Top Penny Stocks To Buy For 2018: April 2014

Tuesday, April 29, 2014

Bear of the Day: Agnico Eagle Mines (AEM) - Bear of the Day

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I last wrote about Agnico Eagle Mines (AEM) as a Zacks #5 Rank Strong Sell on April 2, right before they missed earnings estimates by 35%.That was also before I decided to short gold above $1450 an ounce in May to take advantage of what I thought was becoming a bear market for the barbarous relic.Since then, AEM has fallen from $40 a share to as low as $25 in late June when gold fell below $1200. You can access that Bear of the Day report here. Things Could Improve for AEM, But...Here's a summary note from Zacks Research on July 4, with a price target of $29:We are upgrading our recommendation on Agnico-Eagle to Neutral. Profit for the first quarter slid roughly 70% on lower gold prices and production as well as higher cash costs. Adjusted earnings fell well short of the Zacks Consensus Estimate. Revenues fell by double digits, yet beat expectations.The company backed its production guidance for the full year. Agnico-Eagle maintains a solid exploration budget and is reinvesting in its assets to expand output. Moreover, the company s revised life of mine plan is expected to yield significant free cash flows over the next several years.However, any potential delay associated with the development projects may jeopardize its future production. We are also concerned about high operating costs across a number of mines.Gold Miners Still BuriedI proposed as early as February when gold began its breakdown below $1600 that the miners would continue to remain under pressure as analysts had to keep lowering their earnings estimates.Why would they have to keep doing that? To keep up with the falling price of gold.Joining AEM as a Zacks #5 Rank in one of the lowest-ranked industry groups (244 out of 265), are Randgold (GOLD), Royal Gold (RGLD), Yamana Gold (AUY), Anglogold Ashanti (AU), and Allied Nevada (ANV).While many gold worshippers will be searching for a bottom in the s! hiny metal at these levels, don't bet on these miners until their earnings outlooks can get out of the dirt.Their fortunes are tied to the current downtrend and the turn-arounds could take a while.Kevin Cook is a Senior Stock Strategist with Zacks.com

Monday, April 28, 2014

Is The Carlyle Group a Quality Dividend Play?

This column originally appeared exclusively first for Stock Investor Cheat Sheet premium subscribers on February 6th and has been updated to reflect current data changes.

With shares of The Carlyle Group (NYSE:CG) trading at around $30.20, is CG 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

The Carlyle Group operates in four segments: Corporate Private Equity, Real Assets, Global Market Strategies, and Solutions. It has 113 distinct funds, 67 fund of funds vehicles, and it operates in 11 core industries in six continents. It has 33 offices and 1,400 employees. In total, it manages $170 billion. Only a firm with a superb track record has the potential to attract and manage that kind of money.

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The Carlyle Group uses four pillars to drive value in companies and assets it invests in, which are:

Global Scale & Presence Deep Industry Expertise Extensive Network of Operating Executives Wealth of Investment Portfolio Data

The Carlyle Group has delivered impressive results for many years, but where does it all begin? According to Glassdoor.com, employees rate their employer a 3.1 of 5. An above average 58 percent of employees would recommend the company to a friend, and an impressive 83 percent of employees approve of CEO William E. Conway, Jr. All in all, the company culture is strong, which is an excellent sign.

Of course, the biggest selling point for investors is the generous yield, which is currently 10.60 percent. These types of yields are somewhat common throughout the industry, but there is something that makes The Carlyle Group different, which is superb debt management. This will allow The Carlyle Group to weather economic storms better than its peers, and it increases the likelihood of the dividend remaining intact.

In regards to recent news, The Carlyle Group is looking to expand its $28 billion energy business. The Carlyle Group has added a six-person international energy investment team to achieve this goal. Its leader will be the experienced Marcel van Poecke, who stated, "This is a remarkable opportunity to combine my team's international oil and gas investing experience — particularly in Europe and Africa — with Carlyle's established energy platform. With global energy demands inexorably on the rise, we believe we are well positioned to invest and create value for Carlyle's investors."

David Rubenstein, Co-CEO of The Carlyle Group, stated, "Energy, and particularly carbon-related energy, is the single most attractive global area in which to invest today. There is a revolution going on in the U.S. and a need for energy around the world as economies in the emerging markets grow."

Now let's take a look at some numbers. The chart below compares fundamentals for The Carlyle Group, The Blackstone Group L.P. (NYSE:BX), and Kohlberg Kravis Roberts & Co. (NYSE:KKR).

	CG	BX	KKR
Trailing P/E	72.95	37.02	9.70
Forward P/E	8.75	8.01	8.63
Profit Margin	0.68%	7.76%	6.42%
ROE	19.45%	N/A	17.49%
Operating Cash Flow	$2.03 Billion	N/A	$7.35 Billion
Dividend Yield	10.60%	5.40%	5.10%
Short Position	1.00%	1.80%	0.60%

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

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E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for The Carlyle Group is weaker than the industry average of 0.50, but it still qualifies as normal.

	Debt-To-Equity	Cash	Long-Term Debt
CG	1.10	$2.28 Billion	$14.88 Billion
BX	1.18	$1.06 Billion	$13.22 Billion
KKR	0.04	$1.72 Billion	$1.73 Billion

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T = Technicals Are Strong

The Carlyle Group has been a strong performer since its IPO. It hasn't performed as well as its peers year-to-date, but it offers the highest yield.

	1 Month	Year-To-Date	1 Year	3 Year
CG	-1.66%	18.89%	43.82%	N/A
BX	9.22%	46.14%	84.72%	107.0%
KKR	6.95%	43.21%	72.07%	N/A

At $30.20, The Carlyle Group is trading below its 50-day SMA and 100-day SMA, but above its 200-day SMA.

50-Day SMA	31.46
100-Day SMA	30.45
200-Day SMA	27.96

E = Earnings Have Been Strong

Revenue has consistently improved on an annual basis, and the quarterly numbers below indicate impressive earnings growth on a sequential basis.

	2008	2009	2010	2011	2012
Revenue ($)in billions	N/A	1.32	2.80	2.85	2.97
Diluted EPS ($)	N/A	N/A	N/A	N/A	0.41

	12/2011	3/2012	6/2012	9/2012	12/2012
Revenue ($)in millions	831.80	1.11B	248.40	858.50	755.30
Diluted EPS ($)	N/A	N/A	-0.26	0.40	2.33

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?

T = Trends Might Support the Industry

The Carlyle Group is excited about energy right now. Industry experts expect global energy demand to increase over the next few years, which is expected to be driven by economic growth. Industry experts also expect the biggest growth areas to be Europe, Africa, the Americas, and Asia.

While this is a possibility, perhaps industry experts are a bit overambitious. The biggest risk for the industry is deflation, which is a realistic possibility in the coming years. The good news for The Carlyle Group is that it's highly diversified. Unless the global economy completely collapses, there should be growth somewhere.

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Conclusion

The Carlyle Group is a highly diversified firm with a strong business reputation. It's likely to treat its shareholders well in the future, and it should be more resilient than peers if the stock market suffers a steep correction. However, this is only relative as the stock isn't likely to be resilient in weak markets. Generous dividend payments should help ease the pain if this scenario should occur. If the stock market holds its own or continues its ascent, then The Carlyle Group should reward shareholders well via stock appreciation as well as dividends.

Sunday, April 27, 2014

This Is How Nokia Will Help Microsoft

After dragging on for nearly half a year, tech giant Microsoft (MSFT) and Finnish mobile maker Nokia (NOK) finalized their merger. On Friday, April 25, Microsoft announced that it had completed its acquisition of Nokia, including hardware and services. The deal, originally set to be a $7.2 acquisition of all of Nokia's assets, may not have gone as planned, but it was a definite step-up from the waiting game investors were being subjected to.The specifications of the deal

The merger between the two companies had been in the works since September, but hit many a bump on the road. The two major obstacles in the path were the Chinese regulations and the ongoing tax investigation regarding Nokia's Indian plant, operating in Chennai. While China green-lighted the deal easily, the Indian authorities were less obliging. The end result is that the Indian facility was not a part of the acquisitions and will be retained by Nokia. Although Nokia has not announced any conclusive plans, the fact that it offered its 7500+ Indian workers early retirement scheme suggests that the plant may soon be shut down. Also, noticeably absent from the terms of the merger was the "state of the art" South Korean plant in Masan. The deal closed for $7.5 billion. As previously decided, Nokia's former CEO Stephen Elop will be reporting to Microsoft CEO, Satya Nadella and will be appointed executive vice president of Microsoft Devices Group. He will be overseeing the division that, from hence on, will be in charge of expanding the business of Lumia smartphones and tablets, Xbox hardware, Perceptive Pixel (PPI) products and accessories. Microsoft also plans to export more than 25,000 of Nokia's former 90,000 employees.What does it mean for Microsoft's future?

