Monday, December 30, 2013

Harman International: Expect More Volatility as Apple, Google Target Autos

The Consumer Electronics Show begins next week–and it could have a big impact on the shares of Harman International (HAR), as Google (GOOG) and Apple (AAPL) look to make inroads in the auto space.

Agence France-Presse/Getty Images

The Wall Street Journal reports on Google and Apple’s plans:

Technology giants Google Inc. and Apple Inc. are about to expand their battle for digital supremacy to a new front: the automobile.

Next week at the Consumer Electronics Show in Las Vegas, Google and German auto maker Audi AG plan to announce that they are working together to develop in-car entertainment and information systems that are based on Google’s Android software, people familiar with the matter said.

Baird’s David Leiker and team explain the impact on Harman International:

Online Wall Street Journal story titled, "Google, Apple Forge Auto Ties" ahead of the Consumer Electronics Show likely increases the volatility of Harman's stock as these details are fleshed out over the next week. We remain firm that Apple/Google are likely to use partners (Harman, for example) to expand their presence in the automotive infotainment space; the story states Google's desire to use other technology partners to establish Android as part of the technology infrastructure of the vehicle.

Shares of Harman have dropped 0.7% to $82.79 today at 9:36 a.m., while Apple has fallen 0.8% to $555.79 and Google is little change at $1118.59.

Friday, December 27, 2013

Tesla (TSLA) Recovers After Fire Fears Extinguished

NEW YORK (TheStreet) -- Telsa (TSLA) shares partly recovered from losses throughout the week after CEO Elon Musk eased fears on automobile safety. On Thursday, shares  plunged more than 12% since the beginning of the week, the dual effect of a rare analyst downgrade and a viral video of a Tesla car on fire which brought into question battery flammability.

On the company blog, Musk wrote, "The combustion energy of our battery pack is only 10% of the energy contained in a gasoline tank and is divided into 16 modules with firewalls in between. As a consequence, the effective combustion potential is only about 1% that of the fuel in a comparable gasoline sedan."

The footage, posted to YouTube on Wednesday, showed a Tesla Model S on fire, the result of a collision with a metal object on a Washington State highway.

On Tuesday, Tesla was downgraded to "neutral" by Robert Baird, with a price target of $187, citing execution risks. In other Tesla-related news, the Palo Alto, Calif.-based automaker is in discussions with Samsung for the supply of battery technology to its line of environmental vehicles, reports Reuters. A Tesla spokesperson confirms the company is meeting with several firms to determine the best battery technology compatible with current and future Tesla models. Shares of Tesla Motors Inc stock were up today by $7.67 (4.43%) as of the close of trading. By the end of trading, 14.33 million shares changed hands compared to its average daily volume of 10.55 million shares. The stock ranged in price between $172.65 to $181.18 after opening the day at $176.40 as compared to the previous trading day's close of $173.31. Overall, Tesla Motors Inc led the S&P 500 which was up 0.71%.  TheStreet Ratings team rates Tesla Motors Inc as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: "We rate Tesla Motors Inc (TSLA) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been poor profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: The gross profit margin for Tesla Motors Inc is currently lower than what is desirable, coming in at 30.28%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -7.52% is significantly below that of the industry average. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Automobiles industry and the overall market, Tesla Motors Inc's return on equity significantly trails that of both the industry average and the S&P 500. Tesla Motors Inc reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, Tesla Motors Inc reported poor results of -$3.70 vs. -$2.52 in the prior year. This year, the market expects an improvement in earnings ($0.59 vs. -$3.70). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Automobiles industry. The net income increased by 71.1% when compared to the same quarter one year prior, rising from -$105.6 million to -$30.5 million. This stock has increased by 584.96% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in TSLA do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months. You can view the full analysis from the report here: TSLA Ratings Report Written by Keris Alison Lahiff.

Friday, December 20, 2013

Video Bill Gross Comments on Fed's Decision to Taper


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Tuesday, December 17, 2013

Abenomics Year in Review Abe and Yen Get a Second Chance

Second Chances
Prime Minister Shinzo Abe embodies the Japanese economic comeback story. After all, he himself has come back for a second round as the head of the world's third-largest economy.

Shinzo Abe was elected for a second time at the end of 2012. He was ready to make his second attempt at the the Prime Minister role a more impactful than his previous tenure. This time he would not have to follow one of the greatest outliers in Japanese politics: Rockstar like Junichiro Koizumi. Abe as leader of the LDP, which was ousted in government for the first time in decades, had the momentum to restore the party to power. Lessons were learnt from his first time as PM. Abe even hired Koizumi's Chief Secretary to boost how he is perceived. He would be bold this time around, and he made bold promises to the Japanese people.

Head of the Bank of Japan
Deflation has gripped Japan for the last two decades. The more the price of goods continues to drop, consumers will await in the sidelines. Lower consumption translates to lower revenues for corporations and less wage increases as even the threat of inflation is not present. The key to Abe's economic revival has been to target inflation straight on. He set a 2 percent target that sent shockwaves through monetary policy circles. The Bank of Japan governor Shirakawa did not appreciate the comments that the central bank was not doing enough, when it was matching the Fed and the ECB almost step by step. Abe knew Shirakawa was not going to be the man he needed at the helm of the BoJ if he wanted to drive inflation higher. Shirakawa's term ended in March, 2013.

