Sunday, March 30, 2014

3 Dividend Stocks for Next Quarter

Rocky markets can take a toll on even the most stalwart investor, but selling dividend-paying companies into weakness isn't your best bet. In the past, dividend investors have been much better served by taking a long view that allows dividends to offset Wall Street's whims and whispers.

That could be particularly true for these three dividend-paying health-care companies: GlaxoSmithKline (NYSE: GSK  ) , Merck (NYSE: MRK  ) , and Quest Diagnostics (NYSE: DGX  ) . They not only pay healthy dividend yields that can blunt the pain of a sell-off, but they're also strong performers during the coming quarter. That suggests investors may not want to sell them, and investors who have been considering them may want to step in and buy them.

GSK Chart

Source: YCharts.

The strongest dividend
GlaxoSmithKline's product lineup includes the most successful asthma medication on the market. Advair is not only among the mostly widely used drugs for treating asthma, but it's also a major moneymaker. The drug posted global sales of more than $8 billion last year, but it's not the only asthma drug in GlaxoSmithKline's catalog. GlaxoSmithKline also markets blockbusters Flovent and Ventolin. Those three drugs notched nearly $12 billion in sales from respiratory therapies last year. That market-leading position should be stronger this year given the FDA approved two more potential respiratory blockbusters last year. Those two drugs, Breo Ellipta and Anoro Ellipta, are used to treat chronic obstructive pulmonary disease and analysts project the two could eventually generate a combined $2.7 billion in peak annual sales.

Although important, asthma and COPD drugs aren't the only products propping up the company's sales. Glaxo delivered more than $42 billion in revenue last year and nearly $9 billion in profit after taxes, thanks to drugs designed to treat a variety of diseases including cancer and cardiovascular disease. The company also has an $8 billion consumer health-care business. Those are all good reasons to take a chance on its shares, but for those requiring another reason to step in during a rough-and-tumble tape, GlaxoSmithKline's shares have managed to climb in eight of the past 10 second quarters, producing an average 4.8% return. Importantly, GlaxoSmithKline's forward dividend yield is 5.7%, which means that even if shares do fall next quarter, its dividend will help ease any pain.

Quickly recovering
The patent cliff took a toll on Merck's top line when its top-selling asthma drug Singulair lost patent exclusivity in 2012. Merck also lost protection on Temodar and Maxalt last year, threatening another $1.5 billion in sales. However, it's not all bleak for Merck given the company still expects sales of $42 billion to $43 billion and earnings of $3.35 to $3.53 this year. While that's down from the $44 billion and $3.49 per share recorded last year, Merck's future may brighten thanks to promising cancer drug MK-3475. Strong performance in trials as a melanoma treatment and FDA breakthrough status has investors hoping for a quick and easy path to approval. The drug may also offer opportunity as a therapy for non-small cell lung cancer. In addition to MK-3475, Merck also has late-stage studies under way in ovarian cancer, diabetes, psoriasis, and Alzheimer's disease.

Those opportunities could put Merck back on a path to sales and profit growth, but for investors needing an extra push toward owning shares, it's worth noting that Merck has also gained in eight of the past 10 second quarters, posting a nearly identical 4.8% average return to GlaxoSmithKline. It's even less correlated to the S&P 500 than GlaxoSmithKline at 0.48 for the period, which means that even if markets fall, its shares may not. If Merck's shares do drop, the company pays a 3.2% forward dividend yield that may help offset any weakness.

Greater volatility, but strong cash flow
Quest Diagnostics is a Goliath in lab testing, operating 2,100 testing centers nationwide. The company, which generated $1.7 billion in fourth-quarter sales, hopes to expand its diagnostics business into personalized medicine. Last year, Quest launched a BRCA gene test for breast cancer patients in a bid to win business from Myriad Genetics.

Additionally, Quest is in the midst of a restructuring that it hopes will save it $500 million in annual costs. If so, the company's solid cash stream, which helped Quest repurchase $1 billion in shares last year, should continue to reward investors. It is guiding investors to expect $900 million in cash from operations and $3.90 to $4.10 in earnings per share this year. That cash flow and solid earnings outlook should provide investors with a healthy dose of stability, but for those wondering if headwinds will be too strong this spring, shares have also been solid performers in the second quarter. Over the last 10 years, shares are up eight times, producing an average 4.6% return. Investors should also know that Quest does have the highest standard deviation of these three companies for the period, which means it may be more volatile, and the highest correlation to the market of the three, which means it's most likely to follow the market's path. Regardless, its 2.4% forward dividend yield appears rock-solid given its cash flow.

Fool-worthy final thoughts
Investors shouldn't be jumping in an out of stocks based on emotion. Instead, taking a calculated approach can produce impressive returns over time, especially for dividend-paying companies. GlaxoSmithKline and Merck aren't free of business challenges, but they're both large drug developers with a proven history of creating innovative and dividend-friendly therapies. If big pharma isn't on your dividend wishlist, lab testing giant Quest may fit the bill given a larger, longer living population is likely to increase rather than decrease testing demand over the coming decade.

Here are nine more dividend companies you ought to know about
One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend-paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.

Saturday, March 29, 2014

Securities Class-Action Awards Jumped 46% in 2013

Total settlement dollars from securities class actions jumped by 46% in 2013, largely driven by six mega-settlements (those at or above $100 million), which accounted for 84% of total settlement dollars, according to Securities Class Action Settlements — 2013 Review and Analysis, a report issued Thursday by Cornerstone Research.

There were 67 settlements in 2013, up from 57 in 2012 — the first year-over-year increase since 2009, the report found.

“In 2013, total settlement dollars, at $4.8 billion, reached the highest level since 2007, driven by both the increase in the number of settlements overall, as well as the increase in extremely large settlements,” said report co-author Laura Simmons, a senior advisor in Cornerstone Research’s Washington office.

Simmons said the largest settlements in 2013 were associated either with pharmaceutical firms or financial institutions involved with subprime credit crisis allegations.

In contrast, median “estimated damages,” a key measure of investor losses, declined 48% from 2012. Since “estimated damages” are the most important factor in determining settlement amounts, this decline was likely a major factor contributing to the substantially lower median settlement amount of $6.5 million in 2013, the report states.

The report also notes that the landscape for securities class actions and their settlements may "shift dramatically" depending on the outcome of Halliburton Co. v. Erica P. John Fund, a case pending in the U.S. Supreme Court that could make it much more difficult for shareholders to band together and sue companies for fraud.

“If the ruling in Halliburton severely limits investors’ ability to get large-scale class actions certified, the future of such cases is up in the air,” added Joseph Grundfest, director of the Stanford Law School Securities Class Action Clearinghouse. “This past year’s data also represent the fading echoes of the financial crisis, as some of the largest settlements resolve claims of fraud surrounding transactions in mortgage-backed securities. These lawsuits won’t be around in the coming years to drive aggregate settlement values.”

Other highlights from the report include:

Total settlement dollars in 2013 were 60% above the average for the prior five years.

The proportion of settled cases in 2013 involving accounting allegations dipped to a 10-year low, but the settlement as a percentage of “estimated damages” for these cases was much higher than for cases not involving such allegations.

The median settlement in 2013 for cases with a public pension as a lead plaintiff was $23 million, compared with $3 million for cases without a public pension as a lead plaintiff.

Cases reaching more advanced stages of litigation were associated with median “estimated damages” of more than three and a half times the median for cases settling in an early stage.

Settlements of $50 million or lower were far less likely to involve accompanying SEC actions or public pensions as lead plaintiffs.

In 2013, 32% of settlements less than $10 million were for cases involving Chinese reverse mergers.

---

Check out Securities Class Actions Hit 14-Year Low on ThinkAdvisor.

Friday, March 28, 2014

Why Leidos Holdings, Inc. Shares Plunged Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Leidos Holdings,  (NYSE: LDOS  )  or formerly Science Applications International -- fell more than 18% Thursday after the national security, health, and engineering solutions company turned in better-than-expected fiscal 2014 fourth-quarter results, but followed with disappointing guidance and announced the departure of its Chief Operating Officer.

So what: Quarterly revenue fell 18% year over year, to $1.3 billion, or just ahead of analysts' expectations for sales of $1.27 billion. This translated to earnings of $0.52 per diluted share (including a $0.04 per share loss from discontinued operations). Analysts, on average, were modeling earnings of just $0.43 per share.

