Reed Saxon/AP WASHINGTON -- Americans' confidence in the economy fell only slightly in July but stayed close to a 5½-year high. The report shows consumers remain upbeat about the outlook for job growth later this year. The Conference Board, a New York-based private research group, said Tuesday that its consumer confidence index fell to 80.3 in July. That's down from a reading of 82.1 in June, which was revised slightly higher and the best reading since January 2008. Despite the slight drop in July, confidence remains well above year-ago levels. And while the hiring outlook for the short-term declined, consumers were more optimistic about the job market's potential in the coming months. "Overall, indications are that the economy is strengthening and may even gain some momentum in the months ahead," said Lynn Franco, an economist for the Conference Board that oversees the consumer confidence survey. Consumer confidence in the economy is watched closely because their spending accounts for about 70 percent of U.S. economic activity. It surged in June, coinciding with a stronger job market. Employers added 195,000 jobs in June and many more in April and May than initially reported. That brought the monthly job growth up to an average of 202,000 in the first six months of 2013, up from 180,000 a month in the final six months of last year. The government releases the July employment report on Friday. Economists forecast that employers added 183,000 jobs, and the unemployment rate fell to 7.5 percent from 7.6 percent in June.
Wednesday, July 31, 2013
Consumer Confidence Slips as Outlook Dims
Tuesday, July 30, 2013
Top Medical Stocks To Buy For 2014
European stocks retreated, following yesterday�� rally for the Stoxx Europe 600 Index, as investors awaited a report on American factory orders. U.S. index futures and Asian shares climbed.
Fresenius Medical Care AG plunged the most in more than four years as the U.S. Medicare program proposed cutting spending on dialysis. Telefonica Deutschland Holding AG fell 3 percent as Commerzbank AG lowered its recommendation for the mobile-phone operator. Dialog Semiconductor Plc rose 3.2 percent after the German maker of chips used in Apple Inc.�� iPhone agreed to buy IWatt Inc. for as much as $345 million.
The Stoxx 600 slipped 0.7 percent to 286.43 at 10:52 a.m. in London. The equity benchmark advanced yesterday as euro-area factory output contracted in June less than estimated and Japanese manufacturers turned optimistic for the first time since the third quarter of 2011. Standard & Poor�� 500 Index futures added 0.2 percent today, while the MSCI Asia Pacific Index gained 0.9 percent.
Top Medical Stocks To Buy For 2014: Prima BioMed Ltd (PRR)
Prima BioMed Ltd is a biotechnology company is engaged in the development and commercialization of medical therapies with a focus on oncology. Its product candidates in development include Cvac, an autologous dendritic cell vaccine for ovarian cancer, monoclonal antibodies for multiple tumour types, and an oral formulation for the human papilloma virus (HPV), vaccine. Its product candidate Cvac is a dendritic cell therapy, for which it is conducting a Phase IIb trial for the treatment of ovarian cancer. Cvac is designed to target the tumour antigen mucin-1, which is expressed at high levels on different tumour types. It also has two preclinical product development programs. In May 2011, Prima BioMed GmbH, a 100 % owned subsidiary of Prima BioMed Ltd, was incorporated in Germany. In May 2011, Prima BioMed Middle East FZLLC, a 100 % owned subsidiary of Prima BioMed Ltd, was incorporated in the United Arab Emirates.Top Medical Stocks To Buy For 2014: Oxford BioMedica PLC (OXB)
Oxford BioMedica plc is a biopharmaceutical company developing gene-based medicines and therapeutic vaccines. The Company�� LentiVector platform products include ProSavin, RetinoStat, StarGen, UshStat, EncorStat, Glaucoma-GT and MoNuDin. Its 5T4 Tumour Antigen produces TroVax and Anti-5T4 antibody. The Prime Boost�� product includes Hi-8 Mel. Its GDEPT platform produces MetXia and Anti Angiogenesis platform produces EndoAngio-GT. The Company is developing four LentiVector platform product candidates for the treatment of ocular diseases: RetinoStat for wet age-related macular degeneration (AMD); StarGen for Stargardt disease; UshStat for Usher syndrome type 1B, and EncorStat for corneal graft rejection. TroVax is a therapeutic vaccine that stimulates the immune system to destroy cancerous cells expressing the 5T4 tumour antigen. On February 25, 2011, the Company purchased a freehold property, United Kingdom comprising a manufacturing facility.Top 10 Stocks For 2014: Terumo (TRUMY.PK)
TERUMO CORPORATION operates in four business segment. The Hospital Products segment is engaged in the manufacture, purchase and sale of hospital medical equipment, pharmaceuticals, peritoneal dialysis and diabetes related products, and the rental of hospital medical equipment and home medical products. The Cardiac and Vascular Area segment is involved in the manufacture, purchase and sale of catheter systems, artificial heart and lungs, as well as artificial blood vessels, the manufacture and sale of therapeutic coils for cerebral aneurysm, sampling equipment and kits for platelet-rich plasma and concentrated bone-marrow cell, and large-bore sheaths. The Blood System segment is engaged in the manufacture, purchase and sale of blood transfusion-related products. The Healthcare segment manufactures and sells healthcare related products. As of March 31, 2012, the Company had 79 subsidiaries and 2 associated companies. Advisors' Opinion:- [By Robert Holmes]
Analyst Mayo Mita says the Japanese earthquake and tsunami was a setback for the company, Terumo has a more visible growth stage coming.
"Over the next five years we see clear growth from China, the NOBORI drug eluting stent (DES), the U.S. catheter business, and the blood management business," Mita writes.
The base-case Mita lays out is for a 26% rise in share price next year, although Mita's most bullish forecast has shares up twice that. On the downside, Mita's most bearish scenario has shares falling 11% in the next 12 months.
The chart below shows shares of Terumo that trade on the Pink Sheets in the U.S., but Morgan Stanley is recommending buying shares in Tokyo.
Top Medical Stocks To Buy For 2014: Telik Inc (TELK)
Telik, Inc. (Telik), incorporated in 1988, is a clinical-stage drug development company focused on discovering and developing small molecule drugs to treat cancer. The Company discovers its product candidates using the Company�� drug discovery technology, Target-Related Affinity Profiling (TRAP). TELINTRA, its principal drug product candidate in clinical development, is a small molecule glutathione analog inhibitor of the enzyme glutathione S-transferase P1-1 (GST P1-1). TELCYTA, its other product candidate, is a small molecule cancer drug product candidate designed to be activated in cancer cells.
Clinical Product Development
TELINTRA is the Company�� lead small molecule product candidate in clinical development for the treatment of blood disorders, including cancer. It has a mechanism of action and acts by inhibiting GST P1-1, an enzyme that is involved in the control of cellular growth and differentiation. Inhibition of GST P1-1 results in the activation of the signaling molecule Jun kinase, a regulator of the function of blood precursor cells. Preclinical tests show that TELINTRA is capable of causing the death or apoptosis of leukemic or malignant blood cells, while stimulating the growth and development of normal blood precursor cells. TELINTRA has been studied in Myelodysplastic Syndrome (MDS) using two formulations. A liposomal formulation was developed for intravenous administration of TELINTRA and was used in Phase I and Phase II studies in MDS patients. The results from the Phase II intravenous liposomal TELINTRA clinical trials demonstrated that TELINTRA treatment was associated with improvement in all three types of blood cell levels in patients with all types of MDS, including those in intermediate and high-risk groups. An oral dosage formulation (tablet) was subsequently developed and results from a Phase I study with TELINTRA tablets showed clinical activity and the formulation to be well tolerated. In June 2011, the Company initiated a Phase II clinical ! trial to evaluate TELINTRA tablets. In October 2011, the Company initiated an additional Phase IIb clinical trial to evaluate TELINTRA tablets. '
The activity and safety profile of tablet formulation allowed the Company to complete a Phase II trial of TELINTRA tablets in MDS. The primary objective of the Phase II TELINTRA tablet study was to determine the efficacy of TELINTRA. A multivariate logistic regression analysis was conducted to identify MDS disease prognostic factors associated with erythroid improvement response rates, including prior MDS treatment, age, gender, the international prognostic scoring system (IPSS), risk, Eastern Cooperative Group performance status, years from MDS diagnosis, MDS World Health Organization subtypes, anemia only versus anemia plus other cytopenias, dose schedule and starting dose. Results from this study show that TELINTRA is the first GSTP1-1 enzyme inhibitor shown to cause clinically reductions in red blood cell transfusions, including transfusion independence in low to intermediate-1 risk MDS patients, as well as improvement in platelet count and white blood cell levels in certain patients. TELINTRA, administered orally twice daily, appeared to be convenient and flexible for chronic treatment administration.
TELCYTA is a small molecule drug product candidate that the Company is developed for the treatment of cancer. TELCYTA binds to GST. TELCYTA has been evaluated in multiple Phase II and Phase III clinical trials, including trials using TELCYTA as monotherapy and in combination regimens in ovarian, non-small cell lung, breast and colorectal cancer. Results from these clinical trials indicate that TELCYTA monotherapy was generally well-tolerated, with mostly mild to moderate side effects, particularly when compared to the side effects and toxicities of standard chemotherapeutic drugs. When TELCYTA was evaluated in combination with standard chemotherapeutic drugs, the tolerability of the combinations was similar to that expected of each! drug alo! ne.
