Saturday, November 30, 2013

Is Exxon Mobil Stock Enticing After Recent News?

With shares of Exxon Mobil (NYSE:XOM) trading around $93, is XOM an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework.

T = Trends for a Stock’s Movement

Exxon Mobil is a manufacturer and marketer of commodity petrochemicals like olefins, aromatics, polyethylene, and polypropylene plastics, as well as a range of specialty products. The company has a number of divisions and affiliates with names that include ExxonMobil, Exxon, Esso, and Mobil, which operate or market products in the United States and other countries. Exxon Mobil's principal business is energy, involving the exploration for and production of crude oil and natural gas; manufacture of petroleum products; and transportation and sale of crude oil, natural gas, and petroleum products.

Exxon Mobil sold part of its controversial stake in a massive Iraqi oilfield to PetroChina and Indonesia’s Pertamina amid a long-running row with Baghdad. The sale of the stake in the West Qurna-1 field in south Iraq, one of the country’s largest, marks a key step toward resolving the dispute with the central government over Exxon’s contracts with the autonomous Kurdish region.”The agreement was signed for Exxon Mobil to sell part of its 60 percent stake,” Iraq oil ministry spokesman Assem Jihad said.

T = Technicals on the Stock Chart Are Mixed

Exxon Mobil stock has remained in a range in the last several years. The stock is currently pulling back and may need time to consolidate before heading higher. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Exxon Mobil is trading above its rising key averages, which signals neutral to bullish price action in the near-term.

XOM

Source: Thinkorswim

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

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Exxon Mobil options

15.22%

6%

4%

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

Put IV Skew

Call IV Skew

December Options

Flat

Average

January Options

Flat

Average

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

2013 Q3

2013 Q2

2013 Q1

2012 Q4

Earnings Growth (Y-O-Y)

-14.35%

-54.55%

6%

11.33%

Revenue Growth (Y-O-Y)

-2.41%

-16.41%

-12.29%

-5.29%

Earnings Reaction

0.91%

-1.08%

-1.52%

0.07%

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

P = Average Relative Performance Versus Peers and Sector

How has Exxon Mobil stock done relative to its peers – BP (NYSE:BP), Chevron (NYSE:CVX), and Royal Dutch Shell (NYSE:RDSA) — and sector?

Exxon Mobil

BP

Chevron

Royal Dutch Shell

Sector

Year-to-Date Return

8.38%

12.63%

13.21%

-3.32%

8.72%

Exxon Mobil has been an average relative performer, year-to-date.

Conclusion

Exxon Mobil is a provider of essential commodity products and services that people and companies use around the world. The company sold part of its controversial stake in a massive Iraqi oilfield to PetroChina and Indonesia’s Pertamina. The stock has been trading sideways for a couple of years and is currently pulling back from 2013 highs. Over the last four quarters, earnings have been mixed while revenues have been decreasing, which has produced conflicting feelings among investors. Relative to its peers and sector, Exxon Mobil has been an average year-to-date performer. WAIT AND SEE what Exxon Mobil does this quarter.

Friday, November 29, 2013

Top 10 Growth Companies To Invest In Right Now

��s U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world,��writes Liu Chang in Xinhua, China�� official news outlet. But can China build a de-Americanized world? Can China lead the global economy?

As we wrote in previous pieces, the answer is most likely not, as China lacks four conditions that make its economic growth sustainable.

First, China doesn�� have an ��nfinite��world market frontier for its manufacturing products, as its genuine expansion to world markets comes at a time when capitalism is already approaching its last frontier, having conquered almost every market around the world.

This means that China is pushing against capitalism�� last frontier, and, therefore, it has little room to maneuver before clashing with other world market players that are already well positioned in the global market.

Top 10 Growth Companies To Invest In Right Now: Thoratec Corporation(THOR)

Thoratec Corporation engages in the development, manufacture, and marketing of proprietary medical devices used for circulatory support. The company?s primary product lines include ventricular assist devices, such as HeartMate II, an implantable left ventricular assist device consisting of a rotary blood pump to provide intermediate and long-term mechanical circulatory support (MCS); and HeartMate XVE, an implantable and pulsatile left ventricular assist device for intermediate and longer-term MCS. Its ventricular assist devices also comprise Paracorporeal Ventricular Assist Device, an external pulsatile ventricular assist device, which provides left, right, and biventricular MCS approved for bridge-to-transplantation (BTT), including home discharge, and post-cardiotomy myocardial recovery; and Implantable Ventricular Assist Device, an implantable and pulsatile ventricular assist device designed to provide left, right, and biventricular MCS approved for BTT comprising hom e discharge, and post-cardiotomy myocardial recovery. The company also provides CentriMag, an extracorporeal full-flow acute surgical support platform that offers support up to 30 days for cardiac and respiratory failure. In addition, it offers PediMag and PediVAS extracorporeal full-flow acute surgical support platforms designed to provide acute surgical support to pediatric patients. The company sells its products through direct sales force in the United States, as well as through a network of distributors internationally. Thoratec Corporation was founded in 1976 and is headquartered in Pleasanton, California.

Advisors' Opinion:
  • [By Brian Pacampara]

    What: Shares of medical device company Thoratec (NASDAQ: THOR  ) sank 12% today after its quarterly results missed Wall Street expectations. �

Top 10 Growth Companies To Invest In Right Now: CNO Financial Group Inc. (CNO)

CNO Financial Group, Inc., through its subsidiaries, engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The company markets and distributes Medicare supplement insurance, interest-sensitive and traditional life insurance, fixed annuities, and long-term care insurance products; Medicare advantage plans through a distribution arrangement with Humana Inc.; and Medicare Part D prescription drug plans through a distribution and reinsurance arrangement with Coventry Health Care. It also markets and distributes supplemental health, including specified disease, accident, and hospital indemnity insurance products; and life insurance to middle-income consumers at home and the worksite through independent marketing organizations and insurance agencies. In addition, the company markets primarily graded benefit and simplified issue life insurance products directly to customers through television advertising, direct mail, Internet, and telemarketing. It sells its products through career agents, independent producers, direct marketing, and sales managers. CNO Financial Group, Inc. has strategic alliances with Coventry and Humana. The company was formerly known as Conseco, Inc. and changed its name to CNO Financial Group, Inc. in May 2010. CNO Financial Group, Inc. was founded in 1979 and is headquartered in Carmel, Indiana.

Advisors' Opinion:
  • [By David Fried, Editor, The Buyback Letter]

    Insurance holding company CNO Financial Group (CNO) and its insurance subsidiaries��rincipally Bankers Life and Casualty Company, Washington National, and Colonial Penn Life Insurance Company��erve pre-retiree and retired Americans.

  • [By Jonas Elmerraji]

    Up first is CNO Financial Group (CNO), a mid-cap financial stock that's rocketed close to 60% higher since the calendar flipped over to January. Yup, it's been a great year for the market, but it's been a far better one for investors who own CNO. But that strong performance isn't showing any signs of slowing yet. In fact, CNO looks primed for even more upside in the fourth quarter.

    That's because CNO is currently forming a bullish pattern called an ascending triangle. The ascending triangle pattern is formed by a horizontal resistance level above shares -- in this case at $14.75 -- and uptrending support to the downside. Basically, as CNO bounces in between those two technical price levels, it's getting squeezed closer and closer to a breakout above that $14.75 resistance level. When that breakout happens, it's time to become a buyer.

    ACCO's price action isn't exactly textbook. After all, the pattern is coming in at the bottom of a downtrend, not after an uptrend. But ultimately, that doesn't change the trading implications of a move through that $7.50 level.

    Whenever you're looking at any technical price pattern, it's critical to think in terms of those buyers and sellers. Ascending triangles and other pattern names are a good quick way to explain what's going on in a stock, but they're not the reason it's tradable. Instead, it all comes down to supply and demand for shares.

    That $7.50 resistance level is a price where there has been an excess of supply of shares; in other words, it's a place where sellers have been more eager to step in and take gains than buyers have been to buy. That's what makes a breakout above it so significant. The move means that buyers are finally strong enough to absorb all of the excess supply above that price level.

    Don't be early on this trade.

Top 10 Heal Care Stocks To Own For 2014: Checkpoint Systms Inc.(CKP)

Checkpoint Systems, Inc. manufactures and markets identification, tracking, security, and merchandising solutions for the retail and apparel industry worldwide. The company operates in three segments: Shrink Management Solutions, Apparel Labeling Solutions, and Retail Merchandising Solutions. The Shrink Management Solutions segment provides shrink management and merchandise visibility solutions. It offers electronic article surveillance systems, such as EVOLVE, a suite of RF and RFID-enabled products that act as a deterrent to prevent merchandise theft in retail stores; and electronic article surveillance consumables, including EAS-RF and EAS-EM labels that work in combination with EAS systems to reduce merchandise theft in retail stores. This segment also provides keepers, spider wraps, bottle security, and hard tags, as well as Showsafe, a line alarm system for protecting display merchandise. In addition, it offers physical and electronic store monitoring solutions, incl uding fire alarms, intrusion alarms, and digital video recording systems for retail environments; and RFID tags and labels. The Apparel Labeling Solutions segment provides apparel labeling solutions to apparel retailers, brand owners, and manufacturers. It has Web-enabled apparel labeling solutions platform and network of 28 service bureaus located in 22 countries that supplies customers with customized apparel tags and labels. The Retail Merchandising Solutions segment offers hand-held label applicators and tags, promotional displays, and queuing systems. The company serves retailers in the supermarket, drug store, hypermarket, and mass merchandiser markets through direct distribution and reseller channels. Checkpoint Systems was founded in 1969 and is based in Thorofare, New Jersey.

