Wednesday, April 30, 2014

Five Small Biotech Stocks Analysts Think Will Triple

Over the past two months, mutual funds and hedge funds liquidated momentum stocks, triggering a self-reinforcing selloff. As a result, nearly every single biotech stock has been pushed aggressively lower.  When this happens mispricings occur.  Fund managers take profits even on stocks that have great fundamentals and huge upside.

So, given this sell off, which of those stocks present a great buying opportunity  We ran a screen that looks for the best biotech stocks with the most upside potential.

First, we look for companies with a market capitalization greater than $200 million.  For the second level of the screen, the companies must have more than three analysts covering the stock.  Third, there has to be more than three analysts that have a price target on the stock.  Finally, we want to find stocks that are trading at a huge discount to analyst consensus price targets.

In running this screen for the first of May, the following five stocks have hit our radar as potential home runs.  These stocks have an average analyst price target that is at least 200% higher than its current share price.

1) Arrowhead Research Arrowhead Research Corp (ARWR) has a current share price $10.80.  The consensus analyst target price is $45.  That gives us a "street projected return" of 316%.

2) ChemoCentryx ChemoCentryx, Inc. (CCXI) has a current share price $5.44. The consensus analyst target price is $20. That gives us a "street projected return" of 267%.

3) Ziopharm Oncology, Inc. (ZIOP) has a current share price $3.50. The consensus analyst target price is $11. That gives us a "street projected return" of 214%.

4) TherapeuticsMD, Inc. (TXMD) has a current share price $4.20. The consensus analyst target price is $13. That gives us a "street projected return" of 209%.

Top Industrial Disributor Companies To Watch In Right Now

5) Dynavax Technologies Dynavax Technologies Corporation (DVAX) has a current share price of $1.62. The consensus analyst target price is $5. That gives us a "street projected return" of 208%.

Bryan Rich is co-founder of BillionairesPortfolio.com and CEO of Logic Fund Management, Inc.

Triple Crown Billionaires

Tuesday, April 29, 2014

Alexion on Roche's Radar? - Analyst Blog

5 Best Integrated Utility Stocks To Invest In Right Now

According to Bloomberg News, Alexion Pharmaceuticals, Inc. (ALXN) is being eyed by Roche (RHHBY). People familiar with the situation, who declined to be identified, commented that Roche is seeking funds to finance the deal. Alexion Pharma, with a market cap of around $20 billion, surged more than 12% in Friday trading on the Nasdaq following rumors of the potential sale.

However, according to Reuters, Alexion Pharma's expensive valuation could prevent the transaction from materializing. Based on 2013 earnings estimates, Alexion is trading at 42.9x compared to the S&P average of 15.6x.

Roche is aiming to diversify its product portfolio through this potential takeover. The Swiss drugmaker boasts of a strong oncology portfolio. The acquisition of Alexion Pharma, if it materializes, would give Roche access to Alexion Pharma's sole marketed drug Soliris.

Soliris is available for the treatment of paroxysmal nocturnal hemoglobinuria (PNH), a rare genetic disorder. In Sep 2011, the US Food and Drug Administration (FDA) cleared Soliris for treating children and adults suffering from atypical hemolytic uremic syndrome, an ultra-rare genetic disorder.

In Nov 2011, a similar approval for the drug was granted in the EU. Soliris is being studied for additional indications. The drug recorded sales of $1.13 billion in 2012, up 45%.

Strong Soliris sales for the PNH indication have helped the company achieve profitability since the second quarter of 2008. Sales of the drug have been boosted further by its label expansion into the aHUS indication.

Apart from rumors regarding Alexion Pharma's potential takeover, Onyx Pharmaceuticals, Inc. (ONXX) is another stock in the biopharma space which is in the news as an acquisition target.

Alexion Pharma currently carries a Zacks Rank #3 (Hold). Jazz Pha! rmaceuticals (JAZZ) appears to be more attractive with a Zacks Rank #1 (Strong Buy).

Monday, April 28, 2014

There's Another Side to the Nuclear Puzzle

Cameco (NYSE: CCJ  ) has a lot invested in the future growth of nuclear power. And it expects good things, particularly in Asia. However, nuclear power has older plants (built decades ago) that need to be cleaned up. That's where companies like Fluor (NYSE: FLR  ) can make a buck.

The future is electric
According to uranium miner Cameco, there will be 144 new nuclear power plants built by 2023. That will push the total number of nuclear facilities up more than 20%. Although there is currently an oversupply of uranium in the market, the new facilities should take up that slack.

In fact, Cameco believes that about 20% of future demand will require new supplies, or there will be shortfalls of uranium. That's great for Cameco, which has the capacity to increase production by about 50% over the next few years. However, because of the current oversupply, the company has backed away from firm expansion commitments. It's planning to bring on new supply as the market requires.

CCJ Chart

Source: Cameco data by YCharts.

That's not a bad call, since Cameco telegraphing new supply might lead customers to hold off on orders and hamper price discussions. Note that the shares remain well off their 2011 peak. And despite three years of falling earnings (between 2009 and 2012), Cameco's bottom line advanced 20% last year. Now could be a good time to take a look at this pure play since future nuclear growth appears solid. In fact, about half of the new nuclear plants (Cameco expects by 2023) were already under construction last year.

What about the past?
The thing about nuclear power is that some of the existing plants were built decades ago. The technology, to put it mildly, is out of date. Massive disasters like the recent events in Fukushima, Japan, prove this. In fairness, no one expected an earthquake leading to a tsunami leading to a nuclear meltdown. But, in hindsight, there were design elements that could have stopped the meltdown even under such perfect-storm conditions.

So while new nuclear plants are being erected, what's happening to the old ones? Some of them are coming down. Looking at Cameco's projections, the 144 new plants come at the same time that 51 are expected to be shut. That leads to a net advance of 93 plants.

But you don't just put up a closed sign and walk away from a nuclear plant. These giant facilities need to be decommissioned. And that's where companies like Fluor come into play. Fluor just won a joint bid to decommission 12 nuclear sites in the United Kingdom. The 14 year contract is worth nearly $12 billion.

(Source: Ken Hawkins, via Wikimedia Commons).

Fluor is a global engineering and construction company. And it's no small fry -- Fluor's sales last year topped $27 billion and earnings were over $4 a share, an almost 50% year-over-year advance. That said, construction tends to be cyclical, so earnings can be volatile.

Only about 4% of Fluor's revenue in the fourth quarter came from the power industry. However, at the end of the year the sector accounted for 6% of the company's nearly $35 billion backlog. Add in the UK contract and there's clearly more growth ahead. Note that the oil and gas sector, which is experiencing a Renaissance in the United States, accounted for about half of the revenue and backlog. Power projects like the one to decommission UK nuclear sites are really icing on this cake.

Take me to the cleaners...
Events like Fukushima show the dangers of nuclear power. While that won't stop the sector from growing, which is good for Cameco and its shareholders, it shows that there are older plants that need to be shut down. Engineering and construction companies like Fluor are there to do just that. Keep an eye on "the other side" of the nuclear power market because there's plenty of money to be made cleaning up old messes.

OPEC is absolutely terrified of this game-changer
Imagine a company that rents a very specific and valuable piece of machinery for $41,000… per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock… and join Buffett in his quest for a veritable LANDSLIDE of profits!

Saturday, April 26, 2014

Ford and Toyota Split Over Hybrid Pickups

Ford (NYSE: F  ) and Toyota (NYSE: TM  ) made headlines two years ago when the two auto giants said that they had joined forces to create a hybrid drivetrain for full-sized pickup trucks and SUVs. The alliance made total sense: Toyota is the hybrid leader, and Ford is the pickup leader (and no slouch in hybrids), and if anyone could come up with a breakthrough fuel-efficient pickup drivetrain, it seemed like these two working together would the best shot.

Well, it's over. The two companies said this week that they had dissolved their arrangement, with Ford saying it was on track to develop its own hybrid pickups -- without Toyota's help. In this video, Fool.com contributor John Rosevear looks at the details of the split -- and at why Ford's recent success with hybrid cars likely spelled doom for this deal with Toyota.

Fuel-efficient cars have helped make Ford a big success in China, but the Blue Oval's growth in Asia is just beginning. A recent Motley Fool report, "2 Automakers to Buy for a Surging Chinese Market", says that Ford is one of two global auto giants poised to reap big gains as China's massive auto boom continues.You can read this report right now for free -- just click here for instant access.

Friday, April 25, 2014

4 Hot Tech Stocks to Trade (or Not)

BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.

>>5 Mega-Cap Stocks to Trade for Gains

From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.

Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.

While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.