According to a 2013 IDC report, Windows OS holds a 3.3% share in the smartphone market, compared to Google Android's (GOOG) 78.6% and Apple's (AAPL) 15.2%. However, now that this latest acquisition puts the company in charge of its own hardware and software, analysts presume this may change. Like Apple, Microsoft will now have exclusive rights over its devices, software as well as online presence, giving it an advantageous opportunity to further its position. Windows boasts of the fastest growing smartphone market, as well as the fastest growing platform with a 91% YoY gain. The company has continuously turned out award winning devices and has firmly carved its niche in the smart phone world. An IDC report of the fourth quarter of 2013 puts it among the top three smart phone makers of the world. Furthermore, continuing the trend of the Nokia mobile phone business, Microsoft plans to target the mid to lower end of the consumer spectrum in its range of affordable phones. This provides an opportunity of a $50 billion market annually.Concluding thoughts

The company has assured users of delivering new and improved products, and it will work closely with a plethora of hardware partners, operators, developers and retailers, providing platforms, applications and services that enable them to create outstanding devices. With hardware and software falling under the same network, the company has proclaimed that it will achieve an edge over its competitors. The windows phone now seeks to create an integrated ecosystem that will strengthen the platform and enable the growth of demand for Windows devices overall. In such an enticing scenario, many are optimistic that the Windows Phone may prove to be the device that finally challenges Samsung and Apple's hold over the market.

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Saturday, April 26, 2014

Show Us Your Car: '65 Ford Mustang still raises…

LAS VEGAS – The Nebraska license plate on Doug Harsh's Mustang tells the story: "NICE 65''.

His maroon over black interior coupe is indeed one nice 1965 model.

He's had it since he turned 16 in 1970, and while he's added a few more Mustangs to his collection over the years, this is the one that the cattle farmer and rancher came of age in and raised a family with.

He earned the car, and he has never let go of it.

"When I was 16 years old, I had to work two summers at $1 an hour driving a tractor and irrigating so that I'd have enough money to buy it,'' he says.

Harsh initially had his eye on the fastback version, but that was a bit pricey for a farm boy on a budget in Bartley, Neb. So when this sharp, clean coupe became available used, he jumped on it.

"I figured if my dad was going to let me have a chance to buy it, I better grab it when I could because I always wanted a Mustang,'' he says. "I've had it ever since.''

Harsh's car is mostly stock, with a 289 cubic inch engine and four barrel carburetor. It has 122,000 miles and the original three-on-the-floor manual transmission.

The car still has the original black vinyl seats and black carpet, with normal wear revealing a patina of originality that is highly prized in today's collector market.

He put a small lift kit on the car, better to handle gravel and dirt farm roads and lending an aggressive look. While he still has the original steel wheels and spinner hubcaps, he drives the car on a set of brushed alloy wheels that look period correct.

Harsh was showing the car off at Las Vegas Speedway, where the Mustang Owners Club and Ford marked the 50th anniversary of the introduction of the car that captured the hearts of many of his generation.

He drove the car from Nebraska to Las Vegas last week, attracting smiles and thumbs up from other drivers.

"The most fun thing about a Mustang is stepping on the gas and going. That's the most fun there is. Listen to that exhaust and listen ! to it go.''

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When you love a car model, one often is not enough.

Harsh has three more Mustangs at home – a 1970 Mach 1, a 2005 Saleen and a 2008 Shelby Mustang GT500KR. That Shelby is a 662 hp performance monster that Car and Driver magazine wrote "looks and sounds as badass as anything on the road.''

"I've got four boys; I had to have one Mustang for each one so we didn't have any argument,'' Harsh says.

Thursday, April 24, 2014

Will Europe's Debt Mess Knock Out German Stocks' Rise?

Europe's economy remains stuck in the vise of recession, but Germany's stocks finally have started to pick up after a lackluster start to the year. The DAX (DAXINDICES: ^DAX ) gained another 1.1% this week, bringing its rise over the past three months to more than 11.8% to outstrip its year-to-date gains. Can investors keep beating Europe's crunch in the region's top economy, or is the German market bound to follow in its neighbors' footsteps?

Europe stuck in neutral
Bad news came out this past week as a traditional reading of German investor confidence declined by more than 2 percentage points. The ZEW Indicator is still hanging well above its historical average of a 23.7 reading, but has fallen off the rising pace set through the end of last year into the beginning of 2013. The reading came below economist expectations that had predicted a rise out of the ZEW in July. Still, the ZEW's mark for Germany is far better than its reading for the eurozone as a whole, which hangs at an unbearably low negative 74.7 points.

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The rest of Europe is doing Germany's economy no favors, however. Debt-plagued Greece has stumbled on through austerity, and while Germany's finance minister praised the country's efforts, his warnings to the country to cease petitioning for debt write-off has spiked a sharp divide between fiscally resilient Germany and its less fortunate peers in the eurozone. Portugal's in much the same shape as Greece, as the country faces a Sunday deadline to decide the fate of its bailout measures.

For Germany's economy, the ongoing swamp of the eurozone will weigh on the nation's exports -- and export-reliant companies -- as it has already. That's no easy hurdle to jump for such a trade-reliant economy as this, and for Germany's top international businesses like industrial conglomerate Siemens (NYSE: SI ) , European business will grow all the more troubling.

Of course, it's not just Europe that's posing a problem to Siemens. The company self-reported allegations that it engaged in railway price fixing in Brazil alongside several other multinationals from Europe and Japan. It's a bad time for all of these companies, considering that a massive railway contract in Brazil is set to come up for bidding in August, one that the Brazilian government estimates at a cost of around $16 billion.

It's not the first time that Siemens has been involved in such activities: The company was embroiled in a European corruption affair in 2006 that ultimately cost more than $260 million in court fines. Investors can only hope these Brazilian accusations don't end up costing Siemens too much -- and that they don't jeopardize the company's ambitions in one of the world's emerging market star economies, particularly as Siemens's stock has been stuck in the red in 2013.

Deutsche Lufthansa (NASDAQOTH: DLAKY ) performed better this week with a 1.5% gain as Germany's airline picked up an upgrade from sell to neutral from Goldman Sachs. It's still a tough time for airlines across the industry due to high fuel costs, and JP Morgan didn't share Goldman's sentiments when it downgraded the stock later in the week, although like its fellow bank, JP Morgan holds the stock at a neutral rank. Low-cost airlines like Ryanair have pushed hard into the cost-conscious European market, and Lufthansa has admitted as much by announcing earlier this year that it could explore the option of a low-cost base in Asia to compensate.

For investors of Lufthansa, Siemens, and other leading German stocks, it's impossible to overlook the shadow of the eurozone's debt woes looming large over the German economy. Europe's hardly the only region in a bind: Many global regions are still stuck in neutral. However, their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies that could take off when the global economy gains steam. Click here to read the full report.

Wednesday, April 23, 2014

5 Stocks Set to Soar on Bullish Earnings

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.

>>Side-Step the Selling With These 5 Big Trades

This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.

That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.

Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if The Street doesn't like the numbers or guidance.

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If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

Swift Transportation

My first earnings short-squeeze trade idea is multi-faceted transportation services player Swift Transportation (SWFT), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Swift Transportation to report revenue $1.02 billion on earnings of 12 cents per share.

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Just recently, RW Baird suggested that long-term investors use the weakness in shares of Swift Transportation to add to positions, citing positive forward-looking commentary from the company, accelerating industry rate growth and unchanged investment thesis. Baird has the stock rated as outperform with a $28 price target per share.

The current short interest as a percentage of the float for Swift Transportation is very high at 18.1%. That means that out of the 102.81 million shares in the tradable float, 18.68 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of SWFT could easily spike sharply higher post-earnings as the bears rush to cover some of their positions.

From a technical perspective, SWFT is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has recently crossed back above its 50-day moving average and it's quickly moving within range of triggering a big breakout trade post-earnings.

If you're bullish on SWFT, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $25.82 to its 52-week high at $26.71 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 2.17 million shares. If that breakout hits post-earnings, then SWFT will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $30 to $35 a share.

I would simply avoid SWFT or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day moving average of $24.58 a share with high volume. If we get that move, then SWFT will set up to re-test or possibly take out its next major support levels at $22.47 to its 200-day moving average of $21.37 a share.

Sirius XM

Another potential earnings short-squeeze play is satellite radio services provider Sirius XM (SIRI), which is set to release its numbers on Thursday before the market open. Wall Street analysts, on average, expect Sirius XM to report revenue $994.60 million on earnings of 2 cents per share.