When Abe won the elections he had the political strength to reiterate the 2 percent inflation target. This sent a signal to potential central bank governor candidates. This was the top priority for the Abe government. The head of the Asian Development Bank Haruhiko Kuroda took the challenge and issued statements around the fact that the goal was possible in a 2 year time frame. He was confirmed in February 2013.

Abenomics: Three Arrows

The Shinzo Abe led government has devised a three-part approach to fixing the Japanese economy via three “arrows”: monetary stimulus, government spending, and structural reforms.

With Kuroda at the head of the BoJ the first arrow was fired in March. The Bank of Japan announced its plans to double the monetary base by buying more government bonds to reach the 2 percent inflation target. This immediately had a positive side effect. The Japanese Yen dropped and Japanese corporations enjoyed both a strong domestic stock market and healthier exports.

Yen Weakness Has Emerging Markets Calling For Currency War
The Yen has kept to the same direction that Abe has pointed to with his statements: down. In the year that Abe has been in power the yen has fallen more than 20% versus the U.S. dollar. A weaker currency has helped to boost exports and drive the local stock exchange to five-year highs. Finance ministers from around the world cried foul when the Japanese plan was announced. Brazil's FinMin was quoted as saying this was an act of currency war. The Group of 7 disagreed. They backed Japan, and as long the monetary policy measures are domestic, then it's not currency manipulation. During followup G7 and G20 meetings that message has been reiterated.

Forex Rate Graph Tuesday, December 17, 2013

In order for those trends to continue, however, they must be followed by deeper structural changes. Though the Japanese trade deficit continues to expand as import prices inch upward. There has been a lot of proposals and planning around the other two arrows. The second arrow relates to government spending and how to avoid the paradox that the government needs to spend less as it already is heavily indebted, but at the same time stimulate the economy more. The Abe government has approved a sales tax hike that is responsible, but has hedged it with a stimulus plan to offset any growth slowing impact. Analysts are not as optimistic about this arrow as the monetary policy one as it has been somewhat compromised and there are doubts about it's the size of the stimulus and the timing of the sales tax.

Japan exports rose 16.5 percent in October from a year ago. The currency has devaluated close to 20% this year after the start of Abenomics in March. The Japanese economy has only partially benefited from the lower currency as the stock market and exports have risen. The flip side of that is that Japan is importing energy and food at a higher rate, which in fact have turned the country famous trade surplus into a deficit. Imports in the same period have risen 19 percent.

Gross Domestic Product in the third quarter was stronger than expected at 1.9%. Compared to the previous quarter gain of 3.8% it was a disappointment. Shinzo Abe continues to focus his efforts on inflation. Japan has been caught in a deflationary environment for over two decades. Importing inflation via a falling currency with energy and food prices denominated in foreign currencies have boosted the CPI, but its sustainability depends on the market having confidence that the yen will continue to weaken.

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The first part of the Abe plan seems to be working. Boosted by the Bank of Japan the monetary policy has driven down the price of the currency and helped inflation rise. The other two parts of the plan have failed to gain traction. Wages need to go higher in order to keep up with inflation or consumer won't spend. Structural reforms need to be added to unlock the labour and direct investment market.

Japan's Self Defence Force
The geopolitical risk in the islands dispute between Japan and China hit a new high this year. China presented its new Air Defence Zone that includes the islands and reported the US had violated the unilaterally defined Air Zone. Japan's army has been a difficult subject from the Japanese since the end of the second world war, when a new constitution was signed that prevented Japan from forming an army. There is of course a work around, and that is what the Self Defence Force stands for. A change in the constitution is in the cards because the escalation in military activity and the fact that the US is put in a difficult decision of picking between two powerful allies.

The post Abenomics Year in Review Abe and Yen Get a Second Chance appeared first on MarketPulse.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Futures Forex Economics Markets

Originally posted here...

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Monday, December 16, 2013

5 Sure-Fire Dividend Stocks to Buy

Twitter Logo RSS Logo Jim Woods Popular Posts: 5 Sure-Fire Dividend Stocks to BuyTSLA Stock 2013 Timeline – Tesla Motors Goes on a Wild RideGoogle Still One of the Best Stocks to Buy Recent Posts: 5 Sure-Fire Dividend Stocks to Buy TSLA Stock 2013 Timeline – Tesla Motors Goes on a Wild Ride Should I Buy AAPL Stock? 3 Pros, 3 Cons View All Posts

When it comes to buying stocks with yield power, a lot of investment pros like to get a little tricky. By tricky, I mean trying to buy all kinds of exotic high-yield assets such as energy Master Limited Partnerships, real estate investment trusts, private equity partnerships, etc.

CashRich185 Source: Flickr

Now, I'm not against these securities, as many have proven to be big winners in 2013. What I am against is advisors shunning the tried-and-true, sure-fire dividend stocks that have proven to deliver consistently over the years, both on the yield front and in terms of capital appreciation.

I realize that many old-guard dividend stocks aren't the sexiest way out there to generate income. But the way I see it, there's nothing sexier than a reliable quarterly payout that A) you don't have to worry about coming in, and B) that also offers you the potential for strong share-price appreciation and total return.

