Wednesday, August 28, 2013

URS Awarded U.S. Navy Contract - Analyst Blog

Engineering, construction and technical services provider URS Corporation (URS) recently announced that it has received an indefinite-delivery/indefinite-quantity (ID/IQ) contract from the Naval Facilities Engineering Command, Atlantic, to accomplish global contingency construction projects worldwide. URS Corporation is one of the four awardees in this ID/IQ contract worth about $800 million.

The contract has a span of five years, comprising one base year with four one-year option periods. As per the terms of the contract, URS Corporation will either need to bid or will be awarded task orders by the U.S. Navy on behalf of the Department of defense and other federal agencies.

The task orders under the contract will include providing construction and engineering services related to natural disasters, humanitarian assistance, conflict, or other projects with similar features. Apart from major construction works, URS Corporation is also expected to occasionally provide base operating support services under specific task orders.

We believe that URS Corporation has the relevant skill and expertise to render the services required for Navy's contingency construction contracts. URS Corporation has a rich experience in providing support to military on major engineering and construction projects. Recently, it had also received an ID/IQ multiple award contract from the U.S. Army Engineering and Support Center, Huntsville, Alabama to provide design-build services for the Medical Repair and Renewal Program in the continental U.S. and abroad.

URS Corporation currently has a Zacks Rank #3 (Hold). Better stocks within the industry that warrant a look includes Michael Baker Corporation (BKR), Foster Wheeler AG (FWLT) and Pernix Group Inc. (PRXG). All three stocks carry a Zacks Rank #2 (Buy).

Tuesday, August 27, 2013

Hot Biotech Companies To Invest In Right Now

Major market indexes set record highs again this week, but not everyone joined in the celebration. Here are three party-poopers for the week from the world of health care.

Hard to say goodbye
Synta Pharmaceuticals (NASDAQ: SNTA  ) found out how hard it can be to say goodbye. The company's head of research and development left abruptly this week. Shares of the biotech sank 18% on the news.

The other negative for Synta came from the analyst community. BMO Capital downgraded the stock from outperform to market perform. However, this action stemmed from the departure of Synta's R&D president, Sumant Ramachandra.

Ramachandra left suddenly after less than two months heading up Synta's R&D group. The company stated that he resigned "for personal reasons." A BMO analyst suggested that the surprise departure hinted at a "less than amicable separation," although no further details were provided by Synta.

Hot Biotech Companies To Invest In Right Now: Telik Inc (TELK)

Telik, Inc. (Telik), incorporated in 1988, is a clinical-stage drug development company focused on discovering and developing small molecule drugs to treat cancer. The Company discovers its product candidates using the Company�� drug discovery technology, Target-Related Affinity Profiling (TRAP). TELINTRA, its principal drug product candidate in clinical development, is a small molecule glutathione analog inhibitor of the enzyme glutathione S-transferase P1-1 (GST P1-1). TELCYTA, its other product candidate, is a small molecule cancer drug product candidate designed to be activated in cancer cells.

Clinical Product Development

TELINTRA is the Company�� lead small molecule product candidate in clinical development for the treatment of blood disorders, including cancer. It has a mechanism of action and acts by inhibiting GST P1-1, an enzyme that is involved in the control of cellular growth and differentiation. Inhibition of GST P1-1 results in the activation of the signaling molecule Jun kinase, a regulator of the function of blood precursor cells. Preclinical tests show that TELINTRA is capable of causing the death or apoptosis of leukemic or malignant blood cells, while stimulating the growth and development of normal blood precursor cells. TELINTRA has been studied in Myelodysplastic Syndrome (MDS) using two formulations. A liposomal formulation was developed for intravenous administration of TELINTRA and was used in Phase I and Phase II studies in MDS patients. The results from the Phase II intravenous liposomal TELINTRA clinical trials demonstrated that TELINTRA treatment was associated with improvement in all three types of blood cell levels in patients with all types of MDS, including those in intermediate and high-risk groups. An oral dosage formulation (tablet) was subsequently developed and results from a Phase I study with TELINTRA tablets showed clinical activity and the formulation to be well tolerated. In June 2011, the Company initiated a Phase II clinical ! trial to evaluate TELINTRA tablets. In October 2011, the Company initiated an additional Phase IIb clinical trial to evaluate TELINTRA tablets. '

The activity and safety profile of tablet formulation allowed the Company to complete a Phase II trial of TELINTRA tablets in MDS. The primary objective of the Phase II TELINTRA tablet study was to determine the efficacy of TELINTRA. A multivariate logistic regression analysis was conducted to identify MDS disease prognostic factors associated with erythroid improvement response rates, including prior MDS treatment, age, gender, the international prognostic scoring system (IPSS), risk, Eastern Cooperative Group performance status, years from MDS diagnosis, MDS World Health Organization subtypes, anemia only versus anemia plus other cytopenias, dose schedule and starting dose. Results from this study show that TELINTRA is the first GSTP1-1 enzyme inhibitor shown to cause clinically reductions in red blood cell transfusions, including transfusion independence in low to intermediate-1 risk MDS patients, as well as improvement in platelet count and white blood cell levels in certain patients. TELINTRA, administered orally twice daily, appeared to be convenient and flexible for chronic treatment administration.

TELCYTA is a small molecule drug product candidate that the Company is developed for the treatment of cancer. TELCYTA binds to GST. TELCYTA has been evaluated in multiple Phase II and Phase III clinical trials, including trials using TELCYTA as monotherapy and in combination regimens in ovarian, non-small cell lung, breast and colorectal cancer. Results from these clinical trials indicate that TELCYTA monotherapy was generally well-tolerated, with mostly mild to moderate side effects, particularly when compared to the side effects and toxicities of standard chemotherapeutic drugs. When TELCYTA was evaluated in combination with standard chemotherapeutic drugs, the tolerability of the combinations was similar to that expected of each! drug alo! ne.

Clinical activity including objective tumor responses and/or disease stabilization was reported in the TELCYTA Phase II trials; however, TELCYTA did not meet its primary endpoints in the Phase III studies. Positive results from a Phase I-IIa multicenter, dose-ranging study of TELCYTA in combination with carboplatin and paclitaxel as first-line therapy for patients with non-small cell lung cancer, or NSCLC, were published in a peer reviewed publication. Clinical data demonstrated positive results of TELCYTA in combination with carboplatin and paclitaxel in the treatment of first-line lung cancer followed by TELCYTA maintenance therapy. As of December 31, 2011, the Company had an on-going investigator-led study at a single site of TELCYTA in patients with refractory or relapsed mantle cell lymphoma, diffuse B cell lymphoma, and multiple myeloma.

Preclinical Drug Product Development

The Company has a small molecule compound, TLK60404, in preclinical development that inhibits both Aurora kinase and VEGFR kinase. Aurora kinase is a signaling enzyme whose function is required for cancer cell division, while VEGF plays a key role in tumor blood vessel formation, ensuring an adequate supply of nutrients to support tumor growth. These lead compounds prevented tumor growth in preclinical models of human colon cancer and human leukemia by inhibiting both Aurora kinase and VEGFR kinase. A development drug product candidate, TLK60404, has been selected.

The Company, using its TRAP technology has discovered TLK60357, a novel, potent small molecule inhibitor of cell division. TLK60357 inhibits the formation of microtubules that are necessary for cancer cell growth leading to persistent G2/M cancer cell cycle block and subsequent cell death. This compound demonstrates potent broad-spectrum anticancer activity against a number of human cancer cells. This compound also displays oral efficacy in multiple, standard preclinical models of cancer. TLK60596, a potent VG! FR kinase! inhibitor, blocks the formation of new blood vessels in tumors. Oral administration of TLK60596 to animal models of human colon cancer reduced tumor growth.

Hot Biotech Companies To Invest In Right Now: StemCells Inc (STEM.W)

StemCells, Inc. (StemCells), incorporated in August 1988, is engaged in the research, development, and commercialization of stem cell therapeutics and related tools and technologies for academia and industry. The Company is focused on developing and commercializing stem and progenitor cells as the basis for therapeutics and therapies, and cells and related tools and technologies to enable stem cell-based research and drug discovery and development. The Company�� primary research and development efforts are focused on identifying and developing stem and progenitor cells as potential therapeutic agents. The Company has two therapeutic product development programs, including its CNS Program, which is developing applications for HuCNS-SC cells, its human neural stem cell product candidate, and its Liver Program, which is characterizing the Company�� human liver cells as a therapeutic product.

CNS Program

The Company in its CNS Program, is in clinical development with its HuCNS-SC cells for a range of disorders of the central nervous system. The CNS includes the brain, spinal cord and eye. In February 2012, the Company had completed a Phase I clinical trial in Pelizeaus-Merzbacher Disease (PMD), a fatal myelination disorder in the brain.

The Company�� CNS Program is focused on developing clinical applications, in which transplanting HuCNS-SC cells protect or restore organ function of the patient before such function is irreversibly damaged or lost due to disease progression. The Company�� initial target indications are PMD, and more generally, diseases in which deficient myelination plays a central role, such as cerebral palsy or multiple sclerosis; spinal cord injury, disorders in which retinal degeneration plays a central role, such as age-related macular degeneration or retinitis pigmentosa. The Company�� product candidate, HuCNS-SC cells, is a purified and expanded composition of normal hum an neural stem cells. Its HuCNS-SC cells can be directly tr! a! nsplanted.

Liver Program

Liver stem or progenitor cells offer an alternative treatment for liver diseases. A liver cellular therapy or cell-based therapeutic provide or support liver function in patients with liver disease. The Company held a portfolio of issued and allowed patents in the liver field, which cover the isolation and use of both hLEC cells and the isolated subset, as well as the composition of the cells themselves.

