Dividend Stocks To Buy For 2014, Best Dividend Stocks For 2014: June 2014

Monday, June 30, 2014

Worries Peak on Puerto Rico Utilities Debt After New Bankruptcy Law

The U.S. municipal-bond market begins the week wondering whether the Puerto Rico Electric Power Authority, the commonwealth’s sole provider of electricity, will pay bondholders Tuesday after lawmakers last week enacted debt-restructuring legislation.

If the utility known as Prepa fails to act, the blow would be the latest absorbed by investors buffeted by bankruptcies in Jefferson County, Alabama, and Detroit. The defaults call into question the underpinnings of the $3.7 trillion market.

“Puerto Rico has crossed the Rubicon; it’s crossed the line,” Richard Larkin, director of credit at Fairfield, Connecticut, investment firm Herbert J. Sims & Co., said from his office in Boca Raton, Florida. “This is absolutely a big deal and bigger than Detroit and bigger than Jefferson County because there’s more money involved.”

The bill signed by Governor Alejandro Garcia Padilla allows certain public corporations to restructure debt outside of bankruptcy proceedings. Bondholders have been speculating for months that a Puerto Rico agency would default. Prepa seems poised to be the first if it can persuade three-quarters of its creditors to agree, and if the commonwealth beats back a lawsuit challenging the law.

Payment Due

The utility, which raided its capital budget last month to buy fuel, has $8.6 billion of debt, with about 70% not covered by bond insurance, data compiled by Bloomberg show.

Prepa owes more than the $8 billion of general obligations and water-and-sewer debt in Detroit’s record bankruptcy and the $4.2 billion that led to Jefferson County’s failure. The agency, with the third-lowest speculative grade from Fitch Ratings, is due to make a bond payment Tuesday and about $204 million of its securities mature that day, according to data compiled by Bloomberg.

David Millar, a New York-based spokesman for the Government Development Bank, said the bond trustee has enough money to make the payment. Abimael Lisboa Felix, a Prepa spokesman, didn’t return e-mails seeking comment on its plans.

A restructuring decision would be felt in all corners of the U.S., as the commonwealth’s securities are tax free nationwide and widely held by pensions and mutual funds that invest in the muni market. The commonwealth and its agencies owe $73 billion, with about 66 percent of U.S. muni mutual funds holding the securities, according to Morningstar Inc.

Watershed Moment

The turning point comes after years of economic anguish. Puerto Rico’s economy has struggled to grow since 2006 and its 13.8 percent unemployment rate is more than double the U.S. average. Yet the competitive advantage afforded by the tax-free bonds made it easy for Puerto Rico and its agencies to sell debt to plug budget deficits and cover operating expenses, the combination that drove New York City to bankruptcy’s brink in the 1970s.

The restructuring measure, sought by Garcia Padilla, would allow some public entities to negotiate to reduce their debt loads. The bill allows public corporations to talk with investors for nine months once 50 percent of bondholders agree to discussions. Any restructuring would require approval of 75 percent of bondholders.

The measure’s effect may extend beyond the corporations. The three largest rating firms cut Puerto Rico to junk beginning in February. The bill excludes general-obligation and sales-tax bonds, but the speculative credit rating may be lowered more, Standard & Poor’s said. The measure may signal “a potential shift in the commonwealth’s historically strong willingness to continue to meet its obligations,” analyst David Hitchcock said in a report.

No Mas

The governor has said the commonwealth will repay its general obligations. Some have given up on promises.

“I’ve lost all confidence in the collective leadership of Puerto Rico,” Larkin said.

San Mateo, California-based Franklin Funds and Oppenheimer Rochester Funds in Rochester, New York, filed suit June 28 after the governor signed the bill.

Franklin Funds, with $907.2 million of Prepa debt, and Oppenheimer, holding $821.4 million, are asking a U.S. District Court in Puerto Rico to declare the new law unconstitutional. The companies argue that Puerto Rico can’t usurp the power of federal courts by enacting what amounts to its own bankruptcy law, according to their filing.

The commonwealth will defend the law, Millar said.

Priced In

Debt sold in Puerto Rico has been trading at distressed levels since August on concerns that the island of 3.6 million wouldn’t repay its obligations.

Uninsured Prepa bonds maturing July 2040 traded at 10:00 A.M. Monday at at an average 44.5 cents on the dollar, the lowest ever and down from 51.9 cents on June 25, the day that Garcia Padilla filed the restructuring bill. Fitch Ratings last week dropped Prepa to CC, its third-lowest speculative grade. S&P and Moody’s Investors Service also give the utility a junk rating.

Since Puerto Rico’s Senate approved the bill June 25, prices of Prepa bonds maturing within four years have dropped by as much as 40%, the investment firms stated in the court filing.

If Prepa or other agencies were to pay creditors less than the bonds’ original prices, insurers such as Assured Guaranty Ltd. (AGO) and MBIA Inc’s National Public Finance Guarantee Corp. would be forced to make up the difference with investors holding insured securities. Other bondholders don’t have that extra security.

