Top Dividend Stocks To Buy For 2018: January 2014

Friday, January 31, 2014

Natural Gas Futures Off High of the Day

After getting a boost from the release of inventory data, Natural Gas futures traded to 3.743. That level is the highest one for the contract since October 28, when it reached 3.788. Since making the high, Natural Gas futures pulled all the way back to 3.68 before resuming its rally.

Posted-In: Futures Commodities Technicals Markets Trading Ideas

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Thursday, January 30, 2014

Big investors buy up homes in key markets

Big investors continue to expand into more cities for single-family homes as they pull back in others.

Last month, institutional investors, who largely buy single-family homes to turn into rentals, accounted for about one in four home sales in Atlanta, Las Vegas, St. Louis and Jacksonville, data from RealtyTrac show.

They also accounted for a big chunk of sales in Charlotte and Memphis.

Price gains will likely follow the investor buyers, says John Burns, CEO of John Burns Real Estate Consulting, as they did in earlier hot investor markets such as Phoenix and Sacramento.

HOUSING MARKET: Pending home sales slip: Flat sales next year?

He speculates that investor buyers — including institutional Wall Street buyers, individuals who flip homes for quick profits and mom and pop investors — have driven much of this year's home price appreciation.

CoreLogic data show prices up 12.4% in August year over year, but faster in areas favored by investors, like Phoenix and Sacramento, which were up 18% and 26% respectively.

"Investors were just smart. They saw that homes were undervalued. They jumped in and pushed prices back up to normal," Burns says.

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Big investors still account for a small part of the overall housing market. As a result, their impact on overall prices isn't that great, said Richard Smith, CEO of real estate firm Realogy Holdings, at a Zillow housing forum Thursday.

Prices have also risen in areas that have had little investor activity, says Mike Orr, real estate expert at the W.P. Carey School of Business at Arizona State University.

Orr tracks the Phoenix market, which was one of the first targeted by investors.

In mid-2012, investor activity peaked in Phoenix, Orr says. Then, they accounted for almost 40% of home sales. Those investors would include small investors.

LENDERS: Home loans ! become a little easier to get

For this September, Orr says investors accounted for about 23% of sales. Historically, they'd be 15% to 20% of the market, he says.

While Phoenix home prices in August were up more than the national average, home price gains have been slowing this year, show seasonally adjusted price data from Standard & Poor's Case-Shiller index.

A "cooling wave" in terms of demand has now settled in after a frantic spring, Orr says. Falling investor interest is playing a role, but lack of enthusiasm from regular buyers is more important because they're more numerous, Orr says.

Tuesday, January 28, 2014

McDonaldâ€™s, Netflix, TI are stocks to watch Monday

SAN FRANCISCO (MarketWatch) — Among the companies whose shares are expected to see active trade in Monday's session are McDonald's Corp., Netflix Inc. and Texas Instruments Inc.

McDonald's (MCD) is projected to report third-quarter earnings of $1.51 a share, according to a consensus survey by Thomson Reuters.

McDonald?s McDonald's is set to report third-quarter earnings on Monday.

Analysts at Janney Capital Markets cautioned that current expectations for McDonald's same-store sales in the U.S. are too high. "Should domestic sales merely match — or even underperform — Street expectations, then we believe it will be challenging for the stock to meaningfully outperform its restaurant-stock peers and the S&P 500," Janney's Mark Kalinowski said in a report published earlier this week.

Netflix (NFLX) is forecast to post earnings of 49 cents a share in the third quarter. "Netflix is a subscriber expansion story and net additions will remain the key metric," Rob Sanderson at MKM Partners said. Sanderson estimates Netflix net added domestic subscribers in the upper end of the 800,000 to 1.5 million range it previously projected.

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Tech week ahead: new Apple gadgets

Apple is expected to announced new products and Microsoft reports earnings. Photo: Getty Images

Texas Instruments (TXN) is expected to post third-quarter earnings of 53 cents a share. TI's results are generally expected to meet expectations, according to analysts at Wedbush. "Our industry checks indicate that TI likely benefited from growth in industrial, automotive, and communications infrastructure, and new product launches of handsets, notebooks, and gaming consoles," Betsy Van Hees at Wedbush said in a report.

Halliburton Co. (HAL) is likely to report third-quarter earnings of 82 cents a share.

Hasbro Inc. (HAS) is forecast to post earnings of $1.29 a share in the third quarter.

Gannett Co. (GCI) is projected to post earnings of 41 cents a share in the third quarter.

VF Corp. (VFC) is likely to report earnings of $3.78 a share in the third quarter.

VMware Inc. (VMW) is expected to report earnings of 82 cents a share in the third quarter.

Monday, January 27, 2014

5 Rocket Stocks for a Volatile Week

BALTIMORE (Stockpickr) -- Buckle your seatbelt: Volatility is on the rise this week. By Friday's close, the VIX Volatility Index was up more than 31%, a big spike considering the relatively low levels it's stayed at for the last year.

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Last week's late selloff shoves volatility to the highest level we've seen since September.

Volatility, though, isn't necessarily a bad thing (even though it's characteristic of down-side moves). And considering the S&P 500's enormous rally, investors shouldn't be terribly surprised by some froth at the top. As I mentioned on Thursday, we're still in a "buy the dips market." Even the 2% decline in stocks in their most recent session doesn't change that.

So while most investors suddenly duck and cover, we're looking at five new Rocket Stock names to make the most of this week's price action.

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For the uninitiated, "Rocket Stocks" are our list of companies with short-term gain catalysts and longer-term growth potential. To find them, I run a weekly quantitative screen that seeks out stocks with a combination of analyst upgrades and positive earnings surprises to identify rising analyst expectations, a bullish signal for stocks in any market. After all, where analysts' expectations are increasing, institutional cash often follows. In the last 233 weeks, our weekly list of five plays has outperformed the S&P 500 by 85.02%.

Without further ado, here's a look at this week's Rocket Stocks.

Juniper Networks

Investors love an underdog -- which might have something to do with the fact that No. 2 IP networking firm Juniper Networks (JNPR) has rallied more than 22% in the last 12 months, while standard bearer Cisco Systems (CSCO) has only managed to make its way 5% higher over the same period.

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Juniper's better-than-expected fundamental performance may have something to do with that outperformance too. Either way, JNPR is enjoying some upward momentum, especially after last week's positive earnings call.

Juniper designs and sells hardware and software that enable IT infrastructure to communicate and remain secure. The firm has a stellar business in supplying carrier routers, telecom equipment that's been in high demand thanks to network expansion efforts from telcos. It's also grabbing a growing share of the datacenter equipment sold worldwide, another business that's got a stiff tailwind pushing at its back. While the scale difference is substantial between JNPR and Cisco, that also means that any market share Juniper steals from its rivals matters more for it.

From a financial standpoint, Juniper is in excellent shape right now. The firm boasts $4.1 billion in cash and investments, more than enough to offset its billion-dollar debt load. Juniper's profit and sales trajectory looks auspicious as we head into 2014. If it can pull a repeat performance next quarter, expect to see another double-digit year for shares.

Union Pacific

It's a little funny to think that railroad giant Union Pacific (UNP) is a Rocket Stock this year. After all, compared with a technology innovator such as Juniper Networks, trains feel like stone age tech. But dig a little deeper, and UNP paints a very different picture. Not only are the big macro trends pointing in this railroad's favor in 2014, but Union Pacific is also delivering record financial performance right now.

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Here's why now is the time to take advantage.

Union Pacific is the largest railroad in North America, with around 32,000 miles of track spread across 23 U.S. states, Canada, and Mexico. Railroads may not be new technology, but their efficiency is hard to argue with. Particularly with oil prices sitting at the high end of their historic range, U.S. rail transport is an exceptionally efficient means of moving massive volumes of freight across the country. Compared with trucks, rail shipping generally costs around one-fourth as much per ton shipped, so as higher oil costs get forecasts in years ahead, shippers become much more willing to ship via rail freight.

Last week, UNP announced that 2013 was a year of record revenues and profitability for the firm, tacking another $2 billion of post-dividend free cash flow onto its balance sheet. Railroads may not be the sexiest industry for 2014, but it could be one of the most profitable for investors.

