Friday, January 31, 2014

ON THE MARKET - Alert > The VIX ticked 11.99 on Friday - watch it

Pre-market – Monday 11-18-2013

"The most important single central fact about a free market is that no exchange takes place unless both parties benefit."

~ Milton Friedman ~

Dr. John L. Faessel

ON THE MARKET

Commentary and Insights

Quotes of the day

"I know more about policies on any particular issue than my policy directors."

&

"I am absolutely certain that generations from now we will be able to look back and tell our children that this was the moment when we began to provide care for the sick and good jobs to the jobless; this was the moment when the rise of the oceans began to slow and our planet began to heal."

~ Barack Obama ~

~~~~~~

"I would simply ask—do you really want the same people who implemented Healthcare.gov (the Obamacare website) to run medicine in this country?" Mark Ling, M.D. Ph.D.

"If you like your plan" video montage

ALERT > The VIX ticked 11.99 on Friday - WATCH IT…

MARKET

The Dow Jones Industrials and S&P 500 (SPX) had their sixth straight week of price gains however it was another mostly dull week despite new highs for all three major indexes. Last week's volume was below average in the NYSE and slightly above average in the Nasdaq tho it was options expiration. "Price" in the S&P 500 (SPX) remains well above the resistance (now questionable support) of the top trendline of the channel that goes back to 2009. Overboughtness (McClellan) is in Neutral.

My Take

Major stock indexes remain extended and remain in strong uptrends and they keep adding points with hardly a hiccup albeit the gains have been relatively modest week over week. Bullish sentiment has eased over the last week although some indicators are flashing euphoric alerts. I continue to believe that discretion suggests that some $$ should be taken off the table as the market is priced to perfection. The debt ceiling is closing in and the Iran nuclear situation is smoldering on the front burner as they are very close to having nukes and I continue to believe that Israel, in concert with possibly the Saudi's, will act while the USA continues to have its head in the sand. The global debt behemoth, manipulation of interest rates, printing money and debasement of our currency continues unabated. EuroLand is slows with new rate cuts. Oh and the VIX premier gauge of fear ticked 11.99 on Friday. It's a la la land situation where major players seem to believe that we are in a new paradigm and debt means nothing – in effect saying; "let the good times roll – thank you – I'm fine and I'll have another bottle, err - make it two, of tequila." I'm dizzy just watching them getting bombed a la 1999.

Remember the prescient Volker quote;

In my ON THE MARKET report on 7-8-1999 I gave you the 'IT' quote:

"The fate of the world economy is now totally dependent on the growth of the US economy, which is dependant on the stock market, whose growth is dependent on about 50 stocks, half of which have NEVER REPORTED ANY EARNINGS." Said Paul Volker, former Chairman of the US Federal Reserve, who made that statement in the summer of 1999 when the Nasdaq was at 2500.Recall that in October 1998 the Nasdaq traded at 1357. In March 2000 it topped and traded at 5132.

Of Note re IRAN

Israeli Prime Minister Benjamin Netanyahu has called last week's offer to Iran, which incredibly had the support of USA's Secretary of State John Kerry, a "very, very bad deal."

S&P 500

The S&P 500 (SPX) closed Friday at 1798.18 - the prior Friday it was 1770.61

The 50-day moving average support is 1724

Short term 'Price' support is at 1791 / 1773 /

The a bit further out 1762 / 1746 / 1740 / 1716 / 1646 and 1627

The 200-day moving average support is at 1637

The top trend line of the channel that goes back 2009 to at (SPX) 1756 is now support ('that' previous resistance was breached on October 22nd.)

Channel and trend line support of (November 2012) is at 1702

Then deep channel and trend line support of (October 2011) is at 1595

Then the deepest channel and trend line support of (March 2009) is at 1389

* This Week's Investor Sentiment

The Bullishness / Bearishness complex overview has eased from recent post high Bullish readings.

(High BULLISH readings in the Investor Sentiment Readings usually are signs of Market tops; low ones, market bottoms.)

The Citigroup "Panic / Euphoria" Model remained in 'very high' neutral at a plus 0.42 registering a duplicate of last week's 0.42. These numbers are very near the Euphoria zone. In February 2013 it ticked into Euphoria at plus 0.49 and that posting was the highest since May 2008. At the end of June, 2011 it ticked cycle lows of minus0.31 in the Panic mode.

The American Association of Individual Investors [AAII]Investor Sentiment Survey of BULLISHNESS slid to 39.2% from 45.5% the prior week.

The "Bullish" survey posted recent highs of 52.3% 8-months ago. It posted cycle lows of 22.2% on 7/23/2012 the lowest percentile since August 2010. Long-Term Average: Bullish: 39.0%

The American Association of Individual Investors [AAII] Investor Survey of BEARISHNESS added a few percentile to 27.5% from last week's 21.8 -- 5- weeks ago it registered the lowest read since 1/12/2012 at 17.6%. Cycle highs of Bearishness of 54.5% were posted 14 weeks ago. Long-Term Average: Bearish: 30.5%

Consensus Index BULLISH was up to 72% from 68% last week's posting. New Cycle highs in Bullishness of 77% were posted 6-months ago matching the top tick of 77% on 10/11/2007.

The Market Vane (Market Letter Survey) posted a duplicate of last week's 65%. In October 2007 it topped at 70% bullish.

The BARRON's Confidence Index is 72.6 upa tick from 72.5 the prior week, one-year ago it was 66.6.

The Confidence Index is the premier measure of how the bond markets trillions (total global is around $93 trillion and USA is about 39% of that) are allocated: (The bond market is twice the size of the stock market.) The Index is the High-grade bond index divided by intermediate-grade index. A decline in latter vs. former - generally indicates rising confidence, pointing to higher stocks.

Friday's key indicators and metrics:

Cycle highs or lows are in red

·McClellan Oscillator is in Neutral at plus 39.7%

·3-month $ LIBOR hangs at new lows of 0.23810%

·CBOE Put / Call Volume Ratio – 0.75

·VIX – 12.19 - interday it ticked 11.99

·Swiss Franc – 1.0929

·US Dollar Index – 80.90

·Euro – 1.3490

·Japanese Yen – 0.9979

·Canadian Dollar – 0.9564

·Aussie Dollar –0.9343

·Crude oil (NYMEX) 93.84

·Brent crude 107.89

·Copper – 3.1710

·Gold (COMEX) – 1287.4

·Natural Gas (Globex) – 3.660

·The Treasury 5-year yield – 1.34%

·The Treasury 10-year yield – 2.70% - cycle high was on 9/10/2013 at 2.98%

·The 30-year Treasury – 3.80% - cycle high was on August 22nd at 3.93%

·Silver (COMEX) – 20.727

·Platinum 1438.9

·Palladium 732.65

·Lumber (CME) – 363.50

.

Thursday, January 30, 2014

Toyota to pay damages in fatal acceleration case

Toyota has agreed to pay punitive damages on top of $3 million in other awards to victims of an alleged sudden acceleration case in a Toyota Camry that included a death, an Oklahoma judge said Friday.

The jury already found Toyota Motor Corp. liable Thursday for the crash that killed Barbara Schwarz and injured Jean Bookout, who was awarded $1.5 million. Schwarz's family was also awarded $1.5 million in compensation for the loss.

The jury decided Toyota acted with "reckless disregard" for the rights of others.

Oklahoma County District Judge Patricia Parrish said Friday that jurors won't be deliberating additional punitive damages.

The judge didn't disclose the amount of punitive damages awarded, which is still being discussed. The judge has barred the parties from discussing the case publicly until the trial's conclusion.

Earlier this month, a California jury failed to find Toyota liable for the death of a California woman who was killed when her 2006 Camry apparently accelerated and crashed despite her efforts to stop. Jurors deliberated for about five days before concluding the vehicle's design didn't contribute to the death of 66-year-old Noriko Uno, who died in August 2009 when she was struck by another motorist, sending her vehicle into a telephone pole and tree.

In July, a federal judge in California approved a $1.6 billion settlement in a class action suit filed over economic loss suffered by owners who say their vehicles lost value over the adverse publicity about the issue.

Contributing: Associated Press

Tuesday, January 28, 2014

U.S. Steel and AK Steel at Risk from Falling Steel Prices

Investors turned bullish on higher steel prices for U.S. producers in 2013, helping to spur stocks like US Steel (X) and AK Steel (AKS) higher during the latter half of the year. They might want to rethink that position this year.

Bloomberg

JPMorgan’s Michael Gambardella and team explain:

Specifically, we expected the combination of domestic capacity returning to the market at the time of weakening cost support from iron ore and coking coal would depress U.S. prices. In addition, scrap prices play a key factor in U.S. sheet steel markets given the prevalence of scrap-based mini-mills at roughly 33% market share. After a substantial rise through year end 2013, momentum appears to be fading based on weaker than expected January benchmarks and more importantly signs of stress in the country’s biggest scrap importer, Turkey. Lastly, the rapid rise in domestic prices increased U.S. premiums over Chinese steel prices to near record levels and we are beginning to see the first signs of the resulting increased import pressure on U.S. prices.

As a result, they reiterated their bearish view on US Steel and AK Steel, while stating their preference of Nucor (NUE) and Steel Dynamics (STLD) for their “variable cost structures and significant leverage to an eventual recovery in non-residential construction activity,” Gambardella says. UBS stated a similar preference earlier this month.

Shares of US Steel have gained 0.2% to $25.38 today, while AK Steel has dropped 2.9% to $6.07, Nucor has fallen 0.5% to $48.54 and Steel Dynamics has declined 1.8% to $16.66.

Monday, January 27, 2014

Stocks Slip on Concern Washington to Drag Corporate Outlooks

NEW YORK (TheStreet) -- Major U.S. stock markets were slipping Tuesday as investors monitor the economic uncertainties spurred by the drawn-out fiscal debates in Washington and attempt to gauge the impact on corporate outlooks as the third-quarter earnings season begins this week.