Clinical activity including objective tumor responses and/or disease stabilization was reported in the TELCYTA Phase II trials; however, TELCYTA did not meet its primary endpoints in the Phase III studies. Positive results from a Phase I-IIa multicenter, dose-ranging study of TELCYTA in combination with carboplatin and paclitaxel as first-line therapy for patients with non-small cell lung cancer, or NSCLC, were published in a peer reviewed publication. Clinical data demonstrated positive results of TELCYTA in combination with carboplatin and paclitaxel in the treatment of first-line lung cancer followed by TELCYTA maintenance therapy. As of December 31, 2011, the Company had an on-going investigator-led study at a single site of TELCYTA in patients with refractory or relapsed mantle cell lymphoma, diffuse B cell lymphoma, and multiple myeloma.
Preclinical Drug Product Development
The Company has a small molecule compound, TLK60404, in preclinical development that inhibits both Aurora kinase and VEGFR kinase. Aurora kinase is a signaling enzyme whose function is required for cancer cell division, while VEGF plays a key role in tumor blood vessel formation, ensuring an adequate supply of nutrients to support tumor growth. These lead compounds prevented tumor growth in preclinical models of human colon cancer and human leukemia by inhibiting both Aurora kinase and VEGFR kinase. A development drug product candidate, TLK60404, has been selected.
The Company, using its TRAP technology has discovered TLK60357, a novel, potent small molecule inhibitor of cell division. TLK60357 inhibits the formation of microtubules that are necessary for cancer cell growth leading to persistent G2/M cancer cell cycle block and subsequent cell death. This compound demonstrates potent broad-spectrum anticancer activity against a number of human cancer cells. This compound also displays oral efficacy in multiple, standard preclinical models of cancer. TLK60596, a potent VG! FR kinase! inhibitor, blocks the formation of new blood vessels in tumors. Oral administration of TLK60596 to animal models of human colon cancer reduced tumor growth.
Top Medical Stocks To Buy For 2014: Spectrum Pharmaceuticals Inc.(SPPI)
Spectrum Pharmaceuticals, Inc., a commercial-stage biotechnology company, primarily focuses on oncology and hematology. The company engages in acquiring, developing, and commercializing a broad and diverse pipeline of late-stage clinical and commercial products. It markets Zevalin, a prescribed form of cancer therapy, radioimmunotherapy; and Fusilev, a novel folate analog formulation and the pharmacologically active isomer of the racemic compound, calcium leucovorin. The company?s drugs in late stage development include Apaziquone, an anti-cancer agent; and Belinostat, a histone deacytelase inhibitor. Its drugs in development also include Ozarelix a luteinizing hormone releasing hormone antagonist, which is in Phase II clinical stage; SPI-1620, a peptide agonist of endothelin B receptors, which is in Phase I clinical stage; and RenaZorb, a lanthanum-based nanoparticle phosphate binding agent, which is in preclinical stage. The company was formerly known as NeoTherapeutics, Inc. and changed its name to Spectrum Pharmaceuticals, Inc. in December 2002. Spectrum Pharmaceuticals, Inc. was founded in 1987 and is based in Henderson, Nevada.
Advisors' Opinion:- [By Michael Shulman]
Spectrum Pharmaceuticals (NASDAQ: SPPI) is a commercial-stage biotechnology company with a primary focus in oncology and hematology The company specializes in rescuing treatments abandoned, in development stages, by other companies.
It has had a tremendous run based on market introductions and partnerships in the past two years, but now has even greater potential for a blockbuster with a drug called Zevalin for non-Hodgkin’s lymphoma. This drug is currently approved as a salvage and adjunct therapy, and the company is in mid-stage trials for the use of Zevalin as a front-line treatment, which would be a much larger market.
The risk in this stock is high. It could be cut in half or worse on bad news from one of several clinical trials. However, successful trial results could take this stock from under $7 to $32 in one to three years. SPPI could also become a takeover target.
- [By Roberto Pedone]
Another stock that's quickly moving within range of triggering a big time breakout trade isSpectrum Pharmaceuticals (SPPI), which is a commercial stage biotechnology
company integrated in commercial and drug development operations, primarily in oncology and hematology. This stock has been destroyed by the short-sellers so far in 2013, with shares off by over 30%.If you look at the chart for Spectrum Pharmaceuticals, you'll see that this stock has been trending sideways for the last two months in a consolidation chart pattern, with shares moving between $6.92 on the downside and $7.77 on the upside. This sideways pattern is coming after shares of SPPI gapped down sharply back in March from $12.47 to below $8 a share with heavy downside volume. Shares of SPPI are now quickly moving within range of triggering a major breakout trade above the upper end of its recent sideways chart pattern.
Market players should now look for long-biased trades in SPPI if it manages to break out above some near-term overhead resistance levels at $7.65 to $7.77 a share and then once it takes out its 50-day at $8 and its gap down day high at $8.26 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.43 million shares. If that breakout hits soon, then SPPI will set up to re-fill some of its previous gap down zone that started at $12.47 a share. Some possible upside targets if SPPI gets into that gap with volume are $9.50 to its 200-day at $10.89 a share.
Traders can look to buy SPPI off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support levels at $7.09 to $7 a share. One can also buy SPPI off strength once it clears those breakout levels with volume and then simply use a stop at around $7 a share.
This stock is an absolute favorite target of the short-sellers, since the current short interest as a percentage of the float for SPPI is extremely high at 37.4%. This stock has explosive upside potential if it trades into that gap with volume, so make sure to have it on your breakout trading radar.
Top Medical Stocks To Buy For 2014: Fuse Science Inc (DROP)
Fuse Science, Inc. ( Fuse Science), incorporated on September 21, 1988, is a consumer products holding company. The Company maintains the rights to sublingual and transdermal delivery systems for bioactive agents that can effectively encapsulate and charge many varying molecules in order to produce complete product formulations which can be consumed orally, applied topically or delivered otherwise sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The Fuse Science technology is designed to accelerate conveyance of medicines or nutrients relative to traditional pills and liquids and can enhance how consumers receive these products. In December 2012, the Company launched its initial DROP products, PowerFuse, an energy formulation in a concentrated drop and ElectroFuse, an electrolyte formula in a concentrated drop, online, with the expansion into targeted retail distribution channels.
The Company is developing formulations and devices, which are compatible with alternative delivery systems for energy, medicines, vitamins and minerals, among other bioactives. These alternative systems include, but are not limited to, sublingual, transdermal and buccal drug delivery methods. use Science has developed and continues to advance, in conjunction with its scientific team, sublingual and transdermal delivery systems for bioactives that can effectively encapsulate and charge varying molecules in order to produce product formulations which can be consumed orally, applied topically or otherwise delivered sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The delivery technology is consists of encapsulation vesicles and ion exchange permeation enhancers. This technology utilizes a gradient across the mucosa membrane to help deliver the bioactive more efficiently through the mucosa.
The Company�� products consist of EnerJel, PowerFuse and ElectroFuse. Ene! rJel is a topical product leveraging some of its technology, which is designed to address muscle fatigue and soreness, before, during and after physical activity. The product contains a natural anti-inflammatory and energy source which is directly applied to the problem area. PowerFuse contains natural ingredients, causes no sugar crash with zero calories and less than half the caffeine of an eight ounce cup of premium coffee. It is available in a great tasting Berry Blast Flavor. ElectroFuse contains natural ingredients, causes no sugar crash with zero calories, is easily portable and is available in a great tasting Salty-Sweet flavor.
Why This Company's Dirty Job Could Send Its Stock Soaring
I love most aquatic sports. From fishing and kayaking to powerboating and waterskiing, if it's warm out, I want to be near or on the water.
I grew up near several major rivers where I often fished and boated as a youngster. Although these rivers were hundreds of yards wide, they were usually shallow. They were constantly becoming silted in from runoff, debris and assorted other factors. The same thing occurred in local reservoirs, where the water got continuously shallower as mud and silt piled up against the dam.
If you have ever stepped into this muddy, silt-filled mess when boating or fishing, then you know it's pretty disgusting. Not only is the silting of rivers and reservoirs a real issue for recreational users of waterways, but it can impede crucial transportation and navigation routes.
It's a problem begging for a solution -- and in a twist of fate, I discovered a company that provides one.
Several weeks ago, when researching the Gold Trust ETF (NYSE: GLD), I inadvertently added an extra "D" to the GLD ticker symbol. What I serendipitously fell into reminded me of the waterway silting issue.
This company, Great Lakes Dredge & Dock (NYSE: GLDD), provides a solution to the silting problem, without even mentioning its other diversified problem-solving businesses. I decided to take a closer look at this company as a potential investment.
Great Lakes Dredge & Dock is a 122-year-old U.S.-based dredging company. Dredging is the process used to remove the silt and muck from the bottom of waterways to maintain a navigable depth -- think of backhoes that can dig underwater -- and is the only practical solution to the problem of silting. The company owns the largest fleet of dredging vessels in the industry, with more than 200 boats.
Although based in the United States, Great Lakes has a strong international presence. The company is also involved in other businesses beyond dredging. It provides demolition services in the Northeast U.S., holds a 50% share of a New Jersey-based marine sand-mining company and even owns a 50% share in an environmental services company focusing on remediating polluted swamp lands.
Not only does Great Lakes save inland waterways, but the company is also involved in beach replenishment and protection. This often involves pumping in sand from offshore locations to rebuild beaches lost to storms and steady erosion.
The company recently won a contract of more than $100 million from the U.S. Army Corps of Engineers to deepen the Miami Harbor. Dredging is expected to start in the fourth quarter. The project will begin by digging out the offshore entrance to the port with additional work to potentially be awarded in 2014.
While the company's dredging division is posting solid results -- not to mention winning more than 50% of the U.S. market -- the demolition division is dragging on overall performance. Digging into the details, Great Lakes' revenue increased more than 20% in the first quarter, to nearly $190 million. In addition, gross profit margin rose slightly to 13.7% from 12.9% a year ago. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) grew 23% to just over $18 million, from just under $15 million in 2012.