No Protection

Dominic Frederico, chief executive officer of Assured, said in a June 27 meeting with BTIG LLC that the company’s worst-case scenario would be a 20% loss on its $852 million exposure to Prepa debt, according to a report by BTIG analyst Mark Palmer.

Assured fell 6.5% last week, the most since the week ending Jan. 17, to $24.78.

Along with Prepa, the law enables the Puerto Rico Highways & Transportation Authority to restructure $5.5 billion of debt, and for the Puerto Rico Aqueduct & Sewer Authority to alter its $3.7 billion, according to data compiled by Bloomberg. About 90% of the Prasa debt and 40% of highway authority bonds aren’t insured.

With 1.48 million customers and $4.94 billion in revenue in 2012, Prepa is the biggest U.S. public power utility, according to the American Public Power Association. The utility took $100 million from its capital budget last month to purchase fuel.

Prepa may offer investors less than 10 cents on the dollar, said Matt Fabian, managing director at Concord, Massachusetts-based research firm Municipal Market Advisors, which may complicate the task of getting three-quarters of creditors to accede. He said that high bar might offer investors comfort.

“That will make consensus even harder to get,” Fabian said.

---

Three muni bond managers gave their take on Puerto Rico at the Morningstar Investment Conference on June 20. See our news story on that session.

Friday, June 27, 2014

What We All Can Learn from the Military's Payday Loan Problem

Payday Loans sign glows in green neon on a black background Getty Images As a 19-year-old, Robert Knoll made a mistake that many young people do -- he got into debt. Knoll did it by living beyond his meager salary as a U.S. Marine, and using small payday loans to help him get by between paychecks. "The problem, though, is it puts you behind the next payday," Knoll says. Those $80 to $200 payday loans added up, along with the $50 in interest he'd pay to borrow $200 for five days. With an annual percentage rate on the loan of more than 200 percent, Knoll would post-date a check for $250 for a $200 loan that would be paid off five days later when his paycheck was deposited into his checking account. "You can spend your entire paycheck before you get it," says Knoll, now an account executive at DRIVEN Public Relations in Temecula, California. He retired as a Marine master sergeant in 2013. Help From the ARK Unlike servicemembers today, Knoll didn't have help from the military on payday loans back then. One program that officials are trying to remind military members and their families about is the Asset Recovery Kit. For a $5 fee, members of 17 credit unions supported by the Pentagon Federal Credit Union Foundation can borrow up to $500 interest-free for 30 days. The program has loaned more than $3.8 million in 8,724 loans since it started in 2004, says Jane Whitfield, president and CEO of the PenFed Foundation. "We want to help in preventing short-term emergencies becoming long-term problems," she says.

Thursday, June 26, 2014

Flying this summer? Expect higher fees

Going through airport security will cost a little more starting next month. NEW YORK (CNNMoney) Come July 21, passenger security fees will be going up at U.S. airports.

The increase in the fee, which helps fund airport security efforts by the Transportation Security Administration, comes courtesy of the bipartisan budget deal passed by lawmakers last December.

About 75% of the new revenue from the fee hike will not be put toward improving security checks at the airport. Rather, it will be used to offset spending elsewhere in the federal budget.

Right now, the passenger security fee is $2.50 for each plane you take to get somewhere. However, the fee is capped at two plane rides each way. So you won't pay more than $5 en route to a destination, or $10 roundtrip, no matter how many planes you take.

On July 21, however, a flat fee of $5.60 will be imposed in each direction, no matter how many planes you board en route, assuming you only have short layovers.

As a result, you will pay more than double if you fly nonstop -- $11.20 roundtrip vs. $5 now.

If you're not flying nonstop, however, you will only pay $1.20 more roundtrip ($11.20 vs. $10 now).

The only caveat: you could pay even more if you have a very long layover, defined as lasting at least 4 hours when traveling domestically or 12 hours when traveling internationally.

Plane tickets ain't what they used to be

Don't bet your house on it, but it's possible you won't have to pay the whole fee increase, depending on how a carrier chooses to handle the hike. "It will manifest [either] as the passenger pays, the airline pays or a little bit of both," a spokesman for the trade group Airlines for America (A4A) told CNNMoney when the fee hike first passed.

CNNMoney called four major carriers to see how they are going to handle the change, but no one's talking yet.

Meanwhile, there is some dissatisfaction with how TSA has chosen to interpret the fee hike.

The two top budget writers in the Senate and House -- Sen. Patty Murray, a Washington Democrat, and Rep. Paul Ryan, a Wisconsin Repu! blican -- have written a letter objecting to the way the TSA has interpreted Congressional intent in making the rule change.

The TSA says the budget deal crafted by Congress eliminated language that caps the amount of fees paid. Murray and Ryan say that nothing about the change in language indicates their intent to eliminate the cap.

The trade group Airlines for America is not too happy with TSA's interpretation, either.

"A4A strongly opposes TSA's elimination of the regulatory regime that overturns 10 years of industry precedent and Congressional intent by removing the cap on the TSA fee increase per enplanement as it will disproportionately hurt consumers from small and rural communities," a spokesman said by e-mail.