With that dual mandate in mind, here are five sure-fire dividend stocks to buy.

AT&T

AT&T-t-stock-dividend-stocksDividend yield: 5.4%
YTD total return: 1%
Dividends paid since 1984

The iconic telecom company has been around a very long time. It has also paid dividends every quarter for decades. In fact, AT&T (T) is one of those stalwart entities with a storied corporate history that continues providing telecom services to each new generation of customers around the world.

The latest high-profit area for AT&T is cellular phone service, but who knows where the possible revenue streams will come from over the next decade or so. One thing for sure is that wherever there's money to be made in telecom services, AT&T has the fiscal might and management acumen to adapt and overcome to virtually any challenge the future may pose.

Coca-Cola

Coca-ColaDividend yield: 2.9%
YTD total return: 8%
Dividends paid since 1893

No brand is more ubiquitous around the world than Coca-Cola (KO). The beverage giant can be found even in the far reaches of the third world. And as third-world nations become second-world nations — and second-world nations grow their way into first-world status — we are liable to see the already mammoth Coca-Cola brand become exponentially bigger.

KO stock has been a huge winner over the past decade, with gains continuing to be solid this year. However, the fizz is by no means over, and that means investors could continue tasting these level of returns for years to come.

Exxon Mobil

Exxon Mobil XOMDividend yield: 2.6%
YTD total return: 13%
Dividends paid since 1882

Oil is the lifeblood of gargantuan global behemoths, and Exxon Mobil (XOM) provides that oil to our thirsty world. This is one of the most profitable companies in history, and that's because Exxon has managed to keep the cost of finding, extracting and refining oil into usable petroleum products well below the price at which it can sell those products.

Global demand from burgeoning emerging markets will be the key to Exxon Mobil's growth in the years to come, and if those years are similar to those of the past, XOM stock will continue fueling investors' portfolios.

Johnson & Johnson

jnj stock Johnson & JohnsonDividend yield: 2.9%
YTD total return: 30%
Dividends paid since 1944

More and more of us are approaching our golden years, and this massive demographic shift by the Baby Boom generation means more demand for healthcare products like the kind made by Johnson & Johnson (JNJ). The company's diverse product lines — everything from oral care to pain relievers to prescription arthritis medications — means that whatever ails the world, Johnson & Johnson is likely to provide a remedy.

I suspect that there will be many more billions of dollars in healthcare products consumed by a growing global population over the next decade, and that means JNJ stock could be just what the doctor ordered for maintaining a healthy income portfolio.

McDonald's

mcdonald's-mcd-stockDividend yield: 3.4%
YTD total return: 8%
Dividends paid since 1976

There's nothing more iconic in the fast-food world than a Big Mac, fries and a chocolate shake. This tasty, profitable combination is the of restaurant giant McDonald's (MCD), a company that has made a mission out of providing fast food to more countries than any other restaurant chain in history.

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In fact, McDonald's global growth has really helped fuel the company's profits over the past decade, and that growth has helped MCD stock supersize its way to huge gains. As citizens across the globe continue to get a taste of McDonald's, investors will likely continue getting a taste of those huge MCD share price gains.

As of this writing, Jim Woods was long KO and MCD.

Sunday, December 15, 2013

It's Showtime for Norfolk Southern

Norfolk Southern (NYSE: NSC  ) is expected to report Q1 earnings on April 23. 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 Norfolk Southern's revenues will wither -0.6% and EPS will decrease -4.9%.

The average estimate for revenue is $2.77 billion. On the bottom line, the average EPS estimate is $1.17.

Revenue details
Last quarter, Norfolk Southern chalked up revenue of $2.68 billion. GAAP reported sales were 4.0% lower than the prior-year quarter's $2.80 billion.

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

EPS details
Last quarter, non-GAAP EPS came in at $1.30. GAAP EPS of $1.29 for Q4 were 9.2% lower than the prior-year quarter's $1.42 per share.

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

Recent performance
For the preceding quarter, gross margin was 35.3%, 120 basis points worse than the prior-year quarter. Operating margin was 26.2%, 210 basis points worse than the prior-year quarter. Net margin was 15.4%, 180 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $11.34 billion. The average EPS estimate is $5.57.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,229 members out of 1,258 rating the stock outperform, and 29 members rating it underperform. Among 343 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 338 give Norfolk Southern a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Norfolk Southern is outperform, with an average price target of $73.43.

If you're interested in transportation companies like Norfolk Southern, then you should check out our special report that features 3 companies who depend on, and invest in, that industry. Learn the basic financial habits of millionaires next door and get these 3 focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

Add Norfolk Southern to My Watchlist.

How to Copy Hedge Funds (and Collect Some Big Dividends)

Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to add some stocks that are popular with hedge-fund managers to your portfolio, the Global X Top Guru Holdings Index ETF (NYSEMKT: GURU) could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously.

The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The Global X ETF's expense ratio -- its annual fee -- is 0.75 %. It's also very tiny, so if you're thinking of buying, beware of possibly large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.

This ETF is way too new to have a sufficient track record to assess. As with most investments, of course, we can't expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver. The ETF aims to hold the stocks owned by a select group of hedge funds with an equity focus and relatively long holding periods, and it focuses on those funds' strongest-conviction holdings.

