Saturday, November 30, 2013

Hot Casino Stocks To Buy For 2014

In the following video, Fool contributor Matt Thalman discusses a few different reasons he believes investors should stay away from the casino and online gambling operators until online gambling revenues are proven over the next few quarters.

One front-runner in the online poker scene is Zynga (NASDAQ: ZNGA  ) , a company that Matt believes would be better off in the long run if it made one strategic move.

To find out what that is, and for a few reasons investors should stay on the sidelines, click on the video.

More Foolish insight
For many companies, successfully capitalizing on a booming Chinese economy is like winning the jackpot. That's indeed the case for gaming company Las Vegas Sands, which made a big bet on Macau gaming about a decade ago that's paid off in spades. The company is now looking to spread its empire further, but will it be able to replicate its prior successes? Learn about all these opportunities, and the risks they pose, in our premium report on Las Vegas Sands. Be sure to claim your copy today by clicking here.

Hot Casino Stocks To Buy For 2014: (XTRN)

Las Vegas Railway Express Inc. focuses to re-establish a conventional passenger train service between the Las Vegas and Los Angeles metropolitan areas. It plans to establish a ?Vegas-style? passenger train service. The company is based in Las Vegas, Nevada.

Hot Casino Stocks To Buy For 2014: MGM Resorts International(MGM)

MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Travis Hoium]

    MGM Resorts (NYSE: MGM  ) doesn't have the flashy management that's made gaming companies famous, and CEO James Murren has taken a quieter role in the industry. But he has guided the company through the financial crisis and now has a huge growth opportunity on Cotai. But he isn't the only person investors need to watch.�

  • [By Travis Hoium]

    Cotai continues to be the growth engine of Macau. The Macau Peninsula, where Wynn Resorts (NASDAQ: WYNN  ) and MGM Resorts (NYSE: MGM  ) are located, have been holding steady but the growth is on Cotai, and that's why investors are willing to pay a premium for Melco Crown and Las Vegas Sands.

Top Gold Companies To Invest In 2014: Boyd Gaming Corporation(BYD)

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Travis Hoium]

    Even if a federal bill does pass, there's no guarantee Zynga would win. Online poker is all about gaining a critical mass of users, and it's a uphill battle. MGM Resorts (NYSE: MGM  ) and Boyd Gaming (NYSE: BYD  ) have already partnered with bwin.party for a U.S. online gaming venture. Bwin.party is one of the largest real-money online poker companies in the world, and with PokerStars likely shut out of the U.S. in the near future, this would be a formidable opponent. Caesars Entertainment (NASDAQ: CZR  ) has also had its eyes on online poker for some time, and with the World Series of Poker brand, it has a big draw for players. Caesars thinks so much of online poker that it's spinning off its "growth" assets, and online games are a key part of the new company.

  • [By Travis Hoium]

    Earnings from Boyd Gaming (NYSE: BYD  ) surprised investors last week, but there's still a lot of fundamental weakness for the company. Revenue is declining across the country as more supply is added to the market, and the only way to grow is through acquisitions. The Fool's Erin Miller sat down with Travis Hoium to see how to play the gaming market now.�

  • [By M. Joy, Hayes]

    Industry trends
    Other businesses in the industry also have copious related-party transactions. In particular, founder-led businesses Wynn Resorts (NASDAQ: WYNN  ) and Boyd Gaming (NYSE: BYD  ) �reported a large number of such transactions in their 2013 proxies, including employment of relatives, employee use of company services, and employee use of company-owned property. MGM Resorts International (NYSE: MGM  ) , on the other hand, didn't have to report any related-party transactions in its 2013 proxy.

Hot Casino Stocks To Buy For 2014: Umax Group Corp (UMAX)

Umax Group Corp., incorporated on March 21, 2011, is a development-stage company. The Company focuses to develop and distribute its product to the arcade and entertainment industry. The Company�� products include Rocket Launch, is Strength testing game which allows players to test their pushing/ throwing strength; Space Hockey, is a two player hockey game - each player must score as many as possible goals and Boxer, is a Simple punch testing game: insert coin/token/bill, press start button, hit the punch bag, wait for result, and try to beat opponent�� score or high score.

As of April 30, 2013, the Company had no revenues. The Company has developed its business plan, and executed exclusive distribution contract GEO a private enterprise, where it engages GEO as an independent contractor for the specific purpose of developing, manufacturing and supplying games for the Company.

Hot Casino Stocks To Buy For 2014: Penn National Gaming Inc.(PENN)

Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.

Advisors' Opinion:
  • [By Paul Ausick]

    Stocks on the Move: BlackBerry Ltd. (NASDAQ: BBRY) is down 16.4% at $6.50 after announcing that no buyout bid will be forthcoming. Penn National Gaming Inc. (NASDAQ: PENN) is down 76.7% at $13.75 after spinning-off its real-estate holdings into a REIT. Suntech Power Holdings Co. Ltd. (NYSE: STP) is up 15.5% at $1.53 following the acquisition of its major operations in Wuxi.

Hot Casino Stocks To Buy For 2014: Wynn Resorts Limited(WYNN)

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes approximately 22 food and beverage outlets comprising 5 dining restaurants; 2 nightclubs; 1 spa and salon; 1 Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; meeting space; and foot retail promenade featuring boutiques. Wynn Las Vegas casino resort also features approximately 147 table games, 1 baccarat salon, private VIP gaming rooms, 1 poker room, 1,842 slot machines, and 1 race and sports book. It also owns and operates an Encore at Wynn Las Vegas resort, a destination casino resort located adjacent to Wynn Las Vegas that features a 2,034 all-suite hotel, as well as a casino with 95 table games, 1 sky casino, 1 baccarat salon, private VIP gaming rooms, and 778 slot machines. In addition, the company operates Wyn n Macau casino resort located in the Macau Special Administrative Region of the People?s Republic of China. Wynn Macau casino resort features approximately 595 hotel rooms and suites, 410 table games, 935 slot machines, 1 poker room, 1 sky casino, 6 restaurants, 1 spa and salon, lounges, meeting facilities, and retail space featuring boutiques. Further, it operates Encore at Wynn Macau resort located adjacent to Wynn Macau. Encore at Wynn Macau resort features approximately 410 luxury suites and 4 villas, as well as casino gaming space, including a sky casino consisting of 60 table games and 80 slot machines, 2 restaurants, 1 luxury spa, and retail space. The company was founded in 2002 and is based in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Travis Hoium]

    Cotai is no doubt the hottest area of Macau for gaming and Wynn Resorts' (NASDAQ: WYNN  ) results from the first quarter are another data point showing one of the downsides to this trend. Macau's gaming revenue overall was up 14.8% in the first quarter, but Wynn's revenue was only up 4.4% because its only resort is on the Macau Peninsula. Casinos won't average 14.8% growth across the board because Las Vegas Sands' (NYSE: LVS  ) Sands Cotai Central added some capacity vs. last year but we definitely see gaming dollars moving to Cotai, which hurts Wynn.

  • [By Jon C. Ogg]

    Wynn Resorts Ltd. (NASDAQ: WYNN) was downgraded to Neutral from Outperform, but the price target was raised to $160 from $149, at Credit Suisse.

    Zoetis Inc. (NYSE: ZTS) was raised to Overweight from Equal Weight at Morgan Stanley.

Hot Casino Stocks To Buy For 2014: Pinnacle Entertainment Inc.(PNK)

Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Ben Levisohn]

    Pinnacle Entertainment (PNK) has gained 56% this year; Las Vegas Sands (LVS) has climbed 38%. And Deutsche Bank has nice things to say about both today.

    Bloomberg

    First Pinnacle. Deutsche Bank’s Carlo Santarelli ponders the stock’s big move and comes away still seeing value in its shares. He writes:

    When we upgraded PNK in April, our thesis centered on the FCF strength of the combined entities [Pinnacle completed its acquisition of Ameristar Casinos on Aug. 14], a handful of favorable catalysts, easing regional gaming comps, & an inexpensive relative valuation. Given the shares’ sizeable move since then, we believe it is worth revisiting the investment case. Post the announcement of several asset sales and the closing of the transaction, we are adjusting our estimates, raising our PT to $30 from $24, and maintaining our bullish view at current levels given what we still believe to be an attractive free cash flow valuation, meaningful potential synergy realization beyond the $40 mm of announced benefits, and a free option on a lagging regional recovery.

    Santarelli also revisited Las Vegas Sands and there too, he likes what he sees. He writes:

    With…LVS at [a share price level] that have been challenging to break from over the last year plus, we believe this time is different and hence we see continued upward momentum…In the case of LVS, we see; 1) meaningful mass market strength continuing through year end, setting the stage for upward company and market estimate revisions for 2014, 2) continued cash flow appreciation and capital returns serving as downside protection and positive catalysts, and 3) continued shared gains, largely driven by table optimization and mass market strength, driving both estimates and sentiment.

