recent low natural gas prices have been hurting Waterfurnace's business, which has recently driven the stock price down and brought the dividend yield up to a very attractive 6.74%.

5 Best New Stocks To Invest In Right Now: SunPower Corp (SPWR)

SunPower Corporation, incorporated in April 1985, is a vertically integrated solar products and services company that designs, manufactures and delivers solar electric systems worldwide for residential, commercial, and utility-scale power plant customers. The Company operates in two business segments: the Utility and Power Plants (UPP) Segment and the Residential and Commercial (R&C) Segment. The UPP Segment refers to its solar products and systems business, which includes power plant project development and project sales, turn-key engineering, procurement and construction (EPC) services for power plant construction, and power plant operations and maintenance (O&M) services. UPP Segment also sells components, including huge volume of sales of solar panels and mounting systems to third parties, sometimes on a multi-year, firm commitment basis. The R&C Segment focuses on solar equipment sales into the residential and small commercial market through its third-party global dealer network, as well as direct sales and EPC and O&M services in the United States and Europe for rooftop and ground-mounted solar power systems for the new homes, commercial and public sectors. In May 2012, K Road Power Holdings, LLC (K Road) and SunPower Corp announced that K Road acquired the 25-megawatt (AC) McHenry Solar Project, which the Company designed. In January 2013, the Company MidAmerican Solar acquired the 579-megawatt Antelope Valley Solar Projects (AVSP), two co-located projects in Kern and Los Angeles Counties in Calif from SunPower.

In January 2012, the Company completed its acquisition of the wholly owned Total SA subsidiary Tenesol SA, a global solar provider. In September 2011, NRG Energy Inc. acquired 250 megawatt California Valley Solar Ranch (CVSR) project from SunPower. In June 2011, the Company introduced SunPower E20 Series Solar Panel (E20) series. The Company�� customers in its UPP Segment include investors, financial institutions, project developers, electric utilities, and independent po! wer producers in the United States, Europe, and Asia. In its R&C Segment, the Company primarily sells its products to commercial and governmental entities, production home builders, and its third-party global dealer network serving residential owners and small commercial building owners.

Solar Cells

The A-300 solar cell is a silicon solar cell with a specified power value of 3.1 watts and a conversion efficiency averaging between 20.0% and 21.5%. The Company�� A-330 solar cell delivers 3.3 watts with a conversion efficiency of up to 22.7%.

Solar Panels

The Company�� SunPower solar panel series include solutions, such as SunPower E18 Series Solar Panel (E18), SunPower E19 Series Solar Panel (E19), and SunPower E20 Series Solar Panel (E20). Available in a 72-cell configuration, the E18 series panel uses its A300 all back-contact solar cells and delivers a total panel conversion of 18.1% to 18.5%. Available in a 72, 96, and 128-cell configuration, the E19 series panel uses its A300 all back-contact solar cells and delivers total panel conversion of 19.3% to 19.7%. Available in a 96-cell configuration, the E20 series panel uses its A-330 all back-contact solar cells and delivers total panel conversion of up to 20.1%.

Inverters

The Company sells a line of SunPower branded inverters. The inverters are manufactured by third parties.

Roof Mounted Products

The roof mounted products include SunPower T-5 Solar Roof Tile System (T-5), SunPower T-10 Commercial Solar Roof Tiles (T-10), PowerGuard Roof System (PowerGuard) and SunTile Roof Integrated System (SunTile). Tilted at a 5-degree angle, the T-5 roof tile is a non-penetrating photovoltaic rooftop product that combines solar panel, frame, and mounting system. The T-5 solar roof tile systems are primarily sold through its R&C Segment.

Tilted at a 10-degree angle, the T-10 commercial solar roof tiles is a non-penetrating panel interlock system! . Dependi! ng on geographical location and local climate conditions, this can allow for the generation of up to 10% more annual energy output than traditional flat roof-mounted systems. The T-10 commercial solar roof tile is primarily sold through its R&C Segment.

PowerGuard is a non-penetrating roof-mounted solar panel that delivers electricity while insulating and protecting the roof membrane from ultraviolet rays and thermal degradation. The PowerGuard roof system is primarily sold through its R&C Segment. SunTile solar shingles are designed to replace multiple types of roof panels, including the common concrete flat, low and high profile S tile and composition shingles. The SunTile roof system is also sold through its R&C Segment.

Ground Mounted Products

The ground mounted products include SunPower T-0 Tracker (T-0) & SunPower T-20 Tracker (T-20), SunPower Oasis Power Plant (SunPower Oasis), SunPower C-7 Tracker (C-7), and Fixed Tilt and SunPower Tracker Systems for Parking Structures. The T-0 and T-20 trackers are single-axis tracking systems that automatically pivot solar panels to track the sun's movement throughout the day. This tracking feature increases the amount of sunlight that is captured and converted into energy by up to 30% over flat or fixed-tilt systems, depending on geographic location and local climate conditions. A single motor and drive mechanism can control 10 to 20 rows, or more than 200 kilo watts of solar panels. The T-0 and T-20 trackers have been installed in a range of geographical markets principally in the United States, Germany, Italy, Portugal, South Korea, and Spain. The T-0 and T-20 trackers are sold through both its UPP and R&C Segments.

The Oasis is a solar power block that scales from 1 mega watts distributed installations to central station power plants. Oasis provides a way to deploy utility-scale solar power systems, streaming the development and construction process while optimizing the use of available land. The SunPow! er Oasis ! is sold through its UPP Segment. The C-7 combines a horizontal single-axis tracker with rows of parabolic mirrors, reflecting light onto linear arrays of its solar cells. The C-7 tracker is sold through its UPP Segment. SunPower has developed designs for solar power systems for parking structures in multiple configurations. These dual-use systems typically incorporate solar panels into the roof of a carport or similar structure to deliver onsite solar power while providing shade and protection. They are suited for parking lots adjacent to facilities. Fixed Tilt and SunPower Tracker Systems for parking structures are sold through both its UPP and R&C Segments.

Other System Offerings

SunPower�� metal roof system is designed for sloped-metal roof buildings, which are used in some winery and warehouse applications. This solar power system is designed for rapid installation. It also offers other architectural products, such as day lighting with translucent solar panels.

Balance of System Components

Balance of system components are components of a solar power system other than the solar panels. It includes SunPower branded inverters, mounting structures, charge controllers, grid interconnection equipment, and other devices depending on the specific requirements of a particular system and project.

The Company competes with Canadian Solar Inc., JA Solar Holdings Co., Kyocera Corporation, Mitsubishi Corporation, Q-Cells AG, Sanyo Corporation, Sharp Corporation, SolarCity Corporation, SolarWorld AG, Sungevity, Inc., SunRun, Inc., Suntech Power Holdings Co. Ltd., Trina Solar Ltd., Yingli Green Energy Holding Co. Ltd., Abengoa Solar S.A., Acconia Energia S.A., AES Solar Energy Ltd., Chevron Energy Solutions, EDF Energy plc, First Solar Inc., NextEra Energy, Inc., OPDE Group, NRG Energy, Inc., Recurrent Energy, Sempra Energy, Skyline Solar, Inc., Solargen Energy, Inc., Solaria Corporation, SolFocus, Inc., SunEdison and Tenaska, Inc.

Hot Managed Healthcare Stocks To Buy Right Now: Alterra Power Corp (MGMXF.PK)

Alterra Power Corp., formerly Magma Energy Corp., is a global renewable power company. It operates six power plants totaling 570 megawatt of capacity, including two geothermal facilities in Iceland, a geothermal plant in Nevada, British Columbia�� run of river hydro facilities and the province�� wind farm. As of June 30, 2011, its share of this production capacity was 315 megawatt. The Company also has a portfolio of exploration and development projects. The Company owns two geothermal power generation plants (the Svartsengi and Reykjanes Plants) and two geothermal exploration projects in Iceland (Eldvorp and Krysuvik) through its interest in HS Orka. In addition, it owns one geothermal power generation plant in Nevada (the Soda Lake Operation). In May 2011, it acquired Plutonic Power Corp. During the fiscal year ended June 30, 2011 (fiscal 2011), it sold a 25% interest in HS Orka to Jardvarmi slhf (Jardvarmi), which is a company-owned by a group of Icelandic pension f unds.

5 Best New Stocks To Invest In Right Now: SunPower Corp (SPWR.O)

SunPower Corporation, incorporated in April 1985, is a vertically integrated solar products and services company that designs, manufactures and delivers solar electric systems worldwide for residential, commercial, and utility-scale power plant customers. The Company operates in two business segments: the Utility and Power Plants (UPP) Segment and the Residential and Commercial (R&C) Segment. The UPP Segment refers to its solar products and systems business, which includes power plant project development and project sales, turn-key engineering, procurement and construction (EPC) services for power plant construction, and power plant operations and maintenance (O&M) services. UPP Segment also sells components, including huge volume of sales of solar panels and mounting systems to third parties, sometimes on a multi-year, firm commitment basis. The R&C Segment focuses on solar equipment sales into the residential and small commercial market through its third-party global dealer network, as well as direct sales and EPC and O&M services in the United States and Europe for rooftop and ground-mounted solar power systems for the new homes, commercial and public sectors. In May 2012, K Road Power Holdings, LLC (K Road) and SunPower Corp announced that K Road acquired the 25-megawatt (AC) McHenry Solar Project, which the Company designed. In January 2013, the Company MidAmerican Solar acquired the 579-megawatt Antelope Valley Solar Projects (AVSP), two co-located projects in Kern and Los Angeles Counties in Calif from SunPower.