Advisors' Opinion:
  • [By John Udovich]

    Small cap Checkpoint Systems, Inc (NYSE: CKP) fights shoplifting or retail theft and other forms of�"shrink��that costs retailers over $112 billion worldwide last year (according to a study funded by the company), meaning it might be an interesting stock to take a closer look at and to compare its performance with that of SPDR S&P Retail ETF (NYSEARCA: XRT) and PowerShares Dynamic Retail ETF (NYSEARCA: PMR). Just how bad can shoplifting or shrink be for a retailer? Troubled retailer J.C. Penney Company, Inc (NYSE: JCP) has just reported that shoplifting took a full percentage point off the department store chain's profit margins during the quarter. Moreover and given that tens of millions of Americans are now facing higher health insurance costs thanks to Obamacare (which will likely impact consumer discretionary spending),�retailers�will need to find ways to shore up their margins and bottom lines by preventing�retail theft with solutions from company�� like Checkpoint Systems.

  • [By Rich Smith]

    Three months after settling upon a new chief executive officer, it looks like Thorofare, N. J.-based Checkpoint Systems (NYSE: CKP  ) will soon have itself a new CFO as well.

Top 10 Growth Companies To Invest In Right Now: Sara Lee Corporation(SLE)

Sara Lee Corporation engages in the manufacture and marketing of a range of branded packaged meat, bakery, and beverage products worldwide. Its packaged meat products include hot dogs and corn dogs, breakfast sausages, sandwiches and bowls, smoked and dinner sausages, premium deli and luncheon meats, bacon, beef, turkey, and cooked ham. It also offers frozen baked products, which comprise frozen pies, cakes, cheesecakes, pastries, and other desserts. In addition, Sara Lee provides roast, ground, and liquid coffee; cappuccinos; lattes; and hot and iced teas, as well as refrigerated dough products. The company sells its products under Hillshire Farm, Ball Park, Jimmy Dean, Sara Lee, State Fair, Douwe Egberts, Senseo, Maison du Caf

Top 10 Growth Companies To Invest In Right Now: Crocs Inc.(CROX)

Crocs, Inc. and its subsidiaries engage in the design, development, manufacture, marketing, and distribution of footwear, apparel, and accessories for men, women, and children. The company primarily offers casual and athletic shoes, and shoe charms. It also designs and sells a range of footwear and accessories that utilize its proprietary closed cell-resin, called Croslite. The company?s footwear products include boots, sandals, sneakers, mules, and flats. In addition, it provides footwear products for the hospital, restaurant, hotel, and hospitality markets, as well as general foot care and diabetic-needs markets. Further, the company offers leather and ethylene vinyl acetate based footwear, sandals, and printed apparels principally for the beach, adventure, and action sports markets; and accessories comprising snap-on charms. The company sells its products through the United States and international retailers and distributors, as well as directly to end-user consumers th rough its company-operated retail stores, outlets, kiosks, and Web stores primarily under the Crocs Work, Crocs Rx, Jibbitz, Ocean Minded, and YOU by Crocs brand names. As of December 31, 2010, it operated 164 retail kiosks located in malls and other high foot traffic areas; 138 retail stores; 76 outlet stores; and 46 Web stores. Crocs, Inc. operates in the Americas, Europe, and Asia. The company was formerly known as Western Brands, LLC and changed its name to Crocs, Inc. in January 2005. Crocs, Inc. was founded in 1999 and is headquartered in Niwot, Colorado.

Advisors' Opinion:
  • [By Dividends4Life]

    Memberships and Peers: NKE is a member of the S&P 500 and a member of the Broad Dividend Achievers��Index. The company's peer group includes: Crocs Inc. (CROX) with a 0.0% yield, Deckers Outdoor Corporation (DECK) with a 0.0% yield and Wolverine World Wide Inc. (WWW) with a 0.4% yield.

Top 10 Growth Companies To Invest In Right Now: Eastern Insurance Holdings Inc.(EIHI)

Eastern Insurance Holdings, Inc., through its subsidiaries, provides workers compensation insurance and reinsurance products in the United States. The company?s Workers Compensation Insurance segment provides traditional workers compensation insurance coverage products, including guaranteed cost policies, policyholder dividend policies, retrospectively-rated policies, deductible policies, and alternative market products to employers. This segment distributes its workers? compensation products and services through its independent insurance agents primarily in Pennsylvania, Delaware, North Carolina, Maryland, Indiana, and Virginia. Its Segregated Portfolio Cell Reinsurance segment offers alternative market workers compensation solutions comprising program design, fronting, claims administration, risk management, segregated portfolio cell rental, asset management, and segregated portfolio management services to individual companies, groups, and associations. Eastern Insurance Holdings, Inc. is headquartered in Lancaster, Pennsylvania.

Advisors' Opinion:
  • [By Lauren Pollock]

    ProAssurance Corp.(PRA) agreed to acquire Eastern Insurance Holdings Inc.(EIHI) for about $205 million, expanding the insurance company’s casualty insurance offerings. Eastern Insurance is a domestic casualty insurance group specializing in workers’ compensation products and services, among other things. ProAssurance plans to pay $24.50 in cash for each outstanding Eastern share, a 16% premium over Monday’s closing price.

Top 10 Growth Companies To Invest In Right Now: Intuitive Surgical Inc.(ISRG)

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Its da Vinci surgical system consists of a surgeon?s console or consoles, a patient-side cart, a 3-D vision system, and proprietary ?wristed? instruments. The company?s da Vinci surgical system translates the surgeon?s natural hand movements on instrument controls at the console into corresponding micro-movements of instruments positioned inside the patient through small puncture incisions, or ports. It also manufactures a range of EndoWrist instruments, which incorporate wrist joints for natural dexterity for various surgical procedures. Its EndoWrist instruments consist of forceps, scissors, electrocautery, scalpels, and other surgical tools. In addition, it sells various vision and accessory products for use in conjunction with the da Vinci Surgical System as surgical procedures are performed. The company?s accessory products include sterile drapes used to ensure a sterile field during surgery; vision products, such as replacement 3-D stereo endoscopes, camera heads, light guides, and other items. It markets its products through sales representatives in the United States, and through sales representatives and distributors in international markets. The company was founded in 1995 and is headquartered in Sunnyvale, California.

Advisors' Opinion:
  • [By Rick Munarriz]

    1. The first cut is always the deepest
    The prognosis wasn't favorable for Intuitive Surgical (NASDAQ: ISRG  ) this week, as its shares tumbled 16% on Tuesday after lowering its sales estimates.

  • [By Matt Thalman]

    Editor's note: This video was shot before Intuitive Surgical's (NASDAQ: ISRG  ) recent earnings forecast, in which the stock fell more than 18% in one trading session. The chart presented during the video does not reflect that move.

Top 10 Growth Companies To Invest In Right Now: TrueBlue Inc.(TBI)

TrueBlue, Inc. provides temporary blue-collar staffing services in the United States. It supplies on demand general labor to various industries under the Labor Ready brand; skilled labor to manufacturing and logistics industries under the Spartan Staffing brand; and trades people for commercial, industrial, and residential construction, and building and plant maintenance industries under the CLP Resources brand. The company also provides mechanics and technicians to the aviation maintenance, repair and overhaul, aerospace manufacturing, and assembly industries, as well as to other transportation industries under the Plane Techs brand; and temporary drivers to the transportation and distribution industries under the Centerline brand. It primarily serves small and medium-size businesses. The company was formerly known as Labor Ready, Inc. and changed its name to TrueBlue, Inc. in December 2007. TrueBlue, Inc. was founded in 1985 and is headquartered in Tacoma, Washington.

Advisors' Opinion:
  • [By idahansen]

    The entire demand labor industry should do well as the US Department of Labor just reported that 169,000 more jobs were added to the American economy. The more work there is, the more demand there is for the services of staffing solutions firms such as Labor SMART, Paychex (NASDAQ: PAYX), TrueBlue (NYSE: TBI), and Robert Half International (NYSE: RHI).

  • [By Jonathan Yates]

    Even though the stock market rallied on Federal Reserve Chairman Ben Bernanke's remarks with the Dow Jones Industrial Average (NYSE: DIA) and Standard & Poor's 500 Index (NYSE: SPY) surging, the long term winners will be stocks in the staffing industry such as Paychex(NASDAQ: PAYX), TrueBlue (NYSE: TBI), Robert Half (NYSE: RHI), and Labor SMART (OTCBB: LTNC).