The TSA has said it plans to respond directly to Sen. Murray and Rep. Ryan.

Wednesday, June 25, 2014

Will Ford Be BlackBerry's Savior?

Ford (F) is close to dumping Microsoft's (MSFT) troublesome MyFord Touch infotainment system. MyFord's faulty operations and slow response have been at the root of many customer complaints over the years, and the automaker is looking to replace it completely. Although it is not official, it is widely believed that MyFord will eventually be replaced by BlackBerry's (BBRY) QNX system.

BlackBerry has been struggling to turn its fortunes around for a long time. The stock was battered during the recent market sell-off, but the dip has made BlackBerry an attractive investment. BlackBerry's potential deal with Ford can strengthen its position in the car infotainment market and can be a game changer for the company.

According to IHS, global sales of vehicle infotainment systems in 2012 stood at $34.6 billion, and a spot in Ford's cars can open up a gigantic opportunity for BlackBerry; the MyFord system was sold in 79% of the Ford's cars in 2013.

Why the tie-up looks likely Although Ford was among the first companies to offer the ability to pair mobile phones with in-car infotainment systems, it couldn't satisfy consumers. When it comes to customer satisfaction, Ford is way down the pecking order. Ford was ranked 23rd out of a total of 32 candidates for in-car technology in the Auto Express 2013 Driver Power customer satisfaction survey. Ford's management desperately wants to climb up that list, thus it's important for the Blue Oval to dump Microsoft's MyFordinfotainment system.

MyFord is very hard to use. That's why it's important for Ford to replace it with QNX, which is already an industry standard. When it comes to in-car infotainment, QNX is second to none. QNX is being used in more than 200 vehicle models and is the market leader in operating-system platforms for in-car infotainment systems. According to IHS Automotive, QNX commands more than 50% of the market share, more than double than that of Microsoft.

Easy to upgrade According to Egil Juliussen, principal analyst of infotainment for IHS Automotive, QNX's technology is error-free when it comes to the interface with Apple's iPhone and Google's Android software. In fact, Apple's new CarPlay in-car infotainment system will ride on top of QNX. Apple is seeking CarPlay integration with many big-name automakers like Nissan,BMW, Toyota, and others. BlackBerry is poised to benefit from this booming market.

Not only is QNX more dependable, it also offers better connectivity. For instance, BMW's ConnectDrive system allows drivers to bring many of their smartphone apps like email, calendar, and social media to the cars. In addition, the system also gives car owners the ability to control various functions of the cars by using their smartphones as a remote control.

The MyFord system is used in 7 million cars worldwide. However, according to several reports, it is very easy to upgrade the existing cars' infotainment systems to QNX. Not only that, QNX will also be cheaper to license than Microsoft's software, thus it is a win-win situation for both Ford and BlackBerry.

The takeaway The in-car infotainment market is estimated to be worth more than $41 billion, and a potential spot in Ford's cars has opened up a very big opportunity for BlackBerry, especially since it has a market cap of $3.7 billion. BlackBerry has been struggling to narrow its losses for almost a year now, and QNX may help it achieve its primary goal.

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The Rise of Actively Managed ETFs

Actively managed exchange-traded funds have grown significantly in the number of products offered and assets under management over the past year, and continue to gain popularity as an investment vehicle.

As active ETFs continue to attract greater attention and accumulate more investment dollars, they will start competing with traditional active mutual funds for market share, according to a paper released Tuesday.

To better understand the potential of the active ETF segment, SEI collaborated on the study with ETF Trends to assess the current environment as well as their advantages and the obstacles they face.

Actively Managed ETFs

The paper noted that although actively managed ETF assets under management and number of products are growing, they still make up less than 1% of the global market for ETFs today — as of March 31, 85 products controlled $15 billion of assets out of the global ETF total of $2.7 trillion.

These vehicles come with an innate creation/redemption process that allows for a potentially more tax-efficient product than mutual funds.

Actively managed ETFs are required to make daily disclosures of holdings, yet some providers have petitioned the SEC to increase the time interval beyond daily disclosures.

However, some active managers want to shield their portfolio decision-making from copycats, and now may have a tool in an innovation called exchange-traded managed funds, which are wending their way through the SEC approval process.

Active ETFs now more broadly utilize derivatives, enabling fund sponsors to expand to other asset classes. The paper said it expected more competition between actively managed ETFs and other products utilizing various alternative investment strategies and asset classes, such as commodities or foreign currencies.

The paper noted that active ETFs are now being developed by more traditional mutual fund-only providers, such as T. Rowe Price, Fidelity Investments, Franklin Resources, Janus Capital Group and Columbia Management Investment Advisers, rather than just by specialist ETF manufacturers.

They are also adding support to the passive indexing providers through tracking “enhanced” indexes that screen for specific stocks.

The Road Ahead

While the actively managed ETF space is still in its nascent stages, active management may represent the next growth phase in the ETF industry, according to the paper.

New product launches have helped propel active ETF flows and total assets, but whether this momentum will continue remains to be seen.