Still, there is optimism that the impasse over debt-ceiling talks in government will be resolved as Senate Majority Leader Harry Reid prepares to unveil a standalone bill to increase the government's borrowing caps.

Reid's bill would allow the U.S. at least $1 trillion in additional borrowing room beyond the $16.7 trillion debt limit expected to be breached on October 17, providing the government with enough borrowing ability to pay its bills through next year's general elections in November.

The S&P 500 was down 0.37% to 1,669.85, while the Dow Jones Industrial Average was off 0.37% to 14,881.27. The Nasdaq was giving up 0.85% to 3,738.45. "If it gets off the ground, it ends the threat of a debt default for the immediate future," said Peter Cardillo, chief market economist at Rockwell Global Capital in Manhattan, in an emailed comment about Senate's expected move. "We think earnings sentiment remains neutral as the political impasse overshadows for now. However, that's not to say individual companies will not be punished," he added. Tower Group International (TWGP) was dropping 36.3% to $4.74, its steepest fall since its 2004 public market debut, after the Bermuda-based insurer said that it will have to explore "a range of strategic options" following a goodwill impairment charge of about $215 million and its discovery that it will have to add $365 million to its loss reserves reflecting payouts owed for workers compensation among a host of other liabilities. Jamba, Inc. (JMBA) was sinking 18.63% to $10.95 after the smoothie maker said that less impactful than usual marketing campaigns amid a slowdown in consumer spending will reduce third-quarter same-store sales by 3% to 4% and that 2013 same-store sales may show up flat to up 1%. Xerox (XRX) was surrendering 0.96% to $10.30 after the office equipment company disclosed that it is being probed by the Securities and Exchange Commission on certain accounting practices at Affiliated Computer Services, a business it bought in February 2010 and is now a part of Xerox's Services unit. IT management company SolarWinds (SWI) was shedding 2.21% to $33.70 after saying that it will buy privately held Confio Software for $103 million in cash. Alcoa (AA) will be reporting after the market close, while JPMorgan Chase (JPM) and Wells Fargo (WFC) will be releasing their quarterly results on Friday. The benchmark 10-year Treasury was falling 3/32, raising the yield to 2.641%. Follow @atwtse -- Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.>

Sunday, January 26, 2014

Top Airline Stocks To Invest In 2014

So far this year, Boeing (NYSE: BA  ) says it has booked 1,229 "gross" orders for various configurations of its 737, 747, 777, and 787 airliners from a host of customers. Minus 161 orders canceled by customers, this leaves Boeing with 1,054 "net" orders for the year. But what about its archrival, Airbus (NASDAQOTH: EADSY  ) ?

In its latest update on "orders and deliveries" accomplished in November 2013, Airbus revealed its numbers as well. Airbus doesn't report its results in precisely the same way Boeing does, but here are the numbers as we know them.

Deliveries
Airbus delivered 58 planes to its customers in November, growing the delivery tally to 562 planes year to date, a 9% improvement over where the plane builder was this time last year.

Orders
Airbus recorded orders for 108 jetliners in the month of November. They broke down as follows:

one ACJ320 corporate jet one A319ceo (equipped with the current generation of engines) 10 A320ceos 10 A320neos (equipped with next-gen engines) four A321ceos 26 A321neos five A330-200F freighters 40 A350-900s 10 A350-1000s and finally, one A330-200F freighter.�

Year to date, Airbus says it has achieved more than twice its original target of 600 orders this year, booking 1,373 planes in all, and coincidentally surpassing Boeing's gross tally by precisely one gross (144 planes). Airbus also suffered fewer cancellations, 59 in total, with the result being that its net tally for the year also exceeds Boeing's: 1,314 net new orders.

Top Airline Stocks To Invest In 2014: Alaska Air Group Inc. (ALK)

Alaska Air Group, Inc., through its subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc., operates as an airline company serving destinations in the western United States, Canada, and Mexico. The company provides passenger air services; and freight and mail services primarily to and within the state of Alaska and on the West Coast. As of December 31, 2009, it operated a fleet of 110 jet aircraft; and Horizon Air Industries operated a fleet of 18 jets and 40 turboprop aircraft. The company was founded in 1932 and is based in Seattle, Washington.

Advisors' Opinion:
  • [By Tim Beyers]

    Who wins? We won't know for years, but Southwest is already the leading buyer of the MAX, and as such, seems to be a likely benefactor. There's also Alaska Airlines (NYSE: ALK  ) , which already flies from the continental west coast to various destinations in the Hawaiian Islands. The airline has ordered 37 of the planes to upgrade its fleet.

  • [By Adam Levine-Weinberg]

    Unintended consequences?
    As I detailed last month, virtually every major U.S. airline is participating in the upgauging trend. Some, like JetBlue Airways (NASDAQ: JBLU  ) , are expanding their fleets with larger aircraft than they have previously flown. Others, including Alaska Air (NYSE: ALK  ) , are retrofitting existing planes to fit more seats onboard. Southwest Airlines (NYSE: LUV  ) is doing both of these things! Others, like Delta Air Lines (NYSE: DAL  ) , are buying larger planes to replace smaller ones that are being removed from service.

  • [By Adam Levine-Weinberg]

    Southwest: still America's favorite
    Southwest Airlines once again had the lowest complaint rate in the airline industry last year, at 0.25 complaints per 100,000 passengers. Southwest's complaint rate was more than 80% below the industry average, and 50% below second-place finisher Alaska Airlines (NYSE: ALK  ) . The high level of customer satisfaction highlights the value of Southwest's generally cheerful staff, because Southwest's performance on the more objective criteria in the AQR survey was not particularly impressive.

  • [By Asit Sharma]

    The airline industry has a singular talent for draining the pockets of well-intentioned investors. Highly leveraged balance sheets and bankruptcies are the norm. Significant labor costs and unpredictable jet fuel prices wreak havoc on variable costs. Yet some airlines generate solid returns quarter after quarter. Alaska Air Group (NYSE: ALK  ) , Ryanair (NASDAQ: RYAAY  ) , Southwest Airlines (NYSE: LUV  ) , and Copa Holdings (NYSE: CPA  ) each manage to be consistently profitable. Let's examine a few themes they share in common, and zero in on their individual strategic ideas.

Top Airline Stocks To Invest In 2014: Delta Air Lines Inc (DAL)

Delta Air Lines, Inc. (Delta) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company�� route network gives it a presence in every domestic and international market. Delta�� route network is centered around the hub system it operate at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Each of these hub operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The Company�� network is supported by a fleet of aircraft that is varied in terms of size and capabilities.

Delta has bilateral and multilateral marketing alliances with foreign airlines to improve its access to international markets. These arrangements can include code-sharing, reciprocal frequent flyer program benefits, shared or reciprocal access to passenger lounges, joint promotions, common use of airport gates and ticket counters, ticket office co-location, and other marketing agreements. Its international code-sharing agreements enable it to market and sell seats to an expanded number of international destinations. The Company has international codeshare arrangements with Aeromexico, Air France, Air Nigeria, Alitalia, Aeroflot, China Airlines, China Eastern, China Southern, CSA Czech Airlines, KLM Royal Dutch Airlines, Korean Air, Olympic Air, Royal Air Maroc, VRG Linhas Aereas (operating as GOL), Vietnam Airlines, Virgin Australia and WestJet Airlines.

In addition to the Company�� marketing alliance agreements with individual foreign airlines, it is a member of the SkyTeam airline alliance. Delta also has frequent flyer and reciprocal lounge agreements with Hawaiian Airlines, and codesharing agreements with American Eagle Airlines (American Eagle) and Hawaiian Airlines. It has air service agreements with multiple do! mestic regional air carriers that feed traffic to its route system by serving passengers primarily in small-and medium-sized cities.

Through the Company�� regional carrier program, it has contractual arrangements with 10 regional carriers to operate regional jet and, in certain cases, turbo-prop aircraft using its DL designator code. In addition to Delta�� wholly owned subsidiary, Comair, it has contractual arrangements with ExpressJet Airlines, Inc. and SkyWest Airlines, Inc., both subsidiaries of SkyWest, Inc.; Chautauqua Airlines, Inc. and Shuttle America Corporation, both subsidiaries of Republic Airways Holdings, Inc.; Pinnacle Airlines, Inc. and Mesaba Aviation, Inc. (Mesaba), both subsidiaries of Pinnacle Airlines Corp. (Pinnacle); Compass Airlines, Inc. (Compass) and GoJet Airlines, LLC, both subsidiaries of Trans States Holdings, Inc. (Trans States), and American Eagle.

The Company�� SkyMiles program allows program members to earn mileage for travel awards by flying on Delta, Delta�� regional carriers and other participating airlines. Mileage credit may also be earned by using certain services offered by program participants, such as credit card companies, hotels and car rental agencies. In addition, individuals and companies may purchase mileage credits. The Company reserves the right to terminate the program with six months advance notice, and to change the program�� terms and conditions at any time without notice.

SkyMiles program mileage credits can be redeemed for air travel on Delta and participating airlines, for membership in the Company�� Delta Sky Clubs and for other program participant awards. Mileage credits are subject to certain transfer restrictions and travel awards are subject to capacity controlled seating. During the year ended December 31, 2011, program members redeemed more than 275 billion miles in the SkyMiles program for more than 12 million award redemptions. During 2011, 8.2% of revenue miles flown on Delta were from a! ward trav! el.

The Company generates cargo revenues in domestic and international markets through the use of cargo space on regularly scheduled passenger aircraft. Delta is a member of SkyTeam Cargo, an airline cargo alliance. SkyTeam Cargo offers a network spanning six continents and provides customers an international product line.

The Company has several other businesses arising from its airline operations, including aircraft maintenance, repair and overhaul (MRO); staffing services for third parties; vacation wholesale operations, and its private jet operations. Delta�� MRO operation, known as Delta TechOps, is an airline MRO in North America. In addition to providing maintenance and engineering support for its fleet of approximately 775 aircraft, Delta TechOps serves more than 150 aviation and airline customers. Its staffing services business, Delta Global Services, provides staffing services, professional security, training services and aviation solutions to approximately 150 customers. The Company�� vacation wholesale business, MLT Vacations, is the provider of vacation packages in the United States. Its private jet operations, Delta Private Jets, provides aircraft charters, aircraft management and programs allowing members to purchase flight time by the hour.

