Why pSivida (PSDV) Stock Is Soaring in After-Hours Trading Today

NEW YORK (TheStreet) -- Shares of pSivida  (PSDV)  soared 10.26% to $4.73 in after-hours trading Friday after the FDA approved the company's eye implant Iluvien.

The FDA approved Iluvien to treat diabetic macular edema (DME), a swelling on the back of the retina that can cause blindness should the condition become severe enough. Iluvien is an injectable implant, and its use involves placing a small cylindrical tube filled with a drug on the back of the eye where DME usually forms.

pSivida announced the FDA approval entitles it to receive a milestone payment of $25 million from Alimera Sciences (ALIM) , to which pSivida licensed Iluvien in February 2005. pSivida is also entitled to 20% of net profits from U.S. sales of Iluvien, which the company said should debut in early 2015.

Must Read: Warren Buffett's 25 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Iluvien is already approved in 10 European countries, including the U.K., France and Germany. Alimera also surged 18.78% to $5.85 in after-hours trading. PSDV data by YCharts
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

U.S. Economy Gains Steam, Expands at Brisk Pace in 2Q

J Pat Carter/AP WASHINGTON -- The U.S. economy grew at its fastest pace in 2½ years in the second quarter with all sectors contributing to the jump in output in a bullish signal for the remainder of the year. The Commerce Department on Friday raised its estimate of gross domestic product to show the economy expanded at a 4.6 percent annual rate. That was in line with Wall Street's expectations. The best performance since the fourth quarter of 2011 reflected a faster pace of business spending and sturdier export growth than previously estimated. But consumer spending, which accounts for more than two-thirds of U.S. economic activity, was unrevised as stronger health care outlays were offset by weaknesses in recreation and durable goods spending. With domestic demand increasing at its fastest pace since 2010, the economic recovery appeared more durable after growth slumped in the first quarter because of an unusually cold winter. So far, economic data such as manufacturing, trade and housing suggest that much of the second-quarter momentum spilled over into the third quarter. Growth estimates for the July-September quarter range as high as a 3.6 percent pace. Second-quarter GDP was previously estimated to have advanced at a 4.2 percent rate. The economy contracted at a 2.1 percent pace in the first quarter. The dollar extended gains against a basket of currencies on the report. U.S. stock index futures were little changed. The strong growth pace and domestic demand growth help to explain the robust job gains during the quarter, as well as the sharp decline in the unemployment rate. When measured from the income side, the economy grew at a robust 5.2 percent pace, revised up from the previously reported 4.7 percent rate. Business spending on equipment was raised to an 11.2 percent pace from a 10.7 percent rate. Businesses also invested more in nonresidential structures, such as gas drilling, as well as in research and development. Businesses accumulated $84.8 billion worth of inventory in the second quarter, a bit more than the previously reported $83.9 billion. That saw restocking contributing 1.42 percentage points to GDP growth rather than 1.39 percentage points. Still, there is little sign of an inventory overhang, a positive signal for third-quarter GDP growth. Growth in consumer spending was unrevised at a 2.5 percent rate in the second quarter. Though trade was a drag for a second consecutive quarter, export growth was raised to an 11.1 percent pace, the fastest since the fourth quarter of 2010, from a 10.1 percent rate. Housing market-related spending was revised up as was government spending. Corporate profits rebounded a bit more strongly than previously reported from a decline in the first quarter that had been spurred by the expiration of a depreciation bonus.

