David McNew/Getty Images General Motors (GM), after months of studying ignition-switch failures in the Chevrolet Cobalt, canceled a proposed fix in 2005, when a project engineering manager cited high tooling costs and piece prices, according to documents obtained by U.S. congressional investigators. A separate opportunity to address the defect was passed over by the National Highway Traffic Safety Administration in 2007, when it opted not to open a formal defect investigation even after an agency official had said a probe was justified, according to an interview between current NHTSA officials and staff members of the House Energy and Commerce Committee. Those decisions and this year's recall of 2.6 million small cars for faulty ignition switches are set to be the main focus of congressional hearings Tuesday and Wednesday. GM Chief Executive Officer Mary Barra and acting NHTSA Administrator David Friedman are being asked to explain the handling of years of complaints about stalling cars and disabled air bags that have now been linked to the switches and tied to 13 deaths. "Lives are at stake, and we will follow the facts where they take us as we work to pinpoint where the system failed," Representative Fred Upton, the chairman of the House Energy and Commerce Committee, said in a statement Sunday. GM opened an engineering inquiry about the Cobalt ignition switch in November 2004, after customers complained the engine "can be keyed off with knee while driving," according to a problem-tracking system document obtained by House investigators. Four months later, the Cobalt project engineering manager rejected a key slot change, citing cost and long lead times. "None of the solutions presents an acceptable business case," according to a GM memo cited by the House committee. 'Early Warning' The chief of NHTSA's Defects Assessment Division emailed other officials in the Office of Defects Investigation in September 2007, saying owner complaints from 2005 and "early warning" data about warranty repairs and injuries justified a probe, according to the memo from the committee. "Notwithstanding GM's indications that they see no specific problem pattern, DAD perceives a pattern of non-deployments in these vehicles that does not exist in their peers," the official said, according the memo issued before a committee hearing on vehicle defects. NHTSA chose not to open a formal defect investigation in 2007 after reviewing the air-bag data. In 2010, after a special crash investigation report was filed with NHTSA about a May 2009 Cobalt crash, the agency again considered a defect probe focused on the car's air bags. For a second time, the agency backed off after further reviewing data, according to the memo. 'At Stake' Barra and Friedman are scheduled to appear before Upton's committee Tuesday, and a Senate committee Wednesday. "As we have stated previously, the agency reviewed data from a number of sources in 2007, but the data we had available at the time did not warrant a formal investigation," a NHTSA spokesman, Nathan Naylor, said. "Recent data presented by GM provides new information and evidence directly linking the ignition switch to the air-bag non-deployment. That's why we are aggressively investigating the timing of GM's recall." The ignition-switch defect in six GM models including the Cobalt and Saturn Ion has been linked to the deaths in at least 31 crashes. GM recalled about 1.6 million cars worldwide in February, and an additional 971,000 last week. "We deeply regret the events that led to the recall," a GM spokesman, Greg Martin, said in an emailed statement. "We are fully cooperating with NHTSA and the Congress, and we welcome the opportunity to help both have a full understanding of the facts." Barra's Leadership GM approved production of the ignition switch in 2002 even though testing showed torque in the part fell short of the company's original specifications, the part's supplier, Delphi Automotive Plc, told House investigators. The congressional hearings present a test of leadership for Barra, who took over as GM's first female CEO on Jan. 15 and said she first learned the details of the recall two weeks later. Barra and other top executives are trying to remake the image of the Detroit-based automaker after last year shedding the final vestiges of U.S. government ownership linked to its 2009 bankruptcy. Barra has apologized for the slow response that resulted in deaths. GM has also hired an outside investigator to probe the delay and has created a vice president position in charge of global vehicle safety, as Barra has sought to shore up GM's image and reinforce the automaker's message that it's recreating itself after its $50 billion taxpayer-funded bailout. Firestone, Ford Upton has said he wants to know why regulations already in place didn't catch the GM problems sooner. Upton led the probe in 2000 over highway deaths linked to Firestone tires on Ford Motor's (F) Explorer sport-utility vehicles. Upton, 60, was the lead House author of the Transportation Recall Enhancement, Accountability and Documentation Act, or Tread Act. The 2000 law boosted communication between carmakers and the government and increased NHTSA's ability to collect data, with automakers required to report more potential threats such as defect claims or lawsuits, and recalls in other nations.
Monday, March 31, 2014
GM Canceled Ignition-Switch Fix in 2005 Due to Costs
Sunday, March 30, 2014
Ford's Explorer: To Russia, With Love
The first Ford Explorer to be built entirely outside of the U.S. rolled off an assembly line Thursday at the Ford Sollers Elabuga assembly plant in Russia. Photo source: Ford Motor Company
Here's an interesting first: On Thursday, a factory owned by Ford's (NYSE: F ) Russian joint venture built the very first Ford Explorer ever made outside of the United States.
Explorers have been assembled outside of the U.S. before, but until Thursday, all of those SUVs started out on an assembly line in Chicago. Those Explorers were partially assembled, and then shipped abroad as "knock-down" versions – kits, essentially – to be finished in other countries.
Ford, like other automakers, uses those "knock-down" kits as a way to get around some countries' tariffs on imported vehicles. But Thursday's start of Explorer production in Russia is about something else: Ford's goal of becoming a leading player in a quietly growing new market.
Still a relatively small market, but with huge potential
Russia is no longer a communist country, but Russians don't buy a lot of new cars, at least not yet. Sales volumes in the world's largest nation are still tiny compared to the huge market for vehicles that has blossomed in its southern neighbor, China, over the last decade.
Russians bought just 2.94 million vehicles last year, compared to 14.5 million here in the U.S. and 19.3 million in China. And that number is growing very slowly – sales in the first quarter of 2013 were essentially flat versus year-ago totals.
Russia is still kind of a challenging place to sell cars, and not just because folks don't have a lot of money. Many of Russia's roads and bridges are poorly maintained, and the infrastructure isn't there to support lots of traffic, at least not yet. Most people still move about the country by rail. But given Russia's vast wealth of natural resources, the potential, like Russia itself, is huge.
Ford thinks Russia will soon overtake Germany to become Europe's largest car market – perhaps as early as next year, a Ford executive said last week. And Ford is one of a handful of carmakers working hard to get established in the Russian market while it's still relatively small.
A sizable presence in Russia, set to grow soon
Already, Ford has three factories in Russia, built with its local joint-venture partner, Sollers. And the brand is well-established, with the Focus compact a regular on Russia's best-selling-car charts. It was the country's fourth-best-selling car last month, according to the invaluable Best Selling Cars Blog.
Right now, Ford has the capacity to build 120,000 vehicles a year in Russia, a number that will expand to 300,000 as it adds additional production lines over the next couple of years.
The challenge so far for Ford – as well as for General Motors (NYSE: GM ) , which is also establishing a local presence in Russia -- has been supply lines. Unlike China, Russia doesn't (yet) have many local companies that can produce parts and supplies for Ford at a global standard of quality. That means that Ford has had to import many parts, a cumbersome process that can involve long customs delays and other hassles.
But that is changing. Ford only gets about 20% of its parts locally now, but hopes to reach 60% by 2015, the company said recently.
Ford has clearly learned from experience
One of Ford's biggest mistakes in the last decade was its failure to get established in China's booming market early on. Preoccupied with its problems elsewhere, the Blue Oval looked on as rivals like GM and Volkswagen (NASDAQOTH: VLKAY ) established themselves as China's market heavyweights.
Ford is now scrambling to catch up in China (and doing a good job of it, by the way). But its efforts to get established in Russia while the market is still small should serve it well as the market there continues to grow.
Is it time to worry about Ford?
If you're concerned that Ford's turnaround has run its course, relax -- there's good reason to think that the Blue Oval still has big growth opportunities ahead. We've outlined those opportunities in detail, in the Fool's premium Ford research service. If you're looking for some freshly updated guidance to Ford's prospects in coming years, you've come to the right place -- click here to get started now.
