Saturday, May 31, 2014

Top Diversified Bank Stocks To Invest In Right Now

Top Diversified Bank Stocks To Invest In Right Now: Remy International Inc (REMY)

Remy International, Inc. (Remy), incorporated on November 22, 1993, is a global vehicular parts designer, manufacturer, remanufacturer, marketer and distributor of aftermarket and original equipment electrical components for automobiles, light trucks, heavy-duty trucks and other vehicles. Remy sells its products worldwide primarily under the Delco Remy, Remy, and World Wide Automotive brand names. The Companys products include light-duty and heavy-duty starters and alternators for both the original equipment and the remanufactured markets, and hybrid power technology. These products are principally sold or distributed to original equipment manufacturers (OEMs) for both original equipment manufacture and aftermarket operations, as well as to warehouse distributors and retail automotive parts chains. The Company sells its products principally in North America, Europe, Latin America and Asia-Pacific. In January 2014, Remy International, Inc. acquired all assets of USA Indu stries.

The Companys original equipment division consists of three primary channels: automotive, heavy-duty vehicles and electric motors for electric and hybrid applications. Remy is a supplier for such original equipment manufacturers as General Motors, DaimlerChrylser, Toyota, Honda and Hyundai/Kia. The Company is a supplier of original equipment and aftermarket starters and alternators for heavy-duty vehicles in North America. Remy is an independent production electric motor supplier and in many aspects of hybrid and electric vehicle technology, including the patented hairpin stator technology. Its original equipment (OE) business has operations in the United States, Mexico, Brazil, China and Korea.

Advisors' Opinion:
  • [By Rich Smith]

    On Monday, auto parts maker Remy International (NASDAQ: REMY  ) announced that it is taking 100% control of its Remy Hubei Electric Co. (REH) joint venture! , buying out partner Hubei Super Electric Auto Motor Company's 49% interest in the JV.

  • source from USA Best Stocks:http://www.usabeststocks.com/top-diversified-bank-stocks-to-invest-in-right-now.html

10 Best Defensive Stocks To Invest In 2015

10 Best Defensive Stocks To Invest In 2015: Facebook Inc (FB)

Facebook, Inc. (Facebook), incorporated in July 2004, is engaged in building products to create utility for users, developers, and advertisers. People use Facebook to stay connected with their friends and family, to discover what is going on in the world around them, and to share and express what matters to them to the people they care about. Developers can use the Facebook Platform to build applications and Websites that integrate with Facebook to reach its global network of users and to build personalized and social products. Advertisers can engage with more than 900 million monthly active users (MAUs) on Facebook or subsets of its users based on information they have chosen to share with the Company, such as their age, location, gender, or interests. It offers advertisers a combination of reach, relevance, social context and engagement.

Products for Users

The Companys products for users are free of charge and available on the Web, mobile We b, and mobile platforms, such as Android and iOS. It launched Timeline in September 2011, as an enhanced and updated version of the Facebook Profile. Timeline allows users to organize and display the events and activities that matter most to them, enabling them to curate their memories in a searchable personal narrative that is organized chronologically. Users choose what information to share on their Timeline, such as their interests, photos, education, work history, relationship status, and contact information, and users can control with whom each piece of content is shared on their Timeline. The Facebook News Feed is the core feature of a users homepage and is a regularly updating list of stories from friends, Pages, and other entities to which a user is connected on Facebook. It includes posts, photos, event updates, group memberships, app updates, and other activities. Each users News Feed is personalized based on his or her interests and the sharing activity! of t he users friends.

Facebook is a photo upload! ing service on the Web. Users can upload an unlimited number of high resolution photos, create photo albums, and share them with their friends or any audience they choose. Users can also upload and share videos. Users can set specific privacy settings for each of their photo albums and videos, making them visible to everyone, or only to certain friends. Users can arrange their photos, add captions, and tag people in a photo or video. Tagging allows users to identify a person in a photo or video as one of their friends. Its messaging products include email, chat, and text messaging. Groups are shared Facebook pages for groups of users to discuss common interests. Lists allow users to organize their friends in order to filter the stories shown in their News Feeds and reach or exclude specific people when they share on Facebook. Through Events, users can organize gatherings, manage invitations, and send event notifications and reminders to their friends. From the Events page, u sers can create a new event, check out upcoming events of interest to them and their friends, and view previous events.

Through Places, users can share their location and see where their friends are. They are able to see if any of their friends are nearby. Users can also check in to Places to tell their friends where they are, tag their friends in the Places they visit, or view Comments their friends have made about the Places they visit. Using Subscribe, users can sign up to receive public posts in their News Feeds from other Facebook users of interest, such as celebrities, thought leaders, and other public figures. Ticker is a live stream of the real-time activities of a users friends and the Pages and other entities to which the user is connected. On the top of each Facebook page, a highlighted icon is displayed to users when there is relevant and new information available to them, such as a new friend request, a new message from a friend, or an ale! rt tha t! the user has been tagged in a photo posted by a friend.

A Facebook Page is a public profile that allows anyone, including artists, public figures, businesses, brands, organizations, and charities to create a presence on Facebook and engage with the Facebook community. A Page owner can connect with interested users in order to provide updates, answer questions, receive feedback, or otherwise stimulate interest in the owners messages, products, and services. When a Facebook user likes a Page, the Page owner has the opportunity to publish stories to the users News Feed on an ongoing basis. In addition, when a Facebook user Likes or Comments on a post by a Page owner, that users action may be shared with the users friends via News Feed to drive awareness to a wider circle of users, increasing the Pages exposure, recognition, and engagement. The Company does not charge for Pages, nor does it charge for the resulting organic distribution. As of March 31, 2012, there were more than 42 million Pages with 10 or more Likes , including Harvard, Lady Gaga, The Metropolitan Museum of Art, Starbucks, and Boo (the Worlds Cutest Dog), as well as millions of local businesses.

Products for Developers

The Facebook Platform is a set of tools and application programming interfaces (APIs) that developers can use to build social apps on Facebook or to integrate their Websites with Facebook. As of March 31, 2012, more than nine million applications and Websites were integrated with Facebook. Some of the elements of the Facebook Platform include open graph, social plugins, payments, applications on Facebook, desktop applications, mobile applications and platform-integrated Websites. The Open Graph is a set of APIs that developers can use to build applications and Websites that enable users to share their activities with friends on Facebook. Social plugins are social features that developers can easily integrate with their Websites by incorporating a single line of HyperText Mark u! p Languag! e (HTML) code.

Facebook provides an o! nline pay! ments infrastructure that enables developers to receive payments from users through a secure system. The Company has designed its Payments infrastructure to streamline the buying process between its users and developers. Its Payments system enables users to purchase virtual or digital goods from developers and third-party Websites by using debit and credit cards, PayPal, mobile phone payments, gift cards or other methods. Applications on Facebook run within the Facebook Website. The Facebook Platform has also enabled new types of social applications on Facebook beyond games to facilitate social sharing and discovery of music, news, television programming, and everyday interests, such as cooking, fitness, and travel. Developers can also build desktop apps that run on the operating system of a personal computer and offer experiences that are integrated with the Facebook Platform. The Facebook Platform for mobile has enabled developers to create engaging mobile applications tha t integrate with Facebooks social and personalization capabilities. Websites can integrate with Facebook using social plugins, such as the Like button or design more deeply integrated social experiences built around users and their friends.

Products for Advertisers and Marketers

Facebook offers products that enable advertisers and marketers to leverage its combination of reach, relevance, social context, and engagement. When creating a Facebook ad, advertisers can specify a title, content, image, and destination Web page or Facebook Page to which a user is directed if he or she clicks on the ad. Advertisers can further engage their intended audiences by incorporating social context with their marketing messages. Social context includes actions a users friends have taken, such as Liking the advertisers Facebook Page. Ads with social context are shown only to a users friends, and the users privacy settings apply to social ads. It offer s a ra! nge of ad! s with social context, from an ad with a sing! le Like b! utton to its Premium Ad paired with social context, which allows advertisers to highlight the interactions of a users friends with a brand or product.

Sponsored stories enable marketers to promote the stories they publish from their Facebook Page to users who have connected with the Page or to amplify the distribution of stories users are already sharing that are relevant to their marketing efforts. When advertisers create an ad campaign with Facebook, they specify the types of users they would like to reach based on information that users chose to share about their age, location, gender, relationship status, educational history, workplace, and interests. Advertisers choose to pay for their ads based on either cost per thousand impressions (CPM) on a fixed or bidded basis or cost per click (CPC) on a bidded basis. Facebook ad analytics enable advertisers to gain insights into which ads were displayed and clicked on. These analytics help advertisers make modif ications to their ad campaigns. Advertisers with Facebook Pages can also view the number of users who Liked and Commented on their Page and a newly introduced metric, People Talking About This, which shows how many stories about their brand are being created and shared.

The Company competes with Google, Microsoft, Twitter, Cyworld, Mixi and vKontakte.

Advisors' Opinion:
  • [By Associated Press]

    By expanding its library of content, Netflix is hoping people will decide to spend their idle time on its Internet video service rather than play video games, fraternize on Facebook (NASDAQ: FB  ) , surf cable or satellite TV or watch a DVD. (Netflix started out as a DVD-by-mail rental service, but it is phasing that out in favor of Internet streaming.)