The Company�� range of cell culture products, which are sold under the SC Proven brand, includes iSTEM, GS1-R, GS2-M, RHB-A, RHB-Basal, NDiff N2, and NDiff N2B27. Its iSTEM is a serum-free, feeder-free medium that maintains mouse embryonic stem cells in their pluripotent ground state by using selective small molecule inhibitors to block the pathways, which induce differentiation. RHB-A is a defined, serum-free culture medium for the selective culture of human and mouse neural stem cells and their maintenanc e and expansion as adherent cell populations. RHB-Basal is a defined, serum-free basal medium. When supplemented with specific growth factors, this media is formulated for the propagation and differentiation of adherent neural stem cells. RHB-Basal can also be tailored to specific-cell type requirements by the addition of customer preferred supplements.

The Company�� NDiff N2 is a defined serum-free scell culture supplement for the derivation, maintenance, expansion and/or differentiation of human and mouse embryonic stem (ES) cells and tissue-derived neural stem cells supplement. Its NDiff N2-AF is a serum-free and animal component-free version of NDiff N2. Its NDiff N2B27 is a defined, serum-free medium for the differentiation of mouse embryonic stem cells to neural cell types. NDiff N27-AF is a serum-free and animal component-free version of NDiff N27. Its GS1-R is a serum-free media formulation shown to enable the derivation and long-term maintenance of tr ue, germline competent rat embryonic stem cells without! the ! ad! dition ! of cytokines or growth factors. Its GS2-M is a defined, serum- and feeder-free medium for the derivation and long-term maintenance of true, germline competent mouse iPS cells.

The Company also markets a number of antibody reagents for use in cell detection, isolation and characterization. These reagents are also under the SC Proven brand and it includes STEM24, STEM101, STEM121 and STEM123. Its STEM24 is a human antibody that recognizes human CD24, also known as heat stable antigen (HSA), a glycoprotein expressed on the surface of many human cell types, including immature human hematopoietic cells, peripheral blood lymphocytes, erythrocytes and many human carcinomas. Its CD24 is also a marker of human neural differentiation. Its STEM101 is a human-specific mouse antibody that recognizes the Ku80 protein found in human nuclei. Its STEM121 is a human-specific mouse antibody that recognizes a cytoplasmic protein of human cells. Its STEM123 is a human-specific mouse antibody that recognizes human glial fibrillary acidic protein (GFAP).

The Company�� Other products marketed under SC Proven include total cell genomic DNA (gDNA), RNA and protein lysate reagents purified from homogenous stem cell populations for intra-comparative studies, such as Epigenetic fingerprinting, Southern, Western and Northern blots, PCR, RT-PCR and microarrays. This range of purified stem cell line lysates includes mouse embryonic stem (ES) cells propagated in SC Proven 2i inhibitor-based GS2-M media and mouse ES cell-derived and fetal tissue-derived neural stem (NS) cells propagated in SC Proven RHB-A media.

Top Penny Stocks To Buy For 2014: Navidea Biopharmaceuticals Inc (NAVB.A)

Navidea Biopharmaceuticals, Inc. (Navidea), formerly Neoprobe Corporation, incorporated in 1983, is a biopharmaceutical company focused on the development and commercialization of precision diagnostic agents. As of December 31, 2011, the Company�� radiopharmaceutical development programs included Lymphoseek (Lymphoseek, Kit for the Preparation of Technetium Tc99m for Injection), a radiopharmaceutical agent for lymph node mapping; AZD4694, an imaging agent, and RIGScan, a tumor antigen-specific targeting agent. In January 2012, the Company executed an option agreement with Alseres Pharmaceuticals, Inc. (Alseres) to license [123I]-E-IACFT Injection, also called Altropane, an Iodine-123 radiolabeled imaging agent, being developed as an aid in the diagnosis of Parkinson�� disease, movement disorders and dementia. In August 2011, the Company sold its gamma detection device line of business (the GDS Business) to Devicor Medical Products, Inc.

Lymphoseek

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Navidea�� pipeline includes clinical-stage radiopharmaceutical agents used to identify the presence and status of disease. Lymphoseek (Kit for the Preparation of Technetium Tc99m for Injection) is a lymph node targeting agent intended for use in intraoperative lymphatic mapping (ILM) procedures and lymphoscintigraphy employed in the overall diagnostic assessment of certain solid tumor cancers. The lymph system is a component of the body�� immune system. The key components of the lymph system are lymph nodes-small anatomic structures that contain disease-fighting lymphocytes, filter lymph of bacteria and cancer cells, and signal infection in response to heightened levels of pathogens. In Navidea�� Phase III clinical studies of Lymphoseek, it detected over 99% of positive nodes identified by vital blue dye (VBD). As of December 31, 2011, Navidea, in co-operation with UC, San Diego affiliate (UCSD), completed or initiated five Phase I clinical trials, one multi-c enter Phase II trial and three multi-center Phase II trial! s ! involving Lymphoseek. Two Phase III studies were completed in subjects with breast cancer and melanoma. During the year ended December 31, 2011, data from NEO3-09 were released, which indicated that all primary and secondary endpoints for the study were met. As of December 31, 2011, third Phase III clinical trial for Lymphoseek in subjects with head and neck squamous cell carcinoma (NEO3-06) was in progress.

AZD4694

AZD4694 is a Fluorine-18 labeled precision radiopharmaceutical candidate for use in the imaging and evaluation of patients with signs or symptoms of cognitive impairment such as Alzheimer's disease (AD). It binds to beta-amyloid deposits in the brain that can then be imaged in positron emission tomography (PET) scans. Amyloid plaque pathology is a required feature of AD and the presence of amyloid pathology is a supportive feature for diagnosis of probable AD. Patients who are negative for amyloid pathology do not have AD. AZD4694 has b een studied in several clinical trials. Clinical studies through Phase IIa have included more than 80 patients to date, both suspected AD patients and healthy volunteers. No significant adverse events have been observed. Results suggest that AZD4694 has the ability to image patients quickly and safely with high sensitivity.

RadioImmunoGuided Surgery

As of December 31, 2011, RIGScan had been studied in a number of clinical trials, including Phase III studies. Navidea has conducted two Phase III studies, NEO2-13 and NEO2-14, of RIGScan in patients with primary and metastatic colorectal cancer, respectively. Both studies were multi-institutional involving cancer treatment institutions in the United States, Israel, and the European Union.

The Company competes with Pharmalucence, Eli Lilly, Bayer Schering, General Electric and GE Healthcare.

Hot Biotech Companies To Invest In Right Now: Johnson & Johnson(JNJ)

Johnson & Johnson engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The Consumer segment provides products used in baby care, skin care, oral care, wound care, and women?s health care fields, as well as nutritional, over-the-counter pharmaceutical products, and wellness and prevention platforms under the brands of JOHNSON?S, AVEENO, CLEAN & CLEAR, JOHNSON?S Adult, NEUTROGENA, RoC, LUBRIDERM, DABAO, LISTERINE, REACH, BAND-AID, CAREFREE, STAYFREE, SPLENDA, TYLENOL, SUDAFED, ZYRTEC, MOTRIN IB, and PEPCID AC. The Pharmaceutical segment offers products in various therapeutic areas, such as anti-infective, antipsychotic, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, and virology. Its principal products include REMICADE for the treatment of immune me diated inflammatory diseases; STELARA for the treatment of moderate to severe plaque psoriasis; SIMPONI, a treatment for adults with moderate to severe rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis; VELCADE for the treatment of multiple myeloma; PREZISTA and INTELENCE for treating HIV/AIDS patients; NUCYNTA for moderate to severe acute pain; INVEGA SUSTENNAtm for the acute and maintenance treatment of schizophrenia in adults; RISPERDAL CONSTA for the management of bipolar I disorder and schizophrenia; and PROCRIT to stimulate red blood cell production. The Medical Devices and Diagnostics segment primarily offers circulatory disease management products; orthopaedic joint reconstruction, spinal care, and sports medicine products; surgical care, aesthetics, and women?s health products; blood glucose monitoring and insulin delivery products; professional diagnostic products; and disposable contact lenses. The company was founded in 1886 and is based in Ne w Brunswick, New Jersey.

Advisors' Opinion:
  • [By Sy_Harding]

    Johnson & Johnson (JNJ) engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company has raised distributions for 49 years in a row. The 10 year annual dividend growth rate is 13%/year. The last dividend increase was 5.60% to 57 cents/share. Analysts are expecting that Johnson & Johnson will earn $5.24/share in 2012. I expect that the quarterly dividend will exceed 61 cents/share in 2012. Yield: 3.50%

  • [By Michael Brush]

    Johnson & Johnson has a dividend yield of 3.4%.

    The world's largest health care company provides investors with exposure (similar to that of a mutual fund) to the health care sector. The company has three main divisions: pharmaceuticals, medical devices and consumer products.

    Johnson & Johnson has had its share of quality control issues, but that's no reason to avoid this stock. The company's strong research pipeline, broad product lines and abundant cash flow mean it will continue to grow -- and keep increasing dividends.

  • [By Jon C. Ogg]

    Johnson & Johnson (NYSE: JNJ) is at least expected to gain 7.2% in 2013 to rise to $75.14. With a 3.4% dividend, this is one of the smallest expected gainers for the year. This might not be such a big surprise, but it is interesting that Johnson & Johnson was so close to its 52-week high at the end of 2012. With so many former quality control issues, and with this market cap already up at $196 billion, it is a real question as to what could be the next driver. Johnson & Johnson has accumulated so many medical units that perhaps its next way to generate value is to identify ways of divesting assets.