However, Leidos also called for fiscal 2015 revenue of $4.9 billion to $5.1 billion, with adjusted earnings per diluted share from continuing operations of $2.35 to $2.55. The midpoints of both ranges stand significantly below analysts' expectations for fiscal 2015 sales of $5.46 billion, and earnings of $2.85 per share.

On a more positive note, Leidos does expect to generate healthy cash flow from continuing operations at or above $350 million this fiscal year.

Finally, Leidos announced current president and COO Stu Shea will step down on April 6, 2014. The departure was a mutual decision between Shea and Leidos' board.

Now what: Leidos CEO John Jumper didn't sugarcoat it, saying, "In our fourth quarter, we continued to encounter headwinds from sequestration, unclear funding on awarded programs, delayed award decisions, high levels of protest activity, and continued commercial health and engineering revenue declines."

Still, he insists Leidos will focus on strategies to "increase returns and deepen our market penetration, especially in markets where we no longer face organizational conflicts of interest." Leidos will also continue returning capital to shareholders through share repurchases and its 3% annual dividend.

While it's tempting to stay far away given Leidos' outlook, I find myself intrigued. Keep in mind that, taking the midpoint of that guidance, the stock seems to reflect much of investors' pessimism trading at just 0.6 and 14 times this year's expected sales and earnings, respectively. In the end, while I wouldn't jump in with both feet, today's pullback could provide a reasonable opportunity for patient investors to open a small position.

Top Canadian Stocks To Own For 2014

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Thursday, March 27, 2014

Zuckerberg says Facebook's buying spree unusual

SAN FRANCISCO – Don't expect Facebook's billion-dollar spending spree to continue indefinitely, company founder Mark Zuckerberg said on a conference call Tuesday after Facebook purchased virtual reality goggle-maker Oculus for $2 billion.

Just last month, the social networking giant spent $19 billion on mobile messaging service WhatsApp.

"These are both incredibly rare companies, you shouldn't expect us to do this frequently," said Zuckerberg. "But WhatsApp has the potential to reach a billion users, and any company that can do that will be incredibly valuable. And not many companies are working on what could be the next computing platform (like Oculus VR). The rate (of these acquisitions) won't continue."

NEWS: Facebook gets virtual reality startup for $2B

Zuckerberg added that in purchasing the Irvine, Calif., company, which has yet to release a product to consumers, Facebook isn't getting in the hardware game. Rather, "we view this as a software and services thing, a network (accessed through Oculus goggles) where people can communicate and buy things, that'll be where the business will come from."

Hot Safest Stocks To Watch Right Now

What Zuckerberg made abundantly clear on the 30-minute call was that Facebook's interest in Oculus goes well beyond the virtual-reality gaming world that inspires the company's leader, 21-year-old wunderkind Palmer Luckey. Similarly, Oculus CEO Brandon Iribe noted that his company's interest in joining forces with Facebook stemmed from that same realization about a socially networked world that isn't tied to phones.

"We saw that (Oculus Rift goggles) would be a lot about gaming and entertainment, but we didn't see how big the social experience was," said Iribe. "When you feel you're present in another space, something changes and you start to realize how big this can be. If you can look at (another person) and your brain believes they're in! front of you, you get the goose bumps. You see how big an impact it'll be on social."

Zuckerberg said Oculus appealed to him because the company was "so far out front" on the technological VR curve, thanks in part to its ability to use sophisticated (smartphone-derived) technology whose costs are dropping "for the purpose of intense graphics work that won't make you motion sick."

"As soon as you move your head, you have to generate an updated world in 15 to 20 milliseconds. This (Oculus) team now can do that at cost effective price."

The Facebook CEO hinted that his company had briefly considered what it would take to go it alone in the VR space, but quickly determined that "in addition to us being behind, they already had best people in the industry.

"But we were thinking about what the next platforms (for social communication) might be, and though it might take five to 10 years, like smartphones, which popped up in 2003 but got big 10 years later, we thought this is the team we want to work with," he said. "The bigger question on their side was they had so many options. But we got excited about what we could add to each others efforts.

Zuckerberg deflected questions about when a Rift goggle might come to market or whether Oculus executives would take a seat on Facebook's board.

Wednesday, March 26, 2014

China's Version of "Too Big to Fail"

MoneyShow's Jim Jubak thinks some small Chinese company defaults are inevitable, while defaults by bigger companies are not, and will be stopped by the Chinese government.

It turns out that China has its own version of "Too Big to Fail." In early March, there has been a lot of turmoil in the market and risk in the market because China had its first ever corporate bond default. They have another few companies that are talking about defaulting in different ways on bank loans, etc., and raised the sense that there is a whole lot of risk.

What is interesting is that the biggest risks in the Chinese financial system are financing companies that are affiliated with the Hu governments. The Hu governments are not allowed to borrow themselves, so they have gotten around that regulation by setting up financing arms that then finance things like shopping centers or factories. The amount of debt here is up to about $2.9 trillion, about 40% of that has to be rolled over this year, and the sense was that these entities were in deep, deep trouble. What has been interesting is that even though you have had this worry about the first ever bond default, the yield that investors have been demanding to invest in these financial entities has fallen. It is down about 70 basis points since the end of January. Investors are saying, seemingl,y to just look at that rate. They are saying these things are less-risky than before when we were not really worried about defaults. What it really seems to imply is that investors are looking at the Chinese government and saying, "Well some default is inevitable," which is what the Chinese Premier said a few weeks ago. I have decided that, yes, what he really means is that some defaults, by relatively small privately owned companies are inevitable, but that defaults by things like financing entities affiliated with the Hu governments or big state owned enterprises are not inevitable. In fact, the government is not going to let those happen. That is the consensus at the moment. That is what is driving prices in the debt market for things like bonds that are being sold by these low government entities.

Now looking at the spread between those bonds, and those issued by Beijing itself, has contracted, so there is clearly a sense that there is less risk in this than we thought, as the market consensus says, at the moment. Whether the market consensus is right or not, time will tell. I doubt that we are going to get through this without some more turmoil down the road, but at the moment, at least, China's financial markets have decided that, yes, there is a problem, but it is not where we thought the problem was and, in fact, it is actually smaller than we thought it was, and "hey, we are going to work through this and it is not going to be a big deal." I think when we get to complacency about this, that is when we then really do need to start to worry about it again.

10 Best Retail Stocks For 2014

This is Jim Jubak for the MoneyShow.com Video Network.

Tuesday, March 25, 2014

5 Rocket Stocks to Buy as Stocks Test Highs

BALTIMORE (Stockpickr) -- We're kicking off an important week for stocks this morning, even if it doesn't feel like it.

>>5 Stocks Ready for Breakouts

The S&P 500 has spent the last four trading sessions moving sideways, but it's been consolidating just 1 percentage point shy of all-time highs. On Friday, the big index hit the highest trading volume it's seen in almost a year before reversing to close 0.29% lower on the day. All of that is a pretty clear indication that there's a big battle going on between buyers and sellers right now.

If buyers can wrestle control, it could spark a big rally in the S&P. Otherwise, if sellers take command of stocks, it'll mean a correction. Either way it resolves, we're positioning ourselves for the best upside by taking a look at five new "Rocket Stock" names this week.

>>5 Stocks Under $10 Set to Soar

For the uninitiated, "Rocket Stocks" are our list of companies with short-term gain catalysts and longer-term growth potential. To find them, I run a weekly quantitative screen that seeks out stocks with a combination of analyst upgrades and positive earnings surprises to identify rising analyst expectations, a bullish signal for stocks in any market. After all, where analysts' expectations are increasing, institutional cash often follows. In the last 241 weeks, our weekly list of five plays has outperformed the S&P 500 by 81.23%.

Without further ado, here's a look at this week's Rocket Stocks.

PepsiCo

PepsiCo (PEP) may be best known for its soda products, but they're only half the story. That's because 50% of this Rocket Stock's revenues come from food brands like Doritos, Lay's, and Quaker. That bifurcated business has been attracting the attention of investors this year, as prominent shareholders pitch the idea of splitting PepsiCo into two separate companies. PEP makes the case that shareholders are best-served by keeping Pepsi as a single company, and their case makes a lot of sense.