  • [By Jonathan Yates]

    For those looking to invest in real estate stocks, highly recommended is the Dr. Housing Bubble blog. In a recent posting, the "Dr." pointed out that there was a "Lost Generation" when it came to household income. That has not happened for those investing in staffing industry stocks such as Paychex (NASDAQ: PAYX), Robert Half International (NYSE: RHI), TrueBlue, Inc. (NYSE: TBI), and Labor SMART (OTCBB: LTNC).

  • [By Jonathan Yates]

    When looking at small cap stocks, it is useful to compare the company with others that have expanded in both share price and size. For those considering investing in the $100 billion staffing industry, the growth of TrueBlue (NYSE: TBI) shows what could be the potential path for Labor SMART (OTCBB: LTNC), as both operate in the $29 billion demand labor sector. Other firms have done well in the staffing industry include Paychex (NASDAQ: PAYX) and ManPower Group (NYSE: MAN).

Top 10 Growth Companies To Invest In Right Now: Buffalo Wild Wings Inc.(BWLD)

Buffalo Wild Wings, Inc. engages in the ownership, operation, and franchise of restaurants in the United States. The company provides quick casual and casual dining services, as well as serves bottled beers, wines, and liquor. As of July 26, 2011, it had 773 Buffalo Wild Wings locations in 45 states in the United States, as well as in Canada. The company was founded in 1982 and is headquartered in Minneapolis, Minnesota.

Advisors' Opinion:
  • [By Sean Williams]

    Buffalo Wild Wings (NASDAQ: BWLD  )
    Just because consumers refuse to give up their ability to take a vacation doesn't mean they aren't looking for other creative ways to save a dollar. Unless you're staying with family, you don't have much choice when it comes to food -- you have to eat out. I'm going out on a limb and projecting that Buffalo Wild Wings will be one of the biggest beneficiaries of consumers who dine out this summer. If you've kept up with the company's rapid expansion, you'd notice that it's moving into warmer, hot-spot vacation destinations within the United States. In addition, it's been adding new menu items that are reasonably priced and won't break a family of four's bank. With BWW's big sports-bar appeal and NCAA sponsorship, getting traffic into its restaurants this summer shouldn't be difficult. As long as chicken prices cooperate, I expect a sizable upside surprise from BWW in the coming quarters.

  • [By Monica Gerson]

    Buffalo Wild Wings (NASDAQ: BWLD) shares jumped 8.86% to $140.98 in pre-market trading after the company reported upbeat third-quarter results.

    Baidu (NASDAQ: BIDU) shares gained 7.80% to $171.85 in the pre-market session after the company reported higher Q3 profit. Brean Capital upgraded the stock from Hold to Buy.

  • [By Michael Ugulini]

    Craft Brew Alliance and Buffalo Wild Wings (BWLD) are working together on a new beer brew called Game Changer. The company's Redhook has partnered with BWLD.

Top 10 Growth Companies To Invest In Right Now: MEDIFAST INC(MED)

Medifast, Inc., through its subsidiaries, engages in the production, distribution, and sale of weight management and disease management products, and other consumable health and diet products in the United States. The company?s product lines include weight and disease management, meal replacement, and vitamins. It also operates weight control centers that offer Medifast programs for weight loss and maintenance, customized patient counseling, and inbody composition analysis. The company markets its products under the Medifast and Essential brand names, including shakes, appetite suppression shakes, women?s health shakes, diabetics shakes, joint health shakes, coronary health shakes, calorie burn drinks, calorie burn flavor infusers, antioxidant shakes, antioxidant flavor infusers, bars, crunch bars, soups, chili, oatmeal, pudding, scrambled eggs, hot cocoa, cappuccino, chai latte, iced teas, fruit drinks, pretzels, puffs, brownie, pancakes, soy crisps, crackers, and omega 3 and digestive health products. Medifast Inc. sells its products through various channels of distribution comprising Web, call center, independent health advisors, medical professionals, weight loss clinics, and direct consumer marketing supported via the phone and the Web; Take Shape for Life, a physician led network of independent health coaches; and weight control centers. The company was founded in 1980 and is headquartered in Owings Mills, Maryland.

Advisors' Opinion:
  • [By Jon C. Ogg]

    Medifast Inc. (NYSE: MED) saw its stock down 5% in evening trading on Tuesday after the weight loss player had soft sales and guided expectations lower. Shares were still indicated down about 5%, but volume has not yet started.

  • [By Ben Levisohn]

    Shares of Nutrisystem have gained 20% to $18.05 at 1:34 p.m., while Weight Watchers (WTW) has risen 3.6% to $39.42. Medifast (MED), however, has dropped 1.9% to $24.94.

Thursday, November 28, 2013

5 Best Cheap Stocks To Invest In 2014

Someone who reads my articles sent me this email:

Dear Geoff,

I was looking at the fundamental of 18 stocks; I own 5 of them: Apple (AAPL), Abbott Laboratories (ABT), Autodesk (ADSK), Cisco (CSCO) and Exelon (EXC). Others were ideas collected from places like news, etc.

��The ranking exercise (is) based on growth and fundamental analysis. EXC ranks at the bottom in both analyses��op 4 results are Apple, BHP Billiton (BHP), Mosaic (MOS) and Rio Tinto (RIO). MOS was eliminated as it has one year of negative FCF.

Since AAPL is listed as No. 1, I went back and looked at P/E when I bought it at $333 in April and May 2011. The P/E was 11 - 13 times. It is currently 15 times��I think the iPhone 4s plus Sprint network addition plus iPad plus enterprise adoption of Mac will provide an impressive fabric of earning growth that is sustainable.

The other two on the list are basic materials, they could be��good long-term to my stock portfolio. Assuming scarcity as their global trend (need to learn more here.)

From the fundamental analysis: Rio is cheaper than BHP. But, RIO is qualitatively inferior when compared to BHP (ROIC, ROE, ROA). I have not looked at Vale (VALE), so maybe next weekend I will continue this exercise with VALE.

5 Best Cheap Stocks To Invest In 2014: Ford Motor Credit Company(F)

Ford Motor Company primarily develops, manufactures, distributes, and services vehicles and parts worldwide. It operates in two sectors, Automotive and Financial Services. The Automotive sector offers vehicles primarily under the Ford and Lincoln brand names. This sector markets cars, trucks, and parts through retail dealers in North America, and through distributors and dealers outside of North America. It also sells cars and trucks to dealers for sale to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, this sector provides retail customers with a range of after-sale vehicle services and products in the areas, such as maintenance and light repair, heavy repair, collision repair, vehicle accessories, and extended service contracts under the Ford Service, Lincoln Service, Ford Custom Accessories, Ford Extended Service Plan, and Motorcraft brand names. The Financial Services sector offers vari ous automotive financing products to and through automotive dealers. It offers retail financing, which includes retail installment contracts for new and used vehicles; direct financing leases; wholesale financing products that comprise loans to dealers to finance the purchase of vehicle inventory; loans to dealers to finance working capital, purchase real estate dealership, and/or make improvements to dealership facilities; and other financing products, as well as provides insurance services. Ford Motor Company was founded in 1903 and is based in Dearborn, Michigan.

Advisors' Opinion:
  • [By John Rosevear]

    For one thing, they'll be a lot lighter, a necessary change to meet tough new fuel-economy regulations. In this video, Fool contributor John Rosevear shares the latest on GM's plans to make its big pickups much more efficient and looks at how rival Ford (NYSE: F  ) is likely to respond.

  • [By John Rosevear]

    Big gains for the Blue Oval
    Ford (NYSE: F  ) reported a 13% increase in U.S. sales, well ahead of the overall market's 9.2% gain -- and ahead of Wall Street's estimates, too.

  • [By Daniel Miller]

    Investors are hopping on board left and right to get shares of Ford (NYSE: F  ) recently, and for good reason. Not only has the company completed one of the greatest business turnarounds in history, the automotive industry as a whole is rebounding quite nicely in the U.S. ��where Ford derives nearly all of its profits. Recently I brought up two reasons for investors to love owning Ford stock, but I could think of plenty more. So, following that theme, here are two more great reasons to consider hopping on board the Ford bandwagon.

  • [By John Rosevear]

    It has been a public company since the 1950s, but Ford (NYSE: F  ) is unique among Detroit automakers in that it's still a family business. Chairman Bill Ford is founder Henry Ford's great-grandson, and in recent years he has done an excellent job of setting the company's overall direction.

5 Best Cheap Stocks To Invest In 2014: 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 Ben Eisen]

    Given that outlook, he sees ten stocks in the consumer discretionary sector that qualify as bargains at the moment, including some of the very stocks that are expecting downbeat holiday results. They include: Advance Auto Parts Inc. (AAP) , AutoNation, Inc. (AN) , Bed Bath & Beyond Inc. (BBBY) , Carmax, Inc. (KMX) �, Nordstrom Inc. (JWN) �, PetsMart, Inc. (PETM) �, Ross Stores, Inc. (ROST) , Staples, Inc. (SPLS) �, Target Corp. (TGT) �, and Urban Outfitters, Inc. (URBN) .