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The current short interest as a percentage of the float for Sirius XM is pretty high at 8.5%. That means that out of the 2.89 billion shares in the tradable float, 242.23 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 8%, or by about 18 million shares. If the bears get caught pressing their bets into a bullish quarter, then shares of SIRI could easily rip sharply higher post-earnings as the shorts jump to cover some of their bets.

From a technical perspective, SIRI is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last four months, with shares sliding lower from its high of $3.89 to its recent low of $3 a share. During that downtrend, shares of SIRI have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of SIRI have now started to find some buying interest around some previous support at $3.04 a share.

If you're in the bull camp on SIRI, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some key near-term overhead resistance levels at $3.24 to $3.40 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 68.14 million shares. If that breakout triggers post-earnings, then SIRI will set up to re-test or possibly take out its next major overhead resistance levels at $$3.63 to $3.89 a share. Any high-volume move above those levels will then give SIRI a chance to tag its 52-week high at $4.18 a share.

I would simply avoid SIRI or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 52-week low of $3 a share with high volume. If we get that move, then SIRI will set up to enter new 52-week-low territory, which is bearish technical price action. Some possible downside targets off that move are $2.50 to $2.33 a share.

Synaptics

Another potential earnings short-squeeze candidate is custom-designed human interface solutions developer and supplier Synaptics (SYNA), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Synaptics to report revenue of $192.03 million on earnings of 57 cents per share.

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The current short interest as a percentage of the float for Synaptics is extremely high at 28.6%. That means that out of the 34.56 million shares in the tradable float, 10.01 million shares are sold short by the bears. This is a monster short interest on a stock with a relatively low tradable float. Any bullish earnings news could easily set off a large short-squeeze for shares of SYNA post-earnings.

From a technical perspective, Synaptics is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $55.46 to its intraday high of $66.94 a share. During that uptrend, shares of SYNA have been consistently making higher lows and higher highs, which is bullish technical price action. That move is quickly pushing shares of SYNA within range of triggering a major breakout trade post-earnings.

If you're bullish on SYNA, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 52-week high at $67.11 a share (or Thursday's intraday high if greater) with high volume. Look for volume on that move that hits near or above its three-month average action of 1.35 million shares. If that breakout starts post-earnings, then SYNA will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $75 to $80 a share, or even $85 a share.

I would avoid SYNA or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $63 to its 50-day moving average of $61.61 a share with high volume. If we get that move, then SYNA will set up to re-test or possibly take out its next major support levels at $55.46 to $53 a share to its 200-day moving average of $50.67 a share.

Deckers Outdoor

Another earnings short-squeeze prospect is Deckers Outdoor (DECK), a footwear and apparel developer for high-performance outdoor activities and everyday casual lifestyle use, which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Deckers Outdoor to report revenue of $282.13 million on a loss of 15 cents per share.

Just recently, Piper Jaffray said it remains a buyer of Deckers Outdoor shares after spending two days with management. Piper believes its first quarter estimates could prove conservative and it expects shares to move higher as the company's growth recovers this year. The firm has an overweight rating on the stock with a $96 per share price target.

The current short interest as a percentage of the float for Deckers Outdoor is extremely high at 19.9%. That means that out of the 33.59 million shares in the tradable float, 6.70 million shares are sold short by the bears. This is a big short interest on a stock with a relatively low tradable float. This is the perfect recipe for a big short-covering rally post-earnings if Deckers Outdoor can produce the earnings news the bulls are looking for.

From a technical perspective, DECK is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways and consolidating for the last month, with shares moving between $75 on the downside and $82.10 on the upside. A high-volume move above the upper-end of its recent sideways trading chat pattern could trigger a big breakout trade for shares of DECK post-earnings.

If you're bullish on DECK, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some key near-term overhead resistance levels at $79.80 to $82.10 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.11 million shares. If that breakout gets underway post-earnings, then DECK will set up to re-test or possibly take out its next major overhead resistance levels at $87.86 to its 52-week high at $90.09 a share. Any high-volume move above $90.09 will then give DECK a chance to tag $95 to $100 a share.

I would simply avoid DECK or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $75.62 to $75.27 a share with high volume. If we get that move, then DECK will set up to re-test or possibly take out its next major support levels $72.51 to its 200-day moving average at $71.36 a share. Any high-volume move below those levels will then give DECK a chance to re-test or possibly take out its next major support level at $66.41 a share.

Gigamon

My final earnings short-squeeze play is network traffic intelligence solutions developer Gigamon (GIMO), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Gigamon to report revenue of $31.30 million on a loss of 7 cents per share.

Just recently, DA Davidson upgraded shares of Gigamon to buy from neutral based on valuation, but it also recently lowered its first-quarter revenue outlook based on the fallout of a large deal with an existing customer.

The current short interest as a percentage of the float for Gigamon is pretty high at 9.4%. That means that out of the 17.19 million shares in the tradable float, 1.43 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 6%, or by about 81,000 shares. If the bears get caught pressing their bets into a strong quarter, then shares of GIMO could easily soar sharply higher post-earnings as the shorts rush to cover some of their positions.

From a technical perspective, GIMO is currently trending well below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last month, with shares plunging sharply lower from its high of $36.75 to its recent low of $14.75 a share. During that downtrend, shares of GIMO have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of GIMO have now entered extremely oversold territory, since its current relative strength index reading is 19.66. Any bullish earnings news could spark a sharp short-covering rally for shares GIMO off these extremely oversold levels.

If you're in the bull camp on GIMO, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance at $16 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 611,629 shares. If that breakout hits, then GIMO will set up to re-test or possibly take out its next major overhead resistance levels at $18 to its recent gap-down-day high of around $20 a share. Any high-volume move above $20 will then give GIMO a chance to do some gap filling.

I would avoid GIMO or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below both its 52-week low at $14.75 a share with high volume. If we get that move, then GIMO will set up to enter new all-time-low territory, which is bearish technical price action. Some possible downside targets off that move are $12 to $11 a share.

To see more potential earnings short squeeze plays, check out the Earnings Short-Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Tuesday, April 22, 2014

Buy Bonds With Moving Parts

For the last few years there has been an inner voice telling bondholders "rates have nowhere to go but up." That's why skittish fixed-income investors stampeded into adjustable-rate-bond funds last spring when interest rates bumped up. But there is a smarter strategy than selling in panic or merely sitting on the sidelines.

You want bonds with moving parts. What are they? They're bonds that have some feature that adjusts with rates or resets at some future point in time. Examples are bonds whose yield changes with the slope of the yield curve, Libor-based bonds and bonds whose coupons adjust to a specific Treasury yield. Allocate 10% to 15% of your portfolio to them–and no more. They're all from financial institutions, and too much exposure to any sector is never a good thing.

Citigroup Citigroup has an attractive yield-curve steepener (implying that long-term Treasury yields remain higher than short-term yields). Buy the Citigroup 10.50% Coupon Bond Maturing Feb. 19, 2034 (CUSIP: 1730T0G78), callable Feb. 19, 2015 at par. The impressive 10.50% coupon is a "teaser" rate that changes in February 2016. This gives you nearly two years to bank that double-digit coupon. When the 10.50% coupon resets in 2016, the formula for computing the new coupon is: 6 x (30-year Treasury Swap rate)–(5-year Treasury Swap rate)–25 basis points.

Institutional investors can access these rates on data providers (like the Bloomberg terminals), but an easier way to get a bead on the new rate would be to substitute the 30-year Treasury (now 3.65%) and the 5-year rate (now 1.7%) instead of the swap rates in the formula. This bond, priced at 99.12, has a floor of 0%, and payments and resets are quarterly.

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The Bank of Nova Scotia Bank of Nova Scotia, rated A+, AA–, also offers curve steepeners with high teaser yields. The Bank of Nova Scotia 10.50% Coupon Bond (CUSIP: 064159DF0) is callable Jan. 30, 2015 at par and is priced at 97. The terms differ from the Citigroup bond. This issue resets January 2015 and will yield 4 x (the 30-year Treasury swap)–(the 2-year Treasury swap)–25 basis points.

Beware: Some of these bonds with moving parts are small issues with little liquidity, and that may restrict a quick and easy exit. Before buying, search InvestinginBonds.com by CUSIP to verify that your bonds trade daily or at least weekly.

For nervous investors I recommend Libor floaters as a security blanket to calm your interest rate angst. Lloyds Bank Plc. rated A2, A has bonds with a minimum coupon rate of 2%. If three-month Libor plus 1.25% exceeds the 2% floor, then that's the new coupon. Lloyds bonds are shorties, maturing July 20, 2017 (CUSIP: 5394E8BC2) and priced at 100.