>>5 Toxic Stocks to Sell Now

As the biggest snack food maker in the world, and the No. 2 non-alcoholic beverage company, Pepsi's huge scale comes in handy at keeping distribution costs low. Today, North America still provides around 40% of sales, an outsized stat that leaves a lot of clear runway for growth abroad. That sort of growth opportunity is rare for a $125 billion company, and it warrants a premium from investors.

PepsiCo has historically also generated impressive growth through acquisitions. By buying snack food brands that are enjoying strong sales, PEP can augment its offerings in a way that a pure-play beverage stock can't. And don't forget about the dividend -- currently, PEP pays out a 2.76% dividend yield.

Delta Air Lines

A decade ago, if you'd told a room full of portfolio managers that airlines would be the hottest industry on the market during the age of triple-digit crude oil prices, you would have been laughed off stage. But sure enough, that's exactly what's been playing out in the past year. And legacy carrier Delta Air Lines (DAL) has been one of the best-positioned names to take advantage of the trend.

>>5 Stocks Insiders Love Right Now

Delta is one of the country's biggest airlines, with more than 720 aircraft serving 247 mainline destinations globally. Delta's scale changed dramatically when it merged with Northwest Airlines in 2008, a move that's finally creating some big cost savings (and margin expansion) for the firm. As a legacy carrier, Delta's model is centered around spoke-and-hub flying -- but it also includes some of the industry's most profitable international routes, and a very popular frequent flyer program. Both of those factors mitigate the inconvenience of domestic layovers among the most profitable passengers.

Not that Delta has been opposed to different approaches, though; the firm has a 49% investment stake in Virgin Atlantic, for instance. Likewise, marketing efforts, like Delta's long-standing partnership with American Express (AXP), gives it access to a one of the largest issuers of corporate charge cards -- and incentivizes those business flyers to buy Delta tickets. The result is one of the highest operating margins in the airline business -- and Rocket Stock status this week.

Keurig Green Mountain

Earlier this month, one of 2014's biggest momentum stocks got a new name. On March 10, Green Mountain Coffee Roasters announced that it was changing its name to Keurig Green Mountain (GMCR), a move that puts the firm's hugely successful Keurig brand front-and-center going forward. Keurig is the GMCR's brand of beverage brewers that use self-contained K-Cups to make coffee, teas and other drinks. That "other drinks" catch-all is where the emphasis is going this year; a major deal with (and huge investment from) Coca-Cola (KO) will bring in-home soda making to consumers through the Keurig Cold brand.

>>Hedge Funds Are Selling These 5 Stocks -- Should You?

That's helped squeeze shares more than 48% higher since the calendar flipped to January. Already, Keurig's K-Cups offer a sticky revenue stream for GMCR. Because they're proprietary, the firm can command premium pricing for them. And because the firm can offer new, diverse drink choices (such as hot cocoa or iced coffee), it's able to drive sales among its large installed base.

One of the most staggering stats about GMCR right now is the fact that the firm isn't particularly expensive despite its huge momentum. Shares trade for 33 times earnings, a reasonable multiple for a big growth name. Likewise, the firm sports a solid balance sheet with more than $100 million in net cash; this past year marks the first time GMCR has sported more cash than debt. With rising analyst expectations in GMCR, we're betting on shares.

Paychex

There was one company that applauded Janet Yellen's hints at rising interest rates last week: Paychex (PAYX). Paychex is an outsourced HR firm that provides 570,000 small and medium-sized businesses with payroll and more specialized HR services. Because of the bevy of tax and compliance issues involved in a small business paying its people, the firm is able to earn profits for its expertise. So why does that make PAYX a winner in a rising rate environment?

>>5 Big Trade Signals After Yellen's Surprise Message

Best Mid Cap Companies To Buy For 2014

Historically, Paychex has earned substantial income from float interest -- the interest money it earns on massive payroll accounts in between the time that employers deposit funds and employees cash their checks. But with rates held near zero for the past five years, PAYX has had to build revenues through other ancillary HR services such as 401k management and worker's comp insurance. Rates on the rise means that Paychex will be able to effortlessly boost its profits.

From a financial standpoint, Paychex is in excellent shape. The firm carries more than $838 million in cash and investments on its balance sheet, with no debt. That provides a lot of dry powder for its 3.27% dividend yield, and it covers around 5% of the firm's outstanding shares at current price levels.

Stanley Black & Decker

Stanley Black & Decker (SWK) hasn't been much of a performer in the last year -- shares are basically flat over a period when the S&P 500 was rallying double digits. But that sluggish stock performance could be due for a turnaround thanks to big industry tailwinds and newfound Rocket Stock status.

>>4 Stocks Breaking Out on Big Volume

SWK manufactures construction and industrial tools, as well as security products and services. The 2010 combination of Stanley and Black & Decker brought together some of the most popular tool and equipment brands in the world, including DeWalt, Porter Cable, and Bostitch, and 18 other marques in addition to the firm's namesakes. Newer additions to SWK's lineup, such as industrial fasteners, offer important diversification away from the cyclical constriction and do-it-yourself business, where the firm has traditionally made its money.

Tailwinds in the North American construction segment are providing exciting growth opportunities for SWK once again, but it's emerging markets where the firm really has the most potential. Because 85% of sales come from developed countries, emerging markets are under-tapped, especially in industrial and infrastructure products that aren't as subject to consumer dollars as pricey power tools.

Earnings on April 21 could be the next big catalyst in SWK. Stay tuned.

To see all of this week's Rocket Stocks in action, check out the Rocket Stocks portfolio at Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.


RELATED LINKS:



>>3 Stocks Under $10 Making Big Moves



>>5 Big Health Care Stocks to Trade for Gains



>>3 Stocks Rising on Unusual Volume

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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

Follow Jonas on Twitter @JonasElmerraji


Sunday, March 23, 2014

Top 5 Financial Companies To Invest In Right Now

Top 5 Financial Companies To Invest In Right Now: Guggenheim Multi-Asset Income ETF (CVY)

The Guggenheim Multi-Asset Income ETF (the Fund), formerly Claymore/Zacks Multi-Asset Income Index ETF, seeks investment results that correspond generally to the performance of an equity index called the Zacks Multi-Asset Income Index (the Index). The Index consists of approximately 125 to 150 securities selected, based on investment and other criteria, from a universe of domestic and international companies. The universe of securities within the Index includes United States-listed common stocks, American depositary receipts (ADRs) paying dividends, real estate investment trusts, master limited partnerships, closed-end funds and traditional preferred stocks. The companies in the universe are selected using a methodology developed by the index provider, Zacks Investment Research, Inc. The Fund, using a passive or indexing investment approach, seeks to replicate the performance of the Index. The Fund's investment advisor is Claymore Advisors, LLC. Advisors' Opinion:
  • [By Genia Turanova]

    Moreover, investors can do one-stop shopping for most income classes through a single ETF as well. One interesting choice here is Guggenheim Multi-Asset Income (CVY).

  • source from Top Stocks Blog:http://www.topstocksblog.com/top-5-financial-companies-to-invest-in-right-now.html

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Friday, March 21, 2014

Why Geospace Technologies Corp (GEOS) Is Plummeting

NEW YORK (TheStreet) -- Geospace Technologies Corp (GEOS) plunged over Friday's session after notifying the SEC an order it expected to deliver in its third quarter had been postponed.

By market close, shares had taken off 15.1% to $62.89. Trading volume of 1 million was more than five times its three-month daily average.

In its 8-K filing with the SEC, the developer of seismic data instruments said a previously announced $29.4 million order would be delayed. The order was from Seafloor Geophysical Solutions for 2,300 stations of its deepwater OBX seafloor node.