Dolby Laboratories

Mid-cap entertainment technology firm Dolby Laboratories (DLB) is another name that's enjoying some strong momentum of late; since the calendar flipped over to January, shares of the firm have rallied more than 7%. For comparison, the S&P is down more than 3% over that same period. That sort of relative strength is key to staying afloat when the market's in corrective mode.

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Dolby Labs develops surround sound technology for everything from movie theaters to automobiles, TVs and computers. Three out of every four dollars Dolby earns comes from licensing its technology to electronics makers; the rest comes from professional equipment sales. Dolby owns patents that maximize users' audio experiences, and for that, it earns a piece of every DVD and Blu-Ray sold today. While the key Dolby Digital patents are slated to expire by 2017, the strength of the Dolby name and the pace of new content delivery methods should both help to mitigate some of those potential licensing losses. Dolby's mirrored "D" logo isn't likely to disappear from your devices anytime soon.

Better yet, Dolby currently boasts a balance sheet with nearly $1 billion in net cash and investments: enough to pay for almost a quarter of the firm's current market capitalization at current prices. That's also good enough to shove DLB's price-to-earnings multiple back down into the mid-teens.

With rising analyst sentiment in this audio stock, we're betting on shares this week.

E*Trade Financial

As the market goes, so goes E*Trade Financial (ETFC). E*Trade is a discount brokerage firm -- one of the first mainstream online discount brokers, in fact. Today, the firm's offerings reach beyond just retail brokerage: E*Trade is also a consumer bank, and provider of retirement services for large companies.

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The decision to form a bank holding company was born out of necessity in 2008. The firm was leveraged to the brink, and it needed access to the cheap capital that Uncle Sam was providing that special class of financial services firms. But banking is extremely complementary to retail brokerage, and the cheap source of deposits for E*Trade should provide substantial return opportunities since it's able to make traditional loans as well as higher-interest margin loans for its investment customers.

In a big way, E*Trade's legacy business is a leveraged bet on the stock market. As retail investors become more engaged by upside in the S&P (and their accounts grow), ETFC should be able to generate more commission revenues. The firm has a balance sheet that's in solid shape in 2014, and it's got extra downside protection from equities thanks to its banking arm.

As interest rates get upwardly mobile, expect E*Trade's bottom line to grow materially.

Covidien

Last, but certainly not least, is medical device maker Covidien (COV). Health care has been one of the best-performing sectors over the past few months, and Covidien has been no exception. After some big changes in 2013, this stock is ready to continue move higher this year.

After spinning off its pharmaceuticals business into Mallinckrodt (MNK) last year, COV became a pure-play medical device and imaging manufacturer, businesses that are expected to grow significantly over the next few years thanks to demand from more liberal insurance rules and aging demographics. With generic pharma separated from COV's income statement, the firm should be able to produce bigger margins for its wide offering of devices. Better, several of Covidien's newer product launches have the potential to be surprise sellers in 2014.

Because COV spends considerable cash on R&D, it's able to scale down development costs dramatically (and save profitability) during periods of economic belt-tightening. Likewise, the firm's balance sheet provides enough dry powder to invest in growth through acquisitions within its newly concentrated focus.

With rising analyst expectations in COV this week, we're betting on shares.

To see all of this week's Rocket Stocks in action, check out the Rocket Stocks portfolio at Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

Sunday, January 26, 2014

Apple, Inc. (AAPL): Will Apple Kill Pandora's 185% Rally In 2013?

Any time an 800-pound gorilla moves into the neighborhood current residents have reason to be worried. And that is exactly what is happening with Apple, Inc. (AAPL) and Pandora (P) right now.

Apple has been making headlines lately with the release of its new iPhone and operating system iOS7. But what is turning out to be one of the most interesting components of the release, the iOS7 comes embedded with Apple's new streaming radio service called iTunes Radio. Although iTunes Radio isn't dominating the headlines like the new iPhone 5C, the service is quickly making a big impact on the market and represents a huge threat to Pandora.

At the very top, iTunes Radio offers more than 25 million songs compared to just 1 million for Pandora. That is a huge difference that makes Pandora look like a little kid trying to play with the big boys.

Pandora is also in trouble because half of its 72 million users already use the iPhone, which gives its listeners instant access to a fierce competitor with a much bigger inventory of songs to choose from.

And with hundreds of millions of iPhone users all across the world, Apple has a direct line to an entire new market that Pandora otherwise has little access to.

There may be room for 2 big players in the streaming radio space, but even if that's true, Apple is going to pressure industry margins. That's because streaming radio service providers simply act as distributors and don't control any original content. That makes reach, distribution and margin a simple matter of scale, where the biggest player on the Street can afford lower margins and loss leaders in order to starve smaller players out of profitability.

But it's clear the market doesn't care. Or isn't paying attention. Because Pandora is up 185% in 2013 and trading deep into an all-time high. But those gains aren't being driven by earnings, because Pandora is expected to lose 16 cents this year. 2014 doesn't look much better, when Pandora is supposed to earn a grand total of 6 ! cents.

With shares just shy of $27, that has Pandora trading with a forward P/E of 450x. For comparison sake, it Apple had that same valuation, shares would be trading at $18,000.

The Takeaway

Any time the biggest and baddest kid on the Street moves onto your block it's time to get nervous. And that's exactly what Apple is going, making a bold move into Pandora's turf with its entrance into the streaming radio market. But while this huge threat has emerged, Pandora is up 185% on the year and continues to move deeper into an all-time high. That makes Pandora at risk for both short and long-term losses as the market contemplates this new threat in the face of a ridiculously overvalued share price.

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Saturday, January 25, 2014

Emerging markets extend slide in â€˜perfect hurricaneâ€™

NEW YORK (MarketWatch) — Investors kept up a stampede out of emerging-market assets on Friday, pushing the Turkish lira to yet another record low and weighing on the benchmark index for emerging-market stocks.

The broad selloff began Thursday after a surprise contraction in China's manufacturing sector exacerbated concerns about economic growth among emerging-market countries as well as political turmoil in some of them. That continued to pressure markets on Friday.

Domestic factors also hit some markets. Stocks in Argentina were sliding Friday after Argentina eased controls on dollar purchases amid fears of a financial crisis there following a devaluation of the currency.

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Esteves: Argentina is a Special Case

Andre Esteves CEO of BTG Pactual tells WSJ's Thorold Barker at the World Economic Forum that Argentina's problems should not infect other emerging markets. Photo: Getty Images

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Still, most analysts were still looking to the world's second-largest economy.

"At the core of this is concern about the slowdown in China," said Lars Christensen, chief analyst and head of emerging-market research at Danske Bank.

China has become the largest trading partner for countries like Brazil and South Africa, which means that prospects for Chinese growth have become more important than prospects for U.S. growth, he said. Another reason for China's influence is its consumption of commodities, which are exported by many emerging-market countries.

More broadly, however, emerging markets have been under pressure since last year as investors increasingly bet in 2013 that the Federal Reserve would begin to stem its monetary stimulus, pushing yields higher and making emerging-market assets less attractive. Indeed, the Fed in December announced a $10 billion cut in its monthly bond purchases, and investors widely expect another cut after the Fed's January meeting next week.

/quotes/zigman/322623/delayed/quotes/nls/eem EEM 38.24, -1.03, -2.62% The benchmark index for emerging-market stocks falls

Rising yields are also making it more expensive for countries such as India and Turkey to fund their current-account deficits.

"It's a bit of a perfect storm at the moment. Rather, it's a bit of a perfect hurricane," said Christensen.

The MSCI Emerging Markets Exchange-Traded Fund (EEM) fell 2.6% to close at $38.24, its lowest level in more than four months. The fund had the third-biggest outflows as investors withdrew $757.3 million in the week ended Thursday, according to IndexUniverse data.

"It is a big movement, but not something that we haven't seen in the last few years," said Lu Yu, an emerging-markets portfolio manager at Allianz Global Investors.

A better way to invest in emerging markets is to increase exposure to companies that benefit from middle-class consumption, rather than export- or resource-related companies, she said. That's because China is going through a structural shift toward an economy driven by domestic consumption, she said. The middle classes are also expanding in countries like Mexico and Brazil, she added.