Why Gurus?
If you're interested in hedge fund investing, know that it's not for most of us. You typically have to be a rather wealthy sort, and if you're able to invest in such funds, they typically take 2% of your total asset value every year, plus 20% of your annual profits. This ETF, though, simply takes less than 1% of your investment each year.

More than a handful of Guru-approved companies had strong performances over the past year. Hartford Financial Services Group (NYSE: HIG  ) and Motorola Solutions (NYSE: MSI  ) each surged 31%. Hartford has been shifting its focus from annuities, retirement planning, and life insurance toward property and casualty insurance. It has been tackling its significant debt, and its fourth-quarter earnings exceeded expectations. The stock has exhibited volatility, but some see it as undervalued now, with a forward P/E ratio of just 8.

Motorola Solutions delivers communication infrastructure, devices, software, and services to governments and businesses globally. One offering, for example, is public safety radio systems. It recently hit a 52-week high and its fourth-quarter report featured double-digit earnings gains and revenue up 6% as well. Some worry about R&D cutbacks, while others like that it's borrowing money to buy back shares. (That's not always smart, if shares are not undervalued, though. And Motorola Solutions has recently been trading at a forward P/E of 14.6%.)

Mortgage REIT Annaly Capital Management (NYSE: NLY  ) gained 15%, and has many investors drooling over its 11.3% dividend yield. But it has also lost some fans, due to worries about rising interest rates hurting the company or its adding more risk by expanding beyond agency-backed securities. Some even worry about nepotism in the company and outsized compensation.

Other companies didn't do as well last year, but could see their fortunes change in the coming years. Allscripts Healthcare Solutions (NASDAQ: MDRX  ) , which delivers electronic health records (EHR) products and services, slid 20%. The company has been lagging its peers, it was a poor performer in 2012, and its latest earnings report wasn't too impressive. On the plus side, some of its insiders have been buying shares.

The big picture
A well-chosen ETF can grant you instant diversification across any industry or group of companies -- and make investing in and profiting from it that much easier.

There's no question Annaly Capital's double-digit dividend is eye-catching. But can investors count on that payout sticking around? With the Federal Reserve keeping interest rates at historically low levels, Annaly has had to scramble to defend its bottom line. In The Motley Fool's premium research report on Annaly, senior analysts Ilan Moscovitz and Matt Koppenheffer uncover the key challenges the company faces and divulge three reasons investors may consider buying it. Simply click here now to claim your copy today!

Saturday, December 14, 2013

QUALCOMM, Inc. (NASDAQ:QCOM): Becoming A Core Holding?

QUALCOMM, Inc. (NASDAQ:QCOM) stands out as one of the few green stocks today. The NASDAQ 100 member was upgraded by Citi. Analyst Ehud Gelblum believes the QCOM is a "Buy" today, up from yesterday's "Neutral," and put a fresh price target of $88 on QCOM as the company begins its relationship with China Mobile.

QUALCOMM Incorporated designs, develops, manufactures, and markets digital telecommunications products and services – essentially, they make chips so that your wireless devices work faster.

Gelblum tells clients, "We believe the complexity of LTE is accelerating with new major technologies being added to the standard continuously – from carrier aggregation and envelope tracking last year to TDD and FDD, WiFi integration, small cells and LTE in unlicensed bands in 2014 – allowing QCOM's outsized R&D budget and 2-yr head start in LTE to put even more distance between itself and competitors."

[Related -QUALCOMM, Inc. (QCOM): Did Goldman Lowball With $80 Price-Target?]

To justify his new opinion, "Qualcomm should continue to benefit from the global 4G LTE adoption cycle as 175M or just 3% of the total worldwide wireless subs should be on LTE by YE'13, per the GSMA, a number we expect to be north of 40% by 2018. LTE subs should grow at a staggering 55% CAGR through 2019 while 3G subs should grow to 52% of the total from just 24% today as 2G, where QCOM earns no revenue, continues to shrink. We calculate this remaining 2G to 3G/4G conversion opportunity is conservatively worth $7B to topline and $2.00 to EPS."

[Related -Qualcomm (QCOM) Guidance Raises Questions]

Let's take a look at what an additional $7 billion in revenue and $2.00 in EPS could mean for QCOM's shares.

In the last five-years, the semiconductor company was valued from 4.84 to 8.42 times sales (P/S) with an average of 6.15. An additional $7 billion in revenue by 2019 could mean QUALCOMM shares would tack on $20.05 using the five-year low P/S ratio, $34.88 with the half-decade high ! P/S ratio, or $25.48 with the average price-to-sales ratio.

We see much stronger numbers when considering the tech company's recent price-to-earnings (P/E) history. Two bucks in earnings would add $31.44 with QCOM's five-year low P/E of 15.72, $49.62 more with the average multiple of $24.81, and a whopping $100.22 using the half-decade high P/E of 50.11.

It's important to remember that Gelblum calls his estimates "conservative," especially considering China Mobile is the country's largest wireless operator.