SodaStream May Finally Have a Suitor or Two

Jonathan Leibson/PMC/Getty Images SodaStream (SODA) has been one of Wall Street's bigger disappointments over the past year, but shareholders may finally be catching a break. Sources were telling several different international publications last week that the company behind the namesake carbonated beverage maker is in talks to be acquired for at least $40 a share. The buyout would come as a welcome relief for investors who have seen the stock fall from its sudsy peak of $77.80 last summer to below $30 this summer. Inventory woes and cascading margins have slammed SodaStream, and investors know that soda is no good when the fizz is gone. Bottling Up Optimism Buyout chatter heated up last week when Israeli business publication The Marker reported that a British investor was in negotiations to acquire SodaStream in an $840 million deal that would swap common stock for $40 a share in cash. It seemed like just the latest in a long line of empty acquisitive talk, but then things began heating up in the U.K. media channels. The Independent reported that beer behemoths Diageo (DEO) and SABMiller (SBMRF) are considering an offer for SodaStream. The Times apparently has another source naming private equity firm KKR as an investor willing to shell out $46 a share for SodaStream. All of these conflicting rumors would seem to be turning this buyout symphony into a cacophony, and conspiracy theorists would argue that SodaStream itself could be behind this in an effort to smoke out a potential suitor. However, you don't often see three different international publications talking up SodaStream as a purchase. Pop a Cap Off We've been here before. It was originally Israel's Calcalist reporting last summer that PepsiCo (PEP) had the hots for SodaStream. Canned and bottled soda sales have been sluggish. Moody's Investors Service is reporting that carbonated soft drink sales declined 2.6 percent in the U.S. last year, with an even larger drop in diet sodas. Diversifying into SodaStream's growing global operations had some merit, especially as a way for PepsiCo to extend its brands into the faster-growing home-based carbonation market. It didn't happen. Calcalist came back five months ago, reporting that PepsiCo, Dr Pepper Snapple Group (DPS), or Starbucks (SBUX) could be taking a 10% to 16% stake in SodaStream. This followed just two months after Coca-Cola (KO) initiated a 10% stake in Keurig Green Mountain (GMCR), helping the single-serve java heavy with its upcoming Keurig Cold launch. That didn't happen either. Earlier this summer we had Bloomberg reporting that a private equity firm was looking to buy SodaStream at $40 a share, similar to the stories that would break in the U.K. and SodaStream's home turf of Israel last week. None of the stories have panned out, but someone seems to be aggressively trying to play Cupid given SodaStream's knack for being at the center of buyout chatter. It's easy to see why SodaStream would be receptive: Stateside sales have been slumping since late last year, and overall profitability has taken a hit. SodaStream is still gaining momentum in more established European markets, and perhaps that's why the latest round of potential acquirers is a global smorgasbord. If SodaStream isn't going to turn its U.S. operations around soon, it could be in the best interest of its investors if it does consider any serious proposals. However, after more than a year of empty chatter, the rumors are intensifying, but nothing is certain until SodaStream makes it official.

Look Out LeapFrog, Amazon's Got a New Kid-Friendly Tablet

Amazon's Fire HD Kid's Edition is a clear shot at LeapFrog's LeapPad tablet line. Credit: Amazon.com

Look out LeapFrog (NYSE: LF  ) , because Amazon.com  (NASDAQ: AMZN  ) has its eyes on one of your most lucrative revenue streams.

Amazon just unveiled its new Fire HD Kids Edition tablet, which will set parents back $149 for the 6-inch display version, or $189 for the 7-inch model. That's certainly not a bad price, but at first glance it seems LeapFrog might even have the advantage given the $100 price tag on its 5-inch LeapPad3, and the $130 cost of the 7-inch LeapPad Ultra XDi.

LeapFrog's LeapPad Ultra XDi Learning Tablet could face huge competition from Amazon. Credit: LeapFrog

That's also not to mention LeapFrog has gone to great lengths to cater both to kids and parents alike by developing easy-to-use parental controls, an educator-approved library of more than 1,000 apps, LeapPad's own drop-tested design, and a one-year "kid-proof warranty" that covers up to one replacement of the device -- as long as it was purchased from LeapFrog.com, anyway -- even in the case of accidental damage. .

But that still doesn't explain why Amazon described the Fire HD Kids Edition both as "a real tablet, not a toy," and "the first tablet built from the ground up for kids (and their parents)" -- something to which the folks over at LeapFrog will surely take offense considering the company unveiled the first LeapPad Explorer tablet way back in mid-2011.

Advantage: Fire HD Kids Edition
In this case, however, Amazon might have a point.

First, Amazon points out its device not only has a quad-core processor -- which both the latest LeapPads have as well -- but also Dolby Digital Audio and an HD display protected by Gorilla Glass. In short, Amazon knows kids are aware of the difference between a "toy" and a "real tablet," and this should appear much closer to the latter. 

In addition, Amazon literally one-ups LeapFrog by offering a two-year worry-free guarantee, saying "If they break it, we'll replace it. No questions asked." 