  • [By Dan Moskowitz]

    As far as Johnson & Johnson goes, even if the market crashed, it would only be a matter of time before it clawed its way back. It�� always better to invest in strong companies than it is to time the market. And when it comes to investing in strong companies, not many have better fundamentals and management, or such a strong history of rewarding shareholders, than Johnson & Johnson.

Hot Biotech Companies To Invest In Right Now: Cell Therapeutics Inc (CTIC.A)

Cell Therapeutics, Inc. (CTI), incorporated in 1991, develops, acquires and commercializes treatments for cancer. The Company�� research, development, acquisition and in-licensing activities concentrate on identifying and developing new ways to treat cancer. As of December 31, 2011, CTI focused its efforts on Pixuvri (pixantrone dimaleate) (Pixuvri), OPAXIO (paclitaxel poliglumex) (OPAXIO), tosedostat, brostallicin and bisplatinates. As of December 31, 2011, it developed Pixuvri, an anthracycline derivative for the treatment of hematologic malignancies and solid tumors. Another late-stage drug candidate of the Company, OPAXIO, is being studied as a potential maintenance therapy for women with advanced stage ovarian cancer, who achieve a complete remission following first-line therapy with paclitaxel and carboplatin. As of December 31, 2011, it also developed tosedostat in collaboration with Chroma Therapeutics, Ltd. (Chroma). On May 31, 2012, CTI completed its acquisi tion gaining worldwide rights to S*BIO Pte Ltd.'s (S*BIO) pacritinib.

Pixuvri

As of December 31, 2011, the Company developed Pixuvri, an aza-anthracenedione derivative, for the treatment of non-Hodgkin�� lymphoma (NHL), and various other hematologic malignancies, and solid tumors. Pixuvri was studied in the Company�� EXTEND, or PIX301, clinical trial, which was a phase III single-agent trial of Pixuvri for patients with relapsed, refractory aggressive NHL who received two or more prior therapies and who were sensitive to treatment with anthracyclines. On September 28, 2011, CTI announced that a second independent radiology assessment of response and progression endpoint data from its PIX301 clinical trial of Pixuvri was achieved with statistical significance. The results of the EXTEND trial met its primary endpoint and showed that patients randomized to treatment with Pixuvri achieved a significantly higher rate of confirmed and unconfirmed co mplete response compared to patients treated with standard! c! hemotherapy had a significantly increased overall response rate and experienced a statistically significant improvement in median progression free survival. Pixuvri had predictable and manageable toxicities when administered at the proposed dose and schedule in the EXTEND clinical trial in heavily pre-treated patients. In March 2011, the Company initiated the PIX-R trial to study Pixuvri in combination with rituximab in patients with relapsed/refractory diffuse large B-cell lymphoma (DLBCL). Pixuvri has also been studied in patients with HER2-negative metastatic breast cancer who have tumor progression after at least two, but not more than three, prior chemotherapy regimens. In the second quarter of 2010, the NCCTG opened this phase II study for enrollment. The study is closed to accrual and results are expected to be reported by the NCCTG later in 2012.

OPAXIO

OPAXIO is the Company�� biologically-enhanced chemotherapeutic agent that links pacli taxel to a biodegradable polyglutamate polymer, resulting in a new chemical entity. As of December 31, 2011, the Company focused its development of OPAXIO on ovarian, brain, esophageal, head and neck cancer. OPAXIO was designed to improve the delivery of paclitaxel to tumor tissue while protecting normal tissue from toxic side effects. In November 2010, results were presented by the Brown University Oncology Group from a phase II trial of OPAXIO combined with temozolomide (TMZ), and radiotherapy in patients with newly-diagnosed, high-grade gliomas, a type of brain cancer. The trial demonstrated a high rate of complete and partial responses and a high rate of six month progression free survival (PFS). Based on these results, the Brown University Oncology Group has initiated a randomized, multicenter, phase II study of OPAXIO and standard radiotherapy versus TMZ and radiotherapy for newly diagnosed patients with glioblastoma with an active gene termed MGMT that reduces respons iveness to TMZ. A phase I/II study of OPAXIO combined ! with r! a! diothera! py and cisplatin was initiated by SUNY Upstate Medical University, in patients with locally advanced head and neck cancer.

Tosedostat

In March 2011, the Company entered into a co-development and license agreement with Chroma Therapeutics, Ltd. (Chroma), providing the Company with marketing and co-development rights to Chroma�� drug candidate, tosedostat, in North, Central and South America. Tosedostat is an oral, aminopeptidase inhibitor that has demonstrated anti-tumor responses in blood related cancers and solid tumors in phase I-II clinical trials. Interim results from the phase II OPAL study of tosedostat in elderly patients with relapsed or refractory acute myeloid leukemia (AML) showed that once-daily, oral doses of tosedostat had predictable and manageable toxicities and results demonstrated response rates, including a high-response rate among patients who received prior hypomethylating agents, which are used to treat myelodysplastic synd rome (MDS), a precursor of AML.

Brostallicin

As of December 31, 2011, the Company developed brostallicin through its wholly owned subsidiary, Systems Medicine LLC, which holds rights to use, develop, import and export brostallicin. Brostallicin is a synthetic deoxyribonucleic acid (DNA) minor groove binding agent that has demonstrated anti-tumor activity and a favorable safety profile in clinical trials, in which more than 230 patients have been treated as of December 31, 2011. The Company uses a genomic-based platform to guide the development of brostallicin. A phase II study of brostallicin in relapsed, refractory soft tissue sarcoma met its predefined activity and safety hurdles and resulted in a first-line phase II clinical trial study that was conducted by the European Organization for Research and Treatment of Cancer (EORTC).

The Company competes with Bristol-Myers Squibb Company, Sanofi-Aventis, Pfizer, Roche Group, Genentech, Inc., Astellas Pharma, Eli Lilly and Company, Cel! gene, Tel! ik! , Inc., T! EVA Pharmaceuticals Industries Ltd. and PharmaMar.

Sunday, August 25, 2013

Top 5 Low Price Stocks To Watch Right Now

When Google (NASDAQ: GOOG  ) announced its new Chromecast device yesterday, tech sites exploded with initial reviews. Wired even called it "Google's Miracle Device." I wouldn't go that far just yet, but there are two reasons why the small stick could disrupt its streaming competitors.

Priced to sell
The first and probably the most obvious selling point for the Chromecast is its ridiculously low price: $35. That's significantly lower than Apple TV and even $15 less than Roku's cheapest streaming box. Google chose the perfect price point for launching such a device, considering its Google TV has never taken off and Apple TVs and Rokus already dominate the market.

Source: Google.

Top 5 Low Price Stocks To Watch Right Now: Itau Unibanco Holding SA (ITUB)

Itau Unibanco Holding S.A., incorporated on September 9, 1943, is a bank in Brazil. The Company has four operational segments: Commercial Banking, Itau BBA, Consumer Credit and Corporate and Treasury. Commercial banking, including insurance, pension plan and capitalization products, credit cards, asset management and a variety of credit products and services for individuals, small and middle-market companies). Itau BBA includes corporate and investment banking. Consumer credit includes financial products and services to its non-accountholders. Corporate and treasury includes the results related to the trading activities in its portfolio, trading related to managing currency, interest rate and other market risk factors, gap management and arbitrage opportunities in domestic and foreign markets. It also includes the results associated with financial income from the investment of its excess capital.

On October 24, 2010, Itau Unibanco completed the integration of customer service locations throughout Brazil. In total, 998 branches and 245 customer site branches (CSB) of Unibanco were redesigned and integrated as Itau Unibanco customer service locations, thus creating a network of approximately 4,700 units in the country under the Itau brand. The Company is a financial holding company controlled by Itau Unibanco Participacoes S.A. (IUPAR). As of December 31, 2010, it had a network of 3,747 service branches throughout Brazil. As of December 31, 2010, it operated 913 CSBs throughout Brazil. As of December 31, 2010, it operated 28,844 automated teller machines (ATMs) throughout Brazil.

Commercial banking

The commercial banking segment offers a range of banking services to a diversified base of individuals and companies. Services offered by the commercial banking segment include insurance, pension plan and capitalization products, credit cards, asset management, credit products and customized products and solutions. The commercial banking segment comprises the specialized! areas and products, such as retail banking (individuals); public sector banking; personnalite (banking for high-income individuals); private banking (banking and financial consulting for wealthy individuals); very small business banking; small business banking; middle-market banking; credit cards; real estate financing; asset management; corporate social responsibility fund; securities services for third parties; brokerage, and insurance, private retirement and capitalization products.

The Company�� credit products include personal loans, overdraft protection, payroll loans, vehicles, credit cards, mortgage and agricultural loans, working capital, trade note discount and export. Its investments products include pension plans, mutual funds, time deposits, demand deposit accounts, savings accounts and capitalization plans. Its services include insurance (life, home, credit/cash cards, vehicles, loan protection, among others), exchange, brokerage and others. Its core business is retail banking, which serves individuals with a monthly income below R$7,000. In October 2010, it completed the conversion of branches under the Unibanco brand to the Itau brand and as of December 31, 2010, it had over 15.2 million customers and 4,660 branches and CSBs. Its public sector business operates in all areas of the public sector, including the federal, state and municipal governments (in the executive, legislative and judicial branches). As of December 31, 2010, it had approximately 2,300 public sector customers. Itau Personnalite�� focus is delivering financial advisory services by its managers, who understand the specific needs of its higher-income customers; a portfolio of exclusive products and services; special benefits based on the type and length of relationship with the customer, including discounts on various products and services. Itau Personnalite�� customer base reached more than 600,000 individuals as of December 31, 2010. Itau Personnalite customers also have access to Itau Unibanco netwo! rk of bra! nches and ATMs throughout the country, as well as Internet banking and phone.

