Friday, January 31, 2014

Whisper Number: How Will Analog Devices Investors React to Earnings?

Analog Devices, Inc. (NASDAQ:ADI) is expected to report earnings on Tuesday, November 26. The whisper number is $0.57, one cent behind the analysts’ estimate. Analog Devices has a 66 percent positive surprise history, having topped the whisper in 27 of the 41 earnings reports for which we have data.

Earnings history:

- Beat whisper: 27 qtrs
- Met whisper: 2 qtrs
- Missed whisper: 12 qtrs

Our primary focus is on post earnings price movement. Knowing how likely a stock’s price will move following an earnings report can help you determine the best action to take (long or short). In other words, we look at what happens when the company beats or misses the whisper number expectation.

The table below indicates the average post earnings price movement within a one and thirty trading day timeframe.

ADI1113A

The strongest price movement of +1.0 percent comes within twenty trading days when the company reports earnings that beat the whisper number, and -3.8 percent within thirty trading days when the company reports earnings that miss the whisper number. The overall average price move is ‘as expected’ (beat the whisper number and see strength, miss and see weakness) when the company reports earnings.

The table below indicates the most recent earnings reports and short-term price reaction.

ADI1113B

The company has reported earnings ahead of the whisper number in one of the past four quarters with a whisper number. In the comparable quarter last year, the company did not have a whisper number. Last quarter, the company reported earnings four cents ahead of the whisper number. Following that report, the stock realized a 2.8 percent gain in twenty trading days. Overall historical data indicates the company to be (on average) an ‘as expected’ price reactor when the company reports earnings.

Enter your expectation and view more earnings information here or let us know your expectation in the comments section below.

John Scherr is the founder and President of WhisperNumber.com, an independent financial research firm focused on earnings expectations. He is a regular contributor to CNBC and Fox Business Network, and has been featured in Barron's, The Wall Street Journal, and MarketWatch. He is considered a leading expert on 'whisper numbers' and post earnings price movement analysis. WhisperNumber.com provides specific earnings trade alerts to take advantage of earnings report price movement with their Whisper Reactors subscription service.

Investing Insights: Can Google Continue to Trend Higher?

J.C. Penney dropped from S&P 500 index

NEW YORK (AP) — J.C. Penney is getting booted from the Standard & Poor's 500 index after losing more than half of its market value this year.

The retailer is being replaced by Allegion, a provider of security for homes and businesses, according to a statement released Friday by S&P Dow Jones Indices, which runs the S&P 500 index.

The retailer's downward spiral began during an ill-fated transformation under former CEO Ron Johnson, who was fired in April after 17 months on the job.

The company's stock has rebounded during the last month. There are signs that the retailer's business is stabilizing under Chief Executive Mike Ullman. However, the change isn't enough to keep J.C. Penney in the index.

J.C. Penney's stock has fallen $10.84, or 55%, to $8.87 this year.

The stock has advanced 18% so far in November after falling to $6.42 on Oct. 21.

Johnson's plan included getting rid of coupons and most sales in favor of everyday low prices, bringing in hip brands and remaking outdated stores. But the changes that were meant to attract younger, wealthier shoppers, wound up turning off its loyal middle-income, middle-age customers who favor sales and basic merchandise like loose-fitting khakis

J.C. Penney will join the S&P MidCap 400. The change will become effective after the stock market closes on Nov. 29.

Earlier Friday, J.C. Penney reported a wider third-quarter loss, but the results showed its business is starting to stabilize.

The department store chain, based in Plano, Texas, says Wednesday that it lost $489 million, or $1.94 per share, in the three months that ended Nov. 2. That compares with a loss of $123 million, or 56 cents per share, a year earlier.

Revenue fell 5.1% to $2.78 billion.

The company's adjusted loss was $1.81 per share. Analysts expected a loss of $1.74 per share on revenue of $2.79 billion.

Revenue at stores open at least a year fell 4.8% for the quarter, but the period ended with its first monthly ! gain since December 2011.

Buy This, Sell That: Nortech Systems & Document Security Systems Pointed in Opposite Directions (DSS, NSYS)

In a perfect world stocks would move in predictable, manageable ways. We don't live - nor do we trade in - a perfect world. In the real world we have to adapt to and deal with the curve balls the market throws us, and there are no two stocks that illustrate that point better than Document Security Systems, Inc. (NYSEMKT:DSS) and Nortech Systems Incorporated (NASDAQ:NSYS) to today. While both NSYS and DSS are up today, one's overbought and ripe for a pullback, while the other is likely at the beginning of a trade-worthy rally.

The one that's flown a little too high for its own good is (no surprise here) Nortech Systems Incorporated. Shares are up 43% today, and have gained 84% over the past week, and are up 138% since the end of July. Yes, the results scream "momentum", but common sense has to kick in at some point - NSYS can't keep climbing at this pace forever. Indeed, it will do well to even hold onto this gain.

For those not familiar with it, NSYS is an electronics contract manufacturer, meaning larger and more notorious companies ask Nortech Systems to build parts and pieces of their computers, TV, phones, or whatever. The prod for the big surge was last quarter's earnings, which were admittedly solid. But, enough is enough. Or in this case, too much is too much - an 84% pop in value is going to bring the would-be profit-takers out of the woodwork. Time to take the money and run.

So how is Document Security Systems any different? After all, it's up 38% in just a few days as well, and today's bar (so far) as a doji, where the open and the close (again, so far), are right in the middle of the bar, indication a potential transition from a net-bullish to a net-bearish environment. Isn't DSS just as prone to a pullback? The answer is yes, and no.

While it's true that DSS may see a little short-term weakness, in the bigger picture, the long-term tide has officially turned for the better. And, there's still a ton of upside left to dole out once the stock takes a brief break. If the same pattern Document Security Systems shares made in May of this year plays out again, the stock could top $2.00 before running out of gas. There's a lot of bullish volume starting to flow in here.

Document Security Systems is a digital security company, which has been a real hot-button area lately.

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

Thursday, January 30, 2014

Verizon: Single And Eager To Mingle – VZ

Facebook Logo Twitter Logo RSS Logo Hilary Kramer Popular Posts: New Energy Revolution Buy: First Solar FSLR5 Great Stock Opportunities for the Fourth QuarterZhone Turnaround a Buying Opportunity ZHNE Recent Posts: Verizon: Single And Eager To Mingle – VZ Zhone Turnaround a Buying Opportunity ZHNE New Energy Revolution Buy: First Solar FSLR View All Posts

Verizon Communications (NYSE:VZ)Last week's earnings demonstrate how far Verizon (VZ) has come as a leader in the iPhone wars with plenty of tempting hints of emerging growth catalysts ahead.

The stock is still ahead on the news but there is more upside here to capture. Breaking up with Vodafone (VOD)  may have been the best thing the company ever did.

While a few analysts initially groused about slowing wireless growth, a second look at the earnings release quickly revealed more than enough strength here to compensate. VZ still boosted its service revenue by 8.4% over last year and even in the face of fiercer competition on the smartphone side managed to push its EBITDA margins to a record 51.1%.

Most prominently, VZ says it activated 3.9 million iPhones during the third quarter, putting it within striking distance of wrestling the crown of top Apple (AAPL) phone carrier from AT&T (T). 

The iPhone is not the crown jewel it once was even in the increasingly commoditized smartphone space, but achieving this kind of share in a still-prestigious – and lucrative – market segment is still a testament to Verizon's strategic momentum. For a company that some wrote off three years ago for ignoring the emerging Apple ecosystem, the trajectory from zero to signing data contracts on 9% of all new iPhones sold worldwide speaks for itself.

Competitors have fared less well. Sprint (S) never capitalized on its early lead and now pulls in barely a third of the iPhone volume that VZ has built up since 2011. And although many Apple early adopters have stuck with AT&T out of mingled nostalgia and inertia, they have never been shy about complaining when service has been less than perfect.

While the raw growth trend is flattening across the board as a revitalized T-Mobile (TMUS) becomes a more serious player, these are unquestionably high-quality, high-revenue subscribers. Month to month, the typical iPhone user has been pulling 50% to 250% more data off the Verizon network than his or her Android counterpart according to market research firm NPD, and on pay-as-you-go plans that extra gigabyte or two of usage per account can add up fast.

Now that onetime partner Vodafone has sold back its stake in the network for a blockbuster $130 billion, all of this business belongs to VZ alone. I would not be surprised to see the earnings keep forcing Wall Street to upgrade its forecasts: even the bullish analysts were pleasantly surprised to see EPS of 77 cents.

Reports of iPhone shortages should only help front-load the VZ subscriber pipeline for the current quarter and beyond.

And even though VZ is looking at dilution in order to raise that $130 billion to break up with VOD, the business seems to have more than enough untapped value to support it. If 45% of Verizon Wireless was worth that much money to the people who know it best, how long will the sum of the parts on the company that owns the entire operation add up to a current market cap of barely $140 billion?

If anything, the most interesting detail in this 10-Q emphasized that VZ is still more than its wireless operation. Far from moribund, the company's consumer wireline business is actually growing again at a rate of 4% to 5% as families that kept their land line upgrade to value-added FiOS triple play service.