The Company competes with SkyTeam, United Air Lines, Continental Airlines, Lufthansa German Airlines, Air Canada, American Airlines, British Airways and Qantas.

Advisors' Opinion:
  • [By WALLSTCHEATSHEET.COM]

    Delta was ahead of the curve by purchasing an oil refinery. Other positives for Delta include improve improvements in debt management, revenue and earnings improvements on an annual basis, and a strong company culture. The big concern is the consumer. While Wall Street is enjoying the best time of its life, the average Main Street individual is attempting to figure out a way to survive. The dilemma here is that over the long haul, Delta needs the Main Street consumer in order to thrive.

  • [By WALLSTCHEATSHEET.COM]

    Delta Air Lines provides services that are seeing increased demand as travel for work or leisure becomes more important. The company�today reported financial results for the December quarter. The stock has moved higher in recent years and is currently trading near all-time highs. Over the last four quarters, earnings have been mixed while revenues have been on the rise, which has pleased investors in the company. Relative to its peers and sector, Delta Air Lines has been a year-to-date performance leader. Look for Delta Air Lines to continue to OUTPERFORM.

  • [By Jonathan Yates]

    Stock prices for United Continental (NYSE: UAL), US Airways Group (NYSE: LCC), and Delta Airlines (NYSE: DAL) have soared for 2013.

    Pretty remarkable, when you consider the level of debt each of these companies is carrying.�When the market turns, as it always does, the heavy leverage will be a tremendous burden on the ability of all of these airlines to compete and survive.

Top Blue Chip Companies To Watch For 2015: US Airways Group Inc (LCC)

US Airways Group, Inc. (US Airways Group) is a holding company whose primary business activity is the operation of a network air carrier through its wholly owned subsidiaries, US Airways, Piedmont Airlines, Inc. (Piedmont), PSA Airlines, Inc. (PSA), Material Services Company, Inc. (MSC) and Airways Assurance Limited (AAL). MSC and AAL operate in support of the Company�� airline subsidiaries in areas, such as the procurement of aviation fuel and insurance. It has hubs in Charlotte, Philadelphia and Phoenix and a focus city in Washington, D.C. at Ronald Reagan Washington National Airport (Washington National). During the year ended December 31, 2011, it offered scheduled passenger service on more than 3,100 flights daily to more than 200 communities in the United States, Canada, Mexico, Europe, the Middle East, the Caribbean, and Central and South America. It also has an East Coast route network, including the US Airways Shuttle service.

The Company had approximately 53 million passengers boarding its mainline flights in 2011. During 2011, the Company�� mainline operation provided scheduled service or seasonal service at 133 airports, while the US Airways Express network served 156 airports in the United States, Canada and Mexico, including 78 airports also served by its mainline operation. US Airways Express air carriers had approximately 28 million passengers boarding their planes in 2011. As of December 31, 2011, the Company operated 340 mainline jets and was supported by its regional airline subsidiaries and affiliates operating as US Airways Express under capacity purchase agreements, which operated 233 regional jets and 50 turboprops. The Company�� prorate carriers operated seven turboprops and seven regional jets at December 31, 2011.

In May 2011, US Airways Group and US Airways entered into an Amended and Restated Mutual Asset Purchase and Sale Agreement (the Mutual APA) with Delta Air Lines, Inc. (Delta). Pursuant to the Mutual APA, Delta agreed to acquire 132 slot pa! irs at LaGuardia from US Airways and US Airways agreed to acquire from Delta 42 slot pairs at Washington National and the rights to operate additional daily service to Sao Paulo, Brazil. On December 13, 2011, the transaction contemplated by the Mutual APA closed and ownership of the respective slots was transferred between the airlines. During 2011, the US Airways Express network served 156 airports in the continental United States, Canada and Mexico, including 78 airports also served by its mainline operation. During 2011, approximately 28 million passengers boarded US Airways Express air carriers��planes, approximately 44% of whom connected to or from its mainline flights.

The Company competes with Southwest, JetBlue, Allegiant, Frontier, Virgin America and Spirit.

Advisors' Opinion:
  • [By Ben Levisohn]

    U.S. Airways (LCC) has gained 0.2% to $20.53 after it was downgraded to Fair Value from Buy at CRT Capital.

    Chico’s FAS (CHS) has dropped 1.5% to $16.82 after it was cut to Market Perform from Outperform at Wells Fargo.

Top Airline Stocks To Invest In 2014: Baltia Air Lines Inc (BLTA)

Baltia Air Lines, Inc. (Baltia) focuses on providing scheduled air transportation from the United States to Russia and former Soviet Union countries. As of December 31, 2010, the Company�� principal activities included raising capital, obtaining route authority and approval from the Department of Transportation (DOT) and the Federal Aviation Administration (FAA), training crews, and conducting market research to develop the Company's marketing strategy. Baltia operate as a Part 121 carrier, a heavy jet operator airline in the United States. As of December 31, 2010, Baltia conducted the FAA Air Carrier Certification process under Part 121. Baltia has identified the market segments in the United States and Russia market, which include Business Travelers, General Tourism, Ethnic Travelers, Special Interest Groups, Professional Exchanges, and Government and Diplomatic Travel.

Baltia has two registered trademarks, BALTIA and VOYAGER CLASS, and five trademarks are subject to registration. Baltia focuses on providing customer service and reservations centers in New York and in St. Petersburg, to list Baltia's schedules and tariffs in the Official Airline Guide, and provide worldwide access to reservations on Baltia's flights through a major Computer Reservations and Ticketing System (CRS). With the Boeing 747 true wide-body aircraft Baltia focuses on providing cargo service from JFK to St. Petersburg, offering containers, pallets, and block space arrangements. Baltia has passenger service and ground service arrangements at JFK and at Pulkovo II Airport in St. Petersburg.

The Company competes with Finnair, Lufthansa, SAS, KLM, British Airways, Air France, Austrian Airlines and Swissair.

Top Airline Stocks To Invest In 2014: Southwest Airlines Co (LUV)

Southwest Airlines Co., incorporated on March 9, 1967, operates Southwest Airlines, a passenger airline, which provides scheduled air transportation in the United States. As of December 31, 2011, the Company was serving 72 cities in 37 states throughout the United States. During the year ended December 31, 2011, the Company added addition services in two new states and three new cities: Charleston, South Carolina; Greenville-Spartanburg, South Carolina; and Newark, New Jersey. Southwest provides point-to-point. On May 2, 2011, the Company acquired AirTran Holdings, Inc. (AirTran).

AirTran�� route system provides hub-and-spoke, rather than point-to-point, service, with approximately half of AirTran�� flights originating or terminating at its hub in Atlanta, Georgia. AirTran also serves a range of markets with non-stop service from bases of operation in Baltimore, Maryland; Milwaukee, Wisconsin; and Orlando, Florida. As of December 31, 2011, AirTran was serving 68 United States and near-international destinations, including San Juan, Puerto Rico; Cancun, Mexico; Montego Bay, Jamaica; Nassau, The Bahamas; Oranjestad, Aruba; Punta Cana, Dominican Republic, and Bermuda. As of January 31, 2012, AirTran served 65 destinations. During 2011, approximately 71% of Southwest�� customers flew non-stop, and Southwest�� average aircraft trip stage length was 664 miles with an average duration of approximately 1.8 hours.

As of December 31, 2011, Southwest offered 25 weekday roundtrips from Dallas Love Field to Houston Hobby, 13 weekday roundtrips from Phoenix to Las Vegas, 13 weekday roundtrips from Burbank to Oakland, and 12 weekday roundtrips from Los Angeles International to Oakland. Southwest offers connecting service opportunities from over 60 Southwest cities to different Volaris airports in Mexico including Aguascalientes, Guadalajara, Mexico City (MEX), Mexico City-Toluca (TLC), Morelia, and Zacatecas. The Company�� International Connect portal conducts two separate transac! tions: one with Southwest�� reservation system and one with Volaris�� reservation system.

Southwest bundles fares into three categories: Wanna Get Away, Anytime, and Business Select. Wanna Get Away fares are lowest fares. Business Select fares are refundable and changeable, and funds may be applied toward future travel on Southwest. Business Select fares also include additional perks, such as priority boarding, a frequent flyer point multiplier, priority security and ticket counter access in select airports, and one complimentary adult beverage coupon for the day of travel. The Company�� Internet Website, southwest.com, is the avenue for Southwest Customers to purchase tickets online. During 2011, southwest.com accounted for approximately 78% of all Southwest bookings. During 2011, approximately 84% of Southwest�� Passenger revenues came through its Website, including revenues from SWABIZ, the Company�� business travel reservation Web page.

Advisors' Opinion:
  • [By Lisa Levin]

    Southwest Airlines Co (NYSE: LUV) shares reached a new 52-week high of $21.99 after the company reported a strong rise in its fourth-quarter profit.