The iShares J.P. Morgan USD Emerging Markets Bond Exchange-Traded Fund (EMB) fell 0.6% to end at $107.55.

"Now that tapering has been announced and the Fed has ratcheted down its monthly pace of purchases, emerging markets appear even more vulnerable to signs of cracks in the surface," said Andrew Wilkinson, chief market analyst at Interactive Brokers, in a note.

In Turkey, those cracks include a political scandal that has ensnared Prime Minister Recep Tayyip Erdogan and his allies. The U.S. dollar (USDTRY) rose against the lira for the 10th-straight session on Friday to hit another record, buying 2.3377 lira from 2.2929 lira late Thursday.

The dollar (USDZAR) increased to 11.0901 South African rand from 10.9912 rand late Thursday. That's the highest level since October 2008, according to FactSet. The dollar (USDARS) also strengthened to 7.9915 Argentine pesos from 7.9030 pesos on Thursday, a day in which the peso posted its biggest one-day loss since 2002 .

The drop in the Argentine peso has also hit Spanish stocks hard because of big investments in Latin America by the country's banks.

Reuters

Enlarge Image The Turkish lira extends its decline against the dollar into the 10th session.

Goldman Sachs Chief Executive Lloyd Blankfein told CNBC on Friday that emerging markets are viewed as a single entity when the going gets tough, as opposed to examining individual countries as is done in good times. "Emerging-market currency risk has become a macro event ," he said on the sidelines of Davos.

The dollar also showed strength against the Indian rupee, Brazilian real and Mexican peso on Friday.

Friday, January 24, 2014

Can automakers resist over-production as buyers…

NEW ORLEANS — This year is shaping up to be a record year for consumer spending on new vehicles, and that could make it tempting for automakers to return to giddily building too many vehicles as they try to to capitalize on resurgent demand -- then having to resort to discounts to sell them all.

"It will continue to be an extraordinarily strong year and should break (consumer spending) records in 2014," said Thomas King, senior director of consulting and analytics with J.D. Power.

"The risks are interest rates and discipline," he said at an automotive conference in conjunction with the annual National Automobile Dealers Association convention that opens Saturday and runs through Monday.

Thousands of dealers from around the world are converging in New Orleans for private meetings with auto executives to learn about the vehicles they will be selling this year and get updates on the activities of their respective brands.

"What happened a few years ago is still fresh in everyone's mind and what the risks are," King said of the danger of returning to bad practices of overbuilding, then needing to fire-sale the glut.

"The threat is real and cannot be underestimated," King said.

It's a direct threat to automakers because every incentive dollar is one less dollar of profit.

But so far, the industry remains on a path of healthy growth.

Consumers spent a record $375 billion on new vehicles in 2013 and it will grow to $396 billion this year, King said. That is up from $227 billion in 2009.

The average transaction price in 2013 was $29,200, up from $25,500 in 2009. King forecasts it will increase $500 this year.

"This is really driving industry profitability," the analyst said of the automakers' success in reducing capacity during the downturn. "As the industry has right-sized production, we're starting to see those higher prices."

"The industry is in good shape," King said. "It is good news for Detroit."

The danger is most automakers are runn! ing their plants full-out and some are already adding capacity, especially in Mexico.

BMW North America CEO Ludwig Willisch said he goes pleading to his bosses in Germany for more vehicles. "But it's a nice problem to have."

The auto industry is growing faster than the general economy and Willisch is bullish, saying that "2014 won't be a problem in terms of overproduction."

No one wants to return to 2009 when new cars sat on the lot for 73 days. Inventories fell to a lean 50-day range from 2010-2012 and inched up to 58 days last year where it is forecast to stay this year, according to J.D. Power data.

King said the higher inventory may not represent a loss of discipline so much as the struggle to embrace volatility in the industry and make corrections. Accurately predicting demand is not easy.

Ford, for example, lost sales last year when it could not make enough of some popular vehicles such as the Fusion and Escape. But it also had temporary shutdowns at some car plants when the days' supply of certain models was too high, including versions of the Focus and even the Fusion which had a bit of a glut when the Flat Rock plant in Michigan added production of the mid-size car.

The other worry is interest rates. At about 3.9% on new-car loans, they are far below 6.7% in 2008 but King forecasts they will inch up to 4% this year and an increase of 100 basis points translates to a loss of 300,000 retail sales or $8 billion in lost revenue.

"Higher rates is a sales and transaction price risk," King said.

Leasing, which lowers monthly payments, had dried up during the recession, but now accounts for one in four purchases.

King said 31% of leases this year will be for 72 months, allowing the industry to have high transaction prices while consumers get lower payments.

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King said the 72-month lease i! s a legit! imate sales tool, but that he would not want to see the percentage of long-term rates go much higher.

At BMW the average lease is 24-36 months and the longest is 60 months, Willisch said.

Thursday, January 23, 2014

Carl Icahn Refutes Hertz Buying Rumors

Also check out: Carl Icahn Undervalued Stocks Carl Icahn Top Growth Companies Carl Icahn High Yield stocks, and Stocks that Carl Icahn keeps buying

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Tuesday, January 21, 2014

Dan Loeb Takes a Stake in Dow Chemical

Dow Chemical Co.(DOW) hasn’t quieted activist shareholders with its plans to carve up the company, announced in early December.

Activist investor Dan Loeb, the founder of the hedge fund Third Point, revealed Tuesday morning that he holds a new stake in Dow Chemical. In a letter to investors released on the Harvest Exchange, a website for sharing investor ideas, he noted that Dow Chemical is currently Third Point’s largest current stake,, but didn’t disclose his actual position.

In early December, Dow announced plans to exit low-margin performance chemical operations, but for Third Point, that’s not enough. The hedge funds is calling for a more dramatic split of the units that turn oil and gas into chemicals from the unit that makes
higher-margin specialty chemicals used in agriculture, food, pharmaceuticals, and electronics.

Mr. Loeb called Dow Chemical to engage outside advisers to see if the chemical company’s current plan to carve out $5 billion of its commodity chemicals business is the right one. ”The review should explicitly explore whether separating Dow’s petrochemical businesses via a spin-off would drive greater stakeholder value,” Mr. Loeb wrote in a presentation.

“Dow shares have woefully underperformed over the last decade, generating a return of 46% (including dividends) compared to a 199% return for the S&P 500 Chemicals Index and a 101% return for the S&P 500,” he wrote. “The company's weak performance is even more surprising given that the North American shale gas revolution has been a powerful tailwind for Dow's largest business exposure – petrochemicals,” Mr. Loeb added.

Shares of the company spiked nearly 7% Tuesday morning after Third Point announced its stake.

Since Dow Chemical announced plans to spin out its commodity chemicals company in early December and before Tuesday’s rise, shares had popped more than 10% compared to a roughly 2% increase in the S&P 500.

– David Benoit contributed to this post.

Saturday, January 18, 2014

S&P 500 Q2 Outlook: Shrinking Revenue, â€˜Subparâ€™ Profit Growth

With the second-quarter 2013 earnings season now in peak week, S&P Capital IQ has stepped forward with its Q2 outlook, predicting that S&P 500 earnings growth will come in at 3.45%, while revenues will continue to lag at an estimated -1%.

Notably, strength in Q2 is anticipated to come from the financials and consumer discretionary sectors, with earnings per share (EPS) growth seen at 16.17% and 14.43%, respectively.

“Corporations have needed to very carefully manage costs and profit margins because of a year-over-year decline in revenue growth,” said Robert Keiser, vice president of S&P Capital IQ Global Markets Intelligence, in a Tuesday webinar. “We’re still looking at a very subpar growth environment, which is having a negative impact on revenue growth.”

Although U.S. companies are likely to finish out 2013 with single-digit earnings, the market expects double-digit earnings growth in 2014, Keiser noted. S&P Capital IQ pegs overall 2013 EPS coming in at an all-time record of $110.54, surpassing the record of $103.47 posted in 2012.

He said that investors currently prefer high-quality stocks, with a bias toward large-cap equities.

The 3.45% growth expectations come as of Tuesday morning, when six companies reported Q2 earnings, including the financial companies Goldman Sachs (GS) and Charles Schwab (SCHW), said Christine Short, associate director of S&P Capital IQ Global Markets Intelligence.