  • [By Doug Ehrman]

    No company involved in the smartphone arena is more familiar with having its operating system relegated to the background than Google (NASDAQ! : GOOG&nb! sp; ) . The practice of shoving Android into a corner has been turned into an art form by South Korean manufacturer Samsung, which has used the Google OS as nothing more than a basic foundation for its devices at every part of the price continuum. More recently, Facebook (NASDAQ: FB  ) introduced Home, a meta-app that resides between the OS and other applications to take over the entire device. Now, as Google releases expanded versions of its apps for Apple's (NASDAQ: AAPL  ) iOS, the search king is taking a page from Samsung and moving to take over from within.

  • [By Benjamin Pimentel]

    Other social media stocks were up. Facebook (FB) rose a fraction to close at $49.01, while LinkedIn (LNKD) gained 4.3% to close at $231.06 and Yelp Inc. (YELP) added 5.2% to close at $70.77.

  • [By Matt Koppenheffer and David Hanson]

    The bank is aiming to boost interaction through Facebook (NASDAQ: FB  ) and OpenTable (NASDAQ: OPEN  ) and allow consumers tovote on favorite restaurants. Overall, the ultimate goal is make the customer base stickier.

  • source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/10-best-defensive-stocks-to-invest-in-2015.html

Friday, May 30, 2014

Earnings Scheduled For September 17, 2013

FactSet Research Systems (NYSE: FDS) is expected to report its Q4 earnings at $1.21 per share on revenue of $218.93 million.

Tower Group International (NASDAQ: TWGP) is projected to post a Q2 loss at $0.52 per share on revenue of $421.10 million.

Coty (NASDAQ: COTY) is expected to report its Q4 earnings at $0.01 per share on revenue of $1.05 billion.

Sutor Technology Group (NASDAQ: SUTR) is projected to report its Q4 earnings at $0.10 per share on revenue of $152.96 million.

Le Gaga Holdings (NASDAQ: GAGA) is estimated to report its Q4 earnings.

Adobe Systems (NASDAQ: ADBE) is expected to post its Q3 earnings at $0.34 per share on revenue of $1.01 billion.

ALCO Stores (NASDAQ: ALCS) is projected to post its Q2 earnings.

Digital Cinema Destinations (NASDAQ: DCIN) is estimated to post a Q4 loss at $0.11 per share on revenue of $11.17 million.

Thursday, May 29, 2014

Aubrey McClendon Continues to Bet Big on the Utica Shale

 

Source: Chesapeake Energy.

Former Chesapeake Energy (NYSE: CHK  ) CEO Aubrey McClendon once boasted that the Utica Shale would prove to be "the biggest thing economically to hit Ohio, since maybe the plow." He called it a half-trillion dollar opportunity because "it sounds bigger" than a $500 billion opportunity. Unfortunately for McClendon, the Utica Shale didn't work out exactly how he envisioned it would. Many of his peers pulled back on the play after it turned out to be less oily than expected. 

McClendon, however, never backed down. It's a good thing too because his former employer, Chesapeake Energy, is now certain that he was right and that the Utica Shale is a world-class energy asset. He likewise remains certain that the Utica's best days lie ahead as he's making a multibillion-dollar bet on the play through his new company, American Energy Partners.

McClendon's big bets
So far, McClendon has raised a whopping $8.7 billion to drill U.S. shale plays after recently raising another $4 billion. A third of these funds are earmarked toward the Utica Shale as McClendon also has his sights set on the Marcellus Shale and Permian Basin, where he is forming two new companies to target those plays. 

What's interesting, given McClendon's history, is he actually has a lot of money to pursue his grand plan. What he doesn't have right now is the people nor the deals. In fact, he recently told a Houston energy conference that "I need deals and I need people" and one of the reasons he was presenting was because he was there on a recruiting mission. 

That being said, this is a man who has already completed three Utica Shale deals this year. He spent $924 million to buy the 74,000 Utica Shale acres that Hess (NYSE: HES  ) sold earlier this year. On top of that, he completed a deal with ExxonMobil's (NYSE: XOM  ) XTO Energy unit to fund 100% of the near-term drilling costs of 55,000 net acres in a "core area" of the Utica Shale. In return, McClendon's company will receive ownership of 30,000 net acres from ExxonMobil in the Utica Shale. A third deal brought the company's total haul in the Utica Shale up to 130,000 net acres, which doubled its holdings in the region.

Source: Hess. 

Just getting started
Despite all of this wheeling and dealing, McClendon is hungry for more. This is despite the fact that some of the acreage he is buying didn't hold compelling economics for the seller. Hess, for example, noted that the acreage it sold was primarily dry gas. The company concluded that the potential returns from the investment at both current and projected natural gas prices didn't justify retaining and drilling the acreage. That, however, doesn't mean it won't be economically appealing for McClendon's company to drill.

One thing that his former employer, Chesapeake Energy, is finding is that the dry gas potential of the Utica Shale is proving to be more lucrative than investors realize. The company and many of its peers are drilling impressive wells as seen on the following slide:

Source: Chesapeake Energy investor presentation (link opens a PDF).

As the slide notes, these wells have the potential to produce more than 10 billion cubic feet of natural gas equivalent during the lifespan of the well. To put that into perspective, the gas produced during the lifetime of one well is enough gas to supply all of the energy needs for 100,000 American homes for one year.

With the right cost structure, these wells can be highly profitable. It's a cost structure that Chesapeake Energy has, which is why it sees so much value in the more than 2,000 future well locations it possesses. It's this same value that McClendon sees in the Utica whether it's in the dry gas portion or the currently more lucrative liquids-rich section of the play.

Investor takeaway
The Utica Shale is starting to become the economic powerhouse that McClendon envisioned. While it won't fuel returns for everyone, which is why Hess is pulling out of the dry gas portion of the play, it is moving the needle for companies like Chesapeake Energy and is likely to do the same for McClendon's new venture. Needless to say, investors shouldn't be writing off the Utica Shale as it still has the potential to fuel returns for the right companies.

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Wednesday, May 28, 2014

Hot Bank Companies To Buy Right Now

Hot Bank Companies To Buy Right Now: Community Bank System Inc (CBU)

Community Bank System, Inc., incorporated on April 15, 1983, which wholly owns five subsidiaries: Community Bank, N.A. (the Bank), Benefit Plans Administrative Services, Inc. (BPAS), CFSI Closeout Corp. (CFSICC), First of Jermyn Realty Company, Inc. (FJRC) and Town & Country Agency LLC (T&C). The Bank operates as a community bank providing a range of banking and financial services to retail, commercial, and municipal customers. As of December 31, 2012, the Bank operates 179 full-service branches throughout 35 counties of Upstate New York, where it operates as Community Bank, N.A. and five counties of Northeastern Pennsylvania, where it is known as First Liberty Bank & Trust, offering a range of commercial and retail banking services. BPAS provides administration, consulting and actuarial services to sponsors of employee benefit plans. In December 2013, the Company announced that it has acquired eight branch-banking locations across its Northeast Pennsylvania markets from B ank of America, N.A.Five of the branches are located in Luzerne County, one is located in Lackawanna County and two are located in Carbon County.

On July 20, 2012, the Bank completed its acquisition of 16 retail branches in Central, Northern and Western New York from HSBC Bank USA, N.A. (HSBC), acquiring approximately $106 million in loans and $697 million of deposits. On September 7, 2012, it completed its acquisition of three branches in Western New York from First Niagara Bank, N.A. (First Niagara), acquiring approximately $54 million of loans and $101 million of deposits.

Lending Activities

As of December 31, 2012, the Banks loan portfolio included consumer mortgage loans, business lending, Consumer indirect, Consumer direct and Home equity. Consumer indirect and direct loans consist of personal loans originated both in the branch network and in automobile, marine and recreational vehicle dealerships. Approxima! tely 68% of loans outstanding as of December 31, 2012, were made to consumers ! borrowing on an installment, line of credit or residential mortgage loan basis. The consumer mortgage portion of the Companys loan portfolio is comprised of fixed (98%) and adjustable rate (2%) residential lending and includes no exposure to subprime, Alt-A or other higher-risk mortgage products. The combined total of general-purpose business lending, including agricultural-related and dealer floor plans, as well as mortgages on commercial property, is characterized as the Companys business lending activity.

Investment Activities

As of December 31, 2012, the Banks investment securities included held-to-maturity, available-for-sale and Other securities. As of December 31, 2012, its held-to-maturity portfolio included U.S. Treasury and agency securities, Obligations of state and political subdivisions, Government agency mortgage-backed securities, Corporate debt securities and Other securities. Its Other Securities included Federal Home Loan Bank common stock, Federal Reserve Bank common stock and Other equity securities.

Sources of Funds

The Bank utilizes a variety of funding sources to support the earning asset base. Overall funding is comprised of three primary sources that possess a variety of maturity, stability, and price characteristics: deposits of individuals, partnerships and corporations (IPC deposits), municipal deposits that are collateralized for amounts not covered by FDIC insurance (public funds) and external borrowings. The various types of deposits offered by the Bank include Noninterest checking deposits, Interest checking deposits, Regular savings deposits, Money market deposits and Time deposits. Borrowing sources for the Company include the Federal Home Loan Bank of New York (FHLBNY) and Federal Reserve Bank of New York, as well as access to the brokered certificate of deposit (CD) and repurchase markets through relationships with primary market s! ecurity d! ealers.