Seafloor advised Geospace a portion of its capital commitment had been withdrawn and that it was currently seeking new investors to fund the purchase order. "While the possibility still exists that delivery of the system to SGS may occur in the company's fiscal third quarter, this event could result in a postponement of the delivery of this system beyond the fiscal third quarter. As a result, the company is not currently able to estimate when the system delivery might occur," Geospace said in the filing. Must Read: Warren Buffett's 10 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates GEOSPACE TECHNOLOGIES CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: "We rate GEOSPACE TECHNOLOGIES CORP (GEOS) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 8.3%. Since the same quarter one year prior, revenues rose by 30.3%. Growth in the company's revenue appears to have helped boost the earnings per share. GEOS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, GEOS has a quick ratio of 2.17, which demonstrates the ability of the company to cover short-term liquidity needs. The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market, GEOSPACE TECHNOLOGIES CORP's return on equity exceeds that of both the industry average and the S&P 500. Net operating cash flow has significantly increased by 2596.87% to $52.73 million when compared to the same quarter last year. In addition, GEOSPACE TECHNOLOGIES CORP has also vastly surpassed the industry average cash flow growth rate of 23.31%. 49.89% is the gross profit margin for GEOSPACE TECHNOLOGIES CORP which we consider to be strong. Regardless of GEOS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GEOS's net profit margin of 23.85% significantly outperformed against the industry. You can view the full analysis from the report here: GEOS Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Stock quotes in this article: GEOS 

Wednesday, March 19, 2014

Gold Miners: A Junior Trio

A primary factor driving gold right now is the huge flow of gold from Western speculators to Eastern savers, also known as the battle of "paper gold" versus "real gold," explains metals sector specialist Brien Lundin, editor of Gold Newsletter.

We've seen a historic shift in Asian demand. Not just bargain hunting, but a major surge in everyday buying that refuses to wane.

From 2000 to 2008, the major rallies in gold occurred whenever—for whatever reason—the Western and Eastern markets were both buying. We haven't seen this phenomenon since the rebound from the credit crisis of 2008. Now we may be seeing it again.

Meanwhile, the sentiment for gold, silver, and the mining stocks is improving rapidly. More broadly, junior companies are becoming more confident in getting back to work as their share prices improve.

Top Undervalued Stocks To Buy Right Now

With its acquisition of PMI Gold now complete, Asanko Gold (TSX:AKG) is embarking on the task of putting the newly enlarged company's multi-million-ounce gold resource into production.

I like Asanko's aggressive move into the ranks of mid-tier gold producers. Even in the current, volatile market for gold, Asanko's scalable, open-pittable deposits in Ghana give the company a clear view to cash flow in the next couple of years.

The fact that it has financing in place, and will move forward toward production while most of the world's undeveloped gold resources will continue to lie fallow, separates Asanko from the pack. It continues to be a buy.

With an exploration update from its Akarca project in Turkey, a royalty deal on the Timok copper-gold properties in Serbia, and the closing of an option on its Koonenberry project in Australia, Eurasian Minerals (SCT:EMX) reminded investors how faithful it is to the prospect generator model of mining exploration.

These latest also remind us how nimble this management team can be and how much news flow the company generates, even during unsteady times. It remains a solid bet on the long-term prospects for precious and base metals and a buy.

A new buy recommendation, Midland Exploration (MIDLF) is a well-funded junior explorer with a wealth of great projects in mining-friendly Quebec.

Midland is a prospect generator, one that has had great success attracting partners to fund exploration work on its many projects. Management runs a tight ship, and its miserly cash burn rate gives it the ability to survive, and even thrive, in the current market turmoil.

Its projects run the gamut, from gold, to platinum-group metals, to base metals, and rare earths. Many of these properties are in the backyard of world-class metals deposits.

In short, Midland offers a winning combination of great projects, news flow, and the potential for an explosive share price move, should one of its JV partners hit paydirt. It's a strong buy and a solid addition to our buy list.

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Tuesday, March 18, 2014

Hertz Global: Earnings Don’t Matter, Just Buy the Stock

Hertz Global missed earnings forecasts today and offered disappointing guidance. It’s time to buy the stock, says MKM Partners.

MKM analysts Christopher Agnew and Bradford Dalinka explain why their recommendation isn’t as contrarian as it appears:

Contradictory? We think not: (1) Expectations weren't high into the quarter. Guidance was expected to be conservative and although a little light, the top-end includes $2.00. (2) The issues in 4Q in our view are transitory (DTG integration/over-fleeting related) and will pass in 2Q14. [Hertz Global] expects fleet to be rightsized by the end of 1Q, which is a positive. (3) Industry fundamentals are robust (note peer Avis Budget’s (CAR) results and guidance. (4) The [Hertz Equipment Rental Corp.] spin is a clear positive and, although expected, the details are better than expected, particularly share repurchase.

The timing of Hertz’s decision to spinoff HERC–so soon after United Rentals’ (URI) acquisition of  National Pump–surely caught some analysts by surprise but should be the big catalyst, Barron’s Teresa Rivas noted yesterday.

Top Cheapest Stocks To Buy For 2014

Shares of Hertz Global have gained 1.2% to $27.55 at 1:16 p.m., while Avis Budget Group has jumped 2.9% to $48.25 and United Rentals has advanced 0.5% to $91.34.

Sunday, March 16, 2014

Hot Gas Stocks To Buy For 2014

Hot Gas Stocks To Buy For 2014: Turcas Petrol AS (TRCAS)

Turcas Petrol AS (Turcas) is a Turkey-based integrated energy holding company that operates in the fields of fuel distribution, oil refining, power generation & trading, and import & wholesale of natural gas. The joint venture company, Shell & Turcas Petrol AS (STAS), carries out the Company's fuel distribution activities through a network of gas stations, delivering services across Turkey. Its Oil refining and petroleum production is undertaken by SOCAR & Turcas Energy (STEAS). The Company operates its power generation, trading and distribution activities through Turcas Energy Holding. The import, export and wholesale of natural gas are handled by Turcas Gas Trading. Advisors' Opinion:
  • [By Lyubov Pronina]

    Akbank sank 4.2 percent in Istanbul, falling for a sixth straight day, the longest streak in almost two months. Turcas Petrol AS (TRCAS) lost 1.6 percent after the Turkish energy company said Finance Ministry officials started an inspection at its venture with Royal Dutch Shell Plc.

  • source from Top Stocks Blog:http://www.topstocksblog.com/hot-gas-stocks-to-buy-for-2014.html

Saturday, March 15, 2014

Top Canadian Stocks For 2014

Top Canadian Stocks For 2014: Transcananda Pipelines Ltd.(TRP)

Transcanada Corporation operates as an energy infrastructure company in North America. The company operates in three segments: Natural Gas Pipelines, Oil Pipelines, and Energy. The Natural Gas Pipelines segment develops and operates energy infrastructure, including natural gas pipelines and regulated gas storage facilities. Its network of natural gas pipelines extends approximately 60,000 km tapping into gas supply basins in North America. The Oil Pipelines segment operates Keystone crude oil pipeline system, which includes completed 3,467 km Wood River/Patoka and Cushing Extension phases, and the proposed 2,673 km U.S. Gulf Coast Expansion. The Energy segment engages in the acquisition, development, construction, ownership, and operation of electrical power generation plants; the purchase and marketing of electricity; the provision of electricity account services to energy and industrial customers; and the development, construction, ownership, and operation of non-regulat ed natural gas storage in Alberta. The company was founded in 1951 and is headquartered in Calgary, Canada.

Advisors' Opinion:
  • [By Dimitra DeFotis]

    The crisis in Ukraine and Russia’s tactics make U.S. assets look more secure and more valuable: some U.S. refiners that could export fuel, utility holding companies that could export liquefied natural gas, and related pipeline companies could see even more benefits, longer-term,  from the North American fracking and horizontal drilling boom. But approval of the TransCanada (TRP) Keystone XL pipeline is a necessary piece of that equation, Adams writes.

  • [By Aaron Levitt]

    The saga surrounding TransCanada's (TRP) Keystone XL pipeline system is getting a bit ridiculous. After years of delays, setbacks, protests and other headaches, things looked like they were heading in the ! right direction for the massive infrastructure project and potentially TRP stock.

  • [By Paul Ausick]

    The wait has been long, and still there is no resolution. On Friday afternoon, the U.S. Department of State released its supplemental environmental impact statement (SEIS) related to the Keystone XL pipeline project proposed by TransCanada Corp. (NYSE: TRP) to transport 830,000 barrels a day of western Canadian and northern U.S. Plains crude oil to Steele City, Nebraska, where it would link up with existing pipelines to continue on to the Gulf Coast.