Barbara Piasecka Johnson: The Maid Who Launched 1,000 Prenups
Jack Kanthal, AP Barbara Piasecka Johnson poses at her estate in Princeton, N.J., Wednesday, June 4, 1986. It's a classic story: Aging wealthy man meets younger woman. They fall in love (or some variation thereof), get married (or at least cohabitate) until he dies (or she gets greedy) and then, a legal battle begins. The two principals, or some of their relatives, hire a passel of lawyers, file mountains of depositions, and pay vast sums to lawyers before reaching some sort of settlement. And though it's a tale oft told, it remains endlessly fascinating as it's replayed, every year or two, with a fresh cast and a new set of headlines. Even years after the events, in the most notorious cases, the principals retain the kind of fame that is so powerful that it doesn't even require a last name. Kimora Lee. Anna-Nicole. Ivana. And Barbara. Barbara Piasecka Johnson was the first contemporary version of the story, the one who arrived on the scene just when celebrity culture was ramping up, fueled by an explosion in mass media and a fascination with the lifestyles of the rich and famous. She was the prototypical rags-to-riches girl, a Polish woman who arrived in New York City in 1968 with $200 in her pocket. Before long, she was working as a cook and maid for the Johnson family, of Johnson & Johnson fame. And it wasn't too long after that before she was winning the heart of J. Seward Johnson Sr., heir to the makers of Band-Aids.
Saturday, March 29, 2014
3 Stocks Under $10 Making Big Moves
DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.
>>5 Big Trades to Brace for a Correction
Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.
Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.
>>5 Stocks With Big Insider Buying
With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.
DFC Global
DFC Global (DLLR), through its subsidiaries, provides retail financial services to unbanked and under-banked consumers, and small businesses. This stock closed up 5.5% to $8.76 a share in Thursday's trading session.
Thursday's Range: $8.11-$8.78
52-Week Range: $6.24-$16.88
Thursday's Volume: 366,000
Three-Month Average Volume: 705,231
From a technical perspective, DLLR spiked sharply higher here back above its 50-day moving average $8.51 with lighter-than-average volume. This move is quickly pushing shares of DLLR within range of triggering a major breakout trade. That trade will hit if DLLR manages to take out Thursday's high of $8.78 to some more near-term overhead resistance levels at $8.96 to $9.10 with high volume.
Traders should now look for long-biased trades in DLLR as long as it's trending above some near-term support levels at $8 or at $7.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 705,231 shares. If that breakout gets underway soon, then DLLR will set up to re-fill some of its previous gap-down-day zone from January that started at $10.96.
Halc
Halc (HK), an independent energy company, is engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the U.S. This stock closed up 4.2% to $3.92 a share in Thursday's trading session.
Thursday's Range: $3.72-$3.97
52-Week Range: $3.16-$8.12
Thursday's Volume: 5.04 million
Three-Month Average Volume: 5.02 million
From a technical perspective, HK bounced sharply higher here right off its 50-day moving average of $3.71 with above-average volume. This stock has been making lower highs over the last three months, with shares trending up from its low of $3.16 to its recent high of $4.16. Shares of HK are now starting to move within range of triggering a near-term breakout trade. That trade will hit if HK manages to take out Thursday's high of $3.97 to some more key overhead resistance at $4.16 with high volume.
Traders should now look for long-biased trades in HK as long as it's trending above some key near-term support levels at $3.60 or at $3.51 and then once it sustains a move or close above those breakout levels with volume that hits near or above 5.02 million shares. If that breakout starts soon, then HK will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $4.58 to $5.
Gafisa
Gafisa (GFA) operates as a homebuilder in Brazil. This stock closed up 7.2% to $2.96 a share in Thursday's trading session.
Thursday's Range: $2.79-$2.98
52-Week Range: $2.22-$4.67
Thursday's Volume: 1.92 million
Three-Month Average Volume: 1.36 million
From a technical perspective, GFA soared sharply higher here right above its 50-day moving average of $2.75 with above-average volume. This spike higher on Thursday is starting to push shares of GFA within range of triggering a big breakout trade. That trade will hit if GFA manages to take out some key overhead resistance levels at $3 to $3.09 and then once it clears $3.17 with high volume.
Traders should now look for long-biased trades in GFA as long as it's trending above its 50-day at $2.75 or above its 200-day at $2.67 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.36 million shares. If that breakout triggers soon, then GFA will set up to re-test or possibly take out its next major overhead resistance levels at $3.44 to $4. Any high-volume move above $4 will then give GFA a chance to tag its next major overheard resistance level at $4.36.
To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
RELATED LINKS:
>>3 Stocks Spiking on Big Volume
>>Beat the S&P in 2014 With the Stocks Everyone Else Hates
>>3 Hot Stocks to Trade (or Not)
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.
How to Kill a Zombie (Foreclosure) in Your Neighborhood
Getty Images Millions of us love zombies in the movies or on "The Walking Dead," but when they start showing up in your neighborhood, that's where the fun ends. And if you think rotting corpses are scary when they start moving around, they're almost as bad when they're houses people moved away from. Of course, I am referring to zombie foreclosures: properties where a foreclosure was initiated and the homeowner has walked away, but the bank hasn't completed the process, leaving it in limbo for months or even years. In general, the former occupants don't even realize that, technically, they still own the house. The problem with these undead domiciles is that, once abandoned, they quickly fall into disrepair and become targets for vandalism, graffiti and squatters, all of which can bring down the value of surrounding homes. According to Realty Trac, one out of every five homes currently in foreclosure is a zombie property, and in certain metro areas in states like Florida and Nevada -- hit especially hard when the housing bubble burst in 2008 -- that number can be as high as one out of three. If you have a suspect property in your neighborhood, there are a few things you can do to confirm it's a zombie foreclosure. First, search for a foreclosure file at your local courthouse or recorder's office. You'll want to pay attention to the date of the last recorded action on that file, and what type of action it was. If you see either an "Order of Sale" or a "Postponement of Sale" as the last action and it is more than 90 days old, you might be dealing with a zombie foreclosure. Next, contact the utility companies and ask about the account status of the property in question. Though it's not a definitive indicator, homes with no water or power are very likely to be vacant. Finally, do a visual inspection of the property, ideally with some like-minded neighbors. Obviously, an overgrown yard, accumulated debris, broken or boarded up windows, padlocked doors, signs or notices from servers, will serve to indicate the property is abandoned. If after all this, you're still not sure if you are dealing with a zombie, conduct a title search to determine the ownership status –- something many neighborhood real estate agents will be happy to do for you. Aim for the Brain Once you've determined that you are in fact dealing with a zombie foreclosure her are some potential ways you can kill it. Notify local contractors, developers, or community redevelopment firms about the property. Zombies can be ideal investment candidates for folks who specialize in rehabbing and flipping homes. Also, check your state and local laws regarding foreclosures –- something, once again, that a friendly local real estate agent can help you with. Some areas have laws on the books that require a foreclosure to be completed by the note holder within 90 days of the original sale date. If this is the case in your area, and the property is past that 90 day mark, contact the servicer of the loan. Most major servicers have a property preservation department, so notify them that their zombie is on the loose. The civil codes vary, but in general, if the note holder fails to follow through on a pending foreclosure, it can be fined. That's usually enough to light a fire under a bank, but if it still doesn't take action, you can then file a complaint against it with the Consumer Financial Protection Bureau. If none of these actions gets the problem solved, your final option is to petition the Clerk of the Court to order the completion of the foreclosure. This course requires legal representation, so you will have to either contact your local city official or an attorney to more the process forward. In all cases however, the more people you have on your side the better your chances are. Agencies, officials, and even banks are more likely to respond to your requests if they know you have a large number of voters and consumers standing behind you. So get your fellow homeowners together and get organized. As the band of survivors on "The Walking Dead" knows all too well, it takes a team to effectively fight off zombies.
Friday, March 28, 2014
The Internet Fund Avoiding Facebook, Rest Of Bubble 2.0
Have you heard the one about the Internet fund that's afraid of dot-coms?