However, Great Lakes followed an annual loss last year of $2.7 million, down from a profit of $16.5 million in 2011, with a year-over-year decrease in net income in its first quarter, down from just over $1 million to $433,000.
I expect a stronger remainder of 2013 due to a $361 million dredging backlog, the Miami Harbor project, a $30 million New Jersey shore protection project, as well as 15 to 20 potential coastal projects in the wake of Hurricane Sandy.
But the most exciting potential growth catalyst is the $340 million in Gulf restoration projects funded by the first BP (NYSE: BP) Deepwater Horizon spill settlement. In addition, the company is focusing on improving execution and internal controls to help improve its demolition division's bottom line.
Technically speaking, GLDD has fallen back to the 50- and 200-day simple moving averages after hitting upside resistance at $8.75. Consolidation support also exists in the $8 range.
Risks to Consider: The company has recently been downgraded by BB&T Capital from a "buy" to a "hold." Although I don't put much faith in upgrades or downgrades, this company is taking heat from investors due to an annual loss. However, Great Lakes could be in line for a portion of the BP oil spill settlement work, which would help its bottom line tremendously. Always use stops and position size properly when investing.
Action to Take --> Despite the annual loss, I think this company is on an upswing due to the pending workload and its willingness to make positive changes in its money-losing demolition division. The price is sitting on support right now, setting up a solid technical buy opportunity. Buying now with stops at $7.75 and a six-month target price of $10 makes good technical sense.
P.S. -- Part of investing is finding opportunities -- like GLDD -- that no one is talking about. That's why we recently put together a special report on 17 little-known "spin-off" companies. Because of the way they were formed, these companies have beaten the market 7-to-1 in the past decade and raised dividends as much as 600% -- yet most investors don't understand them at all. To get the names and tickers of some of these stocks immediately, click here.
Monday, July 29, 2013
Shorts Are Piling Into These Stocks. Should You Be Worried?
The best thing about the stock market is that you can make money in either direction. Historically, stock indexes have tended to trend up over the long term. But when you look at individual stocks, you'll find plenty that lose money over the long haul. According to hedge fund institution Blackstar Funds, even with dividends included, between 1983 and 2006, 64% of stocks underperformed the Russell 3000, a broad-scope market index.
A large influx of short-sellers shouldn't be a condemning factor for any company, but it could be a red flag from traders that something may not be as cut-and-dried as it appears. Let's look at three companies that have seen a rapid increase in the number of shares sold short and see whether traders are blowing smoke or if their worry has some merit.
| VelocityShares Daily 2X VIX (NYSEMKT: TVIX ) | 234.6% | N/A* |
| Johnson & Johnson (NYSE: JNJ ) | 26.9% | 2.2% |
| ARMOUR Residential REIT (NYSE: ARR ) | 60.8% | 5.7% |
Source: The Wall Street Journal. *ETNs do not have a fixed number of shares.
Worrisome worries
If, as an investor, you believe the market is headed lower, there are smart ways of betting in favor of downside action and investing methods you'd want to avoid at all costs. Purchasing the VelocityShares Daily 2X VIX -- essentially an ETN that closely tracks twice the move of the volatility index known as the VIX -- is the absolute wrong way to go about it.
Since early October 2011 when the stock market had its most recent sizable swoon and volatility spiked higher, the VelocityShares double-weighted VIX ETN has lost an astonishing 98.3% of its value. A lack of volatility, time decay, and daily rebalancing, has crushed this ETN built upon worry and volatility and reminded investors in very blunt fashion that double-weighted ETFs and ETNs are rarely, if ever, profitable ventures over the long-term and are better left untouched.
In this case, a huge rise in short interest in VelocityShares Daily 2X VIX is probably well deserved. There will undoubtedly be small rallies in this ETN when the markets head lower and uncertainty picks up. However, over the long run, the factors listed above will naturally take this ETN closer and closer to zero.
Quietly dominating
Many investors have grown quite skeptical of Johnson & Johnson's nearly perfect ascent from $70 to $93 since the year began given its history of steady, but slow growth. At roughly 16 times forward earnings J&J may not be expensive relative to the S&P 500, but historically speaking it and its price-to-cash-flow ratio is higher than in recent years. But short-sellers are ignoring two key components to J&J's business that I wouldn't dare stand in the way of.
First, J&J purchased Synthes last June in a gigantic $19.7 billion deal that was targeted at boosting its orthopedic medical device market share -- but more so to gain a foothold in emerging market regions where Synthes is rapidly growing sales. Even though J&J's consumer products segment is growing at a snail's pace, its orthopedics segment growth could really surprise Wall Street come earnings time.
The other factor that makes J&J a company I wouldn't dare bet against is its top-notch pharmaceutical program. J&J has delivered incredible wins over the past couple of quarters including the approval of Invokana, the first SGLT-2 inhibitor approved in the U.S. to treat Type 2 diabetes, as well as its December 2011 licensing partnership with Pharmacyclics (NASDAQ: PCYC ) over experimental drug, ibrutinib, which has been designated as a breakthrough therapy by the Food and Drug Administration for the treatment of two rare blood cancers and could generate up to $5 billion in peak sales if approved (it's currently under review by the FDA).
Forget the fact that J&J has increased its dividend in 51 consecutive years, or that its cash flow is about as steady as they come in the health care sector. The real news here is that J&J is retransforming itself into a growth company once again. I believe short-sellers would be foolish to bet against that move.
Don't overthink this
Nearly anything related to the housing market has been a great investment since the March 2009 lows. It's certainly been a bumpy ride, but historically low lending rates combined with very accommodative Federal Reserve monetary policy have come together to create the perfect scenario for housing prices to find a foundation and for homebuilders to regain some pricing power and inventory control. However, it hasn't been the best of times for the mortgage-REIT sector and companies like ARMOUR Residential REIT in the past quarter.
Comments recently made by Federal Reserve chairman Ben Bernanke made it clear that if U.S. economic results continue to pick up, it will begin paring back its quantitative easing program which has been pumping $85 billion into the economy on a monthly basis. This news caused interest rates to rise which has the effect of tightening net margin spreads for mREITs like ARMOUR. ARMOUR makes its profits by levering up and relying on the fact that it invests only in agency-only mortgage-backed securities (i.e., those guaranteed by the U.S. government), which means it cover its behind in case of a loan default.
To some extent, short-sellers have been justified in their pessimism given that net interest margins for agency-only mREITs have been shrinking with regularity for many quarters now. Annaly Capital Management (NYSE: NLY ) , perhaps the most popular mREIT and a competitor to ARMOUR, has seen its net interest margin sink from a peak of more than 3% to just 0.91% last quarter. The case is the same for ARMOUR, which has witnessed its net interest margin drop to just 1.35% from 2.23% in the year-ago period.
On the other hand, the Fed has been very transparent with its intentions to the leave the Fed Funds target at historically low levels through 2015. That alone should put a cap on the near-term lending rate surge and give these mREITs another two years at minimum to shine. Following a big decline over the past two months, I feel ARMOUR could offer a very intriguing buying opportunity here.
Foolish roundup
This week's theme is all about fleeting trends versus long-term trends. A downward move in the market that boosts the VIX, aka the fear index, could result in very short-term gains for holders of the SharesVelocity Daily 2X ETN, but they're unlikely to see any meaningful gains over the long run. For J&J and ARMOUR, longer-term catalysts do exist that, at their current prices, should make short-sellers think twice before pulling the trigger.
Interested in a company that has short-sellers running in the opposite direction? The Motley Fool's chief investment officer recently selected his No. 1 stock for this year and, for a limited time, he'll share it with your for free! Find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2013." Just click here to access this report and find out the name of this under-the-radar company.
Sunday, July 28, 2013
I'm Sorry -- Now Boost My Sales
Department-store chain J.C. Penney (NYSE: JCP ) recently launched a mea culpa advertising campaign, asking customers to give it another shot after royally screwing up its marketing, switching as it did from regular sales days to an everyday low-price scheme. Customers fled, sales plunged, and Penney risks financial disaster. I likened the new advertising to begging and thought it unseemly for the venerable retailer to get on its knees.
Spirits maker Beam (NYSE: BEAM ) did the same thing after its Maker's Mark brand announced that it was going to water down its iconic bourbon to stretch volume, lowering alcohol content from 45% to 42%. After the outcry, it quickly reversed course and made a big show of contrition on its Facebook page.
While this seems to be a new trend in corporate advertising -- making a big blunder and then telling your customers you're sorry -- it's not really all that novel. Coca-Cola (NYSE: KO ) famously (or infamously) was forced to acknowledge the error of its ways with New Coke -- but there seems to be more of this kind of thing around these days.
Beam released its first-quarter earnings results the other day and noted a spike in Maker's Mark sales because of its "error." First-quarter comparable sales surged 44% as management attributed the sustained demand to its proposed change. Some are even hinting at the possibility it was all a calculated move, though as Penney can attest, throwing consumers off their stride can be deadly.
After Anheuser-Busch InBev (NYSE: BUD ) got sued for watering down its beer earlier this year, it may be time for it to go on an apology tour in hopes of causing a recovery in beer sales.
So there could be hope for Penney in Beam's effort. Although the distiller admits the sales growth rate is unsustainable, it did revive an interest in the brand, and even Coke credits the New Coke debacle with helping it regain lost market share from PepsiCo. Although there's a big difference in a bourbon or cola and an amorphous clothing and housewares chain, perhaps asking forgiveness will have a similar salutary effect on Penney's sales numbers after all.