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Monday, April 21, 2014

America's Secret Weapon Against Too-Big-to-Fail

On this day in economic and business history...

President Benjamin Harrison signed the Sherman Antitrust Act into law on July 2, 1890. Its lasting impact on American industry makes it the most memorable element of an otherwise forgettable presidency. But what is the Sherman Antitrust Act and how has it affected the relationship between government and industry in the United States? Let's take a quick look at the Act's major provisions:

Any unreasonable effort to restrain interstate trade is made illegal. Monopolistic interstate commercial activities are classified as felonies.

Pretty simple, right? The complete Act's sweeping prohibitions and its subsequent explanation of terms and punishments take up fewer than 1,000 words. This short bill (about the length of this article) has nevertheless been used to dismantle some of the world's largest companies. It was designed as a way to remedy competitive imbalances brought on by cartel agreements or other artificial means a business might use to sustain its market position. The Supreme Court further defined its purpose in a 1993 case as "not to protect businesses from the working of the market; [but] to protect the public from the failure of the market."

Ironically, the Act did not break up any monopolistic or cartelized businesses in an era known by its robber barons for over a decade. Instead, it was used as a legal cudgel against labor unions, initially defined as "illegal combinations" under the scope of the Act. It was nearly destroyed as an anti-monopolistic weapon five years after its passage when the Supreme Court ruled that a sugar refining trust did not violate the Act despite controlling 98% of all sugar refining in the country.

Theodore Roosevelt's ascent to the presidency following President William McKinley's assassination revived the Sherman Antitrust Act from near-death, and it was finally used to dismantle a company in 1904. That year, the Northern Securities railroad trust -- controlled by J.P. Morgan and John D. Rockefeller, among others -- was found to control an unreasonably large part of American railroad traffic, and was broken back up into its component railroads. This reestablished the Act as a potent weapon against monopolies, and it was used many times over the following century against major companies, if not always successfully. Here are some of the landmark decisions issued under an interpretation of the Sherman Antitrust Act, with brief explanations provided below (you can also click on their links for more information):

Standard Oil Co. of New Jersey v. United States, 1911. United States v. Alcoa (NYSE: AA ) , 1945. United States v. AT&T (NYSE: T ) , 1982. United States v. United States Steel (NYSE: X ) , 1920. United States v. Microsoft (NASDAQ: MSFT ) , 2001. United States v. American Tobacco, 1911.

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The Standard Oil breakup in 1911 is the most important turning point of the Act's early history. It set a standard for "reasonableness" that has since been applied many times to determine what made a monopoly truly anticompetitive. Between this decision and the one that broke the American Tobacco trust several weeks later, the Supreme Court of 1911 is responsible for creating three long-tenured members of the Dow Jones Industrial Average (DJINDICES: ^DJI ) -- two of which (both oil companies) are still on the index today.

The Sherman Act proved less useful against metal smelters, as both Alcoa and U.S. Steel survived efforts to break them up by using similar reasoning, which reduced the scope of the Act to considering competitive methods rather than size alone. Despite the reduced importance of size considerations, AT&T's massive reach was too much to ignore by the time it was finally broken up in 1982. Thanks to that split, we can add two more companies to the number of those Dow components created from a court's divestiture order. The failure of the government's antitrust case against Microsoft was extremely controversial at the time, as the company had a number of defenders and detractors who each saw transparent political wrangling throughout its move through the courts. Microsoft was actually ordered to split in mid-2000, but this was later overturned under somewhat dubious reasoning. At any rate, it did little to settle the issue of the Sherman Act's applicability to software companies.

Today's globalized business environment makes it somewhat less likely that the Sherman Antitrust Act will be used against any major American companies. However, it's not beyond the realm of possibility, provided lawmakers and regulators can muster the conviction necessary to push back against today's too-big-to-fail monopolies. What companies do you think might come under the crosshairs of a Sherman Act-wielding Department of Justice? Will there be as much of a reason to break up businesses as technology continues to make it easier to disrupt so many long-standing business models?

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Sunday, April 20, 2014

New CFO of American Express Gets a Healthy Pay Package

As noted in a recent Fool news article, American Express (NYSE: AXP ) has named Jeffrey Campbell as its new executive vice president and CFO, effective later this summer. In a current SEC filing, American Express detailed Campbell's pay package, which could total as much as $20.5 million when fully vested, including salary, incentives, grant awards, and restricted stock and options.

As per the SEC filing, Campbell's compensation will include a $1 million base salary and participation in American Express' annual incentive program with a "guidance value" of $3.5 million, though that is pro-rated for 2013, in addition to its long-term incentive program valued at $2.5 million in restricted stock and options. Campbell will receive his first long-term incentive award July 31 and will be fully vested by Q1 of 2016.

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An American Express "portfolio grant" is also part of Campbell's compensation package. The grant, worth as much as $1.5 million, will be awarded upon hire and will be fully vested in February 2016.

In addition to the salary, incentive, and grant, Campbell will also be given "sign-on" compensation, including a portfolio grant vesting in February 2015 and valued at $3 million, and a sign-on grant of restricted stock and options valued at $5 million when received, vesting in three years. A sign-on cash award of $4 million, payable in two annual installments beginning on Campbell's first anniversary, and participation in American Express' executive benefit plans round out his compensation package.

Saturday, April 19, 2014

5 Most Common 401(k) Plan Red Flags

There are five red flags defined contribution plan sponsors should watch for when evaluating their plan performance, according to research by Judy Diamond Associates, who provides sales prospecting and plan analysis tools for benefits brokers, financial advisors, plan providers and carriers serving the employee benefits and retirement markets.

The flags indicate whether a plan is underperforming, is poorly designed or has reached certain thresholds that suggest it may need new services.

“Identifying the most common problems and challenges facing the almost 600,000 401(k) plans nationwide can empower financial advisors to address the concerns that are keeping their clients up at night,” said Eric Ryles, managing director of Judy Diamond Associates. “In that way, our subscribers are able to better prepare their clients for the future and cement their own status as a consultant and valued partner, rather than ‘just’ a 401(k) vendor.”

Judy Diamond Associates based its research on the most recent 401(k) plan disclosure documents released by the Department of Labor.

Red flags are key indicators of a plan’s general health and are valuable as a sales prospect for an advisor or other provider.

The five most common 401(k) plan red flags (in reverse order) are:

401(k) red flag #5: Corrective distributions issued

5. Corrective distributions issued: Judy Diamond found 63,349 plans that fell into this category. Plans that issue corrective distributions may be experiencing flaws in the way their plans were designed or rolled out. Participation rates and employee contribution levels at these plans may be lacking and they may be receptive to better advice, education and products from new providers.

401(k) red flag #4: Reduced employer contributions

4. Reduced employer contributions: Judy Diamond found 63,694 plans that reduced their contributions. Plans that reduce their employer contributions may benefit from better plan design.

401(k) red flag #3: Plan recently terminated

3. Plan recently terminated: Judy Diamond found 68,222 plans that fell into this category. Recently terminated plans may offer advisors opportunities to roll participants over into individual retirement accounts.

401(k) red flag #2: High average account balance

2. High average account balance: Judy Diamond found 109,287 401(k) plans that fell into this category. Having a high average account balance per participant indicates that there may be participants who are nearing retirement and approaching the need for new, individual financial advice.

1. Bottom 10% in employer contributions

1. Bottom 10% in employer contributions: In its research Judy Diamond identified 184,442 plans that fall into this category. The bottom 10% is calculated based on the value of the contribution, not the number of plans offering each value. That means that a clustering of plans around certain values, especially zero, can result in more than 10% of plans offering employer contributions ranked in the bottom 10% by value.

-- Related ThinkAdvisor stories:

Friday, April 18, 2014

Look beyond financial planning schools to find the next superstar

Advisers, hiring, Next Generation, financial planning

Bloomberg News

Advisory firms committed to hiring the next generation of financial advisers aren't limiting themselves to the narrow pool of financial planning degree candidates.

ClearPath Capital Partners, which recently hired five soon-to-be college graduates, talks to anyone who is curious about the industry. One hire last year was a philosophy major who speaks Portuguese, Spanish and English. Two new hires are earning degrees in economics.

"Some of the best financial advisers are those who didn't think of this as a career path," said Paul Boyd, managing partner of ClearPath. "Our clients are typically entrepreneurs and innovators, and we look for people who are passionate."

In fact, several financial advice industry leaders emerged from other fields. For example, Michael Kitces, partner and director of research for Pinnacle Advisory Group and publisher of The Kitces Report and his own blog, Nerd's Eye View, was a psychology major and theater minor in his undergraduate years. Wade Pfau, professor of retirement income at the American College of Financial Services, received his doctorate in economics from Princeton University before realizing the effect he could have on the financial advice field.