    He also likes Wynn Resorts (WYNN), despite its 34% gain.�Santarelli writes:

    As for WYNN, we believe near-term estimates continue to take a back seat to capital return

  • [By Dan Radovsky]

    Pinnacle Entertainment (NYSE: PNK  ) has reached an agreement in principle with the Bureau of Competition of the Federal Trade Commission that would allow the company to complete its proposed acquisition of Ameristar Casinos (NASDAQ: ASCA  ) , Pinnacle announced today.

Friday, November 29, 2013

Retail shares end mixed amid Black Friday hype

Despite the traditional Black Friday hype, retail shares ended mixed Friday as investors reacted to early results on the first official day of the holiday shopping season.

With early sales data on Thanksgiving sales seeping out and shoppers venturing out in the wee hours Friday to snatch deals on flat-screen TVs, tablets, electronic gadgets and other deals, investors' initial reaction was to push retail shares up. But they were not buying all retail stocks with reckless abandon, suggesting that they are not betting on a record-breaking sales year.

STOCKS FRIDAY: How markets are doing

Heading into the shopping season, the National Retail Federation was expecting sales to be up 3.9%, v. 3.4% a year ago. Early reports from Wal-Mart, Amazon.com and other retailers pointed to heavy traffic as shoppers sought out the perfect deal. Early indications point to strong online sales, with Thanksgiving sales up 19.7% over last year, according to IBM Digital Analytics.

If the gains today don't seem earth-shattering, consider that the consumer discretionary sector in the Standard & Poor's 500 was up nearly 38% heading into today's trading session, far exceeding the overall index gain of 26.7%.

Here are how some of the nation's most high-profile retail stocks fared for the day (with the markets' abbreviated session ending at 1 p.m. ET Friday):

• Wal-Mart. The world's biggest retailer, which opened at 6 p.m. on Turkey Day, closed up 0.1% to $81.01.

• Target. The popular retailer, which opened at 8 p.m. on Thanksgiving, slipped 0.75% to $63.93.

• Macy's. The department store giant, which hosted the popular Macy's Thanksgiving Day Parade, ended down 0.5% to $53.26. Its struggling competitor J.C. Penney, the worst performing stock in the S&P 500 heading into Friday with a drop of 48.9%, saw shares jump 1.1% to $10.19.

• Amazon.com, the online retail giant, jumped 1.8% to $393.62. And eBay, another online behemoth, saw its shares spring up 2.5% to $50.52.!

• Tiffany's, the luxury retailer, finished up 1.1% to $89.14.

• Home Depot, the home-improvement retailer, lost 0.8% to $79.18. And competitor Lowe's fell 0.9% to $47.48.

One caveat: history shows that retail shares peak around Thanksgiving and suffer in the final month of the year.

Follow Adam Shell on Twitter: @adamshell.

Thursday, November 28, 2013

Tesla Model S gets Consumer Reports' recommendation

tesla model s

The Tesla Model S earned 99 out of a possible 100 points in Consumer Reports' tests.

NEW YORK (CNNMoney) In May, Consumer Reports called the Telsa Model S the best car it had ever tested, but it still wouldn't recommend it.

That was because the magazine hadn't yet gathered enough reliability data on the still-new model. Well now the survey data is in, and Consumer Reports has officially given the Tesla (TSLA) Model S the sought-after red checkmark.

The Tesla Model S is now Consumer Reports Recommended.

The Model S isn't perfect, according to its owners, but none have reported any problems with the car's battery-powered electric drive system or with the enormous iPad-like touch screen inside the cabin.

The problems that have been reported have had to do with things like squeaks, rattles and malfunctioing sunroofs and door locks.

Overall, the reliability rating for the Model S was average, according to the magazine. But that rating, combined with the car's stellar test scores, was enough to earn the recommendation.

The Model S earned a score of 99 out of a possible 100 in the magazine's performance tests, which ties for the highest score any car has ever received. It would have scored even higher except for the fact that it has to be recharged on long trips, Jake Fisher, head of auto testing for Consumer Reports, said in May. Fisher called the car's performance "off the charts."

Depending on price, the Model S has a driving range of between 208 and 265 miles. A full charge takes about six hours from an ordinary 240 volt outlet, according to Tesla. The car can be charged much more quickly at one of the "supercharger" stations Tesla has installed along various highways in the country. Tesla is also rolling out quick battery swapping capability at some of those stations.

Hot Undervalued Stocks For 2014

The Model S has already won awards from car magazines like Motor Trend and Automobile, but Consumer Reports is widely regarded as being the most influential magazine among car shoppers. Consumer Reports, published by nonprofit Consumer's Union, purchases all the cars it tests and does not accept paid ads.

Tesla's next vehicle is supposed to be the Tesla Model X crossover SUV but, after that, the company's plans call for a less expensive car and, possibly, other products.

Monday, November 25, 2013

A new way for advisers to attract clients?

Nicholas W. Stuller of AdviceIQ Nicholas W. Stuller of AdviceIQ

When Nick Stuller was a financial adviser in the 1980s, he relied on cold calls and his reputation in the community to attract new business.

Now, it's more difficult for advisers, he said.

“It was a different era,” he said. “As a young adviser back then, it was very different.”

Enter AdviceIQ, the business launched by Mr. Stuller and his team a year and a half ago. The site currently features profiles and rankings of about 2,600 financial advisers from 27 broker-dealer firms, detailing their assets under management, client characteristics, mission and contact information. It couples that with a blend of fact-checked articles written by financial advisers that are syndicated daily to 12 media sites, including Morningstar, The Motley Fool and Forbes.

Within the next year, Mr. Stuller, AdviceIQ's CEO, said the company aims to build its client base to 7,000 advisers, bring on an additional 25 media syndication partners and increase the number of articles it publishes daily from three to 10.

Creating a profile on the site costs an adviser's firm $1,000 a year. For the moment, Mr. Stuller said the emphasis of the website is on helping advisers create a digital brand and increase their online presence, rather than generating leads.

10 Best Heal Care Stocks To Watch For 2014

“Investors have never had an objective place to learn about advisers,” he said. “On the adviser side, they have a hard time getting their name out in a way that is compliant and doesn't break the bank.”

Other sites with similar functions include BrightScope and WalletHub.

Eve Kaplan, owner of Kaplan Financial Advisors, is one adviser who is using the site to get her name in front of more potential clients by writing for it. She also continues to write financial advice stories for her local newspaper in New Jersey, which helps her attract older clients, and spends time writing for other online platforms. These outlets are another way advisers can reach the public, although it can be difficult to track the amount of traction her online stories gain, she said.

“There is this whole idea that if you're out there on the Internet, people will find you,” she said. “! Sometimes I think it's true, sometimes it's not … I don't think it's hard to get your name out there. Whether it's actually given any attention, that's hard to say.”

Jason Lina, lead adviser at the Resource Planning Group, said he has known about AdviceIQ since it launched and began utilizing his profile and writing for the website about six months ago. So far, he's had three articles published on topics related to the new health care laws. He said he hasn't checked his firm's website analytics to see if his posts have helped generate traffic, but he suspects that they have.

“You didn't see my name on Morningstar every day before that,” he said. “Websites like this, the idea is that they help adv

Saturday, November 23, 2013

10 Best Dividend Stocks To Watch For 2014

LONDON -- The shares of�Sage� (LSE: SGE  ) rallied 3% to 350 pence during early London trade this morning after the financial software company reported a 7% jump in six-month pre-tax profits to 185 pounds.

Sage -- which develops accountancy software for smaller businesses -- proposed a 200 million pound special dividend, worth 17 pence per share. The company also recorded an exceptional accounting charge of 196 million pounds relating to the disposal of�"non-core products."

Sage has spent several years shifting toward a software-subscription business model, which now represents over 70% of the company's sales. Recurring revenue from subscriptions expanded 6%, while one-off software license sales declined 3%. Sage's total revenue for the period improved 5% to 708 million pounds.

Sage chief executive Guy Berruyer commented:

We delivered good growth in recurring revenues, in line with our strategy. We continue to drive significant change through the business, which is delivering results in the face of continued macroeconomic headwinds.

10 Best Dividend Stocks To Watch For 2014: Simon Property Group Inc.(SPG)

Simon Property Group, Inc. is a real estate investment trust. The firm engages in investment, ownership, and management of properties. It invests in the real estate markets across the globe. The firm?s portfolio includes regional malls, premium outlet centers, the mills, community / lifestyle centers, and international properties. Simon Property Group was founded in 1960 and is based in Indianapolis, Indiana.

Advisors' Opinion:
  • [By Michael Lewis]

    Another tax-law provision gives favorable tax status to real-estate investment trusts. REITs make investments in real estate-related assets, and they're required to pay out almost all their income to their shareholders annually. Simon Property Group (SPG) is one of the biggest REITs, focusing on shopping malls and paying a 3 percent yield. But other specialty areas of the REIT universe pay much higher dividends, with REITs like Annaly Capital (NLY) that invest in mortgage-backed securities topping the list with double-digit percentage yields.

  • [By Jon C. Ogg]

    BMO Capital Markets made a REIT switch in its coverage: It raised Simon Property Group (NYSE: SPG) to Outperform from Market Perform based on an attractive entry point now that shares are down 20% or so from the highs, and it downgraded General Growth Properties (NYSE: GGP) to Market Perform from Outperform based on its relative valuation gap having dwindled.