If you're wondering whether J.C. Penney is a buy today, you're invited to claim a copy of The Motley Fool's must-read report on the company. Learn everything you need to know about Penney's turnaround -- or lack thereof. Simply click here now for instant access.
3 Ways To Profit From A Rebounding British Economy
Even as Europe struggles to avoid further meltdowns, the economic pulse across the English Channel is starting to quicken.
A steady drumbeat of positive economic reports has led to expectations that much better days lie ahead in 2014 and 2015 for the U.K. economy. Meanwhile, British stock prices, which have failed to keep pace with their U.S. counterparts, are starting to emerge as timely bargains.
Green Shoots
Back in 2010 and 2011, U.S. economists started to notice signs of life among both manufacturers and consumers, citing a rising tide of "green shoots" that popped up from the soil. That early evidence of a moderate recovery in the U.S. eventually led to robust share price gains across all U.S. asset classes.
Fast-forward to 2013, and the same playbook appears to be emerging in the U.K. For example:
After shrinking 0.2% in the fourth quarter of 2012, the U.K. economy grew 0.3% sequentially in the first quarter of 2013, and grew a further 0.6% in the second quarter. Sales at department stores rose 3% in June (from a year earlier), which was the strongest monthly growth rate in more than a year. The Purchasing Managers Index (PMI) spiked to 52.5 in June, the best showing in more than two years. The number of unemployed fell 51,000 in June, and the national unemployment rate now stands at 7.8%, well below levels seen in most European economies. After digesting recent economic reports, Ernst & Young now believes the U.K. will grow 2.2% next year, which would be the strongest growth rate since 2007. "With consumer confidence returning and the government's initiatives to stimulate the housing market bearing fruit, consumers are switching their attention back from saving to spending," E&Y economists noted in a recent report.
"The U.K. has been punching above its weight in attracting overseas investment over the past year, suggesting that reforms to improve the competitiveness of the tax system and our ability to capitalize on strengths such as the science base and flexible labor markets place the U.K. high up the rankings for investors around the world," noted Lee Hopley, an economist with a leading manufacturing consortium in an interview with the Guardian.
Meanwhile, since global markets hit bottom in March 2009, the S&P 500 has handily outperformed the FTSE-100.
There are several exchange-traded funds (ETFs) with exposure to the U.K., including:
 | The iShares MSCI United Kingdom Index (NYSE: EWU) This is a very popular choice, trading more than 2 million shares a day, along with a reasonable 0.53% expense ratio. This ETF owns a broad variety of U.K.-based multinationals (such as HSBC Holdings (NYSE: HBC), Vodafone (Nasdaq: VOD), BP (NYSE: BP) and GlaxoSmithKline (NYSE: GSK)), and should be seen more as a proxy for the global economy rather than the U.K. economy. |
 | First Trust United Kingdom AlphaDEX (NYSE: FKU) This ETF focuses on mid-cap companies that have a direct focus on the U.K. economy, with key sector weightings in consumer cyclicals (27% of the portfolio), industrials (19%) and financial services (17%). The 0.80% expense ratio is a bit stiff, reflecting this fund's relatively small $15 million asset base. |
 | iShares MSCI United Kingdom Small-Cap (NYSE: EWUS) Small-cap stocks tend to outperform in the early stages of an economic recovery, making this ETF a timely investment. The 0.59% expense ratio is middle of the pack, and the focus on smaller stocks adds higher volatility. The sector weighting is quite similar to the First Trust fund, though the average $2 billion market value of each holding is just one-third the size of the typical company held in the First Trust fund. |
Risks to Consider: The U.K.'s fiscal picture remains quite challenged, and efforts to reduce the budget deficit could impede an economic rebound.
Action to Take --> As the U.S. stock market has generated robust gains over the past four years, it's time to seek out markets than haven't kept up. With the U.K. economy showing signs of life, shares may be poised to close the gap with their U.S. rivals.
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Saturday, July 27, 2013
Top 10 Growth Companies To Buy Right Now
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 Chinese travel website Ctrip.com International (NASDAQ: CTRP ) surged 19% today after its quarterly results and outlook topped Wall Street expectations. �
So what: Ctrip's first-quarter profit sank 26% on higher expenses, but a wide top-line beat -- revenue surged 27% to $198 million versus the consensus $172.6 million -- coupled with upbeat guidance is prompting analysts to raise their growth estimates yet again. While operating margins shrank 500 basis points over the year-ago period, strong volume growth across all of its segments reinforces optimism over its market-share gains and competitive position going forward.
Top 10 Growth Companies To Buy Right Now: Crocs Inc.(CROX)
Crocs, Inc. and its subsidiaries engage in the design, development, manufacture, marketing, and distribution of footwear, apparel, and accessories for men, women, and children. The company primarily offers casual and athletic shoes, and shoe charms. It also designs and sells a range of footwear and accessories that utilize its proprietary closed cell-resin, called Croslite. The company?s footwear products include boots, sandals, sneakers, mules, and flats. In addition, it provides footwear products for the hospital, restaurant, hotel, and hospitality markets, as well as general foot care and diabetic-needs markets. Further, the company offers leather and ethylene vinyl acetate based footwear, sandals, and printed apparels principally for the beach, adventure, and action sports markets; and accessories comprising snap-on charms. The company sells its products through the United States and international retailers and distributors, as well as directly to end-user consumers th rough its company-operated retail stores, outlets, kiosks, and Web stores primarily under the Crocs Work, Crocs Rx, Jibbitz, Ocean Minded, and YOU by Crocs brand names. As of December 31, 2010, it operated 164 retail kiosks located in malls and other high foot traffic areas; 138 retail stores; 76 outlet stores; and 46 Web stores. Crocs, Inc. operates in the Americas, Europe, and Asia. The company was formerly known as Western Brands, LLC and changed its name to Crocs, Inc. in January 2005. Crocs, Inc. was founded in 1999 and is headquartered in Niwot, Colorado.
Advisors' Opinion:- [By Paul]
They’re back! Two years ago everyone was convinced that Crocs (CROX: 23.33 0.00%) was just a fad, but their stock price exploded in 2010 gaining 206%. Revenues are expected to climb 20% this year and analysts are looking for 27% earnings growth in 2011. That type of growth could make Crocs a hot item again in 2011, especially if they can continue to top Wall Street’s estimates each quarter.
Top 10 Growth Companies To Buy Right Now: Buffalo Wild Wings Inc.(BWLD)
Buffalo Wild Wings, Inc. engages in the ownership, operation, and franchise of restaurants in the United States. The company provides quick casual and casual dining services, as well as serves bottled beers, wines, and liquor. As of July 26, 2011, it had 773 Buffalo Wild Wings locations in 45 states in the United States, as well as in Canada. The company was founded in 1982 and is headquartered in Minneapolis, Minnesota.
Advisors' Opinion:- [By Fabian]
While Chipotle has captured most of the attention among the restaurant stocks, Buffalo Wild Wings (BWLD: 56.62 0.00%) could be 2011’s big winner. Wall Street is expecting 19% earnings growth from Buffalo Wild Wings in 2011 which is only slightly lower than Chipotle’s 20% growth rate. However, BWLD trades at only 18x consensus 2011 estimates while CMG trades at a pricey 40x. On an EBITDA basis, Chipotle trades at over 20x, while Buffalo Wild Wings trades at less than 9x.
Top 10 Tech Companies For 2014: CNO Financial Group Inc. (CNO)
CNO Financial Group, Inc., through its subsidiaries, engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The company markets and distributes Medicare supplement insurance, interest-sensitive and traditional life insurance, fixed annuities, and long-term care insurance products; Medicare advantage plans through a distribution arrangement with Humana Inc.; and Medicare Part D prescription drug plans through a distribution and reinsurance arrangement with Coventry Health Care. It also markets and distributes supplemental health, including specified disease, accident, and hospital indemnity insurance products; and life insurance to middle-income consumers at home and the worksite through independent marketing organizations and insurance agencies. In addition, the company markets primarily graded benefit and simplified issue life insurance products directly to customers through television advertising, direct mail, Internet, and telemarketing. It sells its products through career agents, independent producers, direct marketing, and sales managers. CNO Financial Group, Inc. has strategic alliances with Coventry and Humana. The company was formerly known as Conseco, Inc. and changed its name to CNO Financial Group, Inc. in May 2010. CNO Financial Group, Inc. was founded in 1979 and is headquartered in Carmel, Indiana.
Top 10 Growth Companies To Buy Right Now: Intuitive Surgical Inc.(ISRG)
Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Its da Vinci surgical system consists of a surgeon?s console or consoles, a patient-side cart, a 3-D vision system, and proprietary ?wristed? instruments. The company?s da Vinci surgical system translates the surgeon?s natural hand movements on instrument controls at the console into corresponding micro-movements of instruments positioned inside the patient through small puncture incisions, or ports. It also manufactures a range of EndoWrist instruments, which incorporate wrist joints for natural dexterity for various surgical procedures. Its EndoWrist instruments consist of forceps, scissors, electrocautery, scalpels, and other surgical tools. In addition, it sells various vision and accessory products for use in conjunction with the da Vinci Surgical System as surgical procedures are performed. The company?s accessory products include sterile drapes used to ensure a sterile field during surgery; vision products, such as replacement 3-D stereo endoscopes, camera heads, light guides, and other items. It markets its products through sales representatives in the United States, and through sales representatives and distributors in international markets. The company was founded in 1995 and is headquartered in Sunnyvale, California.