Mr. Boyd himself was headed toward a degree in planetary science before he switched course toward a business degree.

Troy Larson, a co-founder of ClearPath, and the firm's human resource coordinator, said he looks for people who have experience doing something over a period of time, be that athletics, playing a musical instrument or something else. That helps the firm avoid people who may seek instant gratification and leads to people who understand the need to work hard over a period of time, Mr. Larson said.

Dynamic communication skills also are very important, he said.

Additionally, candidates whose parents are entrepreneurs get a bump-up because they are more likely to understand the motivations of the firm's many entrepreneurial clients, Mr. Larson said.

Caleb Brown, co-founder of New Planner Recruiting, said it's smart for advisers to open up their minds to candidates outside of more-traditional financial planning graduates, especially since the total number of students graduating from such programs doesn't seem to be growing.

Although more financial planning programs are starting at different universities and colleges, most are not getting a critical mass of students, with about 100 students enrolled in an average-size program, he said. By contrast, hundreds of students graduate from each school each semester in accounting, economics and finance programs.

Mr. Brown, whose firm finds entry-level hires for registered investment adviser firms, acknowledges t! hat hiring financial planning majors does probably lower the risk of a new employee not understanding or even liking the financial advice business.

"But that doesn't mean the candidate will be better skill-wise," he said.

Mr. Brown has helped advisory firms hire graduates with degrees in engineering, accounting, psychology, general business, marketing and finance.

While successful advisers certainly need to know a certain amount of industry-specific information, it's even more important for an adviser to have strong communications and relationship skills, he said.

Cheryl Holland, president of Abacus Planning Group, said she doesn't want to hire only financial planning students, even though she believes they are the most likely candidates to remain with the firm long term. She values the diversity "of training, thought and background" that graduates of other disciplines add to the firm.

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Columbia, S.C.-based Abacus Planning also doesn't have a financial planning program located nearby to draw from, so it needs to "be more creative," she said. It's also important to look for candidates who have a reason to want a job in your particular city and who fit the culture of the firm, she said.

A math major from Bangladesh who is graduating from Bryn Mawr College in Pennsylvania is one of her firm's most recent hires, she said.

"We are trying to create superstars, as opposed to attract superstars," Ms. Holland said. "The key to all of them is that they have a passion for financial planning, because if you have that joy, you just can't teach that."

Thursday, April 17, 2014

Why Xerox Is Poised to Keep Climbing

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, copier maker and business services provider Xerox (NYSE: XRX ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Xerox and see what CAPS investors are saying about the stock right now.

Xerox facts

Headquarters (founded)	Norwalk, Conn. (1906)
Market Cap	$10.8 billion
Industry	Office electronics
Trailing-12-Month Revenue	$22.2 billion
Management	Chairman/CEO Ursula Burns CFO Kathryn Mikells
Return on Equity (average, past 3 years)	9.4%
Cash/Debt	$993.0 million / $8.5 billion
Dividend Yield	2.6%
Competitors	Accenture Canon Hewlett-Packard

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 87% of the 4,435 members who have rated Xerox believe the stock will outperform the S&P 500 going forward.

Earlier today, one of those Fools, All-Star dreamjob, tapped the stock as a particularly timely bargain opportunity:

Xerox looks very affordable right now at $8.80. Strong cash flows, respectable [cash return on invested capital] (would like a little higher), manageable debt, growing earnings and book value. Cash yield at almost 15% makes this cheap in my eyes.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its four-star rating, Xerox may not be your top choice.

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Wednesday, April 16, 2014

Is Small Cap Restaurant Stock Zoe's Kitchen (ZOES) Really That Tasty? NDLS, PBPB, BLMN

At the end of last week, small cap restaurant stock Zoe's Kitchen Inc (NYSE: ZOES) had its IPO with some pundits saying its potentially the next Chipotle Mexican Grill, Inc (NYSE: CMG), meaning its worth taking a closer look at the stock along with Noodles & Co (NASDAQ: NDLS), Potbelly Corp (NASDAQ: PBPB) and Bloomin' Brands Inc (NASDAQ: BLMN) which are all restaurant stocks that also had relatively recent IPOs.

What is Zoe's Kitchen Inc?

Founded in 1995 in Birmingham, Alabama by Zoë and Marcus Cassimus, small cap Zoe's Kitchen is a fast casual restaurant concept serving a distinct menu of fresh, wholesome, Mediterranean-inspired dishes (e.g. Greek salads and pita pizzas) delivered with Southern Hospitality. With more than 110 locations in 15 states across the US, Zoës Kitchen aims to deliver "goodness to its customers by providing simple, tasty and fresh Mediterranean meals, inspired by family recipes, and made from scratch daily."

As for potential small cap restaurant IPO benchmarks, Noodles & Co was founded in 1995 as a fast-casual restaurant chain that serves classic noodle and pasta dishes from around the world with 380 locations system-wide in 29 states and the District of Columbia at the end of 2013; Potbelly Corp started in 1977 as a small antique store on Lincoln Avenue in Chicago and now owns and operates over 300 shops in the US and the District of Columbia plus its franchisees operate over 20 shops domestically and in the Middle East; and Bloomin' Brands Inc who brands include Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse & Wine Bar and Roy's – making it one of world's largest casual dining companies with more than 1,500 restaurants throughout 48 states, Puerto Rico, Guam and 21 countries.

What You Need to Know or Be Warned About Zoe's Kitchen Inc

Last Friday, Zoe's Kitchen offered 5.8 million shares at $15 a share, the high end of its expected $13 to $15 range, to bring in around $87.5 million (which will help to pay debt) with shares closing at $24.72. The company is backed by private equity firm Brentwood Associates, which owned about 71% before the IPO with this percentage dropping to about 46% afterwards.

According to the prospectus (all of ZOES' SEC filings can be found here), company-owned restaurants have generated 16 consecutive fiscal quarters of positive comparable restaurant sales growth due primarily to increases in customer traffic while for 2013, the company had a balanced mix of approximately 60% lunch sales and 40% dinner sales (excluding catering) with the catering business representing approximately 17% of revenue, in each case. The prospectus then noted some tasty tidbits such as:

We believe our combination of menu offerings, ambience and location is designed to appeal to educated and affluent women, who along with their families, represent approximately 70% of our customer visits. Our female customers generally lead active lifestyles, have an average annual household income of over $100,000 and a majority of them are college educated. We believe this demographic represents a highly-desirable customer base with strong influence on a family's mealtime decision-making and are strong brand advocates.

Plus:

Additionally, we believe our attractive demographic mix, high repeat visit rate and our ability to draw an average of approximately 2,500 customers to each of our restaurants per week makes us a desirable tenant to landlords and developers of lifestyle centers seeking to drive traffic to complementary retail businesses.

However and while Zoe's Kitchen has reported revenues of $116,385M (2013), $79,724M (2012) and $50,177M (2011) for the past three years, the company has also experienced net losses of $3.7M (2013), $0.3M (2012) and $0.03M (2011). In 2013, the company opened 27 restaurants and planned to open 28 to 30 restaurants for this year and more for each of the next several years. The prospectus also pointed out that:

Typically, our new restaurants have stabilized sales after approximately 12 to 24 weeks of operation, at which time the restaurant's sales typically begin to grow on a consistent basis.

Share Performance: Zoe's Kitchen Inc vs. NDLS, PBPB, BLMN & CMG

On Monday, small cap Zoe's Kitchen rose 0.40% to $25.20 (ZOES has a 3 day or so trading range of $23.73 to $27.74 a share) for a market cap of $463.55 million. Here is a look at the long term performance of recent restaurant IPOs Noodles & Co, Potbelly Corp and Bloomin' Brands plus Chipotle Mexican Grill:

As you can see from the above charts, its been a more mixed performance over the past year but Chipotle Mexican Grill has been a relatively steady performer.

Finally, here is a look at the latest technical charts for Noodles & Co, Potbelly Corp,Bloomin' Brands and Chipotle Mexican Grill:

The Bottom Line. Given the mixed performance of recent small cap restaurant IPOs, investors who have not actually eaten at Zoe's Kitchen might want to be more cautious. Nevertheless, there are some tasty things to like about the stock.

Tuesday, April 15, 2014

Voices: Greatest Generation's tax lessons

Just as classics, as Mark Twain said, are great books that people praise but don't read, members of the Greatest Generation are heroes who people praise but don't emulate – at least as far as debt and taxes go.

The federal debt, as a percentage of gross domestic product, hit an all-time high of 118.9% in 1946 because of government spending on World War II. It's now about 102% and projected to grow higher.