The authors see wind to the industry’s back in the move from fixed-income-only offerings to balanced, alternative and even equity-focused funds.

The SEC’s lifting of restrictions on derivatives in active ETFs may prompt a new wave of active offerings, adding wind to the industry’s back and helping support the move from fixed-income-only offerings to balanced, alternative or even equity-focused funds.

---

Check out ETF-Mutual Fund Hybrid: The Next Big Thing? on ThinkAdvisor.

Tuesday, June 24, 2014

In the Desert, the Mighty Desert, the Market Sinks Tonight

Stocks held up well today–until they didn’t–and the S&P 500 sunk for the second day in a row.

AFP

The S&P 500 fell 0.6% to 1,949.98, its biggest drop since June 12, while the Dow Jones Industrial Average declined 0.7% to 16,818.13, its largest tumble since May 20. The Nasdaq Composite dropped just 0.4% ti 4,350.36, while the small-company Russell 2000 slid 1% to 1,173.24.

Why did socks have that sinking feeling? It wasn’t because of the economic data, which showed new home sales picking up–the monthly rise was the largest since 1992–and consumer confidence rising. So let’s blame what’s happening in Iraq, where Syria bombed the western part of the country. That’s called escalation.

Or don’t. Westpac’s Graeme Jarvis explains why:

Nights like last night make so much sense to me. The make sense for what they did do more than for what they did not do. Just before 3am [Westpac is an Australian Bank. Ed.] the WSJ ran a headline that Syrian planes had hit targets in Iraq. That is nominally the reason you will read this morning as to why US yields are so much lower this morning. It makes sense on chart as well. Bonds went bid (yields fell) as that headline was digested.

What I think is more interesting-er is what yields were doing prior to that news. That is for me the key takeaway from last night. For days upon days I have been berating youse blokes with my narrative that I think yields are too high. It was based on positioning. It was based on sentiment. It was based on one-sided forecasting. So why I think the better move happened before 3am is that we received a clump of US data that said everything is awesome and yet yields could push no higher…

Stepping back and looking at the Dow, the S&P500, the NASDAQ and the Russell 2000 and technically they all look like they have traced out some sort of a topping pattern. Highs or news highs were seen across all indices that failed to hold. Markets then traded lower into the close. Just as the bears looking to take yields higher in the bond pits failed so too did the bulls in equity markets. This is trading minutia that makes sense to me. This is why I like what I saw last night. I saw across the board failure. The view may very well be wrong but right here right now this trading detail makes so much more sense to me than casting the night away simply because of a 3am WSJ headline.

Even failure seems more interesting than the do-nothing market we’ve had this week.

Tax Records You Can Toss

I just filed my taxes and am wondering what records I need to hold on to and what I can throw away?

Keep your actual tax returns forever. They can help when you, say, apply for a mortgage or disability insurance or need clues to the value of other assets. See Don't Toss Your Tax Returns for more information. (You don't need to keep the originals; you can scan the tax returns and keep a digital archive.)

SEE ALSO: 9 Costly Mistakes Taxpayers Make

The IRS generally has up to three years after the tax-filing deadline to initiate an audit, so you should hold on to supporting documents for at least that long. Those documents include credit-card statements, canceled checks, debit-card transactions and receipts showing deductions; letters from charities reporting gifts; and paperwork reporting mortgage interest, capital-gains distributions and income. "A few months ago, we saw an influx of clients getting letters from the IRS about their 2011 returns," says Laurie Ziegler, an enrolled agent in Saukville, Wis., and a director on the board of the National Association of Enrolled Agents (enrolled agents are authorized to represent clients in front of the IRS). See IRS Publication 552, Recordkeeping for Individuals, for more information about tax records.

Most people can safely shred those supporting documents three years after the tax-filing deadline. But people who are self-employed or who have a small business, income from a variety of sources or complex tax situations should keep their records longer. The IRS has up to six years to audit people who neglect to report more than 25% of their income. Ziegler usually keeps her tax files for seven years, just to be safe. "I keep everything in a box," she says. "When I put the most current year in, I pull out the oldest year and shred it." Shred the old documents rather than just throwing them away, so you don't create a treasure trove of personal information for ID thieves.

Other tax files you should keep include records establishing the basis of your assets for as long as you own the asset (you should file those records with your tax files for the year you sell the asset).

Keep records showing the purchase date and price of stocks and mutual funds in taxable accounts. When you sell the investment, you'll have to report the purchase date and price so you can establish the basis. Brokers are required to report the cost basis of stocks purchased in 2011 or later and mutual funds and ETFs purchased in 2012 and later, but Ziegler says it's a good idea to keep your own records even for purchases after those dates in case you switch brokers. Also keep records of reinvested dividends that you've already paid taxes on, so you can add them to your basis when you sell and you won't have to pay taxes on them twice. If you inherit any stocks or funds, keep records of the value on the day the original owner died, which will generally be the basis when you sell it. See Cost Basis for Inherited Stock for details.