Advisors' Opinion:- [By Jim Lowell]
Intuitive Surgical (ISRG: 329.49 0.00%) is an expensive stock and their stock price is currently well below the $400 level that it flirted with in April. However, the stock is a compelling growth story with revenues and earnings expected to climb 19% in 2011. The company faces little competitive pressure and 2011 is likely the year that consumers opt for procedures that they delayed in 2009-10. That could produce some blowout earnings results for ISRG in 2011.
- [By Jim Lowell]
Intuitive Surgical (ISRG: 329.49 0.00%) is an expensive stock and their stock price is currently well below the $400 level that it flirted with in April. However, the stock is a compelling growth story with revenues and earnings expected to climb 19% in 2011. The company faces little competitive pressure and 2011 is likely the year that consumers opt for procedures that they delayed in 2009-10. That could produce some blowout earnings results for ISRG in 2011.
Top 10 Growth Companies To Buy Right Now: Sara Lee Corporation(SLE)
Sara Lee Corporation engages in the manufacture and marketing of a range of branded packaged meat, bakery, and beverage products worldwide. Its packaged meat products include hot dogs and corn dogs, breakfast sausages, sandwiches and bowls, smoked and dinner sausages, premium deli and luncheon meats, bacon, beef, turkey, and cooked ham. It also offers frozen baked products, which comprise frozen pies, cakes, cheesecakes, pastries, and other desserts. In addition, Sara Lee provides roast, ground, and liquid coffee; cappuccinos; lattes; and hot and iced teas, as well as refrigerated dough products. The company sells its products under Hillshire Farm, Ball Park, Jimmy Dean, Sara Lee, State Fair, Douwe Egberts, Senseo, Maison du Caf Advisors' Opinion:
- [By Carlson]
Director of Sara Lee Corp., James S Crown, bought 37,500 shares on 9/12/2011 at an average price of $17.5. Sara Lee Corporation is a global manufacturer and marketer of high-quality, brand-name products for consumers throughout the world. Sara Lee Corp. has a market cap of $10.24 billion; its shares were traded at around $17.5 with a P/E ratio of 19.9 and P/S ratio of 1.2. The dividend yield of Sara Lee Corp. stocks is 2.7%.
On August 11, Sara Lee Corp. reported earnings for the fourth quarter 2011. The fourth quarter included an 8% increase in adjusted net sales from continuing operations to $2.3 billion; 9% reported net sales increase, 40% increase in adjusted operating income to $189 million; and reported operating income increase of 19%.
Last week, Director James S Crown bought 37,500 shares of SLE stock. Executive Chairman Jan Bennink bought 58,400 shares in August.
Top 10 Growth Companies To Buy Right Now: Checkpoint Systms Inc.(CKP)
Checkpoint Systems, Inc. manufactures and markets identification, tracking, security, and merchandising solutions for the retail and apparel industry worldwide. The company operates in three segments: Shrink Management Solutions, Apparel Labeling Solutions, and Retail Merchandising Solutions. The Shrink Management Solutions segment provides shrink management and merchandise visibility solutions. It offers electronic article surveillance systems, such as EVOLVE, a suite of RF and RFID-enabled products that act as a deterrent to prevent merchandise theft in retail stores; and electronic article surveillance consumables, including EAS-RF and EAS-EM labels that work in combination with EAS systems to reduce merchandise theft in retail stores. This segment also provides keepers, spider wraps, bottle security, and hard tags, as well as Showsafe, a line alarm system for protecting display merchandise. In addition, it offers physical and electronic store monitoring solutions, incl uding fire alarms, intrusion alarms, and digital video recording systems for retail environments; and RFID tags and labels. The Apparel Labeling Solutions segment provides apparel labeling solutions to apparel retailers, brand owners, and manufacturers. It has Web-enabled apparel labeling solutions platform and network of 28 service bureaus located in 22 countries that supplies customers with customized apparel tags and labels. The Retail Merchandising Solutions segment offers hand-held label applicators and tags, promotional displays, and queuing systems. The company serves retailers in the supermarket, drug store, hypermarket, and mass merchandiser markets through direct distribution and reseller channels. Checkpoint Systems was founded in 1969 and is based in Thorofare, New Jersey.
Advisors' Opinion:- [By Michael]
OK, so Checkpoint (CKP: 13.80 0.00%) probably isn’t going to see its stock price double in 2011. However, the stock gained 35% in 2010 with earnings expected to climb 13%. Next year, Wall Street sees earnings growth accelerating to 25%. Despite the impressive growth rate, the stock trades at only 16x next year’s earnings estimates and analysts have a $25 price target for CKP.
Top 10 Growth Companies To Buy Right Now: MEDIFAST INC(MED)
Medifast, Inc., through its subsidiaries, engages in the production, distribution, and sale of weight management and disease management products, and other consumable health and diet products in the United States. The company?s product lines include weight and disease management, meal replacement, and vitamins. It also operates weight control centers that offer Medifast programs for weight loss and maintenance, customized patient counseling, and inbody composition analysis. The company markets its products under the Medifast and Essential brand names, including shakes, appetite suppression shakes, women?s health shakes, diabetics shakes, joint health shakes, coronary health shakes, calorie burn drinks, calorie burn flavor infusers, antioxidant shakes, antioxidant flavor infusers, bars, crunch bars, soups, chili, oatmeal, pudding, scrambled eggs, hot cocoa, cappuccino, chai latte, iced teas, fruit drinks, pretzels, puffs, brownie, pancakes, soy crisps, crackers, and omega 3 and digestive health products. Medifast Inc. sells its products through various channels of distribution comprising Web, call center, independent health advisors, medical professionals, weight loss clinics, and direct consumer marketing supported via the phone and the Web; Take Shape for Life, a physician led network of independent health coaches; and weight control centers. The company was founded in 1980 and is headquartered in Owings Mills, Maryland.
Advisors' Opinion:- [By Mark]
Revenues are expected to grow 27% next year and yet MEDIFAST (MED: 15.68 0.00%) trades at only 16x consensus 2011 earnings. The company continues to gain market share in the competitive weight management sector and provides investors with the double benefit of both a growth stock and a potential acquisition target.
Top 10 Growth Companies To Buy Right Now: Nordstrom Inc.(JWN)
Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. It offers a selection of brand name and private label merchandise. The company sells its products through various channels, including Nordstrom full-line stores, off-price Nordstrom Rack stores, Jeffrey? boutiques, treasure & bond, and Last Chance clearance stores; and its online store, nordstrom.com, as well as through catalog. Nordstrom also provides a private label card, two Nordstrom VISA credit cards, and a debit card for Nordstrom purchases. The company?s credit and debit cards feature a shopping-based loyalty program. As of September 30, 2011, it operated 222 stores, including 117 full-line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure & bond store, and 1 clearance store in 30 states. The company was founded in 1901 and is based in Seattle, Washington.
Advisors' Opinion:- [By Kevin1977]
Director of Nordstrom Inc., Felicia D Thornton, bought 1,140 shares on 9/09/2011 at an average price of $47.89. Nordstrom, Inc. is one of the nation's fashion specialty retailers, with stores located in a number of states, including full-line stores, Nordstrom Racks, Faconnable boutiques, and free-standing shoe stores. Nordstrom Inc. has a market cap of $10.44 billion; its shares were traded at around $47.89 with a P/E ratio of 15.7 and P/S ratio of 1.1. The dividend yield of Nordstrom Inc. stocks is 2% Nordstrom Inc. had an annual average earnings growth of 27.3% over the past 10 years. GuruFocus rated Nordstrom Inc. the business predictability rank of 3.5-star.
On August 11, Nordstrom Inc. reported net earnings of $175 million, or $0.80 per diluted share, for the second quarter ended July 30, 2011. This represented an increase of 20 percent compared with net earnings of $146 million, or $0.66 per diluted share, for the same quarter last year.Second quarter same-store sales increased 7.3 percent compared with the same period in fiscal 2010. Net sales in the second quarter were $2.72 billion, an increase of 12.4 percent compared with net sales of $2.42 billion during the same period in fiscal 2010.
Last week, Director Felicia D Thornton bought 1,140 shares of JWN stock.
Executive Vice President Ken Worzel and Director Philip G Satre bought shares in August.
Top 10 Growth Companies To Buy Right Now: Thoratec Corporation(THOR)
Thoratec Corporation engages in the development, manufacture, and marketing of proprietary medical devices used for circulatory support. The company?s primary product lines include ventricular assist devices, such as HeartMate II, an implantable left ventricular assist device consisting of a rotary blood pump to provide intermediate and long-term mechanical circulatory support (MCS); and HeartMate XVE, an implantable and pulsatile left ventricular assist device for intermediate and longer-term MCS. Its ventricular assist devices also comprise Paracorporeal Ventricular Assist Device, an external pulsatile ventricular assist device, which provides left, right, and biventricular MCS approved for bridge-to-transplantation (BTT), including home discharge, and post-cardiotomy myocardial recovery; and Implantable Ventricular Assist Device, an implantable and pulsatile ventricular assist device designed to provide left, right, and biventricular MCS approved for BTT comprising hom e discharge, and post-cardiotomy myocardial recovery. The company also provides CentriMag, an extracorporeal full-flow acute surgical support platform that offers support up to 30 days for cardiac and respiratory failure. In addition, it offers PediMag and PediVAS extracorporeal full-flow acute surgical support platforms designed to provide acute surgical support to pediatric patients. The company sells its products through direct sales force in the United States, as well as through a network of distributors internationally. Thoratec Corporation was founded in 1976 and is headquartered in Pleasanton, California.
Advisors' Opinion:- [By McWillams]
Wall Street is expecting Thoratec’s (THOR: 30.70 0.00%) growth rate to accelerate to 15% next year with earnings growth of over 20%. That type of growth has Wall Street analysts bullish on the medical device stock. The stock has a consensus price target of $38 and some analysts think THOR could go to $50.