  • [By WWW.DAILYFINANCE.COM]

    Matt Rourke/AP DALLAS -- US Airways began studying a potential merger with American Airlines several months before American filed for bankruptcy protection in late 2011, according to papers filed Monday by the two companies. The documents give a blow-by-blow account of how the merger was negotiated, including the thorny issues of how to share ownership of the merged company and who would run it. The companies also revived a proposed $20 million severance deal for Tom Horton, the CEO of American parent AMR Corp. A federal judge had declined to approve the payout, finding that it violated a 2005 bankruptcy law, but he had left open the possibility that a payment could be reconsidered later. US Airways Group Inc. (LCC), whose CEO, Doug Parker, will run the combined company, played up the importance of Monday's filings with the bankruptcy court in New York and the U.S. Securities and Exchange Commission. "With these materials filed, we are one step closer to completing the merger, which we expect to occur in the third quarter of this year," US Airways officials said a memo to employees. The bankruptcy court has already signaled approval for the merger, which would create the world's largest airline. The deal faces only a few more hurdles, including approval from the U.S. Justice Department and US Airways shareholders. AMR will have 60 days to win support among creditors for its reorganization plan. Major creditors were closely involved in negotiations leading to the merger announcement in February, so it seems unlikely that they would derail the plan that will be considered by U.S. Bankruptcy Judge Sean Lane. It's less clear whether antitrust regulators in the Justice Department will impose major conditions on the deal. Regulators approved other big airline mergers -- Delta and Northwest, United and Continental, Southwest (LUV) and AirTran -- so industry analysts expect them to let this deal pass. The Justice Department, however, could require the American-

Top Airline Stocks To Invest In 2014: AMR Corp (AAMRQ)

AMR Corporation (AMR), incorporated in October 1982, operates in the airline industry. The Company�� principal subsidiary is American Airlines, Inc. (American). As of December 31, 2011, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR Eagle Holding Corporation (AMR Eagle), a wholly owned subsidiary of AMR, owns two regional airlines, which do business as American Eagle - American Eagle Airlines, Inc. and Executive Airlines, Inc. (collectively, the American Eagle carriers). American also contracts with an independently owned regional airline, which does business as AmericanConnection (the AmericanConnection carrier). As of December 31, 2011, AMR Eagle operated approximately 1,500 daily departures, offering scheduled passenger service to over 175 destinations in North America, Mexico and the Caribbean.

American, AMR Eagle and the AmericanConnection airline served more than 250 cities in approximately 50 countries with, on average, 3,400 daily flights and the combined network fleet numbered approximately 900 aircraft as of December 31, 2011. American Airlines is also a founding member of the oneworld alliance, which includes British Airways, Cathay Pacific, Finnair, LAN Airlines, Iberia, Qantas, JAL, Malev Hungarian, Mexicana, Royal Jordanian and S7 Airlines. Together, oneworld members serve 750 destinations in approximately 150 countries, with about 8,500 daily departures. American is also one of the scheduled air freight carriers in the world, providing a range of freight and mail services to shippers throughout its system onboard American�� passenger fleet.

To improve access to each other�� markets, American has established marketing relationships with other airlines and rail companies. As of December 31, 2011, American had marketing relationships with Air Berlin, Air Pacific, Air Tahiti Nui, Alaska Airlines, British Airways, Cape Air, Cathay Pacific, China Eastern Airl! ines, Dragonair, Deutsche Bahn German Rail, EL AL, Etihad Airways, EVA Air, Finnair, GOL, Gulf Air, Hawaiian Airlines, Iberia, Japan Airlines (JAL), Jet Airways, JetStar Airways, LAN (includes LAN Airlines, LAN Argentina, LAN Ecuador and LAN Peru), Niki Airlines, Qantas Airways, Royal Jordanian, S7 Airlines, and Vietnam Airlines.

American has established the AAdvantage frequent flyer program (AAdvantage). AAdvantage members earn mileage credits by flying on American, American Eagle and the AmericanConnection carrier or by using services of other participants in the AAdvantage program. Mileage credits can be redeemed for free, discounted or upgraded travel on American, American Eagle or other participating airlines, or for other awards. American sells mileage credits and related services to other participants in the AAdvantage program. There are over 1,000 program participants, including a credit card issuer, hotels, car rental companies, and other products and services companies in the AAdvantage program. As of December 31, 2011, AAdvantage had approximately 69 million total members.

The Company competes with Alaska Airlines (Alaska), Delta Air Lines (Delta), Frontier Airlines, JetBlue Airways (JetBlue), Hawaiian Airlines, Southwest Airlines (Southwest) and AirTran Airways (Air Tran), Spirit Airlines, United Airlines (United) and Continental Airlines (Continental), US Airways and Virgin America Airlines.

Advisors' Opinion:
  • [By Adam Levine-Weinberg]

    A competitive threat
    For the most part, Spirit has been successful by flying under the radar of the major carriers. It is still a very small carrier compared to the major airlines: AMR (NASDAQOTH: AAMRQ  ) , Delta Air Lines (NYSE: DAL  ) , Southwest Airlines (NYSE: LUV  ) , and United Continental (NYSE: UAL  ) . Moreover, it generally appeals to a different type of customer than those carriers: one who is extremely price-sensitive.

  • [By Ben Levisohn]

    AMR (AAMRQ) bounced back a bit this week. Its shares gained 15% after losing more than half its value last week. After the close today, the judge who will preside over the trial said he will hold a scheduling hearing next week. AMR wants it to start in November; the Justice Department in February 2014�September.

  • [By Ben Levisohn]

    Shares of United Continental have dropped 0.6% to $31.11 today at 11:33 a.m., while Delta has gained 1.2% to $26.63, US Airways has risen 1.8% to $23.07 and AMR Corp. (AAMRQ) has risen 1.7% to $7.02.

Top Airline Stocks To Invest In 2014: Latam Airlines Group SA (LFL)

LAN Airlines S.A. (LAN), incorporated in 1983, is the international and domestic passenger airline in Latin America and the cargo operator in the region. As of February 9, 2012, LAN and its affiliates provided domestic and international passenger services in Chile, Peru, Ecuador, Argentina and Colombia and cargo operations through the use of belly space on its passenger flights and cargo freighter aircraft through its cargo airlines in Chile, Brazil, Colombia and Mexico. LAN and its affiliates offered passenger flights to 15 destinations in Chile, 59 destinations in other South American countries, 15 destinations in other Latin American countries and the Caribbean, five destinations in the United States, two destinations in Europe and four destinations in the South Pacific and, through various codeshare agreements, service to 25 additional destinations in North America, 16 additional destinations in Europe, 27 additional destinations in Latin America and the Caribbean (including Mexico), and two destinations in Asia, as of February 9, 2012. LAN and its affiliates provide cargo service to all of their passenger destinations and to 20 additional destinations served only by freighter aircraft. LAN also offers other services, such as ground handling, courier, logistics and maintenance. LAN and its affiliates operated a fleet, with 135 passenger aircraft and 14 cargo aircraft as of December 31, 2011. On February 15, 2011, Lan Pax Group S.A., subsidiary of Lan Airlines S.A. acquired 100% of Colombian society AEROASIS S.A.

LAN is primarily involved in the transportation of passengers and cargo. Its operations are carried out principally by Lan Airlines and also by a number of different subsidiaries. As of February 28, 2011, in the passenger business the Company operated through six main airlines: Lan Airlines, Transporte Aereo S.A. (which does business under the name Lan Express), Lan Peru S.A. (Lan Peru), Aerolane Lineas Aereas Nacionales del Ecuador S.A. (Lan Ecuador), Lan Argentina S.A. (Lan ! Argentina, previously Aero 2000 S.A.) and the Aerovias de Integracion Regional, Aires S.A. (Aires). As of February 28, 2011, the Company held a 99.9% interest in Lan Express through direct and indirect interests, a 70.0% interest in Lan Peru through direct and indirect interests, a 71.9% indirect interest in Lan Ecuador, a 99.0% indirect interest in Lan Argentina and a 94.99% indirect interest in Aires (a Colombian entity which was acquired on November 26, 2010). Its cargo operations are carried out by a number of companies, including Lan Airlines and Lan Cargo. As of February 28, 2011, the Company held a 69.2% interest in Aero Transportes Mas de Carga S.A. de C.V. (MasAir), through direct and indirect participations, a 73.3% interest in ABSA through direct and indirect participations, and a 90.0% interest in LANCO through direct and indirect participations. In the cargo business, the Company markets itself primarily under the Lan Cargo brand. In addition to its air transportation activities, the Company provides a series of ancillary services. It offers handling services, courier services and logistics, small package and express door-to-door services through Lan Airlines and various subsidiaries.

Passenger Operations

As of February 28, 2011, the Company operated passenger airlines in Chile, Peru, Ecuador, Argentina and Colombia. As of February 28, 2011, our passenger operations were performed through airlines in Chile, Peru, Ecuador, Argentina and Colombia where we operate both domestic and international services. As of February 28, 2011, the Company�� network consisted of 15 destinations in Chile, 14 destinations in Peru, four destinations in Ecuador, 14 destinations in Argentina, 24 destinations in Colombia, 14 destinations in other Latin American countries and the Caribbean, five destinations in the United States, one destination in Canada, three destinations in Europe and four destinations in the South Pacific. Within Latin America, it has routes to and from Argentina, B! olivia, B! razil, Chile, Colombia, Cuba, the Dominican Republic, Ecuador, Mexico, Peru, Uruguay and Venezuela. The Company also flies to a variety of international destinations outside Latin America, including Auckland, Fort Lauderdale, Frankfurt, Los Angeles, Madrid, Miami, Mount Pleasant (Falkland Islands), New York, Toronto, Papeete (Tahiti), Paris, San Francisco, and Sydney. In addition, as of February 28, 2011, through its various code-share agreements, the Company offered service to 25 additional destinations in North America, 16 additional destinations in Europe, 25 additional destinations in Latin America and the Caribbean (including Mexico), and two destinations in Asia. As of February 28, 2011, the Company operated scheduled international services from Chile, Peru, Ecuador and Argentina through Lan Airlines; Lan Express in Chile; Lan Peru in Peru; Lan Ecuador in Ecuador; Lan Argentina in Argentina and Aires in Colombia. Its international network combines the Company�� Chilean, Peruvian, Ecuadorian, Argentinean and Colombian affiliates. It provides long-haul services out of its four main hubs in Santiago, Lima, Guayaquil and Buenos Aires. It also provides regional services from Chile, Peru, Ecuador and Argentina.

Cargo Operations

The Company�� cargo business operates on the same network used by the passenger airlines business, which is supplemented by freighter-only operations. The Company carries cargo for a variety of customers, including other international air carriers, freight-forwarding companies, export oriented companies and individual consumers. As of February 28, 2011, the Company operated a fleet of 140 aircraft, comprised of 126 passenger aircraft and 14 cargo aircraft.

The Company competes with UPS, FedEx, Centurion, Transportes Aereos Mercantiles Panamericanos S.A., Polar Air, Cargolux, Lufthansa Cargo, Martinair and Air France-KLM.