Keep Form 8606 reporting nondeductible contributions to traditional IRAs until you withdraw all of the money from the IRAs. That way, you'll be able to prove that you already paid taxes on the contributions and you won't have to pay taxes on that portion of the money again when you start taking withdrawals. See Deductible Versus Nondeductible IRA Contributions for more information.

Keep records of your home purchase cost and home improvements. You generally aren't taxed on home-sale profits if you've lived in the home for at least two of the past five years and your profit is less than $250,000 if single or $500,000 if married filing jointly. But if you live in the home for a shorter time or have a bigger profit, you may have to pay taxes on part of your profits, and you can add the cost of major home improvements (not basic repairs) to the basis to reduce your taxable gain. See Tax Planning for Selling Your Home for details.

You can toss pay stubs as soon as the information matches up with your W-2 for the year (but keep your December pay stub if it shows charitable contributions made via payroll deduction). You can toss monthly brokerage statements when the information matches up with your year-end report and your 1099s. You can toss most credit-card receipts that you don't need for tax purposes after you check them against your monthly bill. And you can usually toss utility, phone and cable bills as soon as the next month's bill arrives, unless you need them for tax purposes. For example, you should hang on to them if they show self-employed business expenses or they're used for a home-office deduction, or if you want to show prospective home buyers the average monthly cost of your utilities. See Tax Breaks If You're Self-Employed for more information about tax breaks if you have your own business.

Got a question? Ask Kim at askkim@kiplinger.com.

Sunday, June 22, 2014

Tax Q&A: Deducting medical costs for an injury

With the April 15 tax deadline fast approaching, you probably have questions. Fortunately, we have answers. Every day until April 15, members of the American Institute of Certified Public Accountants have agreed to answer selected tax questions from USA TODAY readers. Submit your questions to jwaggoner@usatoday.com.

Q: I get home healthcare for a service-related injury. Can I deduct my out-of-pocket home healthcare expenses that are not covered by the Veteran's Administration? I get a VA disability payment each month, also. Must that payment be exhausted before I may deduct excess payments from my 1040?

A: First of all, thank you for your service to our nation!

Your out-of-pocket costs for home healthcare are considered medical expenses, so they may be deductible on your Schedule A — it all depends on the total amount compared to your adjusted gross income (AGI).

NEED HELP: Get all the latest tax news and advice

The fact that you receive disability does not change the destructibility of the expenses.

Any medical costs you incur that aren't covered by insurance, including co-pays, are deductible, but they must exceed 10% of your AGI (7.5% if you're over age 65), and then you also need to itemize your deductions, rather than use the standard deduction.

If you prepare your own taxes using an online program, be sure to enter all your medical expenses not covered by the VA or other insurance.

The software will calculate whether you receive any deduction. If you use a tax professional, just be sure that person knows your total expenses. The IRS has a program to help you determine if you can deduct medical expenses.

FOR MORE INFORMATION: IRS Publication - Medical and Dental Expenses

Kelley C. Long CPA/PFS, CFP, Director of Communications & Marketing, Shepard Schwartz & Harris LLP

Previous questions:

Can pension income go to a Roth IRA?

What to do if you forgot a tax payment

Is a gift from an IRA taxable?

It's Time to Trade Yahoo! Now Ahead of Alibaba IPO

YHOO EBAY AMZN DELAFIELD, Wis. (Stockpickr) -- The IPO market is about to get hit with a big name that could make a real splash on Wall Street.

>>5 Stocks Set to Soar on Bullish Earnings

China-based e-commerce player Alibaba has been rumored to disclose its prospectus for an IPO in New York as soon as April. Alibaba is often called the eBay (EBAY) or Amazon.com (AMZN) of China. Some analysts think Alibaba could raise as much as $15 billion to $16 billion when it hits the public market, valuing the company at more than $100 billion.