Best Blue Chip Companies To Invest In Right Now: Wendy's/Arby's Group Inc.(WEN)

The Wendy's Company operates as a quick-service hamburger company in the United States. The company, through its subsidiary, Wendy's International, Inc., operates as a franchisor of the Wendy's restaurant system. As of December 26, 2011, the Wendy's system comprised approximately 6,500 franchise and company restaurants in the United States and the United States territories, as well as in 26 other countries worldwide. The company was formerly known as Wendy's/Arby's Group, Inc. and changed its name to The Wendy's Company in July 2011. The Wendy's Company was founded in 1884 and is headquartered in Dublin, Ohio.

Advisors' Opinion:
  • [By Nicole Seghetti]

    Interestingly, Chipotle's selling, general, and administrative expenses (which include advertising spend) come in at less than 7% of revenues. Compare that with a whopping 26% for Burger King Worldwide (NYSE: BKW  ) , 12% for Wendy's (NASDAQ: WEN  ) , 11% for Yum! Brands, and 8% for McDonald's. Chipotle proves that a trimmed-down SG&A as a percentage of revenues can be quite effective, especially when you boast a competitive advantage like differentiation through focus on quality.

  • [By Jeff Reeves]

    Burger chain Wendy�� (WEN) has soared almost 60% so far in 2012, but remains under $10 a share and is still a decent buy for investors looking at low-priced options right now.

  • [By Nicole Seghetti]

    Competition is intensifying between Nos. 5 and No. 6�on the list, Burger King (NYSE: BKW  ) and Wendy's (NASDAQ: WEN  ) , respectively. Following McDonalds' lead, both are undergoing restaurant renovations. Wendy's reported lousy earnings in the most recent quarter, mostly due to heavy remodel spending. Burger King is following Mickey D's another way -- by copying McDonalds menu. And, also like McDonalds, Wendy's is placing particular emphasis on value-centric consumers. The company has beefed up advertising of its lower-priced items more aggressively this year. Even though CEO Emil Brolick sees the value side of the business as a challenge, Wendy's plans to further hype up its stable of $0.99 menu items.

  • [By Roberto Pedone]

    Another under-$10 stock that's starting to move within range of triggering a major breakout trade is Wendy's (WEN), which operates quick-service restaurants specializing in hamburger sandwiches throughout the U.S. This stock has been on fire so far in 2013, with shares up sharply by 57%.

    If you take a look at the chart for Wendy's, you'll notice that this stock has been trending sideways and consolidating for the last two months, with shares moving between $8.11 on the downside and $8.88 on the upside. This consolidation has been occurring just above WEN's 50-day moving average of $8.23 a share. Shares of WEN are now starting to spike higher and move within range of triggering a major breakout trade above the upper-end of its recent range.

    Market players should now look for long-biased trades in WEN if it manages to break out above its 52-week high at $8.88 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 6.61 million shares. If that breakout hits soon, then WEN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets of that breakout are $12 to $15 a share.

    Traders can look to buy WEN off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average at $8.23 a share, or below more support at $8.11 a share. One can also buy WEN off strength once it clears its 52-week high at $8.88 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

5 Best Cheap Stocks To Invest In 2014: Sprott Resource Lending Corp.(SILU)

Sprott Resource Lending Corp., a natural resource lender, provides bridge and mezzanine financing to precious and base metal mining, exploration, and development companies, as well as energy companies worldwide. The company was formerly known as Quest Capital Corp. and changed its name to Sprott Resource Lending Corp. in September 2010. Sprott Resource Lending Corp. was incorporated in 1980 and is based in Toronto, Canada.

5 Best Cheap Stocks To Invest In 2014: TII Network Technologies Inc.(TIII)

Tii Network Technologies, Inc., together with its subsidiaries, designs, manufactures, and sells products for use in the networks to service providers in the communications industry in the United States. It provides network interface devices (NID), including overvoltage surge protectors, digital subscriber line (DSL) service splitters, and customer bridge modules; building entrance terminals; and accessories comprising station protectors, customer wiring modules, electro-magnetic interference filters, and line test modules. The company also offers broadband products, such as DSL electronic products that include xDSL plain old telephone service splitters to isolate voice and data signals; Outrigger, an outdoor intelligent residential gateway; HomePlug technology that enables networking of voice, data, and audio devices through the consumers? AC power lines. In addition, it provides connectivity products consisting of connector block and terminal block products; voice over I nternet protocol products; switchable voice NID products; voice intercom systems for use in multi-dwelling units; and wire terminals and other connectivity products. Further, the company offers fiber optic products which comprise wall mount enclosures, rack mount enclosures, OSP fiber enclosures, cable assemblies, miscellaneous fiber accessories, and optic network terminals installation accessories. Additionally, it offers overvoltage surge protection products, including two and three electrode gas tubes; station overvoltage surge protectors; protector modules; and protector packs and cat 5 cat 6 protection products, as well as other surge protection products comprising a 75 ohm coaxial protector for cable networks; a 50-ohm coaxial protector for wireless service providers? cell sites; a gel-sealed Ethernet data protector; and power line/data line protectors for personal computers and home entertainment systems. The company was founded in 1964 and is headquartered in Edgewoo d, New York.

Wednesday, November 27, 2013

A Renaissance for IPO Investors

Print FriendlyThe initial public offering (IPO) market is heating up faster than a $10 pistol, and now there’s a new IPO fund on the docket that allows investors to put their favorite new stocks in one basket.

IPO activity is way up these days, with 169 new offerings so far in 2013, which have combined to raise $40 billion in funding. All told, those IPOs have been good to investors, returning, on average, 39 percent over the same time period.

The last three months have been especially active, with 70 IPOs raising $18 billion in new revenues, with investment returns of 30 percent, according to NASDAQ.

With big, brand-name issues like Chipotle (NYSE: CMG) and Facebook (NASDAQ: FB) going public recently, and Twitter (bulging with its network of 200 million active users) set to explode with its own IPO later this year, it’s a great time to kick some tires with a new IPO exchange-traded fund (ETF).

That would be the new Renaissance IPO ETF (NYSE: IPO), released by Renaissance Capital just last week.

The new ETF, which is currently trading in the $21 range after popping up $2 in its first day of trading, is the right fund at the right time, if you ask the folks at Renaissance.

“The launch of the Renaissance IPO ETF is a direct response to increased investor demand for systematic exposure to newly listed IPOs in a low-cost tax-efficient exchange-traded structure,” offers Kathleen Smith, chairwoman at Renaissance Capital. “When added to core US equity holdings, a portfolio of unseasoned publicly traded equities provides investors with more comprehensive exposure to the full set of US public equities.”

Renaissance is looking to mirror the astounding recent success of its Global IPO Fund (IPOSX), which is up 43 percent so far in 2013 (the fund was released in late 1997, and offers a 7 percent average annual return over the past five years).

The new IPO ETF! is specifically designed to track what Renaissance calls “significant newly public companies” by mirroring  the “rules-based Renaissance IPO Index designed by Renaissance Capital’s research team to hold the largest, most liquid newly listed US IPOs,” the company says in a statement.

Renaissance has some hard-and-fast rules about what stocks qualify for the new fund, and when they’ll be kicked out.

The firm says that brand new stocks are plugged into the index “on a fast-entry basis on the fifth day of trading, or upon quarterly review, and are removed after two years when the IPOs become seasoned stocks.”

As of September 30, 2013, the key IPO plays that comprise the fund include: Facebook, at 11 percent of the fund; Zoetis (NYSE: ZTS), an animal health firm, at 10.1 percent; Michael Kors (NASDAQ: KORS), the luxury fashion brand retailer at 9.8 percent; automotive component maker Delphi (NASDAQ: DLPH), at 9.8 percent; and Workday (NASDAQ: WDAY), a cloud-based computing provider, at 4.5 percent.

By and large, IPO targets large-cap stocks, which account for 65 percent of the fund’s holdings. Mid-caps comprise roughly 33 percent, while small caps are an afterthought, making up 2 percent of the fund’s holdings.

Sector-wise, technology rules inside IPO, comprising 24.6 percent of all holdings, followed by financial stocks (18.4 percent) and consumer services (at 16.4 percent).

Renaissance also has its gun sights set on First Trust US IPO Index (NYSE: FPX), which has returned 34 percent so far in 2013, and boasts a three-year average return of 26 percent, and a five-year average annual return of 18 percent (it opened in 2006).

Renaissance will be quicker on the trigger than FPX, with its two-year window on deep-sixing fund holdings. FPX extends out much further hanging on to its “new issues” up to almost three years.

IPO is also more concentrated than FPX, holding 50 stocks comp! ared to 1! 00 stocks, respectively.

Despite the fact that FPX is more entrenched than IPO (and by a long shot), I like the newer fund’s chances for a quick return, and I’m recommending an immediate “buy” despite reservations over an 0.60 percent expense fee. That’s high for an ETF, but it’s the same 60 basis points charged by FPX, and that hasn’t slowed the First Trust IPO ETF down at all.

The facts on the ground say it’s a good time to be into IPOs, with new offerings like Facebook, Chipotle, and Potbelly (NASDAQ: PBPB) all registering strong gains after going public.