In January 2012, the Company completed its acquisition of the wholly owned Total SA subsidiary Tenesol SA, a global solar provider. In September 2011, NRG Energy Inc. acquired 250 megawatt California Valley Solar Ranch (CVSR) project from SunPower. In June 2011, the Company introduced SunPower E20 Series Solar Panel (E20) series. The Company�� customers in its UPP Segment include investors, financial instituti ons, project developers, electric utilities, and independen! t! power producers in the United States, Europe, and Asia. In its R&C Segment, the Company primarily sells its products to commercial and governmental entities, production home builders, and its third-party global dealer network serving residential owners and small commercial building owners.

Solar Cells

The A-300 solar cell is a silicon solar cell with a specified power value of 3.1 watts and a conversion efficiency averaging between 20.0% and 21.5%. The Company�� A-330 solar cell delivers 3.3 watts with a conversion efficiency of up to 22.7%.

Solar Panels

The Company�� SunPower solar panel series include solutions, such as SunPower E18 Series Solar Panel (E18), SunPower E19 Series Solar Panel (E19), and SunPower E20 Series Solar Panel (E20). Available in a 72-cell configuration, the E18 series panel uses its A300 all back-contact solar cells and delivers a total panel conversion of 18.1% to 18.5%. Available in a 72, 9 6, and 128-cell configuration, the E19 series panel uses its A300 all back-contact solar cells and delivers total panel conversion of 19.3% to 19.7%. Available in a 96-cell configuration, the E20 series panel uses its A-330 all back-contact solar cells and delivers total panel conversion of up to 20.1%.

Inverters

The Company sells a line of SunPower branded inverters. The inverters are manufactured by third parties.

Roof Mounted Products

The roof mounted products include SunPower T-5 Solar Roof Tile System (T-5), SunPower T-10 Commercial Solar Roof Tiles (T-10), PowerGuard Roof System (PowerGuard) and SunTile Roof Integrated System (SunTile). Tilted at a 5-degree angle, the T-5 roof tile is a non-penetrating photovoltaic rooftop product that combines solar panel, frame, and mounting system. The T-5 solar roof tile systems are primarily sold through its R&C Segment.

Tilted at a 10-degree angle, the T-10 commerci al solar roof tiles is a non-penetrating panel interlock! sys! tem! . Depe! nding on geographical location and local climate conditions, this can allow for the generation of up to 10% more annual energy output than traditional flat roof-mounted systems. The T-10 commercial solar roof tile is primarily sold through its R&C Segment.

PowerGuard is a non-penetrating roof-mounted solar panel that delivers electricity while insulating and protecting the roof membrane from ultraviolet rays and thermal degradation. The PowerGuard roof system is primarily sold through its R&C Segment. SunTile solar shingles are designed to replace multiple types of roof panels, including the common concrete flat, low and high profile S tile and composition shingles. The SunTile roof system is also sold through its R&C Segment.

Ground Mounted Products

The ground mounted products include SunPower T-0 Tracker (T-0) & SunPower T-20 Tracker (T-20), SunPower Oasis Power Plant (SunPower Oasis), SunPower C-7 Tracker (C-7), and Fixed Tilt and Su nPower Tracker Systems for Parking Structures. The T-0 and T-20 trackers are single-axis tracking systems that automatically pivot solar panels to track the sun's movement throughout the day. This tracking feature increases the amount of sunlight that is captured and converted into energy by up to 30% over flat or fixed-tilt systems, depending on geographic location and local climate conditions. A single motor and drive mechanism can control 10 to 20 rows, or more than 200 kilo watts of solar panels. The T-0 and T-20 trackers have been installed in a range of geographical markets principally in the United States, Germany, Italy, Portugal, South Korea, and Spain. The T-0 and T-20 trackers are sold through both its UPP and R&C Segments.

The Oasis is a solar power block that scales from 1 mega watts distributed installations to central station power plants. Oasis provides a way to deploy utility-scale solar power systems, streaming the development and construction process while optimizing the use of available land! . The Sun! ! Power Oas! is is sold through its UPP Segment. The C-7 combines a horizontal single-axis tracker with rows of parabolic mirrors, reflecting light onto linear arrays of its solar cells. The C-7 tracker is sold through its UPP Segment. SunPower has developed designs for solar power systems for parking structures in multiple configurations. These dual-use systems typically incorporate solar panels into the roof of a carport or similar structure to deliver onsite solar power while providing shade and protection. They are suited for parking lots adjacent to facilities. Fixed Tilt and SunPower Tracker Systems for parking structures are sold through both its UPP and R&C Segments.

Other System Offerings

SunPower�� metal roof system is designed for sloped-metal roof buildings, which are used in some winery and warehouse applications. This solar power system is designed for rapid installation. It also offers other architectural products, such as day lighting with tran slucent solar panels.

Balance of System Components

Balance of system components are components of a solar power system other than the solar panels. It includes SunPower branded inverters, mounting structures, charge controllers, grid interconnection equipment, and other devices depending on the specific requirements of a particular system and project.

The Company competes with Canadian Solar Inc., JA Solar Holdings Co., Kyocera Corporation, Mitsubishi Corporation, Q-Cells AG, Sanyo Corporation, Sharp Corporation, SolarCity Corporation, SolarWorld AG, Sungevity, Inc., SunRun, Inc., Suntech Power Holdings Co. Ltd., Trina Solar Ltd., Yingli Green Energy Holding Co. Ltd., Abengoa Solar S.A., Acconia Energia S.A., AES Solar Energy Ltd., Chevron Energy Solutions, EDF Energy plc, First Solar Inc., NextEra Energy, Inc., OPDE Group, NRG Energy, Inc., Recurrent Energy, Sempra Energy, Skyline Solar, Inc., Solargen Energy, Inc., Solaria Corporatio n, SolFocus, Inc., SunEdison and Tenaska, Inc! .

5 Best New Stocks To Invest In Right Now: Solazyme Inc (SZYM)

Solazyme, Inc. (Solazyme), incorporated on March 31, 2003, makes oil. The Company�� technology transforms a range of plant-based sugars into oils. Its renewable products can replace or enhance oils derived from the world�� three existing sources-petroleum, plants and animal fats. The Company is focused on commercializing its products into three target markets: fuels and chemicals, nutrition, and skin and personal care. In 2010, the Company launched its products, the Golden Chlorella line of dietary supplements. In March 2011, the Company launched its Algenist brand for the luxury skin care market through marketing and distribution arrangements with Sephora S.A. (Sephora International), Sephora USA, Inc. (Sephora USA), and QVC, Inc. (QVC).

The Company is engaged in development activities with multiple partners, including Chevron U.S.A. Inc., through its division Chevron Technology Ventures (Chevron), The Dow Chemical Company (Dow), Ecopetrol S.A. (Ecopetrol), Qantas Airways Limited (Qantas) and Conopoco, Inc., doing business as Unilever (Unilever).

In 2010, the Company entered into a 50/50 joint venture with Roquette Freres, S.A. (Roquette). In November 2010, the Company entered into a joint venture and operating agreement for Solazyme Roquette Nutritionals with Roquette. In December 2010, the Company entered into an exclusive distribution relationship with Sephora International, and in January 2011, the Company entered into a distribution relationship with Sephora USA. Under the arrangements, each of Sephora International and Sephora USA will distribute the Algenist product line in their respective territories.

In Fuels and Chemicals market its renewable oils can be refined and sold as drop-in replacements for marine, motor vehicle and jet fuels, as well as replacements for chemicals that are traditionally derived from petroleum or other conventional oils. The Company work with its refining partner Honeywell UOP to produce Soladiesel (renewable diesel), So! ladiesel renewable diesel for United States Naval vessels, and Solajet renewable jet fuel for both military and commercial application testing. In nutrition market the Company has developed microalgae-based food ingredients, including oils and powders that enhance the nutritional profile and functionality of food products while reducing costs for consumer packaged goods (CPG) companies. In Skin and Personal Care market the Company hs developed a portfolio of branded microalgae-based products. Its ingredient is Alguronic Acid, which the Company has formulated into a range of skin care products with anti-aging benefits. The Company is also developing algal oils as replacements for the oils used in skin and personal care products.

The Company competes with BP p.l.c., Royal Dutch Shell plc, and Exxon Mobil Corporation, jatropha, camelina, SALOV North America Corporation, Archer Daniels Midland Company, Cargill, Incorporated, DSM Food Specialties and Danisco A/S

Advisors' Opinion:
  • [By Roberto Pedone]

    Another under-$10 stock that's just starting to trigger a major breakout trade here is Solazyme(SZYM), which is in the business of transforming a range of low-cost plant-based sugars into high-value oils. This stock has been trending strong so far in 2013, with shares up by 21%.

    This company just reported earnings on Wednesday, posting a loss that met Wall Street's expectations but coming up short on beating revenue expectations. Revenue decreased 50.59% to $6.7 million from the year-earlier quarter.

    If you take a look at the chart for Solazyme, you'll notice that this stock has been uptrending strong for the last month, with shares soaring higher from its low of $7.15 to its intraday high of $9.86 a share. During that uptrend, shares of SZYM have been mostly making higher lows and higher highs, which is bullish technical price action. That move has started to push shares of SZYM into breakout territory and back above its 200-day moving average of $9.35 a share.

    Market players should now look for long-biased trades in SZYM if it manages to break out above some near-term overhead resistance levels at $9.50 to $9.90 a 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 556,451 shares. If that breakout triggers soon, then SZYM will set up to re-test or possibly take out its next major overhead resistance levels at $12 to $13 a share.

    Traders can look to buy SZYM off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $8.75 a share. One can also buy SZYM off strength once it clears those breakout levels with volume and then simply use a stop right below its 200-day moving average of $9.35 a share, or right below $9 a share.