Amazon also incorporates its own slick parental controls and educational goals through Kindle FreeTime -- which, for the record, is technically downloadable on Amazon's other Kindle Fire Tablets as well. But the Fire HD Kids Edition also comes with a year of "FreeTime Unlimited," which Amazon describes as "a hand-curated subscription of over 5,000 kid-friendly books, movies, TV shows, educational apps, and games."

And Amazon isn't talking about little-known names here; FreeTime Unlimited includes apps, shows, and games from the likes of Disney, Nickelodeon, Sesame Street, and PBS -- all at no extra charge for the first year. After that, you can either revert to the regular FreeTime and buy apps individually, or renew the service at $4.99 per month for one child, $9.99 per month for up to four kids, or discounted rates for existing Prime Members of $2.99 and $6.99, respectively.

LeapPad is cheaper upfront, but ...
By contrast, while LeapPad users do have access to that 1,000-plus app library for their devices, the cost of those apps ranges from $2.50 to $10 each for simple games and eBooks. Worse yet, for many of the most popular titles from publishers like Disney, the cost of LeapPad's apps and games can run as high as $25 apiece. With this in mind, suddenly the slightly higher upfront cost for Amazon's tablets seems a whole lot more attractive.

And make no mistake: That's a bad thing for LeapFrog, which already made it painfully clear last month that weakness in its older tablet lineup helped fuel a 43% plunge in consolidated net sales last quarter. What's more, though LeapFrog management told investors it expected stubbornly high retail inventories to hold back the company's financial results in the current quarter, but predicted "solid net sales growth" in the subsequent quarters. For that, the company was counting primarily on sales of new products, including LeapTV, LeapBand, and -- you guessed it -- LeapPad 3, LeapPad Ultra XDi, and related software content.

As if LeapPad didn't already have enough competition from the vast number of affordable apps on traditional tablets, the new efforts from Amazon to take market share in the kid's segment could be the straw that breaks this frog's back.

Apple Watch revealed: The real winner is inside
Apple recently revealed the product of its secret-development "dream team" -- Apple Watch. The secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see where the real money is to be made, just click here!

Panera Bread: Healthier Food Menu Should Provide Future Growth

In this time of occupied lifestyles, where individuals are left with little time to spend time in kitchen, they started opting to spend time in restaurants. Inclination for restaurant is significantly higher among more youths with high disposable livelihoods yet next to no time to spare. The fast food restaurant industry anticipated to generate total revenue of $240 billion in 2014, with a 19% growth in next 5 years. The business is anticipated to achieve a volume of just about 249 billion transactions in 2014.

Despite the economic recession, US remained one of the world's prevailing countries in the worldwide quick service restaurant market. The US fast food industry is anticipated to grow by 4% through 2014. The business sector is governed by increasing youthful populace and growing working class with higher expenditure capacity. Various restaurants are now focusing of various changes to stay ahead of their competitors. Most common changes that we notice is menu, ordering system (online), healthy food, etc. Panera Bread (PNRA) is one such restaurant, which is focusing on its food menu for more health conscious customers by knocking off various artificial additives in the food menu.

Quarter Overview

The company recently reported its second quarter results and was quite good in terms of revenue growth. Consolidated revenue was up 7.1% year over year, to record $631.1 million as compared to $589 million for the same quarter last year. The net income was down by 4% year over year, to record $49.2 million as compared to $51 million in the same quarter last year. The net income was down despite the rise in the revenue, mainly due to decline in the operating margin. In the quarter, the company witnessed a decline in operating margin by 250 basis points year over year.

Operating margin was high as the company underwent various expenditures in infrastructure enhancement, technology, sales and marketing expenses. These expenses will leverage growth in future and influence the bottom line. Despite the decline in the operating margin, diluted EPS did records growth by 5% year over year, to $1.82 as compared to $1.74 in same quarter last year.

In the quarter, the company started 10 new company owned outlets and 9 new franchise outlets. The total count for Panera outlets now records 1818 bakery- cafes.