Sure, you can buy up these individual stocks, along with Kors and Workday, and Twitter when it rolls out, but for most investors, that’s not easy to manage given their standing in the IPO pecking order.

But a “ground floor” IPO ETF that allows investors to get in fairly early is a winner in my book, especially given the relative financial health of the IPO market going into 2014.

So go long on the new IPO play on the block. Renaissance looks like it’s ready to come out swinging, and you should, too.

Brian O’Connell is an investment analyst at Investing Daily. He has appeared as an expert financial commentator on CNN, NPR, Fox News, Bloomberg, CNBC, C-Span, CBS Radio, and many other media broadcast outlets.

Tuesday, November 26, 2013

Jim Cramer's 6 Stocks in 60 Seconds: CBRL WLL DSW HAIN SPM AEM

Check out Jim Cramer's latest trading recommendations on "Action Alerts Plus".

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

Cramer said Cracker Barrel Old Country Store  (CBRL) blamed the government shutdown as a reason why its earnings report was more disappointing than expected. "I don't buy it," Cramer said.

Whiting Petroleum (WLL) has been under a ton of pressure, according to Cramer. But he was optimistic, saying, the domestic oil company "can come back." 

DSW (DSW) is selling off following its earnings report and Cramer noted "gross margins were under pressure."  JPMorgan says to ignore Barron's article on Hain Celestial Group (HAIN). Cramer agreed, saying CEO Irwin Simon "is doing a great job." Sprouts Farmers Market (SFM) announced a 17 million share secondary offering. Cramer said, "People don't like this group all of a sudden" because SFM is deeply oversold.  "I like Agnico-Eagle Mines (AEM)" Cramer said, but added that "gold ain't going higher," which makes it difficult to own the miners.  To sign up for Jim Cramer's free Booyah! newsletter, with all of his latest articles and videos, please click here. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell

Sunday, November 24, 2013

Finra nudging brokers toward a fiduciary standard?

finra, sec, conflict of interest, broker-dealers

A new report by Finra designed to help brokers avoid conflicts of interest encourages them to adopt a code of conduct that sounds similar to the fiduciary standard followed by investment advisers.

On Monday, the Financial Industry Regulatory Authority Inc. issued a report based on its observations at 14 large firms.

Finra suggested firms avoid conflicts by establishing a firmwide focus on conflicts to set a “tone from the top,” implementing a code of conduct based on the “best interests” standard, making investment recommendations that do not favor proprietary products and compensating brokers independently of the products they recommended.

“The word 'fiduciary' jumps out on every page, even though it isn't mentioned,” said Duane Thompson, senior policy analyst at Fi360, a fiduciary-duty consulting firm. “Finra seems to be moving inexorably in the direction of emphasizing a fiduciarylike standard for disclosure of conflicts.”

5 Best Energy Stocks To Watch Right Now

Currently, investment advisers must act in the best interests of their clients, or meet a fiduciary standard, while brokers adhere to the less stringent suitability standard.

The Finra report is a natural follow-up to its recent modification of the suitability rule, according to Mr. Thompson. That adjustment added more duty of care elements to suitability, while the conflicts report addresses duty of loyalty.

With the release of the conflicts report, another regulator is jumping into the debate over the standard of care for retail clients, according to Matt Kitzi, a partner at Armstrong Teasdale LLP. Last week, an advisory group at the Securities and Exchange Commission urged the agency to move ahead with a rule that would impose a uniform fiduciary standard for retail investment advice.

“There's some building of momentum behind these discussions of disclosure and dealing with conflicts of interest and working in the client's best interests,” said Mr. Kitzi, a former Missouri securities commissioner.

Although the Finra report doesn't create any new requirements for firms, it's likely that brokerages will take the hint and start to implement some of the practices.

“I wouldn't be surprised to see more detailed frameworks that firms are going have to use to identify and remedy conflicts,” said Patrick Mahoney, owner of an eponymous law firm. He's watching for changes in how brokers are paid. “Broker compensation is at the heart of these conflicts of interest.”

But one observer said that Finra's guidance doe! sn't have the teeth to make a real difference in how firms manage conflicts.

“The report is overdue,” said Jonathan G. Heller, president of JGHeller Private Wealth Advisors Inc. “I don't think it goes as far as it needs to to create significant changes in the industry. What it identifies are things that have been talked about within management circles for many years.”

The report does, however, show that Finra is thinking about best-interests standards.

“Finra continues to test the waters, but given the SEC's responsibility in this area, it can't go further with the 'f' word,” Mr. Thompson said. “If Congress were to consider an SRO in the future for investment advisers, one can say that Finra has certainly polished its resume in this area.”

Doug Schriner, president of FA Risk Management Inc., also sees “mission creep” in the Finra conflicts report, following the demise of legislation last year that would have established an adviser SRO.

“If you can’t bring the RIAs to Finra, you bring Finra to the RIAs,” Mr. Schriner said.

In the report, Finra identified dozens of potential conflicts outlined by broker-dealers the regulator surveyed, ranging from managers who spend more time on revenue-generating activities than supervision, compliance staff subjected to pressure from sales management to protect high-producing advisers and registered representatives recommending fee-raising transactions without regard to their suitability for clients.

“While many firms have made progress in improving the way they manage conflicts, our review reveals that firms should do more,” Finra chairman and chief executive Richard G. Ketchum said in a news release. “To help firms analyze the conflicts they face and implement a conflicts management framework appropriate to the size and scope of their business, we are publishing examples of how some large broker-dealer firms address conflicts.”

In the report, Finra ca! lled comp! ensation a “major” source of conflicts of interest.

“The rewards firms offer associated persons may influence their behavior in ways that affect customer interests,” the organization said, adding that it focused on four specific areas it said could “create, exacerbate or mitigate compensation-related conflicts of interest.” The areas included compensation for brokers, surveillance and supervision of registered representatives as they approach compensation thresholds, compensation for supervisory personnel, and deterrents to poor conflicts management.

Finra’s suggestion that firms cap the amount of revenue from a mutual fund or variable annuity fund that can be credited to a broker didn’t sit well with Mr. Schriner.

“That strikes me as anti-competitive and ignorant of pricing models used in the industry,” Mr. Schriner said. New funds have to pay bigger commissions to increase their exposure.

“That [marketing] has to be compensated,” Mr. Schriner said.

(Trevor Hunnicutt contributed to this report.)

Saturday, November 23, 2013

Another Budding "Buy the Rumor, Sell the News" Biotech Opp. (ARNA, VVUS, ETRM)

Look out VIVUS, Inc. (NASDAQ:VVUS) and Arena Pharmaceuticals, Inc. (NASDAQ:ARNA). There's a new weight-loss player ready to take aim at your target market, and its name is EnteroMedics Inc. (NASDAQ:ETRM). If the recent action from ETRM is any indication, the market thinks it could be a real threat to your weight-loss ventures.

Of course, anyone more than a little familiar with EnteroMedics knows the current bullish interest in ETRM hasn't always been the case. This is the same stock that cratered from $2.88 to $1.26 in February of this year when the company announced its primary device - the VBLOC obesity-control device - failed to meet its clinical trial's goals. So what, pray tell, has pushed the stock up from the February low of $0.81 to the current price of $1.27? Hope, for starters.

Although the clinical trial being performed in the U.S. for the FDA ultimately failed, it's not as if the Food and Drug Administration told the company "don't call us, we'll call you." In fact, the device actually does work - the folks in the trial who used the VBLOC technology did lose more weight than the placebo/control group. They just didn't lose an amount that ETRM was hoping for. Just for the record (and perspective), the device is approved for use in Europe and Australia; clearly there's something positive about it. EnteroMedics is still in talks with the FDA regarding the device, with a decision from the agency expected sometime in the first half of 2014.

But is it really a threat to Arena Pharmaceuticals or VIVUS? Maybe.

It's not exactly an apples-to-apples comparison. Belviq from ARNA and Qsymia from VVUS are both orally-taken pills, while the VBLOC technology is a device implanted into a body to make that individual feel full, and in turn stimulates the metabolism of a meal. It's not as crazy as it sounds. Qsymia is an appetite suppressant that chemically indices the release of norepinephrine, and has nothing to do with the burning of calories. Belviq's mechanism of action is the activation of the brain's response to serotonin, which can make an individual feel satiated. But a device implant? It's no crazier than a pacemaker. Point being, it's not like the approach will be too bizarre for the FDA or potential consumers. Indeed, there are many overweight individuals who would prefer not to put an unnatural chemical into their body. At least the VBLOC implant only does what the human body would/should normally be capable of on its own.

With all that being said, the most compelling part of EnteroMedics Inc. right now isn't that it could make a dent in the massive weight-loss market where Arena Pharmaceuticals are already getting a head start. What's most exciting here is that ETRM shares are making technical progress consistent with clues seen in front of major rallies.

For starters, on the weekly chart of this stock we can see how it's rocked its way out of a long-term wedge pattern, and above the upper edge of that triangle shape.

That alone is a bullish clue, but things get even more bullish when we can zoom into a more detailed daily chart of EnteroMedics.