A full 72% of VZ's wireline households are now on the FiOS plan, and migration should remain strong as new offerings like home automation and security roll in and strategic competitors in the cable space lose subscribers over channel fee disputes.

Wireline is now the icing on the big mobile data cake, but VZ is fortunate to have both. I was a big fan of VOD largely because of its stake in this company's success.

Now I will have to watch VZ in its own right.

Bank of AmericaĆ¢€™s Truce and 2 Surging Stocks

In this segment from Thursday's episode of The Motley Fool's everything-financials show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson go through a rapid-fire round of three top headlines. The newsmakers included KKR (NYSE: KKR  ) , Bank of America (NYSE: BAC  ) , Morgan Stanley (NYSE: MS  ) , Lazard (NYSE: LAZ  ) , and Evercore (NYSE: EVR  ) .

More growth stocks
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— MotleyFoolFinancials (@TMFFinancials) October 5, 2013

Wednesday, January 29, 2014

Hong Kong stocks fall after Fed taper, China data

HONG KONG (MarketWatch) -- Hong Kong stocks sold off early Thursday after the Federal Reserve decided to further taper stimulus, and after a final reading of China's manufacturing PMI contracted. The Hang Seng Index (HK:HSI) sank 1.5% to 21,815.04 in holiday-shortened trading. Tech stocks retreated, as Chinese PC maker Lenovo Group Ltd. (HK:992) (LNVGF) dropped 5.3%, failing to get a lift from news that it plans to acquire the Motorola handset business from Google Inc. (GOOG) for $2.91 billion as Lenovo aims for a bigger presence in the U.S. market. Software developer Kingsoft Corp. (HK:3888) (KSFTF) fell 1.9% and Internet giant Tencent Holdings Ltd. (HK:700) (TCTZF) dropped 1.5%. Casino stocks also declined. Sands China Ltds. (HK:1928) (SCHYF) , the Hong Kong-listed unit of Las Vegas Sands Corp. (LVS) , slipped 0.2%, despite financial results that showed Sands China's net income increased 40% year-on-year to $467 million in the fourth quarter. Melco Crown Entertainment Ltd. (HK:6883) (MPEL) slumped 3.2%, and both Wynn Macau Ltd. (HK:1128) (WYNMF) and MGM China Holdings Ltd. (HK:2282) (MCHVF) moved lower by 2.3%. On the mainland, the Shanghai Composite Index (CN:SHCOMP) gave up 0.5%.

Tuesday, January 28, 2014

Strauss: Entrepreneurs as ‘thought leaders’

Q: I have been hearing a lot about this seemingly new term "thought leader." How does one become a thought leader, exactly? I have been in business quite a while and think that I have a unique expertise and so it would behoove me to be seen of as a thought leader. But how do I get the word out? -- Baxter

A: Back when I started writing this column 15 years ago (!), becoming and being seen as an expert (which is really all a thought leader is) was both easier and more difficult.

It was easier because there was less competition. The Web was new, there was no such thing as social media, and as such, those folks who were fortunate enough to have (or get) some sort of platform, as I was, were able to stand out a bit from the crowd.

Of course, things are much different now, and in many ways, the changes make becoming a thought leader more challenging. The biggest difference, as you well know, is that there is just so much competition out there, both in terms of things vying for people's attention, as well as the number of very qualified people who now have the capacity because of social media to share their expertise.

The good news though is that these days there are no more gatekeepers (or at least a lot fewer). It used to be that editors had to say yes. Producers had to say yes. Secretaries even had to say yes. These gatekeepers made breaking out much tougher. But no longer. Today, anyone has the tools available to become a thought leader, and doing so – even with the added competition – can be a very smart business move.

Here's why:

You will make more money. When you go to the market and choose a cereal, are you more likely to choose the no-name generic box, or Cheerios? Exactly. People like brands and are wiling to pay more for a brand. Brands convey quality, people pay for quality, and that is exactly what will happen with you when you begin to establish yourself as a branded expert.

You will get more opportunities: It is both the good news and the bad news abo! ut social media that it allows any and everyone a bullhorn. That said, when you do it right, when you have something worthwhile to say and share, people will begin to take note. You will likely get offered business and opportunities that you didn't even know existed.

It will help your business: Employees and customers alike both will appreciate being associated with a person who is seen of as a leader in his or her industry.

So, all of this then begs the question: How can you get heard above the din and start to get noticed? Here are a few ways:

1. Be authentic and have something to say: If you want to be considered an expert in your field, then you better be an expert in your field. You need to know your stuff and be able to communicate it in a unique, valuable, and interesting way.

2. Pick a platform, any platform: You can tweet, write, post, pin, comment, share, and blog. You can create videos and e-newsletters. You can self-publish a book.

3. Get the word out, again, and again, and again: Here's the deal: Because there is so much noise out there now and so many people and companies vying for attention, you have to consistently post, and then post some more. Consistency, intelligence, and creativity are key.

4. Have a great e-presence: You better believe that once you start to put yourself out there, people will check out your website, LinkedIn page, Twitter profile, and all the rest.

5. Finally, remember, it's about them, not you: What works in this brave, new e-world is giving. It is when you add real value to people's day by sharing ideas and links and posts that help them in their business or life, then you begin to get noticed and appreciated.

And yes, thought of as a thought leader.

Today's tip: If you have ever tried to get publicity for your business, you know it isn't easy. So how can you pitch effectively? Well, there's a new book out written by veteran PR agent Ed Zitron called, Here's How You Pitch. In it, Zitron shares a lot of very v! aluable t! ips, such as

• "Be human in your pitch: This is an obvious tip that's missed by many small business owners and entrepreneurs. You can and will earn loyalty and interest through being a genuine person.

• Keep it short: The average attention span when it comes to email ranges from short to non-existent. Keep it under 200 words.

• Show you passion: Whatever you write should be passionate, and written as if you're grateful they are giving you the time of day. Because you should be."

Great advice, all. Steve says check it out.

Steve Strauss is a lawyer specializing in small business and entrepreneurship. His column appears Mondays. E-mail Steve at: sstrauss@mrallbiz.com. An archive of his columns is here. His website is TheSelfEmployed.

Monday, January 27, 2014

Commentary: Tech's growing problem in San…

SAN FRANCISCO -- – In case you've missed it, Silicon Valley has its own version of Occupy Wall Street.

This culture war lacks rampant arrests, bursts of violence or national media coverage, but the dissent of anti-gentrification groups over income and housing is creating a stir just the same here.

For the third time in about a month, protesters on Tuesday blocked tech buses from Google and Facebook carrying workers out of the city. A few dozen protesters, chanting "Stop evictions," surrounded the buses and prevented them from moving. Some plastered a sign to one of the coaches, in a Google-type font, that read "Gentrification and Eviction Technologies."

Demonstrators stood outside the Berkeley home of a Google engineer on Wednesday to object to the company's work on military robots.

San Francisco has always shown a predilection for protect. Hippies protested the Vietnam War. The gay community strove for civil rights. The Mission neighborhood resisted gentrification it blamed on tech start-ups in the early 2000s – though things weren't as heated then.

Members of the Housing Rights Committee of San Francisco and other activists protest outside of City Hall in San Francisco, Tuesday, Jan. 21, 2014. San Francisco officials are set to vote on a plan to start regulating employee shuttles for companies like Google, Facebook and Apple, charging a fee for those that use public bus stops and controlling where they load and unload. Private shuttle buses have created traffic problems, blocking public bus stops during peak commute hours.(Photo: Jeff Chiu AP)

For some, the buses that transport employees from Google, Apple, Facebook and others to Silicon Valley have become symbols of income disparity. The impac! t of its workforce is creating an eviction crisis," says Rebecca Gourevitch, an organizer with Eviction Free San Francisco. "A lot of people feel these companies make so much money, and … yet are oblivious."

The protests highlight the yawning gap between those benefiting from the enormous wealth generated by the tech boom and those left behind. Multimillion-dollar tax breaks to mollify SF-based companies like Twitter have only added to the angst.

The average monthly rent here has soared 12%, to $3,096, from a year ago, according to RealFacts. In San Jose, the average rental price is $2,124, up 10% from last year; in Oakland, the average rent climbed 9%, to $2,015.

Rent hikes have coincided with a migration of tech start-ups here, and the decision by many of their young employees to live in the city. The sweeping gentrification has not only altered the character of some neighborhoods, but alienated residents who complain of the self- entitled, boorish behavior of tech workers.

Much is at stake -- with Twitter and Square recently moved into larger digs here – and some tech leaders appear to be getting the message. They've promised to create more jobs and affordable housing.

"We're working with Bay Area leaders to address the issue with practical response -- truly equipping people at the margins with the skills to participate in the new and emerging economy," says Mark Wexler, executive director of Not For Sale, an anti-human trafficking organization with the backing of several tech firms. He plans to meet with Jim Wunderman, CEO of the Bay Area Council, in two weeks to address economic disparity. Former Apple exec James Higa is assisting.