Subsidiary Activities

The Compan! ys sub! sidiary, BPAS owns three subsidiaries, Benefit Plans Administrative Services LLC (BPA), a provider of defined contribution plan administration services; Harbridge Consulting Group LLC (Harbridge), a provider of actuarial and benefit consulting services, and Hand Benefits & Trust Company (HB&T), a provider of Collective Investment Fund administration and institutional trust services. HB&T owns two subsidiaries, Flex Corp. (Flex), a provider of administration, servicing and marketing of various flexible employee benefit programs and Hand Securities, Inc. (HSI), an introducing broker dealer. The Company also wholly owns two unconsolidated subsidiary business trusts formed for the purpose of issuing mandatorily redeemable preferred securities.

The Bank owns subsidiaries, such as CBNA Insurance Agency, Inc. (CBNA Insurance), CBNA Preferred Funding Corporation (PFC), CBNA Treasury Management Corporation (TMC), Community Investment Services, Inc. (CISI), First Liberty Service Corp. (FLSC), Nottingham Advisors, Inc. (Nottingham), Brilie Corporation (Brilie), and Western Catskill Realty, LLC (WCR). CBNA Insurance is a full-service insurance agency offering primarily property and casualty products. PFC primarily acts as an investor in residential real estate loans. TMC provides cash management, investment, and treasury services to the Bank. CISI provides broker-dealer and investment advisory services. FLSC provides banking-related services to the Pennsylvania branches of the Bank. Nottingham provides asset management services to individuals, corporate pension and profit sharing plans, and foundations. Brilie and WCR are inactive companies.

Advisors' Opinion:
  • [By GURUFOCUS]

    Community Bank System Inc. (CBU) operates as the bank holding company for Community Bank, N.A. that provides banking and financial services to retail, commercial, and municipal customers. August 21st the company increa! sed its q! uarterly dividend 3.7% to $0.28 per share. The dividend is payable October 10, 2013 to shareholders of record as of September 16, 2013. The yield based on the new payout is 3.3%.

  • source from USA Best Stocks:http://www.usabeststocks.com/hot-bank-companies-to-buy-right-now-2.html

Tuesday, May 27, 2014

A Gasoline-Powered Tesla

Elon Musk, the most handsome and intelligent man in the world, faces an insurmountable task as he works to sharply increase sales of his Tesla Motors Inc. (NASDAQ: TSLA) cars. The appetite for electric-powered vehicles in the United States is extremely small, and that is unlikely to change for years. For Tesla to be successful, it will need to introduce a hybrid, which at its heart is a gasoline-powered car. He may even have to launch a car that runs on a regular gasoline engine.

A car industry research powerhouse released a piece of research in 2010 that said:

Combined global sales of hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs) are expected to total 5.2 million units in 2020, or just 7.3 percent of the 70.9 million passenger vehicles forecasted to be sold worldwide by that year, according to a report issued by J.D. Power and Associates. For comparison, global HEV and BEV sales in 2010 are forecasted to total 954,500 vehicles, or 2.2 percent of the 44.7 million vehicles projected to be sold through the end of 2010.

Battery electric vehicles are a tiny fraction of that number, based on current sales trends. Given that most people cannot afford a $85,00 Tesla (with all the options), or even the less expensive car the company plans to sell, the market for Musk’s products is extremely limited. The resistance to sales goes beyond price. Among the hurdles manufacturers of these autos face, according to the “Drive Green 2020: More Hope than Reality” issued by the research firm, are that fossil fuel costs need to rise sharply over the next seven years, and drivers would need to get over their worry about the range of electric cars and the period required to charge car batteries.

Top New Companies To Watch In Right Now

Musk already has the problem of handling demand. If he is lucky, the company will sell 30,000 vehicles this year, which would translate into $3 billion of revenue. That is not enough to make the Tesla cars at any scale, even if there is demand for them, which there will not if production rises sharply.

Tesla has every advantage a car company would want. The National Highway Traffic Safety Administration (NHTSA) awarded the Tesla S the highest Vehicle Safety Score (VSS) ever. Consumer Reports gave the Tesla S its best grade even. However, the nonprofit did have some reservations, which can be added to the certain low demand of electric cars:

Drawbacks include tight access and restricted visibility. Initial teething problems and a steep sticker also give pause for thought.

Again, in a very limited market, the car is too expensive.

Tesla needs something in the form of an engine that would sharply broaden its appeal. If it only wants to attack the hybrid market, it could buy engines made for the Porsche Panamera SE Hybrid. The sports car has performance similar to a Tesla. If Musk wants to broaden the appeal of Tesla further, the number of sports car engines that produce 400 HP or better is fairly large.

Tesla could sell many thousands of its cars, but based on the trend of demand for electric cars, the company will need to add a gasoline-powered engine.

Following in the Steps of John Templeton

Legendary investor John Templeton died in 2008, leaving behind a set of investing maxims that are still followed by the managers of Templeton funds. As an investor, Templeton was a contrarian by nature, notes Vaughan Scully, of S&P Capital IQ in The Outlook.

He moved his office from New York to Nassau, the Bahamas, in part, to get away from the groupthink that prevailed on Wall Street, and claimed his performance improved because of it.

One of his maxims exhorts investors to do the same: "If you buy the same securities as other people, you will have the same results as other people. It is impossible to produce superior performance unless you do something different from the majority. To buy when others are despondently selling and to sell when others are greedily buying requires the greatest fortitude and pays the greatest reward."

James Harper, one of five managers currently running the Templeton World Fund (TEMWX), cites this maxim in explaining how the fund is managed and the philosophy behind it.

"We are completely bottom-up driven, five-year time horizon, value-oriented stock pickers," he says. "We tend to buy when people are selling, and sell when people are buying. That, I think, gives you the best long term performance."

Templeton sold his fund company in 1992 to what is now Franklin Templeton Investments, but the Templeton funds are still managed in Nassau according to John Templeton's unique style.

The Templeton World Fund opened in 1978 and has long been team managed. In 2011, however, after a period of inconsistent performance, the team was restructured, to give each of the five managers one fifth of the fund's assets and have them invest independently.

In addition to managing the World Fund assets, Harper and the firm's other portfolio managers, are also fundamental sector analysts, with Harper covering global insurance and information technology hardware. These analysts produce a Bargain List that portfolio managers use to initiate new positions.

Currently, the fund has 102 different holdings, a number Harper says managers try to keep from growing much larger. The team tries to keep every holding at least 0.50% of total assets; the largest holding, Citigroup (C) is 2.4% of the assets under management.

The bottom-up driven management sometimes leads the fund to have significantly different weightings on, both a sector, and a geo-graphic basis than its benchmark, the MSCI World Index. Harper says the managers just let their bottom-up, value style take them wherever it leads.

As of July 31, the fund had about 42% of its assets in Europe and just 39% in North America, compared with the MSCI World index, which has almost 55% of assets in the US.

Three of the fund's top 10 holdings—ING Groep (ING), BNP Paribas (Paris:BNP) (US:BNPQY), and Credit Suisse Group (CS)—are European financials that came into the fund beginning in early 2012, when the team began to sense the pessimism regarding the European banking sector was too extreme.

"We took a pretty aggressive stance on financials 18 months ago." Harper says. "In May 2012, there were valuations that were effectively unprecedented. European financials were trading at 30% of book value. That's a good example of us saying 'the market is clearly concerned.' We didn't believe that was the case and saw amazing opportunities. A lot of those companies have doubled. That's what we're trying to do on an ongoing basis."

Subscribe to S&P's The Outlook here…

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Monday, May 26, 2014

Will This Idea From Amazon Prove Beneficial for Investors?

Hot India Companies To Buy Right Now

Recently Amazon (AMZN) announced that the company is expanding its Amazon Fresh grocery delivery service to Los Angeles. The service, which has existed for a few years solely in Seattle, carries an annual fee of $299 and free shipping on qualified orders. Amazon has been slow to expand the service, learning from the mistakes of failed grocery delivery companies of the past. Amazon plans to expand the service to San Francisco later this year to around 20 more markets by the end of 2014.

What does this expansion mean for Amazon, and what does it mean for companies like Wal-Mart, Whole Foods, and Costco?

What Amazon Fresh means for Amazon

Amazon's quest to grow revenue and ignore profits continues. The grocery delivery business is a graveyard of failed companies, with margins razor-thin and competition fierce. But if any company is capable of delivering groceries in a sustainable way, it's Amazon.

Amazon has been extremely slow and cautious with the expansion of Amazon Fresh, largely due to the tough economics of the business. In the short-term and intermediate-term Amazon Fresh will have little effect on the company's results due to the limited footprint, but if new markets prove successful Amazon Fresh could eventually bring in billions of dollars in revenue.

The problem is that Amazon Fresh only makes sense for people who can afford to not only pay more for their groceries but also the $299 annual fee. This excludes, I think, a significant fraction of the American population. And considering that Amazon Fresh only makes sense in densely populated areas, there's a limit on how expansive the service can become.

Just running a grocery delivery service at break-even is extremely difficult, so it's unlikely that Amazon will derive much profit at all from Amazon Fresh, now or in the future. The return on investment here is terrible, and investors should be concerned.

What Amazon Fresh means for Wal-Mart

I think it's safe to say that people who grocery shop at Wal-Mart do so because of the low prices. Wal-Mart uses its grocery business to give shoppers a reason to visit its stores more often, leading them to buy other higher-margin goods. Wal-Mart has taken a big chunk of the grocery market from traditional grocery stores and is unlikely to lose that share to a grocery delivery service.