The basic gist of the bullish undertow is clear in the daily timeframe as well, but what shows up on the daily chart of ETRM is the way the bullish volume has really started to pour in over the past four weeks, and how the stock's on the verge (as in maybe today) of hurdling the 200-day moving average line (green). It's also only pennies away from moving above the July peak of $1.37. Any move above those two levels would be, and should be, bullishly catalytic. It may be needlessly cautious to wait for that move, however.

One thing to bear in mind... this may be an idea "buy the rumor/sell the news" scenario, meaning any of the potential gains here are likely to be seen well before any FDA decision is unveiled. Both VVUS and ARNA shares made their biggest gains leading up to their key FDA announcements, and both stocks have struggled following that news. It's not logical or rationale, but it is a trading reality.

Top Small Cap Companies For 2014

If you'd like to get more trading ideas and insights like this one, sign up for the free SmallCap Network daily e-newsletter. It's full of stock picks, market calls, and more.

Thursday, November 21, 2013

4 Stocks Under $10 Moving Higher

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Stocks Set to Soar on Bullish Earnings

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Big Stocks to Trade for Big Gains

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.

Sophiris Bio

Sophiris Bio (SPHS) is a clinical-stage biopharmaceutical company that develops and commercializes innovative products for the treatment of urological diseases. This stock closed up 5.1% to $4.51 in Tuesday's trading session.

Tuesday's Range: $4.25-$4.53

52-Week Range: $4.08-$17.68

Tuesday's Volume: 15,000

Three-Month Average Volume: 71,077

From a technical perspective, SPHS spiked higher here right above some near-term support at $4.08 with lighter-than-average volume. This stock has been trending sideways and consolidating for the last two months and change, with shares moving between $4.08 on the downside and $5.11 on the upside. Shares of SPHS are now starting to trend within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern. That breakout will hit if SPHS manages to take out some key near-term overhead resistance levels at $4.65 to $4.85 to some past overhead resistance at $5.11 with high volume.

Traders should now look for long-biased trades in SPHS as long as it's trending above Tuesday's low of $4.25 or above its 52-week low of $4.08 and then once it sustains a move or close above those breakout levels with volume that hits near or above 71,077 shares. If that breakout hits soon, then SPHS will set up to re-test or possibly take out its next major overhead resistance level at $5.91.

Zhone Technologies

Zhone Technologies (ZHNE) designs, develops and manufactures communications network equipment for telecommunications, wireless and cable operators worldwide. This stock closed up 5% to $3.95 in Tuesday's trading session.

Tuesday's Range: $3.70-$4.06

52-Week Range: $0.40-$4.58

Tuesday's Volume: 567,000

Three-Month Average Volume: 871,360

From a technical perspective, ZHNE trended higher here right above its 50-day moving average of $3.56 with lighter-than-average volume. This stock recently pulled back off its 52-week high of $4.58 to its recent low of $3.61. Shares of ZHNE have now started to find some buying interest each time it has traded near its 50-day over the last few weeks. This action is now starting to push shares of ZHNE within range of triggering a major breakout trade. That trade will hit if ZHNE manages to take out some key near-term overhead resistance at $4.10 and then once it clears more resistance at $4.48 to its 52-week high at $4.58 with high volume.

Traders should now look for long-biased trades in ZHNE as long as it's trending above its 50-day at $3.56 or above more support at $3.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 871,360 shares. If that breakout hits soon, then ZHNE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $5.50 to $6.50

Aeropostale

Aeropostale (ARO) operates as a mall-based retailer of casual apparel and accessories for young women and men in the U.S. This stock closed up 3.9% to $9.51 in Tuesday's trading session.

Tuesday's Range: $9.07-$9.61

52-Week Range: $7.78-$17.10

Tuesday's Volume: 3.37 million

Three-Month Average Volume: 3.74 million

From a technical perspective, ARO trended higher here right off its 50-day moving average of $9.24 with solid upside volume. This move is quickly pushing shares of ARO within range of triggering a near-term breakout trade. That trade will hit if ARO manages to take out some key near-term overhead resistance levels at $9.68 to $9.92 with high volume.

Traders should now look for long-biased trades in ARO as long as it's trending above some near-term support at $9 or above $8.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.74 million shares. If that breakout hits soon, then ARO will set up to re-test or possibly take out its next major overhead resistance level at $10.47. Any high-volume move above $10.47 will then give ARO a chance to tag $11 to $11.50.

Dynavax Technologies

Dynavax Technologies (DVAX), a clinical-stage biopharmaceutical company, discovers and develops novel products to prevent and treat infectious and inflammatory diseases. This stock closed up 5.7% to $1.45 in Tuesday's trading session.

Tuesday's Range: $1.39-$1.47

52-Week Range: $0.98-$3.39

Tuesday's Volume: 12.96 million

Three-Month Average Volume: 2.76 million

From a technical perspective, DVAX trended higher here with monster upside volume. This move briefly pushed shares of DVAX into breakout territory, since the stock flirted with some key overhead resistance levels at $1.43 to $1.46. Shares of DVAX closed just below the latter at $1.45. Market players should now look for a continuation move higher in the short-term if DVAX can manage to take out Tuesday's high of $1.47 to some key past resistance at $1.50 with high volume.

Traders should now look for long-biased trades in DVAX as long as it's trending above some near-term support at $1.30 or above its 50-day at $1.23 and then once it sustains a move or close above $1.47 to $1.50 with volume that hits near or above 2.76 million shares. If we get that move soon, then DVAX will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day of $1.73 to its gap down day high from June just above $1.80. Any high-volume move above $1.80 will then give DVAX a chance to re-fill some of its previous gap down zone that started at $2.60.

Best Clean Energy Stocks To Watch Right Now

To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>5 Stocks Poised for Breakouts



>>5 Stocks Under $10 Set to Soar



>>5 Rocket Stocks for Another Week of New Highs

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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


Wednesday, November 20, 2013

Insiders Are Buying Retrocom Real Estate Investment Trust

One real estate investment trust has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

The stock is purchased by three or more insiders within one month.

The stock is sold by no insiders in the month of intensive purchasing.

At least two purchasers increase their holdings by more than 10%.

Retrocom Real Estate Investment Trust (TSX:RMM.UN), formerly Retrocom Mid Market Real Estate Investment Trust, is an open-ended real estate investment trust (REIT). Its portfolio of retail properties is geographically diversified across Canada.

[ Enlarge Image ]

Insider Buying During the Last 30 Days
Christopher Cann purchased 2,750 shares on Sept. 24 and currently controls 25,000 shares or less than 0.1% of the company. Christopher Cann serves as a director of the company. Christopher Cann increased his holdings by 12.4% in September.Patrick Lavelle purchased 5,000 shares on Sept. 20 and currently holds 83,270 shares or 0.1% of the company. Patrick Lavelle is chairman of the board. Patrick Lavelle increased his holdings by 6.4% in September.David Schiffer purchased 1,060 shares on Sept. 6 and currently holds 6,660 shares or less than 0.1% of the company. David Schiffer serves as a director of the company. David Schiffer increased his holdings by 18.9% in September.Insider Buying by Calendar Month

Here is a table of Retrocom REIT's insider-trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
September 20138,8100
August 201320,0000
July 201300
June 201300
May 201365,9000
April 201300
March 201300
February 201300
January 201300

There have been 94,710 shares purchased and there have been zero shares sold by insiders this year.

Financials

Retrocom REIT reported the second-quarter financial results on August 8 with the following highlights:

Revenue$22.8 million
Funds from operations$6.7 million
Cash$31.6 million
Debt$561.1 million
Competition

Retrocom REIT's competitors include Riocan REIT (TSX:REI.UN), Crombie REIT (TSX:CRR.UN), and Morguard REIT (TSX:MRT.UN).

Hot Biotech Stocks To Watch For 2014

Here is a table of these competitors' insider-trading activities during the last six months.

CompanyInsider buying / sharesInsider selling / shares
REI.UN17,107242,491
CRR.UN105,2722,200
MRT.UN185,0200

Only Retrocom REIT has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Retrocom REIT and there have not been any insiders selling Retrocom REIT during the last 30 days. Two of these three insiders increased their holdings by more than 10%.

Retrocom REIT has a book value of $5.40 per share and the stock has a dividend yield of 9.3%. I believe the stock could be a good pick below the book value of $5.40 per share based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Tuesday, November 19, 2013

2 Stocks on the Verge of Breakouts

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

>>5 Stocks Poised for Breakouts

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

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

>>5 Big Stocks to Trade for Big Gains

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

Ligand Pharmaceuticals

Ligand Pharmaceuticals (LGND) is a biotechnology company that operates with a business model focused on developing or acquiring assets. This stock closed up 7.4% at $52.54 in Friday's trading session.

Friday's Volume: 568,000

Three-Month Average Volume: 273,763

Volume % Change: 91%

>>5 Stocks With Big Insider Buying

From a technical perspective, LGND spiked sharply higher here right above its 50-day moving average $48.96 with above-average volume. This move is quickly pushing shares of LGND within range of triggering a big breakout trade. That trade will hit if LGND manages to take out some near-term overhead resistance at $55 and then once it clears its 52-week high at $58.48 with high volume.