Itau Private Bank is a Brazilian bank in the global private banking industry, providing wealth management services to approximately 17,951 Latin American clients as of December 31, 2010. The Company serves its customers��needs for offshore wealth management solutions in major jurisdictions through independent institutions in the United States through Banco Itau Europa International and Itau Europa Securities , in Luxembourg through Banco Itau Europa Luxembourg S.A. , in Switzerland through Banco Itau Suisse , in the Bahamas through BIE Bank & Trust Bahamas and in Cayman through Unicorp Bank & Trust Cayman. As of December 31, 2010, it had over 565 very small business banking offices located throughout Brazil and approximately 2,500 managers working for over 1,235,000 small business customers. Loans to very small businesses totaled R$5,981 million as of December 31, 2010. As of December 31, 2010, it had 374 small business banking offices located nationwide in Brazil and nearly 2,500 managers who worked for over 525,000 companies. Loans to small businesses totaled R$28,744 million as of December 31, 2010.

As of December 31, 2010, it had approximately 115,000 middle-market corporate customers that represented a range of Brazilian companies located in over 83 cities in Brazil. The Company offers a range of financial products and services to middle-market customers, including deposit accounts, investment options, insurance, private retirement plans and credit products. Credit products include investment capital loans, working capital loans, inventory financing, trade financing, foreign currency services, equipment leasing services, letters of credit and guarantees. The Company also carries out financial transactions on behalf of middle-market customers, including interbank transactions, open market transactions and futures, swaps, hedging and arbitrage transactions. It also offers its middle-market custom! ers colle! ction services and electronic payment services. The Company is able to provide these services for virtually any kind of payment, including Internet office banking. It charges collection fees and fees for making payments, such as payroll, on behalf of its customers.

The Company is engaged in the Brazilian credit card market. Its subsidiaries, Banco Itaucard S.A. (Banco Itaucard) and Hipercard Banco Multiplo S.A. (Hipercard), offers a range of products to 26 million customers as of December 31, 2010, including both accountholders and non-accountholders. As of December 31, 2010, it had approximately R$16,271 million in outstanding real estate loans. As of December 31, 2010, it had total net assets under management of R$291,748 million on behalf of approximately 2.1 million customers. The Company also provides portfolio management services for pension funds, corporations, private bank customers and foreign investors. As of December 31, 2010, it had R$184,496 million of assets under management for pension funds, corporations and private bank customers. As of December 31, 2010, the Company offered and managed about 1,791 mutual funds, which are mostly fixed-income and money market funds. For individual customers, it offered 154 funds to its retail customers and approximately 287 funds to its Itau Personnalite customers. Private banking customers may invest in over 600 funds, including those offered by other institutions. Itau BBA�� capital markets group also provides tailor-made mutual funds to institutional, corporate and private banking customers.

The Company provides securities services in the Brazilian capital markets. Its services also include acting as transfer agent, providing services relating to debentures and promissory notes, custody and control services for mutual funds, pension funds and portfolios, providing trustee services and non-resident investor services, and acting as custodian for depositary receipt programs. The Company also provides brokerage services to inte! rnational! customers through its broker-dealer operations in New York, through its London branch, and through its broker-dealers in Hong Kong and Dubai. Its main lines of insurance are life and casualty (excluding Vida Gerador de Benefucio Livre), extended warranties and property. Its policies are sold through its banking operations, independent local brokers, multinational brokers and other channels. As of December 31, 2010, it had 9.9 million in capitalization products outstanding, representing R$2,620 million in liabilities with assets that function as guarantees of R$2,646 million. The Company distributes these products through its retail network, Itau Personnalite and Itau Uniclass branches, electronic channels and ATMs. These products are sold by its subsidiary, Cia. Itau de Capitalizacao S.A.

Itau BBA

Itau BBA is responsible for its corporate and investment banking activities. As of December 31, 2010, Itau BBA offered a portfolio of products and services to approximately 2,400 companies and conglomerates in Brazil. Itau BBA�� activities range from typical operations of a commercial bank to capital markets operations and advisory services for mergers and acquisitions. As of December 31, 2010, its corporate loan portfolio was R$ 76,584 million. In investment banking, the fixed income department was responsible for the issuance of debentures and promissory notes that totaled R$18,888 million and securitization transactions that amounted to R$4,677 million in Brazil in 2010. In addition, Itau BBA advised 35 merger and acquisition transactions with an aggregate deal volume of R$16,973 million in 2010.

Itau BBA is also active in Banco Nacional de Desenvolvimento Economico e Social (BNDES) on-lending to finance large-scale projects, aiming at strengthening domestic infrastructure. In consolidated terms, total loans granted by Itau BBA under BNDES on-lending represented more than R$9,010 million in 2010. Itau BBA focuses on the products and initiatives in the international ! business ! unit, such as structuring long-term, bilateral and syndicated financing, and spot foreign exchange. In addition, in 2010 Itau BBA continued to offer a large number of lines of credit for foreign trade.

Consumer Credit

As of December 31, 2010, its portfolio of vehicle financing, leasing and consortium lending consisted of approximately 3.8 million contracts, of which approximately 71.1% were non-accountholder customers. The personal loan portfolio relating to vehicle financing and leasing reached R$60,254 million in 2010. The Company leased and financed vehicles through 13,706 dealers as of December 31, 2010. Sales are made through computer terminals installed in the dealerships that are connected to its computer network. Redecard S.A. (Redecard) is a multibrand credit card provider in Brazil, also responsible for the capturing, transmission, processing and settlement of credit, debit and benefit card transactions. As of December 31, 2010, the Company held approximately 50% interest in Redecard�� capital stock.

The Company competes with Bradesco, Banco do Brasil S.A. (Banco do Brasil), Banco Santander, Caixa Economica Federal (CEF), BNDES, HSBC, Banco Citibank S.A, Banco de Investimentos Credit Suisse (Brasil) S.A., Banco JP Morgan S.A., Banco Morgan Stanley S.A., Banco Merrill Lynch de Investimentos S.A., Banco BTG Pactual S.A., Banco Panamericano S.A, Citibank S.A., Banco GE Capital S.A. and Banco Ibi S.A.

Top 5 Low Price Stocks To Watch Right Now: Mencast Holdings Ltd. (5NF.SI)

Mencast Holdings Ltd, an investment holding company, engages in the manufacture, supply, refurbishment, and reconditioning of sterngear equipment. The company's product portfolio comprises propellers, propeller shafts, stern rollers, rudders and rudder stocks, kort nozzles, and marine bearings and bronze sleeves. It also provides various services that include grinding, pitch checking, polishing, static and dynamic balancing, and final inspection; re-pitching of propellers; blue-fitting of keyless propellers, rudder pintle, and rudder stock; casting of replacement tips for damaged propellers; inspection of propellers and analysis of performance; shaft measurement for concentricity, bending, and re sleeving of tail shafts; welding services comprising dredging bucket repair, rudder stock repair, stainless cladding, and roller sheave; general machining services consisting of turning, milling, boring and shaping; and machining of marine bearings. In addition, Mencast Holdings e ngages in the manufacture of marine parts and equipment; and construction and repair of engines, boilers, and machinery. It offers its products and services to the marine and offshore oil and gas industries in Singapore, Malaysia, Brunei, China, Indonesia, the Philippines, Hong Kong, India, Sri Lanka, Maldives, Australia, Europe, the Middle East, and the United States. The company was founded in 1981 and is based in Singapore.

Top 10 Investments For 2014: Star Bulk Carriers Corp.(SBLK)

Star Bulk Carriers Corp. operates as a shipping company providing seaborne transportation solutions in the dry bulk sector worldwide. Its vessels transport major bulks, which include iron ore, coal, and grain; and minor bulks, such as bauxite, fertilizers, and steel products. The company has an operating fleet of 15 dry bulk carriers consisting of 7 Capesize and 8 Supramax dry bulk vessels with a combined cargo carrying capacity of 1,625,945 deadweight tons. The company was incorporated in 2006 and is based in Athens, Greece.

Top 5 Low Price Stocks To Watch Right Now: 8x8 Inc(EGHT)

8x8, Inc. develops and markets telecommunications services for Internet protocol (IP), telephony, and video applications. The company offers 8x8 Virtual Office Business Telephone Service, an alternative to traditional private branch exchange systems that offers automated attendants to assist callers; extension-to-extension dialing services; direct inward dial; conference bridge, 3-way calling, music on hold, call park/pick-up, call transfer, hunt groups, and do not disturb services; voice mail, including email alerts and direct transfer to mailbox; call waiting/caller-ID; distinctive tone ringing; and optional receptionist console applications. Its products also include 8x8 Complete Contact Center, an integrated hosted call center solution that consists of skill-based routing, multi-media management, real time monitoring and reporting, voice recording and logging, historical reporting, interactive voice response, CRM integration, and contact and case management tools; 8x8 IP Telephones; 8x8 Virtual Meeting, a video Web conferencing service; and 8x8 Managed Hosting and Cloud-Based Computing Solutions. In addition, the company offers 8x8 Virtual Office Pro Unified Communications that allows subscribers to manage business communications functions online and delivers various tools, such as Microsoft Outlook contacts and corporate directory integration; virtual meeting; Virtual Office Mobile extension; fax; call recording; presence management; and a view of voicemails, recordings, FAX messages, calls, and chat history. The company markets its services under 8x8 brand to end users through direct sales force, Web site, and third party resellers primarily in the United States. As of June 30, 2011, it had approximately 25,000 business customers. 8x8, Inc. was founded in 1987 and is headquartered in Sunnyvale, California.