  • [By GuruFocus]

    Simon Property Group Inc (SPG) Reached the 52-Week Low of $147.50 The prices of Simon Property Group Inc (SPG) shares have declined to close to the 52-week low of $147.50, which is 21.5% off the 52-week high of $182.45. Simon Property Group Inc is owned by 11 Gurus we are tracking. Among them, 5 have added to their positions during the past quarter. 5 reduced their positions.

10 Best Dividend Stocks To Watch For 2014: Medallion Financial Corp.(TAXI)

Medallion Financial Corp., through its subsidiaries, operates as a specialty finance company in the United States. The company engages in originating, acquiring, and servicing loans that finance taxicab medallions and various types of commercial businesses. It offers commercial loans to finance the purchase of the equipment and related assets necessary to open a new business, or the purchase or improvement of an existing business; asset-based loans to small businesses; and secured mezzanine loans to businesses in various industries, including manufacturing and various service providers. The company also raises deposits; originates consumer loans for the purchase of recreational vehicles, boats, motorcycles, trailers, and hearing aids; and conducts other banking activities. In addition, it provides other debt, mezzanine, and equity investment capital to companies in various industries. The company was founded in 1995 and is headquartered in New York, New York.

10 Best Low Price Stocks To Buy Right Now: Spectra Energy Corp(SE)

Spectra Energy Corp, through its subsidiaries, engages in the ownership and operation of a portfolio of complementary natural gas-related energy assets in the United States and Canada. The company operates in four segments: U.S. Transmission, Distribution, Western Canada Transmission and Processing, and Field Services. The U.S. Transmission segment engages in the transportation and storage of natural gas for customers in various regions of the northeastern and southeastern United States and the Maritime Provinces in Canada. Its natural gas pipeline systems consist of approximately 19,000 miles of transmission pipelines; and storage capacity comprises 305 billion cubic feet in the United States and Canada. The Distribution segment engages in the natural gas storage, transmission, and distribution in Western Canada and the United States. This segment has approximately 37,600 miles of distribution main and service pipelines serving approximately 1.3 million residential, comme rcial, and industrial customers. The Western Canada Transmission and Processing segment provides natural gas transportation, and gas gathering and processing services; and provides services to natural gas producers to remove impurities from the raw gas stream including water, carbon dioxide, hydrogen sulfide, and other substances. This segment serves local distribution companies, end-use industrial and commercial customers, marketers, and exploration and production companies. The Field Services segment gathers and processes natural gas, as well as fractionates, markets, and trades natural gas liquids. It engages in gathering raw natural gas through gathering systems located in nine natural gas producing regions consisting of the Mid-Continent, Rocky Mountain, east Texas-north Louisiana, Barnett Shale, Gulf Coast, South Texas, Central Texas, Antrim Shale, and Permian Basin. The company is headquartered in Houston, Texas.

Advisors' Opinion:
  • [By Rich Duprey]

    The MLP was formed by Spectra Energy� (NYSE: SE  ) , and owns interests in natural gas transportation and storage assets in�theU.S., including more than 3,500 miles of transmission and gathering pipelines and approximately 57 billion cubic feet of natural gas storage.

  • [By Justin Loiseau]

    Florida gets its gas fill
    NextEra Energy (NYSE: NEE  ) announced this week that it is investing around $3 billion with Spectra Energy (NYSE: SE  ) to bring Florida its third major natural gas pipeline. According to NextEra, Florida's current pipelines are near capacity, making its new project crucial to Florida -- and profitable for NextEra.

  • [By Rich Duprey]

    Spectra Energy's (NYSE: SE  ) �1,717-mile Express-Platte System�is one of just three major pipeline systems moving crude oil from western�Canada�to U.S. refining markets in the Rockies area and the Midwest.

  • [By Justin Loiseau]

    NextEra Energy (NYSE: NEE  ) announced Friday that it's teaming up with Spectra Energy (NYSE: SE  ) to improve Florida's natural gas infrastructure. NextEra subsidiary Florida Power & Light had previously put out a request for proposals to improve its offerings, and this project beat out the next closest idea by almost $600 million.

10 Best Dividend Stocks To Watch For 2014: Paragon Shipping Inc.(PRGN)

Paragon Shipping Inc. provides shipping transportation services worldwide. The company engages in the ocean transportation of various drybulk cargoes and containers. Its fleet consists of 11 drybulk vessels with a total carrying capacity of 747,994 dwt. The company was founded in 2006 and is based in Voula, Greece.

Advisors' Opinion:
  • [By Roberto Pedone]

    Another under-$10 name shipping player that's starting to move within range of triggering a big breakout trade is Paragon Shipping (PRGN), which is engaged in transporting drybulk cargoes, including such commodities as iron ore, coal, grain and other materials along shipping routes worldwide. This stock has been on fire so far in 2013, with shares up sharply by 114%.

    If you take a look at the chart for Paragon Shipping, you'll notice that this stock just recently took out its 50-day moving average of $4.19 a share with strong upside volume. Shares of PRGN are showing relative strength today, despite the overall market weakness, which shows this stock is in strong demand at current levels. This move is now starting to push shares of PRGN within range of triggering a big breakout trade

    Market players should now look for long-biased trades in PRGN if it manages to break out above some near-term overhead resistance at $4.90 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 25,811 shares. If that breakout triggers soon, then PRGN will set up to re-test or possibly take out its 52-week high at $5.70 a share. If that level gets taken out with volume, then PRGN could easily tag its next major overhead resistance levels at $7 to $8.35 a share.

    Traders can look to buy PRGN off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $4.19 a share, or below its 200-day moving average at $3.74 a share. One can also buy PRGN off strength once it clears $4.90 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point. I would add to either position once PRGN takes out its 52-week high at $5.70 a share with strong upside volume flows.

10 Best Dividend Stocks To Watch For 2014: Oneida Financial Corp.(ONFC)

Oneida Financial Corp. operates as the bank holding company for The Oneida Savings Bank that provides community banking services primarily in Madison and Oneida Counties in New York, and surrounding counties. Its deposit products include savings accounts, interest-bearing demand accounts, non interest-bearing checking accounts, money market accounts, certificates of deposit, and individual retirement accounts. The company?s loan products portfolio comprises one-to-four family residential and commercial real estate loans, consumer loans, and commercial business loans. It also offers trust and investment services, including fiduciary services for trusts and estates, money management, and custodial services. In addition, the company sells insurance; provides employee benefits consulting services; and offers risk management services to help mitigate and prevent work related injuries. It operates through 10 full service branch offices in Madison and Oneida Counties; and 1 full service branch office in Onondaga County in New York. The company was founded in 1866 and is based in Oneida, New York. Oneida Financial Corp. is a subsidiary of Oneida Financial MHC.

10 Best Dividend Stocks To Watch For 2014: British/Swiss Franc(UN)

UNILEVER N.V. operates as a fast-moving consumer goods company in Asia, Africa, Europe, and the Americas. It offers personal care products, including skin care and hair care products, deodorants, and oral care products under the brand names of Axe, Brylcreem, Dove, Fissan, Lifebuoy, Lux, Pond's, Radox, Rexona, Signal & Close Up, Simple, St Ives, Sunsilk, TRESemm� Vaseline, and VO5. The company also provides home care products comprising laundry tablets, powders and liquids, soap bars, and various cleaning products under the Cif, Comfort, Domestos, Omo, Radiant, Sunlight, and Surf brand names. In addition, it offers food products consisting of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads, as well as cooking products, such as liquid margarines. The company markets its food products under the brand names of Becel/Flora, Bertolli, Blue Band, Rama, Hellmann?s, Amora, and Knorr. Further, it provides refreshment products, which include ice cream, tea-based beverages, weight-management products, and nutritionally enhanced staples under the brand names of Heartbrand, Lipton, and Slim?Fast. UNILEVER N.V. sells its products through its own sales force, as well as through independent brokers, agents, and distributors to chain, wholesale, co-operative and independent grocery accounts, food service distributors, and institutions. The company, formerly known as Naamlooze Vennootschap Margarine Unie, was founded in 1927 and is based in Rotterdam, the Netherlands. Unilever N.V. is a subsidiary of The Unilever Group.

10 Best Dividend Stocks To Watch For 2014: RGC Resources Inc.(RGCO)

RGC Resources, Inc., through its subsidiaries, engages in the distribution of natural gas in Virginia. It is primarily involved in the regulated sale and distribution of natural gas to residential, commercial, and large industrial and transportation customers through underground mains and service lines in Roanoke, Virginia, and the surrounding localities. The company also provides non-regulated services. In addition, it offers information technology consulting services, as well as utility and regulatory consulting services to other utilities. The company operates approximately 1,045 miles of transmission and distribution pipeline; owns and operates eight metering stations; and a liquefied natural gas storage facility located in Botetourt County. RGC Resources, Inc. was founded in 1912 and is based in Roanoke, Virginia.