Salesforce.com CEO Marc Benioff, a fourth-generation San Franciscan whose name is imprinted on the UCSF Benioff Children's Hospital and has made Salesforce a model for corporate philanthropy, says he is "dismayed" by the industry's "stinginess."

"Companies are making billions of dollars; they can give back a small percentage ! of that b! ack," says Benioff, who supports the rights of the protesters. "The homeless, child care and public schools are logical philanthropic targets for tech."

It was in San Francisco, not Silicon Valley, where Salesforce was founded in 1999. He says "200, not 20" local tech companies need to change their attitudes before things become more confrontational.

"This is a city of innovators – the Haas family (Levi Strauss), the Hellmans (Wells Fargo) who helped create industries" while being model corporate citizens, Benioff says.

"We need to create a new San Francisco, a better San Francisco," he says.

4 Stock Spiking on Big Volume


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

>>5 Stocks Ready to Break Out

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

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

>>4 M&A Deal Stocks to Watch for 2014

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

Angie's List

Angie's List (ANGI) operates a consumer-driven solution for its members to research, hire, rate and review local professionals for home, health care and automotive service needs. This stock closed up 3.1% to $16.80 in Friday's trading session.

Friday's Volume: 3.01 million

Three-Month Average Volume: 1.26 million

Volume % Change: 160%

>>5 Stocks Under $10 Set to Soar

From a technical perspective, ANGI spiked notably higher here with above-average volume. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $12.71 to its intraday high on Friday of $17.49. During that move, shares of ANGI have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if ANGI manages to take out Friday's high of $17.49 with strong volume.

Traders should now look for long-biased trades in ANGI as long as it's trending above $16 or above $15 and then once it sustains a move or close above $17.49 with volume that hits near or above 1.26 million shares. If we get that move soon, the ANGI will set up to re-test or possibly take out its next major overhead resistance levels at $19 to its 200-day moving average at $19.88.

Eagle Bancorp

Eagle Bancorp (EGBN) operates as a bank holding company for EagleBank, which provides commercial and consumer banking services in the U.S. This stock closed up 2.4% to $33.30 in Friday's trading session.

Friday's Volume: 142,000

Three-Month Average Volume: 78,819

Volume % Change: 74%

>>5 Big Trades to Survive the S&P's Cold Spell

From a technical perspective, EGBN spiked notably higher here and broke out into new 52-week-high territory with above-average volume. This stock recently formed a double bottom chart pattern at $29.35 to $29.24. Following that bottom, shares of EGBN have spiked higher and broke out to new highs. Market players should now look for a continuation move higher in the short-term if EGBN manage to take out Friday's high of $33.67 with strong volume.

Traders should now look for long-biased trades in EGBN as long as it's trending above $32 or $31 and then once it sustains a move or close above Friday's high of $33.67 with volume that hits near or above 78,819 shares. If we get that move soon, then EGBN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $37 to $40.

PriceSmart

PriceSmart (PSMT), together with its subsidiaries, owns and operates membership shopping warehouse clubs in Latin American and Caribbean. This stock closed up 0.9% at $95.07 in Friday's trading session.

Friday's Volume: 260,000

Three-Month Average Volume: 168,695

Volume % Change: 63%

>>5 Stocks Insiders Love Right Now

From a technical perspective, PSMT spiked modestly higher here with above-average volume. This stock has been downtrending badly for the last two months, with shares plunging sharply lower from its high of $126.46 to its low on Friday of $93.17. During that downtrend, shares of PSMT have been consistently making lower highs and lower lows, which is bearish technical price action. That move has pushed shares of PSMT into oversold territory, since its current relative strength index reading is 24.86. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce higher form.

Traders should now look for long-biased trades in PSMT as long as it's trending above Friday's low of $93.17 or above $92 and then once it sustains a move or close above Friday's high of $95.50 to its 200-day moving average of $97.13 with volume that hits near or above 168,695 shares. If we get that move soon, then PSMT will set up to bounce off oversold levels back to it next major overhead resistance levels at $107 to $110.

Hydrogenics

Hydrogenics (HYGS), together with its subsidiaries, designs, develops and provides hydrogen generation and fuel cell products based on water electrolysis technology and proton exchange membrane technology. This stock closed up 2.6% to $21.35 in Friday's trading session.

Friday's Volume: 142,000

Three-Month Average Volume: 76,523

Volume % Change: 306%

From a technical perspective, HYGS spiked notably higher here with above-average volume. This stock has been uptrending strong for the last three months and change, with shares moving higher from its low of $11.05 to its recent high of $23.84. During that uptrend, shares of HYGS have been making mostly higher lows and higher highs, which is bullish technical price action. This move is quickly pushing shares of HYGS within range of triggering a major breakout trade. That trade will hit if HYGS manages to take out some near-term overhead resistance levels at $22.50 to its 52-week high at $23.84 with high volume.

Traders should now look for long-biased trades in HYGS as long as it's trending above Friday's low of $19.55 or above $19 and then once it sustains a move or close above those breakout levels with volume that hits near or above 76,523 shares. If that breakout triggers soon, then HYGS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $27 to $30.

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

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>4 Stocks Under $10 Making Big Moves



>>5 Health Care Stocks to Trade for Gains



>>5 Shareholder Yield Winners to Beat the S&P 500

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.


Is Google Ready to Move Higher?

With shares of Google (NASDAQ:GOOG) trading around $885, is GOOG an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Google is a global technology company focused on improving the ways people engage with information. The business is focused on the following areas: search, advertising, operating systems and platforms, and enterprise. The company generates revenue primarily by delivering online advertising. Google is a search giant with most of the market share, largely because of its execution and delivery. An increasing number of consumers and companies worldwide are coming online, which will surely increase the amount of eyes on the company's ads and in turn, advertising revenue. At this rate, look for Google to remain on top of the Internet world.

Google is getting close to reaching a settlement with European regulators over its search business, which had been deemed by the European Commission as being anti-competitive. Google has offered concessions that will make rivals' products easier to see in a Google search and allow advertisers to post ads on other search engine's sites as well. European Commission head Joaquin Alumnia has said that he approves of Google's concessions, but that Google's rivals should have a chance to approve them as well, according to the New York Times.

T = Technicals on the Stock Chart Are Mixed

Google stock has been exploding to the upside in recent years. The stock has been trading sideways as it digests gains from a recent bullish run. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Google is trading between its key averages, which signal neutral price action in the near-term.

GOOG

(Source: Thinkorswim)

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

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Google Options

26.16%

96%

95%

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

Put IV Skew

Call IV Skew

October Options

Flat

Average

November Options

Flat

Average

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

2013 Q2

2013 Q1

2012 Q4

2012 Q3

Earnings Growth (Y-O-Y)

-5.53%

13.60%

17.06%

-21.61%

Revenue Growth (Y-O-Y)

15.52%

31.23%

24.87%

45.07%

Earnings Reaction

-1.55%

4.43%

5.49%

-1.90%

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

P = Weak Relative Performance Versus Peers and Sector

How has Google stock done relative to its peers, Yahoo! (NASDAQ:YHOO), Microsoft (NASDAQ:MSFT), Baidu (NASDAQ:BIDU), and sector?

Google

Yahoo!

Microsoft

Baidu

Sector

Year-to-Date Return

25.00%

69.10%

24.92%

55.63%

40.32%

Google has been a poor relative performer, year-to-date.

Conclusion

Google is an Internet giant that provides valuable search and advertising services to a growing user base worldwide. Its search business has been deemed by the European Commission as being anti-competitive so a settlement is in the works. The stock has been flying to the upside but is now trading sideways as it digests gains from a recent run. Over the last four quarters, earnings have been mixed while revenues have been rising, however, investors have had conflicting feelings about recent earnings announcements. Relative to its strong peers and sector, Google has been a weak year-to-date performer. WAIT AND SEE if Google can breakout of this consolidation range.

Sunday, January 26, 2014

BlackBerry slides as Fairfax deal fails to impress

SAN FRANCISCO (MarketWatch) — BlackBerry Ltd. retreated Tuesday as the initial lift from the news of a possible sale to Fairfax Financial fizzled while Applied Materials Inc. led gainers on the S&P 500.

Top Tickers Trending

$BBRY: BlackBerry (BBRY)  sagged nearly 2% as the euphoria of a potential deal with Fairfax faded. The shares had recovered on Monday after the smartphone maker said it signed a letter of intent with Fairfax to negotiate a sale for $4.7 billion. But a closer look at the announcement suggests that the deal was hastily thrown together to shield the stock from further selling pressure, according to MarketWatch's Therese Poletti.

Reuters BlackBerry falls a day after landing a bid to go private.

$AAPL: Apple Inc. (AAPL)  shares edged up 0.3%. The stock's rating was raised to positive from neutral by Susquehanna on Tuesday after better-than-expected sales of new iPhone 5C and 5S models over the weekend. The firm also raised its price target for Apple shares to $625 from $440.

$FB: Facebook Inc. (FB)   shares jumped 4.2%. The social network on Tuesday was upgraded to a buy from neutral at Citigroup, which also raised its price target on the stock to $55 from $32.