Overall: QUALCOMM, Inc. (NASDAQ:QCOM) offers compelling upside on a P/S or P/E basis according to Ehud Gelblum's analysis. If his numbers prove to be conservative, then iStock would expect QCOM to trade at or above its historical price-to-earnings and price-to-sales ratios.

Thursday, December 12, 2013

Super Bowl ads: E-Trade baby, GoDaddy Girls, Ja…

Super Bowl viewers may notice something missing during the commercial breaks this year: famous icons.

At least three familiar advertising icons from past Super Bowls -- the E-Trade baby, the GoDaddy Girls and Subway's Jared -- will not show up this go-round. E-Trade announced Thursday that it's out of the game and Subway also said weeks ago that it's focusing on the Winter Olympics, instead. GoDaddy is back in, but it's ads will go a totally different direction and nix the sexy gals.

"We may notice the changing of an era in Super Bowl advertising at some point, but this probably isn't it," says Robert Thompson, pop culture professor at Syracuse University. "They all will be replaced by a long, long line of people willing to get into the one tent that includes 110 million viewers."

While some viewers may take note of the absence of the E-Trade baby, the GoDaddy Girls and even Jared, while watching the Feb. 2 game broadcast on Fox, they won't necessarily be clamoring for their return, says Thompson. "They're not the Clydesdales," says Thompson, in reference to the high-stepping Budweiser horses that have showed in Super Bowl ads for years.

Even then, says Thompson, E-Trade should think very hard before it throws its baby out with the bathwater. The brand's smarty-allecky, chubby-cheeked baby, has been its Super Bowl ticket to fame since 2007. "That baby is really, really associated with E-Trade," says Thompson. "I can't imagine them abandoning that entirely."

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E-Trade -- which recently changed ad agencies -- is mostly mum about the baby's future. "Stay tuned," was the e-mailed response from Rich Muhlstock, senior vice president of branding and acquisition at E-Trade.

The E-Trade baby has not appeared in E-Trade commercials for months.

In any case, Muhlstock says, E-Trade wants to focus less on TV. "We will leverage other media, espe! cially digital, social and mobile channels," he says, in a statement.

GoDaddy, meanwhile, is putting its hot babes on ice. "The women you'll see in our Super Bowl commercials this year will be super smart, successful small business owners," says Barb Rechterman, chief marketing officer at GoDaddy, which is returning to the Super Bowl for the 10th consecutive year.

The company has so far declined to say how it will replace the GoDaddy Girls, but Rechterman notes both ads will focus on humor. Also, long-time spokeswoman Danica Patrick will appear in one of the spots -- but not in her sexy, GoDaddy leathers.

Nor will Subway's svelte Jared Fogle be back in Super Bowl.

Last year, for his 15th anniversary with the brand, Jared showed up in two Subway Super Bowl spots. In the ads, he was congratulated by Subway athletes for keeping the weight off.

But in 2014, Subway wants to focus more on the Olympics than the Super Bowl, says Tony Pace, Subway's chief marketing officer. "We like being around the Olympics," he says. "Shared family appointment viewing doesn't happen much."

Meanwhile, Unilever's AXE men's grooming line, announced Thursday that it will return to the Super Bowl.

Wednesday, December 11, 2013

Foreign-based airlines already have cell service

As U.S. regulators debate allowing cellular service on planes, airline passengers in Europe, the Middle East and Asia have been making calls, sending texts and checking e-mail for years.

Foreign airlines now turn off the service as planes approach U.S. airspace. But if the Federal Communications Commission agrees to lift its ban on calls — the agency faces a key vote Thursday on the issue — cellular service could continue unabated on foreign airlines and be switched on quickly aboard U.S. airlines with the right equipment.

Two dozen foreign airlines now offer cellular service that began eight years ago for calls, texts and data. Tens of thousands of flights each month offer the service.

"Those subscribers are already using the service," said Kevin Rogers, CEO of AeroMobile, which provides cellular service aboard 170 planes of nine airlines for 400 flights a day. "What I'm sincerely hoping is that pragmatism will prevail here."

Another major provider, Mobile OnAir, is aboard 250 planes of 14 airlines for 16,000 flights a month. An average of 380,000 passengers use the service each month, according to the company.

"Outside the U.S., all the major airlines offer the service. If they haven't got it today, they're planning to," said Ian Dawkins, CEO of OnAir. "In the coming years, it will be standard on all commercial aircraft."

The technology already exists at home. Gogo, which provides wi-fi service aboard 2,000 commercial planes when they are at least 10,000 feet in the air, says the same technology will handle voice calls and texting after downloading an app from Apple or Google.

"The great part about this technology is that it doesn't require us to install anything new to an aircraft and we can bundle it with or without connectivity," said Ash ElDifrawi, Gogo's chief marketing officer.

Gogo airlines include American, Alaska, Delta, Frontier, United, U.S. Airways and Virgin America. Gogo hopes to launch the texting service in the first three months of 2! 014, but the open question is whether airlines will allow voice calls.

"Our airline customers show little interest in the phone service," said Gogo spokesman Steve Nolan.

The FCC is considering lifting the 1991 ban, with an initial meeting scheduled Thursday, because phones now connect through cellular towers aboard planes rather than searching for signals from ground towers.