Top 5 Low Price Stocks To Watch Right Now: Accelrys Inc.(ACCL)

Accelrys, Inc. develops and commercializes scientific business intelligence software and solutions in the United States, Europe, and the Asia Pacific. The company offers Pipeline Pilot, Accelrys enterprise R&D platform, which allows users to aggregate, integrate, and mine structured and unstructured scientific data, such as chemical structures, biological sequences, and complex digital images; and filters, normalizes, and performs statistical analysis on the scientific data and provides visual reports to scientists and scientific managers. It also provides computer aided design modeling and simulation software that allows scientists to perform computations of chemical, biological, and materials properties to simulate, visualize, and analyze chemical and biological systems, as well as communicate the results to other scientists; and data management and informatics software to capture, store, manage, and mine scientific data information. In addition, the company offers Enter prise Lab Notebook, which provides a digital environment to plan, execute, record, store, back-up, and share daily research activities; lab execution systems; and content databases to support research activities through a collection of factual databases and reference works. Further, it provides software wrappers that allows customers to run their own algorithms on the company?s R&D platform; enterprise-wide informatics systems, which integrate customers? internal systems with software from various vendors; contract research services; onsite training and implementation, Web-based training, and data migration services; and support services. The company serves pharmaceutical, biotechnology, agricultural, energy, chemicals, aerospace, consumer packaged goods, and industrial product industries, as well as government and academic entities through direct sales force, telesales, and distributors. Accelrys, Inc. was founded in 1993 and is headquartered in San Diego, California.

Saturday, August 24, 2013

SEC Full Funding Boost Request Goes Bust

SEC logoThe Securities and Exchange Commission is set to get $303 million less than what it was requesting under the House Appropriations Committee fiscal year 2014 Financial Services and General Government Appropriations bill, released Tuesday.

The bill, to be considered in subcommittee Wednesday, includes $1.4 billion for the SEC, which is a $50 million increase from its fiscal 2013 budget but $303 million less than President Barack Obama requested.

SEC Chairwoman Mary Jo White told the appropriations committee in early May that the agency’s $1.67 billion budget request for fiscal 2014 would help it fulfill one of its top priorities: to add 250 examiners for advisors.

The 250 examiners, White said, would increase the proportion of advisors examined each year, the rate of first-time examinations, and the examination coverage of investment advisors and newly registered private fund advisors.

The $1.67 billion budget request under Obama’s budget is a 27% increase, or $353 million, over the $1.32 billion provided by the continuing resolution (CR) the SEC was operating under this year.

Rep. José Serrano, D-N.Y., ranking member on the subcommittee, noted during the early May hearing that while it would be an “unwise investment choice” for the subcommittee to cut funding for the agency that’s the “cop on the beat” for Wall Street and that ensures “a fair playing field” for the nation’s markets, he told White that “further cuts” were likely.

---

Check out SEC’s White Gets Short Shrift from Congress.

Friday, August 23, 2013

PIMCO’s Gross: Bond Warriors, Prepare for Battle!

Bonds, like animals that don’t adapt to their changing environment or armies that don’t change with the times, could go extinct if they fail to keep up with the demands of a changing market, according to Bill Gross, co-CIO of PIMCO.

In his monthly commentary, he compared bonds to the British army in the disastrous Battle of the Somme in 1916. Like the British, who thought their horses and sabers could match the German army’s machine guns, bonds are being overrun by alternative assets, Gross said.

Despite bonds’ 30-year reputation for reliable income, current low yields and a negative 3%–4% two-month return have forced investors to consider alternatives, but Gross — himself a former Navy lieutenant — insisted “there will always be a place for the bond market ‘army.’”

“All investments, bonds included, have a number of modern-day weapons at their disposal which can be used to defend against higher interest rates, weapons that don’t necessarily go down in price as yields rise. These weapons can collectively be categorized as ‘carry,’” he wrote. “When interest rates go up as fast as they did in early May, prices go down for long and intermediate maturity bonds, and the carry associated with maturity extension becomes akin to a horse charging a machine gun.”

However, Gross continued, bonds have other types of carry including credit spreads, which provide a risk-adjusted carry, and volatility premiums. The yield curve and non-dollar currency also provide carry for bonds.

Although maturity risk is investors’ biggest concern in their bond portfolios, Gross reiterated that “there will always be a need for fixed income and therefore maturity extension in investors’ portfolios.” He compared credit, volatility, curve and currency carries to the machine guns of the German army.

More important than simply adopting advanced weapons, though, is the ability to adapt and know when to use them, Gross said: There may be times when duration is a better play than credit. The biggest risk is the total carry of a portfolio, he wrote, and one that is PIMCO’s dominant focus. “In a highly levered economy/financial marketplace, all forms of carry can go up or down at the same time. […] The diversifying aspects of one form of carry versus another may hold form in most future time periods, but when they don’t, almost all investors will regret not focusing on total carry as opposed to discriminating exclusively against maturity extension.”

Ultimately, Gross wrote, when investing prospects look dull, portfolios should be overweight carry, and underweight when prospects start to shine.

“So, fellow generals in this bond war, today’s war college lesson is to be mindful of evolution and the necessity to adapt,” he concluded. “The secret to using [bonds] will be to strategically position their component and combined carry to maintain positive absolute returns.”

-- Read more about Bill Gross at ThinkAdvisor:

Sunday, August 18, 2013

Accenture Wins Telenor Contract - Analyst Blog

Accenture Plc. (ACN) sored yet another win at the Telenor Group, a provider of tele, data and media communication services. As per the contract, Accenture is expected to speed up the implementation process of the global shared services vision acrossdifferent companies within the Telenor Groupacross the Finance & Accounting, HR, IT and transactional procurement/purchase functions.

The agreement allows Telenor Global Shared Servicesto access Accenture's highly experienced management group. The $215 million five-year contract will help improve Telenor's efficiency by streamlining its shared services platform.

Accenture is implementing various growth strategies to penetrate newer markets and win more clients. These include emerging markets like India, the Philippines, China andLatin America. The company is offering customized services and focusing on working with local clients.

These strategies will decrease the risk from the slow-performing the major economies, which currently provide around 80% of Accenture's total revenue.

Moreover, Accenture is making small-scale acquisitions in underpenetrated regions to gain customized technology and knowledge to serve local clients. A couple of years ago, in Saudi Arabia, Accenture acquired a majority stake in Al Faisaliah Business & Technology Company. At the same time, competition in emerging markets is on the rise, which may moderategrowth prospects.

Although frequent deal wins have helped the company, competition from companies like IBM Corp. (IBM) continues to increase. Additionally, a strained spending environment as well as significant exposure to Europe may temper growth to some extent.

Currently, Accenture has a Zacks Rank #3 (Hold).

Investors may also consider other stocks in the sector such as Information Services Group (III), with a Zacks Rank #1 (Strong Buy) and Towers Watson (TW), with a Zacks Rank #2 (Buy).

Saturday, August 17, 2013

Thursday’s ETF Chart To Watch: XLI Hits Resistance Ahead ...

Selling pressures swept over Wall Street on Wednesday as mixed earnings on the day and upcoming economic data releases prompted many to lock-in profits. Investors rejoiced as Apple beat analysts' estimates and rallied +5% on the day, although a worse-than-expected forecast from Caterpillar sent a wave of worry across the market as investors interpreted the words of cautions from the machinery giant as a sign that global growth is still sluggish at best .

Our ETF to watch for the day is the Industrial Select Sector SPDR , which will look to summit resistance after investors digest the latest round of manufacturing data. Analysts are expecting for June durable goods orders to have grown by 2.3%, which is a slight deterioration from last month's reading of 3.7%.

Chart Analysis

Consider XLI's one-year daily performance chart below. This ETF has been trading higher within a fairly well-defined channel (red lines) since it rebounded off its 200-day moving average (yellow line) in mid-November of 2012. Furthermore, XLI has a tendency to sharply correct down to its lower-support line after grinding along, or breaking above, its upper-resistance boundary, as seen in the first half April this year and most recently in the second half of June. With XLI currently trading right along resistance, we feels that traders can favorably position themselves in anticipation of a pullback by utilizing a tight stop-loss near the recent highs in case the bulls return with little warning .

Click to EnlargeDespite the attractive downside potential, we advise investors to hold off from taking on a short position here, seeing as how the longer-term trend is still undeniably very bullish . 

OutlookIf the latest durable goods report comes in well above expectations, XLI should have the winds at its back for the day; in terms of upside, this ETF has no clear resistance level in sight after its all-time high at $45.64. On the other hand, disappointing data can easily bring out the bears a! nd encourage profit taking; in terms of downside, this ETF has support at $44 a share followed by the $42 level. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques.

Follow me on Twitter @SBojinov



Disclosure: No positions at time of writing.



Friday, August 16, 2013

ETF Asset Report for First Half of 2013: Japan Wins, ...

While the ETF industry has hauled in plenty of money so far in 2013, riding on the uptrend in developed markets such as the U.S. and Japan, total asset creation slackened from the year-ago level. Per the data from IndexUniverse, the biggest declines came from dampened investor interest towards physical assets and emerging market ETFs.

In such a scenario, we pick the top-and-bottom five asset generators in the first half of 2013. Japan-based funds along with the U.S. financial sector ETF were the star performers in terms of asset gathering in the first half, but in particular, these five saw the most inflows:

Top Gainers in 1H13 ($, Million)



Ticker

Fund

1H13 Inflows

AUM ($, M)

DXJ

WisdomTree Japan Hedged Equity

8,127.5

9,936.0

EWJ

iShares MSCI Japan

4,938.3

10,938.2

XLF

Financial Select SPDR

3,412.3

14,446.1

IVV

iShares Core S'P 500

3,277.53

42,943.5

BSV

Vanguard Short-Term Bond

3,238.1

12,404.1

*Source: Indexuniverse
Top Winners and Why

On the other side of the world, Japan's target of 2% inflation backed by an easy monetary policy sent Japanese stocks on a six-month-long rally which had suffered low growth and deflation for a long time.