>>5 Stocks Under $10 Set to Soar

These "most active" names are the most heavily-traded names on the market -- and often, uber-active names have some sort of a technical or fundamental catalyst driving investors' attention on shares. And when there's a big catalyst, there's often a trading opportunity.

Without further ado, here's a look at today's stocks.

Facebook


Nearest Resistance: $65

Nearest Support: $55

Catalyst: Q1 Earnings

Social media giant Facebook (FB) is seeing big volume this afternoon after posting its first quarter earnings numbers after the bell yesterday. Facebook reported earnings of 34 cents per share, a number that came in above consensus. Importantly, mobile ads made up almost 60% of total ad revenues, doubling over the same quarter last year. But if Facebook's 1.1% move on big volume seems less than impressive today, a look at the chart is in order.

Facebook has been forming a bearish head and shoulders setup for the last four months, a price pattern that indicates exhaustion among buyers. We're seeing that exhaustion in FB's lack of follow-through today. If shares can't move above the 50-day moving average, the $55 neckline level is the price to watch. If Facebook slips below $55, look out below.

Zynga


Nearest Resistance: $5.50

Nearest Support: $4

Catalyst: Q1 Earnings

Facebook's "little buddy," Zynga (ZNGA), is down 3.6% on big volume this afternoon, shoved lower by its own earnings call. Zynga lost 1 cent per share for the quarter, a number that met Wall Street's expectations. But the firm didn't impress with forward guidance, which it expects to come in at a narrow profit for the full year. Zynga founder Mark Pincus also announced that he would no longer be involved in day-to-day operations at the firm.

The earnings reaction isn't exactly inspiring today, but frankly, the chart could look a lot worse. ZNGA has been in a textbook uptrend since last fall, and that makes a pullback a good opportunity to get in with a buy. Support at $4 is an optimal entry point.

Apple


Nearest Resistance: $570

Nearest Support: $540

Catalyst: Q2 Earnings

Apple (AAPL) is another name that's getting big attention following earnings. For its fiscal second quarter, Apple earned $11.62 per share, a number that beat the average analyst estimate by $1.44. Strong iPhone sales made up for weakness in iPads for the quarter, helping the firm deliver more than $13.5 billion in operating cash flow last quarter in the process. Apple also announced an aggressive plan to return capital to shareholders to the tune of $130 billion by the end of next year.

Technically speaking, AAPL's 8% gap up today is an important breakout. Shares had been basing in an inverse head and shoulders setup for the last few months, but today's move has Apple testing 52-week highs again. Once AAPL can catch a bid above $570, shares should have considerable room to move higher.

Qualcomm


Nearest Resistance: $84

Nearest Support: $77

Catalyst: Q2 Earnings

Bad guidance is to blame for Qualcomm's (QCOM) 3.4% stumble on big volume this afternoon. The mobile chipmaker reported profits of $1.31 per share, beating Wall Street's $1.22 best guess. But QCOM's guidance came in on the low side of analysts' estimates, and that's a big part of today's downside move.

Qualcomm has been a "buy the dips" name since last fall, when it started bouncing higher in an uptrending channel. So while today's stumble looks negative at first glance, it's giving QCOM buyers yet another dip to buy -- the last seven have been optimal buying opportunities. If you decide to go long here, I'd recommend putting a protective stop just below the 50-day moving average.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.


RELATED LINKS:



>>QE5 Is Coming -- Here's What It Means to Your Portfolio



>>5 Stocks With Big Insider Buying



>>3 Big-Volume Stocks to Trade for Breakouts

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author was long AAPL.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji


Thursday, April 24, 2014

Video Carl Icahn on Apple, Ackman and Valeant, and Seeding Activist Funds

Top 10 Small Cap Stocks To Watch Right Now

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Wednesday, April 23, 2014

Boeing and Microsoft Pull the Dow Higher

Today is a bit of a lull in the middle of earnings season, and shares of major U.S. indexes are rising slightly before the earnings fireworks begin tonight. At 3:15 p.m. EDT the Dow Jones Industrial Average (DJINDICES: ^DJI  ) was up 0.26%, while the S&P 500 (SNPINDEX: ^GSPC  ) had gained 0.21%.

The biggest economic news was a retail sales report that showed a 0.4% rise in sales during June. That was lower than economists' 0.9% expectations, and when you exclude auto sales, the result was flat, which may be an indicator that GDP growth will not be strong in the second quarter. Consumers account for about 70% of U.S. economic activity, so if they aren't increasing spending, the whole economy suffers. 

Boeing (NYSE: BA  ) shares are up 3.5% today after reports surfaced that the latest 787 Dreamliner fire wasn't caused by the aircraft's battery. What a relief -- this was just a regular airplane fire.

The latest reports have investigators focusing on a locator transmitter, but it has to be worrisome to all Boeing investors that fires keep occurring on the company's new flagship aircraft. So far, the company doesn't know what the impact will be, and with the stock trading near a 52-week high, I would remain wary of it. Headlines about fires aboard aircraft are never good, and they seem to be a recurring theme for Boeing. 

Microsoft (NASDAQ: MSFT  ) is the other big gainer today, up 1.3%. The company announced a $150 price cut for the Surface RT, its first foray into tablets. According to IDC, Microsoft claims just 2% of the tablet market, and only about 260,000 Surface RTs have been sold. 

The tech giant is in the midst of a reorganization that is supposed to focus the company on quick software changes and more hardware design. Initial efforts to get into hardware haven't been successful, and one of the challenges has been pricing. This brings the Surface RT to a more attractive level, but without improvements that make it more appealing than the iPad, I don't think it will boost sales.

Microsoft is still one of the titans of tech, but the industry has been leaving the software maker behind as mobile devices become more prevalent. Can Microsoft still grow as the PC becomes a relic of computing? Find out "Who Will Win the War Between the 5 Biggest Tech Stocks" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Tuesday, April 22, 2014

Priceline Could Beat Google to $1,000

It's been five months since I offered up four stocks that could get to $1,000 before Google (NASDAQ: GOOG  ) .

One of them went on to do exactly that. Two of the other three don't have much of a shot to hit four figures any time soon. However, then we get to priceline.com (NASDAQ: PCLN  ) .

It's going to be quite the footrace between these two.

The search engine leader continues to trade at a higher level than the fast-growing travel portal, but Priceline's making up ground here. Priceline stock has gone on to climb 29% to hit $888.63. Google -- with its 14% gain in that time -- closed at $905.09 yesterday.

I'm a fan of both companies, but I still believe that Priceline will be the first of the two dot-com darlings to break through the $1,000 barrier.

Priceline's latest move higher came on a 4% pop yesterday, with the Morgan Stanley analyst Scott Devitt boosting his rating from equal weight to overweight. Devitt also pushed his price target to $1,010, becoming the first of the nearly two dozen major analysts following Priceline to offer up a four-figure goal.

There are already a few analysts -- including Bernstein Research's Carlos Kirjner and CLSA Asia-Pacific Markets' James Lee -- perched at $1,000 price targets when it comes to Google.

Neither stock may seem cheap these days. Google is trading at 20 times this year's projected earnings and 17 times next year's forecast. Priceline's fetching pricier multiples of 23 for this year and 19 come 2014.

Both companies have earned their markups, though Priceline is growing faster. Wall Street's betting on 16% growth at Google for both this year and 2014. Analysts see Priceline growing at a healthy 23% clip in 2013 and a still respectable 20% rate next year.

The competitive climate may seem to give Google the leg up here given the cutthroat nature of travel portals and Google's safe standing as the global leader in search, but Priceline's been finding ways to grow a lot faster than its market for years.

Priceline is also in a slightly better position to build on its profitability if the global economy continues to gain traction. Google advertisers will naturally be willing to spend more if the economy's improving, but there should be a more dramatic uptick in the demand for corporate and leisure travel under that scenario to benefit Priceline.

Priceline and Google will both get to $1,000, and one or both may get there by the end of the year if the bullish trends continue. I see Priceline being the first one to cross that line, but the comment box below is waiting for you if you care to disagree.

There's a bigger race that doesn't end at 1k
It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Monday, April 21, 2014

UAW drops NLRB case to organize Volkswagen

volkswagen tennessee uaw

Workers on the VW assembly line in Chattanooga.

NEW YORK (CNNMoney) The United Auto Workers has dropped its challenge of a vote to organize workers at Volkswagen's only U.S. plant that went against the union.

The National Labor Relations Board was set to start a hearing Monday on the UAW's complaint that Republican politicians improperly interfered before the Feb. 14 vote at the Chattanooga, Tenn. plant, which the union lost 712 to 626.

But the union issued a statement Monday saying it was dropping its appeal because fighting the election through the NLRB could have dragged on for years.