It sounds like a bad money manager joke, but that's actually the best way to describe the Kinetics Internet Fund. "Truthfully, if we changed the name, we'd probably get more money," says cofounder and portfolio manager Peter Doyle, jacket slung over a chair in a conference room at his midtown Manhattan office.
Doyle's quip has two meanings: His Internet Fund was once the darling of Wall Street–one of the top-performing mutual funds of 1998 and 1999. But it crashed and burned a lot of investors, falling from $1.4 billion in assets in early 2000 to as low as $188 million by 2002.
But Doyle is not just referring to his fund's lingering tech-bubble taint–he's also speaking about his alternative approach.
Despite its seemingly self-evident name and legacy as the first ever Internet-focused mutual fund, there aren't many websites left in Doyle's 56-company portfolio today. Instead Doyle is proving that in the current bubbly environment for stocks of social networks and mobile apps, the best way to make money from the Net is old-fashioned: value stocks with long product life cycles, deep content libraries, ample cash flow–and ideally a billionaire behind the wheel.
Kinetics Internet has a mere $180 million in assets and is one of eight mutual funds, including the much larger Paradigm Fund, run by $9.7 billion Horizon Kinetics. In 2013 it ranked among the top-performing equity mutual funds, logging a 44% gain. Since its inception in 1996 the fund's 16% average annual return has more than doubled that of the S&P 500. Its 1.8% expense ratio is steep, but that has more to do with its size than costs. Turnover at the no-load fund is a mere 8%.
Kinetics Internet doesn't own any Facebook stock because Doyle, 51, says he doesn't feel comfortable investing in a site so exposed to the whims of popular opinion–let alone one that is spending $19 billion on WhatsApp, a messaging service with only $20 million in revenues.
"Maybe WhatsApp is a great investment," he says. "But I've got my doubts, and certainly handing over $15 billion in stock tells you what they think about their company. They're not interested in buying back their shares; they're giving them away."
Best Buy: On the Right Track?
The big picture investment thesis for this recommendation hinges on our belief that there is room in the market for a big box type brick-and-mortar consumer electronics store, says Tyler Laundon, editor of 100% Letter.
Best Buy (BBY) is the world's largest electronics chain. It's trying to compete on price, among other attributes. And its turnaround comes at a time when consumer electronics in the US had a tough year. But I think management is on the right track and is well positioned to grow the business over the coming year.
The company has cut more costs than expected. Its Renew Blue program called for $725 million in cuts. But, as of the end of the fiscal year, BBY delivered cuts of $765 million. Now, CEO Hubert Joly sees $1 billion as the next target.
Another bright spot was that comparable online sales were up by 25.8% to $1.57 billion in Q4. If we step back and look at the full year, online sales growth of 19.8% in 2013 is a big step in the right direction. And this comes on top of 11.4% online sales growth in 2012, with a really bad Web site.
While BBY's online sales are still well behind those of many competitors, it's important to realize the company has achieved this growth despite a still-antiquated Web site and fulfillment strategy.
Late in 2013, many improvements were in place, but rolling out an integrated online and in-store sales strategy isn't an overnight project and I expect we'll see continued improvement in the year ahead.
Is BBY's turnaround a sure thing? No, of course not. But it still appears to me to be intact, despite the rough comparable holiday sales and the subsequent stock crash.
Yes, the company has a lot of room to improve, both in store and online. But that's why this is a turnaround story, and not a growth story. The turnaround isn't yet complete. I see the next 12 months as a make-or-break period for the company.
As BBY rolls into 2014 with these improvements largely in place, their focus will be on getting customers to open their wallets.
At the current share price, investors should decide now if they believe BBY will be successful over the coming one-to-three years. I do, and I've opened my wallet and added more shares to my personal account. My advice is that you do the same.
Subscribe to 100% Letter here…
More from MoneyShow.com:
Five Retailers for Your Shopping List
Boeckl's Bets: The Long-Cycle for Tech
Apple Unveils CarPlay
Thursday, March 27, 2014
Target date funds to capture 63% of 401(k) contributions by 2018
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The popularity of target date funds continues to gain momentum and will soon absorb the majority of 401(k) contribution, according to a study released Wednesday.
By the year 2018, target date funds will attract 63.4% of 401(k) contributions, and will constitute 35% of total 401(k) assets, the Cerulli Associates Inc. study predicts.
"Asset managers must have a strategy in place to grow target-date assets; otherwise they risk irrelevance in the defined-contribution market," the report said.
(See also: Advisers' role in target date funds grows more complex.)
Target date funds' most appealing characteristic by far is risk management and asset allocation expertise, according to Cerulli. This feature was cited as a very important quality by 84% of respondents; 42% mentioned the funds' diversity of asset classes.
“The funds let you choose a portfolio that matches your retirement date, and adjusts the portfolio allocation over time so that you always have the appropriate level of risk,” said Wyatt Lee, a vice president at T. Rowe Price Group Inc. “This solves some of the constant mistakes that investors often make on their own.”
Why Paychex (PAYX) Is Gaining After Hours
NEW YORK (TheStreet) -- Human resources specialist Paychex (PAYX) is climbing in extended trading after reporting third-quarter results above analysts' estimates.
After the bell, shares added 2.7% to $43.06.
The company, which provides payroll, benefits and outsourcing support, recorded net income of 44 cents a share, 2 cents higher than averages compiled by Yahoo! Finance.
Revenue climbed 7.3% year on year to $636.5 million, beating estimates by $7.65 million. Must Read: Warren Buffett's 10 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates PAYCHEX INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: "We rate PAYCHEX INC (PAYX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value." You can view the full analysis from the report here: PAYX Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Stock quotes in this article: PAYXWednesday, March 26, 2014
David Winters - Are Varying Government Regulations a Factor in Global Value Investing?
Source: Wintergreen Advisers
Also check out: David Winters Undervalued Stocks David Winters Top Growth Companies David Winters High Yield stocks, and Stocks that David Winters keeps buying
About the author:Grass Hopper
Visit Grass Hopper's Website
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Tuesday, March 25, 2014
Currencies Wallow In No Mans Land
What news event is going to get the forex market to stand up and take note? The remainder of this week is probably confined to a tight currency range with market participants continuing to look for the various reasons why currency pairs are moving. Yesterday's EUR bears were poised to commence a lap of honor, fuelled by hedge funding selling, only to find by day's end that the 18-member single currency ended up trading north again of the psychological €1.3800 handle after testing last weeks low. Despite the EUR making a strong recovery in the last 24-hours the underlying negative outlook still remains. Mostly the Chinese President telling the US that a political resolution to the crisis in Ukraine would serve the interests of all sides fueled yesterday's sharp gain. Dovish rhetoric from EU and ECB members flashing across the ticker that the EUR at €1.40 is too strong coupled with the Fed's hawkish stance should be capable of confining EUR rallies to a minimum. Initially, the markets conviction for a higher dollar and sooner than expected Fed hikes did start out strong, however, it seems to have flittered away since. Expect more traders to remain sidelined, looking to the next big data point for inspiration.
This morning's German Ifo data has left the single currency in the doldrums. The German Ifo index has come in at 110.7, modestly weaker than the market expected 111 print. The bulk of the weakness is due to the "expectations index" which is presently being dominated by the global outlook having become less certain as worries over China and Russia intensifying. The breakdown revealed that the current conditions index actually surprised to the upside – this is what the market should be focusing on when gauging what's happening in Germany (115.2 vs. 114.4). The Ukraine crisis appears to have been acknowledged in the survey but obviously not seen as a major headwind to German growth prospects just yet. For the EUR, only above €1.3920 would suggest a return to its recent high prints. Speculators remain reluctant to sell the EUR after losing heavily yesterday afternoon and after being burnt running long EUR positions into last week's FOMC meeting. Many will likely consider shutting up shop and wait for next week's key events (ECB, NFP), again leaving the currency pair vulnerable to liquidity constraints.