Many people can't afford to pay $299 for access to a grocery delivery service which then costs more than brick and mortar groceries. There is likely no overlap at all between Wal-Mart shoppers and possible Amazon Fresh members, so even if Amazon Fresh becomes widespread Wal-Mart will not be affected.

What Amazon Fresh means for Whole Foods

Whole Foods carries the most risk of losing customers to Amazon Fresh, given its high prices and upscale products. But going to Whole Foods is an experience, one which many shoppers wouldn't want to give up for convenience. In Austin, TX, where the flagship Whole Foods store is located, Whole Foods is a tourist destination. Many people go there for lunch at the cafe or get take-out from the buffet-style prepared food selection. Calling Whole Foods a grocery store is a vast understatement.

Whole Foods could lose some customers to Amazon Fresh, but I think the losses will be minimal. The idea of having meat left outside your door is a little strange, and most people prefer to choose their own produce at the store. Grocery delivery may be appealing for some types of items, but I doubt Whole Foods will be greatly affected.

What Amazon Fresh means for Costco

Costco's business model is vastly different than its competitors. The company charges an annual membership, about $55, and then prices its products around 15% above cost. Almost all of Costco's profits come from the membership fees, and this allows Costco to have extremely low prices.

You could argue that Amazon is attempting the same type of model with Amazon Fresh, but that would require the service itself to at least break even. This is unlikely given the delivery overhead, something that Costco doesn't have to deal with.

To some degree Costco is an experience, although not to the same degree as Whole Foods. People like shopping at Costco, something that is rarely said of traditional supermarkets. The low prices pay for the membership very quickly, and socially conscious shoppers appreciate that Costco pays high wages to its employees. And with a high membership renewal rate a Costco membership is extremely sticky. Amazon Fresh will not put a dent in the Costco Juggernaut.

The bottom line

Grocery delivery is a strange business. The market seems small, as people who shop at traditional grocery stores or chains like Wal-Mart care more about price than convenience. The target market appears to be the higher-end shopper who frequents Whole Foods or privately held Trader Joe's, but it's questionable whether or not convenience would trump the benefits that these types of stores offer. And environmentally it seems that door-to-door grocery delivery has a much larger carbon footprint than other options, potentially turning people off from the service. I don't think that Amazon Fresh will revolutionize anything, instead being just another profitless business for Amazon.

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Sunday, May 25, 2014

Black boxes for cars raise privacy concerns

INDIANAPOLIS -- If Gary Shinnamon goes on trial for a March 4 crash that killed a child, the most damning evidence against him isn't likely to come from victims or an eyewitness.

It will come from his 2010 Dodge Charger — more specifically, from a small data recorder attached to his car's airbag. The black box.

Welcome to the 21st century, when your vehicle may be keeping track of many aspects of your driving and, whether you like it or not, that information may be used against you.

Depending on whom you ask, the black box data recorders standard in nearly all new vehicles represent either another step into the grip of Big Brother or a valuable tool for vehicle manufacturers, law enforcement agencies and insurance companies.

Regardless of which side of that debate you fall on, experts say, the "event data recorders" are here to stay. The information they provide about speed, acceleration, braking and impact is being used in a growing number of court cases.

Marion County Deputy Prosecutor Tom Hirschauer said data from the recorders — a sort of poor cousin to the black boxes long common in airplanes — are now being used in an estimated 70 percent of criminal prosecutions in Marion County involving traffic accidents that result in serious injuries or fatalities. That is up from about 20 percent just a few years ago.

"The question we normally ask in an investigation is whether speed and breaking were a factor?" Hirschauer explained.

That question can often be answered by the data collected by the black box recorders.

"It tells us exactly what the vehicle was doing at the exact moment of impact and in the seconds just prior," he said. "It's real-time data from the vehicle. We are able to tell if a vehicle was accelerating, how much the throttle was open, the speed, whether the brakes were on or off."

The majority of new vehicles have recorders, and the federal government is expected soon to make them mandatory. Recorders operate whenever a vehicle! is running, continually capturing information about key systems on a small hard drive.

The information is saved in half-second intervals, writing over itself every five to 20 seconds. When the airbag is deployed, a snapshot of the seconds before the crash is captured. While all recorders monitor speed and braking data, some also collect data related to engine RPMs, sudden swerves and rollovers.

Hirschauer said prosecutors typically do not use information from the recorders alone, but it can be a powerful and convincing supplement to other evidence from investigators and witnesses.

In the case against Shinnamon, 30, of Indianapolis, data collected after investigators obtained a search warrant for the Charger's recorder provide key evidence about his driving seconds before the crash.

A police report said Shinnamon was traveling eastbound on West 38th Street, approaching Guion Road, and ran into the back of a compact car, pushing it into a guardrail. A 7-month-old baby was ejected from the compact car and later died.

Shinnamon and a passenger ran from the scene but later surrendered to police. Shinnamon has been charged with several criminal counts, including reckless homicide, a Class C felony punishable by up to eight years in prison.

"The (module) in the black Dodge showed the vehicle was traveling 81 mph five seconds before the crash, ..." a court document says, "and 91 mph when the collision occurred. The data also revealed the engine throttle was 76.4 percent full (or open), and the brake switch was open, indicating there was no braking at the time of the crash."

The speed limit on West 38th Street was 40 mph.

"That data," Hirschauer said, "is the nail in the coffin for the reckless homicide charge."

Prosecutors also used information collected from a recorder in former Indianapolis police Officer David Bisard's patrol car at his trial in a fatal 2010 drunken driving crash. It helped investigators confirm Bisard's speed in the moments before the c! rash and ! pointed to driver inattention, revealing he did not brake until just before the impact.

Bisard was convicted Nov. 5 of nine felony counts of drunken driving, reckless homicide and criminal recklessness for plowing into a group of motorcyclists stopped at a traffic light. He is serving a 16-year prison sentence.

"This data helps us close cases," Hirschauer said. "It takes away the argument of how crashes occur."

Data recorders were not initially installed in cars, SUVs and trucks to help law enforcement solve crimes. In use since the mid-1970s, they were designed to collect data to help manufacturers defend product liability claims, said Richard R. Ruth, a retired Ford engineer who runs a consulting business that provides expertise in automotive restraint systems and event data recorders.

"Their original purpose," he explained, "was to help companies know if their airbags worked correctly."

The game changer came in 1999, when GM introduced a recorder that captured a vehicle's speed, RPMs, throttle position and braking.

"What was useful to GM was also useful to law enforcement," Ruth said.

That data includes measures of two factors critical to a criminal investigation: speed and driver inattention, which can be determined to a large degree by when a driver let off the accelerator and applied the brakes.

"It's not perfect," he said, "but it is much better than we ever had before."

Not everyone, however, likes the idea.

The use of the device represents another slide down a slippery slope to losing privacy and giving the government more information about personal actions, said John Whitehead, attorney and founder of the Rutherford Institute, a nonprofit civil liberties organization based in Charlottesville, Va.

"We're on the losing end of a technological revolution that has already taken hostage our computers, our phones, our finances, our entertainment, our shopping, our appliances, and now, it's focused its sights on our cars," he said. "Mos! t people ! are not aware that evidence is there or available to prosecutors."

Whitehead acknowledged that law enforcement, with a warrant, has a right to obtain recorder data. His larger concern is what may come next, including the possibility that black boxes will evolve to capture and share with the government in-car conversations and information about where and when you travel.

Ruth said the laws around the country are unclear on whether a warrant is needed to obtain recorder data, but a 2011 appellate ruling in California determined a warrant is unnecessary.

About a dozen states, but not Indiana, require a warrant, and a bill has been introduced in the U.S. Senate that would require a warrant or the owner's consent before police could seize an event data recorder.

"In the United States, your home is your castle," Ruth said. "But the jury is still out on whether that extends to your vehicle."

In Marion County, Hirschauer said police obtain a search warrant from a judge before extracting data from a recorder. That eliminates any question about violating the Fourth Amendment prohibition on unlawful search and seizure.

Saturday, May 24, 2014

Best Defensive Companies To Invest In 2015

Investors are suddenly getting less brave as the recent selloff has tested their resolve, and fears that a correction could be coming get more real.

Skittish investors are skipping the exciting momentum stocks for now, instead jumping into the so-called defensive stocks ��those deemed less likely to react to swings in the markets and the economy.

Not wanting to see their gains on big winners disappear, investors are shifting into defensive stocks until the market's turbulence goes away, says Sam Stovall of S&P Capital IQ. "Investors are being no better than hyperactive first graders playing musical chairs and waiting for the music to stop," he says.

MORE STOCKS: Fed exit rattles markets yet again

Signs of investors rush to be seated in defensive areas of the market is clear from:

Best Defensive Companies To Invest In 2015: Knightsbridge Tankers Limited(VLCCF)

Knightsbridge Tankers Limited, through its subsidiaries, engages in the seaborne transportation of crude oil and dry bulk cargoes worldwide. The company?s customers include oil companies, tanker companies, dry bulk companies, petroleum products traders, government agencies, and other entities. As of September 6, 2011, it owned and operated a fleet of four double-hull very large crude carriers, and four Capesize dry bulk carriers. The company was founded in 1996 and is based in Hamilton, Bermuda.