"The UAW is ready to put February's tainted election in the rear-view mirror," said UAW President Bob King in a statement.

The union said even if the NLRB ordered a new election -- the board's only available remedy under current law -- nothing would stop politicians and anti-union organizations from again interfering.

But some experts had suggested that the union stood little chance of winning a new vote, even if the NRLB ruled in its favor.

"Most people thought they'd win the first time around," said Gary Chaison, professor of industrial relations at Clark University. "I think the chances of winning a second vote will be more difficult than winning the first vote."

Sen. Bob Corker, R-Tenn., one of the politicians the UAW accused of improperly interfering in the election, also claimed the union was dropping its effort because it knew it couldn't win a new vote.

"This 11th hour reversal by the UAW affirms what we have said all along -- that their objection was nothing more than a sideshow to draw attention away from their stinging loss in Chattanooga," he said.

The UAW's efforts to organize nonunion plants is seen as crucial to its long-term survival.

So far the UAW has been limited to representing plants operated by U.S. automakers General Motors, (GM, Fortune 500) Ford Motor (F, Fortune 500) and Chrysler Group, as well as their suppliers. Plant closings over the last 15 years have cut into UAW membership. Meanwhile, automakers from Asia and Europe have opened more than 30 plants in the United States, and more than two-thirds of those plants are in the South.

Unlike most employers facing a union-organizing election, Volkswagen had stayed neutral on the vote. It even seemed to be encouraging workers to vote for the union, saying it hoped to set up a "works council" to improve productivity at the plant.

VW, which has German union members on its board, uses works councils at most of its plants worldwide. But U.S. labor law makes such councils difficult without an independent union in place

But Corker, Tennessee Gov. Bill Haslam and other leading Republican elected officials suggested that if the union won the organizing election it would scare away other companies looking at opening factories in the state, where unions are relatively rare. There were even threats that the state would deny VW $300 million in tax breaks it is seeking to expand the plant if the union won the vote.

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The UAW says it will ask Congress to examine the use of federal funds in the state's incentives threat.

"Frankly, Congress is a more effective venue for publicly examining the now well-documented threat," King said.

Chaison said it could cause problems for the UAW and other unions should the NLRB rule politicians can't weigh in on labor disputes such as organizing efforts or strikes.

"If opponents of the union can be told to refrain from interfering, friends of the union can be told the same thing," he said. "Chattanooga is an unusual place for unions to organiz! e. Most o! f the places where unions would organize -- places like New York, Las Vegas or Detroit -- politicians would stand in line to support a union. That would provide ammunition to employers to object if they lost an organizing vote."

Opponents of the union say the workers decided on their own that they didn't want or need the union. Workers at the VW plant make roughly $19 an hour, compared with about $26 to $28 an hour for veteran hourly workers at the Detroit automakers, although new hires at the unionized plants are making closer to $17. To top of page

Saturday, April 19, 2014

Why Bernanke's Clearer Message Landed With a Thud

WASHINGTON (AP) -- Wall Street investors wanted clarity from Federal Reserve Chairman Ben Bernanke.

They didn't like it when they got it.

Bernanke set the record straight Wednesday about the Fed's bond-buying program. He said the Fed expects to scale back bond purchases later this year and end it entirely by mid-2014 if the economy continues to improve.

In response, investors dumped stocks and bonds in anticipation of rising interest rates.

The Fed has been buying $85 billion worth of Treasury and mortgage bonds a month since late last year. The purchases pushed long-term rates to historic lows, fueled a record-breaking stock market rally, encouraged consumers and businesses to borrow and spend and provided a crutch to an economy hobbled by federal tax hikes and spending cuts.

Confusion about the central bank's intentions set in last month after the Fed released a summary of its April 30-May 1 meeting: Several Fed policymakers said they were open to reducing the bond purchases as early as this week's meeting.

Bernanke, meanwhile, told Congress that the economy still needed help, but also that the Fed might decide to cut back the bond purchases within "the next few meetings" -- earlier than many had assumed.

The conflicting messages left investors bewildered. Just a hint of a pullback in the bond purchases sent bond prices plunging and their yields soaring.

So on Wednesday Bernanke, a former Princeton University professor, took pains to make the Fed's intentions as clear as possible.

Going beyond the formal statement the Fed's policy committee released after its two-day meeting this week, the chairman told reporters it would "be appropriate" to reduce the monthly bond purchases later this year and to end them by mid-2014 -- if the economy performed as well as the Fed expects. He said the bond-buying would probably end when the unemployment fell to "the vicinity of 7 percent" from May's 7.6 percent.

Bernanke explained that the rest of the Fed's policymaking committee had "deputized" him to expand on what fit "into a terse FOMC statement."

He said any reductions in bond buying, which keeps long-term rates low, would occur in "measured steps." And the Fed will remain flexible: If the economy proves weaker than expected, the Fed might decide to restore the higher level of bond purchases to try to drive down long-term rates again.

Plans to reduce the purchases are "very data-dependent, and that's important," says Joseph Gagnon, a former Fed official who is now senior fellow at the Peterson International Institute for Economics.

Bernanke likened any pullback in bond purchases to a driver letting up on a gas pedal rather than applying the brakes.

He stressed that even after the Fed ends its bond purchases, it will continue to maintain its vast investment portfolio -- which has ballooned to $3.4 trillion -- to help keep long-term rates down.

The Fed is considering scaling back the bond-buying program because of its increasingly up-beat view of the economy. In its statement, the Fed said the downside risk to the jobs market had "diminished."

Fed officials predicted that unemployment will fall a little faster this year, to 7.2 percent or 7.3 percent at the end of 2013. They think the rate will be between 6.5 percent and 6.8 percent by the end of 2014, better than its previous projection of 6.7 percent to 7 percent.

They also reduced their forecast for inflation this year, but said the more-moderate increases in consumer prices partly reflected "transitory influences."

The Fed also said it would keep short-term rates at record lows at least until unemployment slides to 6.5 percent. Bernanke emphasized that 6.5 percent unemployment is a threshold, not a trigger: The Fed might decide to keep its benchmark short-term rate near zero even after unemployment falls that low.

"When we get to that point," Bernanke said, the Fed will "look at whether an increase in rates is appropriate."

One factor it will consider is inflation. If inflation falls too far below the Fed's target of 2 percent, it might decide to keep short-term rates at record lows. The goal would be to fuel more economic growth, which could lead to higher inflation.

Yet markets have been tumbling since Bernanke spoke. The Dow Jones industrials fell 206 points, or 1.4 percent, Wednesday and plunged another 200-plus points Thursday.

Investors dumped bonds, pushing the yields higher. The yield on the benchmark 10-year Treasury note rose past 2.40 percent Thursday to its highest level since August 2011.

The economists at PNC Financial Services Group said the market sell-off was probably an "overreaction" to Bernanke's comments. If the Fed scales back its bond purchases, after all, it would mean the economy is strengthening, something that should be good for corporate profits and for stocks.

The Fed faces a tough decision: If the central bank pulls back its stimulus too soon, the U.S. economic recovery could sputter. If it waits too long, super-low rates could ignite inflation. Or they could swell speculative asset bubbles as investors pursue riskier investments with potentially richer returns than low-yielding bonds.

The Fed knows the timing is tricky. It ended an earlier round of bond purchases in June 2011 only to see economic growth remain weak and unemployment stay at levels more consistent with a recession than a healthy recovery.

And if the Fed puts out a confusing message, investors could panic, dump bonds and drive rates high enough to jeopardize economic growth.

"We are determined to be as clear as we can," Bernanke said at Wednesday's press conference, "and we hope that you and your listeners and the markets will all be able to follow what we're saying."

Since becoming chairman in 2006, Bernanke has labored to make the famously secretive central bank more open to the public. In 2011, he began holding regular news conferences to clarify Fed policy, something that would have been unthinkable under his predecessor, Alan Greenspan, who took pride in being as baffling as possible.

But on one subject Bernanke chose discretion over candor: He declined to address speculation that he will step down as Fed chairman when his term ends in January.

He was asked to respond to comments Monday by President Barack Obama, who said Bernanke had already stayed longer than planned. The president's remarks added to expectations that Bernanke intends to step down. Bernanke demurred.

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"I would like to keep the discussion on monetary policy," he said. "I don't have anything for you on my personal plans."

Casey's General Stores's Upcoming Earnings: What You Need To Know

Casey's General Stores (Nasdaq: CASY  ) is expected to report Q4 earnings around June 12. 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 Casey's General Stores's revenues will expand 4.5% and EPS will expand 3.3%.

The average estimate for revenue is $1.83 billion. On the bottom line, the average EPS estimate is $0.62.