Top Airline Stocks To Invest In 2014: Copa Holdings SA (CPA)

Copa Holdings, S.A. (Copa Holdings), incorporated on May 06, 1998, is a Latin American provider of airline passenger and cargo service through its two principal operating subsidiaries, Copa Airlines and Copa Colombia. Copa Airlines operates from its position in the Republic of Panama, and Copa Colombia provides service within Colombia and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala and Costa Rica, complemented with service within Colombia. As of December 31, 2012, the Company operated a fleet of 83 aircraft with an average age of 5.13 years; consisting of 57 modern Boeing 737-Next Generation aircraft and 26 Embraer 190 aircraft. . As of December 31, 2012, the Company offers approximately 334 daily scheduled flights among 64 destinations in 29 countries in North, Central and South America and the Caribbean, mainly from its Panama City Hub.

Copa provides passengers with access to flights to more than 150 other destinations through codeshare arrangements with UAL pursuant to which each airline places its name and flight designation code on the other�� flights. As of December 31, 2012, Copa had firm orders, including purchase and lease commitments, for 35 additional Boeing 737-Next Generation aircraft. Copa also has options for an additional 14 Boeing 737-Next Generation aircraft.

The Company competes with Avianca-Taca, American Airlines, Delta Air Lines, American Airlines and LAN Group.

Advisors' Opinion:
  • [By Will Ashworth]

    I don�� know what�� going to happen in six months, let alone 20 years. However, I do know that OLED plays in a very exciting space, and Discovery Capital still seems to agree. Financially, OLED stock is solid, and if things go the company’s way in the coming years, it should get big in a hurry.

    Best Stocks #3 (Midcap): Copa Holdings (CPA)

    I�� a big believer in Latin America. While it has its troubles like every other emerging market, I continue to view its growing middle class with envy. While our middle class is being hallowed out, Latin America�� is growing exponentially. The U.S. was never more secure economically than when its middle class was growing, so history has demonstrated what this can do for a country.

  • [By Arie Goren]

    After running this screen on May 21, 2013, before the markets' open, I discovered the following eight stocks: Sunoco Logistics Partners LP (SXL), Leggett & Platt Inc (LEG), Copa Holdings SA (CPA), RPC Inc. (RES), Tupperware Brands Corp. (TUP), Herbalife Ltd. (HLF), John Wiley & Sons Inc. (JW.A) and C.H. Robinson Worldwide Inc. (CHRW).

  • [By Michael J. Carr]

    Copa Holdings (NYSE: CPA) is also undervalued with a PEG ratio of 0.53. Copa Holdings provides airline passenger and cargo services within Colombia and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala and Costa Rica.

  • [By Asit Sharma]

    The airline industry has a singular talent for draining the pockets of well-intentioned investors. Highly leveraged balance sheets and bankruptcies are the norm. Significant labor costs and unpredictable jet fuel prices wreak havoc on variable costs. Yet some airlines generate solid returns quarter after quarter. Alaska Air Group (NYSE: ALK  ) , Ryanair (NASDAQ: RYAAY  ) , Southwest Airlines (NYSE: LUV  ) , and Copa Holdings (NYSE: CPA  ) each manage to be consistently profitable. Let's examine a few themes they share in common, and zero in on their individual strategic ideas.

Wednesday, January 22, 2014

U.S. mayors: Economy's gains will spread widely

The U.S. economic expansion will be much more broadly shared among the nation's cities and metro areas this year than it was in 2013, the U.S. Conference of Mayors says in a new report.

All but seven of the nation's 363 metropolitan areas will see their economies grow this year, compared with 97 areas whose economies contracted in 2013, according to the report, which was done by IHS Global Insight. It was released Wednesday at the mayors' semi-annual conference in Washington.

IHS forecasts 340 metropolitan areas will see their economies grow at least 1% -- up from 183 last year. Of those, 69 metro areas will grow 3% or faster.

``We're finally on an upward trajectory with good job growth,'' said Jim Diffley, a senior director at IHS and lead author of the report. ``The recovery has started to affect substantially everywhere.''

Naples, Fla, will be the fastest-growing metro area in the country, with an economy expanding by 6.3%, the report says. Naples will also add jobs faster than any other metro, the report predicts. Among larger cities, top performers include Raleigh, N.C., expected to grow by 4.2%; Atlanta, 3.7% and Austin, at 3.6%.

The forecast calls for turnarounds in cities hit hard by the decline of manufacturing or the housing bust.

Youngstown, Ohio and Buffalo, N.Y. will return to growth this year. and boost their economies by 1.5% in Buffalo and 1.6% in Youngstown, IHS predicted.

"The key thing in the northeast was the stabilization of housing," Diffley said. ``When prices normalized and people weren't underwater any more, small but positive job growth has been able to stimulate spending.''

College towns will thrive and mega-cities not so much, the report predicts. New York, Chicago and Los Angeles will all grow more slowly than the national average. But Austin, Charlottesville, Va; Lawrence, Kan., and other college towns will outpace the nation.

The slow growth in megacities this year reflects the fact that many of them recovered all the l! ocal jobs lost in the recession before 2013, Diffley said.

The report says the U.S. economy will grow about 2.7% for the year.

The biggest turnaround will come in Shreveport, Louisiana, which the mayors' report says will grow by 1.6% after shrinking by 5.2% last year.

Last summer, the mayors' economic report said more than half of U.S. metros wouldn't regain all the jobs lost in the 2008 recession until 2015 or later.

The difference this time is that IHS and the mayors now have more confidence because of the calming of economic tensions in Europe and budget compromise in Washington, Diffley said.

"Two thirds of metros have still not gotten back to 2007 or 2008 peak levels of employment, and half of those won't get there for another three years,'' he said. "Financial crises do not produce normal recessions in the U.S."

Tuesday, January 21, 2014

This Index is Too Hot, This Index is Too Cold as Stocks End Mixed

There was something a bit off key about the stock market’s performance today, as the S&P 500 rose and the Dow Jones Industrial Average as Coca-Cola’s (KO) rise was outweighed by Goldman Sachs’ (GS) drop.

Bloomberg News

The S&P 500 gained 0.3% to 1,843.80 today as Boston Scientific (BSX), Dow Chemical (DOW) and Biogen Idec (BIIB) rose. The Dow Jones Industrial Average slid 0.3% to 16,414.44.

With no economic data to hang our hats on, we’ll just have to chalk up the mixed message to the difference in index composition and the vagaries of individual stock movements. While Coca-Cola gained 1.6% to $39.92 and Biogen jumped 4.4% to $310.50 today with nary a catalysts in sight, Goldman dropped 1.8% to $173.20 as its post-earnings weakness continued, Dow Chemical rose 6.6% to $45.93 on reports that Daniel Loeb’s Third Point has taken a stake in the company and Boston Scientific advanced 3.5% to $13.98 after it was upgraded by Piper Jaffray.

Earnings are still front and center, and so far they’ve been mediocre. Revenue, however, has been another story. Merrill Lynch’s Savita Subramanian and team explain:

Overall, 44% of companies have beaten on EPS, 63% have beaten on sales, and 37% haven beaten on both. This compares to beats of 45%, 42%, and 23%, on EPS, sales and both at this same time last quarter. The proportion of companies beating on both metrics and on EPS alone ticked down from last week, but the sales surprise ratio was unchanged. If it holds, this would mark the best quarter for sales surprises since 1Q12, suggesting that sales forecasts may finally be bottoming after persistent downward revision trends.

Still, Morgan Stanley’s Adam Parker and team are feeling pretty confident that investors will pay more for those earnings:

If managements remain constrained in capital spending, hiring, and inventory, we can continue to feel confident that an earnings collapse is not imminent. A 20x market multiple might seem like fantasy land, but it isn't impossible if growth modestly improves, the Fed convinces the market that it is nowhere near moving the front end, and management teams remain conservative with spending. For now, we see the risk-reward as positive for the market, even with only modestly further multiple expansion. We admit that we might be too wimpy. Maybe we should buy a lottery ticket and enjoy that private 30 seconds of dreaming about winning the mega-millions – or take a nap and dream about surprisingly high multiple expansion.

Deutsche Bank’s David Bianco and team consider what would have to happen for P/Es to head higher:

Earning season should solidify $120 as 2014E S&P EPS, putting the S&P at 15.4x forward EPS. We’re confident in 8-10% EPS growth in 2014, so instead we see the main uncertainty as the PE. We have long argued that dividends are a tangible connection between PEs and interest rates. If payout ratios rise (as we expect) and long-term real rates climb, but plateau below history’s average (still uncertain), it justifies a higher S&P PE.

That’s a lot of ifs, but stranger things have happened.

Monday, January 20, 2014

A Key Android Leader Leaves for the รข€œApple of Chinaรข€

One of the under-appreciated reasons great technology companies fall is that once they hit a certain size, talented employees who have risen through the company's ranks begin leaving for younger, more dynamic companies with longer runways for growth. 

While Google (Nasdaq: GOOG) still ranks atop many lists for best employers, its size-and the inherent bureaucracy that comes along with it-is a major challenge to keeping talent. The most recent illustration of this is that Hugo Barra is leaving the company to join Chinese smartphone upstart Xiaomi. His exit comes just six months after Android chief Andy Rubin left the company. 

While there might have been unique personnel issues behind Barra's departure (reports cited a recent break-up with an employee now dating Google co-founder Sergey Brin), his departure to a Chinese start-up is interesting on its own. Yet, it becomes even more fascinating when you consider Xiaomi heavily forks Android, ripping out key Google services like its app store. 

Xiaomi is definitely a fascinating company, data from smartphone research companies showed it outselling Apple (Nasdaq: AAPL) last quarter. To hear more about the troubles of big tech companies retaining talent and why Barra might be interested in moving on to a company many call the "Apple of China," watch the video below. 

The tech world has been thrown into chaos as the biggest titans invade one another's turf. At stake is the future of a trillion-dollar revolution: mobile. To find out which of these giants is set to dominate the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate and give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!