10 Best Dividend Stocks To Watch For 2014: PMC Commercial Trust(PCC)

PMC Commercial Trust operates as a real estate investment trust (REIT). It primarily originates loans to small businesses, principally in the limited service hospitality industry, collateralized by first liens on the real estate of the related business. The company has elected to be treated as a REIT under the Internal Revenue Code and would not be subject to federal income tax, provided it distributes approximately 90% of its taxable income to its shareholders. PMC Commercial Trust was founded in 1993 and is headquartered in Dallas, Texas.

10 Best Dividend Stocks To Watch For 2014: Freeport-McMoran Copper & Gold Inc.(FCX)

Freeport-McMoRan Copper & Gold Inc. engages in the exploration, mining, and production of mineral resources. The company primarily explores for copper, gold, molybdenum, silver, and cobalt. It holds interests in various properties, located in North and South America; the Grasberg minerals district in Indonesia; and the Tenke Fungurume minerals district in the Democratic Republic of Congo. As of December 31, 2010, the company?s consolidated recoverable proven and probable reserves totaled 120.5 billion pounds of copper, 35.5 million ounces of gold, 3.39 billion pounds of molybdenum, 325.0 million ounces of silver, and 0.75 billion pounds of cobalt. The company was founded in 1987 and is headquartered in Phoenix, Arizona.

Advisors' Opinion:
  • [By John Divine]

    Freeport-McMoRan Copper & Gold (NYSE: FCX  ) rounds out the list of today's laggards, with a 2.3% loss. This is the third straight day of declines for the copper miner, which continues to struggle with market repercussions from a deadly mining disaster at one of its locations in Indonesia. The lost production from the closed mine is estimated to be around $15 million per day.

  • [By David Smith]

    Freeport-McMoRan Copper & Gold (NYSE: FCX  ) , the world's largest publicly traded copper producer, has reported reduced earnings for the first quarter of this year. But with copper sales surprising on the upside -- albeit amid lower prices -- the company was able to top the consensus per-share earnings estimate of the analysts who follow it.

10 Best Dividend Stocks To Watch For 2014: Dominion Resources Inc. (D)

Dominion Resources, Inc., together with its subsidiaries, engages in producing and transporting energy in the United States. It operates in three segments: DVP, Dominion Generation, and Dominion Energy. The DVP segment includes regulated electric transmission and distribution operations that serve residential, commercial, industrial, and governmental customers in Virginia and North Carolina. This segment also involves in non regulated retail energy marketing of electricity and natural gas. The Dominion Generation segment includes the electricity generation through coal, nuclear, gas, oil, and renewables; and related energy supply operations. It also comprises generation operations of the company?s merchant fleet and energy marketing, and price risk management activities for these assets. The Dominion Energy segment includes the company?s Ohio and West Virginia regulated natural gas distribution companies, regulated gas transmission pipeline and storage operations, natural gas gathering and by-products extraction activities, and regulated LNG import and storage operations. It also provides producer services, which aggregates natural gas supply; engages in natural gas trading and marketing activities; and involves in natural gas supply management. The company?s portfolio of assets includes approximately 27,615 MW of generation; 6,100 miles of electric transmission lines; 56,800 miles of electric distribution lines; 11,000 miles of natural gas transmission, gathering, and storage pipeline; and 21,800 miles of gas distribution pipeline. Dominion Resources, Inc. also owns approximately 947 bcf of storage capacity of natural gas and serves retail energy customers in 14 states. In addition, it sells electricity at wholesale prices to rural electric cooperatives, municipalities, and into wholesale electricity markets. The company was founded in 1909 and is headquartered in Richmond, Virginia.

Advisors' Opinion:
  • [By Justin Loiseau]

    Dominion's (NYSE: D  ) Virginia utility is kicking off its own pilot, a solar-power program to help eligible customers install panels on their homes and businesses. In addition to offsetting the initial costs of solar-panel installation, Dominion will offer guaranteed energy buybacks to the grid at a premium rate of $0.15 per kWh.

Friday, November 22, 2013

Is Yahoo a Buy Near Yearly Highs?

With shares of Yahoo (NASDAQ:YHOO) trading around $36, is YHOO an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Yahoo is a technology company that provides search, content, and communication tools on the web and on mobile devices worldwide. It operates Yahoo.com, which offers Yahoo Search, Yahoo News, Yahoo Sports, Yahoo Finance, Yahoo Entertainment and Lifestyles, and Yahoo Video. Being such a large content provider, Yahoo is able to reach a significant amount of consumers across the globe. As the internet attracts an increasing number of participants, look for Yahoo to continue to be a major player.

Yahoo has increased its stock buyback plan by $5 billion and will sell $1 billion in convertible debt that will mature in 2018, according to a statement from Yahoo seen by Bloomberg. In July, Yahoo repurchased 40 million shares from Third Point LLC. Overall, since 2012, Yahoo has repurchased $5.3 billion worth of its stock. Yahoo CEO Marissa Mayer also announced plans to hire a new head of design at a conference in San Francisco on Tuesday.

T = Technicals on the Stock Chart Are Strong

Yahoo stock has been exploding to the upside in the last several months. The stock is currently trending higher. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Yahoo is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

YHOO

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Yahoo options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Yahoo Options

31.69%

26%

24%

What does this mean? This means that investors or traders are buying a minimal amount of call and put options contracts as compared to the last 30 and 90 trading days.

Put IV Skew

Call IV Skew

December Options

Flat

Average

January Options

Flat

Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a minimal amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Yahoo’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Yahoo look like and more importantly, how did the markets like these numbers?

2013 Q3

2013 Q2

2013 Q1

2012 Q4

Earnings Growth (Y-O-Y)

-6.67%

66.67%

52.17%

-2.15%

Revenue Growth (Y-O-Y)

0.33%

-6.78%

-6.62%

1.64%

Earnings Reaction

-0.86%

10.34%

-0.37%

-3.00%

Yahoo has seen mixed earnings and revenue figures over the last four quarters. From these numbers, the markets have had conflicting feelings about Yahoo’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Yahoo stock done relative to its peers, Google (NASDAQ:GOOG), AOL (NYSE:AOL), Microsoft (NASDAQ:MSFT), and sector?

Yahoo

Google

AOL

Microsoft

Sector

Year-to-Date Return

81.86%

45.28%

53.29%

39.28%

55.92%

Yahoo has been a relative performance leader, year-to-date.

Conclusion

Yahoo is an Internet bellwether that provides a multitude of services to consumers and companies worldwide. The company has increased its stock buyback plan by $5 billion and will sell $1 billion in convertible debt that will mature in 2018. The stock has been moving higher in recent quarters and is now trading near highs for the year. Over the last four quarters, earnings and revenues have been mixed, which have produced conflicting feelings among investors about earnings announcements. Relative to its peers and sector, Yahoo has been a year-to-date performance leader. Look for Yahoo to OUTPERFORM.

Tuesday, November 19, 2013

Marketing chief Asnes leaves Envestnet, launches own firm

marketing, content generation, envestnet

Marion Asnes, marketing chief at Envestnet Inc., has left the firm, launching her own consulting practice, Idea Refinery LLC.

At her new venture, Ms. Asnes will specialize in strategic messaging, content generation and marketing. She is currently working on some custom-content projects for InvestmentNews.

“I was ready to take on new things; it was just that time,” Ms. Asnes said.

Though she has left Envestnet, the firm is currently her biggest client.

“That’s a very warm relationship,” Ms. Asnes said. A call to Envestnet's president, Bill Crager, was not immediately returned.

Other companies she’s working for include Impact Communications Inc., a marketing firm headed up by Marie Swift.

For now, Ms. Asnes expects to build her client base in the financial services industry, but she may expand that. “I’ve been approached by others in other industries, and I haven’t taken those clients yet,” she said. “I want a secure base in an industry I know well and that knows me. Then I’ll move outward.”

Ms. Asnes joined Envestnet in 2010 after leaving her post as editor-in-chief of Financial Planning magazine.

Monday, November 18, 2013

5 Lessons from the Lehman Brothers Collapse

On September 15 five years ago, the world awoke to a financial calamity: One of the nation's largest investment banks was collapsing, unable to meet its obligations. The Lehman Brothers bankruptcy, in turn, triggered the near destruction of the entire financial system and the worst recession since the Great Depression.

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The U.S. stock market, which had started falling almost 12 months earlier, plunged. Standard & Poor's 500-stock index eventually lost 55.3%, hitting bottom on March 9, 2009.

What can we, as investors, learn from the collapse and its aftermath? Here are the five most important lessons I've gleaned.

1) Bubbles happen fairly often. When it comes to markets, it's not unusual for prices to soar to irrational levels. Whenever that happens, you need to tread carefully.

Sometimes bubbles are easy to spot. In the late 1990s, tech stocks sold at ridiculous multiples of sales and earnings (assuming a company had profits, which often wasn't the case). The problem for investors then was that it took years for the seemingly obvious bubble to pop. It was maddeningly difficult to stay away from overpriced stocks because they kept rising for so long. The real estate bubble was likewise pretty easy to see. But few people guessed a fall in home prices would endanger the entire economy.

