Friday, June 21, 2013

5 Best Income Stocks To Own For 2014

Cole Campbell is a freshman at St. Albans School in Washington, D.C. He recently spent a day at Fool HQ learning more about the business and investing. What follows is his bullish thesis for a business he chose to study, Under Armour.

Under Armour (NYSE: UA  ) has performed tremendously in the stock market since it first went public in 2005, and it looks to sustain its rapid rate of growth over the coming years. With a market cap that is roughly one-tenth of its rival Nike's, Under Armour has plenty of room to grow and increase its market share in the athletic apparel and footwear market. The company continues to innovate by introducing new products and materials, such as its recent "Alter Ego" line of shirts that have sold extremely well.

Innovation
From Under Armour's beginning in selling compression shirts to wick away sweat, it has expanded its product line and innovated continuously. While a large portion of its income still comes from its original innovations, like fabrics that keep you cool when it's hot or warm when it's cold, Under Armour recently introduced a line of basketball shoes and yoga pants. The company has gained a large market share of several niches, and its CEO, Kevin Plank, has said, "We haven't made our defining product yet."

5 Best Income Stocks To Own For 2014: Linde AG (LNAGF)

Linde AG is a German company engaged in the gases and engineering sector. It operates two divisions: Gases and Engineering, as core divisions, as well as Gist. The Gases Division includes Healthcare, producing medical gases; and Tonnage, as its two global business units; as well as the two business areas Merchant and Packaged Gases, offering liquefied and cylinder gases, and Electronics. The Company�� products are used in the energy sector, for steel production, chemical processing, environmental protection and welding, as well as in food processing, glass production and electronics. The Engineering division offers planning, project development and construction of turnkey industrial plants used in fields, such as petrochemical and chemical industries, in refineries and fertilizer plants, to recover air gases, to produce hydrogen and synthesis gases, to treat natural gas, and in the pharmaceutical industry. As of August 13, 2012, the Company acquired Lincare Holdings Inc.

5 Best Income Stocks To Own For 2014: DepoMed Inc.(DEPO)

Depomed, Inc., a specialty pharmaceutical company, develops and commercializes pharmaceutical products based on its proprietary oral drug delivery technologies. It sells Glumetza metformin hydrochloride extended-release tablets that are used as a once-daily treatment for adults with type 2 diabetes in the United States and Canada. The company also focuses to commercialize Gralise gabapentin tablets for the management of postherpetic neuralgia. Its products under development include Serada, which is in Phase III clinical trials for the treatment of menopausal hot flashes; DM-1992 that completed second Phase I study for the treatment of Parkinson's disease; and DM-3458, which completed proof of concept studies for gastroesophageal reflux disease. The company sells its Glumetza to wholesalers and retail pharmacies. It has collaboration or license arrangements with Santarus, Inc.; Merck & Co., Inc.; Covidien, Ltd.; Janssen Pharmaceutica N.V.; Boehringer Ingelheim International GMBH; and PharmaNova, Inc. The company was founded in 1995 and is based in Menlo Park, California.

Top 10 Semiconductor Stocks To Invest In 2014: AEterna Zentaris Inc.(AEZS)

Aeterna Zentaris Inc. operates as a late-stage drug development company specialized in oncology and endocrine therapy. Its lead oncology compounds include perifosine, a PI3K/Akt pathway inhibitor that is in Phase 3 registration trial for refractory advanced colorectal cancer and multiple myeloma; and AEZS-108, a doxorubicin-targeted conjugate in Phase II for the treatment of ovarian, endometrial, castration refractory prostate, and refractory bladder cancer. The company?s lead endocrinology compound, AEZS-130, is an oral ghrelin antagonist in Phase III trial as a diagnostic test for adult growth hormone deficiency. Its pipeline also includes earlier-stage compounds, such as AEZS-112 that is in a Phase I trial in advanced solid tumors and lymphoma, as well as AEZS-120, an anti-cancer vaccine in pre-clinical development. The company was founded in 1991 and is headquartered in Quebec City, Canada.

Advisors' Opinion:
  • [By Michael J. Ray]

    Lastly comes the dynamic duo of KERX and AEZS. These two companies are joined together by the drug Perifosine, an oral anti-cancer drug. KERX has the rights to the drug from a commercial license agreement in 2002 with Zentaris AG, which is a wholly owned subsidiary of AEZS. On top of that AEZS has also entered agreements with several other companies for the drug potential usage. Currently the company has agreements with Yakult Honsha (YKLTF.PK) for Japan, Handok for Korea, and Hikma (HKMPF.PK) Pharmaceuticals for Middle East and North Africa.

    Perifosine is an oral anti-cancer drug that is being tested to treat advanced colorectal cancer. It is also undergoing tests to see if it can treat a variety of other cancers as well. Needless to say, an oral anti-cancer drug that can combat multiple types of cancer would by nothing less than dynamic. Cancer treatments are big business, and if test prove successful then both of these companies should see a big demand for their share product.

    Like any dynamic duo, whether from the pages comics or elsewhere, they have their critics and naysayers. It is no different when it comes to Perifosine and the two companies in question. Most recently one finds a number of different types of negative press when it comes to the trials. Current arguments range from such statements that the trials didn't enroll identical patients, all the way to the more silly case that companies under a certain market cap have not been successful before, therefore the trial will fail. In the end what matters is if the science works or not. Does the drug do its job in fighting cancer and prolonging the patient’s life? No amount of trending analysis of market cap or second guessing the FDA approved trial will answer that question. Only the final results will answer the investor’s question.

    Until such time that the results are known, volatility in the stock price will be the name of the game. There is no distinct date that the data will be ready for the investor! s. In the case of Perifosine the clinical trial will end after there are 360 deaths, and that is expected sometime in the first quarter of the year. With this uncertainty comes the all the arguments against the stock that was mentioned above. As a result the stock price will swing wildly as the next bit of news or rumor hits the wire. With initial results due very soon though, investor will not have to wait long to see how it all pans out. 2012 will be an exciting time for the dynamic duo.

5 Best Income Stocks To Own For 2014: Brookline Bancorp Inc.(BRKL)

Brookline Bancorp, Inc. operates as the holding company for Brookline Bank, Bank Rhode Island, and The First National Bank of Ipswich, which provide commercial and retail banking services, and cash management and investment services to customers in Central New England. The company accepts various deposit products, including non-interest-bearing checking accounts, interest-bearing NOW accounts, savings accounts and money market savings accounts, certificate of deposit accounts, individual retirement accounts, and other qualified plan accounts. Its loan portfolio comprises first mortgage loans secured by commercial, multi-family, and residential real estate properties; auto loans; loans to business entities consisting of commercial lines of credit; and loans to condominium associations, as well as loans for financing equipment used by small businesses. Brookline Bancorp, Inc. also provides financing for construction and development projects, home equity, and other consumer l oans; and loans to finance coin-operated laundry, dry cleaning, and convenience store equipment and businesses. As of January 25, 2012, it operated 43 branches in Massachusetts and Rhode Island. The company was founded in 1871 and is headquartered in Brookline, Massachusetts.

5 Best Income Stocks To Own For 2014: Radio One Inc.(ROIAK)

Radio One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. It engages in the radio broadcasting operation that primarily targets African-American and urban listeners. As of December 31, 2011, the company owned and operated 54 broadcast stations located in 16 urban markets. It also operates an African-American targeted cable television network and Tom Joyner Morning Show; and owns online platform serving the African-American community through social content, news, information, and entertainment, as well as operates various online social networking Websites, including BlackPlanet, MiGente, and Asian Avenue. The company was founded in 1980 and is based in Lanham, Maryland.

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