“We are seeing some pretty decent revenue numbers so far,” Short said, while acknowledging that earnings growth of 3.4% is “fairly low.”

Goldman Sachs’ Q2 profits doubled as the investment bank saw trading revenues roll in from fixed income, currency and commodities. Profits totaled $1.93 billion versus $962 million from Q2 2012, while EPS stood at $3.70 versus $1.78 a year ago and revenues jumped 30% to $8.6 billion. Analysts’ expectations were for EPS of $2.82 on $7.98 billion in revenues.

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Short said Schwab was the only company on Tuesday to miss revenue expectations. Schwab reported EPS of $0.18, down from $0.20 in Q2 2012, although quarterly revenues saw a 4.2% increase to $1.34 billion. Total expenses were 8.7% higher, which cut into Schwab’s profits.

The U.S. stock market headed south on Tuesday after the Dow Jones industrial average reached an all-time high on Monday for its third straight trading day. At midday, the DJIA was down 41.85 points, or 0.26%, at 15,442. The S&P 500 was down 7.67 points, or 0.46%, at 1,675. The Nasdaq index was down 11.60 points, or 0.32%, at 3596.

Taking a broader view of overall economic trends, Keiser went on to say that the U.S. economy has responded positively to the Federal Reserve’s third round of quantitative easing, yet concerns remain about the future pace of GDP growth and the Fed’s plans to taper its QE3 bond purchases.

“Coming out of the 2007-9 Great Recession, GDP growth has continued to be subpar and is now going sideways,” Keiser said.

Positives include the U.S. unemployment rate, which is currently at 7.6% and headed toward 7%, and consumer strength as evidenced by growth in home sales and this week’s historically high retail sales data, he said.

“The U.S. consumer continues to spend,” Keiser said. “With this consumer strength, it’s hard to envision the economy slipping into recession.”

Read JPMorgan, Wells Fargo Beat Estimates for Q2 at ThinkAdvisor.

Friday, January 17, 2014

HUDCO tax free bond: Highest coupon, last opportunity

Housing and Urban Development Corporation Ltd (HUDCO) has come out with a tax free bond issue. This is the fourth tax free bond issuance after REC , PFC and IIFCL, which had come out with issues earlier in the current year. The HUDCO tax free bond comes with an annualised coupon of 7.84%and 8.01% to retail investors for tenure of 10 years and 15 years, respectively. G-Sec yields which are a benchmark for determining coupon on tax free bonds have corrected by 15-20bps in the last week. New bond issues will be coming at a lower coupon. Therefore, HUDCO tax free bonds provide the last opportunity to lock in higher rates.

Interest received on the bond is fully exempt from income tax. The pre-tax yield on the bond for the highest tax bracket investors, therefore, works out to 11.34% and 11.59% for 10 years and 15 years, respectively, higher than 8.5-9% on bank fixed deposit and other stable fixed income instruments. CARE and IRRPL have assigned AA+ rating for the bond issue, which is a notch below the highest AAA rating. The rating signifies a low credit risk. HUDCO is a wholly owned government company conferred with a Mini Ratna status. Increased focus of the government on the infrastructure space, going forward, may further augment government support and focus in development of HUDCO. Also, the secured nature of the bond makes them less risky making it a good fixed income investment option.

HUDCO tax free bond comes with a coupon rate of 7.84% and 8.01% for 10 years and 15 years, respectively, for a retail investor. It is the highest coupon rate offered so far, as it is rated AA+ as compared to AAA ratings of bonds issued earlier. However, there is no significant credit risk difference in the two ratings.

The coupon on the bond issued under the tax exempt clause is related to the prevailing government securities rates. The ceiling in the coupon rate for a AA rated issuer is fixed at 80 basis points (bps) below the reference G-sec rate* for the retail investor and 100 bps lower for others.It may be noted that the differential rate for retail investors shall be applicable only to original allottees. In the event of sale/transfer by the original allottee of the bond, the subsequent allottee will get the rates of other investor's category. Hence, in order to get higher coupon it is advisable for a retail investor to subscribe to this new issue and hold till maturity.

The bonds will be listed on the National Stock Exchange. HUDCO Tax Free bond issued last year is currently trading at YTM of 7.61% and 7.47% for 10 years and 15 years, respectively. All other previous AAA 10 year tax free bonds are currently trading at 7.3-7.6% YTM and have earned 4-5% gains to existing investors. Given that interest rates are expected to decline there can be a similar capital appreciation possibility over the next six months to one year.

We believe the bond is a good investment option for a fixed income investor given its tax exempt status, higher coupon rate and issuance from a Mini Ratna government company.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

Wednesday, January 15, 2014

Apple settles with FTC over in-app purchases

Apple has reached a $32.5 million settlement with the Federal Trade Commission over unauthorized purchases made within smartphone and tablet apps.

The settlement requires Apple -- makers of the iPad and iPhone -- to offer full refunds "for any charges by a minor that are unauthorized," says FTC Chairwoman Edith Ramirez in a press conference Wednesday.

The deal also mandates Apple updates its billing practices to ensure it has express content from users before charging them for content within apps.

"This settlement is a victory for consumers harmed by Apple's unfair billing, and a signal to the business community: whether you're doing business in the mobile arena or the mall down the street, fundamental consumer protections apply," said Ramirez.

The deal stems from purchases made within apps by kids using a smartphone or tablet. In most cases, the purchases are racked up without their parents' consent.

Many mobile games and apps offer items such as in-game currency that users can buy from within the app instead of Apple's App Store. The price of these in-app purchases range from 99 cents to $100.

Ramirez cites the example of one consumer whose daughter spent $2,600 on in-app purchases from the game Tap Pet Hotel.

The FTC complaint also claims Apple does not inform consumers of a 15-minute window opened after a user enters that password that allows for unlimited purchases on the App Store or within apps.

In an employee memo obtained by several tech sites including Re/code, Apple CEO Tim Cook says emails were sent last year to 28 million App Store customers, and sent refunds off 37,000 claims.

"It doesn't feel right for the FTC to sue over a case that had already been settled," reads an excerpt of Cook's memo. "To us, it smacked of double jeopardy. However, the consent decree the FTC proposed does not require us to do anything we weren't already going to do, so we decided to accept it rather than take on a long and distracting legal fight."

Follow ! Brett Molina on Twitter: @bam923.

Sunday, January 12, 2014

Best Stocks To Buy

Bank of America (NYSE: BAC ) is on its way to modest gains for the second day in a row as the bank sits at a 0.7% rise as of 10:30 a.m. EDT. The big news for bank investors this morning doesn't really involve B of A, but it will give its shareholders a glimpse at what's to come next Wednesday when it reports second-quarter earnings.

Officially open
Bank earnings season officially started this morning when both JPMorgan Chase� (NYSE: JPM ) and Wells Fargo (NYSE: WFC ) reported for the second quarter. Both banks topped analyst expectations for both top- and bottom-line growth, giving other investors hope that their respective banks will follow suit. But more importantly, the two earnings reports showed the major trends for the quarter and addressed some investor concerns.

First off was revenue growth, with mortgage originations topping the list of areas to focus on. Both banks reported increased activity year over year, but the rise in interest rates caused a sequential drop in new loans. Bank of America will be watched closely in this segment because of its stated goal of commanding a higher percentage of the market share in home lending.

Best Stocks To Buy: Kraton Performance Polymers Inc (KRA)

Kraton Performance Polymers, Inc. engages in the production of styrenic block copolymers (SBCs) and other engineered polymers worldwide. The company offers highly-engineered synthetic elastomers that enhance the performance of various end use products by imparting flexibility, resilience, strength, durability, and processability. It also provides isoprene rubber products for use in the production of medical products, adhesives, tackifiers, paints, coatings, and photo-resistors; and isoprene rubber latex, a substitute for natural rubber latex that are used in surgical gloves and condoms. In addition, the company is involved in the development and commercialization of polyvinyl chloride alternatives for wire, cable, and medical applications; polymers for use in slush molding; and membrane polymers for use in water filtration and breathable fabrics. Further, it offers core commercial grades of SBCs; unhydrogenated SBCs, which are primarily used in paving and roofing, adhesive s, and sealants and coatings, as well as footwear applications; hydrogenated SBCs, which are used in soft touch and flexible materials, personal hygiene products, and automotive components; and compounds, other polymers, resins, oils, or fillers that are used in various consumer and industrial applications. Kraton Performance Polymers, Inc. markets its products through various channels, including direct sales force, marketing representatives, and distributors under the Kraton, Cariflex, and Nexar brand names. The company was formerly known as Polymer Holdings LLC and changed its name to Kraton Performance Polymers, Inc. in December 2009. Kraton Performance Polymers, Inc. is headquartered in Houston, Texas.