Watch out any time you hear, "X always goes up" or "This technology will change the world." Nothing always goes up. New technologies can change the world, but only a few investors get rich from them. Plus, tech changes so rapidly that today's innovations become tomorrow's abacuses.

Bond prices have been falling lately, popping a bubble in the fixed-income market. The false premise behind that bubble was that bond yields were guaranteed to stay low—and bond prices, which move inversely with yields, would stay high—as long as the Federal Reserve wanted. The Fed can control short-term yields, but the market ultimately sets long-term bond yields.

2) Don't overdo stocks—or any other investment. Over ten-year periods, stocks have almost always achieved much higher returns than bonds. Meanwhile, cash, or money in the bank, has done little more than keep even with inflation.

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But putting all your money in stocks, as many advised in the 1980s and 1990s, proved to be far too risky. Over the long haul, large-company stocks have returned about 10% annualized, bonds have returned about 5% annualized, and cash has returned a little over 3% annualized--about the same as inflation.

But stock bear markets are brutal and usually impossible to forecast. Owning some bonds—even today, when interest rates seem almost certain to go higher—always makes sense. So does holding some cash.

3) Invest in high-quality stocks. Many of the smartest investors practice value investing. Over the long term, value stocks—stocks priced cheaply relative to earnings and other measures—have beaten the market. Ditto for stocks of small companies. And the best returns of all have come from bargain-priced small-company stocks.

But in the 2007-09 bear market, the Russell indexes of value stocks, small-company stocks and small-company-value stocks each tumbled three to four percentage points more than the S&P 500.

Meanwhile, funds that specialize in high-quality stocks—large companies with low debt and steady earnings growth—held up much better than the S&P. I can't find a good index of high-quality stocks, but among high-quality funds, Vanguard Dividend Growth (VDIGX) lost 42.3% and BBH Core Select (BBTRX) fell 41.3%. (The Vanguard fund is a member of the Kiplinger 25; the BBH fund was removed from the Kiplinger 25 after it closed to new investors.)

I'm not suggesting that you shouldn't invest in stocks of undervalued companies or small companies. To the contrary, I think you should diversify your stock investments broadly. But don't load up on value or small-capitalization stocks—unless they are really, really cheap, as they were before the 2000-02 bear market.

Emphasizing high-quality stocks makes a lot of sense to me, even though they usually command premium prices and tend to lag during bull markets.

4) Financial stocks are cheap for a reason. Relative to earnings, assets and other measures, bank stocks are usually cheaper than the broad market. That shouldn't come as a surprise. Every ten years or so, financial companies get into some kind of mess. All that borrowed money eventually leads to trouble, regardless of what the regulators do to mitigate the risk of that happening.

5) Don't expect to get the big picture right. In the days and weeks before the Lehman disaster, only a handful of investing gurus were predicting the horror that was about to befall us. Afterward, those who got it right were lionized, and many investors felt foolish that they had missed the warning signs.

But many of those brilliant bears have stayed bearish—even as a ferocious bull market has more than made up for the losses of the worst bear market since the 1930s.

It has been my experience that the bearish case regarding the stock market is almost always more convincing and intellectually more compelling than the bullish argument. But get this: Usually and ultimately, the bulls have been right. I expect that to continue.

Steven T. Goldberg is an investment adviser in the Washington, D.C. area.



Sunday, November 17, 2013

Jim Cramer's 6 Stocks in 60 Seconds: SSYS HLF RDN APA WFM DAL (Update 1)

Check out Jim Cramer's latest trading recommendations on "Action Alerts Plus". (Updates from 10:35 a.m. ET with closing information.)

NEW YORK (TheStreet) -- Here's what Jim Cramer had to say on CNBC's "Squawk on the Street" Tuesday.

Credit Suisse says to buy Stratasys (SSYS). Cramer said the stock has been on fire since its secondary offering. SSYS rose 3.6% to $96.82.

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D.A. Davidson & Co. is looking for Herbalife (HLF) to do a $2 billion tender offer. This would crush the short-sellers, Cramer said. HLF rose 3.8% to $73.29. Radian (RDN) is a buy, according to Cramer, especially with the Federal Housing Administration pulling out of the industry. RDN was 3% higher at $14.05. Everyone loves Apache's (APA) deal with Egypt, Cramer said, which is why the stock will go higher. APA was up 1.4% at $88.25. Cramer was short and sweet on Whole Foods Market (WFM): It will go much higher. WFM rose nearly 1% to $58.14. Delta Air Lines (DAL) and other airlines would go up significantly if the U.S. Airways-American Airlines merger actually went through Cramer said, but doubted that it would. DAL ended the day at $23.32, up nearly 1%. To sign up for Jim Cramer's free Booyah! newsletter, with all of his latest articles and videos, please click here. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell

Saturday, November 16, 2013

At The Open: Stocks Log Small Gains, Existing Home Sales Rise To Six-Year High

Stocks were up at the start of regular trading, although major indexes gave up some ground from pre-trading.

At recent check the Dow Jones Industrial Average was up three points to 15,680, although it has been waffling between minor gains and losses in recent trading. The S&P 500 was gaining about 2 points to 1,727, and the Nasdaq was rising 10 points to 3,793.

Futures were trading higher this morning as excitement over Wednesday's surprise decision by the Federal Reserve to delay tapering combined with an upbeat jobs report, as unemployment hovers near a six-year low.

Existing home sales were also a bright spot, rising 1.7% last month to a seasonally adjusted annual rate of 5.48 million, according to the National Association of Realtors. That was the highest level in more than six years, and ahead of the 5.2 million that economists were expecting. July's rate was 5.39 million.

The move was encouraging, as many feared that rising interest rates would curb buyers' appetites just as the housing recovery seemed to be gaining steam. However, buyers seemed eager to lock in rates as they continue to rise, and while the association said that higher rates will eventually weigh on home purchases, mortgage rates are historically still incredibly low. Today, Freddie Mac said that the average rate for the 30-year fixed-rate mortgage declined to 4.50% in the week that ended Sept. 19 from 4.57% in the prior week.

Also in the housing report, the median price of a home rose 14.7% year-over-year in August, to $212,100, the biggest jump since October 2005, while inventories crept ahead by 0.4% to 2.25 million. More expensive houses saw large annual sales growth while all-cash deals also remained quite high in August, while first-time buyers and distressed sales were relatively low.

Friday, November 15, 2013

Is Johnson & Johnson a Buy at These Prices?

Johnson & Johnson

With shares of Johnson & Johnson (NYSE:JNJ) trading around $92, is JNJ an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework.

T = Trends for a Stock’s Movement

Johnson & Johnson engages in the research and development, manufacturing, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The company offers a range of products used in general care, women's health fields, nutritional and anti-infective, contraceptive, gastrointestinal, oncology, pain management, and vaccines. It also offers products to treat cardiovascular disease, orthopedic and neurological products, blood glucose monitoring and insulin delivery products, and general surgery products. Through its wide variety of health care products, Johnson & Johnson is able to support consumers and medical businesses around the world that continue to demand improved products.

Johnson & Johnson is facing an additional $4 billion settlement over its metal-on-metal hip replacements after already paying a $2.2 billion settlement related to the misbranding of Risperdal a little over a week ago. According to Bloomberg Businessweek, Johnson & Johnson's hip replacement settlement will be the largest ever related to a medical device and will resolve more than 7,500 lawsuits. Sources familiar with the matter who spoke to Bloomberg said that Johnson & Johnson will also pay compensation for people whose hip implants fail in the future, meaning the ultimate price of the settlement could end up being much higher.

T = Technicals on the Stock Chart Are Strong

Johnson & Johnson stock has been exploding to the upside in the past several years. The stock is currently trading near all-time high prices and looks set to continue this path. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Johnson & Johnson is trading above its rising key averages, which signals neutral to bullish price action in the near-term.

JNJ

Source: Thinkorswim

Taking a look at the implied volatility (red) and implied volatility skew levels of Johnson & Johnson options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Johnson & Johnson Options

14.95%

36%

34%

What does this mean? This means that investors or traders are buying a significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

Put IV Skew

Call IV Skew

December Options

Flat

Average

January Options

Flat

Average

As of Wednesday, there is average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a significant amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Johnson & Johnson’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Johnson & Johnson look like and, more importantly, how did the markets like these numbers?

2013 Q3

2013 Q2

2012 Q1

2012 Q4

Earnings Growth (Y-O-Y)

-0.95%

166%

-13.48%

1050%

Revenue Growth (Y-O-Y)

3.11%

8.51%

8.46%

8.02%

Earnings Reaction

0.14%

0%

2.11%

-0.51%

Johnson & Johnson has seen mixed earnings and rising revenue figures over the last four quarters. From these numbers, the markets have been pleased with Johnson & Johnson’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Johnson & Johnson stock done relative to its peers – Pfizer (NYSE:PFE), Covidien (NYSE:COV), and Novartis (NYSE:NVS) — and sector?

Johnson & Johnson

Pfizer

Covidien

Novartis

Sector

Year-to-Date Return

33.17%

27.08%

23.91%

24.58%

28.18%

Johnson & Johnson has been a relative performance leader, year-to-date.