Revenue details
Last quarter, Casey's General Stores reported revenue of $1.66 billion. GAAP reported sales were 5.3% higher than the prior-year quarter's $1.58 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 $0.42. GAAP EPS of $0.40 for Q3 were 7.0% lower than the prior-year quarter's $0.43 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 15.0%, 50 basis points better than the prior-year quarter. Operating margin was 1.9%, 30 basis points worse than the prior-year quarter. Net margin was 0.9%, 20 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $7.30 billion. The average EPS estimate is $2.90.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 121 members out of 134 rating the stock outperform, and 13 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Casey's General Stores a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Casey's General Stores is hold, with an average price target of $57.40.

Is Casey's General Stores the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.

Add Casey's General Stores to My Watchlist.

Friday, April 18, 2014

Mawer Management's First Quarter 2014 Newletter

Global equity markets continued to rise during the first three months of 2014. This extends their rally to five years, with only periodic interruptions. One such interruption occurred when the political standoff between Russia and Ukraine prompted some investors to assess the implications of Russia's aggression from the sidelines. The ensuing equity correction was relatively modest and short-lived, as global equity markets soon resumed their upward trajectory, with the MSCI World Index (C$) finishing the quarter with a 5.2% gain.

Unlike previous quarters, Canadian equity markets were among the frontrunners, as illustrated in Chart A. Canada's rise was fuelled by significant gains by resource companies, particularly early in the quarter. Chart A also shows the strong quarterly results achieved by equity markets in the U.S. and Europe, although it should be noted that the depreciation of the Canadian dollar relative to most major world currencies had a significant influence on the magnitude of these returns. For example, though the S&P 500 Index (C$) reported a 5.8% return, the gain in U.S. dollars was a healthy, but less pronounced rise of 1.8%.

The most notable exception to the strength in global equity markets was Japan, where the MSCI Japan Index (C$) shed 1.9%. Japanese authorities have undertaken unprecedented measures to revive their economy, but an imminent hike in the sales tax, from 5% to 8%, has renewed concerns that consumption and economic growth may stagnate. Incredibly, the annualized return over the last 25 years in the MSCI Japan Index (C$) is –1.0%; a painful reminder of how unkind Japan has been to investors.

Emerging market equities once again failed to keep pace with their developed peers. The standoff in Crimea and the political turmoil and social unrest in Thailand sparked steep corrections in their respective equity markets. Meanwhile, the Chinese stock market yet again posted negative returns. Some of this underperformance among emerging market equities may be attributed to the unwinding of the carry-trade, where investors borrowed U.S. funds at low rates and redeployed this capital into higher-growth emerging markets. With the U.S. Federal Reserve continuing their exit strategy with respect to economic stimulus, and newly-appointed Fed Chairman Janet Yellen speaking openly about the timeframe to increase interest rates, the attractiveness of this carry-trade is diminishing. This may explain the sizeable flow of funds out of emerging markets and back into U.S. dollars, which has put some emerging market currencies under pressure, and seemingly their equity markets as well.

While this quarter was rewarding for equity investors, Canadian fixed income markets newsletter First Quarter 2014 also delivered healthy returns with the FTSE TMX Canada Bond Universe Index gaining 2.8%. This was a welcome reprieve for fixed income investors that suffered a 1.2% decline during 2013, the first annual decline since 1999. As Chart B illustrates, performance among provincial and corporate bonds was noticeably higher than the federal sector, while mid-term and long-term securities performed particularly well:

Continue reading here.


Also check out: Mawer Canadian Equity Fund Undervalued Stocks Mawer Canadian Equity Fund Top Growth Companies Mawer Canadian Equity Fund High Yield stocks, and Stocks that Mawer Canadian Equity Fund keeps buying Mawer New Canada Fund Undervalued Stocks Mawer New Canada Fund Top Growth Companies Mawer New Canada Fund High Yield stocks, and Stocks that Mawer New Canada Fund keeps buying
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Thursday, April 17, 2014

3 Unexpected Stocks to Buy in a Market Crash

RSS Logo Lawrence Meyers Popular Posts: 3 Cash-Rich Stocks to Buy Now3 Legendary Names to Hold for Retirement3 Unexpected Stocks to Buy in a Market Crash Recent Posts: 3 Unexpected Stocks to Buy in a Market Crash 3 Naked Puts Worth a Cool $1,000 in Income PriceSmart (PSMT): Plenty of Growth … But at What Cost? View All Posts

Everyone seems to be speculating that a major correction is coming to the stock market. We had an outstandingly good year in 2013, industries like tech and biotech are selling off, and we seem due for a significant dip.

arrows 3 Unexpected Stocks to Buy in a Market CrashThat always seems to be the case as the market climbs the wall of worry, and with several indices near all-time highs, the panic is becoming palpable. Whenever I get that vibe, I set up a shopping list of stocks to buy if such a correction or crash comes to pass. After all, the upside of a crash is that it provides a great buying opportunity for many stocks.

Rather than pick the obvious candidates, I also like to look for great stocks to buy that might not be on most investors' radar. Here are three such stocks to buy:

InterActiveCorp (IACI)

InterActiveCorp IAC 185 3 Unexpected Stocks to Buy in a Market CrashInterActiveCorp (IACI) is Barry Diller's conglomerate of internet companies, not terribly different from John Malone's Liberty Interactive (LINTA). The strategy for IACI stock has been to wait for a leader in a given sector to emerge and then buy it up, or at least a portion of it. These businesses either have a history of generating lots of cash flow, or have the potential to do so.

Cash flow is what Malone and Diller have always been about, and they have succeeded mightily at it. Only this past year has the market rewarded them, as analysts and investors had trouble valuing the companies because it trades more on cash flow than earnings. I like IACI stock more as it has more assets, including Ask.com, Match.com, HomeAdvisor, Vimeo, Investopedia and plenty more.

Diller then spins off some of these entities into public companies, as he did with Home Shopping Network (HSNI) and timeshare company Interval Leisure Group (IILG). The company's 52 week high was $80.64, it trades right now at $66. I'd love to make this one of my stocks to buy in the below the $50 mark, but IACI would be a bargain under $55.

Middleby Corporation (MIDD)

Middleby Corporation 185 3 Unexpected Stocks to Buy in a Market CrashMiddleby Corporation (MIDD) started as an oven company in 1888. Over its history, it has expanded into a global food service, processing, and residential kitchen equipment manufacturer and distributor.

MIDD stock was a $9 stock in 2005. It peaked just under $300 recently and is finally coming back to earth, presently at $255. You'll be amazed to learn that analysts project 25% annualized earnings growth over the next five years. At FY14 earnings of $9.93, it's essentially fairly valued, even at this price.

MIDD only has some $500 million in debt, and virtually no capex, so it's consistently generating free cash flow in the $120 million to $140 million range annually. I would love to see it at $200, but MIDD would still make the stocks to buy list at $225.

Starbucks (SBUX)

Starbucks185 3 Unexpected Stocks to Buy in a Market CrashLast on our list of stocks to buy is Starbucks (SBUX).

I don't know why I was so skeptical about SBUX stock for so long. I remember considering it back in 1998 but didn't believe it could grow much further. Wrong!

The truth about SBUX stock is that it just continues to innovate, to leverage its brand, and to expand into areas that at first make me wonder but always manage to deliver. SBUX stock hit a high at $82.50, but now sits at $68. It continues to grow earnings at 20% per year, and on FY14 earnings of $2.66, the fair value is around $53.

But I give Starbucks a bonus for its brand and cash flow, so it may be closer to $58. I'd buy it there.

As of this writing, Lawrence Meyers was long SBUX. He is president of PDL Broker, Inc., which brokers financing, strategic investments and distressed asset purchases between private equity firms and businesses. He also has written two books and blogs about public policy, journalistic integrity, popular culture, and world affairs. Contact him at pdlcapital66@gmail.com and follow his tweets @ichabodscranium.

Wednesday, April 16, 2014

Pressure mounts on advisers to lower fees

Advisers, financial planners, assets under management, fee-based service, revenue

A national focus on financial industry fees has moved into the advisory realm.

Clients are increasingly asking their financial advisers to lower — or at least explain — what they are paying in investment and advisory fees, some advisers said.

“We're receiving more phone calls asking to have this discussion about fees,” said Carl Bailey of Bailey & Beatty Financial Services. “We aren't being forced to lower fees across the board, but we are discussing why we do what we do and explaining the services we do for clients that we don't charge for.”

Some clients are questioning the 1% or so they typically pay in fees to an adviser when, say, their adviser's portfolio earned them 15% last year and they could have generated 19% with an investment in a Vanguard portfolio that charges under half a percent, Mr. Beatty said.