Several lawmakers complained about the prospect of voice calls during flights. Sen. Lamar Alexander, R-Tenn., and the head of the House transportation committee, Rep. Bill Shuster, R-Pa., have introduced legislation to keep the ban in place by law rather than regulation.

"Let's face it, airplane cabins are by nature noisy, crowded and confined," Shuster said. "For those few hours in the air with 150 other people, it's just common sense that we all keep our personal lives to ourselves and stay off the phone."

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Foreign providers anticipate an appetite for using cellular service on planes. But they say the demand abroad is mostly for texts and data rather than voice calls that spark incendiary opposition in the U.S.

The Federal Aviation Administration and its European counterpart have been certifying the equipment for use aboard for years aboard Boeing 737s, 747s, 777s and 787s, and Airbus A318s, A320s, A330s, A340s and A380s.

A demonstration of how cellular service would work for U.S. passengers – if the FCC lifts its ban – is available overseas. OnAir and AeroMobile have agreements with phone companies to serve customers of AT&T, T-Mobile and hundreds of other phone companies while flying.

For example, Aer Lingus offers connectivity on all its A330 aircraft. Etihad offers connectivity on every flight between Abu Dhabi and New York JFK aboard a 777-300ER.

If a passenger is an AT&T or T-Mobile customer with a contract allowing int! ernationa! l roaming, all the traveler has to do is turn on the phone. Billing from the phone company doesn't even mention AeroMobile as service provider on the flight.

OnAir's Dawkins said an average of nearly 24 passengers a flight use the cellular service and about 10% make voice calls, with the rest using text and data. AeroMobile's Rogers said about 10% of a plane's passengers use the cellular service, with about 30% of them making voice calls and the rest using text and data. Both companies say calls average less than 2 minutes long.

"Even though there's an emotive reaction to voice, most of the usage that comes on these aircraft is from text and data," Rogers said. "When you're on one of these aircraft, you do not have lots of people hanging on phone calls."

Part of the reason the companies expect U.S. passengers to use cellular service is because travelers already prefer it to wi-fi on foreign airlines. Cellular service doesn't require passwords or a credit card sign on.

"The number of passengers using the phone is higher than the number of passengers using wi-fi," Rogers said of flights where both services are available. "My firm belief is that is because everybody knows how to use the phone."

Monday, December 9, 2013

Cyber Experts Uncover 2 Million Stolen Passwords

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Password box  in Internet Browser on Computer Screenkpatyhka/Shutterstock BOSTON -- Security experts have uncovered a trove of some 2 million stolen passwords to websites including Facebook, Google, Twitter and Yahoo from Internet users across the globe. Researchers with Trustwave's SpiderLabs said they discovered the credentials while investigating a server in the Netherlands that cyber criminals use to control a massive network of compromised computers known as the "Pony botnet." The company told Reuters on Wednesday that it has reported its findings to the largest of more than 90,000 websites and Internet service providers whose customers' credentials it had found on the server. The data includes more than 326,000 Facebook (FB) accounts, some 60,000 Google (GOOG) accounts, more than 59,000 Yahoo (YHOO) accounts and nearly 22,000 Twitter (TWTR) accounts, according to SpiderLabs. Victims' were from the United States, Germany, Singapore and Thailand, among other countries. Representatives for Facebook and Twitter said the companies have reset the passwords of affected users. A Google spokeswoman declined comment. Yahoo representatives couldn't be reached. SpiderLabs said it has contacted authorities in the Netherlands and asked them to take down the Pony botnet server. An analysis posted on the SpiderLabs blog showed that the most-common password in the set was "123456," which was used in nearly 16,000 accounts. Other commonly used credentials included "password," "admin," "123" and "1." Graham Cluley, an independent security expert, said it is extremely common for people to use such simple passwords and also re-use them on multiple accounts, even though they are extremely easy to crack. "People are using very dumb passwords. They are totally useless," he said.

Sunday, December 8, 2013

'Tis the year without volatility

volatility, vix, cboe, equities, stocks, dow jones industrial average, s&p 500, shocks, federal reserve, europe

It's been a wonderful year to be a stock investor. Not only is 2013 shaping up to deliver the best returns of the past 10 years, it's also offered one of the smoothest rides.

The S&P 500 is up just over 27% through Monday, putting it on pace to be the best single-year return since the 28.7% it climbed in 2003. What's made the returns even better, though, is the fact that they've come with the lowest volatility since before the financial crisis.

The Dow Jones industrial average, for example, has had only 24 days in which it finished up or down 1% or more, according to the December issue of the Independent Adviser for Vanguard Investors. That's the fewest such days since 2006. There also have been only four days that the blue-chip barometer finished up 2% or more; again, the most since 2006. The median number of days with 2% moves or more from 2007 to 2012 was 42.

The Chicago Board Options Exchange Market Volatility Index, a measure of implied volatility that's commonly referred to as the "fear index," closed Monday at 14.24, down from its average of 21.32 since March 2009, when the stock market bottomed.

Investors have both lady luck and central bankers around the world to thank for this year's friction-less returns.

“We've dodged some bullets this year,” said Russ Koesterich, chief investment strategist at BlackRock Inc. “We didn't have the repeated shocks there were over the last five years.”

MORE DRAMA AHEAD

During the past five years, there have been numerous worries about Europe and Congress.