Advisors' Opinion:
  • [By Maxx Chatsko]

    The horrendous flops
    I wrote a blog post explaining why Knightsbridge Tankers (NASDAQ: VLCCF  ) made the right move in slashing its dividend and why its prospects were looking up. The shipping company was extremely undervalued at the time, so why was I wrong? I made the mistake of thinking that a company trading below book value represented good value for shareholders. In reality, many shipping companies were -- and are -- trading below shareholders' equity because their fleets are enormously valuable assets. Unfortunately, that inflates book value enormously. It may not seem so harmful at first, but perpetually low charter rates have actually forced many shippers -- including Knightsbridge -- to sell tankers at less than market value to keep the lights on. Those practices can erase large chunks of book value overnight.

Best Defensive Companies To Invest In 2015: NGex Resources Inc (NGQRF.PK)

NGEx Resources Inc. (NGEx) is engaged in the acquisition, exploration, and development of precious and base metal properties located in North and South America. The Company�� projects include Josemaria Project, Vicuna Project, Tamberias Property, Colmillos project, Andrea Project, GJ/Kinaskan Property, Mogoraib (Hambok), Kerkebet, Shukula and Lelit, Bada Potash License and Congo-Brazzaville. Its Josemaria is a copper/gold porphyry project located in San Juan Province, Argentina. The Vicuna properties consist of approximately 31,650 hectares that covers a number of porphyry copper and high sulfidation gold targets in San Juan Province, Argentina. During the year ended December 31, 2011, it completed 9,643 meters of diamond drilling in 14 holes on its 60% owned Los Helados copper-gold project located in Chile. In October 2012, it sold its Hambok copper-zinc deposit to Bisha Mining Share Company. Advisors' Opinion:
  • [By The Investment Doctor]

    In this article I'll have a closer look at NGEX Resources (NGQRF.PK), a member of the Lunding Group which owns the extremely large Los Helados copper project in Chile, the Josemaria project in Argentina and the Filo del Sol project exactly on the border of Chile and Argentina. As these three properties are within 11 miles from each other, one can easily say NGEX is a potential district play.

5 Best Long Term Stocks To Watch Right Now: Akamai Technologies Inc.(AKAM)

Akamai Technologies, Inc. provides content delivery and cloud infrastructure services for accelerating and improving applications over the Internet in the United States and internationally. The company offers application and cloud performance solutions to enhance the operation of the applications used by enterprises to connect with their employees, suppliers, and customers. Its solutions include Web Application Accelerator, which enables enterprises to run various applications; and IP Application Accelerator that is designed to optimize the performance, availability, and real-time sensitivity associated with IP-enabled applications delivered over Internet-related protocols. The company also provides video and software solutions that are designed to enable enterprises to execute their large file management and distribution strategies, which include media delivery solution to entertainment industry; and electronic software delivery solution that handles the distribution of s oftware for its customers. In addition, it offers Website optimization services for accelerating business-to-consumer Websites that integrate collaborative content and applications into their online architecture; security and protection solutions that address the Internet security requirements; and network operator solutions, which provide custom solutions to commercial and government customers. Further, the company provides mobile content adaptation solution; and advertising decision solutions that enable advertisers, agencies, publishers, and networks to buy and sell advertising, as well as network data feeds, Website analytics, and business performance management services. It markets and sells its services and solutions through direct sales and services organization; and through active channel partners. Akamai Technologies, Inc. was founded in 1998 and is headquartered in Cambridge, Massachusetts.

Advisors' Opinion:
  • [By Lee Jackson]

    Akamai Technologies Inc. (NASDAQ: AKAM) has been able to offer scalable benefits associated with offloading services from client infrastructures, allowing clients to have fewer hard assets in place while providing an ongoing revenue stream for Akamai. This translates into more than 125,000 servers operating dedicated, hybrid cloud and true cloud servers to provide IT and, increasingly, security services in a vast array of companies across a widely diversified group of industries. With an impressive client list that grows each quarter, the company is firing on all cylinders. The Thomson/First Call price objective for the stock is $53.50. Akamai closed Thursday at $51.16.

  • [By Bryan Murphy]

    The winds of change are blowing within the patent-enforcement world. If you don't believe it, just ask Google Inc. (NASDAQ:GOOG), Akamai Technologies, Inc. (NASDAQ:AKAM), and Soverain Software LLC. All three companies recently found themselves on the losing end of a court decision - the appeals court, to be specific - that likely could have come out very differently were we in the patent-enforcement environment from just a couple of years ago. Things are a bit tougher for patent owners now. That change, however, may be a very good thing for patent-protection company Endeavor IP Inc. (OTCBB:ENIP) and ENIP shareholders.

  • [By Tim Beyers]

    Akamai Technologies (NASDAQ: AKAM  ) soared as much as 21% as the leading content delivery network served more online media traffic than expected. Both revenue and earnings easily topped estimates.

Best Defensive Companies To Invest In 2015: CHS Inc (CHSCP)

CHS Inc. (CHS) is an integrated agricultural company. As a cooperative, the Company is owned by farmers and ranchers and their member cooperatives (members) across the United States. The Company buys commodities from and provide products and services to patrons (including its members and other non-member customers), both domestic and international. It provides a variety of products and services, from initial agricultural inputs, such as fuels, farm supplies, crop nutrients and crop protection products, to agricultural outputs, which include grains and oilseeds, grain and oilseed processing and food products. A portion of its operations are conducted through equity investments and joint ventures. The Company has three segments: Energy, Ag Business, and Corporate and Other. In February 2012, the Company acquired Solbar. In May 2012, the Company acquired a 51% interest in CZL Ltd. In August 2012, it acquired Atman. Effective July 28, 2013, CHS Inc, a unit of Hamilton Farm Bureau Co-Operative Inc, acquired a 50% interest in AgFarm Pty Ltd, from Ruralco Holdings Ltd.

During the fiscal year ended August 31, 2011 (fiscal 2011), the Company dissolved its United Harvest joint venture, which operated two grain export facilities in Washington that were leased from the joint venture participants. During fiscal 2011, the Company sold its 45% ownership interest in Multigrain to one of its joint venture partners, Mitsui & Co., Ltd. During fiscal 2011, the Company, through its wholly owned subsidiary, CHS Europe, S.A. acquired Agri Point Ltd.

The Company�� Energy segment derives its revenues through refining, wholesaling and retailing of petroleum products. Its Ag Business segment derives its revenues through the origination and marketing of grain, including service activities conducted at export terminals, through the wholesale sales of crop nutrients, from the sales of soybean meal and soybean refined oil and through the retail sales of petroleum and agronomy products, processed sunflow! ers, feed and farm supplies, and records equity income from investments in its grain export joint ventures and other investments. It includes other business operations in Corporate and Other. These businesses primarily include its financing, insurance, hedging and other service activities related to crop production. In addition, the Company�� wheat milling and packaged food operations are included in Corporate and Other.

Energy

The Company is the nation�� cooperative energy company based on revenues and identifiable assets. The Company�� operations include petroleum refining and pipelines; the supply, marketing (including ethanol and biodiesel) and distribution of refined fuels (gasoline, diesel fuel and other energy products); the blending, sale and distribution of lubricants; and the wholesale supply of propane. The Energy segment processes crude oil into refined petroleum products at refineries in Laurel, Montana (wholly owned) and McPherson, Kansas (an entity in which the Company has an approximate 74.5% ownership interest) and sells those products under the Cenex brand to member cooperatives and others through a network of approximately 1,400 independent retail sites, of which 57% are convenience stores marketing Cenex branded fuels.

The Company�� Laurel, Montana refinery processes medium and high sulfur crude oil into refined petroleum products that primarily include gasoline, diesel fuel, petroleum coke and asphalt. Its Laurel refinery sources approximately 85% of its crude oil supply from Canada, with the balance obtained from domestic sources, and the Company has access to Canadian and northwest Montana crude through its wholly owned Front Range Pipeline, LLC and other common carrier pipelines. Its Laurel refinery also has access to Wyoming crude via common carrier pipelines from the south. The Laurel facility processes approximately 55,000 barrels of crude oil per day to produce refined products that consist of approximately 43% gasoline, 37% die! sel fuel ! and other distillates, 5% petroleum coke, and 15% asphalt and other products. Refined fuels produced at Laurel are available via the Yellowstone Pipeline to western Montana terminals and to Spokane and Moses Lake, Washington, south via common carrier pipelines to Wyoming terminals and Denver, Colorado, and east via its wholly owned Cenex Pipeline, LLC to Glendive, Montana, and Minot and Fargo, North Dakota.

The McPherson, Kansas refinery is owned and operated by National Cooperative Refinery Association (NCRA), of which the Company owns approximately 74.5%. The McPherson refinery processes approximately 85% low and medium sulfur crude oil and 15% heavy sulfur crude oil into gasoline, diesel fuel and other distillates, propane and other products. NCRA sources its crude oil through its own pipelines as well as common carrier pipelines. The low and medium sulfur crude oil is sourced from Kansas, Oklahoma and Texas, and the heavy sulfur crude oil is sourced from Canada. The McPherson refinery processes approximately 85,000 barrels of crude oil per day to produce refined products that consist of approximately 49% gasoline, 45% diesel fuel and other distillates, and 6% propane and other products. Approximately 32% of the refined fuels are loaded into trucks at the McPherson refinery or shipped via NCRA�� products pipeline to its terminal in Council Bluffs, Iowa. The remaining refined fuel products are shipped to other markets via common carrier pipelines.