Menu for Health conscious customers

Albeit late, the restaurant division is by and by finding up with healthy dieting pattern. The bulk of the footsteps in restaurant are now leaning toward healthy recipes in restaurants. Natural nourishment, refreshments and food with low trans fats are progressively discovering their spot in restaurant menus.

Panera Bread is focusing on providing a healthy diet for health conscious customers. Panera has already knocked off high fructose corn syrup from various product categories such as dressings and sauces. The modified menu of Panera looks quite appealing and healthier for calorie conscious customer. The food menu is free from artificial trans fat with calories are posted on menu boards. Panera is also the first restaurant chain to invest in animal proteins raised without antibiotics on a large scale.

Furthermore, Panera has taken up a bold step to eliminate all artificial ingredients and preservatives from its food and bakery items. The new menu is expected to be implemented in all its outlets by end of 2016.

Following are the course of action for the healthy food menu.

All bakery items will be free from high fructose corn syrup. All artificial colors used in bakery icings to be replaced with natural alternatives and also provide better taste and exotic colors for presentation. All artificial preservatives will be removed from dressings, sauces, beverages syrups and deli meats. It plans to use traditional meat like artisan smoked ham. The natural meat option is being currently tried as a pilot run project at various outlets. These changes in the food menu may offset the margin as the cost of natural ingredients is expensive. Panera can always have an option of prince revision of menu to balance out the margin, but in a longer run Panera is certain to benefit with the revised healthy menu.

Outlook

Panera is being extravagant on it buy back policy and also investment in key areas to lay a strong foundation f

Carnival Corporation (CCL) Earnings Report: Smooth Sailing? CUK, RCL & NCLH

The Q3 2014 earnings report for cruise ship stock Carnival Corporation (NYSE: CCL), which also has a listing as Carnival plc (NYSE: CUK) and is a peer of Royal Caribbean Cruises Ltd (NYSE: RCL) and Norwegian Cruise Line Holdings Ltd (NASDAQ: NCLH), is scheduled to report earnings before the market opens on Tuesday (September 23rd). Aside from the Carnival Corporation earnings report, it should be said that Royal Caribbean Cruises Ltd reported Q2 2014 earnings on July 24th (profit rose fivefold on higher European demand) and Norwegian Cruise Line Holdings Ltd reported Q2 2014 earnings on July 29th (investments in new ships and fleet modernization helped earnings that beat expectations). However and the last time around when Carnival Corporation reported earnings, year over year comparisons may have been misleading because of an embarrassing February 2013 incident when a fire on the Carnival Triumph left the ship without power in the Gulf of Mexico and passengers stranded aboard the stalled ship for four days until it was pulled into port by several tugboats.

What Should You Watch Out for With the Carnival Corporation Earnings Report?

First, here is a quick recap of Carnival Corporation's recent earnings history along with EPS estimate trends from the Yahoo! Finance analyst estimates page:

Earnings HistoryAug 13Nov 13Feb 14May 14

EPS Est	1.30	0.00	-0.08	0.02
EPS Actual	1.38	0.04	0.00	0.10
Difference	0.08	0.04	0.08	0.08
Surprise %	6.20%	N/A	100.00%	400.00%

EPS TrendsCurrent Qtr.
Aug 14Next Qtr.
Nov 14Current Year
Nov 14Next Year
Nov 15

Current Estimate	1.44	0.20	1.74	2.37
7 Days Ago	1.44	0.20	1.75	2.37
30 Days Ago	1.44	0.20	1.75	2.36
60 Days Ago	1.44	0.20	1.74	2.36
90 Days Ago	1.51	0.18	1.72	2.36

 

Back in late June, Carnival Corporation reported second quarter revenues of $3.6 billion verses $3.5 billion for the prior year. Non-GAAP net income came in at $80 million, or $0.10 diluted EPS verses non-GAAP net income of $57 million, or $0.07 diluted EPS while GAAP net income, which included a net gain on vessel transactions of $15 million and net unrealized gains on fuel derivatives of $11 million, was $106 million, or $0.14 diluted EPS. For the second quarter of 2013, GAAP net income, which included a gain on a ship sale of $15 million and unrealized losses on fuel derivatives of $31 million, was $41 million for $0.05 diluted EPS. The President/CEO commented:

"We benefited from effective marketing initiatives, which combined with a gradually improving economic environment, led to revenue yield improvement for our continental European brands in the quarter compared to the prior year and is expected to continue through the remainder of the year. In addition, we achieved a six percent improvement in fuel consumption." 