Best Stocks To Buy: Alimera Sciences Inc.(ALIM)

Alimera Sciences, Inc., a biopharmaceutical company, engages in the research, development, and commercialization of prescription ophthalmic pharmaceuticals. The company focuses on diseases affecting the back of the eye or retina. The company is developing ILUVIEN, an intravitreal insert in phase-3 clinical trials for the treatment of diabetic macular edema (DME), which is a disease of the retina that affects individuals with diabetes and could lead to severe vision loss and blindness. Its ILUVIEN insert designed to be inserted into the patient?s eye to release a daily dose of fluocinolone acetonide over an anticipated period of 24 to 36 months. The company also conducts phase-2 clinical trials on ILUVIEN for the treatment of the dry form of age-related macular degeneration (AMD), the wet form of AMD, and retinal vein occlusion. In addition, it conducts testing on two classes of nicotinamide adenine dinucleotide phosphate oxidase inhibitors. Further, the company develops I LUVIEN inserter, a custom insertion system for ILUVIEN. Alimera Sciences, Inc. was founded in 2003 and is headquartered in Alpharetta, Georgia.

Advisors' Opinion:

[By John Kell]
Specialty pharmaceutical firm pSivida Corp.(PSDV) said the U.S. Food and Drug Administration didn’t approve a treatment for an eye disease found in patients with diabetes. The company’s stock tumbled 47% to $2 premarket, while shares of Alimera Sciences Inc.(ALIM) were down 39% to $1.66, as the treatment is licensed and sold by Alimera in other markets.
[By Smith On Stocks]
This note focuses on the implications of the complete response letter (CRL) received by Alimera (ALIM) for Iluvien. This product was developed by pSivida (PSDV) but was partnered with Alimera. This report deals only with the investment significance for pSivida.

Best Casino Stocks To Own For 2014: Mill Bay Ventures Inc (MBV.V)

Mill Bay Ventures Inc., an exploration stage company, engages in the exploration and development of various mineral properties in Canada and the United States. It holds interests in the Valentine Mountain gold project located to the west of Victoria, British Columbia; E&E and DH gold claims project that consist of 26 mining claims located in Eureka County, Nevada; Golden Repeat claims project, which include 49 mining claims in Elko County, Nevada; and JDN claims project that comprises 27 mining claims located in Lander County, Nevada. The company is headquartered in Vancouver, Canada.

Best Stocks To Buy: Oriental Financial Group Inc.(OFG)

Oriental Financial Group Inc., a financial holding company, provides various banking and financial services to mid and high net worth individuals, and families, including professionals and owners of small and mid-sized businesses primarily in Puerto Rico. It operates in three segments: Banking, Wealth Management, and Treasury. The Banking segment offers commercial and consumer lending, saving and time deposit products, financial planning, and corporate and individual trust services. It also provides mortgage lending products that include the origination and purchase of residential mortgage loans. As of October 25, 2011, this segment operated 30 branches in Puerto Rico. The Wealth Management segment offers securities brokerage, trust services, retirement planning, insurance, pension administration, and other wealth management services. Its securities brokerage services include various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, sto cks, and bonds to retail and institutional clients. This segment also provides public offerings and private placements of debt and equity securities, underwriting, and merger and acquisition and financial restructuring advisory services. In addition, it engages in insurance agency services and administration of retirement plans in the United States, Puerto Rico, and the Caribbean. The Treasury segment is involved in various treasury related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, Puerto Rico government and agency obligations, structured credit investments, and money market instruments. The company was founded in 1964 and is based in San Juan, Puerto Rico.

Advisors' Opinion:

[By Marc Bastow]
Diversified financial services company OFG Bancorp (OFG) raised its quarterly dividend 33% to 8 cents per share, payable on Jan. to shareholders of record as of Dec. 31.
OFG Dividend Yield: 1.8%
[By Paul Ausick]
The third recommended multinational is another Puerto Rican bank, OFG Bancorp (NYSE: OFG). A recent dividend increase could indicate a share buyback for next year. The bank raised its EPS guidance in every quarter of 2013. This small cap bank closed at $16.82 on Friday in a 52-week range of $12.86 to $19.33. The Sterne Agee price target on the stock is $23.00, yielding a potential upside of almost 79%. The EPS estimate for 2014 is $2.05 and the stock�� forward multiple for 2014 is a low 8.3 from the firm while the consensus multiple is 9.45.

Best Stocks To Buy: 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 Ben Levisohn]
The Dow was weighed down by Nike, which fell 3% to $76.84 ahead of next week’s earnings, while United Health dropped 2.6% to $72.14 and Pfizer declined 2.2% to $30.65. Only five Dow components finished in the green, including Visa (V), which rose 3.1% to $205.66 after Mastercard’s (MA) big dividend/buyback/stock-slit announcement.
[By Sam Robson]
LONDON: Following reports that�Verizon Communications (NYSE: V ) �has hired advisors on a bid to buy out its stake in Verizon Wireless,�Vodafone (LSE: VOD ) (NASDAQ: VOD ) �soared in trading today, pushing 200p -- a height not previously seen since December 2001.

Best Stocks To Buy: Morgan Stanley Emerging Markets Fund Inc. (MSF)

Morgan Stanley Emerging Markets Fund, Inc. is a closed-ended equity mutual fund launched and managed by Morgan Stanley Investment Management Inc. It invests in the public equity markets across the global emerging markets. The fund invests in stocks of companies operating across diversified sectors. It makes its investments in companies across all market capitalizations. The fund benchmarks the performance of its portfolio against the MSCI Emerging Markets Free Index. Morgan Stanley Emerging Markets Fund Inc. was formed on November 1, 1991 and is domiciled in the United States.

Advisors' Opinion:

[By George Putnam, Editor, New Generation Research, Inc.]
Morgan Stanley Emerging Markets Fund (MSF) is not an index-based fund, and therefore, its portfolio managers have a lot of latitude.

Among their top ten holdings are a range of consumer and technology holdings, such as Samsung Electronics and Taiwan Semiconductor, as well as financials. At current prices, the fund is trading at a roughly 10.5% discount to its net asset value (NAV).

Steve Cohen, SAC Deny SEC Allegations

Last Friday, the SEC formally filed civil charges against Steven A. Cohen that could ultimately bar him from the financial industry. Today, the SEC scheduled Cohen's hearing, which will take place Aug. 26 at the SEC's D.C. headquarters, rather than a courtroom.

According to Bloomberg, the Wall Street billionaire has seen his SAC Capital Advisors group of hedge funds return a remarkable 25% per year since 1992, as Cohen himself was charging record 50% fees on the sizable profits each year.

The SEC isn't actually charging Cohen himself with insider trading or securities fraud; it claims only that Cohen failed to supervise underlings as they engaged in what the SEC claims was blatant insider trading. This is the first time the SEC has gone after Cohen directly; SAC Capital, however, has had a tough year with regulators, ponying up more than $600 million -- a record penalty -- in March to settle a separate SEC case claiming SAC traded using privileged information.

Top 10 Medical Stocks To Watch For 2014

After hearing testimony on Aug. 26, an administrative judge will issue a decision, which can then be appealed. The repercussions could be dire for Cohen, whom the SEC is seeking to "ban from the financial industry for life," according to Bloomberg. Lawyers for the hedge fund titan were quick to fire back against the SEC charges, circulating a memo on Monday to SAC employees that vehemently denied wrongdoing and called the claims "baseless," according to The Wall Street Journal, which obtained a copy of the detailed denial.