    This stock is very popular with the short-sellers, since the current short interest as a percentage of the float for SZYM is extremely high at 21.7%. This stock has big time short-squeeze potential, so make sure to put this on your breakout trading radar.

Monday, May 27, 2013

Can Pandora Stand Up to Tech's Giants?

On Thursday, Pandora Media (NYSE: P  ) 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 inevitable surprises arise. 

Pandora has carved out a valuable niche in the Internet radio space, having had substantial success by offering personalized music options both to paying subscribers and as a free service. But apart from the competitive pressure from satellite radio, Pandora also has to deal with big names in the technology industry trying to muscle in on its business model. Let's take an early look at what's been happening with Pandora over the past quarter and what we're likely to see in its report.

Stats on Pandora

Analyst EPS Estimate

($0.10)

Year-Ago EPS

($0.09)

Revenue Estimate

$123.83 million

Change From Year-Ago Revenue

53%

Earnings Beats in Past 4 Quarters

4

Source: Yahoo! Finance.

Will Pandora keep in contact with earnings growth this quarter?
Analysts have gotten slightly more optimistic about Pandora's earnings prospects over the past few months, keeping their estimates for the just-ended quarter unchanged but reversing initial calls for a small loss in the current fiscal year to projections for a $0.01 per share profit. The stock has reflected that optimism, rising nearly 30% since mid-February.

Pandora has built up a huge audience of listeners, with over 70 million unique monthly users listening to more than 1.3 billion hours of content during April. Yet many of those listeners don't pay a dime for the service, and with high royalty costs hurting its profitability, in February Pandora implemented 40-hour-per-month limit on mobile users, charging $0.99 for those who want unlimited access.

But Pandora has faced increasing competition lately. Last month, Sirius XM Radio (NASDAQ: SIRI  ) launched its MySXM service, offering subscribers who have online-access plans the ability to create customized radio stations based on 50 of its channels. Then just last week, Google (NASDAQ: GOOG  ) introduced its Google All Access personalized radio service, although Google decided to skip over Pandora's key free-subscription audience by starting its service with a monthly rate of around $10.

Meanwhile, the elephant in the room is Apple (NASDAQ: AAPL  ) , which has reportedly been moving ever-closer to creating its own streaming-music service. Given the power of Apple's iTunes, a streaming service based on the data it already has on those who use its ecosystem of music listening and purchasing could have huge competitive advantages over Pandora and its other rivals. Moreover, with Google having already entered the fray, the pressure will be on Apple to respond quickly.

In Pandora's quarterly report, the key piece of information is how well the company does in converting existing free customers into paid subscribers. Unless Pandora can accelerate that process going forward, it will struggle to keep its stronghold over the Internet-radio industry while retaining any chance of becoming profitable in the near future.

Pandora has won millions of devotees among music fans but few supporters on Wall Street. The online jukebox seems to be redefining the way we consume music, but high royalty rates and competition from all corners threatens to silence the company. Learn more about the key opportunities and potential pitfalls facing the upstart radio streamer in The Motley Fool's new premium research report. All you have to do is click here now to subscribe to this invaluable investor's resource.

Click here to add Pandora to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

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More Expert Advice from The Motley Fool
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Sunday, May 26, 2013

Hot Beverage Stocks To Own Right Now

Shares of Monster Beverage (NASDAQ: MNST  ) rose nearly 5% Monday after the company's board of directors approved a $200 million share repurchase program. As management stated recently, the company had already used every penny of the $250 million it authorized for share repurchases less than five months ago, so it looks like they were just itching to continue increasing shareholders' slice of the pie.

Even so, I suppose this latest authorization shouldn't have come as much of a surprise considering the company managed to spend more than $737 million in 2012, buying back shares at an average price of $54.47 per share -- or about 3% below yesterday's closing price.

Does it make sense?
Okay, we get it; the folks at Monster are trying to send investors a not-so-subtle message that they think their stock is undervalued.

Hot Beverage Stocks To Own Right Now: Central European Distribution Corp (CEDCQ)

Central European Distribution Corporation (CEDC), incorporated on September 4, 1997, operates primarily in the alcohol beverage industry. CEDC is a producer of vodka and is Central and Eastern Europe�� integrated spirit beverages business. During the year ended December 31, 2011, as measured by total volume, the Company produced and distributed approximately 33.2 million nine-liter cases . The Company�� business primarily involves the production and sale of its own spirit brands (principally vodka), and the importation on a basis of a range of spirits, wines and beers. Its primary operations are conducted in Poland and Russia. In addition the Company also has operations in Hungary and Ukraine. CEDC has six manufacturing facilities located in Poland and Russia. On February 7, 2011, the Company completed purchasing of the remaining stake of the Whitehall Group.

CEDC is an importer of spirits, wines and beers in Poland, Russia and Hungary. The Company maintains import contracts for a number of internationally recognized brands, including Jim Beam Bourbon, Campari, Jagermeister, Remy Martin Cognac, Corona, Budweiser (Budvar), E&J Gallo wines, Carlo Rossi wines, Sutter Home wines, Metaxa Brandy, Sierra Tequila, Teacher�� Whisky, Cinzano, Old Smuggler, Grant�� Whisky and Concha y Toro wines. In addition to its operations in Poland, Russia, and Hungary the Company has Ukraine and distribution agreements for its vodka brands in a number of key export markets including the United Kingdom, Ukraine, the Baltics and the CIS for Green Mark, Zhuravli, Parliament and Zubrowka, the United States, Japan, the United Kingdom, France for Zubrowka and many other Western European countries. In 2011, exports represented 11% of its sales by value.

Poland

In Poland, CEDC is the vodka producers with a brand portfolio that includes Absolwent, Zubrowka, Zubrowka Biala, Bols, Palace and Soplica brands, each of which it produces at its Polish distilleries. It produces and sells vodka! s primarily in three vodka sectors: premium, mainstream, and economy. The Company owns two production sites in Poland: one in Oborniki and one in Bialystok. In the Oborniki distillery, it produces the Bols and Soplica vodka brands, among other spirit brands. In Bialystok it produces Absolwent and Zubrowka. Zubrowka is also exported out of Poland to many markets around the world, including the United States, England, Japan and also France. In addition to the Absolwent and Zubrowka brands, in Bialystok it produces the Zubrowka Biala brand. The Company has rights to import and distribute approximately 70 brands of spirits, wine and beer into Poland. It also provides marketing support to the suppliers. During 2011, the Company sold approximately 10.7 million nine-liter cases of vodka, wine and spirits through its Polish business during 2011 including both its own produced vodka brands as well as its exclusive agency import brands. During 2011, the Company sold approximately 191 thousand nine-liter cases of Zubrowka outside of Poland. During 2011, the Company�� Polish operations accounted for 26.3% of its revenue.

Russia

CEDC produces Green Mark in Russia and the sub-premium vodkas in Russia, Parliament and Zhuravli. During 2011 the Company introduced new brands to the Russian market Talka, Sotka and Silver Blend. The Company also produces Yamskaya, the economy vodka in Russia, and premixed alcohol drinks, or long drinks. The Company also owns Whitehall, which holds the exclusive rights to the import of such leading premium wine and spirit brands as Concha y Toro, Paul Masson, Robert Mondavi, DeKuyper, Jose Cuervo and Label 5. In addition to these import activities, Whitehall has distribution centers in Moscow, Saint Petersburg, and Rostov as well as a wine and spirits retail network located in Moscow. During 2011, the Company�� Russian operations accounted for 70.2% of its revenue. During 2011,the Company produced and sold approximately 16.6 million nine-liter cases of vodka th! rough its! Russian business in the main vodka segments in Russia: premium, sub-premium, mainstream, economy and cheap. In addition it produced and sold approximately 2.8 million nine-liter cases of long drinks.

Hungary

The Company sells Royal Vodka in Hungary through its Bols Hungary subsidiary. The imported brands to Hungary include Bols Vodka, Zubrowka, Royal Vodka, Campari, Cinzano, Jaegermeister, Bols Liqueurs, Cointreau, Carolans, Galliano, Irish Mist, Jose Cuervo, Calvados Boulard, Remy Martin, Metaxa, St Remy, Grant��, Glenfiddich, Tullamore Dew and Old Smuggler.

Hot Beverage Stocks To Own Right Now: Pepsico Inc.(PEP)

PepsiCo, Inc. engages in the manufacture, marketing, and sale of foods, snacks, and carbonated and non-carbonated beverages worldwide. The company operates in four divisions: PepsiCo Americas Foods (PAF); PepsiCo Americas Beverages (PAB); PepsiCo Europe; and PepsiCo Asia, Middle East, and Africa (AMEA). The PAF division offers Lay?s and Ruffles potato chips, Doritos and Tostitos tortilla chips and dips, Cheetos cheese flavored snacks, Fritos corn chips, Quaker Chewy granola bars, and SunChips multigrain snacks in North America; Quaker oatmeal, Aunt Jemima mixes and syrups, Cap?n Crunch cereal, Quaker grits, and Life cereal, as well as Rice-A-Roni, Pasta Roni, and Near East side dishes in North America; and various snack foods under Doritos, Marias Gamesa, Cheetos, Ruffles, Emperador, Saladitas, Sabritas, and Lay?s brands in Latin America. The PAB division provides carbonated soft drinks, beverage concentrates, fountain syrups, and finished goods under Pepsi, Mountain Dew, Gatorade, 7UP, Tropicana Pure Premium, Electropura, Sierra Mist, Epura, and Mirinda brands; ready-to-drink tea, coffee, and water products through joint ventures with Unilever and Starbucks; and sells concentrate to authorized bottlers, and branded finished goods directly to independent distributors and retailers. This division also manufactures third-party brands, such as Dr Pepper, Crush, Rock Star, and Muscle Milk. The PepsiCo Europe division offers Frito Lay Snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices, and Quaker foods in Europe. The AMEA division provides snack food under the Lay?s, Kurkure, Chipsy, Doritos, Smith?s, Cheetos, Red Rock Deli, and Ruffles brands; Quaker-brand cereals and snacks; and beverage concentrates, fountain syrups, and finished goods under the Pepsi, Mirinda, 7UP, and Mountain Dew brands. PepsiCo, Inc. was founded in 1898 and is headquartered in Purchase, New York.