And:

"Collectively our brands are gaining momentum in our efforts to drive higher ticket prices and we continue to expect sequential improvement in revenue yields, despite a more competitive environment in the Caribbean this summer. We remain focused on further understanding our guests and refining the exceptional customer experience we provide. We have also made significant strides in our efforts to identify opportunities for cross-brand operational efficiencies. This work is still in the early stages, but we are making progress and beginning to see encouraging signs. We believe we have reached a positive inflection point for our company as we return to earnings growth in 2014 and work hard to ensure that growth accelerates in the years to come."

After earnings, UBS analyst Robin Farley called the forecast a "surprise" for a quarter that would have plenty of European and Alaskan cruises to offset weakness in the Caribbean business (Note: About 35% of Carnival's passenger capacity was in the Caribbean in the year ended November). Industry analyst Stewart Chiron has also commented that Carnival Corporation and Royal Caribbean were pointing to Europe-based MSC Cruises that is offering 7-night cruises in the Caribbean for as low as $199.

On the news front and in early July, Jefferies said its latest pricing data at Carnival Corporation is weaker than in recent months and that it continues to see risks to 2015 consensus estimates. The firm reiterated an Underperform rating on the stock with a $33 price target, preferring Buy-rated Royal Caribbean. Jefferies noted that its pricing data supported Royal's 2014 earnings guidance.

Yesterday, UBS analyst Robin Farley said that cruise operators benefit from less capacity in mature markets, but those with the scale to deploy ships to China benefit the most - namely Carnival Corporation and Royal Caribbean Cruises. Next year, Carnival Corporation plans to move its fourth ship to China, the 2,928-berth Costa Serena, which sails in the Mediterranean.

What do the Carnival Corporation Charts Say?

The latest technical chart for Carnival Corporation shows shares bouncing around between two trend lines since the start of the year:

A long term performance chart shows that Carnival Corporation has underperformed both Royal Caribbean Cruises Ltd and Norwegian Cruise Line Holdings Ltd:

A technical chart for Royal Caribbean Cruises Ltd shows a strong and fairly steady uptrend while Norwegian Cruise Line Holdings Ltd hit rough seas back in the spring but has since recovered:

What Should Be Your Next Move?

Irrespective of the coming earnings report, I am not so sure about Carnival Corporation being the best cruise ship stock for investors. The industry is also highly cyclical with summer bookings being made in winter. Hence, the timing may not be right for new investors to take up positions in cruise ship stocks.