$NOV: Shares of National Oilwell Varco Inc. (NOV)  reversed earlier gains to trade down 0.3%. The company said Tuesday it received authorization from the board to pursue a spinoff of its distribution business. The transaction is expected to close in the first half of next year and doesn't need approval from shareholders.

Gainers

Applied Materials (AMAT)  shares jumped nearly 7%. The company and Tokyo Electron Ltd. (JP:8035)  agreed to merge on Tuesday in an all-stock deal expected to close in the middle to second half of 2014. The combined company will have a market capitalization of about $29 billion. Tokyo Electron is a Japanese semiconductor production equipment maker founded in 1963.

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Lennar Corp. (LEN)  rose 4.2% after the home builder said early Tuesday that its third-quarter profit rose 39%. PulteGroup Inc. (PHM)  and D.R. Horton Inc. also recovered from the previous session's losses to trade higher. Separately, the S&P/Case-Shiller index rose 12.4% in July, its fastest annual pace since 2006.

Yahoo Inc. (YHOO)  shares were among the big S&P 500 (SPX)  gainers. The Internet company was profiled by Internet-based news service Minyanville, which noted that Yahoo is getting noticed again with Chief Executive Marissa Mayer at the helm.

Decliners

Red Hat Inc. (RHT)  shares tumbled 12%, the biggest decliner on the S&P 500. While the company posted second-quarter earnings late Monday that met expectations, the decline in new annualized billings was worrisome, according to J.P. Morgan analysts on Tuesday. "The company's preferred billings proxy only grew 8% versus consensus expectations of 14%, and importantly, we estimate that new annualized billings declined 11% from a year ago," they said in a note. J.P. Morgan maintained its underweight rating and price target of $39.

Carnival Corp. (CCL)  shares slumped 6.8%. The world's largest cruise operator said Tuesday its third-quarter profit fell to $1.20 a share from $1.71 a share in the year-earlier period.

JPMorgan, Other Big Banks Juiced by Mid-Year Stress Tests

NEW YORK (TheStreet) -- The nation's largest banks have sailed through yet another set of stress tests mandated by regulators, showing "the industry is well positioned to increase capital distributions" next year, according to Sterne Agee analyst Todd Hagerman.

Hagerman in a note to clients late on Monday wrote that "the bank-conducted stress-testing results, which extend through 2Q15, demonstrated continued improvement in the trajectory of core profitability, improved expected cumulative loss rates, and higher levels of core capital."

Investors may be confused to be reading about stress tests during the summer, since the largest banks have been undergoing the Federal Reserve's stress tests for the past few years in March, after which the group has announced capital deployment plans for the following year. The good news is that the big banks have come out of this round of tests looking considerably stronger than they did before.

Back in March, the Fed first conducted its annual Dodd-Frank Act Stress Tests (DFAST), to gauge the 18 largest US. Bank holding companies' ability to maintain minimum Basel 1 Tier 1 common equity ratios of 5% through a "severely adverse" economic scenario that included a 4% increase in the unemployment rate, which would have been "above any level experienced over the last 70 years." The severely adverse scenario also included an increase of corporate bond spreads to Treasury bonds of 550 basis points, real GDP declining by 5%, a 50% drop in stock prices and a 20% decline in home prices through the end of 2014. The stress tests in March were based on September 2012 financial data, and showed that all 18 holding companies would survive though the end of 2014 with minimum Tier 1 leverage ratios of at least 5%, except for Ally Financial, the former GMAC. One week after the DFAST results were announced, the Fed incorporated banks' capital return plans into another set of stress tests using the same scenario -- the Comprehensive Capital Analysis and Review (CCAR). All the banks passed CCAR, except for Ally Financial and BB&T (BBT) of Winston-Salem, N.C., which had its capital plan rejected on "qualitative" grounds. JPMorgan Chase (JPM) and Goldman Sachs (GS) received "conditional" approval for their capital plans, but were required to submit revised plans to the Federal Reserve.

Despite only receiving conditional approval of its capital plan, JPMorgan during the second quarter was able to boost its quarterly dividend on common shares to 38 cents from 30 cents, while also announcing approval to repurchase up to $6 billion in common shares through the first quarter of 2014. Self-Administered Stress Tests Look Very Good

Starting this year, the holding companies are required to make public disclosures of the results of their own stress tests by Sep. 30, using a new scenario provided by the Federal Reserve, based on March 31 balance sheet and off-balance sheet exposures.

The new "severely adverse" scenario provided by the Federal Reserve includes a 4% decline in GDP over six quarters, with the unemployment rate increasing to 11.7% over eight quarters. The new scenario also includes a 21% drop in home prices and a decline in stock prices of nearly 60%. The scenario also includes plenty of international economic turmoil. Under the new scenario, the banks would make their scheduled dividend payments, while ceasing common-share repurchases and only issuing new shares under existing employee compensation plans. Yes, executive gravy would continue to be ladled out.

JPMorgan Chase (JPM) on Monday said that under its mid-year stress tests, the company would end up with a small pretax net loss of roughly $300 million for nine quarters through June 2015, with a minimum Tier 1 common equity ratio of 8.5%. The minimum Tier 1 common equity ratio under the latest stress test was up considerably from 7.6% in March. Bank of America (BAC) on Monday disclosed that its mid-year stress test results indicate the company would post pretax losses of $26.1 billion over nine quarters thorough June 2015 under the harsh new scenario, and that its minimum "hypothetical stressed" Tier 1 common equity ratio though the cycle would be 8.4%, which is up from the minimum ratio of 7.7% from the second round of Federal Reserve stress tests (CCAR) in March. That's a very comforting increase for the nation's second-largest bank by total assets, which has been making a determined effort led by CEO Brian Moynihan to trim expenses and work through the huge portfolio of nonperforming mortgage loans and investors' loan repurchase demands, springing mainly from the acquisition of Countrywide Financial in 2008. The bank had previously estimated its losses under the Fed's previous severely adverse scenario would total $44 billion.

Wells Fargo (C) fared even better, saying Monday that its mid-year stress tests showed its Tier 1 common equity ratio would decline under the new severely adverse scenario to a minimum of 9.9% through the second quarter of 2015, with cumulative pretax net losses of $3.8 billion. Under the CCAR in March, Wells Fargo's minimum Tier 1 common equity ratio was 8.3%.

Citigroup (C) said that under its mid-year stress tests its minimum Tier 1 common equity ratio through June 2015 would be 9.1%, increasing from the 8.4% minimum projected by the Fed following the CCAR tests in March. Citi also said that under the new severely adverse economic scenario, its cumulative pretax net loss through the second quarter of 2015 would be $21.2 billion.

Goldman Sachs (GS) said its Minimum Tier 1 leverage ratio under the new scenario would be 8.9%, with cumulative pretax net losses of $6.2 billion through the second quarter of 2015. The estimated minimum Tier 1 common ratio was up slightly from the minimum of 8.6% under the CCAR in March.

The Most-Improved Award goes to Morgan Stanley (MS), which on Monday said its minimum Tier 1 common ratio under the Fed's latest severely adverse scenario through the second quarter of 2015 would be 9.5%, which is way up from the minimum of 6.7% under CCAR. The company also said that under the mid-year stress test scenario, it would post a cumulative pretax profit of about $600 million. Atlantic Equities analyst Richard Staite in a note on Tuesday wrote that the latest round of stress tests "should give these banks confidence to apply to return more capital in 2014." Looking ahead, the banks will be facing federal regulators' new leverage ratio requirements, which haven't yet been finalized, and won't be implemented until the beginning of 2015. Another unknown factor is what the Federal Reserve's March 2014 "severely adverse" scenario for its next round of stress tests will look like. But these latest results are a clear indication that the "big six" U.S. banks "get it," as far as managing to regulators every-changing capital-strength expectations are concerned. According to Hagerman, "capital standards lack uniform harmonization and will likely increase over the foreseeable future, [however]... today's relatively punitive capital levels will likely subside over time as the industry continues to build capital and the associated risks and economic landscape continue to change."

The excellent mid-year stress tests results underscore a possible long-term opportunity for investors. In light of the market hysteria over Federal Reserve monetary policy and the coming change in leadership at the top, along with such strong market gains this year and last, stocks of the largest U.S. banks may be quite volatile through the end of the year. But the group's valuation to forward earnings is still cheap on a historical basis, with valuations at roughly half their levels before the credit crisis hit in 2008: JPMorgan Chase is the cheapest among the big six on a forward P/E basis, with shares closing at $53.14 Monday and trading for 8.7 times the consensus 2014 earnings estimate of $6.09 a share, according to analysts polled by Thomson Reuters. Since the company had already announced that its third-quarter legal expenses would be roughly $1.5 billion, sell-side analysts EPS estimates seem unlikely to be affected by the expected regulatory settlements this week. Citigroup's shares closed at $51.00 Monday and traded for 9.2 times the consensus 2014 EPS estimate of $5.55 Bank of America closed at $14.53 and traded for 10.7 times the consensus 2014 EPS estimate of $1.36 Wells Fargo closed at $42.89 and traded for 10.7 times the consensus 2014 EPS estimate of $4.01 Goldman closed at $167.02 and traded for 10.8 times the consensus 2014 EPS estimate of $15.52 Morgan Stanley is the most expensive of the big six, at least for the time being, with shares closing at $28.73 Monday and trading for 11.1 times the consensus 2014 EPS estimate of $2.60

-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Follow @PhilipvanDoorn

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

Saturday, January 25, 2014

Top Performing Industries For September 17, 2013

At 10:15 am, the Dow surged 0.32% to 15,544.88, the broader Standard & Poor's 500 index moved up 0.36% to 1,703.68 and the NASDAQ composite index gained 0.44% to 3,734.21.