Sunday, January 19, 2014

Top 10 Heal Care Stocks To Buy Right Now

Independent energy firm, PetroQuest Energy Inc. (PQ), declared that it has closed the offering of 10.0% senior notes worth $200.0 million, maturing in 2017. The notes were offered to select investors through private placement.

PetroQuest Energy had issued the notes at 100% of their face value plus accrued interest since Mar 1, 2013. The company has utilized the net proceeds from this offering to fund its recently concluded acquisition of some oil and gas producing properties, which are based in the Gulf of Mexico's shallow water area. The acquisition price of the assets was roughly $192.0 million.

PetroQuest Energy�� first-quarter 2013 earnings per share came in at 4 cents, surpassing the Zacks Consensus Estimate of 2 cents by 100.0%. The better-than-expected result was mainly due to the improvement in the total daily production along with significantly lower depreciation, depletion and amortization expenses.

Lafayette, LA-based PetroQuest Energy engages in acquiring, producing, exploring and developing natural gas and oil reserves, which are located in the Arkoma Basin, East Texas, South Louisiana and the Gulf of Mexico�� shallow water area.

Top 10 Heal Care Stocks To Buy Right Now: San Marco Resources Inc(SMN.V)

San Marco Resources Inc., an exploration mining company, engages in the acquisition, exploration, and development of precious metal properties in Canada and Mexico. It explores for copper, silver, gold, and base metals. The company holds interest in the Alwin Copper project comprising 4 mineral claims and 3 crown granted mineral claims with an area of approximately 576 hectares, and a mining lease in British Columbia. It also has interests in projects located in Mexico, including the La Buena project comprising approximately 8,500 hectares in northern Zacatecas; the Tecomate project covering approximately 12,290 hectares in Durango State, and the Los Carlos project totaling 280 hectares in Sonora State. San Marco Resources was incorporated in 2005 and is headquartered in Vancouver, Canada.

Top 10 Heal Care Stocks To Buy Right Now: Lihua International Inc.(LIWA)

Lihua International, Inc., through its subsidiaries, produces copper replacement products in the People?s Republic of China. It develops, designs, manufactures, markets, and distributes refined copper products, including copper anode, copper rod, pure superfine copper wire, and copper-clad aluminum superfine wire. The company offers its products in various diameters ranging from 0.03 mm to 0.18 mm. Its copper rod based wire products comprise cable products used for telephone drop wire and conductors; electric utilities; transmission lines, grid wire, fence, and structured grounds; industrial drop wire, magnet wire, battery cables, and automotive wiring harnesses; and radio frequency shielding, as well as magnet wire products used in electronic motors, transformers, water pumps, automobile meters, energy, industrial, commercial, and residential industries. It produces and distributes copper superfine wire in various forms, including fine wire to smaller wire manufacturers for further processing; magnet wire that is used for electrical conductivity in a range of motorized appliances; and tin plated wire for the transmission of audio and visual signals. Lihua International manufactures and sells copper anode to copper entities, which produce and sell copper cathode to copper products manufacturers. The company sells its products directly to manufacturers or through distributors in the wire and cable industries, as well as to manufacturers in the consumer electronics, white goods, automotive, utility, telecommunications, and specialty cable industries. The company is headquartered in Danyang, the People?s Republic of China.

Top Gold Companies To Invest In Right Now: NeurogesX Inc.(NGSX)

NeurogesX, Inc., a biopharmaceutical company, engages in developing and commercializing pain management therapies. The company offers Qutenza for the management of neuropathic pain associated with postherpetic neuralgia, and for the treatment of peripheral neuropathic pain in non-diabetic adults. It also develops NGX-1998, which has completed Phase 2 clinical study, is a topical liquid formulation of high concentration capsaicin to treat neuropathic pain conditions; and acetaminophen prodrugs that is in preclinical stage for use in acute pain, including traumatic pain, post-surgical pain, and fever. The company was formerly known as Advanced Analgesics, Inc. and changed its name to NeurogesX, Inc. in September 2000. NeurogesX, Inc. was founded in 1998 and is headquartered in San Mateo, California.

Advisors' Opinion:
  • [By CRWE]

    Today, NGSX remains (0.00%) +0.000 at $.0054 thus far (ref. google finance Delayed: 11:59AM EDT July 18, 2013).

    Acorda Therapeutics, Inc. previously reported it has acquired two neuropathic pain management assets from NeurogesX, Inc. (OTCBB: NGSX). Qutenzaๅบ is approved by the U.S. Food and Drug Administration (FDA) for the management of neuropathic pain associated with postherpetic neuralgia. The Company also acquired NP-1998, a Phase 3 ready, prescription strength capsaicin topical solution, being assessed for the treatment of neuropathic pain. NP-1998 was previously referred to as NGX-1998.

Top 10 Heal Care Stocks To Buy Right Now: Panasonic Corporation(PC)

Panasonic Corporation develops, manufactures, and sells electronic products worldwide. The company offers video and audio equipment, and information and communications equipment; imaging equipment, such as flat-panel TVs and LCDs; digital AVC network equipment, including blu-ray disc recorders, digital cameras, and digital camcorders; business-use audiovisual (AV) equipment; notebook PCs; printers; security-related products comprising network cameras and POS system solutions; mobile phones; motors; car navigation systems, cameras, and digital terrestrial tuners. It also provides home appliances consisting of refrigerators, room air conditioners, washing machines and clothes dryers, and vacuum cleaners; and lighting and environmental systems, as well as components and devices for use in various products ranging from digital AV equipment, and information and communication devices to home appliances and industrial equipment; and offers electronic-parts-mounting machines, indu strial robots, and industrial equipment. In addition, the company provides solar photovoltaic systems and rechargeable batteries; electrical supplies, electric products, and building materials and equipment; personal care products, such as massage sofa, men?s shavers, hair dryers, and vibration toothbrushes; EV relays, and back and corner sensors; living station modular kitchen systems; home appliance- and communications-use relays and printed circuit board materials, and factory-automation -related products; and solar power generation systems and all-electric home design fixtures. It serves consumer, industrial and business corporations, governments, and other institutions, such as electric and electronic equipment manufacturers, automotive manufacturers, and various machinery makers. The company was formerly known as Matsushita Electric Industrial Co., Ltd. and changed its name to Panasonic Corporation in October 2008. Panasonic Corporation is founded in 1918 and is based in Kadoma-shi, Japan.

Top 10 Heal Care Stocks To Buy Right Now: Assured Guaranty Ltd(AGO)

Assured Guaranty Ltd., through its subsidiaries, provides credit protection products to public finance, infrastructure, and structured finance markets in the United States and internationally. The company offers insurance, reinsurance, and credit derivative products that protect holders of debt instruments and other monetary obligations from defaults in scheduled payments, including scheduled interest and principal payments. It provides policies issued directly to the holders of insured obligations at time of issuance and those issued in the secondary market; and assumed reinsurance contracts written to third parties. The company insures various types of securities, including taxable and tax-exempt obligations issued by the United States or municipal governmental authorities, utility districts, or facilities; notes or bonds issued to finance international infrastructure projects; and asset-backed securities issued by special purpose entities. Assured Guaranty Ltd. markets its credit protection products directly to issuers and underwriters of public finance, infrastructure, and structured finance securities, as well as to investors in such debt obligations. The company was founded in 2003 and is based in Hamilton, Bermuda.

Advisors' Opinion:
  • [By Selena Maranjian]

    Diamond Hill reduced its stake in lots of companies, including Assured Guaranty (NYSE: AGO  ) . The company offers a 2% dividend yield, which reflects a recent 11% increase, but it's been struggling lately. Its CEO recently said at a conference that the company is working on new business production but is feeling "pressured in the States." On the plus side, "We actually expect 2013 to be a reasonably good year in the international markets." Assured also won a legal case earlier this year and along with it many millions.

  • [By Jake L'Ecuyer]

    Assured Guaranty (NYSE: AGO) was also up, gaining 6.63 percent to $23.16 on Q3 results.

    Equities Trading DOWN
    Shares of Rackspace Hosting (NYSE: RAX) were down 13.47 percent to $42.67 after the company reported a 40 percent drop in its third-quarter net income.

Top 10 Heal Care Stocks To Buy Right Now: Blackrock Health Sciences Trust (BME)

BlackRock Health Sciences Trust is a close ended equity mutual fund launched by BlackRock, Inc. The fund is managed by BlackRock Advisors, LLC. It invests in the public equity markets across the globe. The fund invests in the stocks of companies operating in the healthcare sector which includes businesses involved in researching, developing, producing, distributing or delivering medical, dental, optical, pharmaceutical or biotechnology products, supplies, equipment or services or that provide support services to these companies. It benchmarks the performance of its portfolio against the Russell 3000 Healthcare Index. BlackRock Health Sciences Trust was formed on March 31, 2005 and is domiciled in the United States.

Top 10 Heal Care Stocks To Buy Right Now: Gerdau SA (GGB)

Gerdau S.A. (Gerdau), incorporated on November 20, 1961, is a producer of long rolled steel. Gerdau operates steel mills that produce steel by direct iron-ore reduction (DRI) in blast furnaces and in electric arc furnaces (EAF). In Brazil, the Company operates four integrated steel mills, including its mill, Acominas mill, an integrated steel mill located in the state of Minas Gerais. It has a total of 60 steel producing units globally, including joint ventures and associate companies. The joint ventures include a unit located in the United States for the production of flat rolled steel and another unit in India. The associate companies are Aceros Corsa in Mexico; Corporacion Centroamericana del Acero in Guatemala, and Industrias Nacionales (INCA) in the Dominican Republic. Through its subsidiaries and affiliates, the Company also engages in other activities related to the production and sale of steel products, including reforestation, electric power generation projects; coking coal, iron ore and pig iron production, as well as fab shops and downstream operations. On August 12, 2010, Gerdau acquired the remaining 49.1% interest in the Cleary Holdings Corp. On October 21, 2010, Gerdau, through its wholly owned subsidiary Gerdau Ameristeel acquired TAMCO Steel.