(Don't miss: SEC tags Transamerica Financial Advisors for miscalculating fees, overcharging clients)

The federal government's focus on financial fees in recent years is likely one reason more clients are talking about them. The Labor Department's rules requiring retirement plans to spell out the fees investors pay has more of the public and the blogosphere questioning what Americans pay for all financial services.

The Securities and Exchange Commission also issued an investor bulletin in February recommending that investors ask their financial professionals about fees. The front page of that alert depicts a $100,000 investment that grows to about $205,000 over 20 years paying a 0.25% annual fee versus growth to $180,000 over the same period incurring a 1% annual fee.

In addition, advertisements from low-cost investing options — like exchange-traded-fund providers, online advice providers and discount brokers — are keeping the subject at the top of investors' minds, even those who engage a comprehensive financial planner.

(See also: Merrill Lynch's Thiel: Fee transparency key to restoring trust)

Mike Albertson, president of TradeWell Tax & Financial, said clients today regularly ask to discuss fees, and some ask for them to be lowered. A client on Monday brought along to his quarterly review an article from his local paper that discussed internal fees in 401(k) plans. It led to a conversation about all the financial fees that the client pays, Mr. Albertson said.

“The article laid out the destructive nature of ongoing internal fees eroding retirement savings,” he said.

Mr. Albertson doesn't think that investors mind paying fees as long as they are getting service and performance.

̶! 0;Clients' patience with advisers who are making more than the client, those days are long gone,” he said. “Baby boomers are retiring now more educated than ever because of technology and social media.”

The upshot of this fee-pressure trend was revealed in a PriceMetrix Inc. data release last week showing advisers earning less from client assets in recent years. Advisers generated an average 0.99% from fee-based accounts last year, compared to 1.06% in 2012 and 1.14% in 2011.

“Advisers are seeing a downward trend in terms of fee pricing,” said Patrick Kennedy, co-founder of PriceMetrix, a practice management software firm.

Firms will need to respond to the downward pressure on fees, as well as figure out how to deliver “a value proposition” to attract and keep the most desired clients, Mr. Kennedy said.

Mr. Bailey said his firm is looking “long and hard about everything to do with fees internally” and moving more assets to low-cost ETFs that track the S&P 500.

He also explains to clients the long-term value of active management and reminds them how he helps protect them from the downside risk of the markets in volatile periods.

Jeff Roof, founder of Roof Advisory Group Inc., said he hasn't noticed clients asking more about fees, but he regularly reminds them that the firm is actively managing their funds, including buying and selling individual stocks.

“We spend a lot of time demonstrating to our clientele the value that we are adding for what they are paying,” he said.

Mr. Roof's firm charges 1% or less depending on total assets, and has had the same pricing for 16 years, though the firm has raised the minimum annual account fee over the years.

Tuesday, April 15, 2014

10 Best Retail Stocks To Own Right Now

Small cap stocks Beeston Enterprises Ltd (OTCMKTS: BESE) and HD Retail Solutions Inc (OTCMKTS: HDRE) surged 33.33% and 11.54%, respectively, on Black Friday while Frontier Beverage Company Inc (OTCMKTS: FBEC) sank 18.18%. And while Black Friday might be the most important shopping day of the year for retailers, its probably not a day that sees a lot of action from investors and traders still digesting their Thanksgiving meals (or busy looking for deals at their favorite retailers). So what direction will these three small cap stocks do for investors and traders this week? Here is a closer look to help you decide:

Beeston Enterprises Ltd (OTCMKTS: BESE) Suddenly Comes to Life for Investors and Traders

Small cap Beeston Enterprises is an exploration stage company engaged in the search of mineral deposits that can be developed to a state of commercially viable producing mine. Beeston Enterprises has mineral claims known as the "Ruth Lake Property" located 25 kilometers from Lac La Hache, British Columbia, Canada. On Friday, Beeston Enterprises surged 33.33% to $0.002 for a market cap of $529,987 plus BESE is down 51.22% since the start of the year and down 97.5% over the past five years according to Google Finance.

10 Best Retail Stocks To Own Right Now: Coach Inc (COH)

Coach, Inc. (Coach), incorporated in June 2000, is a marketer of fine accessories and gifts for women and men. Coach�� product offerings include women�� and men�� bag, accessories, business cases, footwear, wearables, jewelry, sunwear, travel bags, watches and fragrance. The Company operates in two segments: Direct-to-Consumer and Indirect. Accessories include women�� and men�� small leather goods, novelty accessories and women�� and men�� belts. Women�� small leather goods, which coordinate with its handbags, include money pieces, wristlets, and cosmetic cases. Men�� small leather goods consist primarily of wallets and card cases. Novelty accessories include time management and electronic accessories. Key rings and charms are also included in this category. Men�� handbag collections include business cases, computer bags, messenger-style bags and totes. Footwear is distributed through select Coach retail stores, coach.com and about 1,000 United States department stores. Wearables category is comprised of jackets, sweaters, gloves, hats and scarves, including both cold weather and fashion.

The Company�� Jewelry category is comprised of bangle bracelets, necklaces, rings and earrings offered in both sterling silver and non-precious metals. Marchon Eyewear, Inc. (Marchon) is the Coach�� eyewear licensee. Coach sunglasses are sold in Coach retail stores and coach.com, department stores, select sunglass retailers and optical retailers in major markets. The travel collections are comprised of luggage and related accessories, such as travel kits and valet trays. Movado Group, Inc. (Movado) is the Company�� watch licensee, which develops a collection of watches.

Estee Lauder Companies Inc. (Estee Lauder), through its subsidiary, Aramis Inc., is Coach�� fragrance licensee. Fragrance is distributed through Coach retail stores, coach.com and about 4,000 United States department stores and 500 international locations. Coach offers four women�� fragrance col! lections and one men�� fragrance. The women�� fragrance collections include eau de perfume spray, eau de toilette spray, purse spray, body lotion and body splashes.

Direct-to-Consumer Segment

The Direct-to-Consumer segment consists of channels that provide the Company with immediate, controlled access to consumers: Coach-operated stores in North America; Japan; Hong Kong, Macau, and mainland China, Taiwan, Singapore and the Internet. This segment represented approximately 89% of Coach�� total net sales during the fiscal year ended June 30, 2012 (fiscal 2012), with North American stores and the Internet, Coach Japan and Coach China contributing approximately 63%, 18% and 6% of total net sales, respectively. Coach stores are located in regional shopping centers and metropolitan areas throughout the United States and Canada. The retail stores carry an assortment of products. Its stores are located in locations, such as New York, Chicago, San Francisco and Toronto.

Coach�� factory stores serve as a means to sell manufactured-for-factory-store product, including factory exclusives, as well as discontinued and irregular inventory outside the retail channel. These stores operate under the Coach Factory name. Coach�� factory store design, visual presentations and customer service levels support. Coach views its Website as a key communications vehicle for the brand to promote traffic in Coach retail stores and department store locations. Its online store provides a showcase environment where consumers can browse through a selected offering of the latest styles and colors.

Coach Japan operates department store shop-in-shop locations and freestanding flagship, retail and factory stores, as well as an e-commerce Website. Flagship stores offer an assortment of Coach products that are located in select shopping districts throughout Japan. Coach China operates department store shop-in-shop locations, as well as freestanding flagship, retail and factory sto! res. Flag! ship stores, which offer an assortment of Coach products, are located in select shopping districts throughout Hong Kong and mainland China. Coach Singapore and Taiwan operate department store shop-in-shop locations as well as freestanding flagship, retail and factory stores. Flagship stores, which offer a range of assortment of Coach products, are located in select shopping districts in Singapore and Taiwan.

The Reed Krakoff brand represents New American luxury primarily for handbags, accessories and ready-to-wear. Reed Krakoff operates department store shop-in-shop locations, freestanding flagship stores, as well as an e-commerce Website at reedkrakoff.com. Flagship stores, which offer an assortment of Reed Krakoff products, are located in select shopping districts in the United States and Japan.

Indirect Segment

The Indirect segment represented approximately 11% of total net sales in fiscal 2012, with United States Wholesale and Coach International representing approximately 6% and 4% of total net sales, respectively. The Indirect segment also includes royalties earned on licensed product. U.S. Wholesale channel offers access to Coach products to consumers who prefer shopping at department stores. Coach products are also available on macys.com, dillards.com, bloomingdales.com, lordandtaylor.com, belk.com, vonmaur.com and nordstrom.com. Coach�� products are sold in approximately 990 wholesale locations in the United States and Canada. Its U.S. wholesale customers are Macy�� (including Bloomingdale��), Dillard��, Nordstrom, Lord & Taylor, Carson�� and Saks Fifth Avenue.