  • source from Top Stocks Blog:http://www.topstocksblog.com/top-canadian-stocks-for-2014-2.html

Friday, March 14, 2014

Best Performing Stocks To Watch For 2014

Best Performing Stocks To Watch For 2014: Expedia Inc.(EXPE)

Expedia, Inc., together with its subsidiaries, operates as an online travel company in the United States and internationally. It provides travel products and services to leisure and corporate travelers, offline retail travel agents, and travel service providers through a portfolio of brands, including Expedia.com, hotels.com, Hotwire.com, Expedia Affiliate Network, Classic Vacations, Expedia Local Expert, Expedia CruiseShipCenters, Egencia, eLong, Inc., and Venere Net SpA. The company?s travel offerings consist of airline tickets, hotel rooms, car rentals, destination services, cruises, and package travel provided by various commercial airlines, lodging properties, car rental companies, destination service providers, cruise lines, and other travel product and service companies on a stand-alone and package basis. It also facilitates the booking of hotel rooms, airline seats, car rentals, and destination services from its travel suppliers; and acts as an agent in the transa ction, passing reservations booked by its travelers to the relevant travel provider. The company was founded in 1996 and is headquartered in Bellevue, Washington.

Advisors' Opinion:
  • [By Ben Rooney]

    Online travel companies Priceline (PCLN, Fortune 500) and Expedia (EXPE) are two of the biggest winners of the bull market. Priceline shares have surged 1,646% and Expedia has soared 1,182% during the past five years.

  • [By Rick Aristotle Munarriz]

    Shutterstock/Andrey Burmakin Folks are turning to the Internet more and more in planning business trips and personal getaways -- and investors are cashing in on the trend. Shares of Orbitz Worldwide (OWW) soared 18 percent last week after posting better than expected quarterly results. Revenue climbing 4 percent and profitability clocking in at 5 cents a share may not seem v! ery impressive, but analysts were settling for the volatile travel portal to merely break even on flattish revenue growth. Strength in its hotel bookings were more than enough to offset weakness in airline reservations. Orbitz Worldwide's larger and faster-growing peers priceline.com (PCLN) and Expedia (EXPE) went along for the ride, climbing 7 percent and 4 percent respectively. They both went on to hit new all-time highs. Seeing an industry laggard start to grow profitably again -- and Orbitz Worldwide is calling for modest continued growth into 2014 -- was enough to get the market behind the popular providers of lodging, air travel, car rental, cruise and vacation package reservations. This isn't just a one-week phenomenon. Priceline and Expedia shares have soared 174 percent and 171 percent since the end of 2011. Orbitz Worldwide has also more than doubled in that time, and it's up a whopping 223 percent since the start of 2013. The Ins and Outs of Inn Outings Orbitz Worldwide's report would have been better if it wasn't held back by an 11 percent decline in airline ticket sales. Priceline and Expedia are growing their airfare sales, but modestly, compared to their hotel reservations. This isn't a surprise. Airlines have done a good job of marketing directly to passengers. There are a lot of people on frequent flyer programs, so they often head directly to an air carrier's website when it's time to book a trip. Pricing is also pretty competitive between airlines. There may not be a lot of carriers offering the desired route, but they are quick to respond to what rivals are doing. Th

  • source from Top Stocks Blog:http://www.topstocksblog.com/best-performing-stocks-to-watch-for-2014.html

Thursday, March 13, 2014

Best Cheap Stocks To Watch For 2014

Best Cheap Stocks To Watch For 2014: Partner Communications Company Ltd.(PTNR)

Partner Communications Company Ltd. provides various telecommunications services in Israel. It offers cellular telephony services on GSM/GPRS and UMTS/HSDPA networks. The company also provides basic services, including domestic mobile calls, international dialing, roaming, voice mail, short message services, intelligent network services, content based on its cellular portal, data and fax transmission, and other services. In addition, it offers Internet services provider services that provides access to the Internet, as well as home WiFi networks; value added services, such as anti-virus and anti-spam filtering; and transmission services; and Web video on demand services, music tracks, and games. Further, the company provides voice over broadband and primary rate interface fixed-line telephone services; and data capacity services. Additionally, it offers content services comprising voice mail, text, and multimedia messaging, as well as downloadable wireless data application s, including ring tones, music, games, and other informational content; and sells handsets, phones, routers, and related equipment. The company markets its products through its sales centers, business sales representatives, traditional networks of specialized dealers, and non-traditional networks of retail chains and stores under the Orange brand name. Partner Communications Company Ltd. was founded in 1997 and is headquartered in Rosh Ha-ayin, Israel.

Advisors' Opinion:
  • [By Roberto Pedone]

    Another under-$10 wireless telecom player that's starting to move within range of triggering a major breakout trade is Partner Communications (PTNR), a telecommunications company, provides cellular and fixed-line telecommunication services in Israel. This stock is off to a strong start in 2013, with shares up sharply by 29%.

    If you ! take a look at the chart for Partner Communications, you'll notice that this stock has been trending sideways for the last month, with shares moving between $7.28 on the downside and $7.96 on the upside. Shares of PTRN are bucking the overall market weakness today as the stock starts to move within range of triggering a breakout trade above the upper-end of its sideways trading chart pattern.

    Market players should now look for long-biased trades in PTNR if it manages to break out above some near-term overhead resistance levels at $7.80 to $7.85 a share and then once it clears its 52-week high at $7.96 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average volume of 107,303 shares. If that breakout triggers soon, then PTNR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $10 to $12.20 a share.

    Traders can look to buy PTNR off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $7.38 to $7.28, or below its 50-day at $6.97 a share. One can also buy PTNR off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

  • source from Top Stocks Blog:http://www.topstocksblog.com/best-cheap-stocks-to-watch-for-2014.html

Wednesday, March 12, 2014

The Obama budget: What taxpayers should know

President Obama's budget proposal for the federal government's 2015 fiscal year is more than 1,500 pages long, with $3.9 trillion in spending proposals. But even though most political experts have already declared the Obama budget dead on arrival, the initiatives that the president chose to stress in his budget still carry valuable insight into what the administration will see as its priorities for the rest of this election year. Smart taxpayers will want to use that insight to predict coming tax changes that could get through Congress and past the president's desk. Let's take a look at some of the major tax provisions of the Obama budget and how they would affect you.

Raising tax revenue

The Obama budget includes several provisions that would increase taxes dramatically on upper-income earners. The largest is a proposal to put a 28% limit on the value of itemized deductions and certain items that are excluded from taxable income, including contributions to traditional IRA, 401(k), and other qualified retirement plan accounts. Although those in the 28% tax bracket and below would still get the full value of such tax breaks, those in the 33%, 35%, and 39.6% brackets would see the value of their deductions drop substantially. The White House Budget Office projects that such a move could raise $600 billion over the next 10 years.

Other tax-raising items include the implementation of what has become known as the "Buffett Rule," which would ensure that those making $1 million or more pay an effective tax rate of at least 30%, regardless of deductions other than charitable contributions. The impact of the provision is relatively small, with estimates of about $53 billion in revenue over the next decade, but the tax is squarely targeted at the highest levels of income.

Also, the president would limit the maximum balance in tax-favored retirement accounts so as to prevent wealthy individuals from establishing tax-deferred assets above certain levels. The exact limits are determined by com! plex actuarial calculations geared toward establishing the maximum annuity allowed under pension law, but according to estimates from the Tax Policy Center, the limits last year for a 62-year-old would have been $3.4 million, but a 40-year-old's limit would have been only $1 million.

The budget also aims to cut certain loopholes. Private-equity firms Carlyle Group, Apollo Global Management and Blackstone Group won't like provisions ending the tax preference for carried interest. Even though Carlyle, Apollo, and Blackstone won't necessarily see their corporate profits affected, the ripple effect could have negative effects in the industry and have implications for compensation costs and other expenses. In addition, S corporation shareholders and other professional services firms will no longer be able to shelter income from payroll taxes by splitting it into salary versus business profits.

Finally, the budget would raise estate taxes back to their levels from several years ago. The rate on taxable estate would rise to 45%, and the exemption amount would drop from its current $5.34 million to $3.5 million.

Tax cuts

On the other side of the budget equation, most of the president's budget proposals cutting taxes aim at lower-income taxpayers. Expansion of the earned income tax credit will double the maximum amount of the credit for families without children, boosting the amount paid under the credit by almost $60 billion over the next decade. In addition, the budget boosts the value of the Child and Dependent Care Tax Credit for those with children under age five, providing for up to a 65% credit on qualified expenses up to $3,000 plus 30% for the next $1,000.