Top 10 Growth Companies To Buy Right Now: TrueBlue Inc.(TBI)
TrueBlue, Inc. provides temporary blue-collar staffing services in the United States. It supplies on demand general labor to various industries under the Labor Ready brand; skilled labor to manufacturing and logistics industries under the Spartan Staffing brand; and trades people for commercial, industrial, and residential construction, and building and plant maintenance industries under the CLP Resources brand. The company also provides mechanics and technicians to the aviation maintenance, repair and overhaul, aerospace manufacturing, and assembly industries, as well as to other transportation industries under the Plane Techs brand; and temporary drivers to the transportation and distribution industries under the Centerline brand. It primarily serves small and medium-size businesses. The company was formerly known as Labor Ready, Inc. and changed its name to TrueBlue, Inc. in December 2007. TrueBlue, Inc. was founded in 1985 and is headquartered in Tacoma, Washington.
Advisors' Opinion:- [By McWillams]
TrueBlue, Inc. is a provider of temporary blue-collar staffing. Its EPS forecast for the current year is 0.69 and next year is 1.1. According to consensus estimates, its topline is expected to grow 8.96% current year and 10.03% next year. It is trading at a forward P/E of 15.76. Out of 10 analysts covering the company, six are positive and have buy recommendations and four have hold ratings.
Thursday, July 25, 2013
Why Brunswick Shares Jumped
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 Brunswick (NYSE: BC ) were getting fired up today, climbing as much as 12% after issuing a strong quarterly report and improved guidance.
So what: The boat-and-engine maker delivered an adjusted profit of $1.23 per share, better than expectations of $1.08, as revenue edged up 5%, to $1.1 billion, helped by growth in outboard boat products, fitness equipment, and bowling products. Most importantly, the company lifted its outlook for the full year, saying it now expects earnings per share of $2.55-$2.65, up from a previous range of $2.30-$2.50. Analysts had called for $2.50. The increase is due, in part, to aspects outside of operations, including a favorable debt-financing agreement and a lower tax rate.
Now what: Despite a weak marine market, Brunswick keeps on pleasing the Street. Though management is only forecasting 4% sales growth for the year, improvements in profitability are enough to keep earnings growing a solid pace. Even with the sluggish economy, Brunswick looks like a decent bet, but if the recovery picks up and boat sales improve, the stock could surge once again.
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Apple's Earnings Surprise Fails to Propel Stocks Higher
Blue-chip stocks are lower today after mixed earnings results from Apple (NASDAQ: AAPL ) and Caterpillar (NYSE: CAT ) competed with a report that new-home sales came in above expectations for the month of June. With roughly an hour left in the trading session, the Dow Jones Industrial Average (DJINDICES: ^DJI ) is down by 41 points, or 0.26%.
Apple earnings
Investors have been eagerly awaiting the results of Apple's most recent quarter. Over the past 12 months, shares of the technology giant have floundered, down at one point by as much as 45% from the high of $705 per share set in September of last year.
The concern in this regard has been threefold. First, as smartphones become increasingly commoditized, Apple's famously rich gross margin has begun to show signs of vulnerability. As Bloomberg News recently reported, the average price of a smartphone has plunged to $375 from $450 at the beginning of last year.
The net result is that companies like Apple and Samsung are making far less on each unit they sell. In the first three months of 2012, for example, the iPhone maker's gross margin was a staggering 47.4%. Over the most recent three months, that figure has dropped to 36.9%.
Second, it's been three years since the company came out with an entirely new product line. The last line it introduced was the iPad, which debuted in April of 2010. Since then, it's been rumored that the company is working on wearable technology -- specifically an iWatch -- and refining its Apple TV offering, but the company has yet to confirm or deny any rumors. Click here for a take on the rumors by the Fool's resident Apple expert, Evan Niu.
And finally, albeit as a consequence of the previous two, Apple has struggled to find growth on both the top and bottom lines. In the most recent quarter, Apple's net income dropped on a year-over-year basis by 22%, while its revenue advanced by less than 1%.
Shares of Apple are nevertheless surging today, up by nearly 6% at the time of writing, thanks to better-than-expected sales of its flagship iPhone. As my colleague Tim Beyers noted, the company sold an impressive 31 million smartphones over the quarter -- a 20% improvement over the same period of last year.
To read more about Apple's earnings, check out Evan's take on how Apple is putting its money where its mouth is.
Caterpillar earnings
On the other end of the spectrum, shares of Caterpillar are dropping 2.7% today on the heels of its worse-than-expected earnings report. The industrial giant has struggled since infamous short-seller Jim Chanos announced to the world that he was taking a short position in the industrial heavyweight.
"I believe the commodities super-cycle built on the back of the Chinese construction boom is coming to an end," Chanos told an audience at CNBC's Delivering Alpha conference last week.
And, at least thus far, Chanos appears to be onto something. For the three months ended June 30, the company's earnings and revenue fell by 40% and 16%, respectively, compared to the same month of last year. In addition, as my fellow Fool Dan Dzombak observed, "The company also cut its forecast for 2013 EPS from $7 to $6.50 and lowered its revenue guidance from $56 billion-$58 billion to $57 billion-$61 billion."
New-home sales
Finally, shares of the nation's largest homebuilders are all tanking today despite an upbeat reading from the Department of Commerce on new-home sales last month. According to the government, sales in June equated to a seasonally adjusted annual rate of 497,000. That's 35% higher than in the same month last year and 8.3% up from May.
The reason homebuilders like D.R. Horton (NYSE: DHI ) and Toll Brothers (NYSE: TOL ) are taking it on the chin, in turn, has to do with the trend in prices. To wit, the median price of a new home fell in June by nearly 5% from $262,800 in May to $249,700. And just like Apple's experience with falling iPhone sales, if this trend continues it will put pressure on these companies' margins, and thus their bottom lines.
Apple has a history of cranking out revolutionary products -- and then creatively destroying them with something better. Read about the future of Apple in the free report "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.
Wednesday, July 24, 2013
Best Tech Stocks To Buy For 2014
The following video is from Tuesday's�Investor Beat, in which host Chris Hill and analysts Jason Moser and Matt Argersinger dissect the hardest-hitting investing stories of the day.
Noodles & Company's (NASDAQ: NDLS ) stock continues to rise. Westport Innovations (NASDAQ: WPRT ) experiences a pullback. Southwest Airlines (NYSE: LUV ) and DISH Network (NASDAQ: DISH ) team up to offer live TV to passengers. And it was a bad day for anyone who thinks Amazon.com (NASDAQ: AMZN ) is overvalued. In this installment of Investor Beat, Jason and Matt discuss four stocks making big moves today.
What does the future hold for Amazon?
It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.
Best Tech Stocks To Buy For 2014: Reading International Inc(RDI)
Reading International, Inc., together with its subsidiaries, engages in the development, ownership, and operation of entertainment and real property assets in the United States, Australia, and New Zealand. It operates multiplex theatres; and involves in real estate development, as well as the rental of retail, commercial, and live theater assets. The company manages its cinema businesses under the Reading, Angelika Film Center, Consolidated Amusements, and City Cinemas brand names. As of December 31, 2010, it had interests in 56 cinemas comprising approximately 453 screens; fee interests in 4 live theaters; and fee ownership of approximately 1.1 million square feet of developed commercial real estate, and approximately 14.9 million square feet of land. Reading International also owns a 66% unincorporated joint venture interest in a leased 5-screen multiplex cinema in Melbourne. The company was founded in 1937 and is headquartered in Commerce, California.
Best Tech Stocks To Buy For 2014: FKP Property Group (FKP.AX)
FKP Limited is a real estate investment holding manager. Through its subsidiaries, the firm operates through retirement, development, land and funds management and property investment. It primarily engages in development comprising commercial, industrial, retail, and residential; construction; land subdivision; retirement village ownership and management; property investment; and asset management. The firm invests in real estate markets of Australia. From Land division, it engages in the acquisition of land for development and sale ranging from small infill projects to master planned residential communities. From Property Development, the firm engages in the development and construction of residential commercial, retail, retirement villages, and industrial properties. From the Retirements division, the firm engages in the management of retirement villages. Through Investment and Funds Management, it engages in the investment and management of income producing properties, a nd managed investment schemes. FKP is based in Brisbane, Australia.
Best Stocks To Own Right Now: Uniserve Communications Corpora (USS.V)
Uniserve Communications Corporation engages in the provision of Internet access and related communications services primarily in Canada. The company�s services include Internet, digital phone, long distance calling, Web hosting, domain registration, fax to email, telephony, managed IT, co-location, cloud computing, and support services. It also operates as a social media company that involves in the development of Kinzin.com, a social publishing platform that allows community groups to privately collaborate and share by uploading and printing photos, as well as helps to create unique photo prints, trading cards, calendars, photo books, and other commemorative items. The company delivers voice and data services to approximately 50,000 retail consumers and small businesses. Uniserve Communications Corporation was founded in 1988 and is headquartered in Vancouver, Canada.
Tuesday, July 23, 2013
5 Best Stocks To Invest In 2014
On Tuesday, Electronic Arts (NASDAQ: EA ) 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.
Electronic Arts is a leader in the video-gaming industry. But that industry has been under fire lately, as the revolution in low-priced mobile gaming threatens the business model of the high-cost console-based offerings on which Electronic Arts has relied and thrived for years. Let's take an early look at what's been happening with Electronic Arts over the past quarter and what we're likely to see in its quarterly report.