Coach International channel represents sales to international wholesale distributors and authorized retailers. Coach has developed relationships with a select group of distributors who sell Coach products through department stores and freestanding retail locations in over 20 countries. Coach�� network of international distributors serves various markets: South Korea, US & T! erritorie! s, Taiwan, Malaysia, Hong Kong, Mexico, Saudi Arabia, Thailand, Japan, Australia, Singapore, UAE, France, China, Macau, Indonesia, Kuwait, Bahamas, Aruba, Vietnam, New Zealand, Bahrain, India and Brazil.

Advisors' Opinion:
  • [By Joseph Solitro]

    How was the quarter in comparison with those of competitors?
    Michael Kors (NYSE: KORS  ) and Coach (NYSE: COH  ) , two of Tiffany's largest competitors, have also recently reported their quarterly results. Michael Kors released its third-quarter report for fiscal 2014 on Feb. 4 and Coach released its second-quarter report for fiscal 2014 on Jan. 22; let's see how Tiffany stacked up versus these two luxury giants:

  • [By Rick Aristotle Munarriz]

    Alamy Legend has it that there's a list separating the naughty and nice kids this time of year. The same thing can be said about retailers, and only some are expected to be on Santa's good list this year. Let's go over some of the merchants that analysts predict will see double-digit revenue growth during retail's most important quarter. Michael Kors (KORS) -- Holiday quarter sales expected to rise 35 percent The hot name in designer handbags and accessories isn't Coach (COH) anymore. In fact, Coach saw sales and earnings dip slightly in its latest quarter. The luxury brand that folks clamor for these days is Kors. The average Kors store sold 23 percent more in its latest quarter than it did a year earlier, and that's exactly the kind of momentum that investors like to see heading into the critical holiday shopping season. Between expansion and store-level performance, Kors should be one of the biggest retail winners this quarter. Five Below (FIVE) -- Holiday quarter sales expected to rise 25 percent There are plenty of dollar stores out there, but this "cheap chic" hub sets the bar at $5 or less. The extra pricing wiggle room gives it more room to offer clothing, gadgets, and house wares that folks can actually use. Five Below's appeal stems largely from its fashion-forward focus. It's the "dollar" store that teens and young adults don't mind shopping at, and with just 276 stores out there Five Below still has plenty of expansion room to tackle. Conn's (CONN) -- Holiday quarter sales expected to rise 37 percent Consumer electronics isn't the growth industry that we many imagined it would be in this era of smartphones and tablets. Market leader Best Buy (BBY) isn't expected to grow holiday sales at all this quarter. Folks buying smartphones, tablets, and new video game consoles were the same ones buying pricier TVs and laptops in prior years. Conn's is different. Consumer electronics is just one of the many things that it's known for since it's a big pl

10 Best Retail Stocks To Own Right Now: Vipshop Holdings Ltd (VIPS)

Vipshop Holdings Limited (Vipshop Holdings), incorporated on August 27, 2010, is a holding company. Vipshop Holdings conducts its business through its subsidiaries and consolidated affiliated entity in the People's Republic of China. The Company is engaged in the online discount retailer for various brands. It offers branded products to consumers in China through flash sales on its vipshop.com Website. As of February 17, 2012, it had the rights to sell selective products from over 360 brands. As of December 31, 2011, it had offered diversified product offerings from over 1,900 popular domestic and international brands on its Website, including Aimer, A-life, Bossini, Disney, FOX, Harry Potter, Kappa, KUHLE, Lily, Limi, Mentholatum, Metersbonwe, MEXICAN, Ochirly and Pepsi. As of December 31, 2011, it owned seven registered trademarks, copyrights to six software programs developed by the Company, and four registered domain names, such as vipshop.com, vipshop.com.cn, vipshop.cn and vipshop.net.

In February 2014, the Company announced that it has acquired a 75 % interest in Lefeng.com Limited from Ovation Entertainment Limited.

The Company�� business model provides an online shopping for its customers. It offers new sales events with a selection of popular branded products at discounted prices in limited quantities during limited time periods. As of February 17, 2012, its total number of customers were 0.9 million, representing 60.6% of the total number of its customers. The Company offers a curated selection of apparel, fashion goods, cosmetics, home goods and lifestyle products from popular domestic and international brands. Its Product Category include womenswear, menswear, footwear, accessories, handbags, children, sportswear and sporting goods, cosmetics, home goods and other, lifestyle products, luxury goods and gifts and miscellaneous.

The Company competes with B2C e-commerce, Taobao Mall, 360Buy and Dangdang.

Advisors' Opinion:
  • [By Rick Munarriz]

    Dangdang and LightInTheBox were polar opposites for the quarter in nearly every performance metric, and that opens the speculative door to see how Vipshop (NYSE: VIPS  ) fares when it reports after Monday's market close. To be fair, it shouldn't disappoint. Vipshop has been the fastest growing of the three -- by far -- and it's also been the one's that consistently profitable.

Top 10 Information Technology Companies To Own In Right Now: Lojas Renner SA (LREN3)

Lojas Renner SA is a Brazil- based company primarily involved in the operation of department stores. The Company divides its business into two segments. The Retail segment is engaged in sale of women's, men's and children's apparels, underwear and shoes, as well as sportswear and other department stores' articles in the domestic market. The Company also sells household articles, bedding and bath items, furniture and decoration articles. The Financial products segment is involved in the intermediation of financial services, including brokerage of personal loans, sales financing, brokerage of insurance and bonds, and credit card processing, among others. The Company operates through a numerous subsidiaries, including Dromegon Participacoes Ltda, Renner Administradora de Cartoes de Credito Ltda, Renner Empreendimentos Ltda and Maxmix Comercial Ltda. Advisors' Opinion:
  • [By Ney Hayashi]

    Anhanguera Educacional Participacoes SA (AEDU3) tumbled after Brazil�� antitrust regulator signaled it may limit the education company�� merger with competitor Kroton Educacional SA. (KROT3) Lojas Renner SA (LREN3) led retailers higher after a report showed Brazil�� industrial production expanded faster than expected in October, easing concern that growth is faltering.

10 Best Retail Stocks To Own Right Now: Rite Aid Corp (RAD)

Rite Aid Corporation, incorporated in 1968, is a retail drugstore chain in the United States. As of March 3, 2012, the Company operated drugstores in 31 states across the country and in the District of Columbia. As of March 3, 2012, it operated 4,667 stores. In the Company�� stores, it sells prescription drugs and a range of other merchandise, which it calls front end products. During the fiscal year ended March 3, 2012 (fiscal 2012), prescription drug sales accounted for 68.1% of its total sales. The Company carries a range of front end products, which accounted for 31.9% of its total sales in fiscal 2012. Front end products include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, beverages, convenience foods, greeting cards, seasonal merchandise and other everyday and convenience products, as well as photo processing. It offers a variety of products under its private brands, which contributed approximately 17% of its front end sales in the categories where private brand products were offered in fiscal 2012. As of March 3, 2012, the Company had opened over 2,100 GNC stores-within-Rite Aid-stores. During fiscal 2012, the Company sold two owned operating stores to independent third parties.

During fiscal 2012, its stores filled approximately 295 million prescriptions and served an average of 2.1 million customers per day. The overall average size of each store in its chain is approximately 12,600 square feet. As of March 3, 2012, 60% of its stores were freestanding; 51% of its stores included a drive-thru pharmacy; 24% included one-hour photo shops, and 46% included a GNC store-within-Rite Aid-store. The Company�� customers may also order prescription refills over the Internet through www.riteaid.com, or over the phone through its telephonic automated refill systems for pick up at a Rite Aid store. It has a strategic alliance with GNC, a retailer of vitamin and mineral supplements.

Advisors' Opinion:
  • [By Callie Bost]

    Intel Corp. gained 2.8 percent after Citigroup Inc. advised investors to buy the stock. Sears Holding Corp. (SHLD) climbed 2 percent after the retailer said it plans to spin off its Lands�� End mail order business. Rite Aid (RAD) Corp. added 2.8 percent after November sales at stores open more than a year rose more than analysts��estimated.

  • [By Dan Caplinger]

    Walgreen (NYSE: WAG  ) will release its quarterly report on Friday, and investors have been pleased with the drugstore chain's success lately, bidding its shares to all-time record highs within the past month. Yet with Rite Aid (NYSE: RAD  ) having risen from the ashes to become profitable and with CVS Caremark (NYSE: CVS  ) still posing a big obstacle to Walgreen's dominance of the industry, the question investors are asking is whether Walgreen earnings can keep up the pace.