The tit-for-tat sanctions are widening. Earlier today G7 officials announced they would forego the planned G8 summit in Sochi this June in continued protest of Moscow annexation of the Crimea peninsula. Officials are hardening their stance following the swift Moscow-endorsed Crimea referendum as well as elevated concern over the presence of Russian troops amassing near the east Ukrainian borders. So far it seems that the Russian financial markets have shrugged off the news while the RUB continues to benefit from substantial seasonal tax payments. It would be interesting to see how much Russian interest has been behind keeping the EUR aloft in recent sessions.
The market should be more cognizant of "who says what" as official rhetoric continues to dominate most currency price moves, especially in Europe and Australia. The Aussie has been on a 'tear of late,' with real money demand being blamed as a factor in the last +25c climb higher. The currency pair seems to be eyeing market stops above the psychological $0.9160, last December's high. For the techies, failure to sustain gains above these levels should leave the currency vulnerable to pressures from the downside. The RBA's Governor Stevens is expected to speak on Wednesday in Hong Kong. Be forewarned, despite the frustrated efforts, Stevens continues to champion the cause for a lower AUD aggressively talking down his currency at most public opportunities.
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Tighter US Yields Supports The Dollar
The post Currencies Wallow In No Mans Land appeared first on MarketPulse.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
Posted-In: Forex Markets
Originally posted here...
Most Popular A Closer Look At Marijuana Stocks With Alan Brochstein The Hows And Whys Behind Microsoft Windows Vista's Tumble Cramer Not Worried About Salesforce.com Slide Have We Seen The Top Of The Market? AT&T CFO Lays Out Key Questions In Comcast And Time Warner Merger Stocks To Watch For March 24, 2014 Related Articles () Vodafone FTTH Ready for Spanish Launch - Analyst Blog Comcast Expanding WiFi Network - Analyst Blog Is Arris Facing a Potential Threat? - Analyst Blog Cisco Invests $1B in Cloud Service - Analyst Blog Southwest to Multiply Reagan Operations - Analyst Blog Wesco Aircraft Extends GKN Contract - Analyst Blog Around the Web, We're Loving... MLM's Score a Victory on China RulingSurvey: Economists see growth pickup this year
The consensus of the 48 economists surveyed by the National Association for Business Economics is that bad weather cut first-quarter growth to a weak annual rate of 1.9%, but that growth could exceed 3% by year's end. NABE's report, released Monday, covered a survey period from Feb. 19 through March 5.
Their forecast for average U.S. economic growth of 2.8% this year is better than the 2.5% rate they predicted in NABE's December survey. Those surveyed expect consumer spending to now increase 2.6% in 2014, not 2.4%, as hourly wage growth is forecast to rise faster than inflation. GDP is expected to grow an average 3.1% in 2015.
"Conditions in a variety of areas — including labor, consumer and housing markets — are expected to improve over the next two years, while inflation remains tame," NABE President Jack Kleinhenz, chief economist of the National Retail Federation, said in a statement.
Given the stronger growth forecast, 57% of the economists surveyed believe the Federal Reserve will end its bond purchases in the fourth quarter, as the central bank has signaled it plans to do. Another quarter think it will happen even before that, though 17% think the Fed will keep buying bonds into 2015.
MORE: Fed changes guidance on raising interest rates
The Fed has been buying bonds for the past several years with the aim of driving down long-term interest rates to stimulate spending and economic growth. Now that the economy is slowly but steadily improving, it has been tapering those purchases. At each of its last three policy meetings, including last week's, the Fed cut bond purchases by $10 billion to the current pace of $55 billion a month. There are six meetings left in 2014.
MORE: Did Wall Street misread Fed chief Yellen's comments?
One-third of r! espondents said the Fed could even raise short-term interest rates this year, though more than half think it won't happen until next year. Fed Chair Janet Yellen said Wednesday that with the job market still weak, the central bank intends to keep short-term rates near zero for a "considerable" time and would raise them only gradually. She also said the Fed wouldn't be dictated solely by the unemployment rate, which Yellen feels overstates the health of the job market and the economy.
Yellen appeared to jolt investors last week when she tried to clarify the Fed's timetable for raising the short-term rate. She suggested that the Fed could start six months after it halts its monthly bond purchases. That would mean the rate could rise by mid-2015. A short-term rate increase would elevate borrowing costs and could hurt stock prices. Stocks fell after Yellen's mention of six months. The Dow Jones industrial average ended that day down more than 100 points.
Monday, March 24, 2014
Sleep Well with Mattress Firm
Our latest featured breakout stock recommendation is a Houston, Texas retailer of mattresses, with annual revenues of $1.2 billion, notes technical analyst Leo Fasciocco, editor of Ticker Tape Digest.
Mattress Firm Holding (MFRM) offers both traditional and specialty mattresses, bedding accessories, and related products. MFRM also offers bed frames, pillows, tempurpedic pillows, headboards, and memory foam mattresses.
The stock has broken out from an 11-week, cup-and-handle base. The move was triggered by the company upping its earnings forecast for the year.
MFRM reported earnings for the fourth quarter increased to 25 cents a share from 22 cents a year ago. The reported earnings topped the consensus estimate by one cent a share.
Analysts are forecasting 14% increase in MFRM's earnings for the fiscal year ending in January of 2015. They look for net of $1.90 a share, up from $1.66 in fiscal 2014. Going out to fiscal 2016, profits are expected to climb 19% to $2.25 a share.
The stock came public back in late 2011, trading around $22. It soared to a peak of $48 in 2012, before falling back sharply to $22. Since then, the stock has worked higher to get close to its prior peak.
We are targeting MFRM for a move to $54 off this breakout. A protective stop can be placed near $44.50.
A key fund buyer recently was the 4-star rated Wasatch Small-Cap Growth Fund which purchased 405,738 shares. That gave it a 1.2% stake in MFRM. The largest fund holder is Baron Small-Cap Retail Fund, 4-star rated, with a 4.4% stake.
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Tighter US Yields Supports The Dollar
Last week was the first real opportunity for Janet Yellen to stamp some of her authority on global Capital Markets. In her first managed FOMC meet, the Fed continued its modest taper, and probably more significantly, reduced its unemployment threshold guidance from its +6.5%. None of these moves truly surprised the market. It was what she said in her post rate press discussion that had Capital Markets sit up and take note. For some time the Fixed Income market has been waiting for a good enough reason to price in yield differentials. The gyration of US yield products has had more to do with the supply and demand for safe haven purposes rather than the fundamentals of the US economy. A slip of the tongue or not, it seems that the Fed very much wants to get back to basics after Yellen suggested the Fed would consider hiking rates as soon as six-months after the end of QE3 – the US could be hiking as early as this time next year.
Yellen's verbal forward guidance has certainly led to many having to recalibrate their portfolio position. Is the era of a low rate environment close to an end? Like all good Central Bankers Yellen was emphatic that markets should not make "strict interpretations" and reiterated that the first rate hike is highly data-dependent and will reflect a "balanced judgment" about prospects both for labor market slack and inflation pressure. As to be expected, US bond traders have aggressively been selling the middle and short-end of the US curve. Fed fund futures for next year are now fully pricing in at least a +50bps increase in rates by mid-summer. The forex market could see the dollar gain more support this week as US yields have the potential to back up even further with the pressure of FI supply. The rate market needs to take down +$96B in US 2′s, 5′s and 7-year product this week. This will obviously be a challenge and recent Fed rhetoric is reason enough to front run all three issues. Yellen's 'new' stance has had the EUR and Yen predominately on the back foot, a theme that's expected to gather further backing in the medium term.
The 18-member single currency was able to gather some brief support from this morning's stronger flash French PMI's (51.9), however Gallic support was limited as three German flash readings missed their mark and has sent the EUR back down and through the psychological €1.3800 level and towards last weeks lows. The EUR's move has been aided further by macro and Scandinavian interest, which have been the main sellers of the currency so far this morning in Europe. Even the techie traders have lost some of their patience with the EUR, especially after the false break happened to clear stops above the 21-DMA (1.3815-20) and then retreated. The sale of EUR/crosses is likely to be rather popular this week as persistent dovish ECB chatter is fuelling expectations that the ECB would ease next month.