5 Best Stocks To Invest In 2014: Coffee Holding Co. Inc.(JVA)
Coffee Holding Co., Inc. engages in manufacturing, roasting, packaging, marketing, and distributing roasted and blended coffees in the United States and Canada. The company offers three categories of products: wholesale green coffee, private label coffee, and branded coffee. The wholesale green coffee product category consists of unroasted raw beans imported from worldwide that are sold to roasters and coffee shop operators in approximately 90 varieties. The private label coffee product category includes coffee roasted, blended, packaged, and sold under the specifications and names of others. As of October 31, 2010, the company supplied private label coffee under approximately 34 different labels to wholesalers and retailers in cans, brick packages, and instants in various sizes. The branded coffee product category comprises coffee roasted and blended to the company's own specifications and offered under its seven brand names in various segments of the market. The company also offers other products, including trial-sized mini-brick coffee packages; specialty instant coffees; instant cappuccinos and hot chocolates; and tea line products. Its coffee brands include Cafe Caribe, S&W, Cafe Supremo, Don Manuel, Fifth Avenue, Via Roma, IL CLASSICO, and Entenmann. Coffee Holding Co., Inc. markets its private label and wholesale coffee through trade shows, industry publications, face-to-face contacts, internal sales force, and non-exclusive independent food and beverage sales brokers, as well as through its Web site, coffeeholding.com. The company was founded in 1971 and is headquartered in Staten Island, New York.
5 Best Stocks To Invest In 2014: Northeast Community Bancorp Inc.(NECB)
Northeast Community Bancorp, Inc. operates as the holding company for Northeast Community Bank that provides various banking and financial products and services to consumers and businesses. It offers interest bearing demand accounts, such as negotiable order of withdrawal and money market accounts; savings accounts; non-interest bearing demand accounts, including checking accounts; and certificates of deposit. The company?s loan portfolio comprises multi-family and mixed-use real estate loans, non-residential real estate loans, equity lines of credit on real estate loans, commercial loans, construction loans, and consumer loans. In addition, it provides investment advisory and financial planning services. As of July 11, 2011, the company operated four full-service offices in New York; two full-service branches in Danvers and Plymouth, Massachusetts; and a loan production office in Danvers, Massachusetts. It serves customers in New York, Massachusetts, New Jersey, Connecti cut, and Pennsylvania. The company is headquartered in White Plains, New York.
5 Best Stocks To Own Right Now: Cleantech Transit Inc (CLNO)
Cleantech Transit, Inc., incorporated on June 28, 2006, is a development-stage company. The Company focuses to explore opportunities in the development and production of hybrid, electric, alternative fuel and diesel heavy duty transit buses, luxury motor coaches and tour buses. On July 11, 2011, the Company formed Cleantech Energy, Inc. as a wholly owned subsidiary. In February 2013, the Company announced that acquired from Crown Equity Holdings Inc., Crown Buy Rite.
On July 25, 2011, the Company formed Cleantech Exploration Corp. as a wholly owned subsidiary. On October 31, 2011, the Company acquired a 40% interest in Ortigalita Power Systems, LLC a waste power generating project in California.
5 Best Stocks To Invest In 2014: F.B.D.HLDGS ORD EUR0.60(FBH.L)
FBD Holdings plc, through its subsidiaries, primarily engages in general insurance underwriting business in Ireland and other countries in European Union. It offers various business insurance products, including shop insurance; pub insurance; office based professional insurance; manufacturers, distribution, and wholesale insurance; and restaurant, cafe, and takeaway insurance. The company also offers other business insurance products for property, business interruption, employer?s liability, public liability, products liability, money, and deterioration of food to small and medium enterprises; property insurance for commercial and private lets; medical surgery insurance; insurance for hotels, guest houses, and B&B?s; and self build insurance, as well as commercial vehicle insurance, motor fleet insurance, personal car insurance, farm insurance, and home insurance. In addition, it provides various personal finance solutions, including general insurance broking, life assur ance/pension products, broking/investment advice, installment finance, mortgage protection quotes, life and serious illness cover products, mortgage advices, and income protection solutions, as well as other financial solutions for businesses. Further, the company holds interests in various hotel and leisure properties comprising the La Cala and Sunset Beach Resorts in Spain, as well as in the FBD Hotels in Ireland. FBD Holdings plc was incorporated in 1988 and is based in Dublin, Ireland.
5 Best Stocks To Invest In 2014: Heartland Payment Systems Inc. (HPY)
Heartland Payment Systems, Inc. provides bankcard payment processing services in the United States and Canada. It facilitates the exchange of information and funds between merchants and cardholder�s financial institutions; and offers end-to-end electronic payment processing services, including merchant set-up and training, transaction authorization and electronic draft capture, clearing and settlement, merchant accounting, merchant assistance and support, and risk management to merchants. The company also provides other merchant services comprising payroll processing, gift and loyalty programs, and prepaid and stored-value solutions; paper check processing; payroll and related tax filing services; and secure point-of-sale solutions, as well as sells and rents point-of-sale devices and supplies. In addition, it develops, manufactures, sells, services, and maintains computer software to facilitate accounting and management functions of food service operations of K to 12 sch ools. The company markets its bankcard payment processing services directly to small and mid-sized merchants, and national and mid-tier merchants. Heartland Payment Systems, Inc. was incorporated in 2000 and is headquartered in Princeton, New Jersey.
Monday, July 22, 2013
Microsoft's Real Problem Lies Beneath the Surface
Last week Microsoft (NASDAQ: MSFT ) dropped a bomb on investors. The company announced $0.59 EPS, quarterly revenue that increased by 10% from last year to $19.8 billion, and revenue for fiscal 2013 was up 6% from the year before... and also announced a $900 million "inventory adjustment" for Surface RTs. Ouch.
But the real issue isn't that Microsoft made too many RTs and can't sell them -- it's the fact that the company didn't have the insight to see that consumers wouldn't want it in the first place.
Microsoft Surface RT. Source: Microsoft.
The company's inventory adjustment basically means that Microsoft miscalculated demand for the Surface RT, and now many of the devices are sitting in inventory stockpiles, the total amount being as high as 6 million units by some estimates.
Give 'em what they want the first time
This isn't the first time over the past few months that Microsoft realized it misjudged what consumers want. After strong user demand, the company released the Windows 8.1 Preview upgrade last month that brought the Start button back to its OS and an easier way to access the desktop. Around the same time, Microsoft completely back-pedaled on game-sharing restrictions and always-on Internet requirements for its upcoming Xbox One after the gaming community lashed out against the company.
Microsoft cut the Surface RT price last week by $150 because consumers don't want a $500 Surface RT -- and Microsoft can't even be sure they want one for $350.
How can a tech company survive on making products that people don't want? The obvious answer is that it can't. At some point Microsoft needs to stop thinking it knows what users want and actually create a tablet device that they do want. A quick glimpse at the iPad or Samsung's Android tablets would be a good place to start.
But looking to the competition for inspiration seems to be difficult for Microsoft. I think the company is taking an old-guard approach and believes that it should be the No. 1 mobile software OS because it held that top spot in the desktop business for decades.
Microsoft needs to shed a bit of its overconfidence if it wants to move ahead with its products. Investors may be able to stomach the $900 million inventory adjustment, but I can't imagine that it hasn't made them at least a little uneasy. Microsoft has failed to take the simple and straightforward mobile OS approach that Apple and Google have, and the company's paying for it. Instead of thinking of itself as a tech dominator, maybe Microsoft should consider itself the underdog fighting for mobile relevancy. At least then the company would have the right perspective.
While Microsoft's tablets are having a rocky start, it doesn't mean the company is out of the competition just yet. But four other tech companies will duke it out for the top spot -- so Microsoft needs to kick its tactics into high gear. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free tech report. Click here now to get free access.
Top 10 Penny Companies To Own In Right Now
It was a strange week on Wall Street, highlighted by a slew of earnings reports, an economic slowdown in China, and an epic fall for gold. At the end of the week, the Dow Jones Industrial Average (DJINDICES: ^DJI ) had fallen 2.14% and the S&P 500 (SNPINDEX: ^GSPC ) was off 2.11%. The biggest data point investors should be concerned with was 7.7% GDP growth in China, which fell short of the 8% estimate. Growth of 7.7% would be a blistering pace in the U.S., but in China it's a snail's pace, and the country's growth has been the one bright spot for the global economy.
There was some good news on the market this week. Here are the top three stocks on the Dow.
Coca-Cola (NYSE: KO ) was the biggest winner, jumping 3.8% this week. The company made all of its gains on Tuesday after it reported first-quarter earnings. Revenue fell 0.9% in the quarter, but earnings of $0.46 per share were enough to beat expectations by a penny, and investors rejoiced at the news. Coca-Cola is obviously not a high growth stock these days, but it has very steady earnings, and investors will pay a premium for that in uncertain economic times.
Top 10 Penny Companies To Own In Right Now: Universal Travel Group(UTA)
Universal Travel Group, together with its subsidiaries, operates as a travel service provider offering air ticketing and hotel booking services, as well as domestic and international packaged tourism services via the Internet, customer representatives, and kiosks in the People?s Republic of China. It also provides technological solutions to travel reservations, and tour planning and tour guide services. In addition, the company operates TRIPEASY Kiosks, which are placed in hotels, office buildings, banks, shopping malls, and MTR stations for travel booking with credit cards or bank debit cards. Universal Travel Group is headquartered in Shenzhen, the People?s Republic of China.
Advisors' Opinion:- [By Louis Navellier]
As China’s economy grows, the Chinese middle class has taken flight — literally. Providing the travel arrangements for this newfound class of Chinese travelers is Universal Travel Group (UTA).