Educational assistance is also a focus of the budget. Proposals include excluding Pell Grants from income tax and making the education-related American Opportunity Tax Credit permanent, resulting in more after-tax assistance for those who fall under the income limits for the credit and various other educational tax incent! ives.

!

What to watch for

Again, with a Republican-controlled House, the Obama budget doesn't stand a chance of passing in its current form. But there's actually a reasonable chance that at least some of these tax provisions could make it into law, especially on the tax-cut side. As the budget debate heightens throughout this election year, watch closely to see where the two parties draw battle lines and where, if anywhere, they find consensus.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.



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Tuesday, March 11, 2014

Top 10 High Dividend Stocks For 2015

Top 10 High Dividend Stocks For 2015: Cadence Pharmaceuticals Inc.(CADX)

Cadence Pharmaceuticals, Inc., a biopharmaceutical company, focuses on acquiring, in-licensing, developing, and commercializing proprietary product candidates principally for use in the hospital setting in the United States and Canada. It holds rights to OFIRMEV injection, a proprietary intravenous formulation of acetaminophen for the management of pain and reduction of fever in adults and children. The company in-licenses rights to OFIRMEV from Bristol-Myers Squibb Company, which sells intravenous acetaminophen in Europe and other markets for the treatment of acute pain and fever under the Perfalgan brand name. Cadence Pharmaceuticals, Inc. was founded in 2004 and is headquartered in San Diego, California.

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

    Equities Trading UP
    Cadence Pharmaceuticals (NASDAQ: CADX) shot up 26.42 percent to $14.02 after Mallinckrodt plc (NYSE: MNK) announced its plans to acquire Cadence Pharma for $14.00 per share in cash.

  • [By Paul Ausick]

    Stocks on the Move: Zulily Inc. (NASDAQ: ZU) is up 71.4% at $37.70 after its IPO today. Cadence Pharmaceuticals Inc. (NASDAQ: CADX) is up 33.8% at $7.87 on a patent ruling. Electronic Arts Inc. (NASDAQ: EA) is down 7.4% at $24.04.

  • source from Top Stocks Blog:http://www.topstocksblog.com/top-10-high-dividend-stocks-for-2015.html

Monday, March 10, 2014

Top Blue Chip Stocks To Own For 2015

Our top pick for 2014 was founded in 1910, and has been at the forefront of the constantly changing area of high technology ever since, says Russ Kaplan, editor of the Heartland Advisor.

Our pick is the well-known blue chip company International Business Machines (IBM). Technology has changed drastically since 1910, and IBM has always risen to a challenge, which, over the years, has left many high tech companies in the dust.

I've been following IBM since the early 1980s, and it's gone through periods when Wall Street analysts have been skeptical of its future. Today is one of those times, providing you with an excellent buying opportunity.

The skepticism comes from the supposed inability to react to such developments as the progression from typewriters to computers, and from mainframes to personal computers.

After that, IBM got out of the personal computer business, which had become a commodity with low prices, to a service company. It sold its computer manufacturing business to Lenovo (LNVGF).

Top Blue Chip Stocks To Own For 2015: Apple Inc.(AAPL)

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

Advisors' Opinion:
  • [By Evan Niu, CFA]

    Over the past two quarters following the release of the iPhone 5, Apple (NASDAQ: AAPL  ) has been caught off guard by surprisingly strong demand for the iPhone 4. The company doesn't disclose specific product mix data, but management has acknowledged that the iPhone 4 has been in high demand.

  • [By Douglas A. McIntyre]

    Ralph de la Vega, the CEO of AT&T Mobility, the wireless arm of AT&T Inc. (NYSE: T) is considered an expert in one business that Microsoft eagerly wants to control. Microsoft tried to buy into the mobile operating systems and apps business through its venture with Nokia Corp. (NYSE: NOK). The deal has floundered as the handset company has lost share to Apple Inc. (NASDAQ: AAPL)�and Samsung.

  • [By Valuentum]

    Verizon added 1.1 million net retail wireless connections and 927,000 net retail postpaid connections in the period, leading to quarter-end marks of 101.2 million total retail connections and 95.2 million total retail postpaid connections. Wireless service revenue advanced 8.4%, and the company's wireless operating and EBITDA margins were wonderful, coming in at 22.8% and 51.1% in the period, respectively. The firm noted that Apple's (AAPL) iPhone accounted for 51% of activations in the period (up from 43% in the second quarter and 46% in the year-ago period), suggesting the smartphone maker is picking up share in the US market. The firm's wireline business saw a 1% drop in total revenue, though segment EBITDA did nudge higher from the same quarter last year. All-in, Verizon's consolidated revenue advanced 4.4%, driving adjusted earnings per share to $0.77, roughly a 20% increase compared with adjusted earnings per share of $0.64 in the prior-year period.

Top Blue Chip Stocks To Own For 2015: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:
  • [By M. Joy, Hayes]

    Shareholders, keep out
    A few years ago, when the SEC considered introducing a new regulation requiring public companies to include some shareholder-nominated candidates for the board of directors on their proxy statements, Chevron (NYSE: CVX  ) objected.

  • [By Tyler Crowe]

    Activity in offshore oil drilling has been red hot lately. The U.S. government timed its most recent Gulf of Mexico auction almost perfectly, as it came right on the heels of Anadarko Petroleum's and Chevron's (NYSE: CVX  ) announcements that the two companies had hit major paydirt at a couple of its rigs. The U.S. isn't the only country finding sucess offshore, either. This past week, Brazil completed its first oil and gas lease auction in five years, and apparently the long wait had exploration and production companies drooling. The country pulled in its largest auction revenue ever, about 2.88 billion Brazilian reais ($1.4 billion).

  • [By Matt Thalman]

    ExxonMobil (NYSE: XOM  ) reports on Thursday, while fellow energy stock Chevron (NYSE: CVX  ) pulls in on Friday. For Exxon, the Street wants to see EPS of $1.90 on revenue of $105.54 billion. A year ago, Exxon posted EPS of $1.80 and sales of $127.36 billion. Earnings are thus set to rise, and that's what really matters. The EPS estimate of $1.90 is an average of 21 analysts' opinions, with the high end at $2.05 per share and the low end coming in at $1.63. The expected 17.1% year-over-year revenue drop for Q2 isn't a great sign, and it could pose a big problem if Exxon misses expectations. �

  • [By Susan J. Aluise]

    Also, T is teaming up with IBM (IBM) on the ��nternet of Things��— combining their security, cloud capabilities and analytics platforms to jump-start Smart City initiatives. These new market opportunities have the potential to actually boost the performance of T stock over the next couple of years, too.

    Chevron (CVX)

    Chevron (CVX) is down 9% since Dec. 27. CVX stock has a current dividend yield of 3.5% and is trading at a fairly cheap 10 times forward earnings. CVX stock has gained ground this week despite an explosion at a fracking well in Pennsylvania on Tuesday — and the questionable PR tactic of offering free pizza to residents living near the site.

Best Canadian Stocks To Own For 2015: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:
  • [By Ben Levisohn]

    The S&P 500 dropped 0.5% to 1,781.56 as Xerox (XRX) and E*Trade Financial (ETFC) fell. The�Dow Jones Industrial Average outperformed for once: Blue chips fell 0.3% to 15,837.88 as Caterpillar’s (CAT) big gain helped mitigate the big drops in Visa (V) and Goldman Sachs (GS). Still, the Dow fell for a fifth consecutive day, its longest slide since Dec. 5, 2013.

Top Blue Chip Stocks To Own For 2015: Philip Morris International Inc(PM)

Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.

Advisors' Opinion:
  • [By Sean Williams]

    Russia's move could pose a threat to global cigarette producers such as Philip Morris International (NYSE: PM  ) and British American Tobacco. Although both tobacco producers operate around the globe, a dramatic shift in curbing smoking from the world's third-largest tobacco consumer is bound to sting. In Philip Morris' case, according to Trefis, Russia accounted for approximately 6% of its total revenue last year, and the Eastern Europe, Middle East and Africa region accounted for roughly one-quarter of sales.�

  • [By Efficient Alpha]

    Philip Morris International (PM) is a favorite of mine, not only for its 4% dividend but also for its protection against global inflationary pressures. The company can pass through higher commodity prices and smokers will keep coming back for more. The company has 16% of the international market and is making strong progress in China. Asia accounts for 36% of sales, followed by the EMEA region (27%), the EU (26%) and Latin America/Canada (11%). Shares have posted an annual return of 15% since its spinoff in 2008.