China flash manufacturing PMI happened to hit an 8-month low (48.1) and produce its third consecutive contraction in overnight trading. It's a tad strange, one would have expected the markets to come under more pressure with the miss, however investors seem to be enamored with the rhetoric that Beijing may be about to launch a series of "new" policy measures to stabilize growth. To date, their currency has now given back all of last years gains as the PBoC lets the currency weaken further to curb hot-money inflows. Last week, policy makers widened its daily Yuan trading band from +1% to +2%. However, in the overnight session the PBoC set a slightly stronger Yuan midpoint for the first time in five opportunities.
The safe haven Yen has started this week under pressure against its G7 partners. It seems that the market is cautiously optimistic that the geopolitical tensions between Russia and the west will not get any worse. Contradictory signals from Moscow on retaliation against the wests economic sanctions seems to be giving the safe-haven bears some breathing space. Event risk premium that was applied ahead of the weekend is slowly being unwound as we commence a new workweek stateside.
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Qualitative Guidance And Yellen Drive USD Upwards
The post Tighter US Yields Supports The Dollar appeared first on MarketPulse.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
Posted-In: Federal Reserve Markets
Originally posted here...
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With a wave of Western sanctions over the annexation of Crimea about to hit, Putin has called on billionaires to pay taxes at home.
The Russian president met Thursday in Moscow with some of Russia's richest men. Putin said business "ought to register on Russian territory and pay taxes in our motherland."
President Obama said Thursday that he is levying additional sanctions against 20 high-level Russian officials and associates of Putin and Russia's Bank Rossiyaa.
German Chancellor Angela Merkel said on Thursday that Russia will face escalating European Union sanctions if it does not take steps to ease the crisis over Crimea.
MORE: The latest on the Ukraine crisis
Russia followed suit and announced it was imposing its own entry bans on nine White House aides and members of Congress in response to the sanctions announced by President Obama.
Under the new sanctions announced by the White House, any assets that the individuals have in U.S. jurisdiction have been frozen and Americans are prohibited from doing business with them.
The Ukrainian government says it plans to withdraw its troops from Crimea, where Russia has been taking control as its forces continue to seize military installations.
Contributing: The Associated Press
Sunday, March 23, 2014
Retirement: A third have less than $1,000 put away
About 36% of workers have less than $1,000 in savings and investments that could be used for retirement, not counting their primary residence or defined benefits plans such as traditional pensions, and 60% of workers have less than $25,000, according to a telephone survey of 1,000 workers and 501 retirees from the non-profit Employee Benefit Research Institute and Greenwald and Associates.
Only 44% say they or their spouses have tried to calculate how much money they'll need to save by the time they retire so that they can live comfortably in their golden years, the survey shows. Workers who have done calculations on what they need to save tend to have higher levels of savings than those who haven't crunched the numbers.
"There's an incredible difference between those lucky enough to have a retirement plan and those who don't," says Jack VanDerhei, the institute's research director and co-author of the 2014 Retirement Confidence Survey. "What's really striking is that 73% of those without a retirement plan, such as an IRA, 401(k) or 403(b), have less than $1,000 in savings and investments."
The reason defined benefits weren't included in the total is most people don't know how much those are worth, he says.
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Many people realize that they are not on track in saving for retirement, and the two most important reasons they give for not saving more are cost of living and day-to-day expenses, VanDerhei says.
People's confidence that they'll have a comfortable retirement has risen slightly after record lows of the last five years, with 18% of workers in 2014 saying they are very confident they can retire comfortably, up from 13% who were very confident! in 2013.. Meanwhile, 24% are not at all confident they have enough saved for a comfortable retirement, about the same as 2013.
Retirement confidence is present mostly in people with higher incomes and in those with retirement plans, VanDerhei says.
The survey "highlights the impending retirement crisis that we will face over the next 20 years," says Mark Fried, president of TFG Wealth Management in Newtown, Pa. "When I see these numbers I have ask the question: How did we get here? We need more financial education in the schools, in the media, in the workplace."
If possible, people 40 and older should try to save up to 20% of their income, he says. "If you can't afford to do that right now then set this as a target, and as you get annual raises put aside part of each raise until you reach the 20% number," Fried says.
Invest in your company's retirement account up to the match. One of the best ways to increase your retirement savings is to take advantage of your employer match if you have one, he says.
John Piershale, a certified financial planner at Piershale Financial Group of Crystal Lake, Ill., says: "Try to imagine how much you are going to need to have saved up to last you 20 to 30 years during retirement. The only way you can figure that out is do some retirement calculations. We help clients figure this out."
If people are way behind in saving for retirement, they may need to work longer at their current job or get a second job to help fill the savings gap. Piershale says. "If you had the idea that you were going to retire at 62 or 65, and you don't have enough saved up, then you have to keep working."
Other survey findings:
• Debt is weighing heavily on many people, with 58% of workers and 44% of retirees saying they have a problem with their level of debt.
• Like workers, many retirees are also short on funds, with 58% of them having less than $25,000 in savings and investments, not counting their primary residence or defined benefits! plans (tr! aditional pensions); and 29% having less than $1,000.
• Although 65% of workers plan to work for pay in retirement, only 27% of retirees say they are working for pay during their golden years.
Total savings and investments reported by workers, not including value of primary residence or defined benefit plans such as a traditional pension.
Less than $1,000, 36%
$1,000 to $9,999, 16%
$10,000 to $24,999, 8%
$25,000 to $49,999, 9%
$50,000 to $99,999, 9%
$100,000 to $249,999, 11%
$250,000 or more, 11%
Total savings and investments reported by retirees, not including value of primary residence or defined benefit plans such as traditional pensions:
Less than $1,000, 29%
$1,000 to $9,999, 17%
$10,000 to $24,999, 12%
$25,000 to $49,999, 8%
$50,000 to $99,999, 7%
$100,000 to $249,999, 11%
$250,000 or more, 17%
Source: Employee Benefit Research Institute
American Airlines euphoria: Be very afraid
This came after the company's valuation had already risen more than 50% between when the merger was announced in early 2013 and when the merger closed near the end of the year. All in all, American's market value has grown from an estimate of $11 billion last February to $28 billion today.
While this has happened, analysts and investors have continually increased their expectations for the new American Airlines' earnings. This cycle of rising expectations and a rising stock price is unsustainable. American Airlines stock is likely to correct sharply lower later this year as reality sets in again.
Expecting a record profit
Last year, American Airlines reported a solid profit of $1.95 billion before special items. That was vastly higher than the company's 2012 adjusted profit of $407 million, primarily due to cost savings related to American's bankruptcy filing, as well as profit growth at US Airways. (All of these figures combine the results of American Airlines and US Airways.)
American should be able to build on that profit in 2014 as it realizes additional cost savings from the bankruptcy process, replaces inefficient aircraft with better planes, and reaps early revenue synergies from its expanded network.
However, many analysts and investors are now looking for a lot more than "earnings growth." Analysts surveyed by Bloomberg projected on average that American Airlines will nearly double its profit this year to $3.5 billion! These bullish estimates seem out of control.
First signs of trouble
To some extent, the rapid rise in investor expectations was driven by the strong Q1 guidance that American provided in late January. At that time, the company projected a 6%-8% Q1 operating margin.
Earli! er this week, American Airlines released its February traffic statistics, and the company noted that it had canceled 28,000 flights in the first two months of the year. American reiterated its unit revenue guidance but cautioned that costs would come in higher than expected. Despite this disclosure, the average analyst EPS estimate has barely budged, dropping just $0.01.
Four specific headwinds
Looking ahead, American Airlines faces four particular demand-side headwinds that will hit in the next year or two -- leaving aside the risk of integration problems. These all involve increased competition in markets where American is particularly strong.
1. A real competitor in London
First, since creating a joint venture with British Airways several years ago, the American Airlines/British Airways alliance has dominated travel between the U.S. and London's Heathrow Airport. Most notably, the two partners offer 17 daily nonstops between New York and London, including 12 nonstops on the JFK-Heathrow route. This is by far the most important international route for business travelers from the U.S.