Advisors' Opinion:
  • [By JON C. OGG]

    Pepsico, Inc. (NYSE: PEP) was most recently at $64.67 and the analyst community price target is $76.67.  Investors get a 3.2% dividend here and its shares are down 10% from its 52-week high. The price to book value is 4 and its return on equity is about 28%.  S&P has an “A” rating its local long-term system.  Pepsi is often considered to be more like Coca-Cola, but its snack food business gives it at least some of the same aspects of Kraft.  CEO Indra Nooyi has been performing well and growing its international operations.  We would not expect for Pepsi to break itself up.

Best Cheap Companies To Invest In Right Now: Fomento Economico Mexicano SAB de CV (FMX)

Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA), incorporated on May 30, 1936, is a holding company. The Company conducts its operations through principal holding companies, each of which it refers to as a principal sub-holding company. These companies are Coca-Cola FEMSA, S.A.B. de C.V. (Coca-Cola FEMSA), which engages in the production, distribution and marketing of soft drinks, and FEMSA Comercio, S.A. de C.V. (FEMSA Comercio), which operates convenience stores. The Company�� convenience store chain OXXO operated a total of 7,492 stores as of March 31, 2010. Compania Internacional de Bebidas, S.A. de C.V. (CIBSA) owns a 53.7% interest in Coca-Cola FEMSA. On April 30, 2010, FEMSA announced the closing of the transaction, pursuant to which FEMSA agreed to exchange 100% of its beer operations conducted by FEMSA Cerveza for a 20% economic interest in the Heineken Group. In February 2009, Coca-Cola FEMSA acquired with The Coca-Cola Company the Brisa bottled water business in Colombia from Bavaria, a subsidiary of SABMiller. Coca-Cola FEMSA acquired the production assets and the rights to distribute in the territory, and The Coca-Cola Company obtained the Brisa brand.

Coca-Cola FEMSA, S.A.B. de C.V.

Coca-Cola FEMSA is a bottler of Coca-Cola trademark beverages. Coca-Cola FEMSA operates in various territories, including Mexico, a substantial portion of central Mexico (including Mexico City and the states of Michoacan and Guanajuato) and southeast Mexico (including the Gulf region); Central America, including Guatemala (Guatemala City and surrounding areas), Nicaragua (nationwide), Costa Rica (nationwide) and Panama (nationwide); Colombia; Venezuela; Argentina, including Buenos Aires and surrounding areas, and Brazil, including the area of greater Sao Paulo, Campinas, Santos, the state of Mato Grosso do Sul, the state of Minas Gerais and part of the state of Goias.

Coca-Cola FEMSA produces, markets and distributes Coca-Cola trademark beverages, own brands and b! rands licensed from the Company. The Coca-Cola trademark beverages include sparkling beverages (colas and flavored sparkling beverages), water, and still beverages (including juice drinks, ready-to-drink teas and isotonics). Out of the more than 100 brands and line extensions of beverages sold and distributed by Coca-Cola FEMSA, its most important brand, Coca-Cola, together with its line extensions, Coca-Cola light, Coca-Cola Zero and Coca-Cola light caffeine free, accounted for 61.4% of total sales volume during the year ended December 31, 2009. Coca-Cola FEMSA�� next largest brands, Ciel (a water brand from Mexico), Fanta (and its line extensions), Sprite (and its line extensions), ValleFrut and Hit, accounted for 10.5%, 5.8%, 2.6%, 1.5% and 1.3%, respectively, of total sales volume in 2009. Coca-Cola FEMSA uses the term line extensions to refer to the different flavors in which it offers its brands.

Coca-Cola FEMSA produces, markets and distributes Coca-Cola trademark beverages in each of its territories in containers authorized by The Coca-Cola Company, which consist of a variety of returnable and non-returnable presentations in the form of glass bottles, cans and plastic bottles made of polyethylene terephtalate (PET). Coca-Cola FEMSA uses the term presentation to refer to the packaging unit in which it sells its products. Presentation sizes for its Coca-Cola trademark beverages range from a 6.5-ounce personal size to a 3-liter multiple serving size. For all of its products excluding water, Coca-Cola FEMSA considers a multiple serving size as equal toor larger than one liter. In addition, it sells some Coca-Cola trademark beverage syrups in containers designed for soda fountain use, which it refers to as fountain. It also sells bottled water products in bulk sizes, which refers to presentations equal to or larger than five liters, which have a much lower average price per unit case than its other beverage products.

In Mexico, Coca-Cola FEMSA�� product portfolio consis! ts of Coc! a-Cola trademark beverages, and includes Mundet trademark beverages licensed from FEMSA in some Mexican territories. Coca-Cola FEMSA�� product sales in Latincentro consist predominantly of Coca-Cola trademark beverages. Per capita consumption of its sparkling beverages products in Colombia and Central America was 92 and 146 eight-ounce servings, respectively, in 2009. Its product portfolio in Venezuela consists of Coca-Cola trademark beverages. Sparkling beverages per capita consumption of its products in Venezuela was 174 eight-ounce servings during 2009. Coca-Cola FEMSA�� product portfolio in Mercosur consists mainly of Coca-Cola trademark beverages, and the Kaiser beer brand in Brazil, which Coca-Cola FEMSA sells and distributes on behalf of FEMSA Cerveza. Sparkling beverages per capita consumption of its products in Brazil and Argentina was 214 and 359 eight-ounce servings, respectively, in 2009.

The Company competes with Pepsi Beverage Company, Grupo Embotelladores Unidos, S.A.B. de C.V., Grupo Jumex, Groupe Danone, Cadbury Schweppes, Big Cola, Consorcio AGA, S.A. de C.V., Postobon, Florida Ice and Farm Co. S.A., Cerveceria Nacional, S.A., Pepsi-Cola Venezuela, C.A., AmBev and Quilmes Industrial S.A.

FEMSA Comercio, S.A. de C.V.

FEMSA Comercio operates a chain of convenience stores in Mexico, under the trade name OXXO. OXXO stores are concentrated in the northern part of Mexico, but also have a presence in central Mexico and the Gulf coast. FEMSA Comercio is the largest single customer of FEMSA Cerveza and of the Coca-Cola system in Mexico. During 2009, a typical OXXO store carried 1,954 different store keeping units (SKUs) in 31 main product categories.

The Company competes with 7-Eleven, Super Extra, Super City, Circle-K and AM/PM.

Advisors' Opinion:
  • [By Jon Markman]

    Renowned trader, journalist and money manager Jon Markman finished one spot ahead of La Monica last year thanks to Hershey‘s (NYSE:HSY) 20% returns. This year, he’s trading in the sweets for emerging market pick Fomento Economico Mexicano (NYSE:FMX), often referred to asFemsa.

    While Markman thinks the U.S. will struggle with austerity in the coming months, he also believes that if we head just a little bit south, we will find one of the greatest potential growth profiles in the world: Mexico, where Femsa is based.

    “Femsa caters to more than 1.7 million retailers and 215 million consumers, and is the No. 1 beverage provider in every region that it operates in. The firm has grown revenues by 16% annually for the last 10 years,” he explains.

    In fact, last year, FMX tallied impressive 44% gains. On the next pullback, he says, it will be time to buy.

Hot Beverage Stocks To Own Right Now: Molson Coors Brewing Company(TAP)

Molson Coors Brewing Company brews, markets, sells, and distributes beer brands. It sells its products in Canada, under the Coors Light, Molson, Rickard's Red, Carling, Pilsner, Keystone Light, Creemore Springs, and Granville Island brands. The company also brews or distributes products under license from third parties, which include Heineken, Amstel Light, Murphy's, Asahi, Asahi Select, Miller Lite, Miller Genuine Draft, Miller Chill, Milwaukee's Best, Milwaukee's Best Dry, and Foster's. In addition, it imports, distributes, and markets the Corona, Coronita, Negra Modelo, and Pacifico brands, through a joint venture agreement with Grupo Modelo. Further, the company sells various brands in the United States, which include Coors Light, Miller Lite, Coors Banquet, Miller Genuine Draft, MGD 64, Miller Chill, Sparks, Miller High Life, Miller High Life Light, Keystone Light, Icehouse, Mickey's, Milwaukee's Best, Milwaukee's Best Light, Old English 800, Blue Moon, Henry Weinhard 's, George Killian's Irish Red, Leinenkugel's, Peroni Nastro Azzurro, Pilsner Urquell, Grolsch, Coors Non-Alcoholic, and Sharp's. Additionally, it sells various brands in the United Kingdom comprising Carling, C2, Coors Light, Worthington's, White Shield, Caffrey's, Kasteel Cru, and Blue Moon, as well as various regional ale brands. The company also sells the Grolsch brands through a joint venture with Royal Grolsch N.V. and the Cobra brands through a joint venture called Cobra Beer Partnership Ltd.; and distributes brands sold under license, including Corona, Coronita, Negra Modelo, Pacfico, Singha, and Magners Draught Cider. In addition, it markets and sells Zima, Si'hai, Coors Gold, and Coors Extra brands to various international markets. The company was formerly known as Adolph Coors Company and changed its name to Molson Coors Brewing Company as a result of its merger with Molson Inc. in February 2005. Molson Coors Brewing Company was founded in 1873 and is headquartere d in Denver, Colorado.