The pace of inflow into Japanese stock ETFs this year is already more than double the levels seen in 2012 and 2011. However, June has seen significant volatility (and losses) for the Japanese equity market which may lead to a trend reversal in the second half asset report (Read: Winning ETF Strategies For the Second Half).

In the entire first half though, the WisdomTree Japan Hedged Equity (DXJ) tracking the Japan Hedged Equity Index was the top asset gatherer, pulling in around $8.3 billion and amassing around $9.9 billion. Since the beginning of the year, Japan was a top market although the Japanese equities lost their winning momentum at the onset of the second half, owing to firmness in yen against the US dollar in the first week of June.

With as many as 315 stocks in its holdings, DXJ charges 48 bps in fees. The fund has considerable exposure in Industrials, Consumer Discretionary and Information Technology (Read: DXJ--Best ETF to Play the Japan Rally).

Another Japan-oriented fund, the iShares MSCI Japan Index Fund (EWJ) took the spot of the runner-up which accumulated $4.9 billion assets in the last six months to reach a total of $10.9 billion.

In the entire first half, the SPDR Financial Select Fund (XLF) – the third most popular ETF for inflows – saw fresh capital of around $3.4 billion. This fund tracks the SPDR Financial Select Sector Index. XLF manages an asset base of around $14.4 billion and charges 18 bps in fees and expenses.

Part of the reason for this surge in interest has been the soaring financial sector this year. Banks have shown an impressive comeback following a series of hedging losses and scandals, surging almost 200% over the span of last four years.

This outperformance was attributable ! to sound ! balance sheets, an uptick in mortgage activity, and lower loss provisions. In such a scenario, XLF was a good bet for investors thanks to a low expense ratio.

Another ETF, iShares Core S&P 500 Fund (IVV) was among the top winners in the first half, as $3.3 billion flocked into the fund. The S&P 500 Index is considered the mirror image of the broader U.S. equity market and we know the U.S. equities market has displayed great resilience recently, despite significant global headwinds.

The fifth spot goes to the Vanguard Short-Term Bond (BSV), which gained money owing to its less interest rate sensitivity/shorter duration profile amid a rising rate scenario (Read: Buy These ETFs to Profit from The Great Duration Rotation).

Top Losers

Discussed below are the products investors avoided in the first half of 2013. The table lists funds which lost assets considerably during the said period.

Biggest Losers 1H13 ($, Million)



Ticker

Name

Outflows

AUM ($, M)

GLD

SPDR Gold

-18,175.30

37,137.6

EEM

iShares MSCI Emerging Markets

-8,189.07

34,935.12

TIP

iShares Barclays TIPS Bond

-4,707.49

16,011.71

SPY

SPDR S&P 500

-4,551.56

133,335.51

LQD

iShares iBoxx $ Investment Grade Corporate Bond

-4,393.89

19,463.22

*Source: Indexuniverse

The SPDR Gold Shares (GLD) tracking Gold Bullion saw around $18 billion in outflows and stood at $37.1 billion at the end of the first half of 2013. The product has been beaten down significantly since the beginning of the year thanks to a number of factors.

Growing optimism surrounding the U.S. economy and some remedial measures taken in the Euro zone shifted investors' attention from physical asset ETF to equity markets (Read: Have We Seen the Bottom in Gold ETFs?).

iShares MSCI Emerging Markets (EEM) fund tracking the MSCI Emerging Markets Index, saw asset drainage of about $8.2 billion to $34 billion in the initial half of 2013. Focus on domestic recovery along with concerns of slower growth in some emerging markets like China, Brazil and India might have resulted in assets gushing out of the fund.

After that comes the iShares Barclays TIPS Bond ETF (TIP) which witnessed $4.7 billion worth of redemptions. These instruments are primarily aimed at generating real returns by protecting a fixed income portfolio from inflation risk.

However, with the higher yields on the U.S. Treasury 10-year note (2.63% as of July 10th, 2013, compared with 1.68% at the end of April), and the lack of an increase in inflation risks, investors might have turned their focus away from the TIPS bond for now (Read: Long-Term Treasury Bond ETF Investing 101).

iShares iBoxx $ Investment Grade Corporate Bond (LQD) shared the same fate. Investors are beginning to limit their bond ETF purchases as worries are creeping over bigger losses in this corner of the market, pushing investors into ultra-low duration securities, or even equities, for better exposure.

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Top 5 Casino Companies To Invest In Right Now

When a celebrity messes up there's usually a hefty price to pay.

Paula Deen's racial slur cost her dearly in corporate sponsorships.

Paula Deen has seen her future earnings prospects dim after her admission of using a racial slur. She lost her show. Several retailers have stopped stocking the celebrity chef's products. However, Deen has also lost lucrative endorsements with casino operator Caesars Entertainment (NASDAQ: CZR  ) and packaged pork products producer Smithfield Foods (NYSE: SFD  ) .

She's not alone.

Several notable celebrities have found themselves booted from endorsement deals after running afoul of public opinion.

Top 5 Casino Companies To Invest In Right Now: Penn National Gaming Inc.(PENN)

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

Advisors' Opinion:
  • [By Quickel]

    Penn National Gaming(PENN) squeaked past its guidance through improved cost controls, and investors praised its efforts.

    But expectations were low, and its upbeat outlook shouldn't be viewed as a message that regional markets are recovering. "Going forward, we project soft regional gaming revenue results over the next three to six months, as we do not expect to see a significant increase in consumer spending patterns given the uncertain economic environment," J.P. Morgan analyst Joseph Greff wrote in a note.

    Penn National raised its full-year earnings guidance to $1.18 from $1.13 a share, and up its revenue outlook by $26 million to $2.44 billion from $2.41 billion.

    During the second quarter, the company earned $9.2 million, or 9 cents a share, compared with $28.5 million, or 27 cents, in the year-ago period. Excluding items, Penn actually earned 29 cents a share, a penny higher than estimates.

    Revenue rose 3% to $598.3 million, higher than the $597.1 million Wall Street projected. The upside was driven by both better revenues and margins and was generally broad-based across many properties, especially larger venues in Charlestown, Lawrenceburg and Grantville, Pa.

    Penn National rolled out table games in West Virginia and Pennsylvania during the quarter, which should be a growth catalyst moving forward. The company also plans to open a slot facility in Maryland on Sept. 30 and expects its Toldeo, Ohio, location to open in the first-half of 2012. Its Columbus project is slated to open in the second-half of 2012.

    The company repurchased 409,000 shares during the quarter. "[This] sends a message to investors on the value of its equity, but perhaps indicating the lack of near-term acquisition opportunities," J.P. Morgan analyst Joseph Greff wrote in a note.

Top 5 Casino Companies To Invest In Right Now: (XTRN)

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

Top 5 Oil Stocks For 2014: Boyd Gaming Corporation(BYD)

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

Advisors' Opinion:
  • [By Hesler]

    Boyd Gaming(BYD) posted a bigger-than-expected drop in its second-quarter earnings, citing weak performance in Las Vegas, the Midwest and the South.

    During the quarter, the casino operator earned $3.4 million, or 4 cents a share, a 73% plunge from $12.8 million, or 15 cents, in the year-ago period. Adjusted earnings came in at 5 cents a share, significantly lower than the 10 cents Wall Street predicted for Boyd.

    Boyd's revenue fell 6% to $578.4 million, also short of the consensus of $588 million.

    "The lingering effects of the recession have left consumers unusually sensitive to shifts in the economy, and they now react more quickly to economic data and other developments, such as fluctuations in the stock market," said CEO Keith Smith, in a statement. "Although conditions remain uncertain, we believe long-term stabilizing trends are still in place, and that year-over-year growth is achievable by the end of 2010."

    In the Las Vegas locals market, the rate of decline in earnings before interest, taxes, depreciation and amortization rose to 16.2% from 10.8%, J.P. Morgan analyst Joseph Greff wrote in a note. Boyd previously reported a 9.9% decline for its Borgata property in Atlantic City. Revenue came in at $186.9 million, a 2.4% decrease from the year-ago period.

    "We think second-quarter results are less important than the coming operating results in the second-half of 2010, when the Atlantic City market faces increased regional competitive pressures from tables in Pennsylvania and West Virginia and the first Philadelphia casino opens this summer," J.P. Morgan analyst Joseph Greff wrote in a note.

    Greff reaffirmed his underweight rating on Boyd, given increasing competition in Atlantic City, a weak recovery in the Las Vegas locals market and stagnant regional gaming trends.

    While there is no doubt the Atlantic City gaming market remains one of the most depressed, Borgata continues to dominate the market and gain share. Atlant! ic City saw gaming revenues plunge 11.1% in June to $286.8 million. Boyd co-owns Borgata with MGM Resorts, which is currently in the process of divesting its 50% stake.

Top 5 Casino Companies To Invest In Right Now: Wynn Resorts Limited(WYNN)

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

Advisors' Opinion:
  • [By Jeanine Poggi]

    Wynn Resorts'(WYNN) run up of more than 55% this year has caused Wall Street to question its valuation.

    Currently, eight analysts have a buy rating on Wynn, 16 say hold, two rate it underperform rating and one says to sell the stock.