Even though those worries haven't completely abated – there's more debt ceiling drama on deck – they have been overwhelmed by the unprecedented liquidity that central bankers are pumping into the global economy, said Kristina Hooper, U.S. investment strategist at Allianz Global Investors.

“It's had an incredible calming effect on the markets,” she said of the fiscal stimulus.

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The Federal Reserve Bank is expected to start cutting back on its asset purchases soon, though, possibly as early as later this month.

That could mean that volatility, or at least historically average volatility, is right around the corner, Mr. Koesterich said.

“Liquidity has gone a long way toward dampening volatility,” he said. “As that starts to fade, you're going to see a resumption of volatility. That doesn't mean going back to 2008 levels, but even a reversion to the mean is going to feel like high volatility given how low it's been this year.”

Advisers will have their work cut out for them keeping clients calm once volatility does return, especially with so many investors just starting to warm back up to equities again.

“Much of their job is going t! o be about educating clients about volatility and make sure it doesn't cause them to be more risk adverse,” Ms. Hooper said.

Saturday, December 7, 2013

Best Value Companies To Own For 2014

David Einhorn has around USD5.3 billion in assets under management in his asset management company Greenlight Capital. Last quarter he made 28 transactions and bought seven new stakes. His portfolio has only 30 stock holdings.

In this article I would like to present you the best dividend stocks, bought and sold by David Einhorn. From his nine stock and ETF purchases pay six a dividend. All of the latest dividend buys from David Einhorn yielding between .13 percent and 1.92 percent. David is no long-term dividend player. He wants a quick total return. The most important buys were ING US, Liberty Global and Market Vectors Gold Miners ETF.

On the short side, he reduced or sold out 19 stocks. Fifteen of them pay a dividend. The biggest impacts were Cigna, Seagate Technology and Microsoft with around 3 percent impact to his portfolio.

Apple remains the biggest stock holding bet. The stake has a value of around $1 billion. The second biggest position of David Einhorn is the car company General Motors which represents around 10.7 percent of his total portfolio. The third biggest company is the technology stock Marvell with a 9.7 percent share. Both are worth over USD500 million.

Best Value Companies To Own For 2014: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:
  • [By Arie Goren]

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

  • [By Monica Gerson]

    Tupperware Brands (NYSE: TUP) is expected to report its Q3 earnings at $1.03 per share on revenue of $623.34 million.

    Varian Medical Systems (NYSE: VAR) is projected to post its Q4 earnings at $1.12 per share on revenue of $779.02 million.

  • [By Dan Caplinger]

    Where growth will come from
    One area that Newell Rubbermaid still has to tap fully is emerging markets. The company has done a good job of expanding overseas, with 17% annual growth in Latin America. But with barely a quarter of its sales coming from outside the U.S. and Canada, the company has a lot further to go. Storage rival Tupperware (NYSE: TUP  ) gets fully 60% of its total revenue from emerging markets, and it too has seen impressive gains in South America as well as the Asia-Pacific region.

Best Value Companies To Own For 2014: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:
  • [By Dan Caplinger]

    Moreover, Manitowoc has managed to maintain a healthy backlog of orders that show the company's potential to sustain its long-term growth. With $776 million of outstanding crane orders as of March, the backlog represents about four months' worth of revenue for the segment, roughly in line with what industry giant Caterpillar's (NYSE: CAT  ) $20.4 billion in order backlog equates to as a proportion of its much larger total revenue. Yet Manitowoc hasn't seen Caterpillar's substantial contraction in sales recently, pointing to the crane-maker's greater resiliency.

  • [By Dan Caplinger]

    Capstone has had huge potential for a long time, even if it hasn't delivered on that potential. The company's microturbines have tapped into the trend toward on-site power generation, and its flexible-fuel equipment makes it a more viable option for smaller projects that the larger generators that giants General Electric (NYSE: GE  ) and Caterpillar (NYSE: CAT  ) have developed. GE and Caterpillar aim instead for high-efficiency products and have done an excellent job of delivering, with Caterpillar's power-generation equipment reaching 96% efficiency ratings. But Capstone's solutions are better for residential and smaller commercial customers.

  • [By Travis Hoium]

    Caterpillar (NYSE: CAT  ) is one of the big winners today, climbing 2.3% after reporting a pretty terrible first quarter. The company's net income fell 45% as the sale of mining equipment dropped, and management now expects full-year revenue to be between $57 billion and $61 billion from a previous guidance of $60 billion to $68 billion. The only positive item was a $1 billion stock buyback announced today, and investors are clinging to the only good news available right now.�

  • [By Dan Carroll]

    The Dow surges, but international results remain mixed
    The Dow has gotten off to a good start to the year despite being weighed down by a few lagging stocks, such as industrial giant Caterpillar (NYSE: CAT  ) . While a majority of Dow stocks have recorded double-digit percentage gains in 2013, Caterpillar has lost more than 10% so far due to slowing economic conditions around the globe. Sales are falling at the company, and China's recent slowdown has sent investors fleeing.

5 Best Stocks To Buy Right Now: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:
  • [By Monica Gerson]

    Schlumberger (NYSE: SLB) is estimated to report its Q3 earnings at $1.24 per share on revenue of $11.58 billion.