  • [By Ben Eisen and Saumya Vaishampayan]

    Rite Aid Corp. (RAD) �advanced 9.2% after the drug store chain said same-store sales increased 2.9% in December over the same period a year ago, due to growth in its pharmacy division.

  • [By Jayson Derrick]

    Rite Aid (NYSE: RAD) lowered its full year fiscal 2013 EPS guidance to a range of $0.17 to $0.23 compared to a previous guidance in the range of $0.18 to $0.27. Shares lost 10.24 percent, closing at $5.17.

10 Best Retail Stocks To Own Right Now: Advance Auto Parts Inc(AAP)

Advance Auto Parts, Inc., through its subsidiaries, operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. It operates in two segments, Advance Auto Parts (AAP) and Autopart International (AI). The AAP segment operates stores, which primarily offer auto parts, including alternators, batteries, chassis parts, clutches, engines and engine parts, radiators, starters, transmissions, and water pumps; accessories comprising floor mats, mirrors, vent shades, MP3 and cell phone accessories, and seat and steering wheel covers; chemicals consisting of antifreeze, freon, fuel additives, and car washes and waxes; and oil and other automotive petroleum products. This segment also provides battery and wiper installation, battery charging, check engine light reading, electrical system testing, video clinics and project brochures, loaner tool programs, and oil and battery recycling services; and sells its products through online. The AI segm ent operates stores that offer replacement parts for domestic and imported cars, and light trucks to customers in northeast and mid-Atlantic regions, as well as to warehouse distributors and jobbers in North America. As of January 1, 2011, the company operated 3,369 AAP stores, including 3,343 stores located in the northeastern, southeastern, and Midwestern regions of the United States under the Advance Auto Parts and Advance Discount Auto Parts trade names; 26 stores situated in Puerto Rico and the Virgin Islands under the Advance Auto Parts and Western Auto trade names; and 194 stores under the Autopart International trade name in the United States. It serves do-it-yourself, do-it-for-me, or commercial customers. The company was founded in 1929 and is based in Roanoke, Virginia.

Advisors' Opinion:
  • [By CanadianValue]

    At the end of 2011, Advance Auto Parts (AAP) and O��eilly Automotive (ORLY) were the fifth- and tenth-largest positions in the Fund, respectively, and together constituted 6.2% of our assets. Auto parts retail is a difficult business for all but the most efficient players. An auto parts retailer must carry literally thousands of hard parts for hundreds of models of cars. Not many people walk in the door needing an alternator for a 1994 Ford, but the person who does is probably experiencing a crisis. The retailer who can manage a substantial investment in slow-turning parts inventory is able to earn a high margin on sales.

  • [By Daniel Miller]

    Rather than pull my money out at the wrong time, as so many people did, I invested in specific trend-bucking, low-beta stocks -- O'Reilly (NASDAQ: ORLY  ) , Advance Auto Parts (NYSE: AAP  ) , and AutoZone (NYSE: AZO  ) . I did so while following Lynch's advice to "invest in what you know." To allow me to tell my story, let me briefly explain what the beta number is and how it works. Then I'll tell you why I picked those stocks and explain how you can do it next time.

10 Best Retail Stocks To Own Right Now: Arch Therapeutics Inc (ARTH)

Arch Therapeutics, Inc. (Arch), formerly Almah, Inc., incorporated on September 16, 2009, operates as a life science company developing polymers containing peptides intended to form gel-like barriers over wounds to stop or control bleeding. Arch is a medical device company offering an approach to the rapid cessation of bleeding (hemostasis) and control of fluid leakage (sealant) during surgery and trauma care. Arch�� products are in preclinical development. The first product, AC5, is designed for hemostasis in minimally invasive (laparoscopic) and open surgical procedures.

AC5

AC5 is a synthetic peptide consisting of naturally occurring amino acids. When squirted or sprayed onto a wound, AC5 intercalates into the nooks and crannies of the connective tissue where it builds itself into a physical, mechanical structure. That structure provides a barrier to leaking substances, including blood and other bodily fluids, regardless of type of surgery or, based on early data, clotting ability.

Advisors' Opinion:
  • [By John Udovich]

    Laparoscopic surgery or minimally invasive surgery (MIS) is a type of surgical technique where�operations in the abdomen are performed through small incisions while small cap stocks ArthroCare Corporation (NASDAQ: ARTC), EDAP TMS S.A. (NASDAQ: EDAP), SafeStitch Medical Inc (OTCBB: SFES) and Arch Therapeutics Inc (OTCBB: ARTH) are all in some way focused on aiding minimally invasive procedures. According to a 2012 report produced by MedMarket Diligence, LLC, approximately 114 million surgical and procedure-based wounds occur annually worldwide,�including�36 million in the US, and perhaps�up to a quarter of these procedures can be described as laparoscopic in nature.�Moreover,�use of the technique is bound to increase�as�it reduces�pain and hemorrhaging plus leads to a�shorter recovery time.

  • [By Bryan Murphy]

    When traders think of post-surgical wound management stocks, they may first think of names like Cytomedix, Inc. (OTCBB:CMXI) or Alliqua Inc. (OTCMKTS:ALQA). And well they should. Both companies have something of a history in the arena. ALQA is the purveyor of SilverSeal and Hydress antibiotic bandages, while CMXI is the developer of the AutoloGel system, which induces an affected patient's on body to do what it's supposed to do if there's a wound that won't heal. Cytomedix also makes the Angel platelet-rich plasma (PRP) delivery system. There's a relatively new name to add to the list of game-changing stocks in wound-management industry, however.... Arch Therapeutics Inc. (OTCBB:ARTH). The company is developing - well, has developed - a product called AC5 that nips post-surgical bleeding in the bud, largely negating the need for other post-surgical bleeding-control measures.

  • [By James E. Brumley]

    With each passing day, the opportunity Arch Therapeutics Inc. (OTCBB:ARTH) is presenting to investors gets a little bit clearer... as clear as AC5. What's AC5? It's a hemostasis agent. In other words, it stops post-surgical bleeding. It doesn't do the job quite like anything else out there, though, and that's a good thing for current and/or future ARTH shareholders.

10 Best Retail Stocks To Own Right Now: FTD Companies Inc (FTD)

FTD Companies, Inc. (FTD), incorporated on April 25, 2008, is a floral and gifting company. The Company provides floral, gift and related products and services to consumers and retail florists, as well as to other retail locations offering floral and gift products primarily in the United States, Canada, the United Kingdom, and the Republic of Ireland. The Company operates in one segment, which includes floral and related products and services. Its business uses the FTD and Interflora brands, both supported by the Mercury Man logo. The Company�� portfolio of brands also includes Flying Flowers, Flowers Direct, and Drake Algar in the United Kingdom. On November 1, 2013, United Online, Inc. (United Online) completed the separation of United Online into two independent, publicly traded companies: FTD Companies, Inc. and United Online, Inc.

The Company�� products revenues are derived primarily from selling floral, gift and related products to consumers and the related shipping and service fees. Products revenues also include revenues generated from sales of hard goods, software and hardware systems, cut flowers, packaging and promotional products, and a range of other floral-related supplies to floral network members. Its services revenues related to orders sent through the floral network are variable based on either the number of orders or on the value of orders and are recognized in the period in which the orders.

Advisors' Opinion:
  • [By John Udovich]

    As we head towards Black Friday, small cap specialty retail stocks United Online, Inc (NASDAQ: UNTD), TravelCenters of America LLC (NYSE: TA) and MarineMax, Inc (NYSE: HZO) have the distinction of being the best performing small cap�specialty retail stocks for this year (according to Finviz.com) with gains of 181.2%, 123.8% and 71.8%, respectively. With those returns in mind, what are these small cap specialty retail stocks doing right and will the performance last through the all important holiday season? Here is what new and existing investors and traders alike need to know or consider:

    United Online, Inc.�A provider of consumer products and services over the Internet, United Online�� Content & Media segment services are online nostalgia (Memory Lane) and online loyalty marketing (MyPoints) while its�primary Communications segment services are Internet access and email (NetZero and Juno). The reason United Online is among the�best performing specialty retail stocks for this year in various stock screening tools like Finviz.com�is actually misleading as the company has just completed the spin off�of subsidiary FTD Companies, a floral and gifts products company acquired in August 2008 for $441 million, as�FTD Companies Inc (NASDAQ: FTD) where United Online shareholders received one share of FTD common stock for every five shares of United Online common stock they hold. In addition, United Online completed�a�one-for-seven reverse stock split of United Online shares.�On Tuesday, small cap United Online, Inc fell 1.01% to $15.72 (UNTD has a 52 week trading range of $11.65 to $62.30 a share) for a market cap of $207.79 million plus the stock is up 181.2% since the start of the year and up 182.2% over the past five years. Meanwhile, the FTD Companies Inc�now has a�market cap of $611.60 and the stock is up almost 6% since October.