4 Familiar Stocks You Wouldn't Expect to Have High Yields

www.sixflags.com Major market indexes may be hitting new highs, but not everyone is celebrating. Given the lofty stock valuations and slowly expanding economy, many investors are starting to hunt for high-yielding stocks that can provide some steady income to help offset any upcoming market declines. Utility stocks, real estate investment trusts and limited partnerships are magnetic because of their chunky yields, but let's look beyond the obvious high-payers. Let's check out a few investments generating high payouts in some unlikely places. Six Flags (SIX) -- 5.1 percent yield It seems as if you can't run an amusement park chain as a public company without rewarding your stakeholders with some spending money for the next time they hit the park. This can probably be attributed to Cedar Fair (FUN), which as a limited partnership shells out most of its profits as distributions. This translated into a head-turning yield of 5.7 percent. Six Flags isn't too shabby, presently yielding more than 5 percent. Even SeaWorld (SEAS) is now brandishing a yield north of 4 percent, largely the result of losing nearly a third of its value after a poorly received quarterly report a few weeks ago. Running a theme park isn't cheap. It takes frequent sizable investments during the off-seasons to beef up the attractions. However, Six Flags is finding a way to build out its gated attractions while still being able to return money to its shareholders. Mattel (MAT) -- 4.3 percent yield Barbie, Hot Wheels and American Girl are just some of the famous playthings produced by Mattel. Barbie sales have slowed in recent years, plunging 15 percent in Mattel's latest quarter, and having a few more hit toys and games this upcoming holiday season wouldn't hurt. The toy-making giant has been struggling lately, missing Wall Street's profit targets in each of the past three quarters. Still, toy makers apparently don't play games when it comes to their payouts. Rival Hasbro (HAS) -- the toy company behind Transformers, Nerf and other diversions -- yields an impressive 3.5 percent. Regal Entertainment (RGC) -- 4.3 percent yield Movie theater stocks may not seem like a hotbed for quarterly disbursements, but it seems as if strong box office sales result in money trickling down to theater owners. Regal Entertainment watches over 574 movie theaters housing 7,349 screens. Regal is coming off a rough quarter in which revenue and adjusted earnings declined. Movie customers aren't upgrading to premium 3-D and supersized screenings the way that they used to, and Regal's been slow to update its concessions to make them more irresistible. Healthy payouts appear to be the feature attraction for exhibitors since growth has been a challenge. Regal rival AMC (AMC) offers a reasonable 3.4 percent yield. It's not as generous as Regal, but it's still more than just popcorn money. Then again, going by what multiplexes typically charge, maybe that's not enough popcorn money. Staples (SPLS) -- 4.2 percent yield Office supplies have been a bad bet for investors. Despite industry consolidation that resulted in the second- and third-largest superstores merging last year and a general improvement in the corporate economy, market leader Staples and its peers have been disappointing. Sales and adjusted earnings fell 2 percent and 27 percent, respectively, during Staples' latest quarter. It may not always be that way. Staples has responded by closing underperforming stores and widening its product offerings. It has also emphasized its online offerings that when combined with its local warehousing infrastructure can provide reliable next-day delivery through its own fleet of drivers. Investors who believe that Staples will get it right can pick up the top dog at a beaten-down price that currently offers a better yield than most fixed-income investments. Staples means business. More from Rick Aristotle Munarriz
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Should McDonald’s Be Worried About This Revenue Driver?

The American fast food giant McDonald's (MCD), continues to face sluggish sales in the month of August. With the demand for burgers falling in its domestic market in the U.S. and health scare arising in China, comparable store sales are getting adversely hit. Issues regarding food safety leveled among the Chinese suppliers and growing health consciousness among Americans is having a bearing on the company's revenue. Considering that this is the key revenue driver of the company, is it something the company should be worried about?

Tough times

McDonald's sales tumbled in China, a crucial market for growth, where it has 2000 stores. The company has been charged of using expired meat that it received from one of the Chinese supplier. In July a television station covered a report on McDonald's where they found that Shanghai Husi Food Co., the main meat supplier of McDonald's had supplied expired meat for the patties.

This scandal affected the reputation of McDonald's very badly and after that the outlets in China and Japan faced crisis for chicken and beef for three weeks. Shanghai Husi would supply meat to Yum! Brands (YUM), too, and they faced a similar fate. Since Yum! has a bigger presence in China, it is worse hit. McDonald's is working hard to win back the trust of its customers in China.

The Big Mac maker has 14,200 locations in the U.S. and is facing tough challenges in native stores too. The company is trying to lure customers by offering discounts and revamping outlets, but all ideas seem to be in vain. It was offering Jalapeno burgers for $2 and chicken nuggets for $5. Burger King (BKW) and Taco Bell, the two

Stocks Slip From Highs as Market Attempts to Explode the Fed Code

Stocks finished only slightly higher today after jumping following the Fed announcement this afternoon.

AP

The S&P 500 gained 0.1% to 2,001.57, while the Dow Jones Industrial Average rose 0.2% to 17,156.85. The Nasdaq Composite advanced 0.2% to 4,562.19 and the small-company Russell 2000 finished up 0.3% at 1,153.89.

Why the reversal? Maybe it was the fact that the Federal Reserve wasn’t as dovish as equity investors first thought. Nomura’s Jens Nordvig, for one, notes that “under the surface, the Fed is getting more hawkish.” He explains why:

Interest rate projections for 2015 and 2016 shifted up notably. And the new rate projections for 2017 were also showing high numbers, not far from the 'terminal rate'. In addition, Yellen stressed many times in the press conference that the Fed's view is data dependent. Moreover, she pushed back explicitly on the notion that 'considerable time' is a calendar commitment. Hence, even with an unchanged statement, the net result is weaker forward guidance, and hence the move higher in rates on the day.