    "With little on the growth horizon in the intermediate term, new competition from Cotai coming in 2011 and 2012 ... and the unclear timing of a true recovery in Las Vegas, we see few catalysts not yet priced-in to pull valuation higher than current levels," Bain wrote in a note following its third-quarter earnings report.

    During the quarter, Wynn lost $33.5 million, or 27 cents a share, compared with a profit of $34.2 million, or 28 cents, in the year-ago period. The loss was attributed to charges related to servicing its debt. On an adjusted basis, Wynn actually earned 39 cents, matching Wall Street's outlook.

    Total Revenue grew to $1 billion from $773.1 million, better than the $990.8 million analysts predicted.

    In Macau, Wynn reported a 50% surge in revenue to $671.4 million, while EBITDA was $198 million, up 54.5% from $128.2 million in the third quarter of 2009. Earlier in the year the company opened its $600 million Wynn Encore Macau, which added 414 rooms to the market.

    Looking ahead, Wynn expects to break ground on its Cotai development in early 2011. The $2 billion to $3 billion project is slated to open in 2015, and management said it would provide additional details following its fourth-quarter earnings report.

    In Las Vegas, CEO Steve Wynn says the Strip is on the road to recovery. "I believe we have seen the bottom in Las Vegas," he said during the company's third-quarter conference call. "I don't know how fast it is going to get better but it isn't going to get any worse."

    Las Vegas revenue inched up 3.1% to $334.5 million during the three-month period, and EBITDA grew 9.3% to $76.5 million.

    Wynn also issued a cash dividend of $8 a share payable on Dec. 7 to sharehold! ers of record on Nov. 23.

Top 5 Casino Companies To Invest In Right Now: Pinnacle Entertainment Inc.(PNK)

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

Advisors' Opinion:
  • [By Jeanine Poggi]

    Pinnacle Entertainment(PNK) was the great transition story of 2010, with shares spiking about 45% this year.

    The regional casino operator's most impressive story has been in its gross margins, as management, under the leadership of new CEO Anthony Sanfilippo, is in the process of increasing the company's operating efficiencies and prudently allocating capital. Analysts believe Pinnacle is in the early stages of this process, and will continue to drive revenue growth.

    In its third quarter, Pinnacle reported a surprise profit of 10 cents a share on an adjusted basis, better than consensus estimates of a loss of 7 cents. Revenue grew 15% to $287.8 million, while property-level margins reached 23.4%, also ahead of forecasts.

    Last month, Pinnacle purchased Cincinnati's River Downs Racetrack for $45 million. The deal includes 155 acres, 35 of which are still undeveloped. The transaction is expected to close by the end of the first quarter of 2011.

    This deal could generate significant returns in the event that Ohio decides to legalize video lottery terminals at racetracks, Santarelli said.

    Pinnacle is also in the process of looking for a buyer of its oceanfront land in Atlantic City, where it originally intended to build a $1.5 billion casino, before squelching plans. The casino operator bought the land in 2006 for $270 million from groups affiliated with Carl Icahn and later added another piece of land for $70 million.

    While the land's currently value is $38 million, Pinnacle insists it will not sell it on the cheap, holding out for the best deal.

    Pinnacle currently has $228 million in cash and $375 million of availability under its revolver.

Wednesday, August 14, 2013

10 Best Heal Care Stocks To Buy For 2014

Charlie Munger offers a valuable nugget of investing advice: "Carefully look at what other great investors have done." Fortunately for us, some of the biggest and brightest investors must divulge their stock positions each quarter, providing insight into the stock moves of money pros like billionaire and successful fund manger Ken Fisher.

Favorite five
Based on its 13F SEC filing for Q1 2013, most of Fisher's top stock positions cover the health care, financial services, industrials, and tech sectors. Let's zero in on five of these megacap companies and examine some possible reasons Fisher likes these stocks in particular.

Pfizer (NYSE: PFE  )
Representing 2.36% of Fisher's portfolio, Pfizer is its largest stock holding. After making many acquisitions over the past several years, Pfizer is now focused on divesting its non-core business. The company recently launched an IPO of a minority stake in its Animal Health business, Zoetis. And despite the patent expiration on Lipitor, Pfizer boasts a robust drug pipeline including products for stroke prevention, rheumatoid arthritis, and cancer.

10 Best Heal Care Stocks To Buy For 2014: Capstone Therapeutics Corp(CAPS)

Capstone Therapeutics Corp., a biotechnology company, develops therapeutic peptides and other molecules for helping patients with under-served medical conditions. The company focuses on the development and commercialization of two product platforms, AZX100 and Chrysalin. Its product AZX100 includes a novel synthetic 24-amino acid peptide, a class of compounds in the field of smooth muscle relaxation and fibrosis. The company involves in evaluating AZX100 for various medical applications, such as the prevention or reduction of hypertrophic and keloid scarring, treatment of pulmonary fibrosis, and vascular intimal hyperplasia. It also engages in developing Chrysalin, a novel synthetic 23-amino acid peptide for disorders that involve vascular endothelial dysfunction, including acute myocardial infarction and chronic myocardial ischemia. Capstone Therapeutics owns worldwide rights to AZX100 and Chrysalin. The company was formerly known as OrthoLogic Corp. and changed its name to Capstone Therapeutics Corp. in May 2010. Capstone Therapeutics Corp. was founded in 1987 and is based in Tempe, Arizona.

10 Best Heal Care Stocks To Buy For 2014: Gold World Resources Inc (GDW.V)

Gold World Resources Inc., an exploration stage company, engages in the acquisition, exploration, development, and mining of mineral resource properties in Canada. The company primarily explores for gold and silver deposits. It holds a 100% interest in the Mount Anderson Yukon gold/silver, polymetallic project located in the Wheaton River District in Yukon, Canada. The company was formerly known as Strikezone Minerals (Canada) Ltd. and changed its name to Gold World Resources Inc. in January 2006. Gold World Resources Inc. was founded in 1981 and is headquartered in Toronto, Canada.

Top 5 Value Stocks To Watch Right Now: Focus Media Holding Limited(FMCN)

Focus Media Holding Limited, a multi- platform digital media company, operates out-of-home advertising network using audiovisual digital displays in China. It operates out-of-home advertising network based on the number of locations and flat-panel television displays in its network. The company, through its multi-platform digital advertising network, reaches urban consumers at locations and point-of-interests over various media formats, including audiovisual television displays in buildings and stores, advertising poster frames, outdoor light-emitting diode digital billboards, and Internet advertising platforms. As of June 30, 2010, its digital out-of-home advertising network had approximately 142,000 LCD displays in its LCD display network and approximately 275,000 advertising in-elevator poster and digital frames, installed in approximately 90 cities. The company also provides Internet marketing solutions; and sells software licenses and services, primarily including Adf orward software. Focus Media Holding Limited was founded in 1997 and is based in Shanghai, the People?s Republic of China.

Advisors' Opinion:
  • [By Hesler]

    Focus Media operates the largest out-of-home advertising network in China using audiovisual flat-panel displays based on the number of locations and number of displays in its network. Focus Media Holding Ltd. has a market cap of $4.55 billion; its shares were traded at around $31.4 with a P/E ratio of 31.4 and P/S ratio of 8.82.

    George Soros sold out of his position of almost 2 million shares in Focus Media Holding in the fourth quarter of 2009 when the stock had reached $14, after falling as low as $7.45 in the second quarter of 2009. He purchased 400,000 shares in the first quarter 2011 at an average price of $26.22 per share. Year to date the stock price has risen 42.5%.

    Most of Focus Media’s revenue growth in the first quarter was driven by advertising and its LCD displays. Focus Media’s advertising net revenue for its LCD display network increased 63%, advertising net revenue from its poster frame network increased 46%, and advertising net revenue from the in-store network increased 23%, from the first quarter 2010. Its net revenue from its LCD display (including a movie theater network), in-store and poster frame businesses increased 54%.

    The company’s net income for the first quarter of 2011 was $20.5 million, increased from a net loss of $1.0 million in the first quarter of 2010.

    In the first quarter, the company has also spent $240 million repurchasing shares, out of a $300 million share repurchase program, and has plans to buy a 15% stake in Enjoy China Technology Development Company Limited.

10 Best Heal Care Stocks To Buy For 2014: Savient Pharmaceuticals Inc(SVNT)

Savient Pharmaceuticals, Inc., a specialty biopharmaceutical company, focuses on developing KRYSTEXXA, a biologic PEGylated uricase in the United States. The KRYSTEXXA is being developed as a treatment for chronic gout in patients refractory to conventional therapy. The company also sells and distributes branded and generic versions of oxandrolone, a drug used to promote weight gain following involuntary weight loss. It sells its products directly to drug wholesalers. The company, formerly known as Bio-Technology General Corp. and changed its name to Savient Pharmaceuticals, Inc. in June 2003. Savient Pharmaceuticals, Inc. was founded in 1980 and is headquartered in East Brunswick, New Jersey.

10 Best Heal Care Stocks To Buy For 2014: Sunshine Holdings Limited (Y34.SI)

China Mining International Limited, an investment holding company, engages in the investment, development, and management of commercial and residential properties primarily in the People�s Republic of China. It holds properties for rental and related income; engages in the sub-leasing and management of commercial developments, service apartments, and SOHO offices; and provides hotel and property management services, as well as maintenance and related services. The company was formerly known as Sunshine Holdings Limited and changed its name to China Mining International Limited in March 2012. China Mining International Limited was founded in 1999 and is based in Zhengzhou, the People�s Republic of China.