To address the debt, the Greatest Generation – those who grew up during the Great Depression and won World War II – did two things when they returned. They supported decreased federal spending, primarily defense, and higher taxes.

Reducing defense spending was, a function of the end of the war. Nevertheless, the Greatest Generation had less government than we do: No Department of Health and Human Services, no Housing and Urban Development, no departments of Transportation, Energy, Education, Veterans Affairs, Homeland Security.

And they paid more in taxes. The maximum tax rate in 1945 was 94% on taxable income over $200,000. Adjusted for inflation, that's $2.6 million. The top tax rate fell to 82.1% in 1948 but rose again to 91% in 1951 and stayed there through 1963.

By 1981, the debt had fallen to 31.7% of GDP – in part because the economy had grown an average 3.7% a year from 1951 through 1981 despite high tax rates. (It has grown at a 2.8% annual rate from 1981 through 2013.)

Members of the Greatest Generation also were willing to compromise. While no one likes higher taxes, they did so when national circumstances made it necessary, such as when President Johnson levied a 10% surtax to fund the Vietnam War. He also agreed, reluctantly, to a 10% reduction in discretionary spending.

By the time President George H.W. Bush agreed to higher taxes because he felt it was the right thing to do, given the nation's finances, he couldn't get Congress to agree on reducing spending. He signed the tax increase anyway, and paid for it with his job in 1992.

To! day, members of Congress willing to give up a something to get something for the greater good are rare. In part, that's the fault of the people who elect them.

The Greatest Generation also had a sense of shared sacrifice. America has fought two wars since 2000, and most of us haven't paid an extra dime in taxes for the wars or for the care of the small percentage of the population who did the fighting. Most Americans – particularly wealthy people who have benefited most from tax cuts – feel overtaxed, according to a Gallup poll released Monday.

Unfortunately, cutting government spending involves sacrifice, an unpleasant notion. The most popular suggestion for cutting spending is foreign aid, yet it accounts for just 1% of the federal budget.

Popular programs such as health care, income for the elderly (such as Social Security), and defense, account for 73% of the budget. All other government functions combined total $908 billion. Most likely, only a combination of cuts to the most popular programs and tax increases will bring the budget closer to balance.

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The Greatest Generation isn't entirely blameless in our nation's fiscal woes. The government's involvement in income and health care for the elderly was largely their idea. Having lived through the Great Depression, the Greatest Generation realized that anyone could fall upon hard times.

And having lived through World War II, they knew that the world is a dangerous place, and that the cost of a large military is an enormous debt to the men and women who do the fighting, bleeding and dying. What we can learn from the Greatest Generation on Tax Day is that there are far worse things in the world than making compromises and sharing sacrifices.

Sunday, April 13, 2014

Top 10 Industrial Disributor Stocks To Invest In Right Now

After a blistering rise in 2012, Bank of America's (NYSE: BAC ) stock price has lagged the market in 2013 and took a beating after reporting�disappointing first-quarter results.

Investors are beginning to voice concerns over the bank's ability to grow revenue in the long term. However, despite current weakness, the bank may be well positioned to deploy its stronger balance sheet in the future.

In this video, Motley Fool banking analyst Matt Koppenheffer tells investors that taking a short-term view of the bank's books may be small-"f" foolish.

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Top 10 Industrial Disributor Stocks To Invest In Right Now: MSCI Inc (MSCI)

MSCI Inc., together with its subsidiaries, provides a suite of performance, risk management, and corporate governance products and services worldwide. The company operates in two segments, Performance and Risk, and Governance. The Performance and Risk segment offers investment decision support tools, including equity indices, real estate indices and benchmarks, portfolio risk and performance analytics, and credit analytics, as well as environmental, social, and governance products. Its products are used in various investment processes, including portfolio construction and rebalancing, performance benchmarking and attribution, risk management and analysis, regulatory and client reporting, index-linked investment product creation, asset allocation, social responsibility assessment, environmental stewardship, investment manager selection, and investment research. The Governance segment provides corporate governance products and services, and specialized financial research and analysis services to institutional investors and corporations. It facilitates the voting of proxies by institutional investors and provides in-depth research and analysis to help inform voting decisions and identify issuer-specific risk; and offers global equity security coverage, and integrated products and services, including proxy voting, policy creation, research, vote recommendations, vote execution, post-vote disclosure, and reporting and analytical tools. This segment also provides class action monitoring and claims filing services to aid institutional investors in the recovery of funds from securities class action settlements. The company offers its products and services under the MSCI, MSCI ESG, Barra, RiskMetrics, ISS, FEA, IPD, and CFRA brands. Its clients include asset owners, institutional and retail asset managers, and financial intermediaries. The company was founded in 1998 and is headquartered in New York, New York.

Advisors' Opinion:

[By Benjamin Shepherd]
The iShares MSCI Emerging Markets Index (NYSE: EEM) seems to have halted its slide.� The index bottomed out year-to-date on February 3, when it was down 11.2 percent. Since then, it has gained 1.5 percent, but bargains in the emerging markets still abound.

As I discussed in �� Plan, Not a Panic��two weeks ago, emerging markets are in much better economic shape today than they were even just a few years ago, much less during the currency crisis that peaked in 1998. Foreign exchange reserves are generally much more robust, budget deficits are narrower if they exist at all and, so far at least, the full-blown currency war that many were predicting last year isn�� likely to breakout.

With rationality finally setting in, this is a terrific time to do a little bargain hunting in the emerging markets.

The most obvious play here is the iShares MSCI Emerging Markets Index itself. Covering China (18.8 percent of assets), South Korea (16 percent), Taiwan (12 percent) and Brazil (10.2 percent) with smaller positions spanning Asia and Europe, the fund is most exposed to any shift in sentiment.

The fund is currently trading at just 10.2 times forward one-year earnings, well below its average of about 18 times over the past two decades. On a price-to-sales basis it is even more attractive valued at just 1.03 times; the last time the index was this cheap on a sales basis was early 2009.

So while there are always dangers in trying to call a bottom to any market move, valuations alone are attractive enough to start pulling bargain hunters back in.

A broadly diversified play on an emerging market turnaround, iShares MSCI Emerging Markets Index is a great buy up to 45, which leaves plenty of room to run back to the average.

For those who can tolerate a bit more risk, you can also drill down and make more country-specific bets.

At this point my favorite would be iShares MSCI South Korea Index Fund (NYSE: EWY).

Sout

Top 10 Industrial Disributor Stocks To Invest In Right Now: Cenkos Securities PLC (CNKS)

Cenkos Securities plc (Cenkos) is an independent, specialist institutional securities group, focused on growth companies and investment funds. The Company�� principal activities comprise of corporate broking and advisory and institutional equities. Corporate Broking and Advisory segment reflects the corporate finance, corporate broking and market making services provided to growth companies and investment funds. Institutional Equities segment reflects the institutional equities team who provide research-driven investment recommendations and execution capabilities to institutional clients. Cenkos earns fees from primary and secondary equity fund raising, acting as a key intermediary between growth companies or investment funds and institutional providers of capital. Revenue in Corporate Broking and Advisory segment is made up of placing commissions on fund raisings, corporate finance fees and retainer income, market making profits and commissions on secondary market transactions. Advisors' Opinion:

[By Trista Kelley]
Cenkos Securities Plc (CNKS) is running the spinoff and the share sale. Royal DSM NV (DSM), the world�� largest maker of vitamins, holds about 9 percent of SiS, while U.K. venture-capital trust Downing LLP owns 16.7 percent, Moon said. Provexis stockholders received one share of Science in Sport for every 100 shares of Provexis.

Best Long Term Stocks To Buy Right Now: AMERIPRISE FINANCIAL SERVICES INC. (AMP)

Ameriprise Financial Inc., through its subsidiaries, provides a range of financial products and services in the United States and internationally. The company�s Advice and Wealth Management segment offers financial planning and advice, as well as brokerage and banking services primarily to retail clients through its financial advisors. The Asset Management segment provides investment advice and investment products to retail and institutional clients. The Annuities segment offers variable and fixed annuity products to retail customers through affiliated and unaffiliated advisors, and financial institutions. The Protection segment provides various protection products through financial advisors to address the protection and risk management needs of retail clients, including life, disability income, and property-casualty insurance. The company was formerly known as American Express Financial Corporation and changed its name to Ameriprise Financial, Inc. in September 2005. Ame riprise Financial Inc. was founded in 1894 and is headquartered in Minneapolis, Minnesota.