However, Delta Air Lines (DAL) recently received antitrust approval for its joint venture with Virgin Atlantic. Later this month, the two carriers are implementing a coordinated schedule consisting of nine daily roundtrips between New York and London.
Delta still can't match the presence of American and British Airways on this route. However, its new joint venture makes Delta a lot more competitive. Combine this with Delta's brand-new terminal at JFK Airport and a leading position in the New York air travel market, and Delta is in a position to win market share among profitable business travelers.
2. A new threat in the transcontinental market
Second, American is the clear market leader on the busy transcontinental route from JFK Airport to Los Angeles, as well as a major player on the route from JFK to San Francisco. These routes have very high fares, and American is deploy! ing its b! rand-new A321T aircraft on both routes. With 10 first class seats and 20 business class seats on these planes, American needs very high fares to be profitable.
However, JetBlue Airways (JBLU) is upping its game in the transcontinental market beginning this summer. Not only is it boosting its economy class capacity by 33% from JFK to Los Angeles and by 59% from JFK to San Francisco, but it's also deploying flat-bed premium seats on those routes for the first time ever.
JetBlue and American will both be using the A321 aircraft on these routes, yet JetBlue outfits them with 159 seats, compared to just 102 seats for American. If rising premium cabin seat inventory on these routes cuts into premium fares, American Airlines could face margin pressure due to its focus on high-fare traffic for the transcontinental routes.
3. New competition in Dallas
American Airlines has also benefited from its dominant position in the Dallas-Fort Worth area ever since Delta closed its rival hub there in 2005. Southwest Airlines (LUV ) operates a focus city at Love Field in Dallas, but it has been banned from offering nonstop long-haul flights at Love Field. This limited its ability to compete with American's massive hub at Dallas-Fort Worth International Airport.
Southwest is adding lots of long-haul flights in Dallas this fall and in 2015. Photo: Southwest Airlines.
However, Southwest will be allowed to fly from Dallas to anywhere in the U.S. starting in October. Within the next year or so, Southwest will start service to 20 new cities from Love Field -- and if it gets access to additional gate space at Love Field, it will add 12 more new destinations.
American Airlines currently has the only nonstop service on many of these routes. It holds a dominant seat share on many of the others. New competing service on Southwest will drive down fares on many of these routes starting in Q4 and ramping up next year.
4. Low-cost carriers arrive in D.C.
Lastly, American will see marg! in pressu! re at its highly profitable Reagan Airport hub near Washington, D.C., starting later this year. US Airways has held a dominant share of Reagan Airport slots, and faced very little competition on most of its routes from the legacy carriers that held most of the other slots.
As part of the American Airlines-US Airways merger, the companies had to sell off dozens of Reagan Airport slots to low-cost carriers. JetBlue, Southwest, and Virgin America will all be expanding at Reagan Airport later this year, and most of their new flights will attack American Airlines-dominated routes. More competitors and more capacity will inevitably drive fares lower.
Foolish bottom line
I have great respect for American Airlines CEO Doug Parker and the rest of his leadership team. However, good management cannot change the fact that the airline business is ultra-competitive and has few barriers to entry.
Several artificial barriers to entry that have protected American Airlines are falling this year. Delta and Virgin Atlantic were given antitrust immunity to coordinate schedules, Southwest's base at Love Field in Dallas is opening to long-haul flights, and American was forced to divest slots at Reagan Airport to competitors.
Some of these three big changes -- as well as JetBlue's unrelated decision to introduce a premium cabin on transcontinental flights -- will start impacting American next quarter. However, the biggest impacts will come at the end of this year and through 2015. Investors should steer clear of American Airlines stock until the euphoria wears off and the market starts to rationally weigh the merger benefits against headwinds like these.
The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.
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Top Promising Stocks To Buy Right Now
On June 13, Gannett (NYSE: GCI ) sent Wall Street a clear message: We are much more than the nation's leading newspaper chain.
That was the day that Gannett announced plans to acquire television company Belo Corp. for $1.5 billion, transforming Gannett's image overnight�from an old-fashioned newspaper chain (bad, bad image) to a more promising television operation (very good one).
And Wall Street sent a declaration of its own: We love the new Gannett, which boasts more of a broadcast multiple than a print multiple.
Publishers trade at an average of about 13 times forward earnings expectations, according to Thomson Reuters data, while broadcasters trade at a little more than 25 times. Gannett stands at nine times forward earnings.
On the wings of the announcement, Gannett's shares promptly climbed 27% to a five-year high, gaining more than $5 and smashing through the $25 threshold.
The deal underscored the changing face of the U.S. newspaper industry. Tribune, which owns the Los Angeles Times, the Chicago Tribune, and other newspapers, for example, is being examined for an acquisition by everyone from Rupert Murdoch to the Koch Brothers because of its strength as a cable and entertainment company. Belo, in fact, split itself into newspaper and television operations back in 2008.
Top Promising Stocks To Buy Right Now: Vale SA (VALE5)
Vale SA (Vale) is a Brazil-based metals and mining company. The Company services are divided into four segments: Bulk Material, including the extraction of iron ore, manganese and ferroalloys, as well as pellet production; Basic metals, comprising the production of non-ferrous minerals, including nickel, copper and aluminum; Fertilizers, including the production of potash, phosphate and nitrogen; and Logistic services, including cargo transportation for third parties divided into rail transport, port and shipping services. Additionally, Vale is active in investments in joint ventures and associate in other businesses. The Company operates through subsidiaries and jointly-controlled entities, incorporated in Brazil, Chile, Australia, Canada, Switzerland, Mozambique, Singapore and the USA, among others. In December, 2013, the Company sold Sociedad Contractual Minera Tres Valles to Inversiones Porto San Giorgio SA. In December 2013, it sold entire stake in Log-in Logistica Intermodal SA. Advisors' Opinion:- [By Harry Suhartono]
The Ibovespa dropped 1.8 percent as iron-ore producer Vale SA (VALE5), whose main export market is China, snapped a two-day gain. Pulp producer Fibria Celulose SA (FIBR3) retreated after posting quarterly earnings that trailed analysts��estimates. Brazil plans to sell dollar bonds due in 2025, creating a new benchmark security in international markets, and buy back notes maturing in as little as four years.
- [By Zahra Hankir]
The MSCI Emerging Markets Index advanced 0.2 percent to 1,044.66. The Ibovespa jumped to the highest level since March 18 as iron-ore producer Vale SA (VALE5) rallied, while AngloGold Ashanti Ltd. drove the FTSE/JSE Africa All Shares Index to a record in Johannesburg. South Africa�� rand jumped to a one-month high, pacing gains among 24 developing-nation currencies.
- [By Ney Hayashi]
MSCI Inc. gauges of Brazilian energy and raw-materials companies, including Rio de Janeiro-based Petroleo Brasileiro SA (PETR4) and Vale SA (VALE5), have tumbled at least 16 percent in local currency terms in the past 12 months as the S&P GSCI Spot Index of commodities slid 8.9 percent.
Top Promising Stocks To Buy Right Now: MB Financial Inc.(MBFI)
MB Financial, Inc. operates as a bank holding company for MB Financial Bank, N.A. that provides various financial services to small and middle market businesses, and individuals in the United States. It offers commercial banking products and services, including credit products, comprising working capital loans and lines of credit, accounts receivable financing, inventory and equipment financing, industrial revenue bond financing, business acquisition loans, and owner occupied real estate loans, as well as financial, performance, and commercial letters of credit. The company?s commercial banking products and services also consists deposit treasury management products, such as Internet banking products, investment sweep accounts, zero balance accounts, automated tax payments, ATM access, telephone banking, lockbox, automated clearing house transactions, account reconciliation, controlled disbursement, detail and general information reporting, wire transfers, vault services for currency and coin, international banking services, capital markets products, and checking accounts, as well as provides various credit, deposit, and treasury management services for real estate operators and investors. In addition, it offers retail banking products and services; and wealth management solutions, which include banking, investment management, custody, personal trust, financial planning, wealth advisory services, estate settlement, guardianship, tax deferred exchange services, and retirement plan services. The company provides its services through operating 87 banking offices in Chicago, Illinois metropolitan area; and 1 banking office in Philadelphia, Pennsylvania. MB Financial, Inc. was founded in 1911 and is headquartered in Chicago, Illinois.