Conclusion

Johnson & Johnson provides valuable and essential health care products and services to many consumers and companies operating worldwide. The company is facing an additional $4 billion settlement over its metal-on-metal hip replacements after already paying a $2.2 billion settlement related to the misbranding of Risperdal a little more than a week ago. The stock has been has been trending higher over the last several years and is currently trading near highs for the year. Over the last four quarters, earnings have been mixed while revenues have been rising. However, investors have been pleased during recent earnings announcements. Relative to its peers and sector, Johnson & Johnson has been a year-to-date performance leader. Look for Johnson & Johnson to OUTPERFORM.

Wednesday, November 13, 2013

Netflix Spruces Up Service for Television Screens

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Netflix Inc. Website As Company Announces It Will Raise Capital Bloomberg via Getty Images SAN FRANCISCO -- Netflix (NFLX) is reprogramming the way its Internet video subscription service appears on millions of television screens in an attempt to hook viewers for even longer periods. The makeover of Netflix's TV menu will start showing up Wednesday on televisions that connect to the Internet through recently released Blu-ray disc players, PlayStation and Xbox video game consoles and the Roku 3 set-top box. Netflix's service will look the same on its applications for mobile devices and its website, as well as on TVs that rely on Apple TV and a variety of other gadgets that stream Internet video. As has been the case for years, Netflix's revamped TV menu will continue to highlight entertainment that the company's automated recommendation system picks based on each subscriber's viewing preferences. But the new design includes more visual thumbnails and details about the recommendations, including a capsule explaining why a particular movie or TV series might appeal to the interests of each subscriber. A blurb about each episode in TV series also will be shown. If a subscriber has enabled their Netflix activity to be tied to Facebook's social network, the new format also will list friends who have previously watched the video. "This is the biggest change to the Netflix experience on televisions in our history," said Neil Hunt, Netflix's chief product officer. Netflix's move marks another step in the company's push to make its online streaming service as compelling as any of the channels on cable and satellite systems. Unlike those channels, which are bundled in subscription packages, Netflix pipes its service through high-speed Internet connections and sells it as a stand-alone option for $8 month. The company's alternative approach is increasingly popular, helping Netflix attract 31 million U.S. subscribers -- an audience that recently surpassed that of HBO's older pay-TV channel. HBO, owned by Time Warner (TWX) still has a far larger global audience, with 114 million worldwide subscribers compared to 40 million for Netflix. In a change from past updates, Netflix is simultaneously releasing its redesigned menu on multiple video-streaming devices. The new look will gradually roll out during the next two weeks to Netflix subscribers watching the service through Roku's latest player, newer Blu-ray players and Smart TVs and the PlayStation 3, PlayStation 4 and Xbox 360 video-game consoles. The Los Gatos, Calif. company is planning to introduce the new look on older Roku players and other streaming devices next year. Although Netflix also works on computers and smartphones, TVs accounted for most of the 5 billion hours watched on the service during the three months ending in September. The total usage works out to an average of about 42 viewing hours per subscriber each month, up from an average of 38 hours per subscriber in the middle of last year. The rising popularity of Netflix's service has helped lift the company's stock price, which has more than tripled this year.

Tuesday, November 12, 2013

U.S. Consumers Borrowing More Again

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The Federal Reserve reported on Monday afternoon that total outstanding U.S. consumer credit rose 4.4% in July, from a revised estimate of $2.842 trillion in June to $2.852 trillion. A total of $850 billion is revolving credit while $2 trillion is non-revolving. Consumer credit in the Fed's G.19 report includes short- and medium-term credit to individuals, and does not include home mortgages.

Revolving credit, which includes credit card debt, was down 2.6% in July after dropping 5.2% in June. Non-revolving credit, which includes car loans and student student loans, rose 7.4% in July after a 9.5% jump in June.

The jump in new car sales in July likely drove the non-revolving portion of consumer debt. Another jump could then be predicted for August, when new car sales were even higher than they were in July.

As for student loans, JPMorgan Chase & Co. (NYSE: JPM) announced last week that it planned to get out of the student lending business as more scrutiny from regulators and federal government programs are taking a larger share of the business. The federal government's consumer lending total in July was $571.9 billion, more than triple the total outstanding at the end of 2010.

Monday, November 11, 2013

Harvard's deficit skyrockets to $34 million

harvard university deficit

Harvard said it's facing a challenging economic climate.

NEW YORK (CNNMoney) Harvard University's deficit grew fourfold in the past year.

The number skyrocketed to $34 million in the 2013 fiscal year, compared to last year's $7.9 million shortfall, according to a report released by the university Friday night.

The deficit comes as the top Ivy League institution's revenue grew 5%, but its expenses increased by 6%.

The report placed some blame on the "chilling" impacts of cuts in the federal budget on research grants. At the same time, salaries, wages and benefits, which represents half of the university's operating expense, also increased.

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Another big cost for the university is servicing its $5.7 billion debt, which the report said it was working to reduce.

"Colleges and universities around the country continue to face substantial pressure, and Harvard is no exception," Harvard's chief financial officer Daniel Shore and treasurer James Rothenberg wrote in the report.

The report said that though it has grown, the deficit was "manageable," because it's less than 1% of the school's revenue, which totaled $4.2 billion.

While the university did face these cost and economic hurdles, the university endowment's 11.3% positive investment return and a 17% uptick in the amount of donations to the school did help boost revenue. About a fifth of Harvard's revenue comes from student tuition.

The university warned it will face "increasingly complicated yet unavoidable choices" as it deal with the deficit in coming years.

Though it didn't provide specifics on how it plans to tackle the issue, Harvard said it will reduce dup! lication of work with the help of technology and might also tweak benefits it pays out. The report notes that these changes will be felt at a "personal level," but they are inevitable and necessary.

Is the cost of college crippling?   Is the cost of college crippling?

The good news is that donations to the university continue to grow -- increasing 17% in the latest year to $339 million. Harvard's endowment of $32.7 billion, the largest in the country, also earned an investment return of 11.3%.

However, a Fortune analysis found that Harvard's was the worst investment returns among any of its peers over the past five years.

Harvard isn't the only top-tiered school with a money problem. Its top rival, Yale, also reported a $39 million deficit. To top of page

Thursday, November 7, 2013

Salix Pharma to Acquire Santarus

NEW YORK (TheStreet) -- Gastrointestinal drugmaker Salix Pharmaceuticals (SLXP) announced it will acquire smaller biopharmaceutical company Santarus (SNTS) in a deal worth $2.6 billion. The purchase agreement of $32 a share provides a 39% premium to Santarus' average 30-day closing price. The transaction is expected to be finalized by the first quarter 2014.

In response, Salix shares gained 9.4% to $77.99 and Santarus soared 37.2% to $31.86 in after-hours trading.

Salix said the acquisition will help position the combined entity as the largest U.S. gastroenterology-focused drug company with annual product revenue of $1.3 billion.

"We are extremely pleased with the Santarus acquisition, which is transformative for Salix both commercially and financially, fulfilling many of our strategic needs, while providing immediate and significant accretion in 2014 and beyond," said Salix CEO Carolyn Logan in a statement. As part of the deal, the companies will merge salesforces, combine product portfolios and expand the number of health care prescribers in their database. The deal's revenue diversification will benefit its bottom line as no one product is expected to bring in more than 50% of total revenue (this, as Ariad Pharmaceuticals learnt late October, is an important consideration).  After the bell, San Diego-based Salix reported third-quarter earnings of 89 cents a share on $238.2 million in revenue. Earnings came in 3 cents higher than analysts surveyed by Yahoo! Finance had expected though revenue, a 29% increase on a year earlier, missed estimates by $1.5 million.

Wednesday, November 6, 2013

What to Look for in Bank Stocks

Because banks became weapons of mass economic destruction in the 2008 global financial crisis, post-crisis regulations sought to defang financial institutions through increased capital requirements.

Those measures greatly reduced their risk, but also lowered their financial performance.

Despite this, two portfolio managers at the boutique international value investment manager Causeway Capital Management are salvaging undervalued assets amid the wreckage in the bruised banking sector.

In a Causeway newsletter interview titled “The Banking Evolution,” portfolio managers Conor Muldoon and Alessandro Valentini say they have increased the sector’s weighting to 15% of their international and 10% of their global portfolios by purchasing shares of banks that have successfully shed capital-intensive assets and low-return business lines.

Top Cheap Companies To Own For 2014

The two value managers explain their portfolio selection criteria, with Muldoon noting that “some of our favorite bank holdings have already raised sufficient capital and shed assets to meet the capital requirements of Basel III,” though that regulatory standard does not take effect till 2019.

Market consolidation is another key criterion, with Valentini saying that “fully capitalized banks generally operate in markets where the competition has shrunk to a few key players. In the United Kingdom, for example, the vast majority of retail banking market share is held by only four banks.”

That consolidation also advanced in the U.S. during the Lehman Brothers crisis when JPMorgan acquired Bear Stearns and Washington Mutual, Wells Fargo acquired Wachovia—“all at distressed prices,” Muldoon says, noting that some of the largest U.S. banks are seeing returns on equity in the mid-teens, while much of the sector remains stuck in single digits.