The Company�� renewable fuels marketing business markets and distributes ethanol and biodiesel products throughout the United States and overseas by contracting with ethanol and biodiesel production plants to market and distribute their finished products. It owns and operates a propane terminal, four asphalt terminals, seven refined product terminals and three lubricants blending and packaging facilities. The Company also owns and leases a fleet of liquid and pressure trailers and tractors, which are used to transport refined fu! els, prop! ane, anhydrous ammonia and other products.

The Company�� Energy segment produces and sells (primarily wholesale) gasoline, diesel fuel, propane, asphalt, lubricants and other related products and provides transportation services. It obtains the petroleum products that it sells from its Laurel and McPherson refineries, and from third parties. In fiscal 2011, the Company obtained approximately 55% of the refined products it sold from its Laurel and McPherson refineries, and approximately 45% from third parties.

Ag Business

The Company�� Ag Business segment includes crop nutrients, country operations, grain marketing and oilseed processing. The revenues in its Ag Business segment primarily include grain sales. Its wholesale crop nutrients business sells approximately 5.6 million tons of fertilizer annually. Primary suppliers for the Company�� wholesale crop nutrients business include CF Industries, Potash Corporation of Saskatchewan, Mosaic Company, Koch Industries, Petrochemical Industries Company (PIC) in Kuwait and Belrusian Potash Company. The Company�� wholesale crop nutrients business sells nitrogen, phosphorus, potassium and sulfate based products. During fiscal 2011, the primary crop nutrients products the Company purchased were urea, potash, UAN, phosphates and ammonia. The wholesale crop nutrients business sells product to approximately 2,000 local retailers from New York to the west coast and from the Canadian border to Texas. Its largest customer is its own country operations business, which is also included in its Ag Business segment.

The Company�� country operations business purchases a variety of grains from its producer members and other third parties, and provides cooperative members and customers with access to a range of products, programs and services for production agriculture. Country operations operates 401 locations through 67 business units, the majority of which have local producer boards dispersed throughout Colorado, ! Idaho, Il! linois, Iowa, Kansas, Minnesota, Montana, Nebraska, North Dakota, Oklahoma, Oregon, South Dakota, Texas and Washington. Most of these locations purchase grain from farmers and sell agronomy, energy, feed and seed products to those same producers and others, although not all locations provide every product and service.

The Company is one of the country elevator operators in North America based on revenues. Through a majority of the Company�� locations, its country operations business units purchase grain from member and non-member producers and other elevators and grain dealers. Most of the grain purchased is sold through its grain marketing operations, used for livestock feed production or sold to other processing companies. For the year ended August 31, 2011, country operations purchased approximately 582 million bushels of grain, primarily wheat, corn and soybeans. Of these bushels, 558 million were purchased from members and 417 million were sold through its grain marketing operations. Its country operations business units manufacture and sell other products, both directly and through ownership interests in other entities. These include seed, crop nutrients, crop protection products, energy products, animal feed, animal health products and processed sunflower products.

The Company is the cooperative marketer of grain and oilseed based on grain storage capacity and grain sales, handling over 2.1 billion bushels annually. During fiscal 2011, it purchased approximately 60% of its total grain volumes from individual and cooperative association members and its country operations business, with the balance purchased from third parties. The Company arranges for the transportation of the grains either directly to customers or to its owned or leased grain terminals and elevators awaiting delivery to domestic and foreign purchasers. It primarily conducts its grain marketing operations directly, but do conduct some of its business through joint ventures.

The Company��! grain ma! rketing operations purchases grain directly and indirectly from agricultural producers primarily in the midwestern and western United States. The purchased grain is contracted for sale for future delivery at a specified location, and it is responsible for handling the grain and arranging for its transportation to that location. The Company owns and operates export terminals, river terminals and elevators involved in the handling and transport of grain. Its river terminals are used to load grain onto barges for shipment to both domestic and export customers via the Mississippi River system. These river terminals are located at Savage and Winona, Minnesota and Davenport, Iowa, as well as terminals in which it has put-through agreements located at St. Louis, Missouri and Beardstown and Havana, Illinois.

The Company�� export terminal at Superior, Wisconsin provides access to the Great Lakes and St. Lawrence Seaway, and its export terminal at Myrtle Grove, Louisiana serves the Gulf of Mexico market. In the Pacific Northwest, it conducts its grain marketing operations through TEMCO, LLC (a 50% joint venture with Cargill) which operates an export terminal in Tacoma, Washington, and primarily exports corn and soybeans. The Company owns two 110-car shuttle-receiving elevator facilities in Friona, Texas and Collins, Mississippi that serve large-scale feeder cattle, dairy and poultry producers in those regions.

For sourcing and marketing grains and oilseeds through the Black Sea and Mediterranean Basin regions to customers worldwide it has offices in Geneva, Switzerland; Barcelona, Spain; Kiev, Ukraine; and Vostok, Russia. In addition, it opened grain merchandising offices in fiscal 2011 in Budapest, Hungary; Novi Sad, Serbia; Bucharest, Romania; Sofia, Bulgaria; and a marketing office in Amman, Jordan. The Company has a deep water port in Constanta, Romania, a barge loading facility on the Danube River in Giurgiu, Romania, and an inland grain terminal at Oroshaza, Hungary. In addition! , it has ! an investment in a port facility in Odessa, Ukraine. In the Pacific Rim area, it has offices in Hong Kong and Shanghai, China that serve customers receiving grains and oilseeds from its origination points in North and South America. In South America, the Company has a grain merchandising offices to source grains in Sao Paulo, Brazil and Buenos Aires, Argentina. It sells and markets crop nutrients from its Geneva, Switzerland; Sao Paulo, Brazil; and Buenos Aires, Argentina offices.

The Company�� grain marketing operations purchased approximately 2.1 billion bushels of grain during fiscal 2011, which primarily included corn, soybeans, wheat and distillers dried grains with solubles (DDGS). Of the total grains purchased by its grain marketing operations, 866 million bushels were from its individual and cooperative association members, 417 million bushels were from its country operations business and the remainder was from third parties. The Company�� oilseed processing operations convert soybeans into soybean meal, soyflour, crude soybean oil, refined soybean oil and associated by-products. These operations are conducted at a facility in Mankato, Minnesota that can crush approximately 40 million bushels of soybeans on an annual basis, producing approximately 960 thousand short tons of soybean meal and 460 million pounds of crude soybean oil. The same facility is able to process approximately 1.1 billion pounds of refined soybean oil annually. Another crushing facility in Fairmont, Minnesota has a crushing capacity of over 50 million bushels of soybeans on an annual basis, producing approximately 1.2 million short tons of soybean meal and 575 million pounds of crude soybean oil.

The Company�� oilseed processing operations produce three primary products: refined oils, soybean meal and soyflour. Refined oils are used in processed foods, such as margarine, shortening, salad dressings and baked goods, as well as methyl ester/biodiesel production, and for certain industrial uses, ! such as p! lastics, inks and paints. Soybean meal has high protein content and is used for feeding livestock. Soyflour is used in the baking industry, as a milk replacement in animal feed and in industrial applications. It produces approximately 60 thousand tons of soyflour annually, and approximately 20% is further processed at its manufacturing facility in Hutchinson, Kansas. This facility manufactures unflavored and flavored textured soy proteins used in human and pet food products, and accounted for approximately 2% of its oilseed processing annual sales in fiscal 2011.

The Company�� soy processing facilities are located in areas with a strong production base of soybeans and end-user market for the meal and soyflour. It purchases virtually all of its soybeans from members. The Company�� oilseed crushing operations produce approximately 95% of the crude soybean oil that it refines, and purchases the balance from outside suppliers. Its customers for refined oil are principally large food product companies located throughout the United States. However, over 50% of its customers are located in the midwest. Its largest customer for refined oil products is Ventura Foods, LLC (Ventura Foods), in which it holds a 50% ownership interest. The Company�� sales to Ventura Foods accounted for 27% of its soybean oil sold during fiscal 2011. The Company also sells soymeal to approximately 325 customers, primarily feed lots and feed mills in southern Minnesota. In fiscal 2011, Interstate Commodities accounted for 12% of its soymeal sold. It sells soyflour to customers in the baking industry both domestically and for export.

Corporate and Other

The Company has provided open account financing to approximately 100 of its members that are cooperatives (cooperative association members). These arrangements involve the discretionary extension of credit in the form of a clearing account for settlement of grain purchases and as a cash management tool. CHS Capital, LLC makes seasonal and term! loans to! member cooperatives and individual producers. The Company�� wholly owned subsidiary, Country Hedging, Inc., is a registered Futures Commission Merchant and a clearing member of both the Minneapolis Grain Exchange and the Kansas City Board of Trade. Country Hedging provides full-service commodity risk management brokerage and consulting services to its customers, primarily in the areas of agriculture and energy.

The Company�� wholly owned subsidiary, Ag States Agency, LLC, is a full-service independent insurance agency. It sells insurance, including all lines of insurance including property and casualty, group benefits and surety bonds. Its approximately 2,000 customers are primarily agribusinesses, including cooperatives and independent elevators, energy, agronomy, feed and seed plants, implement dealers and food processors. Impact Risk Solutions, LLC, a wholly owned subsidiary of Ag States Agency, LLC, conducts the insurance brokerage business of Ag States Group.