Advisors' Opinion:- [By Sean Williams]
What: Shares of Taylor Capital (NASDAQ: TAYC ) , the holding company of Cole Taylor Bank, a commercial and consumer lending and financial services company located in the Chicago area, skyrocketed as much as 22% after agreeing to be purchased by MB Financial (NASDAQ: MBFI ) .
Hot Companies For 2014: Vista Gold Corp (VGZ)
Vista Gold Corp. (Vista), incorporated on November 28, 1983, is engaged in the evaluation, acquisition, exploration and advancement of gold exploration and potential development projects. The Company's holdings include the Mt. Todd gold project in Australia; the Guadalupe de los Reyes gold/silver project in Mexico; the Concordia gold project in Mexico; the Awak Mas gold project in Indonesia; the Long Valley gold project in California, and mining claims in Utah. On April 6, 2011, the Company announced the completion of the combination involving Midas Gold, Inc., Vista's wholly owned subsidiary, Vista Gold U.S. Inc. and its wholly owned subsidiary, Idaho Gold Resources, LLC., whereby each party contributed their respective gold assets in the Yellow Pine-Stibnite District in Idaho to a new Canadian private company named Midas Gold Corp. (Midas Gold). In October 2013, the Company announced that it has sold the Los Cardones gold project in Baja California Sur, Mexico, to the Invecture Group (Invecture) and RPG Structured Finance S.a r.l.
Mt. Todd Gold Project
The Company holds the Mt. Todd gold project through its wholly owned subsidiary, Vista Gold Australia Pty. Ltd. The project is located 56 kilometers by road northwest of Katherine, Northern Territory, Australia, and approximately 250 kilometers south of Darwin. On September 6, 2011, the Company announced the results of its mineral resource estimate for the Batman deposit at the Company�� Mt. Todd gold project in Northern Territory, Australia.
Guadalupe de los Reyes Gold/Silver Project
The Company�� Guadalupe de los Reyes project is located in the State of Sinaloa, in western Mexico, approximately halfway between the cities of Mazatlan and Culiacan. The property is held through 37 federal mining concessions totaling about 6,310.9 hectares. During the year ended December 31, 2011, the Company received the initial results of its Phase I surface sampling program completed at its Guadalupe de los Reye! s gold/silver project in Sinaloa, Mexico. In June 2011, it initiated the first phase of a two-phase exploration program. The initial results from Phase I confirmed the surface continuity of gold/silver bearing veins over a combined strike length of 14 kilometers. During October 2011, the Company received the permits for its planned drilling program at the Guadalupe de los Reyes gold/silver project, and drilling on a 12-hole core program had started.
Concordia Gold Project
The Concordia gold project is located 55 kilometers southeast of the city of La Paz, in the Mexican state of Baja California Sur. The project area covers over 3,710 hectares and is consists of 15 mining concessions. Vista holds the Concordia gold project through its wholly owned, Mexican subsidiary, Desarrollos Zapal, S.A. de C.V. (DZ Mexico). On February 7, 2012, the Company announced that the Company had entered into an Earn-in Right Agreement (the Earn-in Right Agreement) with Mexico-based Invecture Group, S.A. de C.V. (Invecture) with respect to Vista's Concordia gold project in Baja California Sur, Mexico.
Awak Mas Gold Project
The the Awak Mas gold project is held through its indirect wholly owned subsidiary, PT Masmindo Dwi. The Awak Mas property is situated on the southern side of the Central Sulawesi Metamorphic Belt within a 50-kilometer-long, north-northeast trending fault-bounded block of basement metamorphic rocks and younger sediments. On June 13, 2011, the Company�� wholly owned subsidiary, Vista Gold (Barbados) Corp. (Vista Barbados) entered into an additional option agreement (Additional Option Agreement) with Pan Asia Resources Corp. (Pan Asia). The Additional Option Agreement provides Pan Asia with the opportunity to earn an additional 20% interest in its Awak Mas gold project in Indonesia after it has earned a 60% interest in the project pursuant to the joint venture agreement between Vista Barbados and Pan Asia that was executed in December 2009. In September 20! 11, the A! dditional Option Agreement and JV Agreement were assigned from Pan Asia to Awak Mas Holdings Pty.
Long Valley Gold Project
The Long Valley gold project is located in the Inyo National Forest, about 7 miles east of the town of Mammoth Lakes, in Mono County, California. The property consists of 95 contiguous, unpatented mining claims that cover an area of approximately 1,963 acres. The Long Valley gold project is held through its indirect wholly owned subsidiary Vista Gold California LLC.
Advisors' Opinion:- [By Bryan Murphy]
A couple of days ago when gold and the SPDR Gold Trust ETF (NYSEARCA:GLD) were getting back into a bullish groove, I advocated Randgold Resources Ltd. ADR (NASDAQ:GOLD) as the better way to play gold's rebound. GOLD had fought its way back above a key ceiling, and was poised to take off... much more so than GLD was. To tell you the truth though, Randgold Resources Ltd. wasn't actually my first choice. The gold mining name I wanted to suggest was a little smaller - Vista Gold Corp. (NYSEMKT:VGZ). In the meantime, VGZ has forged out enough of the bullish progress I saw brewing then to merit a mention now.
Top Promising Stocks To Buy Right Now: Bio-Reference Laboratories Inc.(BRLI)
Bio-Reference Laboratories, Inc. provides clinical laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases primarily in the greater New York metropolitan area. It offers various chemical diagnostic tests, including blood and urine analysis, blood chemistry, hematology services, serology, radio-immuno analysis, toxicology, pap smears, tissue pathology, and other tissue analysis. The company also operates a clinical knowledge management service unit, which uses customer data from laboratory results, pharmaceutical data, claims data, and other data sources to provide administrative and clinical decision support systems. In addition, it operates a Web-based connectivity portal solution for laboratories and physicians to provide laboratory ordering and results to physician customers. The company provides its services directly to physicians, geneticists, hospitals, clinics, and correctional and other health facilities. Bio-Refe rence Laboratories, Inc. was founded in 1981 and is headquartered in Elmwood Park, New Jersey.
Advisors' Opinion:- [By Geoff Gannon] strong>DreamWorks (DWA)
Read these reports. Look for something that might have interested me. Why would Geoff look at DNB, Chuck E. Cheese, etc.? What got him interested in the stock? Do I see the same thing?
Whenever possible, also read the quarterly earnings call transcripts. You can listen to them too. But it�� easier if you read them and listen to them.
Just listening is a bad idea.
Whenever I can get a transcript of anything ��even Warren Buffett�� appearance on CNBC ��I��l keep a copy of the transcript even when I have a copy of the video (or audio). You can refer back to a transcript easily. You can highlight. You can take notes.
Taking Notes
Now, you are doing those things when reading an annual report, right?
You never just sit down and read an annual report. You always sit down with a pen, a highlighter, a pad of paper, and a calculator. Use the margins of a 10-K ��or your pad of paper ��to jot down notes. Ask questions. Do calculations.
If you ever see a 10-K after I��e read it ��it�� not very white anymore. There�� lots of stuff written in the margins. Mostly it�� questions I was asking myself. But it�� also calculations of numbers the company does not provide.
Numbers to Know
So, for example, in a bank�� 10-K I always write down:
路 Deposits per share
路 Deposits per branch
路 Cost of deposits
路 Texas Ratio
You can actually look up the Texas Ratio of any bank here. And some banks calculate and report cost of deposits the way I like to think about it. But, it�� not common for banks to report deposits per branch ��although small banks will sometimes mention (perhaps in the shareholder letter) what their biggest branch has in deposits. Others may mention how quickly new branches achieved a deposit milestone.