Advisors' Opinion:

[By Zacks]
Currently, shares of T. Rowe Price carry a Zacks Rank #2 (Buy). Among other investment managers, Invesco Ltd. (NYSE: IVZ) is scheduled to report December quarter end results on Jan 30, Legg Mason Inc. (NYSE: LM) on Jan 31 and Ameriprise Financial, Inc. (NYSE: AMP) on Feb 4.
[By U.S. News]
Getty Images Recently, a client came to me with a difficult dilemma. He was retired and living comfortably but didn't have much room in his budget for additional expenses. His son was a high-ranking executive with a midsize company. He was married, with three children, all of whom were in private school in New York City. The son lost his job as a consequence of restructuring. He was having difficulty finding another position at anything close to his prior income. He had been looking without success for more than six months. He was at a point where he could no longer meet his substantial monthly expenses. He asked my client to provide the funds necessary to maintain his lifestyle and the education of his children, until he was able to "land on his feet." My client could afford to make these payments for a limited period of time but his retirement plans would be jeopardized if the time period was prolonged and if his son did not pay him back. He asked for my advice. For many Americans, the goal of helping children and grandchildren pay for their education and preserving wealth to leave to their children is an important goal. Unfortunately, the 2008 recession reduced the confidence of investors in their ability to meet those goals. According to a report prepared by Ameriprise Financial (AMP), only 24 percent of those surveyed in 2012 were "very confident" they could help with education and only 16 percent had confidence in their ability to leave an inheritance to their children. What is more troubling is the finding that only one-third of those surveyed felt very confident in their ability to provide adequately for themselves and their family. My client had never discussed his finances with his children. He is not alone. More than one-third of the parents of boomers believe they haven't adequately discussed finances with their children, according to the Ameriprise study. Their children were often reluctant to engage in these discussions with aging parents b
[By Ian Katz]
��he consumer is still in a holding pattern, still waiting for better employment prospects,��said Russell Price, senior economist at Ameriprise Financial Inc. (AMP) in Detroit.
[By U.S. News]
Getty Images Borrowers have been enjoying historically low interest rates since the Great Recession hit. For those with solid credit histories, taking out a mortgage, auto loan or personal loan has never been cheaper. But all that could change. Rates on 30-year fixed-rate mortgages have started creeping upward, and financial experts say other forms of debt could soon follow suit. "We do anticipate rates going up, but how far and how fast that's going to happen is an open question," says Bradley Roth, managing partner at Kattan Ferretti Financial, a Pittsburgh-based financial planning and investment advisory firm. He expects the rates on 10-year Treasurys, which are currently approaching 3 percent, to reach 3.25 percent before the end of the year and then 4 to 4.25 percent in 2014. A rise in interest rates could soon be reflected throughout the entire financial services space, from credit cards to personal loans to home equity lines of credit. The good news for savers is that rates on deposit accounts could also climb after years of very low, or no, rates of return. Here's a roundup of how to prepare for rising rates, depending on your own money identity: For Savers "Savers should be able to benefit," Roth says, because he expects the rates on certificates of deposit, savings accounts and money market accounts to all go up. However, he warns savers against locking up their money in longer-term products, like CDs, which can make it harder to take advantage of quickly rising rates. Any rise in savings rates, though, will likely come slowly, says Greg McBride, senior financial analyst for Bankrate.com. "The Federal Reserve is still 18 to 24 months away from boosting short-term rates, so that will keep a lid on the savings yield," he says. In the meantime, with deposit rate accounts still low, savers can maximize their rate of return by shopping around, says Richard Barrington, senior financial analyst at MoneyRates.com. Online banks tend to offer higher r

Top 10 Industrial Disributor Stocks To Invest In Right Now: Panasonic Corporation(PC)

Panasonic Corporation develops, manufactures, and sells electronic products worldwide. The company offers video and audio equipment, and information and communications equipment; imaging equipment, such as flat-panel TVs and LCDs; digital AVC network equipment, including blu-ray disc recorders, digital cameras, and digital camcorders; business-use audiovisual (AV) equipment; notebook PCs; printers; security-related products comprising network cameras and POS system solutions; mobile phones; motors; car navigation systems, cameras, and digital terrestrial tuners. It also provides home appliances consisting of refrigerators, room air conditioners, washing machines and clothes dryers, and vacuum cleaners; and lighting and environmental systems, as well as components and devices for use in various products ranging from digital AV equipment, and information and communication devices to home appliances and industrial equipment; and offers electronic-parts-mounting machines, indu strial robots, and industrial equipment. In addition, the company provides solar photovoltaic systems and rechargeable batteries; electrical supplies, electric products, and building materials and equipment; personal care products, such as massage sofa, men?s shavers, hair dryers, and vibration toothbrushes; EV relays, and back and corner sensors; living station modular kitchen systems; home appliance- and communications-use relays and printed circuit board materials, and factory-automation -related products; and solar power generation systems and all-electric home design fixtures. It serves consumer, industrial and business corporations, governments, and other institutions, such as electric and electronic equipment manufacturers, automotive manufacturers, and various machinery makers. The company was formerly known as Matsushita Electric Industrial Co., Ltd. and changed its name to Panasonic Corporation in October 2008. Panasonic Corporation is founded in 1918 and is based in Kadoma-shi, Japan.

Advisors' Opinion:

[By Kyle Woodley]
The short, sucky answer? A lot:
Plans for a ��igafactory��meant to produce millions of electric-car batteries ginned up excitement, but also raised eyebrows. The Wall Street Journal reported on skepticism in the space — including from heads at Volkswagen (VLKAY) and battery maker Highpower International (HPJ). Now, even planned investment partner Panasonic (PC) now sounds iffy on the project, with company Kazuhiro Tsuga saying “the investment risk is definitely larger.” Not good. There also was Tesla�� direct sales snafu. New Jersey Gov. Chris Christie huffed and puffed and (on March 11) successfully blew down Tesla�� direct sales model, with the Motor Vehicle Commission approving a measure to enforce an already-existing ban on direct sales. On the flip side, Tesla has scored victories in New York and Ohio in the past month, and is making progress in Arizona (which has a little incentive on the board). Production of the Model X has been pushed further back, to 2015. Musk’s reasons — mostly having to do with focusing on bolstering Model S sales — are valid, but that doesn�� really soften the blow of a longer wait for the much-anticipated addition to Tesla�� line. To address the issue of battery fires in the Model S, TSLA added titanium shields and aluminum deflector plates to new vehicles and offered to install them for free in all its existing cars. Tesla�� margins are excellent, and there�� no hard number on the cost impact of the fix, but titanium ain�� cheap. This definitely isn�� going to add to Tesla�� bottom line. What Now?
I won�� belabor you with my bullish position on TSLA stock, but if you want, you can see it here. In short, Musk is a genius; Tesla products are quality and appeal to (and are priced for) the all-important luxury segment; and just given size and scale, TSLA has oh-so-much room to grow.

Top 10 Industrial Disributor Stocks To Invest In Right Now: Ashmore Group PLC (ASHM)

Ashmore Group plc (Ashmore) is engaged in providing investment management services. The Company is a fund manager across six core investment themes, such as external debt, local currency, corporate debt, blended debt, equities, multi-strategy, alternatives and overlay/liquidity. External debt is a diversified portfolio of emerging market debt assets. Local currency takes advantage of the expanding local currency and local currency denominated debt market. Corporate debt focuses on the developing corporate debt asset class. Blended debt mandates specifically combine external, local currency and corporate debt measured against tailor-made blended indices. Multi-strategy is a dynamic asset allocation across other investment themes. Equities Focuses on liquidity and top down macro country selection in publicly traded. Overlay/liquidity helps to separate and centralize the currency risk of an underlying emerging market asset class. Advisors' Opinion:

[By Inyoung Hwang]
Ashmore Group Plc (ASHM) jumped 5.3 percent to 382.2 pence. The U.K. fund manager that invests in emerging markets reported full-year pretax profit and revenue that exceeded estimates. The London-based company also raised its dividend.

Top 10 Industrial Disributor Stocks To Invest In Right Now: General Growth Properties Inc (GGC)

General Growth Properties, Inc. (GGP), incorporated on July 1, 2010, is a real estate investment trust (REIT). The Company owns or with joint venture partners 144 regional malls (126 domestic and 18 in Brazil) consists of approximately 135 million square feet. The Company is engaged in ownership, operation, management and selective re-development of its Consolidated Properties and Unconsolidated Properties, which are primarily regional malls.

As of December 31, 2012, the Company's segment was consists of 126 regional malls in the United States and 18 malls in Brazil, eight strip centers totaling 1.6 million square feet, primarily in the Western region of the United States, as well as seven stand-alone office buildings totaling 0.9 million square feet, concentrated in Columbia, Maryland. The Company also own interests in regional malls in Brazil.