Encouraging their optimism is the current cyclical low of U.S. and European interest rates, which implies a forthcoming boost in “net interest margin” when rates eventually rise.

That profitability advantage is not evident in Japanese banks where net interest margin remains under pressure; despite this, Muldoon says some of Japan’s megabanks are attractive because they are trading at around book value and seeing loan growth.

In contrast, Australian and Canadian banks that have achieved both market concentration and financial strength are unattractive as investments because of their current high valuations. Nevertheless, Valentini says, they serve as models of institutions that have made the most of the current economic circumstances.

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Check out Sallie Krawcheck: Beware of Bank Stocks on ThinkAdvisor.

Monday, November 4, 2013

Top Tech Companies To Invest In Right Now

 To find the best, most profitable setups, commodity traders have to watch for "black death pessimism."   Earlier this month, we looked at three ugly charts in the natural resource sector... diversified giant miner BHP Billiton, iron-ore miner Vale, and the coal sector fund (NYSE: KOL).   These assets are a "pass" in my book.   They're all down 30%-50% in the last two years. They're a heck of a lot cheaper than they were in 2011. Still... there's been no "washout" bottom that leads me to think we've hit screaming bargain levels. Folks haven't totally given up on them yet.   But there is one natural resource sector that has reached a "washout" bottom. And it continues to look good from a "common sense technical analysis" perspective...

Top Tech Companies To Invest In Right Now: American Software Inc (AMSWA)

American Software, Inc. (American Software), incorporated in 1970, develops, markets and supports a portfolio of software and services that delivers enterprise management and collaborative supply chain solutions to the global marketplace. American Software operates three business segments: Supply Chain Management (SCM), Enterprise Resource Planning (ERP) and Information Technology (IT) Consulting. The SCM segment consists of Logility, Inc. (Logility), which provides collaborative supply chain solutions for forecasting, production, distribution and management of products between trading partners. The ERP segment consists of American Software ERP, which provides purchasing and materials management, customer order processing, financial, e-commerce, flow manufacturing and manufacturing solutions, and New Generation Computing (NGC), which provides business software to both retailers and manufacturers in the apparel, sewn products and furniture industries. The IT Consulting segment consists of The Proven Method, Inc., an IT staffing and consulting services firm. The Company also provides support for its software products, such as software enhancements, documentation, updates, customer education, consulting, systems integration services, and maintenance.

Supply Chain Management

The Company�� wholly owned subsidiary Logility provides SCM solutions, an integrated set of supply chain planning, inventory optimization, manufacturing, and transportation and logistics solutions. Logility provides SCM solutions to streamline and optimize the market planning, management, production, and distribution of products for manufacturers, suppliers, distributors, and retailers. As of April 30, 2011, Logility�� customer base is approximately 1,250 companies located in more than 74 countries. Logility markets and sells the Demand Solutions product line to the global small and midsize enterprise (SME) market through the global VAR distribution network of Demand Management, Inc. (DMI). Logility also ! offers the Logility Voyager Solutions suite.

Logility Voyager Solutions is an integrated software suite that provides SCM, including collaborative planning, strategic network design, multi-echelon inventory optimization, optimized supply sourcing, production management, warehouse management, and collaborative logistics capabilities. Logility Voyager Solutions incorporates performance management analytics for decision support for processes, such as demand management, inventory and supply optimization, manufacturing planning and scheduling, transportation planning and management and sales and operations planning (S&OP).

The Logility Voyager Solutions software suite is modular and scalable to meet the management requirements of global organizations involving products with manufacturing or distribution networks. In addition, the Logility Voyager Solutions suite interfaces with a range of existing enterprise applications deployed on a range of technical platforms. Logility Voyager Solutions accelerates S&OP, as well as strategic partner collaboration. Voyager Sales and Operations Planning enables companies to streamline and accelerate the entire S&OP process. Voyager Collaborate enables companies to communicate across their organizations and share supply chain information with external trading partners.

Voyager Fashion Forecasting helps improve profits with capabilities that address the collection launches for fashion-driven businesses. Voyager Demand Planning helps reconcile differences between business planning and detailed product forecasting. Voyager Life Cycle Planning provides control to model each phase in a product�� sunrise-to-sunset lifecycle, including introduction, maturity, replacement, substitution and retirement. Voyager Event Planning integrates marketing strategies with forecasting, distribution and logistics planning to calculate the impact of promotional plans and demand shaping strategies, such as price discounts, coupons, advertising, special pack! aging and! product placement.

Logility Voyager Solutions enables enterprises to set inventory targets at each node of a multi-echelon distribution network to match strategic inventory goals and service levels. Voyager Inventory Optimization optimizes inventory investments across multi-echelon manufacturing and distribution networks to meet business and service level objectives for supply chains with multiple stages of inventory. Logility Voyager Inventory Planning allows enterprises to measure the tradeoff of inventory investment and desired customer service levels.

Logility Voyager Solutions optimizes material, inventory, production and distribution assets by synchronizing supply and demand. Voyager Supply Planning optimizes sourcing and production decisions to balance supply, manufacturing and distribution constraints based on corporate goals. Voyager Replenishment Planning provides visibility of future customer demand, corresponding product and material requirements, and the actions needed to satisfy those demands. Voyager Manufacturing Planning creates optimized constraint-based manufacturing schedules and compares multiple schedule scenarios to determine the optimal trade-off between manufacturing efficiencies, inventory investments and greenhouse gas emissions.

Logility Voyager Solutions provides capabilities for optimizing both warehouse and transportation operations. Voyager WarehousePRO provides shipping and inventory accuracy by optimizing the flow of materials and information through distribution centers. Voyager Transportation Planning and Management provide a multi-modal solution for savings of time, effort and money. It enables automated shipment planning, shipment execution and freight accounting. Demand Solution�� supply chain software provides a transition from spreadsheet management to robust reporting and tracking. Demand Solutions offers two separate product suites: traditional and DSX. The Demand Solutions application suite predict future demand and m! ake infor! med decisions to optimize inventory turns, customer service levels and profitability. Demand Solutions Forecast Management provides a demand planning solution that fits virtually any industry and deploys. Demand Solutions Requirements Planning incorporates collaborative planning capabilities to streamline supply activities from the production line through delivery.

Demand Solutions Collaboration offers a certified collaborative planning, forecasting and replenishment (CPFR) compliant collaborative planning solution that streamlines communications between a company and its customers and suppliers. Demand Solutions Sales & Operations Planning automates and continually analyzes the annual business planning process. Demand Solutions Advanced Planning and Scheduling is a production scheduling solution that supports both the process and discrete enterprise environment and produces accurate schedules taking into account machines, personnel, tooling and inventory constraints. Demand Solutions View (DS View) extends the value of Demand Solutions, empowering users to aggregate, rotate, filter, sort and otherwise manipulate large volumes of data into meaningful information. Demand Solutions Retail Planning enables manufacturers, distributors and retailers to collaboratively produce, ship and replenish product based on point-of-sale (POS) data.

Enterprise Resource Planning

The Company�� enterprise solutions are global solutions that link critical functions throughout an enterprise. The e-Intelliprise solution is a Web-based ERP system that a customer can run over the Internet, Intranet or Extranet utilizing the IBM iSeries servers. This allows functions within the ERP system to be deployed over the Internet using a Webpage capability. The e-Intelliprise solution is a global system, capable of operating in multiple languages and logistical organizations. Its e-applications are solutions for conducting business on the Internet that can Web-enable specific business functions t! hrough in! tegration with existing ERP or legacy systems. The e-applications are available for the applications, which include e-procurement, e-store, e-expenses, e-forms, e-payables, e-receivables, Purchase Order Tracking and Vendor Collaboration, Requisition Tracking, Shipment Tracking, e-process management and e-connect a seamless, XML-enabled data exchange.

The Company�� product line consists of software and services that operate on three strategic computer platforms, which includes IBM System z Mainframe or compatible, IBM System i (AS/400), and Intel-based servers and clients that operate Windows 2000, 2003, XP and Vista. It has written its products in various standard programming languages used for business application software, including ANSI COBOL, Micro Focus COBOL, C, C++, Visual Basic, JAVA, JAVA2 and other programming languages. Many have both on-line and batch capabilities.

IT Consulting

The Proven Method, Inc., the Company�� wholly owned subsidiary, is a technology services firm that specializes in assisting customer base to solve business issues with technology solutions. The solutions the Company provides ranges from Web applications to complex Business Intelligence applications and solutions. Business Intelligence consists of the development and implementation of a reporting process for dealing with data and multiple business entities/components. Its customers are Internet savvy and knowledgeable in wireless solutions, social networking and channeling implementations, server and desktop virtualization, and deployment of interactive applications. The Proven Method has customers, such as Aon, IBM, UPS, Norfolk Southern, Xerox, SunTrust Bank, Coca-Cola Enterprises, Kubota Manufacturing of North America, The Home Depot, AT&T, State of Georgia, CompuCom, Zep Inc, Chick-fil-A, Global Payments, Verizon, Catlin Group Ltd, Federal Home Loan Bank of Atlanta, Fulton Paper, Aaron Rents, AutoTrader.com, Nalco Chemical, Georgia Tech Research Institute and numerous ot! her custo! mers throughout the United States.