The Company�� primary focus in the foods area is Ventura Foods, LLC (Ventura Foods) which produces and distributes vegetable oil-based products, such as margarine, salad dressing and other food products. Ventura Foods is 50% owned by the Company. Ventura Foods manufactures, packages, distributes and markets bulk margarine, salad dressings, mayonnaise, salad oils, syrups, soup bases and sauces, many of which utilize soybean oil as a primary ingredient. Ventura Foods has 11 manufacturing and distribution locations across the United States. Ventura Foods sources its raw materials, which consist primarily of soybean oil, canola oil, cottonseed oil, peanut oil and other ingredients and supplies, from various national suppliers, including its oilseed processing operations. Agriliance LLC (Agriliance) is owned and governed by CHS (50%) and Land O��akes, Inc. (50%).

The Company competes with ConocoPhillips, Valero, BP Amoco, Flint Hills Resources, CVR Energy, Western Petroleum Company, Marathon, ExxonMo! bil, Citg! o, Flint Hills Resources, U.S. Oil, Delek US Holdings, HollyFrontier Corporation, Sinclair Oil Corporation, Tesoro, Chevron, Koch Industries, Agrium, Archer Daniels Midland (ADM), Cargill, Incorporated (Cargill), Simplot, Helena, Wilbur Ellis, Land O��akes Purina Feed, Hubbard Milling, Columbia Grain, Gavilon, Bunge, Louis Dreyfus, Ag Processing Inc., Unilever, ConAgra, ACH Food Companies, Smuckers, Kraft and CF Sauer, Ken��, Marzetti and Nestle.

Advisors' Opinion:
  • [By Paul Ausick]

    ConAgra said on Wednesday that it will close two plants in New York by early 2015, cutting more than 400 employees. The company also expects to close its $4 billion flour mill merger in the second calendar quarter of 2014. Privately held Cargill and CHS Inc. (NASDAQ: CHSCP) will hold 44% and 12%, respectively, of Ardent Mills, while ConAgra will hold the other 44%. Combined sales of what will be the country’s largest milling operation total $4.3 billion.

Best Defensive Companies To Invest In 2015: American Eagle Outfitters Inc (AEO)

American Eagle Outfitters, Inc. (AEO, Inc) is a specialty retailer that operates in the United Sates and Canada, and online at ae.com. AEO, Inc operates under the American Eagle (AE), aerie by American Eagle (aerie), and 77kids by american eagle (77kids) brands. Through the Company�� family of brands, it offers clothing, accessories and personal care products. As of January 28, 2012, the Company operated 1,090 stores in the United States and Canada under the American Eagle Outfitters, aerie and 77kids brands. The Company also had 21 franchised stores operated by its franchise partners in 10 countries. During the fiscal year ended December 31, 2011, the Company opened 33 new stores. As of December 31, 2011, it operated in all 50 states, Puerto Rico and Canada. During fiscal 2011, the Company remodeled and refurbished a total of 106 AE stores.

AE Brand

The American Eagle Outfitters brand targets 15 to 25-year old men and women. Denim is the cornerstone of the American Eagle product assortment, which is complemented by other categories including sweaters, graphic t-shirts, fleece, outerwear and accessories. As of January 28, 2012, the Company operated 911 American Eagle Outfitters stores. During fiscal 2011, it opened 11 AE stores.

aerie by American Eagle

The Company�� aerie is a collection of Dormwear, intimates and personal care products for the AE girl. The collection is available in aerie stores throughout the United States and Canada, online at aerie.com and at select American Eagle stores. As of January 28, 2012, AEO, Inc operated 158 aerie stores. During fiscal 2011, it opened 10 aerie stores.

77kids by american eagle

77kids offers clothing and accessories for kid�� ages 2 to 14 and babies under the brand name little77TM. As of January 28, 2012, the Company operated 21 77kids stores. All 77kids clothing is backed by the brand�� 77wash and 77soft. During fiscal 2011, AEO, Inc opened 12 77kids stores.

AEO Direct

The Company's online business, AEO Direct, ships to 77 countries worldwide. The Company sells merchandise via its e-commerce operations, ae.com, aerie.com and 77kids.com, which are extensions of the lifestyle that it conveys in its stores. As of December 31, 2011, AEO Direct shipped to 77 countries worldwide. In addition to purchasing items online, customers can experience AEO Direct in-store through Store-to-Door. Store-to-Door enables store associates to sell any item available online to an in-store customer in a single transaction. The Company accepts PayPal and Bill Me Later as a means of payment from its ae.com, aerie.com and 77kids.com customers.

Advisors' Opinion:
  • [By Howard Gold]

    Macy's isn't alone. Apparel retailers Urban Outfitters (URBN) and The Gap (GPS) both have had sharp corrections after, respectively, tripling and more than quadrupling from their lows. Teen retailers Abercrombie & Fitch (ANF), Aeropostale (ARO) and American Eagle Outfitters (AEO) have had their clocks cleaned as even teenagers��he canaries in the coal mine of discretionary spending—have tightened their purse strings.

  • [By Johanna Bennett]

    American Eagle Outfitters (AEO) fell 9.5% to close at $14.85 after the teen retailer offered up a muted outlook for the current quarter, which includes the critical holiday season.

Best Defensive Companies To Invest In 2015: MTS Systems Corporation(MTSC)

MTS Systems Corporation supplies test systems and industrial position sensors in the Americas, Europe, and Asia. The company?s Test segment provides testing solutions, including road simulators for durability simulation; tire performance and rolling resistance measurement systems; moving road-plane systems and balances use for aerodynamics measurements in wind tunnels; systems for the physical characterization of materials, such as ceramics, composites, and steel; systems to test durability and performance of implants, prostheses, and other medical and dental materials and devices. This segment also offers products, systems, and software to perform static and fatigue testing of aircraft and space vehicles; systems for structural engineering, including high force static and dynamic testing; and seismic simulation tables to test the designs of structures and set building codes. In addition, it provides various accessories and spare parts, as well as installation, calibratio n, maintenance, training, and consulting services. This segment serves automobile, truck, motorcycle, motorsports vehicle, construction equipment, agricultural equipment, rail, and off-road vehicle manufacturers and their suppliers, as well as power generation, aerospace, bio-medical, wind energy, structural engineering, and petroleum industries. The company?s Sensors segment manufactures products utilizing magnetostriction technology for manufacturers of mobile equipment, plastic injection molding machines, and wood product processing equipment, as well as to steel mill, fluid power, oil and gas, medical, and alternative energy industries. It also offers products to measure fluid displacement for customers in the process industries. The company sells its products through direct sales organization, and independent representatives and distributors, as well as through the Internet and catalogs. MTS Systems Corporation was founded in 1966 and is headquartered in Eden Prairie, Minnesota.

Advisors' Opinion:
  • [By Evan Niu, CFA]

    What: Shares of MTS Systems (NASDAQ: MTSC  ) dropped by as much as 13% today after the company reported disappointing earnings.

    So what: Revenue in the fiscal second quarter came in at $137.7 million, which topped the $135 million analysts were expecting. However, the bottom-line result of $0.69 per share was significantly worse than the $0.86-per-share consensus forecast. The sensors segment continues to face soft market conditions.

  • [By Brian Pacampara]

    Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, road simulator specialist MTS Systems (NASDAQ: MTSC  ) has earned a coveted five-star ranking.

Best Defensive Companies To Invest In 2015: Furiex Pharmaceuticals Inc (FURX)

Furiex Pharmaceuticals, Inc. is a drug development collaboration company. The Company�� product pipeline includes two marketed products and three programs in development, including late-stage compounds, in multiple therapeutic areas. Its programs include Priligy, Alogliptin Nesina, Alogliptin/Actose Combination, Alogliptin/Metformin Combination, Fluoroquinolone, Mu Delta and PPD 10558. In November 2011, it acquired full exclusive license rights to develop and commercialize the compound MuDelta under its existing development and license agreement with Janssen Pharmaceutica N.V.

Priligy (dapoxetine) is a drug developed for the on-demand treatment of premature ejaculation (PE). Dapoxetine is a short-acting, selective serotonin reuptake inhibitor (SSRI) designed to be taken only when needed one to three hours before sexual intercourse is anticipated rather than every day. Nesina (alogliptin) is a drug for the oral treatment of type 2 diabetes (T2D). Alogliptin is a DPP-4 inhibitor that slows the inactivation of incretin hormones glucagon-like peptide-1 (GLP-1) and glucose-dependent insulinotropic peptide (GIP).

Fluoroquinolone drug candidate is a Phase II-ready novel fluoroquinolone antibiotic that is being developed by the Company for the treatment of complicated skin and skin structure infections, such as abscesses that occur deep in the skin layers and respiratory infections. This antibiotic has a spectrum of activity and is able to treat methicillin-resistant staphylococcus aureus (MRSA) infections. The Company is developing both oral and intravenous (IV) formulations. The Company is developing Mu Delta for treatment of diarrheal predominant irritable bowel syndrome (d-IBS). The Company is conducting a Phase II study on an oral formulation of Mu Delta.

The Company is developing PPD 10558 for the treatment of dyslipidemia. PPD 10558 has shown muscle safety in preclinical studies by minimizing the delivery of the drug to the muscle. The Company has filed an inve! stigational new drug (IND) application with the United States Food and Drug Association and completed five clinical studies.