Friday, January 10, 2014

Novavax

Stocks of biotechnology companies that reach major inflection points tend to outperform for several years. And our top speculative idea is a company that made a major leap forward in 2013, suggests Jay Silverman, editor of The Medical Technology Stock Letter.

Novavax (NVAX) is executing its clinical plan with a clearly defined, and risk-adjusted, strategy. The firm is developing proprietary flu and RSV vaccines using their VLP technology.

There is no RSV vaccine and they are far ahead of any competition. NVAX's addressable markets are approximately $4 billion per year.

Over the past 18 months, the company started, and completed, seven trials—for flu, RSV, and pandemic flu vaccines (the latter which no one ascribes much value to). The data was either exceptional and/or breakthrough.

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In 2014, there will be multiple trials started, completed, presented, and published—leading to registration trials beginning, either by the end of the year, or 2015.

In particular, two larger studies are underway—a large Phase II RSV study, due in Q2:14, and a combination "respiratory vaccine" trial (combining the flu/RSV in one vaccine), expected to be completed by year-end. We believe this will be a disruptive, proprietary product that will attract the likes of big pharma.

The company is well funded—with roughly $150 million left in government contracts (for seasonal/pandemic flu and some RSV), plus ~$145 million in cash (no debt).

The CEO (Erck), CFO (Phillips), and CMO (Glenn) are a solid management team, well-experienced in their respective roles, and have a sound working chemistry and quiet confidence.

As the company has de-risked the RSV program with three successful trials in 2013, and moved closer to registration trials and eventual commercialization, we are raising our buy limit to $6 (from $3.50), with a target price of $13 (up from $8).

Subscribe to The Medical Technology Stock Letter here...

For More 2014 Top Stock Picks

Thursday, January 9, 2014

Different Patent, Same Story: Endeavor IP Catches Another Company With a Hand in the Cookie Jar (VRNG, ENIP, VHC)

While there's no denying that Vringo, Inc. (NASDAQ:VRNG) and VirnetX Holding Corporation (NYSEMKT:VHC) have made a big name for themselves - not to mention made big, even if uneven, gains for shareholder of VHC and VRNG - within the worked of intellectual property enforcement, bigger isn't always better. Smaller companies in the IP arena have a focus and flexibility that larger players like VirnetX and Vringo could never enjoy. Take, for instance, Endeavor IP Inc. (OTCBB:ENIP). This little patent owner may not look like much at first glance, but just ask the four organizations that have already entered licensing deals with ENIP and/or the four, well, now five companies that are currently litigating against Endeavor IP.... this little outfit packs a huge punch.

Endeavor IP currently owns (and this isn't a typo) three patents. It almost seems like a comical number compared to the hundreds, if not thousands, of patents owned between Vringo, Inc. and VirnetX Holding Corporation. Take a closer look at how many of those patents VRNG and VHC are actually making an effort to monetize though. It's only a handful, at best. The rest of their patent portfolios are wasted capital that may never even be reviewed. Endeavor IP Inc. is taking a different approach, however. It's only interested in intellectual property with high odds of enforcement success; it's not interested in spending money to buy patents by the dozens, if not hundreds, knowing most of them aren't even worth the paper they're printed on too.

It's a different idea to be sure, especially in the patent-enforcement world where investors tend to like quantity over quality. But, even in just the few months that ENIP has been actively pursuing patent royalties - or suing those organizations that have refused to pay what Endeavor IP is due - the little company has found huge success. Four companies are already agreed to pay royalties based on U.S. Patent No. 7,379,981 (the '981 patent), aka the "Wireless Communication Enabled Meter and Network" patent, which doesn't bode well for the other four companies that are fighting ENIP in court over the same patent rights.

Well, you can add a name to the list of litigants that are fighting something of a lost cause against Endeavor IP. Per today's news release, the company has filed suit against a utility company, though not for an unlawful violation of patent 7,379,981. The patent behind the new lawsuit is U.S. Patent No. 7,366,201 (the '201 patent), covering a "Remote Access Energy Meter System and Method." It's the first time this particular patent has been part of an enforcement effort, but considering Endeavor IP's experience in related intellectual property, the legal and philosophical winds are blowing favorably for ENIP and its shareholders.

Best Dividend Companies To Watch For 2014

A word of warning for those who are going to go hunting for a closer look at the patent being newly enforced here... the same patent number appears to have been assigned to a completely different patent; it's possibly a number assignment error. Whatever the case, a search for the name of the patent pulls up the right patent and description, or you can just go here and look at the official USPTO filings for yourself. Interested parties can also review the official complaint that got the legal ball rolling by going here. You'll notice the litigation actually started back on December 20th, but Endeavor IP decided to wait until now to say anything (probably not wanting the news to get lost in the holiday shuffle).

Regardless of the timing, current or prospective investors need to know that in the IP enforcement world, lawsuits are money... and rightfully so. While the now-five court cases will take months to complete, given that four organizations are already paying royalties for legal usage of a good portion the ENIP patent portfolio, investors have much to be encouraged about with the five current cases being made.

For more on Endeavor IP, visit the SCN research page here.

Wednesday, January 8, 2014

Fed minutes: More debate on tapering pace

Federal Reserve policymakers vigorously debated whether to begin tapering its economic stimulus last month, with some wanting to hold off and others preferring a more dramatic reduction, according to Fed meeting minutes released Wednesday.

At its December 17-18 meeting, the Fed agreed to trim its $85 billion in monthly bond purchases by $10 billion, citing recent improvement in the labor market and economy. The purchases are aimed at holding down interest rates and spurring economic and job growth.

In the end, all but one of the Fed's voting members — Boston Fed chief Eric Rosengren — signed onto the Fed's statement and decision.

"Most participants saw a reduction in the case of purchases as appropriate at this meeting," the minutes said. They considered it likely that the improvement in the economy and job market since the Fed began the bond-buying would be sustained, according to the minutes.

Fed minutes: Full text of Dec. 17-18 meeting minutes

First Take: Fed may not need escape hatch

In fact, many policymakers said the labor market's "progress to date had been meaningful." Since the Fed began the purchases of Treasury bonds and mortgage-backed securities in September 2012, the unemployment rate has fallen to 7% from 8.1% and monthly job growth averaged more than 200,000 from August through November.

But "several" policymakers "stressed that the unemployment rate remained elevated." And some "questioned whether slowing the pace of purchases at a time when inflation was running well below" the Fed's objective "was appropriate." Low inflation reflects a sluggish economy and could mean the economy is at risk of deflation, or falling wages and prices.

Several Fed officials wanted to "wait for additional information confirming sustained progress" toward the Fed's goal of "substantial improvement" in the labor market.

At the same time, "some" policymakers advocated "a larger reduction" and "future reductions that would bring the program to a close! relatively quickly." Some officials also proposed that the Fed lay out a more specific path for winding down the program, "thereby reducing uncertainty about" its trajectory.

The Fed emphasized that the pace of the tapering would depend on the course of the economy, but that the Fed likely would cut the purchases "in further measured steps at future meetings," assuming the economy continues to advance. At his post-meeting news conference, Fed Chairman Ben Bernanke indicated purchases could be reduced in increments of $10 billion and halted by the end of 2014.

The Fed also emphasized it would keep short-term interest rates near zero until "well past" the time unemployment reaches its 6.5% threshold. Stocks rallied on the Fed's brighter economic outlook and its assurances about short-term rates.

Top 5 Blue Chip Companies To Buy For 2014

At the meeting, some Fed officials argued for lowering the threshold to 6%, saying that would be a "clear signal" of their intentions "in light of recent labor market and inflation trends." They were particularly worried that investors would interpret the tapering as a signal that the Fed would increase its benchmark short-term rate earlier than anticipated, an assumption that would push up rates. Since the meeting, 10-year Treasury yields have risen relatively modestly from about 2.85% to about 3%.

But "a few others" said modifying the threshold "might be confusing and could undermine the credibility" of the Fed's guidance.

The Fed's concerns about rising rates were a big reason officials decided to lower its purchases only modestly, the minutes said.

Tuesday, January 7, 2014

Could Renewable Energy Lead to a 51st State?

North Dakota, South Dakota. North Carolina, South Carolina. For heaven's sake -- the North and the South. Americans sure do seem to like splitting up their states, and out in Colorado, some folks are talking about doing it again.