Gerdau offers a range of steel products, which are manufactured according to a variety of customer specifications. Its product mix includes crude steel (slabs, blooms and billets) sold to rolling mills, finished products for the construction industry, such as rods and structural bars, finished products for industry, such as commercial rolled steel bars and machine wire and products for farming and agriculture, such as poles, smooth wire and barbed wire. The Company also produces specialty steel products utilizing technology and normally with a certain degree of customization for the manufacture of tools and machinery, chains, locks and springs, for the automotive and mechanical industries. As of December 31, 2010, the Company operat! ed 19 steel production units in the United States and Canada through its principal entity, Gerdau Ameristeel Corporation. Gerdau operates in four business segments: Brazil (Brazil Business Operation), includes Brazil�� operations, except specialty steel; North America (North America Business Operation), includes all North American operations, except Mexico and specialty steel; Latin America (Latin America Business Operation), includes all Latin American operations, except for Brazil, and Specialty Steel (Specialty Steel Business Operation), includes the specialty steel operations in Brazil, Spain and the United States.

Crude Steel (Billets, Blooms and Slabs)

Crude steel products include billets, blooms and slabs. Billets are bars from square sections of long steel that serve as inputs for the production of wire rod, rebars and merchant bars. They are the main product of the Acominas mill. Blooms are used to manufacture products, such as springs, forged parts, heavy structural shapes and seamless tubes. Slabs are used in the steel industry for the rolling of a range of flat rolled products. Slabs are mainly used to produce hot and cold rolled coils, heavy slabs and profiles. Crude steel products are produced using either the continuous casting or conventional process.

Common Long Rolled Products

Common long rolled products represent a major portion of the Company�� production. The Company�� main long rolled products include rebars, merchant bars and profiles, which are used mainly by the construction and manufacturing industries.

Drawn Products

Drawn products include barbed and barbless fence wire, galvanized wire, fences, concrete reinforcing wire mesh, nails and clamps. These products are not exported and are sold to the manufacturing, construction and agricultural industries.

Specialty Steel Products

Gerdau produces specialty and stainless steel used in tools and machinery, chains, fasteners! , railroa! d spikes and special coil steel at its Acos Villares and Piratini units in Brazil, at Corporacion Sidenor units in Spain and at the MacSteel units in the United States. In the United States, Gerdau Ameristeel produces special sections, such as grader blades, smelter bars, light rails, super light I-beams, elevator guide rails and other products that are made on demand for the Company�� clients, which are mainly manufacturers. It is a joint venture with the Kalyani Group in India, in which Gerdau has a 73.2% interest in the joint venture.

Flat Products

Gerdau�� Acominas mill produces slabs, which are rolled into flat products, such as hot and cold steel coils, heavy plates and profiles. In addition, the Company�� distribution subsidiary, Comercial Gerdau, resells flat steel products manufactured by other Brazilian steel producers. Gerdau Ameristeel also supplies flat steel to its customers through its joint venture Gallatin located in Kentucky. Gallatin is a joint venture with ArcelorMittal, Canada, a flat steel producer, and has nominal installed capacity of 1.4 million tons of flat steel per year.

The Company competes with Commercial Metals Company, Nucor Corporation, Steel Dynamics Inc., ArcelorMittal Inc., ArcelorMittal Brasil, Usiminas Group and CSN.

Advisors' Opinion:
  • [By Jeff Reeves]

    Gerdau (GGB) is one of the best ways to play this trend if you believe in a commodities shift. The Brazilian steel company trades for a forward P/E of about 5, and a price/sales of just a bit more than 0.7. That�� an incredible valuation.

Top 10 Heal Care Stocks To Buy Right Now: Hardy Underwriting Group(HDU.L)

Hardy Underwriting Bermuda Limited, through its subsidiaries, engages in underwriting insurance and reinsurance products worldwide. It underwrites aviation, marine, and a range of non-marine risks on reinsurance and direct basis. The company underwrites airlines, space, and general aviation risks; marine risks specializing in fishing vessels, harbor craft, and loss of hire; and cargo and specie risks covering the transportation and storage of various products and commodities. It also insures jewellers block and fine art, as well as writes for small motor account specializing in classic cars and other niche areas. In addition, the company underwrites the reinsurance of property risks on a proportional and non-proportional basis; and non-marine property risks. Further, it underwrites a range of accounts comprising financial institutions, terrorism, political risks, conveyancing, and accident and health, as well as traditional medical products, kidnap and ransom, and PA catas trophe treaty. The company was founded in 1975 and is based in Hamilton, Bermuda.

Top 10 Heal Care Stocks To Buy Right Now: Renold(RNO.L)

Renold plc, together with its subsidiaries, engages in the manufacture and sale of industrial chains and torque transmission products in the United Kingdom, North America, and internationally. Its products include transmission and conveyor chains; leaf chain for materials handling applications; Smartlink; industrial gearboxes and gears; industrial, marine, power generation, military navy, and mass transit couplings; spindles; Sprag Clutch freewheels; Sprag Cage assemblies; and trapped roller freewheels that are used in overrunning, backstopping, and indexing, as well as supplies material handling equipments. The company provides its products for heavy duty, high precision, indoor or outdoor, clean or contaminated, and temperature environmental applications; and conveying applications, including theme park rides, water treatment plants, cement mills, agricultural machinery, mining, and sugar production. Renold plc was founded in 1864 and is based in Manchester, the United K ingdom.

Top 10 Heal Care Stocks To Buy Right Now: Yangarra Resources Ltd (YGR.V)

Yangarra Resources Ltd., a junior oil and gas company, engages in the exploration, development, and production of resource properties in Western Canada. It has interests in oil and gas properties located in Central Alberta, Medicine Hat, Jaslan, and Viking areas in Alberta. The company also owns approximately 107,536 gross acres of undeveloped land. Yangarra Resources Ltd. is headquartered in Calgary, Canada.

Saturday, January 18, 2014

Top Blue Chip Companies To Invest In Right Now

Stocks have turned down to start the new week, and the Dow Jones Industrial Average (DJINDICES: ^DJI  ) has sunk into the red on this Monday. More than half of the blue chip index's members are falling so far, helping the Dow to lose 50 points, or around 0.4%, as of 2:15 p.m. EDT. News from the Federal Reserve's stimulus program has prompted some investors to back off of the recent run-up on the markets-here's what you need to know.

A slowdown ahead for the Fed?
On Friday, The�Wall Street Journal reported the Fed's plan to slowly decrease�its current $85 billion per month bond-buying measure, weaning the markets off of stimulus gradually while keeping an eye on employment and inflation. Investors had to know the stimulus program would end eventually, although considering how well stocks have performed on the back of easy money, any disappointment from Wall Street over a potential end to quantitative easing comes as little surprise. The Fed hasn't released any definitive start date for winding down its latest QE measure yet, but with unemployment recently falling to 7.5%, the central bank seems more confident in the economy's footing.

Top Blue Chip Companies To Invest In Right Now: McDonald's Corporation(MCD)

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

Advisors' Opinion:
  • [By Erin Kennedy and Jason Moser]

    Fast-food colossus McDonald's (NYSE: MCD  ) reported third-quarter earnings this morning, and it proved to be a mixed bag. Investors bid the stock down at the open, but shares have mostly recovered since.

  • [By Sean Williams]

    You may not agree with me on this example, but take McDonald's (NYSE: MCD  ) for instance. McDonald's is arguably the stepping stone by which competing fast-food restaurants have modeled their brand around. But, according to estimates by Fast Food Nation that McDonald's employs 700,000 people in the U.S., and figures from McDonald's itself that it hires 1 million people annually in the U.S., this means the Golden Arches' turnover rate is around 143% per year! With generally low wages, inconsistent hours, and a staff with high turnover, perhaps investors should stop questioning McDonald's lack of innovation for its recently stagnant same-store sales results and start looking inward toward its employee engagement?

Top Blue Chip Companies To Invest In Right Now: Visa Inc.(V)

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

Advisors' Opinion:
  • [By Associated Press]

    Prom spending is expected to rise this spring to an average $1,139. That's among families who are planning to spend some money to attend the annual affair, according to a survey of 1,025 parents of prom age teens by payment processor Visa (NYSE: V  ) and research company Gfk. Not included in the average were 12 percent who said they wouldn't spend anything on the prom. A majority of parents with teenagers surveyed were still unsure how much they'd spend.

Top 10 Low Price Companies To Own In Right Now: Apple Inc.(AAPL)

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

Advisors' Opinion:
  • [By Paul Ausick]

    Apple Inc. (NASDAQ: AAPL) scored a modest victory on Tuesday in a trial related to price-fixing on e-books at its App Store. The same judge who has ruled against Apple on the price-fixing charges gave the company some relief from the penalties proposed by the U.S. Department of Justice.

  • [By Paul Ausick]

    The world�� largest wireless carrier, China Mobile Ltd. (NYSE: CHL), reportedly has�awarded initial contracts for the build-out of China�� first 4G wireless network. This is especially good news for Apple Inc. (NASDAQ: AAPL), which has been trying to reach an agreement with the Chinese carrier to offer the iPhone to China Mobile�� customers.

  • [By Victor Reklaitis]

    Today�� movers & shakers: Hewlett Packard (HPQ) �surged 9% for its best day since May. Infoblox Inc. (BLOX) , a data-center technology company, slid 29% following its weaker-than-expected outlook late Tuesday. Apple Inc. (AAPL) �gained for the third day, closing at its highest since Jan. 2. Read more in the Movers & Shakers column.

  • [By Evan Niu, CFA]

    To that end, PayPal is hoping that Apple (NASDAQ: AAPL  ) will play a part in bolstering its security. PayPal wants Apple's help in killing all security passwords.

Top Blue Chip Companies To Invest In Right Now: Philip Morris International Inc(PM)

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

Advisors' Opinion:
  • [By Dividend]

    Philip Morris International (PM) has a market capitalization of $135.05 billion. The company employs 87,100 people, generates revenue of $77.393 billion and has a net income of $9.154 billion. Philip Morris International�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $14.827 billion. The EBITDA margin is 19.16 percent (the operating margin is 17.89 percent and the net profit margin 11.83 percent).