Allianz’s Steve Malin thinks the focus on whether the Fed is hawkish or dovish misses the point. Instead, it should be on certainty versus uncertainty, he says. The Fed “needs really strong evidence that it’s time to move.” That means evidence that inflation is anchored at or above 2% and that the job market is further along in its recovery, of course, but also that the financial system is equipped to handle higher rates and that the Fed has the tools it needs to raise rates and make them stick. The Fed took a big step towards the latter with its second press release of the day, in which it laid out how it would tighten monetary policy when the time comes.  Says Malin: “I would say they made progress.”

This Technology Company Will Allow Investors to Benefit From Storage Developments

Sandisk (SNDK) has been disrupting the advanced storage industry for long. The flash memory maker, recently, stood out as truly newsworthy when it uncovered its Ulltradimm solid-state drives, or SSDs. Also this new item dispatch, similar to its previous successful ones, appears generally positioned to fast track the chipmaker's development going ahead.

Overwhelming technologies

Investors should note that the mass-well known SATA interface doesn't offer the fastest information transfer rates or access latencies. Actually, SATA controllers can make an inactivity overhead of 1µ second because of their design issues. Consequently, SATA drives aren't by and large prepared in elite registering machines.

At the same time SATA drives have a great spin-speed of 7200 rpm, SAS drives offer a much faster spin of around 15,000 rpm. Plus, their controllers can simultaneously access numerous drives. The Pcie interface, be that as it may, is the fastest amongst its specified peers. Using software drivers, a processing processor is straightforwardly equipped to speak with Pcie-based drives. This lowers the disk dormancy, however its software drivers consume around half of CPU resources. Thusly, none of the said technologies offer seamless information transfer without drawbacks.

Quick flash

Sandisk's entrance into the field of DIMM-perfect SSDs, with its Ulltradimm drives, was a standout amongst the most prominent developments in the NAND industry this year. These modules are designed to chip away out of gear DRAM slots, which connects the NAND module specifically with the CPU without requiring any driver support.

Consequently, Sandisk's Ulltradimm drives sport an extensive low compose inactivity of 5µ seconds. This is around 800 times faster than traditional hard drives, and around 10 times faster than established and enterprise-favored Pcie-based SSDs – something that proves especially useful in CPU and disk intensive tasks like high recurrence exchanging, or online transaction processing.

RBC estimates that the entrance rate of DIMM-devoted Ssds will achieve 10% in 2015. What's more Sandisk, as of now the main openly listed adult NAND producer to offer this progressive engineering, will be one of the few suppliers of this innovation.

Broad landscape

This cutting edge engineering as of now has a real purchaser. IBM (IBM), one of the heading elite server manufacturers, has signed-up with Sandisk to prepare these speedy drives in its X6 servers. This highlights IBM's proceeded with efforts to hold its piece of the overall industry in the high-margin and superior server segment.

According to a research firm, Intel (INTC) is the largest maker of enterprise-scale SSDs. The organization, then again, at present has no plans to wander into the DIMM-committed SSDs. On the off chance that the interest for these drives picks up quickly going ahead, Intel should seriously mull over entering the segment. By then, be that as it may, Sandisk would've established its market position and perhaps even altered known bugs with these cutting edge memory modules.

Conclusion

Needless to say, if gear manufacturers take after IBM's footsteps and prepare Ulltradimm drives in their top-level servers, Sandisk's business position will further strengthen. This would move Sandisk's development going ahead, a

Four Consumer Discretionary Companies Where Insiders are Buying

Although Inside Scoop is on an August respite (feel free to catch up all the Scoop goodness here), we're still prowling around over at InsiderScore looking for interesting buys this month. One space where insiders bought is the consumer discretionary sector.  The highlights:

At Genuine Parts (GPC), CEO and Chairman Thomas Gallagher bought 5,000 shares of the auto and industrial parts company for $420,000, marking his first transaction on record in 10 years. Gallagher bought after the company's earnings beat estimates. InsiderScore notes that the last purchase at the company was in December 2012 and comments:

[Gallagher is] sending a compelling message that he thinks the stock isn’t fairly valued. While multi-insider events send stronger signals we note that any buy/sell activity is rare, making the purchase a true outlier.