Saturday, May 25, 2013

Why Marketo Shares Soared Again

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

What: Shares of software automation company Marketo (NASDAQ: MKTO  ) surged 12% today on continued enthusiasm for its long-term growth prospects.

So what: The stock skyrocketed 75% on Friday when Marketo launched its IPO, so today's follow-up rally suggests that investor interest in the space only increasing. In fact, software gorilla Oracle recently acquired Marketo's main rival, Eloqua, which is probably giving traders the justification they need to keep bidding up Marketo.

Now what: With such strong cloud-computing trends working in its favor, Marketo is certainly worth following. "Buyers really want to deal with category leaders," said CEO Phil Fernandez. "I think the real demand is for pure play companies in each segment. That really lets us shine as that company." Of course, given just how much growth is baked into the stock right now, I'd wait for a big hiccup before buying into that bullishness.  

Interested in more info on Marketo? Add it to your watchlist.

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A Closer Look at BHP Billiton's Dividend Potential

LONDON -- Dividend income accounts for about two-thirds of total returns -- the actual rate of return, taking into account both capital and income appreciation. Given that share prices are often volatile and unpredictable, the potential for plump dividends can give shareholders much-needed peace of mind for decent returns.

I am currently looking at the dividend prospects of BHP Billiton (LSE: BLT  ) (NYSE: BBL  ) and assessing whether the company is an appetizing pick for income investors.

How does BHP Billiton's dividend history stack up?

 Metric

2009

2010

2011

2012

FY dividend per share

$0.82

$0.87

$1.01

$1.12

DPS growth

17.1%

6.1%

16.1%

10.9%

Dividend cover

2.4

2.6

3.9

2.9

Source: BHP Billiton company accounts.

BHP Billiton has managed to keep dividends rolling higher in recent years, even in times of severe earnings pressure -- dividend hikes in 2009 and 2012 came despite respective earnings-per-share declines of 30% and 18% for those years.

Dividend rises have been relentless, if erratic, while a mix of earnings volatility has also seen dividend cover subsequently shake during the period. However, coverage has still remained above the security benchmark of two times prospective earnings.

What are BHP Billiton's dividends expected to do?

Metric 

2013

2014

FY dividend per share

$1.10

$1.25

DPS growth

(1.8%)

13.6%

Dividend cover

2.1

2.2

Dividend yield

3.8%

4.3%

Source: Digital Look. Exchange rate: £1=$1.51889.

City analysts are expecting a 29% EPS slide for the year ending June 2013 to be accompanied by a slight drop in the annual dividend. However, an anticipated 25% earnings snapback in 2014 will result in a strong resumption of dividend growth, according to estimates.

BHP Billiton carried out severe restructuring of its senior management team earlier this month, stripping out a layer of management as part of its bid to improve operational efficiency and slash outgoings. The steps included the appointment of nonferrous-metals head Andrew Mackenzie as chief executive -- he replaces former head Marius Kloppers, who oversaw heavy cost increases in recent years as expenditure and costs spiraled.

The mining giant saw underlying earnings before interest, depreciation, taxes, and amortization drop a hefty 29.3% in 2012 to $13.2 billion, with total revenue slumping 14.1% during the period to $32.2 billion. The company has since announced severe capex scale-backs and divestments in an effort to improve the balance sheet and provide a stable platform for future growth.

How do BHP Billiton's dividend prospects rate against the competition?

 

Prospective Dividend Yield

Prospective P/E Ratio

Mining

256.1%

15.9

FTSE 100

3.1%

15.9

Source: Digital Look.

BHP Billiton currently trades on a P/E readout of 12.7 for 2013, trading at a discount to both the FTSE 100 and its mining counterparts. It also beats the U.K.'s main share index in terms of forward dividend yield, although a handful of companies distort the projected figure for BHP Billiton's fellow dirt-diggers.

Instead, it is worth comparing the firm's metrics with other diversified miners. Glencore Xstrata carries a prospective yield of 3% and trades on a P/E rating of 11.8. And Rio Tinto deals on a forward earnings multiple of 7.9 and boasts a potential yield of 4%.

Although BHP Billiton's ongoing restructuring plan is making huge strides in the right direction, I believe the firm still represents a risky pick for investors. Much work still has to be accomplished to improve the shape of the company and cut costs to respectable levels, in my opinion, while still-volatile commodity prices continue to cloud the miner's earnings outlook. I believe BHP's projected dividend yields can be achieved elsewhere and with less risk attached.

The expert's guide for intelligent investors
Although BHP Billiton currently presents too much risk in my opinion, this newly updated special report highlights a host of other FTSE winners identified by ace fund-manager Neil Woodford. Woodford, head of U.K. Equities at Invesco Perpetual, has more than 30 years' experience in the industry and boasts an exceptional track record when it comes to selecting stock market stars. The report, compiled by The Motley Fool's crack team of analysts, is totally free and comes with no further obligation. Click here now to download your copy.

Friday, May 24, 2013

Why the Street Should Love Grupo Aeroportuario del Sureste's Earnings

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

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

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, Grupo Aeroportuario del Sureste generated $157.8 million cash while it booked net income of $164.4 million. That means it turned 37.3% of its revenue into FCF. That sounds pretty impressive. However, FCF is less than net income. Ideally, we'd like to see the opposite.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at Grupo Aeroportuario del Sureste look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With 23.8% of operating cash flow coming from questionable sources, Grupo Aeroportuario del Sureste investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, other operating activities (which can include deferred income taxes, pension charges, and other one-off items) provided the biggest boost, at 18.9% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 22.7% of cash from operations. Grupo Aeroportuario del Sureste investors may also want to keep an eye on accounts receivable, because the TTM change is 3.0 times greater than the average swing over the past 5 fiscal years.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

Can your portfolio provide you with enough income to last through retirement? You'll need more than Grupo Aeroportuario del Sureste. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

Add Grupo Aeroportuario del Sureste to My Watchlist.

Thursday, May 23, 2013

Top 5 Financial Stocks To Own Right Now

Bank of America (NYSE: BAC  ) and Goldman Sachs (NYSE: GS  ) have been great stocks to own over the past year, and both companies were trading higher in early trading today.��However, investors who purchased shares at the beginning of 2011 have undoubtedly been disappointed as both stocks have significantly lagged the market.

In this video, Motley Fool banking analysts David Hanson and Matt Koppenheffer discuss these two companies and why shares might not be overheated today.

Is the legal-monkey off B of A's back or is there more yet to come? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, Financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.

Top 5 Financial Stocks To Own Right Now: K-reit Asia (K71U.SI)

K-REIT Asia Management Limited was incorporated in 2005 and is based in Singapore.

Top 5 Financial Stocks To Own Right Now: Genworth Financial Inc (GNW)

Genworth Financial, Inc., a financial security company, provides insurance, wealth management, investment, and financial solutions in the United States and internationally. The company offers various insurance and fixed annuity products, including life and long-term care insurance products; payment protection insurance products for consumers primarily to meet specified payment obligations; and wealth management products, such as managed account programs with advisor support and financial planning services. It also provides mortgage insurance products and related services to insure prime-based, individually underwritten residential mortgage loans or flow mortgage insurance; and mortgage insurance on a structured or bulk basis, as well as offers services, analytical tools, and technology that enable lenders to operate and manage risk. In addition, the company provides institutional products consisting of funding agreements, funding agreements backing notes, and guaranteed in vestment contracts. Genworth Financial, Inc. distributes its products and services through financial intermediaries, advisors, independent distributors, affinity groups, and sales specialists. The company was founded in 2003 and is headquartered in Richmond, Virginia.

Hot Biotech Companies To Invest In Right Now: Glen Burnie Bancorp(GLBZ)

Glen Burnie Bancorp operates as the holding company for The Bank of Glen Burnie that provides commercial and retail banking services to individuals, associations, partnerships, and corporations. The company?s deposit products include regular savings accounts, money market deposit accounts, demand deposit accounts, NOW checking accounts, individual retirement accounts, simplified employee pension accounts, Christmas Club accounts, and certificates of deposit. Its loan portfolio comprises residential and commercial real estate loans, construction loans, land acquisition and development loans, commercial loans, and overdraft protection lines of credit, as well as consumer installment lending, including indirect automobile lending. The company also offers various ancillary products and services, which include safe deposit boxes, money orders and travelers checks, night depositories, automated clearinghouse transactions, wire transfers, automated teller machines, telephone ban king, and customer call center services. It serves customers in northern Anne Arundel County and surrounding areas through eight branch offices in Glen Burnie, Odenton, Riviera Beach, Crownsville, Severn, Linthicum, and Severna Park, Maryland. The company was founded in 1949 and is based in Glen Burnie, Maryland.

Top 5 Financial Stocks To Own Right Now: New Hampshire Thrift Bancshares Inc.(NHTB)

New Hampshire Thrift Bancshares, Inc. operates as the holding company for Lake Sunapee Bank, fsb that provides banking and other financial services in New Hampshire and Vermont. The company accepts various deposit products, including business checking, money market accounts, savings, negotiable order of withdrawal, and certificate accounts. Its loan portfolio comprises real estate loans, real estate construction loans, consumer loans, commercial loans, and municipal loans. The company also sells brokerage, securities, and insurance products. It operates 28 branches in Grafton, Hillsborough, Sullivan, Chester, and Merrimack counties in west central New Hampshire; and in Rutland and Windsor counties in Vermont. The company was founded in 1868 and is headquartered in Newport, New Hampshire.