Traders should now look for long-biased trades in LGND as long as it's trending above Friday's low of $49.43 and then once it sustains a move or close above those breakout levels with volume that's near or above 273,763 shares. If that breakout hits soon, then LGND will set up to enter new 52-week-high territory above $58.48, which is bullish technical price action. Some possible upside targets off that breakout are $63 to $65.

Acacia Research

Acacia Research (ACTG) acquires, develops, licenses and enforces patented technologies. This stock closed up 4.9% at $15.10 in Friday's trading session.

Friday's Volume: 1.22 million

Three-Month Average Volume: 642,120

Volume % Change: 110%

>>5 Stocks Under $10 Set to Soar

From a technical perspective, ACTG spiked higher here right off some near-term support at $14.08 with above-average volume. This stock recently gapped down sharply from $20.50 to $14.74 with heavy downside volume. Following that gap down, shares of ACTG went on to tag a new 52-week low of $14.08. Shares of ACTG have now started to rebound off that $14.08 low and it's quickly moving within range of triggering a major breakout trade. That trade will hit if ACTG manages to take out Friday's high of $15.65 to more near-term overhead resistance at $16.28 with high volume.

Traders should now look for long-biased trades in ACTG as long as it's trending above Friday's low of $14.33 or above $14.08 and then once it sustains a move or close above those breakout levels with volume that's near or above 642,120 shares. If that breakout hits soon, then ACTG will set up to re-fill some of its previous gap down zone from October that started near $20.50.

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

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>4 Stocks Under $10 to Trade for Breakouts



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>>Why You Should Buy Hedge Funds' 5 Favorite Stocks

Follow Stockpickr on Twitter and become a fan on Facebook.


Monday, November 18, 2013

HomeAway, Inc. (AWAY): Book It Now Before It Becomes Expensive

HomeAway, Inc. (NASDAQ: AWAY) shares could be among the best potential 2014 performers in the mid-cap Internet space as the company rolls out its pay-per-booking (PPB) model, fine- tunes its operations, and then ramps marketing its spend into 2015 to drive growth through the new model.

HomeAway operates the largest vacation rental marketplace globally, with websites in 11 languages servicing 145 countries. Users can search for and compare vacation rental properties on the company's websites for free. HomeAway charges property owners subscription fees to list spaces for vacation rental.

The company guided for core subscription listings growth in the fourth quarter. The PPB transaction value per booking, thus far, looks similar to the core vacation rental business (e.g., over $1,000 per booking).

[Related -Futures Mixed Amid Earnings, Data; Apple (AAPL) Drops]

"Early commentary around the rollout of PPB alongside the subscription model points to substantial lifts in conversion of traffic to listings, limited cannibalization and compelling listings quality," Deutsche Bank analyst Lloyd Walmsley said in a note to clients.

Meanwhile, the PPB listings backlog from property managers, which is set to go live in the next few weeks, suggests a rapid ramp to more than 35k by year-end. Management's commentary around the early PPB transition exceeded the market expectations even if the guidance for productivity of listings (1 turn per year) seems conservative.

[Related -Internet Investors: What To Watch For?]

"Despite strong early feedback, the transition to PPB remains early with potential transitional issues. The company guided conservatively for the PPB revenue contribution in 2014, as the initial placement of these listings will be at the bottom of search results," Walmsley said.

Despite these risks, the company has know-how from BedandBreakfast.com where the company has a hybrid subscription/PPB model.

Over time, PPB listings should get more exposure, vi! a initiatives such as re-distribution to online travel agencies (e.g. the Expedia deal) or through SEM (search engine marketing) spending, where the company can drive traffic to transactional listings on a profitable basis.

HomeAway has seen steady growth in the update of both online payments and online bookings across its two core sites, HomeAway.com and VRBO.com. HomeAway continues to show solid growth in users, page views and time spent across HomeAway Sites.

"We prefer to look at look at HomeAway on FCF multiples / yields, as this metric better matches the attractive cash collection cycle of the business," Walmsley said.

On the valuation front, AWAY trades at a blended average of 3.5 percent FCF yield and at 20 times 2015 EV/EBITDA given the high visibility subscription model.

However, HomeAway has yet to prove it can scale the surfacing of these listings in search results in such a way that drives bookings and revenues without reducing the value proposition of core subscription listings.

But, it will take time to drive traffic to these listings without interfering with the core, cash-cow subscription listings.

Nevertheless, the transition makes sense and could work. It might  not be a bad idea for investors to add positions before success becomes more evident.

Friday, November 15, 2013

4 Stocks Rising on Big Volume

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

>>5 Stocks With Big Insider Buying

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

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

>>5 Rocket Stocks to Buy This Week

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

Clearfield

Clearfield (CLFD) is a manufacturer of various standard and custom passive connectivity products to customers throughout the U.S. This stock closed up 5.8% at $17.56 in Wednesday's trading session.

Wednesday's Volume: 321,000

Three-Month Average Volume: 93,755

Volume % Change: 195%

>>5 Stocks Set to Soar on Bullish Earnings

From a technical perspective, CLFD ripped higher here and broke out above its former 52-week high at $17.12 with strong upside volume. This stock has been uptrending strong for the last three months, with shares moving higher from its low of $10.18 to its intraday high of $17.70. During that uptrend, shares of CLFD have been consistently making higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in CLFD as long as it's trending above Wednesday's low of $16.48 or above $15.50 and then once it sustains a move or close above its new 52-week high at $17.70 volume that this near or above 93,755 shares. If we get that move soon, then CLFD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $23 to $25.

Anacor Pharmaceuticals

Anacor Pharmaceuticals (ANAC) is engaged in the discovery, development and commercialization of novel small molecule therapeutics derived from its novel boron chemistry platform. This stock closed up 12.9% at $14.21 in Wednesday's trading session.

Wednesday's Volume: 668,000

Three-Month Average Volume: 396,517

Volume % Change: 145%

>>5 Stocks Poised for Breakouts

From a technical perspective, ANAC skyrocketed higher here right above its 50-day moving average of $11.63 and into breakout territory above some resistance at $13.32 with strong upside volume. This move is quickly pushing shares of ANAC within range of triggering another big breakout trade. That trade will ht if ANAC manages to take out Wednesday's high of $14.24 to its 52-week high at $14.39 with high volume.

Traders should now look for long-biased trades in ANAC as long as it's trending above $13 or $12 and then once it sustains a move or close above those breakout levels with volume that hits near or above 396,517 shares. If that breakout hits soon, then ANAC will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $18 to $20.

Health Management Associates

Health Management Associates (HMA) provides health care services to patients in owned and leased facilities located mainly in non-urban communities in the Southeastern and Southwestern U.S. This stock closed up 5.6% at $13.24 in Wednesday's trading session.

Wednesday's Volume: 30.33 million

Three-Month Average Volume: 3.81 million

Volume % Change: 376%

From a technical perspective, HMA gapped higher here back above both its 50-day and 200-day moving averages with monster upside volume. This move is quickly pushing shares of HMA within range of triggering a major breakout trade. That trade will hit if HMA manages to take out Wednesday's high of $13.35 to its gap down day high from late July at $13.66 with high volume.

Traders should now look for long-biased trades in HMA as long as it's trending above Wednesday's low at $13.09 or above its 200-day at $12.79 and then once it sustains a move or close above those breakout levels with volume that's near or above 3.81 million shares. If that breakout hits soon, then HMA will set up to re-fill some of its previous gap down zone from July that started near $17.

Red Hat

Red Hat (RHT) is a provider of open source software solutions, using a community-powered approach to develop and offer reliable and high-performing operating system, middleware, virtualization, storage and cloud technologies. This stock closed up 3.9% at $46.37 in Wednesday's trading session.

Wednesday's Volume: 5.46 million

Three-Month Average Volume: 1.85 million

Volume % Change: 225%

From a technical perspective, RHT gapped higher here back above its 50-day moving average of $46.31 with above-average volume. This move is quickly pushing shares of RHT within range of triggering a big breakout trade. That trade will hit if RHT manages to take out Wednesday's high of $46.58 to its gap down day high from September at $48, and then once it clears its 200-day moving average of $49.30 with high volume.

Traders should now look for long-biased trades in RHT as long as it's trending above Wednesday's low of $45.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.85 million shares. If that breakout hits soon, then RHT will set up to re-fill some of its previous gap down zone from September that started near $54.

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

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>4 Stocks Under $10 Moving Higher



>>5 Tech Stocks to Trade in November



>>2 Biotech Stocks Under $10 Triggering Breakouts

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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


Wednesday, November 13, 2013

Deere: 175 Years and Running

5 Best Bank Stocks To Buy Right Now

This company was founded in 1837 and it continues to stick by their commitment to integrity, quality, and commitment to change, to meet the needs of the global economy, explains Russ Kaplan, editor of Heartland Advisor.

John Deere Company (DE) was founded by a blacksmith and inventor by the same name. This was around the time the wooden plow was being replaced by Deere's stainless steel plow, which could allow farmers to cut better rows for their crops.