Alibaba runs an Amazon-like online shopping mall, an eBay-like platform for customers to buy from other people, a business-to-business sales platform and a PayPal-like online payment platform. Alibaba is one of the world's largest e-commerce players, and it's been rumored the company does more than $150 billion worth of sales on its online platform each year, which is more than Amazon and eBay combined. The fever for Alibaba is so high that some analysts think it could the largest IPO ever for a technology company in the U.S. Clearly, shares of Alibaba will quickly become a favorite play of the trading and investing community once it hits the U.S. exchanges. However, since we don't know the exact IPO date for Alibaba yet, traders need to find other derivative plays to capture some of the run-up momentum to the official offering date. One stock that looks to be setting up for an excellent Alibaba IPO play that could reap big rewards over the short-term is global technology player Yahoo! (YHOO). >>5 Rocket Stocks to Buy This Week The reason that Yahoo! looks so attractive here as an Alibaba IPO play is because it currently holds a 24% stake in the company. Yahoo! is required to sell a little less than half of its stake at the offering, but if that offering is a major success before and after, then Yahoo! is going to cash in big time. I believe that shares of Yahoo! are preparing right now for a momentum run-up trade into the Alibaba offering. Traders aren't going to wait for a few weeks before the offering. I think they need to start to focus on playing Yahoo! now as more and more Alibaba news stories hit the wires. If you consult the chart for shares of Yahoo!, you'll see that this stock recently formed a double bottom chart pattern at $36.82 to $36.48 a share over the last month or so. This stock has now started to spike and gap higher back above its 50-day moving average of $38.36 a share with heavy upside volume flows. The upside volume for shares of YHOO over the last two trading sessions (not today) has registered over 29 million shares, which is well above its three-month average volume of 17.02 million shares. This unusual spike in upside volume is leading me to believe that traders are starting to snap up shares of YHOO ahead of the Alibaba IPO so they can capture some quick gains if the stock runs up into the offering. The chart for Yahoo! is also starting to form a W pattern, which is a bullish technical setup that often resolves much higher. That pattern hasn't confirmed yet, since shares of YHOO will need to break out above the neckline to give this setup a chance to really take flight, but the stock is quickly approaching that breakout which could trigger very soon. Traders should look for long-biased trades in YHOO as long as its trending above those double bottom support zones that sit just above $36 a share and then once it breaks out above some key near-term overhead resistance levels at $40.15 a share to its 52-week high at $41.72 a share with high volume. Look for volume on that breakout that hits near or above its three-month average action of 17.02 million shares. If that break kicks off soon, then I think shares of YHOO have an excellent chance to tag $50 a share, or possibly even north of that level. Keep in mind that it won't just be Alibaba pushing shares of YHOO higher if it breaks out into new 52-week-high territory -- it will also be momentum and technical traders who buy stocks showing strength off high-volume moves to new highs. If this breakout I have outlined above doesn't materialize, then of course you can forget about any run-up trade, so follow the trend with YHOO and play it only if we get a high-volume breakout conformation. -- Written by Roberto Pedone in Delafield, Wis. RELATED LINKS: >>3 Stocks Rising on Big Volume >>3 Huge Stocks on Traders' Radars >>5 Big Health Care Stocks to Trade for Gains Follow Stockpickr on Twitter and become a fan on Facebook.

Stock quotes in this article: YHOO

Saturday, June 21, 2014

Aeropostaleâ€™s Results Pitiful; Barters More of the Company for Cash

Aeropostale Inc. (NYSE: ARO) reported fourth-quarter and fiscal year 2013 results after markets closed Thursday afternoon. The teen clothing retailer posted an adjusted diluted earnings per share (EPS) loss of $0.35 on revenues of $670 million. In the same period a year ago, Aeropostale reported EPS of $0.24 on revenues of $797.7 million. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for an EPS loss of $0.31 and $683.79 million in revenue.

For the full year, Aeropostale reported an EPS loss of $1.13 on revenues of $2.09 billion, compared with EPS of $0.68 on revenues of $2.39 billion in the prior year. The consensus estimates called for an EPS loss of $1.10 on revenues of $2.1 billion.

Same-store sales, including e-commerce sales, fell 15% in the fourth quarter on top of a 6% drop in the fourth quarter a year ago. For the full year same-store sales also fell 15% compared with a 2% drop in 2012.

Aeropostale also announced today that it had signed a commitment letter with private equity firm Sycamore Partners for a strategic partnership and $150 million in senior secured debt facilities. Sycamore receives convertible preferred stock that can be converted to a total of 5% of the company's common stock at an exercise price of $7.25, Wednesday night's closing price. Sycamore also gets two board seats and the right to approve a third.

The company expects to post an EPS loss of $0.70 to $0.75 in the first quarter of 2014, far worse than the $0.17 loss estimated by analysts. The company plans to close 50 Aeropostale stores and two P.S. stores in 2014.

The company's CEO said:

The results we generated in 2013 are not acceptable nor are they a reflection of the progress we believe we have made in transforming our brand. Having evaluated what we set out to do in 2013 and what we learned, we believe our strategy surrounding product, brand projection, process and growth is even more crucial to winning in today’s challenging retail landscape.

We noted Aeropostale in our recent report on the nine retailers set to close the most stores as the company ranked third in most store closings. Aeropostale may close as many as 175 stores over the next few years. The deal with Sycamore Partners buys the company some time, but not much.

Shares are down nearly 12% in after-hours trading, at $6.45 in a 52-week range of $6.04 to $17.10. Thomson Reuters had a consensus analyst price target of around $8.90 before today's results were announced.

Friday, June 20, 2014

10 Best Services Stocks To Buy Right Now

WASHINGTON (AP) ��Small fees add up for college students using college-issued debit and prepaid cards, which are often used to draw financial aid, and congressional investigators are urging greater oversight of their use.

These types of cards are becoming more common on campuses and double sometimes as a student ID card. They are popular with both college administrators and many students because of the convenience, but using a third-party financial provider can also save colleges and universities money as they offer services such as distributing financial aid or making tuition refunds.

The Government Accountability Office said the fees generally are similar to those other debit cards charge. But, it said, some students end up with out-of-network ATM fees, and some cards have terms that charge a fee if students enter a pin number to receive money instead of signing to get cash back.