The reason some Coloradans want to split up their state is as old as America itself -- a distant government coming up with grand plans that it thinks are pretty keen, and telling the locals to pay for them.

According to news reports, there are at least three big reasons some residents of Colorado's Weld, Morgan, Logan, Sedgwick, Phillips, Washington, Yuma, and Kit Carson counties are considering leaving the fold. Some complain of new laws that would regulate how farmers raise their livestock. Others cite tightened state gun-control requirements in the wake of last year's Aurora shooting. But the one thing that really seems to be putting a burr under folks' saddles is a law just passed, that requires rural electric cooperatives in the state (the would-be seceders are predominantly rural communities) to get 20% of their power from "renewable resources" by 2020.

Dubbed the "Setting Renewable Energy Standards for Rural Colorado" law, this would double the previous target for renewables. According to local Weld County paper The Greely Tribune, it could cost consumers in the affected counties as much as $3 billion in higher electric bills.

Schadenfreude's in season
Not everyone's opposed to the law, necessarily. For example, Xcel Energy (NYSE: XEL ) is already working to expand its portfolio of wind-generated power in the state, and two years ago, it put into operation a 19-megawatt solar farm in cooperation with SunPower (NASDAQ: SPWR ) . As a so-called "investor-owned utility," Xcel is already subject to a target of 30% renewables use by 2020 -- so a law making its rural rivals hit a 20% target probably didn't upset Xcel all that much.

But Republican lawmakers in the state beg to differ. State Sen. Greg Brophy, for example, called the law "callous" and criticized it for imposing as much as a 2% annual increase in electricity rates upon rural taxpayers. "Utility bills will now increase on the very people who can least afford it," said the senator.

Republican Rep. Cory Gardner of Yuma, Colo., echoed the sentiment: "The people of rural Colorado are mad, and they have every right to be. ... I don't blame people one bit for feeling attacked and unrepresented by the leaders in our state."

"The stupidest thing I've seen in a long time."
But isn't talk of secession a bit of an overreaction? Especially when you consider that by capping electric rate increases at 2%, the law's basically saying rate payers can expect their average monthly electric bill to rise from $68.32 all the way up to ... $69.69? Larimer County Commissioner Steve Johnson isn't convinced. (Actually, his exact words were: "This is the stupidest thing I've seen in a long time. ... It's hard to believe that this isn't the dumbest thing I've heard of, certainly for this year.")

In at least one sense, he seems right. Getting permission to secede from a state isn't the easiest thing in the world to accomplish. First, county officials would have to get voter support to put the matter on the November ballot. Then, even if the voters of one or more counties agreed they'd like to secede, Colorado's legislature -- those are the folks who passed the laws everyone in the north is complaining about -- would have to approve secession. Then the U.S. Congress would have to agree to let them go as well, because according to Article 4 of the U.S. Constitution, creation of a new state, which would be America's 51st, requires "the Consent of the Legislatures of the States concerned as well as of the Congress."

In short, smart or stupid, forming a new state of North Colorado will be a thing easier said than done.

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10 Best Oil Stocks To Invest In 2014

Monday, January 6, 2014

Lithia Motors Expands With Three New Dealership Buys

Medford, Ore.-based Lithia Motors (NYSE: LAD ) may only be the ninth-biggest auto retailer in the U.S., but it's got high hopes.

On Monday after close of trading on the NYSE, Lithia announced that it has acquired the O'Brien Auto Group in Salem, Ore. O'Brien's stores, named BMW of Salem, Honda of Salem, and Volkswagen of Salem, do a combined $110 million in annual revenue. Lithia did not disclose how much it paid for the businesses.

CEO Bryan DeBoer did say, however, that he was "pleased to expand our presence in Lithia's home state of Oregon. These stores fit our strategy of seeking exclusive franchises in the markets we serve. The opportunity to deepen our relationship with manufacturer partners like BMW, Honda and Volkswagen is a key to achieving our acquisition growth objectives."

10 Best Safest Stocks To Invest In 2014

Analysts believe Lithia will grow its earnings by 25% per year over the next five years. Today's purchases bring it 3.2 percentage points closer to that goal (relative to the size of Lithia's total revenues before the purchases).

Sunday, January 5, 2014

Evensky, Friedman, Mellan at Think Retirement Income Conference

If you’re known by the company you keep, as an advisor you couldn’t be in better company than the fellow advisors and industry gurus who will gather in Boston starting Thursday morning, Oct. 10 for the Think Retirement Income conference. While we can’t pretend to be objective, Investment Advisor Editor-in-Chief John Sullivan has put together a dynamite program whose intent is to help advisors solve the retirement income puzzle, in large measure by learning from your peers.

The programming for this retirement planning conference with a difference was devised with the help of an all-star advisory board that includes folks like Harold Evensky, Greg Friedman, Charlie Farrell, Michael Kitces, Rob Francais and—well, the complete list is here. Many of these luminaries will sit on interactive roundtables during the show, that runs through midday Friday, Oct. 11, with other successful RIAs.

(Some seats are still available for the conference, being held at the Hyatt Regency Boston. You can register online here.)

The conference will be bookended by opening day keynote speaker Charles Ellis, the management consultant and author, who will share his thoughts on What It Takes: Seven Secrets of Success from the World’s Greatest Professional Firms, with the closing keynote delivered by the always enthusiastic and inspirational Tim Noonan of Russell Investments.

A number of other regular contributors to Investment Advisor and Research magazines and ThinkAdvisor will also be presenting, including Olivia Mellan, Ben Warwick, Philip Palaveev, Matt Greenwald, Bob Seawright, Gavin Morrissey, Ron DeLegge and Friedman.

Look for more preview coverage now and onsite coverage on ThinkAdvisor; the Twitter hashtag for the event will be #ThinkRetirement.

View the complete agenda here, and register for the conference here.

Saturday, January 4, 2014

Triangle Petroleum Misses on Both Revenue and Earnings

Triangle Petroleum (AMEX: TPLM) reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Triangle Petroleum missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. GAAP loss per share contracted.

Gross margins contracted, operating margins grew, net margins expanded.

Revenue details
Triangle Petroleum booked revenue of $22.0 million. The six analysts polled by S&P Capital IQ looked for a top line of $24.4 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $3.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.20. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.00 per share. GAAP EPS were -$0.20 for Q4 compared to -$0.34 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 60.6%, much worse than the prior-year quarter. Operating margin was -11.8%, much better than the prior-year quarter. Net margin was -37.7%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $33.1 million. On the bottom line, the average EPS estimate is $0.07.

Next year's average estimate for revenue is $212.8 million. The average EPS estimate is $0.64.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 87 members out of 90 rating the stock outperform, and three members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give Triangle Petroleum a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Triangle Petroleum is outperform, with an average price target of $9.33.

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Friday, January 3, 2014

Top High Tech Stocks To Watch For 2014

Private equity powerhouse Blackstone (NYSE: BX ) has agreed to acquire Credit Suisse's (NYSE: CS ) Strategic Partners secondary private equity business for an undisclosed sum, the company announced yesterday.

Strategic Partners has $9 billion in assets under management (AUM). At the rule-of-thumb valuation of 2% of AUM, this would suggest the business might have sold for $180 million or more -- but the parties are keeping mum on the precise dollar value for now.

What is known is that Credit Suisse has been implementing "strategic divestments" of some of its businesses since last summer, Strategic Partners among them.

Strategic Partners' business model involves buying secondary interests in private equity funds from other investors who already hold such interests. Since 2000, Strategic Partners has raised more than $11 billion of capital commitments, completed more than 700 transactions, and acquired more than 1,400 underlying limited partnership interests from other parties. Its performance has been in the top quartile among its peers. Strategic Partners is staffed by 26 secondary investment professionals, and headed by Stephen Can and Verdun Perry.

Top High Tech Stocks To Watch For 2014: Western Copper Corp (WRN.TO)

Western Copper and Gold Corporation, an exploration stage company, engages in the exploration and development of mineral properties in Canada. It holds a 100% in the Casino property located northwest of Whitehorse in Yukon, Canada. The Casino property holds porphyry gold, copper, and molybdenum resources. The company was formerly known as Western Copper Corporation and changed its name to Western Copper and Gold Corporation in October 2011. Western Copper and Gold Corporation was founded in 2006 and is headquartered in Vancouver, Canada.