There have been many innovations since then, from combines, to planters, to lawn mowers, and much more; and Deere has always kept up with, or developed and implemented these many changes.

They have grown to the point where they have dealers throughout the world, spanning Africa, Asia, Middle East, Australia/New Zealand, Europe, Central /South America, and North America.

Over the past 175+ years, Deere has branched out into such areas as farm equipment, lawn and grounds-keeping equipment, forestry equipment, and even toys.

We first recommended investing in Deere back in 1998, when it was trading in the mid $30 range.

Although Deere is now trading in the low $80 range, it still fits our value criteria of continuing to be a financially solid stock, which offers a good opportunity to purchase it, or to buy more of the stock if you already have some.

The stock price is down due to a weak world economy, but I don't see this condition continuing indefinitely. Even in this economic climate, Deere had a 2012 return on equity of 45%.

Plus there will always be the need to plant food and keep the environment safe enough to support all growing plant life.

The dividend at about 2.5% will be a nice supplement to your income while you wait for the stock price to turn around.

Subscribe to Heartland Advisor here…

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Tuesday, November 12, 2013

Patent trolls demand ‘infringement’ fees

Jerry Tarrant, co-founder and chief operating officer of MyWebGrocer in Winooski, Vt., says he has spent more than $100,000 in attorney's fees fending off letters from companies claiming MyWebGrocer was infringing on their patents. "That doesn't include the time we've had to spend in-house trying to understand what their claim is," Tarrant said.

The letters have come from what's known as patent trolls — more formally designated in a White House report as "patent assertion entities."

These entities scour the legal landscape for vaguely worded, broadly defined patents, often buying them from bankrupt companies or small inventors. They set up shell companies whose only asset is a single patent. Then the letter-writing begins.

MyWebGrocer provides websites and online marketing services for major grocery chains, including Kroger, ShopRite and Albertsons, employing around 200 people at its Winooski headquarters.

The letters, often densely worded documents full of legalese, boil down to a simple demand: You are infringing on our patent. We will give you a license for a certain fee. If you don't pay, we'll sue you — implying that it will cost a lot more to defend that lawsuit than the troll is demanding.

Until recently, patent trolls have operated mostly under the radar. But the level they've reached has drawn the attention of Congress, the White House, the Federal Trade Commission and the U.S. Supreme Court. The court agreed to take two cases that could make it easier for troll victims to recover legal fees. Congress is considering seven bills on the issue.

Vermont leads the nation in taking on patent trolls, passing the first law intended to put some legal obstacles in their way by giving targeted businesses the right to counter-sue.

Vermont Attorney General Bill Sorrell also filed the first lawsuit in the nation against an alleged troll that attempted to shake down small- and medium-size businesses across the state, Sorrell says. MPHJ Technology Inves! tments sent out at least 75 letters to businesses and non-profits in Vermont, claiming they were infringing its patent every time they scanned a document and attached it to an e-mail, among other claims, Sorrell said. "We've delivered a big message to patent trolls: If you come into Vermont, you'll have a fight on your hands," Sorrell said.

Bryan Farney of the Farney Daniels law firm, which is representing MPHJ, said in an e-mail: "Non-practicing entities, sometimes pejoratively referred to as 'trolls,' serve a valuable role in the nation's innovation economy. ... Individuals and companies of all sizes buy and sell patents to get a proper return on their research and development activities. The use of a letter to a business that may be infringing on a patent, prior to seeking a license agreement or bringing suit, is sometimes misconstrued or misunderstood. However, this practice is usually required by the federal courts to comply with patent law, and sometimes provides evidence that no infringement exists."

Michael Beckerman, president and chief executive officer of The Internet Association, a coalition of companies that includes Facebook, Google and Amazon.com — all targets of trolls — says trolls adjust the amount they demand for a license to the size of the business they are approaching. "I call it extortion," Beckerman said. "The amount is less than what it would cost to defend themselves in court. They can do the math."

The cost of defending a patent suit through trial is easily more than $1 million, attorney Peter Kunin of Downs Rachlin Martin in Burlington, Vt., said.

A report released in June by the White House asserts that suits brought by patent trolls have tripled in the last two years, rising from 29% of all infringement suits to 62%.

James Bessen, an economist and lecturer at the Boston University School of Law, put the cost of patent trolls to the U.S. economy in 2011 at $29 billion. The number has been criticized as being inflated, but Bessen says it'! s based o! n a survey of companies that have had to fight off trolls. "Right now, patent trolls are squelching innovation," Bessen said. "The more R&D you perform, the more likely you are to be sued. A company like Apple, they're clobbered." Bessen said Apple had 44 lawsuits filed against it by patent trolls last year.

In Congress, House Judiciary Committee Chairman Bob Good-latte, R-Va., was first out of the gate with legislation aimed at trolls with the Innovation Act. Key provisions include heightened pleading standards and provisions for transparency.

Sen. Patrick Leahy, D-Vt., is working on Senate legislation, and is cautiously optimistic that a fractious Congress will be able to come together on the patent troll issue, despite the recent government shutdown.

"I want innovation; I want people who invent something to be able to gain legitimate benefit from the invention," Leahy said, "but I don't believe in somebody who's bought a bunch of paper sitting in an office and using it for blackmail."

Dan D'Ambrosio also reports for the Burlington (Vt.) Free Press.

Monday, November 11, 2013

Soros Review: Four Highest-Yield Stocks

The third quarter update of the Soros Fund Management portfolio, led by legendary Guru George Soros, lists 203 stocks, 59 of them new, with a total value of $9.22 billion, and a quarter-by-quarter turnover of 19%. George Soros is averaging a 12-month return of 26.3%.

Here's a review of the four highest-yield stocks in the Soros portfolio:

Penn Virginia Corporation (PVA)

Yield: 16.40%

Up 99% over 12 months, Penn Virginia Corporation, an independent oil and gas E&P company, has a market cap of $600.69 million; its shares were traded at around $9.20. Shares trade with a P/B of 0.67.

Guru Action: As of the second quarter of 2013, George Soros holds 1,878,242 shares valued at around $8.82 million.

PVA is a new buy for Soros who last sold out in the first quarter of 2010, selling 9,700 shares at an average price of $24.89, for a loss of 63%.

In the second quarter of 2013, Soros made a gain of 108.6% on his new buy of 1,878,242 shares at an average price of $4.41.

Over his trading history, he has averaged a gain of 109% on 1,878,242 shares bought at an average price of $4.41

Track historical pricing, revenue and net income:

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Macquarie Infrastructure Company LLC (MIC)

Yield: 5.33%

Up 26% over 12 months, Macquarie Infrastructure Company LLC, an industrial distribution company, has a market cap of $2.95 billion; its shares were traded at around $55.13. Shares trade with a P/E of 641.00.

Guru Action: As of the second quarter of 2013, George Soros holds 25,000 shares valued at around $1.33 million.

In the second quarter, he reduced his position by 13.76%, selling 3,989 shares at an average price of $54.9, for a gain of 0.4%.

In six quarters he has bought 28,989 shares at an average price of $49.71, for a gain of 11%. He gained 0% selling 3,989 shares at an average price of $54.9.

Track historical pricing, revenue! and net income:

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STMicroelectronics NV (STM)

Yield: 4.67%

Up 28% over 12 months, STMicroelectronics NV, a semiconductor company, has a market cap of $6.77 billion; its shares were traded at around $7.60. Shares trade with a P/B of 1.20.

Guru Action: As of the second quarter of 2013, George Soros holds 1,766,666 shares valued at around $15.88 million.

STM is a new holding for Soros. He bought 1,766,666 shares in the second quarter of 2013 at an average price of $8.79, for a loss of 13.5%.

Track historical pricing, revenue and net income:

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ClickSoftware Technologies Ltd. (CKSW)

Yield: 4.00%

Down 2% over 12 months, the software company ClickSoftware Technologies Ltd. has a market cap of $229.5 million; its shares were traded at around $7.24. Shares trade with a P/B of 4.53.

Guru Action: As of the second quarter of 2013, George Soros holds 3,130,000 shares valued at around $26.10 million, and comprising 0.28% of his portfolio.

Holding for 12 quarters, 10 of them losing, Soros took a loss of 4.7% in the second quarter of 2013 on 3,130,000 shares at an average price of $7.60.

Soros averaged a loss of 14% on 3,857,208 shares bought at an average price of $8.37 per share. He also averaged a loss of 23% on 727,208 shares sold at an average price of $9.41 per share.

Track historical pricing, revenue and net income:

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Born in Budapest in 1930, George Soros, chairman of Soros Fund Management LLC, has been an avid and prominent supporter of democratic ideals for more than 30 years. His philanthropic organization, the Open Society Foundations, supports democracy and human rights in over 70 countries.

Here is the complete portfolio of Geor! ge Soros.!

A graphic summary of George Soros's top buys, sells and holdings:

Be sure to read:

1. George Soros's Undervalued Stocks
2. George Soros's Top Growth Companies
3. George Soros's High Yield stocks
4. Stocks that George Soros keeps buying

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