  • [By Chuck Carnevale]

    But it was with the last couple of sentences of his blog post that I took the greatest exception. More precisely, I found that his example of Phillip Morris International (PM) to be misleading. However, not because of what Roger included, but rather because of what he left out. I will elaborate more right after the following excerpt where he closed out his blog post:

Top Blue Chip Companies To Invest In Right Now: Colgate-Palmolive Company(CL)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:

  • [By Dan Caplinger]

    Lately, Johnson & Johnson has presented two different faces to investors. On one hand, the company has faced the challenge of dealing with a weak consumer-products business, as multiple recalls and close regulatory oversight of its production facilities have exacerbated J&J's problems. With its more focused consumer-goods business, Colgate-Palmolive (NYSE: CL  ) has worked harder at taking advantage of international growth opportunities than many of its rivals, and Colgate's strong overseas sales, in comparison to J&J's international weakness, show the effectiveness of that strategy. In particular, Asia has been a focus point for Colgate, with revenue from the region having risen 9% year over year compared with less than 3% growth overall. Moreover, Latin America represents Colgate's biggest region for sales, with more than half again the revenue its U.S. segment produces.

  • [By Demitrios Kalogeropoulos]

    Colgate-Palmolive (NYSE: CL  )
    Colgate's shares are trading well below the $62 high they hit just last month. The consumer goods company is heavily levered to international sales, with more than 80% of its business coming from outside the U.S. and more than half coming from emerging markets.

  • [By Dividend Growth Investor]

    In a previous article, I outlined that it is getting more difficult to find quality dividend paying stocks to buy. Most of the usual suspects like Kimberly-Clark (KMB) or Colgate-Palmolive (CL) are very overvalued today, which prevents me from adding to my positions there. Other companies like Chevron (CVX) are attractively valued today, but unfortunately my portfolio is overweight in them. Currently I find the oil sector to be cheap and have some of the lowest P/E ratios in the market. However, I would hate to be concentrated in one sector which is exposed to the fluctuating prices in its commodity products.

  • [By Dan Caplinger]

    Investors have always been interested in stocks that pay dividends, but lately, low interest rates on bonds and other fixed-income investments have made solid dividend payers even more valuable. Among the most promising dividend stocks in the market is Colgate-Palmolive (NYSE: CL  ) , and one big reason is that it is one of the few exclusive companies to make the list of Dividend Aristocrats. In order to become a member of this elite group, a company must have raised its dividend payouts to shareholders every single year for at least a quarter-century. Only a few dozen stocks manage to make the cut, and those that do tend to stay there for a long time.

Thursday, January 16, 2014

Why Best Buy Killed Staples and Office Depot

Best Buy Co., Inc. (NYSE: BBY) wasn't the only stock hit by its admission that deep discounting failed to boost holiday sales. Investors dumped Best Buy shares heavily in response, and they drove down shares of Staples, Inc. (NASDAQ: SPLS) and Office Depot, Inc. (NYSE: ODP) as well. Neither has shown anything along the lines of Best Buy’s holiday disappointment, but investors are shooting them as well.

The heavy promotion and discounts that Best Buy employed to combat intense competition from other retailers of electronics, especially Amazon.com Inc. (NASDAQ: AMZN), probably forced Staples and Office Depot to knock prices lower on their own products.

Best Buy, Staples and Office Depot offer an assortment of electronics and electronics-related products, from computers, tablets and printers to things like bags for computers, USB hubs and other peripheral products. Sale signs were all over the three stores during the holiday season.

Best Buy and Staples also have been able to make heavy investments in their online businesses. But boosting online sales doesn't necessarily boost margins.

In Best Buy's case, online sales in November and December were 11.5 percent of the company's November and December sales, up from 9 percent a year earlier.  Office Depot is still consolidating its operations after merging with Office Max in 2013.

Amazon.com also competes with the same products and offered low prices and free delivery on higher-ticket items. Moreover, the online retail giant has been adding warehouses and fulfillment centers ever closer to its customers so it can make deliveries in 24 hours or so.

A number of investors appear to sense how the holiday season was going to shape up for Staples and Office Depot. Staples shares have fallen about 15 percent since Nov. 1. Office Depot shares are down nearly 17 percent.

Staples shares were down 74 cents, or nearly 5 percent, to $13.74 Thursday afternoon. Office Depot shares were off 9 cents, or 2.7 percent, to $4.75. Best Buy shares were down $10.79, or nearly 29 percent, to $28.72. Best Buy is down more than 37 percent in the same period. Amazon.com is up more than 10 percent. The Standard & Poor's 500 Index is up 5 percent.

Wednesday, January 15, 2014

Burger King Expands Delivery Program - Analyst Blog

Salt Lake City, Utah residents can now have the Whopper sandwich and hot crispy fries delivered to their chosen addresses as Burger King Worldwide Inc. (BKW) recently announced the expansion of its home delivery services to two participating restaurants in the city.

Last year, the company initiated this new sales initiative, BK Delivers, to counter sluggish same-store sales performance in a highly competitive environment. This initiative was intended to take Burger King beyond its outlets and deliver to its customers in their homes, schools and offices and further enhance the company's presence.

The service allows people to select from a wide range of popular items as well as recent introductions, with a minimum food order of $10. A well-defined loyalty program is also in place.

Initially rolled out at a few Washington, D.C. locations, this program has now been expanded into a number of markets like Boston, New York, Miami, Houston, Los Angeles, Chicago, San Francisco Bay Area, Las Vegas, Sacramento, greater Washington, D.C., Phoenix and Denver. The expansion trail confirms that the program is gaining considerable customer acceptance.

With the latest delivery restaurants in Salt Lake City, the total number of delivery units in the U.S. now stand at 75 while several more are in the offing. Basically, management intends to capitalize on Burger King's high repute by offering an off-premise service.

Of late, home delivery and catering programs have become a trend in the U.S. restaurant industry. While the delivery system is doing the trick for pizza chains like Domino's Pizza Inc. (DPZ), companies like Panera Bread Co. (PNRA) and Jack in the Box Inc.'s (JACK) Qdoba Mexican Grill chain are benefiting largely from catering initiatives.

We believe that the delivery system will prove to be a strong growth driver for Burger King in the years to come. Burger King currently retains a Zacks Rank #3 (Hold).



Monday, January 13, 2014

Medical Marijuana Inc (OTCMKTS:MJNA): A Look At Pot Stocks Offering Quick Bucks

Pot is hot! Colorado, which allowed the legal sales of marijuana for recreational use beginning Jan.1, is facing a severe shortage of cannabis only days after the legalization.

Initially, only licensed medical marijuana dispensaries in good standing (of which there are about 500) are eligible to apply for sales licenses. The state had approved 348 total licenses, including 136 for retail stores, 178 for cultivation facilities, 31 for product manufacturing facilities, and 3 for testing facilities.

Colorado is estimated to have generated in excess of $5 million in total marijuana sales. More than 100,000 people were believed to have bought the drug since legal sales to the general public began in Colorado, which became the first Government in the World to control and regulate marijuana, also known as Cannabis. Cannabis is a preparation of the Cannabis plant intended for use as a psychoactive drug and as medicine.

[Related -Medical Marijuana Inc (OTCMKTS:MJNA): A Look At Five Best Marijuana Stocks]

As we said above, pot is hot, but, the same can't be said about pot stocks as most of them have lost their initial gains. The reason is simple – investors don't want to hold marijuana stocks for long. As a result, purchasing stocks at a lower price and selling it higher is the currently best way to trade marijuana.

Here are a few stocks that showed extreme volatility in trading. Although, these stocks (due to their heavy volumes) also provides an opportunity to make some quick bucks given an investor times the trade correctly.

Medical Marijuana, Inc. (OTCMKTS:MJNA) is one of the most heavily traded marijuana stocks, which touched a volume of 82.7 million shares on Jan.2, the day after the legalization of cannabis sales. Since Jan.1, it gained as much as 65 percent to trade at 33 cents. But, the stock closed at 19 cents on Friday (37.3 million shares changed hands), a drop of 42 percent from its recent high.

[Related -Medical Marijuana, Inc. (MJNA): Top 6 Stocks Soar Up To 97% On Federal Breakthrough]

Cannabis Science Inc (OTCMKTS:CBIS): Colorado Springs, Colorado-based Cannabis Science closed Friday' session 21 percent lower at 12 cents at a volume of 85.7 million shares. However, the stock has surged 140 percent since Dec.31 and recorded one of its biggest volumes on Jan.9 at 152.6 million shares.

Medbox Inc (OTCMKTS:MDBX): Shares of Medbox touched a high of $93.50 on Jan.8 at a volume of 1.47 million. It ended Friday' session at $34.01, 21 percent drop from Thursday's price and 64 percent plunge from its recent highs.

Growlife Inc (OTCBB:PHOT): Carson, California-based Growlife is another stock that saw heavy trading volumes in the last three sessions. More than 118.7 million shares changed hands on Jan.10 following volumes of 191.5 million and 112.5 million on Jan.9 and 8, respectively. The stock touched a high of 47 cents on Thursday. It closed Friday's session at 22 cents, a drop of 15 percent.

MediSwipe Inc (OTCMKTS:MWIP): The company's shares are down 38 percent in the last year and is currently trading at 34 cents. Since Jan.1, the stock touched a high of 68 cents.

Hemp, Inc. (OTCMKTS:HEMP): The stock touched a high of 9 cents on Jan.9, its highest since February 2013 at a volume of 145.1 million shares. It ended Friday's session 31 percent lower at 4 cents at a volume of 116.7 million. The stock saw one of its heavily traded days on Jan.8 when 188.38 million shares changed hands.

Investors have to exercise caution while trading in marijuana stocks as most of them are penny stocks and extremely volatile in nature. Above all, it is a brand-new industry and is immature. As they are penny stocks, they aren't subject to the regulatory scrutiny or listing requirements similar to Nasdaq or New York Stock Exchange; so, one needs to have full conviction on their prospects before investing.