10 Best Services Stocks To Buy Right Now: Medical Cannabis Payment Solutions (REFG.PK)

Medical Cannabis Payment Solutions, incorporated on December 1, 2005, is a provider of integrated supply and distribution technology. The Company�� Seed-to-Sale (S2S) integrated solution is a management and compliance technology for growers, caregivers and dispensaries in the market. The Company also works with public officials and government agencies to expand the acceptance of medicinal cannabis, and the adoption of a legal framework where maximum market expansion is possible. The Company solves the fragmentation problem by identifying tools that are important to dispensaries, and customizing those tools specifically catered to the industry. The Company's solutions include Spark, Ghost and S2S.

Spark

The Company�� SPARK Hosted Voice over Internet Protocol (VoIP) provides customers with enterprise-class hosted phone systems customized to fit customers��needs. SPARK's service is a fully-managed, cloud-based system. The Company offers the convenience of an online Internet Protocol (IP)-based telecommunications system while still delivering substantial savings to customers bottom line.

Ghost

By offering customers a customized, tailored mobile solution, the Company's Ghost Mobile Apps give a marketing tool with a texting and e-mail solution, keeping customers in constant contact with patients and clients. The Company creates an optimized experience in context to each device or screen size.

Advisors' Opinion:

[By Alan Brochstein]
Not too surprisingly, supply is starting to increase. We have seen some companies enter the space by expanding their own businesses, but there have been some reverse mergers lately too. I had mentioned Refill Energy (REFG.PK) recently (soon to be Medical Cannabis Financial Group), but earlier this month Promap (PMAP.OB) acquired 94% of Advanced Cannabis Solutions (link to 8-K). As an aside, I think that this company is worth considering given the management team and the business model. Investors should keep in the back of their mind that there are many companies that are quietly developing their business models and could become public over time, especially as the regulatory and legal landscapes improve.

10 Best Services Stocks To Buy Right Now: Builders FirstSource Inc.(BLDR)

Builders FirstSource, Inc. engages in the manufacture and supply of structural and related building products for residential new construction primarily in the southern and eastern United States. The company offers prefabricated components, including floor trusses, roof trusses, wall panels, stairs, and engineered wood; and window and door products, such as aluminum and vinyl windows, and pre-hung interior and exterior doors, as well as assembles and distributes interior and exterior door units. It also provides lumber and lumber sheet products comprising dimensional lumber, plywood, and oriented strand board products; millwork products, including interior trim, exterior trim, columns, and posts, as well as custom exterior featured products; and other building products, such as cabinets, gypsum, hardware, composite materials, roofing, and insulation. In addition, the company offers turn-key framing, shell construction, design assistance, and professional installation servic es for products spanning its product categories, as well as provides a range of construction services. It serves customers ranging from production homebuilders to small custom homebuilders. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was founded in 1998 and is based in Dallas, Texas.

Advisors' Opinion:

[By Rex Moore]
The annual Value Investor Conference is one of the premier events surrounding Berkshire Hathaway's annual meeting in Omaha. The Motley Fool's Michael Olsen and Rex Moore were in attendance and talked to several value investors.�In today's video, Michael asks Bob Robotti, founder of Robotti & Co., about his investment in Builders FirstSource (NASDAQ: BLDR ) .

10 Best Transportation Stocks To Invest In 2015: Acadia Healthcare Company Inc (ACHC)

Acadia Healthcare Company, Inc., incorporated on October 24, 2005, is a provider of inpatient behavioral healthcare services in the United States. The Company's principal business is to develop and operate inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities and facilities providing outpatient behavioral health services in the United States. In January 2014, the Company announced that it has completed the acquisition of inpatient psychiatric facilities in Seattle, Washington, and Riverside, California.

In December 2011, the Company closed three outpatient facilities and a 24-bed substance abuse facility acquired from PHC on November 1, 2011. The Company's facilities and services consists of acute inpatient psychiatric facilities; residential treatment centers, group homes, therapeutic group homes and foster care; substance abuse centers; outpatient community-based services, and other behavioral services, including specialized educational services and call centers.

Acute Inpatient Psychiatric Facilities

The Company�� acute inpatient psychiatric facilities provide a high level of care in order to stabilize patients that are either a threat to themselves or to others. The acute setting provides 24-hour observation, daily intervention and monitoring by psychiatrists. The Company's facilities, which offer acute care services provide evaluation and crisis stabilization of patients with severe psychiatric diagnoses through a medical delivery that incorporates structured and intensive medical and behavioral therapies with 24-hour monitoring by a psychiatrist, psychiatric trained nurses, therapists and other direct care staff. As of December 31, 2011, the Company operated 10 facilities that provided acute care services in addition to other services.

Residential Treatment Centers/Group Homes

The Company�� residential treatment centers treat patients with behavioral disorders in a non-hospit! al setting. The facilities balance therapy activities with social, academic and other activities. The Company provides residential treatment care through a medical model residential treatment facility, which offers intensive, medically-driven interventions and individualized treatment regimens designed to deal with moderate to high level patient acuity. Treatment is provided by an interdisciplinary team coordinating psychopharmacological, individual, group and family therapy, along with specialized accredited educational programs in both secure and unlocked environments. As of December 31, 2011, the Company operated 14 facilities that provided residential treatment care, in addition to other services.