Those are the kinds of numbers I write in the margins of a bank�� 10-K. There will be questions like: ��hy is e
- [By Lauren Pollock]
Bio-Reference Laboratories Inc.(BRLI) projected fiscal-fourth quarter earnings below expectations and also gave a cautious view for the recently started fiscal year. The clinical-testing company said it has been under pressure from reimbursement rates, higher costs stemming from upgrading acquisitions in Florida and California, as well as substantial start-up costs for its inherited cancer program.
Top Promising Stocks To Buy Right Now: Amalgamated Gold and Silver Inc (BCHS)
Amalgamated Gold & Silver Inc., formerly Balmoral FX Systems Inc, incorporated on November 13, 1992, is a development-stage company. The Company is a holding Company researching various opportunities for investment in gold and silver mining operations.
The Company is focused on gold and silver mining interests in the United States and Mexico. The Company has conducted or has attempted to conduct operations in several other industries and is concentrating all operations on the development.
Advisors' Opinion:- [By Peter Graham]
Small cap mining stocks Discovery Minerals Ltd (OTCMKTS: DSCR), Zinco Do Brasil Inc (OTCMKTS: ZNBR) and Amalgamated Gold and Silver Inc (OTCMKTS: BCHS) have been getting some extra attention lately as one stock surged last Friday while the other two are or have been in the past, the subject of paid promotions. It goes without saying though that small cap mining stocks tend to be riskier than your average stock. But do these three small cap mining stocks have what it takes to produce a mother lode for investors? Here is a deeper dig into all three:
Top Promising Stocks To Buy Right Now: Responsys Inc.(MKTG)
Responsys, Inc. provides on-demand software and professional services primarily in North America, the Asia Pacific, and Europe. The company offers Responsys Interact suite, a software-as-a-service platform that provides marketers with a set of integrated applications to create, execute, optimize, and automate marketing campaigns in various channels, including email, mobile, social, and the Web. Its platform also leverages third-party applications and data from real-time sources allowing customers to deliver targeted content to its customers and known prospects as part of their interactive marketing campaigns. In addition, it provides professional services, such as strategic, creative, deliverability, campaign, and education services. The company offers its on-demand software and professional services to retail and consumer, travel, financial services, and technology industries through a direct sales force. Responsys, Inc. was founded in 1998 and is headquartered in San Bru no, California.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Responsys (Nasdaq: MKTG ) , whose recent revenue and earnings are plotted below. - [By The GeoTeam]
Our recent 2013 articles on SaaS companies Selectica (SLTC), E2open (EOPN), Responsys (MKTG), Vocus (VOCS), and ExactTarget (ET) highlighted such opportunities. The average return since the inception of our coverage currently stands at around 34% (55% at their highs).
Top Promising Stocks To Buy Right Now: ePlus Inc.(PLUS)
ePlus inc., through its subsidiaries, engages in selling, leasing, financing, and managing information technology (IT) and other assets in the United States. Its Technology Sales segment involves in the direct marketing of IT equipment and third-party software solutions of Cisco Systems, HP, VMWare, NetApp, IBM, and Microsoft; and the provision of proprietary software for enterprise supply management, including order-entry and order-management, procurement, spend management, asset management, document management, distribution, and electronic catalog content management software and services. This segment also provides professional technology services in the areas of data center, storage, security, cloud enablement, and IT infrastructure that cover Internet telephony and communications, collaboration, cloud computing, virtual desktop infrastructure, network design and implementation, storage, security, virtualization, business continuity, visual communications, audio/visual technologies, maintenance, and implementation services. The company?s Financing segment offers a range of leasing and financing options for IT and capital assets, such as computers, associated accessories and software, communication-related equipment, medical equipment, industrial machinery and equipment, office furniture and general office equipment, transportation equipment, and other general business equipment. It also leases and finances equipment, as well as supplies software and services directly and through relationships with vendors and equipment manufacturers. ePlus sells its products primarily through direct sales force, inside sales representatives, and business development associates to commercial customers; federal, state, and local governments; K-12 schools; and higher education institutions. The company was formerly known as MLC Holdings, Inc. and changed its name to ePlus inc. in 1999. ePlus was founded in 1990 and is headquartered in Herndon, Virginia.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on ePlus inc. (Nasdaq: PLUS ) , whose recent revenue and earnings are plotted below.
Top Promising Stocks To Buy Right Now: Syneron Medical Ltd. (ELOS)
Syneron Medical Ltd., together with its subsidiaries, engages in the research, manufacture, development, marketing, and sale of aesthetic medical products worldwide. The company develops products based on its proprietary Electro-Optical Synergy (ELOS) technology, which uses the synergy between electrical energy and optical energy to provide aesthetic medical treatments. Its products target a range of non-invasive aesthetic medical procedures, including hair removal, wrinkle reduction, rejuvenation of the skin�s appearance through the treatment of superficial benign vascular and pigmented lesions, acne treatment, treatment of leg veins, treatment for the temporary reduction in the appearance of cellulite and thigh circumference, ablation and resurfacing of the skin, laser-assisted lipolysis, and topical skin brightening products. It also develops, manufactures, and markets non-invasive technologies for fat cell destruction and body sculpting; and Viador system, a handheld device with a radiofrequency-needle array for use in transdermal delivery of biologic drug-products via a system-specific skin patch. The company sells its products to dermatologists, plastic and cosmetic surgeons, other qualified practitioners, and aestheticians and medical spas through direct sales force and distributors; and to home-use consumers directly, as well as through retailers and a chain of distributors. Syneron Medical Ltd. was founded in 2000 and is headquartered in Yokneam Illit, Israel.
Advisors' Opinion:- [By Eric Volkman]
Syneron Medical (NASDAQ: ELOS ) has put a familiar person on its CEO throne. The company named Shimon Eckhouse as its new chief executive, effective immediately. He succeeds Louis Scafuri, who will "remain available" to the firm through the current quarter to aid in the transition.
- [By Seth Jayson]
Syneron Medical (Nasdaq: ELOS ) reported earnings on May 22. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Syneron Medical met expectations on revenues and met expectations on earnings per share.
Top Promising Stocks To Buy Right Now: Crown Castle International Corporation (CCI)
Crown Castle International Corp., through its subsidiaries, owns, operates, and leases towers and other wireless infrastructure primarily in the United States and Australia. Its infrastructure includes distributed antenna system (DAS) networks, as well as rooftop installations. The company involves in the rental of antenna space of its towers to wireless communications companies. It also provides network services relating to its towers, which primarily include antenna installations and subsequent augmentations, as well as additional services, such as site acquisition, architectural and engineering, zoning and permitting, other construction, and other services related network development. As of December 31, 2010, it owned, leased, or managed approximately 23,900 towers, including 43 completed DAS networks. The company was founded in 1994 and is headquartered in Houston, Texas.
Advisors' Opinion:- [By Dimitra DeFotis]
Among stocks, cellular tower operator�American Tower (AMT), a real estate investment trust, is up nearly 5% after saying it will buy the parent of tower operator Global Tower Partners for $4.8 billion, according to Flyonthewall.com. �Crown Castle International (CCI) is up 3%. Press release here.
- [By Sue Chang and Polya Lesova]
AT&T Inc. (T) �shares climbed 2.8%. The largest phone company in the U.S. is on the verge of finalizing a deal to sell its wireless towers to Crown Castle International Corp. (CCI) for as much as $5 billion, Bloomberg News reported on Tuesday.
- [By Matthew Smith]
The two names which come to mind as potential buyers are American Tower (AMT) and Crown Castle International (CCI) as the assets would be natural for them to purchase. It would be a large transaction though which would be about 1/6th the current market cap of American Tower and 1/4th the size of Crown Castle's market cap. Another possible buyer could be a hedge fund, and although there are few names out there specializing in this industry, at the end of the day it is a real estate game and all about the leverage and cash flows. Readers should watch this story because if AT&T does in fact sell its towers, it might be set to make a move on the chess board.
- [By Brian Stoffel]
4. Crown Castle International (NYSE: CCI ) , P/E of 140
Crown is one of the major players in the industry. By "tower industry," I'm referring to the towers that now dot our landscape to help ensure wireless data can be transmitted with ease.