The Company competes with SAP, Oracle, Infor, JDA Software and Red Prairie.

Top Tech Companies To Invest In Right Now: Changyou.com Limited(CYOU)

Changyou.com Limited develops and operates online games in the People?s Republic of China. It involves in the development, operation, and licensing of massively multi-player online role-playing games (MMORPGs), which are interactive online games that might be played simultaneously by various game players. The company operates seven MMORPGs that include its in house developed Tian Long Ba Bu; and licensed Blade Online, Blade Hero 2, Da Hua Shui Hu, Zhong Hua Ying Xiong, Immortal Faith, and San Jie Qi Yuan. As of December 31, 2010, Changyou?s games in China had approximately 111.4 million aggregate registered accounts; 1.0 million aggregate peak concurrent users; and 2.7 million aggregate active paying accounts. The company was founded in 2003 and is based in Beijing, the People?s Republic of China. Changyou.com Limited is a subsidiary of Sohu.com Inc.

Advisors' Opinion:
  • [By Yiannis Mostrous]

    Changyou.com (CYOU)

    A subsidiary of Internet portal Sohu.com, video game developer Changyou.com specializes in massively multiplayer online role-playing games (MMORPG).

  • [By Seth Jayson]

    Changyou.com (Nasdaq: CYOU  ) is expected to report Q2 earnings on July 29. Here's what Wall Street wants to see:

    The 10-second takeaway
    Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Changyou.com's revenues will increase 24.3% and EPS will expand 1.5%.

  • [By Damian Illia]

    In the video game industry no one is playing games. Users are seeking entertainment on all kinds of devices, and companies strive hard to stand out and profit in this shifting field. Competition might be stiff, but it�� a highly profitable business for those that make it to the next level. Electronic Arts (EA), Changyou.com (CYOU) and Activision Blizzard (ATVI) are three game developers with different, but interesting, prospects ahead. Let�� take a closer look at them and see if you��e up for play:

  • [By Brian Pacampara]

    What: Shares of Chinese online gaming operator Changyou.com (NASDAQ: CYOU  ) plummeted 19% today after its quarterly results and outlook disappointed Wall Street.

Hot Blue Chip Companies To Buy For 2014: KongZhong Corporation(KONG)

KongZhong Corporation, together with its subsidiaries, provides wireless interactive entertainment, media, and community services to mobile phone users in the People's Republic of China. It also involves in the development, distribution, and marketing of consumer wireless value-added services, including wireless application protocol, multimedia messaging services, short messaging services, interactive voice response services, and color ring back tones. In addition, it offers interactive entertainment services, such as mobile games, pictures, karaoke, electronic books, mobile phone personalization features, entertainment news, chat, and message boards; and through Kong.net offer news, community services, games, and other interactive media and entertainment services; and sells advertising space in the form of text-link, banner, and button advertisements. Further, the company develops and publishes mobile games, including downloadable mobile games and online mobile games cons isting of action, role-playing, and leisure games. As of December 31, 2009, it had a library of approximately 300 internally developed mobile games. Additionally, it develops online games; and provides consulting and technology services, as well as media and net book services. The company was formerly known as Communication Over The Air Inc. and changed its name to KongZhong Corporation in March 2004. KongZhong Corporation was founded in 2002 and is headquartered in Beijing, the People?s Republic of China

Advisors' Opinion:
  • [By Seth Jayson]

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

Top Tech Companies To Invest In Right Now: Vodafone Group(VOD.L)

Vodafone Group Public Limited Company provides mobile telecommunication services worldwide. It offers mobile voice services to approximately 370 million customers; messaging services; mobile data services; fixed broadband services to approximately 6 million customers; and whole sale carrier services to approximately 40 African countries. The company also provides business managed services, such as secure remote network access services, as well as operates and sells mobile virtual network access. In addition, it supplies smartphones and tablets; designs, manufactures, and sells handsets under the Vodafone brand; and supplies connected smart devices, such as 4G/LTE mobile broadband stick, and Vodafone WebBox that enables customer to connect to the Internet through television sets. The company directly owns and manages approximately 2,200 stores, as well as has approximately 10,300 Vodafone-branded stores operated through franchises and dealer arrangements. It also offers its products and services through third party services providers, independent dealers, distributors, and retailers, as well as through Internet. Vodafone Group Plc was founded in 1984 and is based in Newbury, the United Kingdom.

Top Tech Companies To Invest In Right Now: Organovo Holdings Inc (ONVO)

Organovo Holdings, Inc. (Organovo), formerly Real Estate Restoration & Rental, Inc., incorporated in 2007, is a development-stage company. The Company has developed and is commercializing a platform technology for the generation of three-dimensional (3D) human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. On December 28, 2011, Real Estate Restoration and Rental, Inc.�� (RERR) entered into an Agreement and Plan of Merger, pursuant to which RERR merged with its, wholly owned subsidiary, Organovo (Merger Sub). On February 8, 2012, the Company merged with and into Organovo Acquisition Corp. (Acquisition Corp.), a wholly owned subsidiary of Organovo, with the Company surviving the merger as a wholly owned subsidiary of Organovo Holdings (the Merger). As a result of the Merger, Organovo acquired the business of Organovo, Inc.

The Company has collaborative research agreements with Pfizer, Inc. (Pfizer) and United Therapeutic Corporation (Unither). As of March 31, 2012, it has five federal grants, including Small Business Innovation Research grants and developed the NovoGen MMX Bioprinter (its first-generation 3D bioprinter). The Company is engaged in the development of specific 3D human tissues to aid Pfizer in discovery of therapies in two areas of interest. In addition, in October 2011, it entered into a research agreement with Unither to establish and conduct a research program to discover treatments for pulmonary hypertension using its NovoGen MMX Bioprinter technology. Additionally, under the research agreement with Unither, the Company granted Unither an option to acquire from the Company a worldwide, royalty-bearing license in certain intellectual property created under the research agreement solely for use in the treatment or prevention of pulmonary hypertension and all other lung diseases.

The Company�� NovoGen MMX Bioprinter is an automate! d device that enables the fabrication of three-dimensional (3D) living tissues comprised of mammalian cells. A custom graphic user interface (GUI) facilitates the 3D design and execution of scripts that direct precision movement of the dispensing heads to deposit cellular building blocks (bio-ink) or supporting hydrogel. The Company is using a third party manufacturer, Invetech Pty., of Melbourne, Australia, to manufacture its NovoGen MMX Bioprinter. Its bioprinting technology and surrounding intellectual property and commercial rights serve as a platform for product generation across multiple markets that employ cell- and tissue-based products and services.

The Company competes with Organogenesis, Advanced BioHealing, Tengion, Genzyme, HumaCyte and Cytograft Tissue Engineering.

Advisors' Opinion:
  • [By James E. Brumley]

    It's certainly not the way I would have likes for things to shake out with Organovo Holdings Inc. (NYSEMKT:ONVO), but I'm not going to complain - it's pointed in the right direction. More important, for anybody who's been wanting into an ONVO trade but wasn't sure where the right entry spot was, today's move is it, with just one little caveat.

  • [By Rick Munarriz]

    Organovo Holdings (NYSEMKT: ONVO  ) was one of last week's biggest winners, soaring 55% after making the leap to the more prolific NYSE MKT exchange.

Top Tech Companies To Invest In Right Now: Xyratex Ltd.(XRTX)

Xyratex Ltd provides modular solutions for the enterprise data storage industry and hard disk drive (HDD) capital equipment for the HDD industry. It offers enterprise data storage solutions that include storage enclosures, which provide a common technology platform that reduces qualification time for original equipment manufacturer (OEM) customers and includes management interface software, standardized across enclosures, and provides easy integration as new platforms; integrated application platforms that comprise embedded storage platforms, which incorporate embedded server modules into its storage enclosures; and HPC Solutions that consolidate controllers, storage enclosures, application platforms, operating system, data protection, Lustre File System, and management software into a optimized scale-out storage platform that can be deployed in hours rather than weeks. The company also designs and manufactures a range of process test systems, which incorporate mechanical and electronic hardware, and firmware for controlling the HDD operating environment during the formatting of the disk drive. In addition, it provides automated solutions comprising substrate and media inspection systems; servo track writers and related subassemblies; and head testing systems that test and process HDD components throughout the manufacturing process. The company markets and sells its products primarily to OEMs and disk drive manufacturers, as well as to other companies in North America, Asia, and Europe. Xyratex Ltd was founded in 1966 and is headquartered in Havant, the United Kingdom.

Advisors' Opinion:
  • [By Monica Gerson]

    Xyratex (NASDAQ: XRTX) reported a drop in its third-quarter profit. However, the company issued downbeat forecast for the fourth quarter. Xyratex shares tumbled 7.83% to $11.06 in the after-hours trading session.