    Honeywell International (NYSE: HON) is projected to report its Q3 earnings at $1.24 per share on revenue of $9.92 billion.

  • [By David Smith]

    Admittedly, Chevron (NYSE: CVX  ) is partnering with Saudi Aramco in production efforts in the Partitioned Zone between Saudi Arabia and Kuwait. And oil-field services and technology kingpin Schlumberger (NYSE: SLB  ) has planted major facilities in the country. But it seems that a more widespread use of western companies' capabilities could do wonders for Saudi reserves and production longevity.

  • [By Richard Moroney, Editor, Dow Theory Forecasts]

    Founded in 1926, Schlumberger (SLB), operates in all major facets of oilfield services, essentially covering the lifespan of reservoirs that house natural gas and oil.

Best Value Companies To Own For 2014: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:
  • [By Mani]

    Dollar Tree, Inc. (NASDAQ:DLTR) is one of the companies that are set to exploit the ongoing trend of consumers' increasing focus on value with significant opportunity to grow its store base, and expand margins.

  • [By John Maxfield]

    If you're anything like me, two things went through your head when you saw this. First, you regret that you missed out on the investment opportunity. Since the end of 2009, shares in all three of these companies, led by Dollar Tree (NASDAQ: DLTR  ) , have simply trounced the broader market. Even the worst performer of the bunch, Family Dollar (NYSE: FDO  ) , beat it by nearly a factor of two.

  • [By Lawrence Meyers]

    The finance sector, as mentioned, can make money in many ways. The second-highest growth sector is expected to be consumer discretionary, with a 6.2% increase. When you look at earnings from luxury brands like Tiffany & Co. (TIF), and that the hotel sector continues to do very well, it suggests that those people who are in good financial shape are spending their money. Meanwhile, dollar players like Dollar Tree (DLTR) continue to perform very well, suggesting that folks with less money are spending it on cheaper items.

  • [By Traders Reserve]

    I do believe as Wal-Mart gets hurt, the dollar stores will do a little better ��especially Dollar General (DG), but don�� overlook� Dollar Tree (DLTR). Wall Street is worried about Costco (COST) but I believe it will actually outperform expectations. Costco seems to have figured out how to grow much faster than Wal-Mart and still provide affordable health insurance for most employees.

Wednesday, December 4, 2013

Rockwell Collins, Inc. Poised to Supply Boeing’s New 777X (COL, BA)

The Iowa-based aviation electronics manufacturer, Rockwell Collins (COL), is reportedly expecting to supply systems for the 777X, Boeing’s (BA) newest commercial airliner.

According to Reuters, Kelly Ortberg, the company’s CEO, said in an online conference with Credit Suisse that, ”We don’t have a lot of standard content on the existing 777, so I think our opportunities to gain share are pretty significant on the 777X.”

The Boeing 777x is a widebody jet with capacity up to 406 people and it may enter commercial services by 2020. Rockwell Collins currently supplies avionics systems for the 787 and the company expects to have a better idea of its opportunities surrounding the new 777x by late spring or early summer in 2014.

Rockwell Collins shares inched lower on Tuesday, shedding 0.26% as the trading session drew to a close. Despite today’s lackluster price action, this stock is still up an impressive 24% year-to-date.

Monday, December 2, 2013

Rails to Jeans: Screening Splits

Each month we add one stock to our model portfolio, chosen from those that have announced stock splits; there were two splits announced last month, and both scored quite favorably in our rankings, says Neil Macneale, editor of 2-for-1 Stock Split Newsletter.

Both Canadian National Railway (CNI) and VF Corporation (VFC) show very similar numbers in many of the critical categories in our screening process.

For our portfolio, I'm going with Canadian National Railway for two reasons. It is the more profitable of the two, and it is a business I understand. I'm not comfortable when it comes to fashion or fad businesses.

Canadian National Railway was privatized in 1995 and began trading on the NYSE in 1996. The company has thrived, growing both in Canada and the US, mostly through acquisitions of smaller lines. CNI serves all the major commodity industries including coal, oil, lumber grain, and chemicals.

Connecting the Atlantic, Pacific, and Gulf of Mexico, it is truly a North American railroad. CNI is a big, stable, profitable business, and the numbers reflect this.

A long-term 8% growth in earnings, a 1.5% dividend yield growing at 12% per year, and a strong balance sheet are all metrics to my liking.

The stock's volatility is about equal to that of the market. The best numbers are the five-year average 25% net profit margin and 20% return on equity. This is a great business!

Meanwhile, the other stock split announcement from October was VF Corporation, an apparel company based in North Carolina.

The company was founded in 1899 and went public in 1959. It has grown internally and through acquisitions, and now owns numerous brands such as Lee, Rustler, Majestic, Nautica, JanSport, Wrangler, Eagle Creek, Timberland, Vans, North Face, and many more.

Such wide diversification mitigates some of my anxiety regarding the fashion business, and most of its numbers are very similar and just as good as those of CNI. It's even a little less volatile and it pays a bigger dividend, but VFC is not quite as profitable.

This is a 4-to-1 split. Its Board of Directors must be very confident and I could hardly argue if you decided to buy it.

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