The industries that are driving the market today are:

Medical Practitioners: This industry jumped 2.82% by 10:15 am. The top performer in this industry was LCA-Vision (NASDAQ: LCAV), which rose 2.9%. LCA-Vision's trailing-twelve-month revenue is $91.12 million.

Computer Peripherals: This industry rose 2.21% by 10:15 am ET. The top performer in this industry was Key Tronic (NASDAQ: KTCC), which gained 0.3%. Key Tronic's trailing-twelve-month ROE is 14.57%.

Electronics Stores: This industry moved up 1.16% by 10:15 am. The top performer in this industry was Conns (NASDAQ: CONN), which gained 1.3%. Conns' PEG ratio is 0.87.

Catalog & Mail Order Houses: The industry gained 1.13% by 10:15 am. The top performer in this industry was Mojo Organics (OTC: MOJO), which gained 6.6%. Mojo Organics shares have jumped 361.54% over the past 52 weeks, while the S&P 500 index has gained 16.18% in the same period.

Friday, January 24, 2014

Mid-Morning Market Update: Markets Open Lower; Procter & Gamble Profit Beats Estimates

Following the market opening Friday, the Dow traded down 0.75 percent to 16,075.65 while the NASDAQ tumbled 0.98 percent to 4,177.55. The S&P also fell, dropping 0.84 percent to 1,813.09.

Top Headline
Procter & Gamble Co (NYSE: PG) reported a better-than-expected second-quarter net profit.

Procter & Gamble's quarterly profit declined to $3.43 billion, or $1.18 per share, from a year-ago profit of $4.06 billion, or $1.39 per share. Its core earnings fell to $1.21 per share.

Its sales came in at $22.28 billion versus $22.18 billion. However, analysts were projecting earnings of $1.20 per share on sales of $22.36 billion.

Equities Trading UP
Juniper Networks (NYSE: JNPR) shot up 6.85 percent to $27.79 after the company reported better-than-expected fourth-quarter results. Barclays upgraded the stock from Equalweight to Overweight and lifted the price target from $29.00 to $34.00.

Shares of Open Text (NASDAQ: OTEX) got a boost, shooting up 12.23percent to $101.70 after the company reported upbeat Q2 results and announced a 2-for-1 stock split.

Microsoft (NASDAQ: MSFT) was also up, gaining 3.70 percent to $37.39 after the company reported stronger-than-expected fiscal second-quarter results. Credit Suisse raised the price target on the stock from $40.00 to $42.50.

Equities Trading DOWN
Shares of Kansas City Southern (NYSE: KSU) were down 15.66 percent to $98.91 after the company reported downbeat Q4 earnings.

International Game Technology (NYSE: IGT) shares tumbled 11.44 percent to $15.63 after the company reported weaker-than-expected fiscal first-quarter results. Sterne Agee downgraded the stock from Buy to Neutral and cut the price target from $21.50 to $18.00.

First Niagara Financial Group (NASDAQ: FNFG) was down, falling 11.17 percent to $9.19 on Q4 results. The company issued weak FY14 earnings outlook.

Commodities
In commodity news, oil traded down 0.03 percent to $97.30, while gold traded up 0.42 percent to $1,267.60.

Silver traded up 0.67 percent Friday to $20.15, while copper fell 0.02 percent to $3.29.

Eurozone
European shares were lower today. The Spanish Ibex Index declined 2.36 percent, while Italy's FTSE MIB Index tumbled 1.04 percent. Meanwhile, the German DAX fell 1.24 percent and the French CAC 40 slipped 1.54 percent while U.K. shares declined 0.99 percent.

Economics
On the economics calendar Friday, there is no important data due out.

Posted-In: Earnings News Guidance Eurozone Futures Forex Global Econ #s Economics Intraday Update Markets Movers Tech

(c) 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Top Food Stocks To Watch For 2015

With the�SPDR S&P Biotech Index�up 35% over the trailing-12-month period, it's evident that investment dollars are willingly flowing into the biotech sector. Keeping that in mind, let's have a look at some of the rulings, studies, and companies that made waves in the sector last week.

There weren't many well-known names making big moves this week, but we were privy to a good variety of stories including FDA designations and new drug filings, plenty of analyst action, and a late-week, rally-killing share offering.

The best-known, and potentially most exciting, story of the week was the Food and Drug Administration's classification of Pfizer's (NYSE: PFE  ) Palbociclib as a "breakthrough therapy." Palbociclib is an oral treatment for ER+, HER2-positive metastatic breast cancer that, in trials, when combined with Novartis'�Femara, crushed the control arm made up of Femara alone in terms of progression-free survival (26.1 months versus 7.5 months). Those amazing results earned Palbociclib this extremely rare designation from the FDA, which should help expedite its development and hopeful approval of the drug.�

Top Food Stocks To Watch For 2015: Campbell Soup Co (CPB)

Campbell Soup Company (Campbell), incorporated on November 23, 1922, together with its subsidiaries, is a manufacturer and marketer of branded convenience food products. The Company operates in five segments: U.S. Simple Meals; Global Baking and Snacking; International Simple Meals and Beverages; U.S. Beverages; and North America Foodservice. In June 2012, the Company purchased 1300 Admiral Wilson Boulevard in Camden. On August 6, 2012, the Company completed the acquisition of BF Bolthouse Holdco LLC (Bolthouse Farms). In September 2012, Vilmorin & Cie SA acquired the tomato and pepper breeding and sales business of the Company. In June 2013, Campbell Soup Co completed the acquisition of Plum Organics. In August 2013, Campbell Soup Company completed the acquisition of Kelsen Group A/S.

In the United States, Canada and Latin America, the Company�� products are resold to consumers in retail food chains, mass discounters, mass merchandisers, club stores, convenience stores, drug stores, dollar stores and other retail, commercial and non-commercial establishments. In Europe, the Company�� products are resold to consumers in retail food chains, mass discounters, mass merchandisers, club stores, convenience stores and other retail, commercial and non-commercial establishments. In the Asia Pacific region, the Company�� products are resold to consumers through retail food chains, convenience stores and other retail, commercial and non-commercial establishments.

U.S. Simple Meals

The U.S. Simple Meals segment aggregates the operating segments: U.S. Soup and U.S. Sauces. The U.S. Soup retail business includes the products, such as Campbell�� condensed and ready-to-serve soups, and Swanson broth and stocks. The U.S. Sauces retail business includes Pregopasta sauces, Pace Mexican sauces, Campbell�� canned gravies, pasta, and beans, and Swanson canned poultry.

Global Baking and Snacking

The Global Baking and Snacking segment include Pepperi! dge Farm cookies, crackers, bakery and frozen products in the United States retail. It also includes Arnott�� biscuits in Australia and Asia Pacific.

International Simple Meals and Beverages

The International Simple Meals and Beverages segment aggregates the simple meals and beverages operating segments outside of the United States, including Europe, the retail business in Canada, and the businesses in Asia Pacific, Latin America and China. The segment�� operations include Erasco and Heisse Tasse soups in Germany,Liebig and Royco soups in France, Devos Lemmens mayonnaise and cold sauces and Campbell�� and Royco soups in Belgium, and Bla Band soups and sauces in Sweden. In Canada, operations include Habitant and Campbell�� soups, Prego pasta sauces, Pace Mexican sauces, V8 juices and beverages and certain Pepperidge Farm products. In Asia Pacific, operations include Campbell�� soup and stock, Kimball sauces, V8 juices and beverages, Prego pasta sauce and Swanson broths.

U.S. Beverages

The U.S. Beverages segment represents the United States retail beverages business, including V8 juices and beverages, and Campbell�� tomato juice.

North America Foodservice

The North America Foodservice segment represents the distribution of products, such as soup, specialty entrees, beverage products, other prepared foods and Pepperidge Farm products through food service channels in the United States and Canada.

Advisors' Opinion:
  • [By Rich Duprey]

    While Campbell Soup's (NYSE: CPB  ) stock has jumped 44% over the past year and is�30% higher so far in 2013, profit growth has been a much more tepid 6% over the last five years, like a bowl of soup left too long on a windowsill to cool off. That's why its purchase of organic baby foods and snacks maker Plum Organics holds the promise of getting sales and earnings back to a rolling boil.

  • [By Rich Smith]

    It might not be obvious to the casual observer, but right now, today, Campbell's (NYSE: CPB  ) stock offers one of the best values available in the processed foods industry. Why?

  • [By Paul Ausick]

    Big earnings movers: Campbell Soup Co. (NYSE: CPB) is down 3.2% at $43.30. Corinthian Colleges Inc. (NASDAQ: COCO) is down 10.3% at $2.34. JA Solar Holdings Co. Ltd. (NASDAQ: JASO) is down 6.9% at $7.40.