Top High Tech Stocks To Watch For 2014: RDA Microelectronics Inc.(RDA)

RDA Microelectronics, Inc., a fabless semiconductor company, designs, develops, and markets radio-frequency and mixed-signal semiconductors for cellular, broadcast, and connectivity applications. Its products include power amplifiers, transceivers and front-end modules, FM radio receivers and transmitters, set-top box tuners, analog mobile television receivers, walkie-talkie transceivers, LNB satellite downconverters, and Bluetooth system-on-chips for mobile handsets. The company?s products also comprise GSM/EDGE power amplifier modules, GSM transceivers, TD-SCDMA transceivers, SCDMA transceivers, 3G switch modules, GSM power amplifier and switch modules, PHS transceivers, TD-SCDMA/GSM dual-mode transceivers, and radio frequency switches; DVB-T tuners, DVB-S and DVB-S2 satellite tuners, analog mobile television receiver system-on-chips, and FM radio receivers with radio data system; and Bluetooth + FM system-on-chips for mobile handsets and walkie-talkie transceivers for professional applications. Its products are incorporated into mobile handsets, set-top boxes, MP3 players, and other wireless and consumer electronic devices. RDA Microelectronics sells its products through distributors in the People?s Republic of China, southeast Asia, India, the Middle East, Africa, the Russian Federation, and Latin America. The company was founded in 2004 and is headquartered in Shanghai, the People?s Republic of China.

Advisors' Opinion:

[By Luke Jacobi]
RDA Microelectronics (NASDAQ: RDA) shot up 11.96 percent to $15.54 after the company received a non-binding acquisition proposal.

Finish Line (NASDAQ: FINL) got a boost, shooting up 9.02 percent to $24.41 after the company reported a 6.1 percent rise in its fiscal second-quarter earnings.
[By Jake L'Ecuyer]
RDA Microelectronics (NASDAQ: RDA) was also up, gaining 11.12 percent to $17.28 after the company announced the receipt of $18.00/ADS acquisition proposal from Tsinghua Unigroup.
[By Anna Prior]
RDA Microelectronics Inc.(RDA) agreed to be acquired by a unit of Chinese state owned Tsinghua Holdings Co. in a deal estimated at $910 million. RDA Microelectronics shareholders will receive $18.50 per American depositary share, a 5.5% premium to Friday’s close.

Top 5 Value Stocks To Watch For 2014: Aeropostale Inc (ARO)

Aeropostale, Inc., (Aeropostale), incorporated on September 1, 1995, is a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men through its Aeropostale stores and 4 to 12 year-old kids through its P.S. from Aeropostale stores. P.S. from Aeropostale products can be purchased in P.S. from Aeropostale stores, in certain Aeropostale stores, and online at www.ps4u.com. As of January 28, 2012, it operated 986 Aeropostale stores, consisting of 918 stores in 50 states and Puerto Rico, 68 stores in Canada, as well as 71 P.S. from Aeropostale stores in 20 states. The Company designs, sources, markets and sells all of its own merchandise. In addition, pursuant to a licensing agreement, it operated 14 Aeropostale and P.S. from Aeropostale stores in Middle East and South East Asia. During March 2011, it announced that it had signed a second licensing agreement. The licensee to this agreement is focused to open approximately 30 stores in stores in Turkey over the next five years. In November 2012, the Company acquired online women's fashion footwear and apparel retailer GoJane.com (GoJane).

P.S. from Aeropostale offers casual clothing and accessories focusing on kids between the ages of 4 and 12. It�� P.S. from Aeropostale products are sold only at its stores and online through its e-commerce Websites, www.ps4u.com and www.aeropostale.com. The Company operates three street level stores in the New York City area. It also has a19,000 square foot Aeropostale store in the Times Square section of New York City. It offers both Aeropostale and P.S. from Aeropostale products in the Times Square store.

Advisors' Opinion:

[By Lisa Levin]
Aeropostale (NYSE: ARO) surged 17.19% to $10.09. The volume of Aeropostale shares traded was 970% higher than normal. Private equity firm Sycamore Partners bought a 7.96% stake in Aeropostale.
[By Paul Ausick]
DJIA stocks on the move: Lions Gate Entertainment Corp. (NYSE: LGF) hit a new 52-week high of $35.13 on Wednesday. Trina Solar Ltd. (NASDAQ: TSL) rose more than 15% after posting better than expected earnings on Tuesday, Aeropostale Inc. (NYSE: ARO) put up a new 52-week low of $11.40, and another teen retailer, and American Eagle Outfitter Inc. (NYSE: AEO) also put up a new low of $14.33.
[By Jeremy Bowman]
What: Shares of Aeropostale (NYSE: ARO ) finished down 10% Friday after the teen-focused clothing retailer posted a weak quarterly earnings report.

Top High Tech Stocks To Watch For 2014: Toromont Industrie Com Stk Npv (TIH.TO)

Toromont Industries Ltd. provides specialized capital equipment and customer support to customers and industries in various markets in Canada, the United States, and internationally. The company operates in two segments, Equipment Group and CIMCO. The Equipment Group segment operates as a Caterpillar dealer. This segment sells, rents, and services mobile equipment for manufacturers, engines used in various applications; and sells complementary and related products, parts, and services, as well as distributes replacement parts for Caterpillar products and other equipment lines, and remanufactures and repairs engines and engine components. It offers various products comprising earthmoving and construction equipment, paving machines, mining and forestry equipment, and diesel engines for trucks, products for industrial and marine applications, and power generation equipment. In addition, this segment provides mobile equipment rental and compact construction equipment purchase solutions, including commercial and industrial machines and tools, lift systems, concrete-related building materials, and propane; and engages in the engineering, construction, commissioning, and operation of energy plants fuelled by natural gas, landfill gas, biogas, and diesel fuel in hospitals, district energy systems, and industrial processes. The CIMCO segment is involved in the design, engineering, fabrication, and installation of industrial refrigeration systems for food, dairy, cold storage, and beverage segments; and recreational refrigeration systems for artificial ice surfaces used in various sporting activities, such as hockey, curling, skating, and other unusual ice surfaces. Toromont Industries Ltd. was founded in 1961 and is based in Concord, Canada.

Top High Tech Stocks To Watch For 2014: Alimera Sciences Inc.(ALIM)

Advisors' Opinion:

[By John Kell]
Specialty pharmaceutical firm pSivida Corp.(PSDV) said the U.S. Food and Drug Administration didn’t approve a treatment for an eye disease found in patients with diabetes. The company’s stock tumbled 47% to $2 premarket, while shares of Alimera Sciences Inc.(ALIM) were down 39% to $1.66, as the treatment is licensed and sold by Alimera in other markets.
[By Smith On Stocks]
This note focuses on the implications of the complete response letter (CRL) received by Alimera (ALIM) for Iluvien. This product was developed by pSivida (PSDV) but was partnered with Alimera. This report deals only with the investment significance for pSivida.

Top High Tech Stocks To Watch For 2014: Cobham(COB.L)

Cobham plc engages in the development, delivery, and support of aerospace and defence technology and systems worldwide. The company operates in four segments: Cobham Aerospace and Security, Cobham Defence Systems, Cobham Mission Systems, and Cobham Aviation Services. The Cobham Aerospace and Security segment provides avionics and communication equipment, law enforcement and national security solutions, and satellite communication equipment for land, sea, and air applications. The Cobham Defence Systems segment offers technology for network centric and intelligence operations, as well as enables information to move around the digital battlefield with solutions for people and systems to communicate on land, sea, and air. The Cobham Mission Systems segment provides safety and survival systems; re fuelling and mission systems for jets, transport aircraft, and rotor craft; and remote controlled robots and bomb disposal vehicles for homeland security and military applications. C obham Aviation Services segment delivers aviation services for military and civil customers through military training, mission flight operations, outsourced commercial aviation, and aircraft engineering. The company serves original equipment manufacturers, government agencies, contractors, airlines, and other commercial customers. Cobham plc was founded in 1934 and is based in Wimborne, the United Kingdom.