Top 5 Financial Stocks To Own Right Now: Capstead Mortgage Corporation (CMO)

Capstead Mortgage Corporation operates as a self-managed real estate investment trust. It invests in leveraged portfolio of residential mortgage pass-through securities consisting of adjustable-rate mortgage securities issued and guaranteed by government-sponsored enterprises or by an agency of the federal government. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 1985 and is headquartered in Dallas, Texas.

Wednesday, May 22, 2013

Dow Falls After Housing Data and Bernanke Disappoint

After being up for most of the day, blue-chip stocks have descended into negative territory after housing data and testimony from the Federal Reserve chairman disappointed analysts and investors. With roughly an hour remaining in the trading session, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is off by 39 points, or 0.25%.

Data released this morning showed that the nascent housing recovery is still on track, though it's not growing at the rate anticipated by economists. According to the National Association of Realtors, existing-home sales rose in April by 0.6% to the highest level since November 2009. While this equated to a 9.7% increase over the same month last year, economists surveyed by MarketWatch had nevertheless anticipated the number to come in marginally higher.

"The robust housing market recovery is occurring in spite of tight access to credit and limited inventory," said NAR chief economist Lawrence Yun. "Without these frictions, existing-home sales easily would be well above the [current] pace."

The nation's largest luxury-home builder, Toll Brothers (NYSE: TOL  ) , confirmed the generally positive trend in the housing market today with its fiscal second-quarter results -- click here to read the press release. While a comparison of the company's year-over-year earnings figures was rendered meaningless by a $13.2 million pre-tax gain related to the settlement of derivative litigation, its unit sales showed tangible improvement. Relative to the same three-month period last year, Toll's net signed contracts rose by 36%.

"Demand accelerated significantly this quarter," noted CEO Douglas Yearley. "Increased pricing power and stronger sales drove our agreements up 57% in dollars and 36% in units -- the highest for any quarter in seven years."

On a slightly less upbeat note -- at least so far as the stock market is concerned -- there's now reason to believe that the Federal Reserve may soon begin to reduce its massive monthly purchases in the bond market. Testifying before a congressional panel earlier today, Fed Chairman Ben Bernanke said that the central bank could begin winding down the $85 billion-a-month program at one of its "next few meetings" if it concludes that there's been "real and sustainable progress in the labor-market outlook." Click here for the official transcript of his testimony.

This testimony was seconded by the release of the minutes from the Fed's most recent monetary-policy meeting. The notes showed that a "number" of officials are ready to start tapering purchases as soon as the next meeting this June, while a "couple" said that the central bank might have to step up the program if conditions don't improve. A recap in The Wall Street Journal captured the Fed's predicament: "Fed officials are hesitant about their next step on monetary policy in part because they're especially uncertain about how the economy unfolds in the next few months, in the face of tighter fiscal policies."

It was this news that sent stocks lower this afternoon after they were generally up for much of the day. Shares of Wal-Mart (NYSE: WMT  ) are indicative of the trend, down 0.6%% at the time of writing. The retail giant disappointed analysts last week with worse-than-expected quarterly earnings for the three months ended April 30. Its same-store sales were particularly disconcerting, having dropped on a year-over-year basis for the first time since the summer of 2011. Investors today were likely reminded of Wal-Mart's tribulations after its primary competitor, Target, reported a similar experience.

One of the few Dow stocks headed higher, alternatively, is Home Depot (NYSE: HD  ) . The impetus for the move appears to be twofold. First, it still appears to be riding high on yesterday's earnings release, which beat expectations on both the top and bottom lines. And second, while the housing data released this morning missed the consensus estimate, it nevertheless showed a continued improvement in the sector that matters most to Home Depot and its investors.

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Tuesday, May 21, 2013

Hot Media Stocks To Buy For 2014

Poor Bank of America (NYSE: BAC  ) . After seeing its share price rise spectacularly in the week prior to its first-quarter earnings report, the stock took a real drubbing immediately after that report was issued. Today, it is getting beat up anew, and I think it is still feeling the consternation of investors about its less-than-sparkly earnings announcement.

Was the report really that bad? Sure, there were weak points, such as mortgage banking malaise, as well as continuing legal hassles in regards to its Countrywide smudge pot of stinky legacy loans. But there were bright spots, too: The streamlining process is working, and B of A has reduced nonperforming assets by $5 billion year over year. Plus, its Bank of America Merrill Lynch division is kicking butt, bringing home the bacon to the tune of $3.68 billion�-- a 7% boost from the year-ago quarter's $3.44 billion.

Hot Media Stocks To Buy For 2014: Comcast Corporation(CMCSA)

Comcast Corporation, together with its subsidiaries, provides entertainment, information, and communications products and services in the United States and internationally. Its Cable Communications segment provides video, high-speed Internet, and phone services to residential and business customers. As of June 30, 2011, its cable systems served approximately 22.5 million video customers, 17.5 million high-speed Internet customers, and 9.1 million phone customers. The company?s Cable Networks segment operates cable entertainment networks, such as USA Network, Syfy, E!, Bravo, Oxygen, Style, G4, Chiller, Sleuth, and Universal HD; news and information networks, including CNBC, MSNBC, and CNBC World; cable sports networks comprising Golf Channel and VERSUS; regional sports and news networks; international entertainment, and news and information networks, such as CNBC Europe, CNBC Asia, and Universal Networks International portfolio of networks; cable television production oper ations; and digital media properties consisting primarily of brand-aligned Websites and other Websites, such as DailyCandy, Fandango, and iVillage. Its Broadcast Television segment operates the U.S. broadcast networks, NBC and Telemundo; 10 NBC and 15 Telemundo owned local television stations; broadcast television productions; and related digital media properties. The company?s Filmed Entertainment segment operates Universal Pictures, which produces, acquires, markets, and distributes filmed entertainment and stage plays worldwide in various media formats for theatrical, home entertainment, television, and other distribution platforms. Its Theme Parks segment operates Universal Studios Hollywood park and Wet ?n Wild water park, as well as licenses intellectual properties and provides services to third parties that own and operate Universal Studios Japan and Universal Studios Singapore. Comcast Corporation was founded in 1963 and is based in Philadelphia, Pennsylvania.

Advisors' Opinion:
  • [By James K. Glassman]

     Comcast (symbol: CMCSA) is the nation's biggest cable operator and the owner of NBCUniversal and its TV, movie and theme-park businesses. As the number of broadband Internet subscribers increases, Comcast is emerging as one of the most adept players on the changing telecom scene. Earnings are expected to rise 14% in 2013; for that kind of growth, the stock’s P/E of 17 is modest.

  • [By Keith]

    In Q3 2010, he started shedding CMCSK shares by selling 11,626,206 shares at an average price of $17.19. He topped it off by selling 373,794 shares at an average price of $19.15 in Q4 2010. He has no shares left.

    In 2010, revenues grew by 6.10% to $37.93 billion, and GAAP EPS rose by 2.38% to $1.29. The EBT margin also improved to 16.09% from 14.28%. The next earnings release is on May 3. For Q1 2011, analysts estimate Comcast will earn $0.35 per share, an increase of 13.02% over Q1 2010, and revenues of $11.7 billion, an increase of 26.77% over Q1 2010. With a net margin of 10.3%, Comcast is not only profitable but is more profitable than the Media industry median. The company also has a debt to equity ratio of 0.67.

    We believe that Comcast will continue to increase revenues at a modest pace, and that it will turn around NBC. We place a price target of $30, and so at these price levels, you should buy. CMCSA currently yields 1.8%, and CMCSK currently yields 1.9%.

Hot Media Stocks To Buy For 2014: Charter Communications Inc.(CHTR)

Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. The company offers cable video programming services, such as basic and digital video, premium channels, OnDemand, pay-per-view, high definition television, digital video recorder, and online video services; Internet services; Charter.net, which provides multiple e-mail addresses, as well as various entertainment, games, news, and sports content; and telephone services. It also provides broadband communications solutions, such as Internet access, data networking, fiber connectivity to cellular towers and office buildings, video entertainment services, and business telephone services under the Charter Business brand name to business and carrier organizations. As of December 31, 2011, the company served approximately 4.1 million video customers; approximately 3.5 million Internet customers; appr oximately 1.7 million telephone customers; and approximately 476,200 commercial primary service units. Charter Communications, Inc. was founded in 1999 and is based in St. Louis, Missouri.

5 Best Consumer Stocks To Invest In 2014: Time Warner Inc.(TWX)

Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Filmed Entertainment, and Publishing. The Networks segment provides domestic and international networks, premium pay and basic tier television programming services, and digital media properties, which primarily consist of brand-aligned Websites. Its premium pay television services consist of the multi-channel HBO and Cinemax premium pay television services. This segment provides programming to cable system operators, satellite service distributors, telephone companies, and other distributors; sells advertising; and licenses original programming to domestic and international television networks. The Filmed Entertainment segment produces and distributes feature films, television and other programming, and videogames; distributes home video products; and licenses rights to its feature films, television programming, and characters. T he Publishing segment publishes magazines and books; and operates various Websites, as well as engages in marketing services and direct-marketing businesses. This segment publishes magazines on style and entertainment, lifestyle, news, and sports. The company?s brands include TNT, TBS, CNN, HBO, Cinemax, Warner Bros., New Line Cinema, People, Sports Illustrated, and Time. Time Warner Inc. was founded in 1985 and is headquartered in New York, New York.

Advisors' Opinion:
  • [By Cutler]

    Miller holds $247 Million of TWX shares. TWX returned 28.3% during the past year. Miller reduced his Time Warner stake by 14% in the 4th quarter. TWX gained 14% since then, outperforming the SPY by 8.3 percentage points.