Rent-A-Center (RCII) grabbed our attention when the new CFO joined a director for a cluster buy. Most notable were Guy Constant, who bought 10,000 shares for $248,400 and J.V. Lentell, a director, who bought 5,000 shares for $119,000. InsiderScore notes that the buys occurred in the wake of a three-year low at the rent-to-own durable goods retailer.

Homebuilder Beazer Homes (BZH) makes the cut following a cluster buy worth $781,300. Executives including CEO Allan Merrill and CFO Robert Salomon participated at a time when shares fell on earnings that missed estimates. InsiderScore had this to say:

The cluster buy sends a message that insiders believe the market overreacted to earnings and that the stock’s price is not representing their perceived value. This is classic buying on post-earnings weakness but it’s something we’ve seen less of across the market over the past few years due, in part, to relatively high levels of insider selling.

Finally, another cluster buy following earnings weakness and a share slump occurred at Penn National Gaming (PENN). Three top executives including CEO Timothy Wilmott, who bought 50,000 shares for $522,700 and COO Jay Snowden, who bought 11,500 shares for $118,900 participated. Also joining them was CFO Saul Reibstein, who bought 2,500 shares for $25,400. InsiderScore notes that Wilmott and Snowden bought at similar levels in May.

Meridian Funds Comments on EOG Resources

Long-term holding EOG Resources (EOG) is a large, diversified oil and gas exploration and production company. The stock fell out of favor when the company made poorly timed investments to expand natural gas production just prior to a precipitous drop in natural gas prices. We saw this as an opportunity because the company possessed both the management acumen and attractive resource base to efficiently pivot production away from natural gas to oil. EOG continues to execute this strategy with better than expected oil production and higher oil prices driving strong stock performance during the fiscal year.We maintain our position in the stock.From Meridian Funds (Trades, Portfolio)' Meridian Contrarian Fund Second Quarter Commentary.Also check out: Meridian Funds Undervalued Stocks Meridian Funds Top Growth Companies Meridian Funds High Yield stocks, and Stocks that Meridian Funds keeps buying

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Sanofi: First Heart Disease, Now Dengue Fever

Yesterday, Sanofi (SNY) got a boost when Regeneron (REGN) reported solid trial results for its anti-cholesterol drug alirocumab. Today, it’s getting a lift from a trial data on its dengue fever vaccine. Citigroup’s Peter Verdult and Andrew Baum explain:

Reuters A pest control worker sprayed insecticide to help control the spread of dengue fever in Kuala Lumpur.

The second large scale Ph III study conducted in Latin America demonstrated overall efficacy of 61% (42-78% across the four serotypes), and 80% reduction in the risk of hospitalization. Ph III data from a study in Asia was presented earlier this year showing 56% efficacy (35-72% across the four serotyeps), a 89% reduction in dengue hemorrhagic fever, and 67% reduction in the risk of hospitalization. FDA has mandated an efficacy hurdle of >25% for Dengue vaccine candidates seeking approval. Consequently we see regulatory risks for Sanofi's Dengue vaccine as low…

We continue to argue Sanofi offers near term momentum. This is based on scope for pipeline expectations to rise (today's news on Dengue vaccine and recent PCSK9 data should help), coupled with an attractive valuation and earnings upside risk going into Q3. Sanofi trades at a >10% PE discount to the sector yet offers comparable growth (5YR EPS CAGR 10%). That said, we retain our Neutral rating as we have higher conviction on the LT fundamentals elsewhere in the sector, and remain concerned about the sustainability of growth for the diabetes franchise (>30% of profits) post 2017. Preferred Pharma plays include AstraZeneca (AZN), Bayer, Novo Nordisk (NVO) and UCB. Bristol-Myers Squibb (BMY) and Pfizer (PFE) are our preferred US plays.

Shares of Sanofi have climbed 1.1% to $55.58 at 10:30 a.m., while Regenron has gained 0.8% to $362.32, AstraZeneca has advanced 1.1% to $75.43, NovoNordisk has risen 0.9% to $45.79, Bristol-Myers Squibb is unchanged at $50.58 and Pfizer is up 0.4% at $29.37.