  • [By Demitrios Kalogeropoulos]

    Campbell Soup (NYSE: CPB  )
    This convenience-food company has been on a buying binge. Campbell spent $1.55 billion last year on Bolthouse Farms, and recently closed a few smaller deals, including one for Plum Organics, the No. 2 brand of organic baby food in the U.S. That aggressive acquisition strategy has given Campbell's sales a shot in the arm. Last quarter, for example, revenue jumped by 15% almost entirely thanks to new sales from the Bolthouse Farms brand.

Top Food Stocks To Watch For 2015: Latteno Food Corp (LATF)

Latteno Food Corp. (Latteno), incorporated on August 24, 1994, is engaged in acquiring, organizing, developing and upgrading companies in the international food and beverage market. Latteno is specializing in the dairy industry and coffee industry. The Company operates through its subsidiary in Brazil. On February 10, 2010 Latteno acquired Global Milk Businesses and Administration of Private Properties Ltda. (Global Milk). Global Milk holds the rights of certain intellectual property of the brand name products manufactured and sold under the brand name Teixeira. In March 2013, the Company acquired Green Cannabis Collective Inc.

Latteno is leasing an instant and roasted coffee factory located in Cruzeiro, Sao-Paulo, which was property the Company previously owned under its BDFC Brasil Alimentos Ltda (BDFC) subsidiary. In addition to the lease, the Company has maintained ownership of four brand names, Samba Cafe, Vivenda, Torino and Brazilian Best, used in the past by Latteno to sell its instant and roasted coffee across the world. The Company engaged the service companies to assist with its operations, such as Log-Frio Ltda, SigaSolutions Ltda, Microsiga Ltda and Varistao Transportes Ltda.

The Company competes with Nestle, Companhia Cacique de Cafe Soluvel, Cafe Soluvel Brasilia and Companhia lguacu de Cafe Soluvel.

Top 5 Blue Chip Stocks To Own Right Now: Koninklijke Ahold NV (AHONY)

Koninklijke Ahold N.V. (Ahold), incorporated on April 29, 1920, is engaged in the operation of retail food stores in the United States and Europe through subsidiaries and joint ventures. Ahold�� retail operations are presented in four segments: Stop & Shop/Giant-Landover, Giant-Carlisle, Albert Heijn and Albert/Hypernova. During the fiscal year ended January 3, 2010 (fiscal 2009), it operated 2,909 stores. On February 8, 2010, Ahold�� Giant-Carlisle acquired 25 stores from Ukrop�� Super Markets.

Franchisees operated 783 of the Albert Heijn, Etos and Gall & Gall stores, 463 of which were either owned by the franchisees or leased independently from Ahold. Of the 2,446 stores, 20% were company-owned and 80% were leased. Ahold�� stores range in size from 20 to over 10,000 square meters. Albert Heijn is a food retailer in the Netherlands. Etos is a health and beauty retailer in the Netherlands. Gall & Gall is a wine and liquor specialist in the Netherlands. Stop & Shop is a supermarket brand, operating in six states in the northeast United States. Giant-Landover is a supermarket brand, operating in four states in the mid-Atlantic United States. Peapod is an online grocery delivery service working in partnership with Stop & Shop and Giant-Landover. It also serves the metropolitan areas of Chicago, Illinois; Milwaukee and Madison, Wisconsin, and the northern areas of Indiana.

Advisors' Opinion:
  • [By Rich Duprey]

    As mentioned, Kroger is still swallowing Harris Teeter and has said it needs time to make more acquisitions. Royal Ahold (NASDAQOTH: AHONY  ) is also said to be leery about doing large acquisitions these days, while Cerberus recently finished acquiring the Albertsons and Acme chains from SUPERVALU (NYSE: SVU  ) �for $3.3 billion.

Top Food Stocks To Watch For 2015: MusclePharm Corp (MSLP.PK)

MusclePharm Corporation (MusclePharm), incorporated on August 4, 2006, is engaged in the business of providing personal fitness training using isometric techniques (Tone in Twenty). Muscle Pharm offers 12 products: Assault, Battle Fuel, Bullet Proof, Combat Powder, MuscleGel, Shred Matrix, Re-con, Armor-V, BCAA 3:1:2, ZMA Max, Glutamine and Creatine. MusclePharm is an expanding healthy life-style company that develops and distributes a full line of National Sanitation Foundation International and scientifically approved, nutritional supplements that are 100% free of any banned substances. MusclePharm products are sold in over 120 countries and available in over 5,000 United States retail outlets, including GNC, Vitamin Shoppe and Vitamin World. The Company also sells its products in over 100 online stores, including bodybuilding.com, amazon.com and vitacost.com.

Assault

Assault helps fight fatigue, boost performance, build muscle, increase int ensity, hydrate muscles and feed muscles valuable, clinically-proven nutrients, such as ConCrete, Beta Alanine, BCAAs and Cinnulin. Assault is a safe pre-workout formula that increases strength, aerobic and anaerobic performance, reduces stomach fat and meets NFS and informed choice product standards for being free of banned substances.

Battle Fuel

Battle Fuel helps to increase lean mass and strength, improve endurance and energy levels, naturally detoxify and enhance aggressive mental focus. The herbal formula enhances and supports all things masculine to drive strength, power and lean muscle mass development. Battle Fuel also assists with recovery through an intense combination of cleansing agents and natural elements that reduce fatigue and improve cellular immunity.

Bullet Proof

Bullet Proof helps increase recovery effectiveness and hormonal up-regulation. It also improves lean muscle tissue growth and helps relieve som e forms of pain.

Combat Powder

C! om! bat helps the body receive 25 grams of high quality protein, fuel fat loss, support healthy body composition, nourish lean muscle and speed up recovery. Combat is designed to help fill the gap in nutrition that athletes and super-active people may experience, to ensure their bodies are growing and recovering.

MuscleGel

MuscleGel helps in receiving more of the nutrients that body needs every day. Packed full of different proteins like building block amino acids, MuscleGel�� patented Pro-Fusion Technology gel format yields a fast-absorbing, highly bio-available source of next generation fitness food. For protein, carbohydrates and vitamins, MuscleGel delivers. It works on-the-go, fills athletes up and streams right to those parts of an athletes��body where nutrients are needed most.

SHRED Matrix

SHRED Matrix is superior for burning fat naturally, counteracting mood swings and helping athletes stay focused on weight loss a nd quick results. This 8-Stage Weight Loss System was specifically made for athletes and people who exercise regularly. As a total body diet, it sheds pounds, burns fat cells and attacks fat loss from every angle. While natural fat burners are at work, proven ingredients like Sugar Stop and the enzyme aid matrix keep athletes��appetites in check. Additionally, the formula is tuned so users won�� experience jitters or a crash.

Re-con

Re-con helps athletes recover quicker and more effectively, repair muscle cells, feed the body nutrients and grow stronger with ingredients, such as BCAAs, EAAs, cellular detoxifiers, muscle-loading carbohydrates and stress hormone regulators. This maximizes an athlete�� anabolic window, the post-workout phase where the body repairs and rebuilds tissue. Re-con promotes growth from every angle, delivering proteins and nutritious elements in their ideal forms.

Armor-V

Armor-V helps athletes receive a full dose of important vitamins and minerals,! keep! s ! vital o! rgans, such as the liver clean of toxins, recover faster and keep the body�� hormones balanced. This system was designed to meet the standards of high-performance athletes, who need a dedicated source of vitamins and minerals. Loaded with anti-oxidants and system optimizers derived from fruits and vegetables, Armor-V brings together organic, herbal and natural ingredients into a multi-nutrient complex that benefits active bodies.

BCAA 3:1:2

BCAA helps athletes receive ideal amounts of the Branched Chain Amino Acids (BCAA) Leucine, Isoleucine and Valine, from this patented ratio of 3:1:2, promote muscle development and maintenance, increase lean body mass and spur weight loss. BCAAs are part of the group of essential amino acids a body needs. Its patented 3:1:2 ratio is designed to release the ideal amounts of each amino acid both before and after a workout. This prevents muscle breakdown and leads to gains in body mass without losing weight.

ZMA Max

MusclePharm ZMA Max supports muscle growth and recovery, promotes deeper and more efficient sleep to maximize healing, tissue repair, anabolic hormone production and testosterone levels. It delivers the benefits of precise dosages and ZMA ingredient ratios and adds the synergistic effects of clinically-proven Fenugreek to support the balance of cholesterol levels, as well as increase of healthy libido function in women and men.

MP Glutamine

MusclePharm Core Series MP Glutamine supplement increases whole body glutamine status by enhancing an athlete�� uptake, bioavailability and digestion. Feeding the body a dedicated source of glutamine ultimately provides optimal muscle-tissue saturation through an range of three pure yet diverse nutritional glutamine complexes that delivers a substantial range of benefits.