Hot Media Stocks To Buy For 2014: Time Warner Cable Inc(TWC)

Time Warner Cable Inc., together with its subsidiaries, operates as a cable operator in the United States. It offers video, high-speed data, and voice services over its broadband cable systems to residential and commercial customers. The company provides a range of video services, including on-demand, high-definition (HD), and digital video recorder (DVR) services; residential high-speed data services with connection to the Internet; wireless mobile broadband Internet services; and digital phone services to residential customers. It offers video programming tiers and music services; high-speed data, networking, and transport services; and commercial digital phone service to small and medium-sized businesses under the Time Warner Cable Business Class brand. Further, Time Warner Cable Inc. sells advertising to various national, regional, and local customers. As of June 30, 2011, the company served approximately 14.5 million residential and commercial customers in the New Yor k State, the Carolinas, Ohio, southern California, and Texas. Time Warner Cable Inc. is based in New York, New York.

Advisors' Opinion:
  • [By John Reese]

    Time Warner Cable, Inc. (NYSE:TWC): On 3/31/11 Viking Global Investors reported holding 7,721,684 shares with a market value of $550,864,908. This comprised 4.75% of the total portfolio. On 6/30/11, Viking Global Investors held 9,058,812 shares with a market value of $706,949,697. This comprised 5.92% of the total portfolio. The net change in shares for this position over the two quarters is 1,337,128. About the company: Time Warner Cable, Inc. offers cable television subscription services.? The Company also offers Internet access and voice over Internet protocol telephone services.

Hot Media Stocks To Buy For 2014: DIRECTV(DTV)

DIRECTV provides digital television entertainment in the United States and Latin America. The company provides direct-to-home (DTH) digital television services, as well as multi-channel video programming distribution services in the United States. It offers various channels of digital-quality video entertainment and CD-quality audio programming directly to subscribers' homes or businesses, as well as video-on-demand services; and approximately 160 national high-definition television channels and 4 3D channels. The company also provides premium professional and collegiate sports programming, such as the NFL SUNDAY TICKET package, which allows subscribers to view the NFL games. In addition, it offers DTH digital television services in Latin America and the Caribbean, including Puerto Rico. The company provides its local and international programming under the DIRECTV and SKY brand names. As of December 31, 2010, it served approximately 19.2 million subscribers in the United States; and 8.9 million subscribers in Latin America. The company was founded in 1990 and is based in El Segundo, California.

Advisors' Opinion:
  • [By Scott Rothbort]

    DirecTV(DTV) provides digital home entertainment to over 27 million direct subscribers and nearly 4 million partnered subscribers in the U.S. and Latin America. The company added nearly 2 million subscribers in 2011. ARPU (average revenue per subscriber) increased 3.5% in the U.S. and nearly 12% in Latin America so far this year. Earnings are expected to grow by over 30% in both 2011 and 2012. The stock sells at just 10.5 times 2012 estimates.

    Compare that with forward price-to-earnings for competitors such as Time Warner Cable(TWC), at 11.2; Cablevision(CVC), at 11.4; and Comcast(CMCSA), 11.5. The stock is an excellent generator of cash flow. That said, if there is one issue I have with DirecTV management, it is its insistence on increasing leverage to repurchase stock.

    DirecTV's raw beta is 0.85.

    DirecTV, one of George Soros' top holdings, was also one of Warren Buffett's 6 New Investments in the most recently reported quarter.

Hot Media Stocks To Buy For 2014: News Corporation(NWSA)

News Corporation operates as a diversified media company worldwide. Its Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, and movie programming for distribution through cable television systems and direct broadcast satellite operators primarily in the United States, Latin America, Europe, and Asia. The company?s Filmed Entertainment segment produces and acquires live-action and animated motion pictures for distribution and licensing in entertainment media, as well as produces and licenses television programming worldwide. Its Television segment operates 27 broadcast television stations in the United States. The company?s Direct Broadcast Satellite Television segment distributes programming services via satellite and broadband directly to subscribers in Italy. Its Publishing segment provides newspapers and information services, such as publishing national newspapers in the United Kingdom, approximately 146 newspapers in Australia, and a metropolitan and a national newspaper in the United States; book publishing services, including the publishing of English language books worldwide; and integrated marketing services comprising the publishing of free-standing inserts, which are marketing booklets containing coupons, rebates, and other consumer offers, as well as provides in-store marketing products and services, primarily to consumer packaged goods manufacturers in the United States and Canada. The company also sells advertising, sponsorships, and subscription services on the company?s various digital media properties and outdoor advertising space on various media primarily in Russia and eastern Europe; and provides data systems and professional services that enable teachers to use data to assess student progress and deliver individualized instructions. News Corporation was founded in 1922 and is headquartered in New York, New York.

Advisors' Opinion:
  • [By Jonas Elmerraji]

    Nearest Support: $32

    Catalyst: Earnings Beat/Spinoff

    Media conglomerate News Corp. (NWSA) is up more than 4% this afternoon following an earnings beat for its third quarter of fiscal 2013 and plans to spin off the firm's publishing arm. News Corp.'s TV unit fared well in the third quarter, buoyed by especially strong performance at cable network Fox News, and shares gapped up before this morning's open as a result. That pushed the $77 billion stock to new 52-week highs.

    Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. Traders who aren't too risk-averse may want to consider buying NWSA here.

  • [By ChemTrade]

    News Corp. (NASDAQ:NWSA): On 3/31/11 Viking Global Investors reported holding 20,075,700 shares with a market value of $352,930,804. This comprised 3.05% of the total portfolio. On 6/30/11, Viking Global Investors held 27,358,266 shares with a market value of $484,241,329. This comprised 4.06% of the total portfolio. The net change in shares for this position over the two quarters is 7,282,566. About the company: News Corporation is a diversified global media company.? The Company’s operations include the production and distribution of motion pictures and television programming.? The Company provides television, direct satellite, and cable broadcasting and the publication of newspapers, magazines, books and promotional inserts.

Monday, May 20, 2013

10 Best Computer Hardware Stocks For 2014

On April 18, 2013, Vanda Pharmaceuticals (VNDA) stock reached a 52 week high. Why?

Until recently, many investors had given up on the Washington, DC-based pharmaceutical company. The reason was Fanapt (iloperidone), an atypical antipsychotic for the treatment of schizophrenia, that not only had a rocky regulatory history, but was a big dud at the sales counter.

Tasimelteon is the reason why some investors have regained or developed an interest in Vanda. Tasimelteon is the first compound being developed for the treatment of Non-24 Sleep Disorder. Recently, tasimelteon successfully completed Phase 3 clinical trials for the treatment of a circadian rhythm sleep disorder.

Vanda is also developing VLY-686, a small molecule neurokinin-1 receptor (NK-1R) antagonist that has indications for chemotherapy-induced nausea and vomiting, post-operative nausea and vomiting, alcohol dependence, anxiety, depression, and pruritus. Vanda licensed the investigational drug from Eli Lilly and Company (LLY).

10 Best Computer Hardware Stocks For 2014: China Coal Corporation (CKO.V)

China Coal Corporation, a development stage company, engages in identifying, acquiring, and developing coal mines in the People�s Republic of China. The company holds interests in a coal bed methane property covering a net area of approximately 1,941 square kilometers in the eastern Dananhu Coalfield, Hami Prefecture, Xinjiang Province. It also has an agreement to acquire a 60% interest in the Mei Feng coal mine located west of Urumqi, Xinjiang. The company is headquartered in Calgary, Canada.

10 Best Computer Hardware Stocks For 2014: Ion Geophysical Corporation (IO)

ION Geophysical Corporation provides planning and seismic processing services, software, and acquisition equipment to the energy industry worldwide. Its Solutions segment provides seismic data processing services for marine and land environments, reservoir solutions, onboard processing and quality control, and seismic data libraries, as well as services to manage the seismic process that comprise survey planning and design, data acquisition and management, pre-processing, and final subsurface imaging. The company�s Systems segment offers DigiSTREAMER system, a towed streamer; redeployable ocean bottom cable seismic data acquisition systems; shipboard recorders; DigiCOURSE, a marine streamer positioning system; DigiFIN streamer control systems; source and source control systems, such as air guns; and analog geophone sensors. Its Software segment provides software systems and services comprising Orca, a command and control software for towed streamer acquisition; Gator, an integrated navigation and data management software system for multi-vessel ocean bottom cable and transition zone operations; and post-survey tools, including Reflex software for seismic coverage and attribute analysis, as well as Optimiser, a technology planning tool. This segment also offers consulting services for planning, designing, and supervising surveys, including 4D and WATS survey operations. ION Geophysical Corporation also offers cable-based, cable less, and radio-controlled seismic data acquisition systems; digital sensors; vibroseis vehicles, such as vibrator trucks; and source controllers for detonator and energy sources. The company was formerly known as Input/Output, Inc. ION Geophysical Corporation was founded in 1968 and is headquartered in Houston, Texas.

Best Oil Stocks To Buy For 2014: Phos (FOS.TO)

PhosCan Chemical Corp., a development stage company, engages in acquiring, exploring, and developing mineral and natural resource properties in Canada. It holds a 100% interest in the Martison Phosphate project consisting of phosphate deposits located in north of Hearst, Ontario. The company was formerly known as MCK Mining Corp. and changed its name to PhosCan Chemical Corp. in July 2006. PhosCan Chemical Corp. was founded in 1994 and is based in Toronto, Canada.