10 Best Heal Care Stocks To Buy For 2014: BioSpecifics Technologies Corp(BSTC)

Biospecifics Technologies Corp., a biopharmaceutical company, involves in the development of an injectable collagenase for various indications. It has a development and license agreement with Auxilium Pharmaceuticals, Inc. for injectable collagenase for clinical indications in Dupuytren?s contracture, Peyronie?s disease, and frozen shoulder. Biospecifics Technologies Corp. also focuses on the development of collagenase for various other clinical indications, including human and canine lipoma and cellulite. The company develops and commercializes XIAFLEX, which is used for the treatment of adult Dupuytren?s contracture. Biospecifics Technologies Corp. was founded in 1957 and is headquartered in Lynbrook, New York.

10 Best Heal Care Stocks To Buy For 2014: Virco Manufacturing Corporation(VIRC)

Virco Mfg. Corporation engages in the design, production, and distribution of furniture for the commercial and education markets in the United States. The company offers seating products, including cantilever chairs, tablet arm chairs, rockers, hard plastic seats, backrests, work surfaces, task chairs, classroom chairs, stack chairs, folding chairs, upholstered stack chairs, plastic stack chairs, and upholstered ergonomic chairs, as well as provides various seating product for students in college, university, other adult education settings, and on high school campuses. It also offers folding and banquet tables, activity tables, office tables, computer tables, and mobile tables, as well as table products for working and learning environments, seminars, and conferences; and computer furniture, including keyboard mouse trays, CPU holders, support columns, desks and workstations, and specialty tables and other products for computing applications. In addition, the company provi des chair desks, combo units, teacher desks, and tablet arm units, as well as a collection returns and credenzas. Further, it offers administrative office furniture, such as desks, returns, and bookcases; laboratory furniture, including steel-based science tables, table bases, lab stools, and steel foot-rings for biology and chemistry classes, and other school and college based lab settings; and mobile furniture comprising mobile tables for school cafeterias and mobile chairs for school settings and offices, as well as provides handling and storage equipment and manufactures stackable storage trucks. The company?s brand portfolio primarily includes ZUMA, ZUMAfrd, Ph.D., I.Q. Virtuoso, Classic Series, Martest 21, Lunada, Plateau, Core-a-Gator, Future Access, Sigma, Metaphor, Telos, TEXT, and Parameter. It also serves convention centers and arenas, hospitality providers, government facilities, and places of worship. Virco Mfg. Corporation founded in 1950 and is based in Torra nce, California.

10 Best Heal Care Stocks To Buy For 2014: Synergetics USA Inc.(SURG)

Synergetics USA, Inc., a medical device company, engages in the design, manufacture, and marketing of microsurgical instruments and consumables primarily for ophthalmology and neurosurgery markets in the United States and internationally. The company?s product lines focus upon precision engineered, microsurgical, handheld devices, and the microscopic delivery of laser energy, ultrasound, electrosurgery, aspiration, illumination and irrigation that are delivered in multiple combinations. It offers retinal surgical items, including handheld disposable and reusable forceps and scissors, fiberoptics for illumination and photocoagulation, cannulas, scrapers, and other reusable and disposable surgical devices. The company also provides bipolar electrosurgical generators; lesion generators used for minimally invasive pain treatment; and directional laser probes, as well as offers gauge instrumentation to the vitreoretinal surgical market. It sells its products through direct sale s employees, distributors, and independent sales representatives. The company was founded in 1991 and is headquartered in O?Fallon, Missouri.

10 Best Heal Care Stocks To Buy For 2014: Gaz Metro Ltd Partnership (VNR.TO)

Valener Inc. engages in the distribution of natural gas to residential and commercial customers in Canada. It holds a 29% interest in Gaz Metro Limited Partnership, which distributes natural gas to approximately 182,000 customers in Quebec and 138,000 customers in Vermont. The company also has a 24.5% indirect interest in the Seigneurie de Beaupr茅 wind power project located on the private lands of S茅minaire de Qu茅bec. The company was incorporated in 2010 and is headquartered in Montreal, Canada.

10 Best Heal Care Stocks To Buy For 2014: LDK Solar Co. Ltd.(LDK)

LDK Solar Co., Ltd., together with its subsidiaries, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products; and development of power plant projects. It offers solar-grade and semiconductor-grade polysilicon; and multicrystalline and monocrystalline solar wafers to the manufacturers of solar cells and solar modules. The company also provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers; and sells silicon materials, such as ingots and polysilicon scraps. In addition, it engages in the production and sale of solar cells and modules to developers, distributors, and system integrators; and design and development of solar power projects in Europe, the United States, and China, as well as provides engineering, procurement, and construction services. LDK Solar Co., Ltd. operates in Europe, the Asia Pacific, and North America. The company was founded in 2005 and is based in Xinyu City, t he People?s Republic of China.

Advisors' Opinion:
  • [By Paul]

    LDK Solar Co., Inc.(NYSE: LDK) closing price in the stock market Tuesday, Jan. 3, was $4.38. LDK is trading 9.48% above its 50 day moving average and -11.82% below its 200 day moving average. LDK is -70.74% below its 52-week high of $14.97 and 71.76% above its 52-week low of $2.55. LDK‘s PE ratio is 6.53 and its market cap is $573.78M.

    LDK Solar Co., Inc. engages in the design, development, manufacture, and marketing of photovoltaic (PV) products; and development of power plant projects together with its subsidiaries. LDK offers solar-grade and semiconductor-grade polysilicon; and multicrystalline and monocrystalline solar wafers to the manufacturers of solar cells and solar modules.

Saturday, August 10, 2013

Is Exxon Mobil a Good Investment In Any Environment?

With shares of Exxon Mobil Corporation (NYSE:XOM) trading at around $91.45, 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:

C = Catalyst for the Stock's Movement

Exxon Mobil has been one of the steadiest investments throughout the broader market since the 1970s. The current size of the company is nearly incomprehensible.

Savvy investors love Exxon Mobil for many reasons. One simple reason is that its size makes it resilient to market corrections. Will there be downswings? Of course. But those savvy investors are well aware that Exxon Mobil will always bounce back. Therefore, even if the stock gets slammed, it's an opportunity to add to a position. Theoretically, someone could only trade Exxon Mobil through his or her entire trading career and do well. When times are good, there isn't much to do but sit back and enjoy. The 2.80% yield will widen that smile a little more when the stock is appreciating. When times are bad, the only requirement for success is patience and the ability to add to a position. In some cases, there might be a great deal of patience required. However, eventually, that individual's position in the stock will increase, which means even brighter days ahead than during the last run-up. It sounds like a nice life, but very few people have the guts to implement this game plan.

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For those who aren't familiar with Exxon Mobil, here are just a few positives:

Profit margin of 10.86% ROE of 28.26% Enormous operating cash flow of $50.48 billion Dividend yield of 2.80% Superb historical stock performance Quality debt management Unfathomable profits Excellent capital allocation Analysts love the stock: 7 Buy, 16 Hold, 1 Sell Trading at only 9 times earnings Resiliency in bear markets Superior technology and planning compared to peers Increasing international demand thanks to emerging markets Developed largest natural gas field in the world 89% of employees approve of CEO Rex W. Tillerson

What more could investors possibly want?

Believe it or not, there are a couple of negatives. One, domestic demand is weak. Two, revenue declined in 2012. Revenue also declined last quarter on a year-over-year basis. Is global demand actually weakening? And what will happen to global markets once Ben Bernanke takes his foot off the gas?

These are concerns, but Exxon Mobil isn't a high-growth technology stock trading at over 100 times earnings. In other words, Exxon Mobil isn't for momentum traders looking to make a quick buck. Exxon Mobil is a long-term investment for those with patience. The point here is that Exxon Mobil is a long-term winner.

The chart below compares fundamentals for Exxon Mobil Corporation, BP plc (NYSE:BP), and Chevron Corporation (NYSE:CVX)

XOM BP CVX
Trailing P/E 9.28 6.05 9.19
Forward P/E 11.08 7.45 9.74
Profit Margin 10.86% 6.05% 11.89%
ROE 28.26% 18.32% 19.47%
Operating Cash Flow 50.48B 20.96B 36.14B
Dividend Yield 2.80% 5.00% 3.30%
Short Position 1.00% N/A 1.00%

Let's take a look at some more important numbers prior to forming an opinion on this stock.

T = Technicals Are Strong

Exxon Mobil has been a steady performer over the past three years.

1 Month Year-To-Date 1 Year 3 Year
XOM 1.40% 6.80% 16.76% 65.21%
BP -1.04% 5.82% 18.17% 29.00%
CVX -0.54% 14.24% 25.85% 88.13%

At $91.45, Exxon Mobil is trading above its averages.

50-Day SMA 90.28
200-Day SMA 89.24

E = Equity to Debt Ratio Is Strong

The debt-to-equity ratio for Exxon Mobil is stronger than the industry average of 0.30.

Debt-To-Equity Cash Long-Term Debt
XOM 0.08 6.21B 13.41B
BP 0.35 28.28B 46.42B
CVX 0.10 19.05B 14.14B

E = Earnings Have Been Excellent

Investors who want to see large and steady profits head straight to Exxon Mobil.

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 477,359 310,586 383,221 486,429 482,295
Diluted EPS ($) 8.69 3.98 6.22 8.42 9.70

Looking at the last quarter on a year-over-year basis, revenue declined and earnings improved.

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Quarter Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 124,053 127,363 115,710 115,173 108,807
Diluted EPS ($) 2.00 3.41 2.09 2.20 2.12

Now let's take a look at the next page for the Trends and Conclusion. Is this stock an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY?

Conclusion

This article has been heavy on optimism, but please keep in mind that this pertains to the long haul. A deflationary environment is a possibility in the coming years. If this type of environment presents itself, then Exxon Mobil will have to deal with some challenging times. However, as hinted at several times earlier, Exxon Mobil is a long-term OUTPERFORM.