The company provides domestic and international airline ticketing services, along with cargo transportation agency services. But it’s not just flights that UTA helps citizens book. The company also provides hotel reservations, tour planning, ground transportation, railway and express delivery and air delivery services.
UTA is the travel agency in China, and considering the shares have booked a 190% gain over the past 12 months, it certainly seems like the sky is the limit for UTA.
I rate UTA an A, making it a strong buy.
Top 10 Penny Companies To Own In Right Now: Pervasive Software Inc.(PVSW)
Pervasive Software, Inc. provides embeddable software and SaaS services for data management, data integration, B2B exchange, and analytics. Its embeddable Pervasive PSQL database engine provides database reliability in a near-zero database administration environment for packaged business applications. Pervasive Software?s multi-purpose data integration platform, available on-premises and in the cloud, accelerates the sharing of information between multiple data stores, applications, and hosted business systems, and allows customers to re-use the same software for diverse integration scenarios. Pervasive DataRush is an embeddable parallel-processing platform enabling data-intensive applications, such as claims processing, risk analysis, fraud detection, data mining, predictive analytics, sales optimization, and marketing analytics. The company serves customers in approximately 150 countries. Pervasive Software, through Pervasive Innovation Labs, also invests in the explorat ion and creation of solutions for the data analysis and data delivery challenges. Pervasive Software, Inc. has a strategic alliance with A.D.A.M. Inc. The company was founded in 1994 and is headquartered in Austin, Texas with additional offices in Greenville, South Carolina; Brussels, Belgium; Frankfurt, Germany; Paris, France; and London, the United Kingdom.
5 Best Stocks To Invest In 2014: PMC - Sierra Inc.(PMCS)
PMC-Sierra, Inc. engages in the design, development, marketing, and support of semiconductor solutions for the enterprise infrastructure and communications infrastructure markets. Its products include controllers based on Fibre Channel, Serial Attached SCSI, and Serial ATA that enable the development of external and server-attached storage systems; framers and mappers, which convert the data into a format for transmission in the network before the data is sent to the next destination; line interface units that transmit and receive signals over a physical medium, such as wire, cable, or fiber; and microprocessor-based system-on-chips, which perform the high-speed computations that help in identifying and controlling the flow of signals and data in various network equipment used in the communications, storage, and enterprise markets. The company also offers packet and cell processors that examine the contents of cells or packets, and perform various management and reporting functions; radio frequency transceivers, which transmit and receive broadband signals over the air; and serializers/deserializers that convert and multiplex traffic between slower speed parallel streams and higher speed serial streams. PMC-Sierra sells its products to end customers directly, as well as through distributors and independent manufacturers? representatives primarily in China, Asia, Japan, Taiwan, Europe, the United States, and the Middle East. The company was founded in 1983 and is based in Santa Clara, California.
Top 10 Penny Companies To Own In Right Now: New Energy Systems Group.(NEWN)
New Energy Systems Group, through its subsidiaries, manufactures and distributes lithium battery shells and related products primarily in China. It develops, customizes, and produces steel and aluminum battery shells and caps. The company principally serves large lithium battery manufacturers. It also engages in the research, manufacture, and sale of mobile backup power systems for mobile phones, laptops, solar, MP4, PMPs, PDAs, DC, and digital applications. The company was formerly known as China Digital Communication Group and changed its name to New Energy Systems Group in November 2009. New Energy Systems Group was incorporated in 2001 and is based in Shenzhen, China.
Top 10 Penny Companies To Own In Right Now: Ever-Glory International Group Inc.(EVK)
Ever-Glory International Group, Inc., together with its subsidiaries, engages in the manufacture, distribution, and sale of apparel for women, men, and children. Its products include coats, jackets, slacks, skirts, shirts, trousers, vests, skiwear, down jackets, knitwear, and jeans. The company offers its products to the casual wear, sportswear, and outerwear brands, as well as retailers, such as department stores, flagship stores, stores-within-a-store, and specialty stores primarily in Europe, the United States, Japan, and the People?s Republic of China. As of December 31, 2010, it operated 293 retail stores in the People?s Republic of China. The company is based in West Covina, California.
Top 10 Penny Companies To Own In Right Now: Coffee Holding Co. Inc.(JVA)
Coffee Holding Co., Inc. engages in manufacturing, roasting, packaging, marketing, and distributing roasted and blended coffees in the United States and Canada. The company offers three categories of products: wholesale green coffee, private label coffee, and branded coffee. The wholesale green coffee product category consists of unroasted raw beans imported from worldwide that are sold to roasters and coffee shop operators in approximately 90 varieties. The private label coffee product category includes coffee roasted, blended, packaged, and sold under the specifications and names of others. As of October 31, 2010, the company supplied private label coffee under approximately 34 different labels to wholesalers and retailers in cans, brick packages, and instants in various sizes. The branded coffee product category comprises coffee roasted and blended to the company's own specifications and offered under its seven brand names in various segments of the market. The company also offers other products, including trial-sized mini-brick coffee packages; specialty instant coffees; instant cappuccinos and hot chocolates; and tea line products. Its coffee brands include Cafe Caribe, S&W, Cafe Supremo, Don Manuel, Fifth Avenue, Via Roma, IL CLASSICO, and Entenmann. Coffee Holding Co., Inc. markets its private label and wholesale coffee through trade shows, industry publications, face-to-face contacts, internal sales force, and non-exclusive independent food and beverage sales brokers, as well as through its Web site, coffeeholding.com. The company was founded in 1971 and is headquartered in Staten Island, New York.
Top 10 Penny Companies To Own In Right Now: Tyson Foods Inc.(TSN)
Tyson Foods, Inc., together with its subsidiaries, engages in the production, distribution, and marketing of chicken, beef, pork, and prepared food products, as well as related allied products worldwide. The company?s Chicken segment involves in breeding and raising chickens, as well as processing live chickens into fresh, frozen, and value-added chicken products. Its Beef segment processes live fed cattle and fabricates dressed beef carcasses into primal and sub-primal meat cuts and case-ready products The company?s Pork segment involves in the processing live market hogs; and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. Its Prepared Foods segment manufactures and markets frozen and refrigerated food products comprising pepperoni, bacon, beef and pork pizza toppings, pizza crusts, flour and corn tortilla products, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes, and processed meats. The company mark ets and sells its products to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, chain restaurants or their distributors, international export companies, and domestic distributors, as well as to foodservice operations, such as plant and school cafeterias, convenience stores, hospitals, and other vendors. Tyson Foods, Inc. also offers its allied products to the manufacturers of pharmaceuticals and technical products, as well as to pork processors. The company was founded in 1935 and is headquartered in Springdale, Arkansas.
Top 10 Penny Companies To Own In Right Now: Black Diamond Inc.(BDE)
Black Diamond, Inc., together with its subsidiaries, develops, manufactures, and distributes outdoor recreation equipment and active lifestyle products in the United States and internationally. It provides climbing products, including belay/rappel devices, bouldering products, carabiners and quickdraws, chalk, chalk bags, climbing packs, crampons, crash pads, dogbones and runners, harnesses, ice axes and piolets, ice and rock protection devices, and various other climbing accessories; and skiing products comprising backpacks, winter packs for skiing and snowboarding, bindings, boots, poles, skis, skins, snow gloves, snow packs, and snow safety devices. The company also offers mountaineering line products, such as backpacks for alpine expeditions, backcountry excursions, overnight trips, and day hikes; and bivy sacks, rain sacks, gaiters, gloves, headlamps, lights, tents, trekking poles, and other hiking and mountaineering accessories. In addition, it provides hydration pac ks for trail running and cycling; travel and lifestyle products, which include duffle bags, messenger bags, and small bags and pouches carry electronics and other accessories; and various apparel and accessory products. The company sells its products to mountain climbers, winter outdoor enthusiasts, backpackers and campers, cyclists, top endurance trail runners, and outdoor-inspired consumers under the Black Diamond and Gregory brands through sporting goods and outdoor recreation stores, retail stores, and consumer catalogs, as well as through blackdiamondequipment.com. Black Diamond, Inc. is headquartered in Salt Lake City, Utah.
Top 10 Penny Companies To Own In Right Now: Crystal Rock Holdings Inc.(CRVP)
Crystal Rock Holdings, Inc. engages in the production, marketing, and distribution of bottled water, and distribution of coffee, ancillary products, and other office refreshment products in New England, New York, and New Jersey. The company also rents and sells water coolers to customers to dispense bottled water; and sells and rents units to commercial accounts that filter water from the existing source on site. It provides coolers in a range of consumer preferences, such as cold, or hot and cold dispensing units. In addition, the company rents and sells coffee brewing equipment; and distributes various coffee, tea, and other hot beverage products and related supplies, as well as other consumable products used around the office. Further, it offers vending services. The company markets and distributes its water products in three and five gallon bottles to homes and offices. Vermont Pure Holdings markets its products primarily under the Vermont Pure Natural Spring Water, Cr ystal Rock, Cool Beans, Baronet, and Green Mountain Coffee Roasters trade names. The company was formerly known as Vermont Pure Holdings, Ltd. and changed its name to Crystal Rock Holdings, Inc. on May 1, 2010. Crystal Rock Holdings was founded in 1989 and is based in Watertown, Connecticut.
Top 10 Penny Companies To Own In Right Now: WSI Industries Inc.(WSCI)
WSI Industries, Inc. engages in precision contract metal machining business in the United States. The company offers metal components in medium to high volumes requiring tolerances in accordance with customer specifications. It primarily serves aerospace/avionics/defense, recreational vehicles, energy, and bioscience industries. The company was founded in 1950 and is headquartered in Monticello, Minnesota.