10 Best Computer Hardware Stocks For 2014: Intersections Inc.(INTX)

Intersections Inc. provides subscription based consumer protection services and other consumer products and services primarily in the United States. The company operates in three segments: Consumer Products and Services, Online Brand Protection, and Bail Bonds Industry Solutions. The Consumer Products and Services segment offers credit reports; daily, monthly, and quarterly monitoring of subscriber?s credit files; reports and monitoring services based on additional information sources; and credit scores and credit score analysis tools, credit education, identity theft recovery services, identity theft cost reimbursement, and software and other technology tools to protect against identity theft. Its products and services also include consumer discounts on healthcare, home, and auto related expenses; access to professional financial and legal information; and life, accidental death, and disability insurance, as well as distributes online privacy protection software. This seg ment markets its products and services to credit card, direct deposit, or mortgage issuing financial institutions. The Online Brand Protection segment provides online brand protection services, including online channel monitoring, auction monitoring, and other services to corporate brand owners or law firms, as well as offers forum, blog, and newsgroup monitoring. The Bail Bonds Industry Solutions segment offers automated service solutions for the bail bonds industry, which include accounting, reporting, and decision making tools that allow bail bondsmen, general agents, and sureties to run their offices, to exercise operational and financial control over their businesses, and to make underwriting decisions. The company was founded in 1996 and is headquartered in Chantilly, Virginia.

Advisors' Opinion:
  • [By Vatalyst]

    Shares are trading around $15.50 at the time of writing, in the middle of their 52-week trading range of $8.20 to $23.00. At the current market price, the company is capitalized at $262.68 million. Earnings per share for the last year were $1.38, and it paid a dividend of $0.80, yielding 5.20%.

    Intersection’s business of consumer protection services is one of the growth industries in a world where online fraud is becoming big business. Its price to earnings ratio of 11.29 is undemanding when compared to the industry average of 21, and also to direct competitor Equifax Inc (EFX) which trades on a multiple of 17.9. This said, its operating margin of 9.33% (from a gross margin of 73%) is low compared to Equifax’s 23% from a gross margin of 60%. However, management has indicated its confidence in the company’s prospects and its ability to control cots going forward by raising the dividend by 33% for the last quarter. Equifax shares yield just 1.90%. In a market where credit rating data, and consumer credit protection will likely become more important, the shares are a buy for dividend investors.

10 Best Computer Hardware Stocks For 2014: Valgold Resources Ltd. (VAL.V)

ValGold Resources Ltd. engages in the exploration and development of mineral properties in Canada. The company explores for gold, silver, lead, and zinc deposits in Western Ukraine. It holds a 75% interest the MBK Project located in western Ukraine; a 100% interest in the Tower Mountain gold property that comprises 55 claims covering an area of 3,875 acres located in the Shebandowan Gold Belt, northwestern Ontario; and Venezuela Properties that cover a total area of approximately 162,768 acres. ValGold Resources Ltd. was founded in 1987 and is based in Vancouver, Canada.

10 Best Computer Hardware Stocks For 2014: Open Text Corporation (OTEX)

Open Text Corporation develops, markets, sells, licenses, and supports enterprise content management (ECM) solutions primarily in North America and Europe. The company?s ECM software and solutions enable customers to manage various types of enterprise content, including business documents, Web content, records, digital assets, email, forms and reports, forums, blogs, wikis, and real time instant messaging and collaboration. Its ECM solutions comprise various components, including document management, which provides repository for business documents, such as Microsoft office, CAD, and PDF; collaboration that offers tools designed to better facilitate people working with each other with content and processes; Web content management, which provides tools for authoring, maintaining, and administering sophisticated Web sites; and records management that enables control of the lifecycle of content objects by associating robust retention and disposition rules with each content as set. The company?s ECM solutions also provide email management services designed to enable the archiving, control, and monitoring of email; capture and delivery tools that provide the means of converting documents from analog sources; digital asset management; business process management services; content reporting tools for analyzing content and generating reports; and Open Text Everywhere that allows the Open Text ECM suite to be available via mobile devices. In addition, it offers industry specific solutions for government, technology/manufacturing, energy, financial services, pharmaceutical and life sciences, legal, and media sectors. Additionally, the company provides learning, consulting, hosting, and customer support and training services. It has strategic alliances with Microsoft Corporation, Oracle Corporation, and SAP AG. The company was founded in 1991 and is headquartered in Waterloo, Canada.

10 Best Computer Hardware Stocks For 2014: Tsodilo Resources Limited (TSD.V)

Tsodilo Resources Limited engages in the acquisition, exploration, and development of mineral properties in the Republic of Botswana. It holds 96% interest in the Ngamiland project consisting of 9 diamond prospecting licenses covering an area of approximately 3,940 square kilometers located in northwest Botswana. The company also holds interests in the Gcwihaba diamond project comprising 6 diamond prospecting licenses covering an area of approximately 2,546 square kilometers in northwest Botswana. In addition, it holds 18 prospecting licenses for base and precious, platinum group metals, and rare earth elements covering an area of approximately 12,118 square kilometers, as well as 8 prospecting licenses for radioactive minerals covering approximately 7,000 square kilometers in northwest Botswana. The company was formerly known as Trans Hex International Ltd. and changed its name to Tsodilo Resources Limited in April 2002. Tsodilo Resources Limited was founded in 1995 and i s headquartered in Toronto, Canada.

10 Best Computer Hardware Stocks For 2014: Princeton National Bancorp Inc.(PNBC)

Princeton National Bancorp, Inc. operates as the holding company for Citizens First National Bank, which provides commercial banking and trust services to individuals, businesses, and governmental bodies in Illinois. The company provides consumer services, such as demand, savings, and time deposit accounts; home mortgage loans; installment loans; and brokerage services. It also offers secured and unsecured commercial loans, including real estate loans to companies and individuals for business purposes, and to governmental units; and agricultural and agricultural real estate loans secured by crops, machinery, and real estate to finance capital improvements and farm operations, as well as acquisitions of livestock and machinery. In addition, the company offers ATM and debit cards, and Internet banking services. Further, it provides insurance and farm management services; and equity, bond, and mutual fund portfolio management services. As of December 31, 2010, it managed or a dministrated 907 trust accounts. The company operates through 21 offices in 17 in Aurora, DePue, Genoa, Hampshire, Henry, Huntley, Millbrook, Minooka, Newark, Oglesby, Peru, Plainfield, Plano, Princeton, Sandwich, Somonauk, and Spring Valley; and 25 automated teller machines. Princeton National Bancorp, Inc. was founded in 1865 and is headquartered in Princeton, Illinois.

10 Best Computer Hardware Stocks For 2014: United Business Media plc ord(UBM.L)

UBM plc engages in the provision of data, media and business to business (B2B) communications, and marketing services worldwide. The company operates in five segments: Events, PR Newswire, Data Services, Marketing Services-Online, and Marketing Services-Print. The Events segment organizes industry exhibitions and conventions, conferences, forums, fairs, tradeshows, and other live in person events that enable communities to do business. The PR Newswire segment offers communications products and services to professionals working in marketing, public relations, corporate communications, or investor relations roles in businesses, government, and other non-commercial organizations. This segment also distributes its clients? messages and information. The Data Services segment provides data and information products, including data-based workflow products, intellectual property consultancy and analytical services, and sales lead generation programs that support professionals. The Marketing Services-Online segment offers Website sponsorships and banner advertising, as well as online directory products. The Marketing Services-Print segment publishes magazines and trade press to specialist markets. The company markets its products and services to professional and commercial communities. The company was formerly known as United Business Media Limited and changed its name to UBM plc in May 2011. UBM plc was founded in 1918 and is headquartered in Dublin, Ireland.

10 Best Computer Hardware Stocks For 2014: Arrowhead Research Corporation(ARWR)

Arrowhead Research Corporation, a clinical stage nanomedicine company, through its subsidiaries, develops therapeutic products at the interface of biology and nanoengineering to cure disease and improve human health. It focuses on the design and development of therapeutic agents for the treatment of cancer and obesity, as well as healing wounded or diseased tissue based on nucleic acid delivery, siRNA chemistry, and tissue targeting intellectual properties. The company?s lead products include CALAA-01, an oncology drug candidate based on the gene silencing RNA interference (RNAi) mechanism; and Adipotide, an anti-obesity peptide that targets and kills the blood vessels that feed white adipose tissue. It also plans to develop its internal preclinical and clinical pipeline, including RONDEL-enabled siRNA drug candidates, Dynamic Polyconjugate (DPC)-enabled drug candidate development, and the non-siRNA-based anti-obesity drug candidate, Adipotide. The company, formerly known as InterActive Group, Inc., was founded in 2003 and is headquartered in Pasadena, California.

Advisors' Opinion:
  • [By Roberto Pedone]

    Arrowhead Research (ARWR) is a development stage nanotechnology holding company that forms, acquires, and operates subsidiaries commercializing innovative nanotechnologies. This is trading up 12.2% to $2.04 in recent trading.

    Today’s Range: $1.80-$2.08

    52-Week Range: $1.65-$5.79

    Volume: 141,000

    Three-Month Average Volume: 121,952

    Shares of ARWR are soaring higher after the company announced the pricing of a private offering with gross proceeds expected to be $36 million. The offering was priced at $1.83 per share.

    From a technical perspective, ARWR is soaring here back above some near-term overhead resistance at $1.95 and back above its 50-day moving average at $2.07 with above-average volume. At last check, ARWR has hit an intraday high of $2.09 and volume is just starting to surpass its three-month average action of 121,952 shares.

    Traders should now look for long-biased trades in ARWR as long as it’s trending above $1.95 and then once it sustains a move or close above its 50-day at $2.07 with volume that hits near or above 121,952 shares. If that breakout hits soon, then ARWR will set up to re-test or possibly take out its next major overhead resistance levels at $2.25 to its 200-day at $2.41. Any high-volume move above $2.41 will then put $2.55 to $2.70 into range for shares of ARWR.