Advisors' Opinion:
  • [By John Udovich]

    Yesterday, small cap drug development collaboration company Furiex Pharmaceuticals Inc (NASDAQ: FURX) surged 129.91% after announcing that its experimental drug had alleviated diarrhea and abdominal pain caused by irritable bowel syndrome in two studies, meaning its worth taking a closer look at the stock because that�� a condition that effects millions of people (with no other effective drug to treat it) plus take a look at the�performance of biotech benchmarks iShares NASDAQ Biotechnology Index ETF (NASDAQ: IBB) and SPDR S&P Biotech ETF (NYSEARCA: XBI).

  • [By Lisa Levin]

    Furiex Pharmaceuticals (NASDAQ: FURX) shares moved up 28.41% to $102.92. The volume of Furiex Pharmaceuticals shares traded was 2285% higher than normal. Forest Labs (NYSE: FRX) announced its plans to buy Furiex Pharma for up to $1.46 billion.

Best Defensive Companies To Invest In 2015: Humboldt Capital Corp (HMB)

Humboldt Capital Corporation (Humboldt) is an investment company with its holdings concentrated in the resource sector. The Company�� principal business is to purchase securities for investment income and capital appreciation over the long term. The Company provides early-stage risk capital, business experience and guidance to junior oil and gas enterprises. Humboldt is engaged in making investments in a range of very small to large companies, which are in turn engaged in the exploration, development, production and acquisition of crude oil and natural gas or minerals, or companies, which provides services to such companies. Humboldt also makes investments in other businesses that have potential for growth. Humboldt has investments in western Canadian energy companies, international oil and gas companies and in the mining sector, with particular emphasis on companies exploring or producing commodities. Advisors' Opinion:
  • [By Tom Stoukas]

    Ladbrokes (LAD) Plc plunged to its lowest price in almost a year after issuing a profit warning for its digital division. Thomas Cook Group Plc slid 6.6 percent after it said winter bookings have slowed. Hennes & Mauritz AB (HMB), Europe�� second-biggest clothing retailer, rose to its highest price after posting third-quarter profit that beat analysts��estimates.

  • [By Inyoung Hwang]

    EasyJet Plc and International Consolidated Airlines Group SA climbed as oil prices fell after the U.S. and Russia agreed on a plan to destroy Syrian chemical weapons. Hennes & Mauritz AB (HMB) advanced to a three-year high after sales topped estimates. Remy Cointreau SA (RCO) soared the most in almost four years as Chinese cognac shipments increased.

  • [By Namitha Jagadeesh]

    Zurich Insurance Group AG (ZURN) lost 3.6 percent after second-quarter profit missed analysts��estimates. Hennes & Mauritz AB (HMB) declined the most in seven weeks as Europe�� second-biggest clothing retailer reported worse-than-expected sales. BG Group Plc, which derives 20 percent of its oil-and-gas production from Egypt, slipped 2.4 percent as the death toll from nationwide violence in the most populous Arab country climbed above 500.

Friday, May 23, 2014

3 Stocks Spiking on Big Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Hated Earnings Stocks You Should Love

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Rocket Stocks Ready for Blastoff

With that in mind, let's take a look at several stocks rising on unusual volume recently.

On Assignment

On Assignment (ASGN) provides short- and long-term placement of contract, contract-to-hire and direct hire professionals in the U.S., Europe, Canada, China, Australia and New Zealand. This stock closed up 1.4% at $35.31 in Wednesday's trading session.

Wednesday's Volume: 1.15 million

Three-Month Average Volume: 386,568

Volume % Change: 188%

From a technical perspective, ASGN trended modestly higher here right above some near-term support levels at $34.27 to its 200-day moving average of $33.53 with above-average volume. This spike higher on Wednesday is starting to push shares of ASGN within range of triggering a near-term breakout trade. That trade will hit if ASGN manages to take out its 50-day moving average of $36.04 to some more near-term overhead resistance at $36.95 with high volume.

Traders should now look for long-biased trades in ASGN as long as it's trending above some key near-term support levels at $34.27 or above its 200-day a $33.53 and then once it sustains a move or close above those breakout levels with volume that's near or above 386,568 shares. If that breakout hits soon, then ASGN will set up to re-test or possibly take out its next major overhead resistance levels at $38.05 to $38.18. Any high-volume move above those levels will then give ASGN a chance to re-test or possibly take out its 52-week high at $39.86.

ARM Holdings

ARM Holdings (ARMH), together with its subsidiaries, designs microprocessors, physical intellectual property and related technology and software. This stock closed up 3.5% at $44.35 in Wednesday's trading session.

Wednesday's Volume: 5.62 million

Three-Month Average Volume: 1.54 million

Volume % Change: 250%

From a technical perspective, ARMH ripped higher here right above its recent low of $42.27 with strong upside volume flows. This stock has been downtrending badly for the last month and change, with shares moving lower from its high of $52.71 to its low of $42.27. During that downtrend, shares of ARMH have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of ARMH have now started to bounce off that $42.27 low and it looks ready to reverse its recent downtrend and enter a new uptrend. Market players should now look for a continuation move higher in the short-term if ARMH manages to take out Wednesday's high of $44.40 with strong upside volume flows.

Traders should now look for long-biased trades in ARMH as long as it's trending above Wednesday's low of $43.38 or above its recent low of $42.27 and then once it sustains a move or close above $44.40 with volume that's near or above 1.54 million shares. If we get that move soon, then ARMH will set up to re-test or possibly take out its next major overhead resistance levels at $46.54 to its 50-day moving average of $47.49. Any high-volume move above those levels will then give ARMH a chance to tag its next major overhead resistance levels at $49 to $50.27.

TJX Companies

TJX Companies (TJX) operates as an off-price apparel and home fashions retailer in the U.S. and internationally. This stock closed up 4.9% at $56.60 in Wednesday's trading session.

Wednesday's Volume: 11.88 million

Three-Month Average Volume: 3.62 million

Volume % Change: 199%

From a technical perspective, TJX bounced sharply higher here right above its recent low of $53.87 with heavy upside volume. This move is quickly pushing shares of TJX within range of triggering a big breakout trade. That trade will hit if TJX manages to take out its recent gap-down-day high of $56.90 with high volume.

Traders should now look for long-biased trades in TJX as long as it's trending above Wednesday's low of $54.31 and then once it sustains a move or close above $56.90 with volume that's near or above 3.62 million shares. If that breakout hits soon, then TJX will set up to re-fill some of its recent gap-down-day zone that started just above $58.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>Trade These 5 Airline Stocks for Flyaway Gains



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>>5 Toxic Stocks to Sell Before It's Too Late

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.


Thursday, May 22, 2014

The Best Stocks to Play the Housing Trend: AvalonBay Communities, Essex Property Trust, and Equity R


Source: Flickr / archer10.

The U.S. Census Bureau's recent housing construction report for April showed a 43% month over month surge in the number of multi-family housing starts, while single-family homes barely moved, showing a paltry 0.8% increase. Since last April, authorizations for buildings with five or more units rose by 29%, compared to a 12% increase in single-family houses.

Apartment REITs: The new housing play?
The upturn in the multifamily space looks like the new normal, with single-family home ownership below the 50-year average of 65.4% -- and some analysts predicting that it will fall even further.

With 93% of the multifamily units breaking ground in the first quarter slated for rental, apartment REITs like AvalonBay Communities (NYSE: AVB  ) , Essex Property Trust Inc. (NYSE: ESS  ) and Equity Residential (NYSE: EQR  ) are looking like a great way to invest in the new "renter nation".

Stocking up on rentals
The apartment REIT sector has been buying up a storm, investing in $1.5 billion apartments in just the first quarter – not counting Essex Property's purchase of BRE Properties, which closed on April 1. That deal, the terms of which included $6.2 billion in cash and stock, created the biggest REIT on the west coast. The combined value of the company is now a little over $1 billion.

In late 2012, AvalonBay and Equity Residential banded together to purchase Archstone, the huge, high-end multifamily landlord whose acquisition in 2007 helped bankrupt Lehman Brothers. In addition to acquiring Archstone's nearly $10 billion in debt, the two REITs put up $6.5 billion in cash and stock to close the deal. AvalonBay acquired 22,000 apartments, while Equity took on 23,000.

As for 2014, AvalonBay management notes that it is on track to deliver over 5,000 new apartments by the end of the year, and Equity bought a five-year-old apartment project in Los Angeles in the first quarter, after selling one of their older San Diego assets in late 2013. Equity is planning to continue in this vein, selling its older, more suburban properties in order to buy apartments in well-populated urban locations.

Source: Flickr / Kevin Dooley.

Apartment REITs are having a great year
All in all, this sector is having a wonderful year. Vacancies are the lowest in the sector since 2001, and rents are rising nicely, averaging $1,089 per month last quarter, compared to $1,055 one year earlier. In its first-quarter earnings call, AvalonBay management noted that, as the job market has begun to recover, the stronger economy will be able to support not only higher rents, but more apartment deliveries, as well .

So far, all three REITs have gained at least 19% since the beginning of the year, and yields are sweet, at around 3%. According to NAREIT, the apartment REIT sector was up 16.4% from January to April of this year.

With the economy healing and the employment market improving, rising rents will likely fuel higher dividends, too. For investors looking for a place to put their real-estate investment dollars, the multifamily sector looks hard to beat.

More great dividend stocks for the next decade
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