Creatine

MusclePharm MP Core Series Creatine increases creatine status by enhancing up take and bioavailability while fueling stamina, s! trength a! nd! lean mus! cle growth. Many athletes who engage in high-intensity/short duration exercises like weightlifting use creatine. The clinically-proven ingredient Cinnulin heightens absorption, which assists its five pure and diverse creatine complexes, delivering a range of benefits will launch directly into muscles. MP Creatine increases explosive energy, ATP energy and overall power.

The Company competes with Optimum Nutrition, Inc. (Optimum), Iovate Health Sciences, Inc. (IHS), Bio-Engineered Supplements and Nutrition, Inc. (BSN).

Top Food Stocks To Watch For 2015: Nestle SA (NESN.VX)

Nestle SA is a Swiss Company engaged in the nutrition, health and wellness sectors. It is the holding company of the Nestle Group, which comprises subsidiaries, associated companies and joint ventures throughout the world. It has such business units as Food and Beverage, Nestle Waters and Nestle Nutrition. It is also active in the pharmaceutical sector. It divides its products into Powdered and liquid beverages, Water, Milk products and Ice cream, Nutrition, Prepared dishes and cooking aids, Confectionery, PetCare and Pharmaceutical products. In February 2011, the Company acquired CM&D Pharma Ltd.

Top Food Stocks To Watch For 2015: Kellogg Co (K)

Kellogg Company (Kellogg), incorporated in 1922, is engaged in the manufacture and marketing of ready-to-eat cereal and convenience foods. Kellogg�� principal products are ready-to-eat cereals and convenience foods, such as cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and veggie foods. As of February 28, 2012, these products were, manufactured by the Company in 17 countries and marketed in more than 180 countries. It also markets cookies, crackers, and other convenience foods, under brands, such as Kellogg��, Keebler, Cheez-It, Murray, Austin and Famous Amos, to supermarkets in the United States. Its cereal products are generally marketed under the Kellogg�� name and are sold principally to the grocery trade through direct sales forces for resale to consumers. Effective June 1, 2012, Procter & Gamble Co announced that it has completed the sale of its Pringles business to Kellogg.

As of February 28, 2012, Kellogg operated manufacturing plants and distribution and warehousing facilities totaling more than 30 million square feet of building area in the United States and other countries. Its manufacturing facilities in the United States include four cereal plants and warehouses located in Battle Creek, Michigan; Lancaster, Pennsylvania; Memphis, Tennessee; Omaha, Nebraska and other plants or facilities in San Jose, California; Atlanta, Augusta, Columbus, and Rome, Georgia; Chicago, Illinois; Seelyville, Indiana; Kansas City, Kansas; Florence, Louisville, and Pikeville, Kentucky; Grand Rapids and Wyoming, Michigan; Blue Anchor, New Jersey; Cary and Charlotte, North Carolina; Cincinnati, West Jefferson, and Zanesville, Ohio; Muncy, Pennsylvania; Rossville, Tennessee; Clearfield, Utah; and Allyn, Washington. As of February 28, 2012, outside the United States, the Company had, additional manufacturing locations, some with warehousing facilities, in Australia, Brazil, Canada, Colombia, Ecuador, Germany, Great Britain, India, Japan, Mexico, Russia, S! outh Africa, South Korea, Spain, Thailand and Venezuela.

The Company�� trademarks include Kellogg�� for cereals, convenience foods and its other products, and the brand names of certain ready-to-eat cereals, including All-Bran, Apple Jacks, Bran Buds, Cinnamon Crunch Crispix, Choco Zucaritas, Cocoa Krispies, Complete, Kellogg�� Corn Flakes, Corn Pops, Cracklin��Oat Bran, Crispix, Cruncheroos, Crunchmania, Crunchy Nut, Eggo, Kellogg�� FiberPlus, Froot Loops, Kellogg�� Frosted Flakes, Kellogg�� Krave, Frosted Krispies, Frosted Mini-Wheats, Fruit Harvest, Just Right, Kellogg�� Low Fat Granola, Mueslix, Pops, Product 19, Kellogg�� Raisin Bran, Raisin Bran Crunch, Rice Krispies, Rice Krispies Treats, Smacks/Honey Smacks, Smart Start, Kellogg�� Smorz, Special K, Special K Red Berries and Zucaritas in the United States and elsewhere; Crusli, Sucrilhos, Vector, Musli, NutriDia, and Choco Krispis for cereals in Latin America. Vive and Vector are brands in Canada; Coco Pops, Chocos, Frosties, Fruit�� Fibre, Kellogg�� Crunchy Nut Corn Flakes, Honey Loops, Kellogg�� Extra, Sustain, Muslix, Country Store, Ricicles, Smacks, Start, Pops, Optima and Tresor for cereals in Europe; and Cerola, Sultana Bran, Chex, Frosties, Goldies, Rice Bubbles, Nutri-Grain, Kellogg�� Iron Man Food, and BeBig for cereals in Asia and Australia. In additional, the Company trademarks are the names of certain combinations of ready-to-eat Kellogg�� cereals, including Fun Pak, Jumbo, and Variety.

Other Company brand names include Kellogg�� Corn Flake Crumbs; All-Bran, Choco Krispis, Froot Loops, Special K, NutriDia, Kuadri-Krispis, Zucaritas and Crusli for cereal bars, Komplete for biscuits; and Kaos for snacks in Mexico and elsewhere in Latin America; Pop-Tarts and Pop-Tarts Ice Cream Shoppe for toaster pastries; Pop-Tarts Mini Crisps for crackers; Eggo, Eggo FiberPlus and Nutri-Grain for frozen waffles and pancakes; Rice Krispies Treats for baked snacks and convenience foods; Special K! and Spec! ial K2O for flavored protein water mixes and protein shakes, and Nutri-Grain cereal bars, Nutri-Grain yogurt bars, for convenience foods in the United States and elsewhere. Brands like K-Time, Rice Bubbles, Day Dawn, Be Natural, Sunibrite and LCMs for convenience foods in Asia and Australia; Nutri-Grain Squares, Nutri-Grain Elevenses, and Rice Krispies Squares for convenience foods in Europe; Kashi and GoLean for certain cereals, nutrition bars, and mixes; TLC for granola and cereal bars, crackers and cookies; Special K and Vector for meal replacement products; Bear Naked for granola cereal, bars and trail mix and Morningstar Farms, Loma Linda, Natural Touch, Gardenburger and Worthington for certain meat and egg alternatives. It also markets convenience foods under trademarks and trade names, which include Keebler, Austin, Keebler Baker�� Treasures, Cheez-It, Chips Deluxe, Club, E. L. Fudge, Famous Amos, Fudge Shoppe, Kellogg�� FiberPlus, Gripz, Jack��, Jackson��, Krispy, Mother��, Murray, Murray Sugar Free, Ready Crust, Right Bites, Sandies, Special K, Soft Batch, Stretch Island, Sunshine, Toasteds, Town House, Vienna Creams, Vienna Fingers, Wheatables and Zesta.

The Company�� trademarks also include logos and depictions of certain animated characters in conjunction with its products, including Snap!Crackle!Pop! for Cocoa Krispies and Rice Krispies cereals and Rice Krispies Treats convenience foods; Tony the Tiger for Kellogg�� Frosted Flakes, Zucaritas, Sucrilhos and Frosties cereals and convenience foods, and Ernie Keebler for cookies, convenience foods and other products. It also includes the Hollow Tree logo for certain convenience foods; Toucan Sam for Froot Loops cereal; Dig ��m for Smacks/Honey Smacks cereal; Sunny for Kellogg�� Raisin Bran and Raisin Bran Crunch cereals, Coco the Monkey for Coco Pops cereal; Cornelius for Kellogg�� Corn Flakes; Melvin the Elephant for certain cereal and convenience foods, and Chocos the Bear, Sammy the Seal (aka Smaxey the Seal! ) for cer! tain cereal products.

Advisors' Opinion:
  • [By Paul Ausick]

    Big Earnings Movers: Kellogg Co. (NYSE: K) is up 0.7% at $62.72 after announcing a restructuring program. CME Group Inc. (NASDAQ: CME) is down 1.2% at $73.77 after reporting earnings this morning. Realogy Holdings Corp. (NYSE: RLGY) is up 7.7% at $43.79.

  • [By Joseph Hogue]

    Between Sept. 14 and Nov. 15 last year, as investors rushed to companies with solid, government-proof revenue, Family Dollar (NYSE: FDO) gained 2.6%, and Kellogg (NYSE: K) surged 7.4%.

Top Food Stocks To Watch For 2015: Prestige Brand Holdings Inc.(PBH)

Prestige Brands Holdings, Inc., together with its subsidiaries, engages in marketing, selling, and distributing over-the-counter healthcare and household cleaning products primarily in North America. The company?s Over-The-Counter Healthcare segment offers a portfolio of OTC products under nine core OTC brands, including Chloraseptic sore throat remedies, Clear Eyes eye drops, Compound W wart removers, Dramamine motion sickness products, Efferdent and Effergrip denture products, Little Remedies pediatric healthcare products, Luden's cough drops, PediaCare pediatric healthcare products, and The Doctor?s brand of oral care products. This segment also provides other significant brands that include Dermoplast first-aid products, Murine eye and ear care products, NasalCrom allergy relief product, New-Skin liquid bandage, and Wartner wart removers. Its Household Cleaning segment markets household cleaning products, such as abrasive and non-abrasive tub and tile cleaner, scrubb ing pads and sponges, dilutables, anti-bacterial hard surface spray for counter tops, and glass cleaners under the Comet, Chore Boy, and Spic and Span brands. Prestige Brands Holdings distributes its products through various retail channels, including drug, food, dollar, and club stores, as well as supermarkets and mass merchandisers. The company was founded in 1996 and is headquartered in Irvington, New York.