Advisors' Opinion:

[By Holly LaFon]
His largest new buys in the first quarter are: Penn Virginia Group Holdings LP (PVG), Wynn Resorts Ltd. (WYNN), Methanex Corp. (MEOH), Solutia Inc. (SOA) and Georgia Gulf (GGC). Of his top eight stocks, five are from the chemicals industry.

Top 10 Industrial Disributor Stocks To Invest In Right Now: Golden Valley Bank (GVYB)

Golden Valley Bank is owned and operated commercial bank serving the needs of individuals and businesses in northern California. The Bank provides personal services, such as checking and savings and IRAs. The Bank�� business includes checking, savings, commercial lending, online banking and eDeposit.

The Bank provides business owners; commercial developers and investors, and residential builders and developers. Golden Valley Bank's business online banking service provides account management, bill pay and transactions services.

Advisors' Opinion:

[By CRWE]
Today, GVYB remains (0.00%) +0.000 at $9.00 thus far (ref. google finance Delayed: 11:59AM EDT July 17, 2013).

Golden Valley Bank headquartered in Chico, California previously reported June 30, 2013 financials. The company also announced their $.05 per share second quarter cash dividend.

2nd Quarter 2013 Financial Highlights: Year to date net profit $683,911 compared to $514,030 year to date in 2012; Assets up $14.9 million to $136.7 million, or 12.2%, over the second quarter of 2012; Loans up $6.2 million to $89.5 million, or 7.4%, over the second quarter of 2012; Deposits up $14.6 million to $118.6 million, or 14%, over the second quarter of 2012

The results of the Gravity Survey will be released once they are available

Top 10 Industrial Disributor Stocks To Invest In Right Now: Mecox Lane Limited(MCOX)

Mecox Lane Limited, through its subsidiaries, engages in the design and sale of apparel, accessories, and home and healthcare products through its online platform and stores in the People?s Republic of China. Its apparel and accessories include women?s T-shirts, sweaters, jeans, dresses, outerwear, purses, and shoes, as well as offers kids? apparels and men?s apparels. The company also provides home furnishings and other small household appliances; a large-rim cup to cook instant noodles; beauty and healthcare products, such as skin care, fragrance, cosmetics, and other personal care products; and pet-related and other products. It sells its products under Euromoda and Rampage brands, as well as under third-party brands. In addition, the company involves in the telephonic sale of garments, accessories, and other products; and wholesale and retail of garments. Further, it offers software development and information technology support services. As of December 31, 2010, t he company operated 451 stores, including 327 franchised stores and 124 directly operated stores in 172 cities. Mecox Lane Limited distributes its products through company-owned and franchised stores, as well as through its M18.com e-commerce Website. The company was founded in 1996 and is headquartered in Shanghai, the People?s Republic of China. Mecox Lane Limited is a subsidiary of Mecox Lane.

Advisors' Opinion:

[By Roberto Pedone]
Mecox Lane (MCOX) offers a selection of products apparel, accessories and home and health care products through its online platform and third party e-commerce websites. This stock closed up 13.5% to $4.10 in Tuesday's trading session.

Tuesday's Range: $3.62-$4.18

52-Week Range: $1.67-$7.88

Tuesday's Volume: 274,000

Three-Month Average Volume: 238,211

From a technical perspective, MCOX exploded higher here right above some near-term support at $3.42 and back above its 50-day moving average of $4 with above-average volume. This stock has been trending sideways and consolidating over the last two months, with shares moving between $3.23 on the downside and $4.58 on the upside. This spike on Tuesday is quickly pushing shares of MCOX within range of breaking out above the upper-end of its recent range. That trade will hit if MCOX manages to clear Tuesday's high of $4.18 and then above more resistance at $4.58 with high volume.

Traders should now look for long-biased trades in MCOX as long as it's trending above its 200-day at $3.24 and then once it sustains a move or close above those breakout levels with volume that hits near or above 238,211 shares. If that breakout hits soon, then MCOX will set up to re-test or possibly take out its next major overhead resistance levels at $6 to its 52-week high at $7.88.

Top 10 Industrial Disributor Stocks To Invest In Right Now: Exponent Inc.(EXPO)

Exponent, Inc., together with its subsidiaries, provides engineering and scientific consulting services worldwide. Its services include analysis of products, people, property, processes, and finances related to litigation, product recall, regulatory compliance, research, development, and design. The company offers approximately 90 different technical disciplines to solve complicated issues facing industry and government. It offers services in the areas of biomechanics, biomedical engineering, buildings and structures, civil engineering, construction consulting, defense technology development, ecological and biological sciences, electrical engineering and computer science, engineering management consulting, environmental and earth sciences, health sciences, human factors, industrial structures, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, statistical and data sciences, thermal sciences, and vehicle analysis. The compa ny provides its services through a team of scientists, physicians, engineers, and business and regulatory consultants. It serves clients in automotive, aviation, chemical, construction, consumer products, energy, government, health, insurance, manufacturing, and technology sectors. The company was formerly known as The Failure Group, Inc. and changed its name to Exponent, Inc. in 1998. Exponent, Inc. was founded in 1967 and is based in Menlo Park, California.

Advisors' Opinion:

[By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Exponent (Nasdaq: EXPO ) , whose recent revenue and earnings are plotted below.

Top 10 Industrial Disributor Stocks To Invest In Right Now: Silver Spring Networks Inc (SSNI)

Silver Spring Networks, Inc., incorporated on July 3, 2002, provides a networking platform and solutions that enable utilities to transform the power grid infrastructure into the smart grid. The Company�� networking platform provides two-way communications between the utility back office and devices on the power grid. In addition to its networking platform, it offers a suite of solutions that run on top of its network and complementary services, all of which is referred to as its Smart Energy Platform. Its service offerings include professional services to implement its products, managed services and software as a service ( SaaS), to assist utilities with managing the network and solutions, and ongoing customer support. Its Smart Energy Platform consists of hardware, software and services and combines with devices manufactured by third-party partners to form end-to-end smart grid offerings.

The Company�� solutions include advanced metering, which allows utilities to automate a number of manual processes and improve operational efficiencies, offer flexible pricing programs to consumers, and improve customer service with faster outage detection and restoration; distribution automation, which provides utilities with real-time visibility into the health of the grid, enabling better management and control of power distribution assets to improve grid reliability, and demand-side management, which enables utilities to offer consumers a variety of programs and incentives to use energy more efficiently and reduce usage at times of peak demand. The Company markets its Smart Energy Platform directly to utilities around the world. The Company�� network is composed of its hardware, such as access points and relays, its UtilOS network operating system, and GridScape software suite, which together provide utilities the ability to communicate with and control devices connected to the power grid.

The Company also offers a suite of solutions that run on top of its network, including ad! vanced metering, distribution automation, and demand-side management. These solutions include additional hardware, such as its communications modules and bridges, and applications from UtilityIQ and CustomerIQ software. Its solutions combine with devices from the large number of third parties with whom it collaborates to form end-to-end smart grid offerings built on its network. In addition, itoffers a range of services that enable its utility customers to deploy, operate and maintain its networking platform and solutions. These service offerings include professional services to implement its products, managed services and SaaS to assist utilities with managing the network and solutions, and ongoing customer support.

Advisors' Opinion:

[By John Udovich]
Although small cap smart metering stock Silver Spring Networks Inc (NYSE: SSNI) recently soared on earnings, it also plunged yesterday�after loosing�out on important contract ��meaning it might be time to take a closer look at it along with other smart metering stocks like Itron, Inc (NASDAQ: ITRI) or Echelon Corporation (NASDAQ: ELON) to see if they are smart investments.
[By Roberto Pedone]
A technology stock that's quickly moving within range of triggering a big breakout trade is Silver Spring Networks (SSNI), which provides a networking platform and solutions that enable utilities to transform the power grid infrastructure into the smart grid. This stock has been on a hot streak over the last six months, with shares up by 22%.

If you look at the chart for Silver Spring Networks, you'll notice that this stock has been uptrending strong for the last month and change, with shares moving higher from its low of $14.63 to its recent high of $22 a share. During that uptrend, shares of SSNI have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SSNI within range of triggering a big breakout trade.

Traders should now look for long-biased trades in SSNI if it manages to break out above some near-term overhead resistance levels at $22 to $22.73 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 491,731 shares. If that breakout triggers soon, then SSNI will set up to re-test or possibly take out its next major overhead resistance levels at $23.90 to its gap down day high from August at $25.25 a share. Any high-volume move above $25.25 a share will then give SSNI a chance to re-fill some of that previous gap down zone that started near $32 a share.

Traders can look to buy SSNI off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $19.01 a share, or near $18 a share. One can also buy SSNI off strength once it takes out that breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.