  • [By Fede Zaldua]

    Imperial trades cheaply and pays a great, sustainable and for-ever-growing 4.5% cash dividend yield. The company's 2014 10.4 times P/E multiple represents a 40% discount to what most European consumer staples sell for. Besides, the owner of brands such as Davidoff and Gauloises, trades at a much more conservative level than its direct tobacco peers. Philip Morris International (PM) and British American Tobacco (BTI) sell for 2014 15 and 14.2 times earnings, respectively.

  • [By abirk]

    Philip Morris International (PM) is reaching new heights in 2013. With its products being sold in 180 countries it is the proud owner of about 15 cigarette brands- Marlboro, Merit, Parliament, Virginia Slims, L&M, and Chesterfield being some of them. FY2013 looks bright for this tobacco giant. Reasons Why 2013 Is Looking Bright

Top Blue Chip Stocks To Own For 2015: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:
  • [By E.S. Browning]

    Investors face two problems: The first is earnings. Of the 52 companies in the S&P 500 index that have reported fourth-quarter results, 52% beat expectations according to S&P Capital IQ, below the average 67% of the past four quarters. Moreover, revenue gains have been weak. Earnings season has just begun and money managers will be watching coming reports closely, including from International Business Machines Corp.(IBM), Verizon Communications Inc.(VZ) and McDonald�� Corp. this week.

  • [By Matt Thalman]

    Furthermore, the Dow's most heavily weighted stock, IBM (NYSE: IBM  ) , lost 1.11% this week. Combine that with all the Dow's losers this past week (the others were Alcoa, Intel, and Coca-Cola), and you get an index weighting of 26.17%. But with no weighting, seven stocks out of 30 would account for just 23.33% of the index.

  • [By Paul Ausick]

    Google Inc. (NASDAQ: GOOG), with its driverless cars, is also committed to being the leader in new technology for automakers. Microsoft Corp. (NASDAQ: MSFT) and International Business Machines Corp. (NYSE: IBM) are other contenders for platform dominance.

  • [By Ben Levisohn]

    The Dow’s comeback–if erasing a 0.4% drop can be called a comeback–was especially impressive considering that the four highest-priced stocks, and the ones with the biggest weights in the index, finished in the red. Visa (V) fell 0.6% to $220.55–perhaps a side-effect of this American Express (AXP) upgrade?–while Goldman Sachs (GS) fell 0.6% to $161 after naming a third co-head to its securities division, and 3M (MMM) declined 0.5% at $129.70. International Business Machines (IBM) dipped 0.1% to $177.14.

Top Blue Chip Stocks To Own For 2015: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:
  • [By Demitrios Kalogeropoulos]

    Chipotle (NYSE: CMG  ) has been talking about a potential price hike for a while, but it hasn't touched menu prices in over a year. Meanwhile, competitors like Panera Bread (NASDAQ: PNRA  ) and McDonald's (NYSE: MCD  ) �have boosted prices, giving a lift to both sales and profits. In the video below, Fool contributor Demitrios Kalogeropoulos discusses what's kept Chipotle from doing the same, and what investors can expect from the company in the quarters ahead.

  • [By Steve Heller]

    The workaround
    For whale-sized retailers, PayPal has developed a little workaround known as self-checkout. Last year, McDonald's (NYSE: MCD  ) ran a 30-store trial in France to test PayPal's self-checkout operation, which ultimately aims to reduce the number of cashiers needed to function. Customers place and pay for their orders on a smartphone and then wait in a queue to pick up their food.

  • [By Katie Spence]

    As you can see, leisure and hospitality make up 34%. Most of those jobs are in restaurants and other food services -- like McDonald's (NYSE: MCD  ) , Chipotle Mexican Grill (NYSE: CMG  ) , Yum Brands' (NYSE: YUM  ) Taco Bell, and Starbucks (NASDAQ: SBUX  ) . Consequently, if the Fair Minimum Wage Act is passed, it'll have the biggest impact on fast-food and restaurant companies.

  • [By Andrew Marder]

    Starbucks has been pushing for more food income for the past year, and this is just one small step on its long road. The long-term plan for Starbucks is to gain a bigger foothold in the lucrative U.S. food market and help it compete with other cafes like Panera (NASDAQ: PNRA  ) and McDonald's (NYSE: MCD  ) . Based on those goals, things are looking good for the coffee retailer.

Top Blue Chip Stocks To Own For 2015: Colgate-Palmolive Company(CL)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:

  • [By Ong Kang Wei]

    Another example of such a product is Colgate-Palmolive (CL)'s Colgate toothpaste. I do not think I have to elaborate much here. Toothpaste is needed in our everyday life, and we will definitely have to buy more toothpaste after we have finished using a packet of it, ensuring that Colgate gets more and more sales over the years.

Sunday, March 9, 2014

3 Stocks Under $10 Moving Higher

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

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

>>5 Big Charts to Trade for Gains

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

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

WidePoint

WidePoint (WYY) provides technology-based products and solutions to government sector and commercial markets primarily in the U.S. This stock closed up 4.1% to $1.51 in Thursday's trading session.

Thursday's Range: $1.44-$1.54

52-Week Range: $0.45-$1.95

Thursday's Volume: 1.89 million

Three-Month Average Volume: 1.27 million

From a technical perspective, WYY spiked notably higher here right above some near-term support at $1.40 with strong upside volume. This spike is starting to push shares of WYY within range of triggering a big breakout trade. That trade will hit if WYY manages to take out its 50-day moving average of $1.56 to some more key overhead resistance at $1.67 with strong volume.

Traders should now look for long-biased trades in WYY as long as it's trending above key near-term support levels at $1.40 or at $1.35 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.27 million shares. If that breakout takes hold soon, then WYY will set up to re-test or possibly take out its next major overhead resistance levels at $1.80 to its 52-week high at $1.95. Any high-volume move above $1.95 will then give WYY a chance to trend north of $2.

Quantum Fuel Systems Technologies Worldwide

Quantum Fuel Systems Technologies Worldwide (QTWW) engages in the design, development and production of compressed natural gas storage tanks and packaged fuel systems, and other fuel and propulsion systems for alternative fuel vehicle applications in the U.S. and internationally. This stock closed up 6% to $8.80 a share in Thursday's trading session.

Thursday's Range: $8.25-$8.87

52-Week Range: $1.85-$9.30

Thursday's Volume: 508,000

Three-Month Average Volume: 662,079

From a technical perspective, QTWW ripped sharply higher here right off its 50-day moving average of $8.02 with decent upside volume. This spike higher on Thursday is quickly pushing shares of QTWW within range of triggering a big breakout trade. That trade will hit if QTWW manages to take out some key near-term overhead resistance levels at $9.24 to its 52-week high at $9.30 with high volume.

Traders should now look for long-biased trades in QTWW as long as it's trending its 50-day moving average at $8.02 and then once it sustains a move or close above those breakout levels with volume that hits near or above 662,079 shares. If that breakout materializes soon, then QTWW will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $11 to $12.

TearLabs

TearLabs (TEAR) operates as an ophthalmic device company. This stock closed up 4.1% to $7.74 a share in Thursday's trading session.

Thursday's Range: $7.37-$7.83

52-Week Range: $5.50-$15.18

Thursday's Volume: 310,000

Three-Month Average Volume: 461,710

From a technical perspective, TEAR spiked sharply higher here right above some near-term support at $7 with decent upside volume. This stock has been uptrending strong for the last month, with shares moving higher from its low of $6 to its recent high of $8.14. During that uptrend, shares of TEAR have been making mostly higher lows and higher highs, which is bullish technical price action. This spike on Thursday is quickly pushing shares of TEAR within range of triggering a near-term breakout trade. That trade will hit if TEAR manages to take out its 50-day moving average of $8.10 to some more near-term overhead resistance at $8.14 with high volume.