Advisors' Opinion:
  • [By Sean Williams]

    What: Shares of Prestige Brands (NYSE: PBH  ) , a marketer of over-the-counter health care and household cleaning products, jumped as much as 14% after it announced the acquisition of Australia's Care Pharmaceuticals.

Top Food Stocks To Watch For 2015: Ruddick Corporation(RDK)

Ruddick Corporation, through its subsidiaries, engages in the operation of a regional chain of supermarkets primarily in the southeastern and mid-Atlantic United States, and the District of Columbia. The company?s supermarkets offer an assortment of groceries, produce, meat and seafood, delicatessen items, bakery items, and wines, as well as non-food items, such as health and beauty care, general merchandise, and floral products; and pharmaceutical products. As of October 2, 2011, Ruddick Corporation operated 204 supermarkets, 136 in North Carolina, 36 in Virginia, 13 in South Carolina, 6 in Maryland, 5 in Tennessee, 3 in Delaware, 3 in the District of Columbia, 1 in Florida, and 1 in Georgia. The company was founded in 1891 and is headquartered in Charlotte, North Carolina.

Top Food Stocks To Watch For 2015: CVR Partners LP(UAN)

CVR Partners, LP engages in the production of nitrogen fertilizers including ammonia and urea ammonium nitrate. The company was incorporated in 2007 and is based in Sugar Land, Texas. CVR Partners, LP operates as a subsidiary of CVR Energy, Inc.

Advisors' Opinion:
  • [By Neha Chamaria]

    To take advantage of UAN's better pricing, CF smartly cut down on urea to scale up UAN production during the last quarter. The capability to flex production mix according to market conditions is among CF's biggest strengths. UAN is a high-margin product, so focusing on it makes sense. In its last quarter, UAN specialist CVR Partners (NYSE: UAN  ) converted 72% of ammonia produced to UAN. If that sounds incredible, there's more. From 80,700 tons of ammonia, CVR churned out a whopping 196,200 tons of UAN.

  • [By Sean Williams]

    Whom it competes against
    There is certainly no shortage of competitors in the fertilizer industry. Rentech is actually somewhat of a small player at a $1.4 billion valuation compared with CVR Partners (NYSE: UAN  ) at $1.9 billion, Terra Nitrogen (NYSE: TNH  ) at $3.8 billion, and Agrium (NYSE: AGU  ) at $13.5 billion.

Thursday, January 23, 2014

Toyota Ranks as World's No. 1 Car Company in 2013

Now that the count is in for 2013, the numbers are official. Toyota Motor Corp. (NYSE: TM) was the No. 1 car company in the world. It is quite a comeback from the factory destruction caused by the great 2011 Japanese earthquake and millions of recalls that eventually had CEO Akio Toyoda hauled before Congress and questioned about the safety of his company’s vehicles.

Reuters tabulated data that show the Japanese car manufacturer’s sales rose 2% to 9.98 million vehicles. General Motors Co. (NYSE: GM) followed with a 4% improvement to 9.71 million vehicles. Volkswagen was third with an increase of 5% to 9.70 million. At those rates, GM could fall into the third spot in 2014.

While a weak yen gave Toyota an advantage over its non-Japanese rivals, that is only part of the cause. Toyota has regained its reputation for quality. In the United States, this was shown with high scores in carefully watched research data from Consumer Reports and J.D. Power. Toyota’s sales rank it third in the U.S. behind GM and Ford Motor Co. (NYSE: F). Notably, Volkswagen’s sales in America have languished.

The AECA reports that in 2013, in the crippled market of Europe, Toyota’s sales dropped a mere 0.2% while overall sales in the region were off by 1.7%. VW, the largest car maker in the region, lost 0.6% of its sales. GM was staggered by a drop of 4.3%. The U.S. company has been unable to turnaround its buckling Europe operations.

GM and VW hold a substantial lead in China, the world’s largest car market. Each, along with joint venture partners, sold more than 3 million cars last year in the People’s Republic. Toyota lags with less than one million. Because the Chinese car market is so huge, Toyota likely will have to do better there to keep its global position.

Among Toyota’s advantages is its broad range of vehicles, which run from it Lexus luxury brand to the Prius, the best-selling hybrid in the world. The Japanese car company offers 23 models in the United States, excluding Lexus models — a number that second-tier manufactures like Chrysler find they cannot match.

Toyota, overcoming tremendous hurdles, has moved back on top.

Wednesday, January 22, 2014

Target cuts 475 as retail 'transformation' hits

Target Corp. is laying off 475 workers after a massive information-security breach stole the retail giant's Christmas.

Minneapolis-based Target has also eliminated another 700 vacant positions over the last six months, company spokeswoman Molly Snyder said. The cuts are across the company's operations, except that no workers in Canada are being cut, she said.

The company has struggled recently. First, like other middle-priced retailers, it has lagged the performance of very high-end and very inexpensive retailers. Then last month, disclosure of a data breach that let hackers steal 40 million customers' credit card information from Target's systems. Earlier this month, it said other information about 70 million customers, including e-mail addresses, had also been stolen during the breach.

"Retailing is in a transformative time,'' Target spokeswoman Molly Snyder said. "We're making decisions that will help us thrive and grow in the future.''

THIS WEEK: Questions over border arrests, Target hacking

DATA BREACH: Doubts over ID of Target malware author

Target's problems in Canada, and the data breach, are just further complications for a company that has been caught between fellow discounters Wal-Mart and Costco, and especially hard-hit by competition from Amazon.com, William Blair analyst Mark Miller said in a Jan. 10 report.

"They used to be the best at selling value, on a broad assortment, to a higher-end consumer," Miller said. "Now there is someone else who does a better job at the exact same thing."

The 1,900 store chain employs 361,000 people, Snyder said. The affected workers will get at least 45 days severance, though longer-tenured workers may get more, she said.The company is continuing to recruit in some areas, especially to support its online and mobile commerce initiatives, she said,

The company said Jan. 10 that holiday sales had been running ahead of forecasts until the first data breach was disclosed Dec. 19, and turned "materially weake! r" after the disclosure.

The company said comparable store sales would decline about 2.5% for the fourth quarter, compared with the same period in 2012. The company expects fourth-quarter earnings of $1.2 to $1.30 per share, compared with $1.50 to $1.60 before the breach was disclosed.

In the first nine months of the year, Target's net income fell 46%, with much of the blame falling on higher-than-expected losses on the company's Canadian expansion, according to Target's federal securities filings.

Snyder declined to say what parts of Target bore the brunt of the cuts. Local outlets in the Twin Cities reported large cuts in marketing, finance and technology services functions.

Tuesday, January 21, 2014

Favorite ETFs

Both of my ETF picks for 2014 may sound speculative. But each, in its unique way, is not. In fact, each provides a stealthy way to offset their risks, suggests Jim Lowell, editor of The Forbes ETF Advisor.

First Trust US IPO (FPX) began trading in April 2006, and has a market value of over $300 million—it's a hidden gem that won't run the risk of selling at a premium or discount to its NAV.

The IPOX-100 US Index is made up of the 100 largest, best performing, most liquid US initial public offerings; measuring the IPO's performance during their first 1,000 trading days. (IPOs get placed into the index on their sixth trading day and remain in the index for 1000 days.)

The top three sectors are consumer discretionary (25.9%), information technology (19.3%), and health care (16.8%). The top ten holdings are Facebook, AbbVie, GM, Phillips 66, Kinder Morgan, Kraft Foods, Marathon Petroleum, HCA Holdings, Dollar General, and Delphi Automotive.

First Trust US IPO is US-centric and a great complement to my more speculative pick, WisdomTree Japan Hedged Equity (DXJ), which is made up of dividend paying Japanese companies and an inbuilt hedge against Yen movements versus our almighty US dollar.

If the yen weakens, this fund should get a bit more return boost, on top of its holdings' returns, compared to its un-hedged competitors…and vice versa. But in 2014, so long as tapering takes hold, and the prospect for faster US growth turns into the reality of it, the yen should weaken versus the dollar.

As for its holdings, with Abenomics working its stimulus mojo and the macro global view brightening, the names herein should fare well—and if clouds gather, they should be able to weather any storm well.

It began trading in June 2006 and has a market value of over $11.9 billion—you won't have to worry about liquidity. The top three sectors are industrials (25.5%), consumer discretionary (22.8%), and information technology (15.6%).

The top ten holdings are Mitsubishi UFJ Financial, Toyota Motor, Canon, Honda Motor, Takeda Pharmaceutical, Japan Tobacco, Nissan Motor, Mitsubishi, Mitsui & Co, and Astellas Pharma.

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