10 Best Retail Stocks To Own Right Now: Vitacost.com Inc (VITC)

Vitacost.com, Inc. (Vitacost), incorporated in May 20, 1994, is an online retailer of health and wellness products, including dietary supplements such as vitamins, minerals, herbs and other botanicals, amino acids and metabolites, as well as cosmetics, natural personal care products, pet products, sports nutrition and health foods. The Company sells these products directly to consumers primarily through its Website, www.vitacost.com. It offers its customers the selection of healthy living products. It offers its customers a selection of approximately 40,000 Stock Keeping Units (SKUs), from over 2,000 third-party brands, such as New Chapter, Nature�� Way, Twinlab, Source Naturals, Jarrow Formulas, Jason, Desert Essence, Atkins, Bob�� Red Mill, BSN, Optimum Nutrition, USP Labs and MuscleTech in addition to its own brands: Vitacost, Cosmeceutical Sciences Institute (CSI), Best of All, and Smart Basics. As of December 31, 2012, the Company had approximately 2.1 million customers.

The Company offers products in a range of potency levels and dosage forms, such as tablets, capsules, vegi-capsules, softgels, gelcaps, liquids and powders. It offers products that encompass four main categories: Vitamins, Minerals, Herbs and Supplements; Sports Nutrition; Beauty; and Natural and Organic Food.

Vitamins, Minerals, Herbs and Supplements (VMHS)

VMHS products are taken to maintain or improve health and address specific health conditions. In its dietary supplements category, the Company offers its offer its Vitacost branded products as well as third-party brands such as Nature�� Way, Twinlab, Jarrow, Carlson and Rainbow Light. Vitamin and mineral products include multi-vitamins, lettered vitamins, such as Vitamin A, C, D, E and B-complex, along with minerals such as calcium, magnesium, chromium and zinc.

Herbal products include whole herbs, standardized extracts, herb combination formulas and teas. Supplements include essential fatty acids, probiotics, anti-o! xidants, phytonutrients and condition-specific formulas.

Sports Nutrition

Sports nutrition products are used in conjunction with cardiovascular conditioning, weight training and sports activities. Major categories in sports nutrition include protein and weight gain powders, meal replacements, nutrition bars, sport drinks and pre and post-workout supplements. The Company offers bodybuilding and sports products from third parties, such as Optimum Nutrition, CytoSport and BSN as well as our Vitacost branded sports nutrition products.

Beauty

Natural care products consist of a variety of natural products for skin, body, hair and oral health. The Company offers hundreds of natural personal-care products from companies, such as JASON, and Kiss My Face, as well as its CSI-branded products. These products appeal to allergen-conscious and environmentally-conscious consumers seeking products that are made without harsh chemicals and additives.

Natural and Organic Food

Natural and organic food products consist of organic and specialty products such as organic peanut butter, gluten free foods and low mercury tuna and salmon. The Company offers third-party brands, such as Kashi, Eden Foods and Amy�� Organic, as well as its Best of All natural food products.

Under its Vitacost brand, the Company offers over 900 products including multivitamins, minerals, herbs, amino acids, anti-oxidants and others. Under its CSI brand, it markets and sells health and beauty products such as facial cleanser, facial and body moisturizing creams and lotions, and other beauty and skincare products. Under its Best of All brand, it markets and sells organic food products such as banana chips, trail mix, almonds, cashews and more. Under its Smart Basics brand, it markets and sells organic fruit juices and extracts and related dietary supplements. Under its Walker Diet brand, it markets and sells low carb powders used to assist in weight loss and ! managemen! t.

Advisors' Opinion:
  • [By Seth Jayson]

    Margins matter. The more Vitacost.com (Nasdaq: VITC  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong Vitacost.com's competitive position could be.

10 Best Retail Stocks To Own Right Now: Zumiez Inc (ZUMZ)

Zumiez Inc. (Zumiez) is a specialty retailer of action sports related apparel, footwear, equipment and accessories operating under the Zumiez brand name. As of January 28, 2012, the Company operated 434 stores in the United States and 10 stores in Canada. In addition, the Company operates a Website that sells merchandise online. At January 28, 2012, its stores averaged approximately 2,900 square feet. Its apparel offerings include tops, bottoms, outerwear and accessories, such as caps, bags and backpacks, belts, jewelry and sunglasses. Zumiez�� footwear offerings primarily consist of action sports related athletic shoes and sandals. Its equipment offerings, or hardgoods, include skateboards, snowboards and ancillary gear, such as boots and bindings. The Company also offers a selection of other items, such as miscellaneous novelties.

The Company supplements its merchandise assortment with a select offering of private label products across many of its apparel product categories. During the fiscal year ended January 28, 2012 (fiscal 2011), its private label merchandise represented 17.7% of the Company�� net sales. The Company sources its private label merchandise from foreign manufacturers worldwide.

The Company competes with Abercrombie & Fitch, Aeropostale, American Apparel, American Eagle Outfitters, Billabong, CCS, Forever 21, Hollister, Hot Topic, Old Navy, Pacific Sunwear of California, The Buckle, Wet Seal, Tilly��, Urban Outfitters, Big 5 Sporting Goods, Dick�� Sporting Goods, Sport Chalet and The Sports Authority.

Advisors' Opinion:
  • [By Paul Ausick]

    Big Earnings Movers: Specialty retailer Quiksilver Inc. (NYSE: ZQK) is up 31.7% at $6.85. Smith & Wesson Holding Corp. (NASDAQ: SWHC) is down 10.2% at $10.31 after issuing weak guidance. Mattress Firm Holding Corp. (NASDAQ: MFRM) is down 14.6% at $35.59. Korn/Ferry International (NYSE: KFY) is up 11.2% at $20.81 after posting a new 52-week high of $20.93 earlier. VeriFone Systems Inc. (NYSE: PAY) is up 10.1% at $22.81. Zumiez Inc. (NASDAQ: ZUMZ) is up 11.2% at $28.11.

  • [By John Kell and Lauren Pollock var popups = dojo.query(".socialByline .popC"); ]

    Zumiez Inc.'s(ZUMZ) fiscal fourth-quarter earnings rose 17%, as the teen-apparel retailer’s total revenue improved, though same-store sales slipped amid a weaker-than-expected holiday season.

10 Best Retail Stocks To Own Right Now: Family Dollar Stores Inc.(FDO)

Family Dollar Stores, Inc. operates a chain of self-service retail discount stores primarily for low and middle income consumers in the United States. The company offers consumables, including household chemicals, paper products, candy and snack products, health and beauty aids, hardware and automotive supplies, and pet food products and supplies; and home products, which comprise domestics, housewares, giftware products, and home decor products. It also provides apparel products and accessories consisting of men?s and women?s clothing products, boys? and girls? clothing products, infants? clothing products, shoes, and fashion accessories; and seasonal products and electronics, such as toys, stationery and school supplies, seasonal goods, and personal electronics. As of August 11, 2011, the company operated approximately 7,000 stores in rural and urban settings across 44 states. Family Dollar Stores, Inc. was founded in 1959 and is headquartered in Matthews, North Carolina .

Advisors' Opinion:
  • [By Jake L'Ecuyer]

    Top Headline
    Family Dollar Stores (NYSE: FDO) reported a drop in its first quarter profit.

    Family Dollar's quarterly profit declined to $78.0 million, or $0.68 per share, versus a year-ago profit of $80.3 million, or $0.69 per share. Its revenue climbed 3.2% to $2.50 billion from $2.42 billion. However, analysts were estimating earnings of $0.69 per share on revenue of $2.51 billion.

  • [By Casey Kelly-Barton]

    While the overall national and global impact of the shutdown will take time to analyze, some big businesses have been up-front about the immediate impact. Family Dollar Stores (NYSE: FDO  ) says the shutdown hit its sales right away (although the company is in growth mode), and Stanley Black & Decker and W.W. Grainger�voiced profit and sales concerns, respectively. The shutdown also created an FCC review backlog for new products from Apple, Google and other tech businesses.

  • [By Editor , Dividend Growth Investor]

    Family Dollar (FDO)�has boosted distributions for 38 years in a row. The company has managed to increase dividends by 13.60% per year over the past decade.Yield: 1.70% (analysis)

  • [By Joseph Hogue]

    Between Sept. 14 and Nov. 15 last year, as investors rushed to companies with solid, government-proof revenue, Family Dollar (NYSE: FDO) gained 2.6%, and Kellogg (NYSE: K) surged 7.4%.