Traders should now look for long-biased trades in TEAR as long as it's trending above Thursday's low of $7.37 or above $7 and then once it sustains a move or close above those breakout levels with volume that hits near or above 461,710 shares. If that breakout kicks off soon, then TEAR will set up to re-test or possibly take out its next major overhead resistance levels at $9 to $10, or even its 200-day moving average at $10.47.

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

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>4 Big-Volume Stocks to Trade for Breakouts



>>5 Stocks Ready to Explode Higher



>>5 Monster Momentum Stocks to Trade

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

CNBC.com and Forbes.com.

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


Friday, March 7, 2014

Is Gold Safe to Buy? Here are 13 Gold Stocks Saying “No”

Facebook Logo Twitter Logo RSS Logo Louis Navellier Popular Posts: 8 Keys (And 24 Stocks) To Build Wealth TodayGoogle Stock Rides Higher on Earnings and InnovationAmazon Stock Falling For a Reason: Slower Growth Recent Posts: Is Gold Safe to Buy? Here are 13 Gold Stocks Saying “No” Will Shareholders Subscribe to Comcast, Time Warner Merger? 3 Industrial Stocks Building on Strong Fundamentals View All Posts

Is gold headed for a comeback? At first glance, it sure looks like it. Gold futures just cracked $1,300 an ounce for the first time in three months. This is officially the longest rally in gold prices since 2011.

But if you look more closely at what gold was up to before the latest rebound, you’ll see that the metal hasn’t quite regained its luster. While 2014 may be a better year for gold, it’s simply too risky to put new money in the yellow metal. Or, in companies that mine gold, for that matter.

That’s because there are several other headwinds kicking up.

First, there’s the Federal Reserve’s newly revealed tapering plan. Essentially, the more confidence there is in central banks, the worse it is for gold and other precious metals. So because the Fed implied that it may not conduct quantitative easing “to infinity,” confidence in the Fed improved over the fall, hurting gold in subsequent trading days.

The other factor weighing down the gold market is that a lot of gold has just become available on the world markets. As part of the new nuclear agreement struck with Iran last month, sanctions were removed on $8 billion in Iran’s frozen assets. This means that the country will rely less on gold, which it had previously traded for crude oil under the economic sanctions.

Right now, what the gold market needs is a lot more instability among central banks as well as tension in the Middle East—uncertainty makes gold more appealing to nervous investors. Recently we’ve seen some jitters surrounding rising rates in India and a slowdown in China’s manufacturing, so that has rekindled interest in gold for some.

Even so, I don’t think this alone will sustain gold prices going forward. So I don’t recommend you go loading up on gold stocks right now. In fact, I ran 13 of the largest gold companies through Portfolio Grader this morning, and I was shocked to see how poorly all of these stocks performed in my screens.

Just take a look:

13 Gold Stocks to Sell Now
Ticker Company Quantitative Grade Fundamental Grade My Rating
ABX Barrick Gold F D Strong Sell
AEM Agnico-Eagle Mines D D Sell
AU AngloGold Ashanti F D Strong Sell
AUY Yamana Gold F D Strong Sell
BVN Compania de Minas Buenaventura SA F D Strong Sell
EGO Eldorado Gold F D Sell
GFI Gold Fields F D Strong Sell
GG Goldcorp D C Sell
GOLD Randgold Resources D C Sell
KGC Kinross Gold F D Strong Sell
NEM Newmont Mining F D Strong Sell
NGD New Gold F D Strong Sell
RGLD Royal Gold C D Sell

My publisher on the East Coast tells me that they got quite a lot of snow today, so if you’re from around those parts I hope you’re staying warm and dry. .

Thursday, March 6, 2014

Service-Sector Growth at Slowest Since in 4 Years

Top 5 Blue Chip Stocks To Buy For 2015

Luke Sharrett/Bloomberg via Getty Images NEW YORK -- Growth in the U.S. services sector slowed in February, coming in below forecasts as the employment index fell into contractionary territory for the first time in more than two years, an industry report showed Wednesday. The Institute for Supply Management said its services sector index fell to 51.6 last month, the worst read for the index since February 2010 as bad weather impacted business activity. The results were below the January read of 54, as well as analyst expectations for a read of 53.5. February marked the 50th straight month the index was above 50, the level that separates expansion and contraction, though the pace of growth was well below the seven-year high of 57.9 hit in August. The employment index dropped in February to 47.5 from 56.4, falling below 50 for the first time since December 2011. It was the lowest read for the subindex since March 2010. The gauge of business activity fell to 54.6 from 56.3 in January and was below expectations for a read of 55.1. On a positive note, the new orders index rose to 51.3 in February from 50.9 in January.

Sunday, March 2, 2014

Top BD Execs Predict What the Industry Will Look Like in 10 Years

A panel of top BD executives gave their predictions on what the industry will look like 10 years from now — as well as what it will take for advisors and broker-dealers to survive that long.

Tony Batman, chairman and CEO of 1st Global, said that hybrid advisors were best suited to serve clients’ many needs. Amy Webber, president and COO of Cambridge Investment Research, agreed that the hybrid model was the “best” one.

Both Batman and Wayne Bloom, CEO of Commonwealth Financial Network, also agreed that those advisors who can master wealth decumulation — as accumulation becomes passé for retiring clients — will fare well. Advisors who can successfully move from the accumulation phase to the decumulation phase and “do this well and provide retirement income will generate assets,” Bloom said.

Added Batman: “Wealth decumulation is complicated, but our industry is the only one with the answers.”

While all three noted the importance of technology to firms’ survival, Bloom noted that advisors will also be dealing with a “different set of clients,” and that they will have to develop “new communication skills.”

Webber added that while clients will change, the make-up of firms will have to change as well. The “most successful” advisors will have “three generations” of advisors working there, and also more women.

Batman pointedly noted the industry’s failure to go after the next generation of clients: “One in 4 of top 1% of earners are under age 40 — they are income-rich and are totally neglected.”

---

Check out ‘Improving’ FINRA Among Top Goals for BD Lobby on ThinkAdvisor.

Saturday, March 1, 2014

U.S. sues college chain ITT over loans

The Consumer Financial Protection Bureau on Wednesday sued ITT Educational Services, accusing the national college chain of predatory lending and laying down a stern warning to other for-profit colleges.

"ITT marketed itself as improving consumers' lives but it was really just improving its bottom line," said Richard Cordray, director of the U.S. agency.

"We believe ITT used high-pressure tactics to push many consumers into expensive loans destined to default. Today's action should serve as a warning to the for-profit college industry that we will be vigilant about protecting students against predatory lending tactics," he said in a CFPB statement.

The lawsuit marks the CFPB's first public enforcement action against a company in the for-profit college industry.

ITT's comments were very limited on Wednesday. "We don't comment on pending litigation, other than to say that we believe that the bureau's claims are without merit and that we intend to vigorously defend ourselves against the charges," said Nicole Elam, vice president of government relations, in a statement.

The company's stock fell on the news of the lawsuit, closing down 9% to $32.40 a share Wednesday.

ITT owns and operates more than 135 ITT Technical Institutes and Daniel Webster College. ITT/ESI serves more than 55,000 students at its campuses in 39 states and online.

ITT's tuition costs rank among the highest in the country in the for-profit industry, says CFPB. Earning an associate's degree at ITT can cost more than $44,000 and bachelor's degree programs can cost up to $88,000, the bureau says. That is significantly higher than the cost of similar degrees at a community college or a public four-year institution, says CFPB.

The bureau's complaint alleges that ITT encouraged new students to enroll at ITT by providing them so-called "tuition gap" funding with a zero-interest loan called "Temporary Credit." This loan typically had to be paid in full at the end of the student's first academic year! . But, the suit claims, ITT knew from the outset that many students would not be able to repay their balances or fund their next year's tuition gap.

Best High Dividend Stocks To Buy Right Now

The CFPB alleges that between July and December 2011, ITT pushed students into repaying their temporary credit and funding their second-year tuition by taking out high-cost private student loans. Students were rushed through the loan-application process without getting a fair chance to understand the obligations they were taking on.

Borrowers with credit scores under 600, typical for many ITT students, paid 10% origination fees and interest rates as high as 16.25%, according to the CFPB's complaint.

ITT knew many loans would not be repaid, projecting a 64% default rate on its students' private loans, the complaint says.