The Company's group home programs provide family-style living for youths in a single house or apartment within residential communities where supervision and support are provided by 24-hour staff. The Company also operates therapeutic group homes that provide treatment services for seriously, emotionally disturbed adolescents. The Company also manages therapeutic foster care programs, which are considered the least restrictive form of therapeutic placement for children and adolescents with emotional disorders. As of December 31, 2011, the Company operated three facilities that provided group home and therapeutic group home services.

Outpatient Community-Based Services

The Company's community-based services are provided for two age groups: children and adolescents (seven to 18 years of age) and young children (three months to six years of age). Community-based programs are designed to provide therapeutic treatment to children and adolescents who have a clinically-defined emotional, psychiatric or chemical dependency disorder while enabling the youth to remain at home and within their community. Community-based programs developed for these age groups provide an array of therapeutic services to children. As of December 31, 2011, the Company operated eight facilities that! provided! community-based services.

Substance Abuse Centers

The Company�� Substance abuse centers (or SACs) provide a continuum of care for adults with addictive disorders and co-occurring mental disorders. The Company's detox, inpatient, partial hospitalization and outpatient treatment programs give patients access to the least restrictive level of care. As of December 31, 2011, the Company operated two SACs.

Specialized Education Services and Other Behavioral Services

The Company's education programs provide an educational experience to children and adolescents having special education needs. In some states, the Company provides educational services on an extended school year basis. The Company also has charter schools that utilize teaching methods that address therapeutic needs particular to learning and behavioral deficits of the students. The Company's education services also include vocational education and training that may allow those residents to become employable in entry level positions in the communities in, which they reside. GED preparation courses are also offered for students who require assistance in developing test-taking skills and who would benefit from tutoring services. As of December 31, 2011, the Company operated 11 facilities that provided educational services.

The Company also offers a variety of other behavioral health services for specialized populations who need specific treatment methods. Programs include at risk infant and children clinics, sexually maladaptive behavior (SMB) programs, programs for adolescent females, programs for the mentally retarded and developmentally disabled youth and programs for severe and persistently mentally ill youths.

Call Center Operations

The Company provides management , administrative and help lines services. The Company provides these servicesthrough contracts with railroads and a call center contract with Wayne County, Michigan.

The Company ! competes ! with UHS, Aurora Behavioral Health Care (Aurora) and Ascend Health Corporation (Ascend).

Advisors' Opinion:

[By Roberto Pedone]
Acadia Healthcare (ACHC) develops and operates a network of behavioral health facilities, providing premier psychiatric and chemical dependency services to its patients. This stock closed up 6.5% at $36.87 in Wednesday's trading session.

Wednesday's Volume: 792,000

Three-Month Average Volume: 360,986

Volume % Change: 124%

From a technical perspective, ACHC soared higher here right above its 50-day moving average at $34.12 with strong upside volume. This move pushed shares of ACHC into breakout territory, since the stock took out its former 52-week high at $36. Shares of ACHC have been uptrending strong over the last six months, with shares soaring higher from its low of $24.93 to its intraday high of $37. During that move, shares of ACHC have been making mostly higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in ACHC as long as it's trending above its 50-day at $34.12 and then once it sustains a move or close above Wednesday's high of $37 with volume that's near or above 360,986 shares. If we get that move soon, then ACHC will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $45.
[By Maria Armental var popups = dojo.query(".socialByline .popC"); popups.forEach]
Acadia Healthcare Co.(ACHC) Inc. agreed to acquire U.K.-based independent behavioral-health services firm Partnerships in Care for roughly $660 million, providing a foothold in Britain.
[By Tom Lydon]
Top holdings based on the index include Acadia Healthcare Companies (ACHC), Amsurg Corporation (AMSG), Brookdale Senior Living (BKD), Clarcor (CLC) and Community Health Systems (CYH).

10 Best Services Stocks To Buy Right Now: Canadian Pacific Railway Limited(CP)

Canadian Pacific Railway Limited, through its subsidiaries, operates as a transcontinental railway providing freight transportation services, logistics solutions, and supply chain expertise in Canada and the United States. It transports bulk commodities, including grain, coal, sulphur, and fertilizers; merchandise freight; finished vehicles and automotive parts; forest products, which include wood pulp, paper, paperboard, newsprint, lumber, panel, and oriented strand board; and industrial and consumer products comprising chemicals, energy, and plastics, as well as mine, metals, and aggregates. The company provides rail and intermodal transportation services over a network of approximately 14,700 miles serving the principal business centers of Canada, from Montreal to Vancouver, British Columbia; and the Midwest and Northeast regions of the United States. Canadian Pacific Railway Limited was founded in 1881 and is headquartered in Calgary, Canada.

Advisors' Opinion:

[By Vanina Egea]
Canada is being home to one of the hottest transport debates seen in the last decade. Surprisingly enough it is far from legislating over auto pilots, bio fuels or frisking. The focus of Bill C-30, according to the Calgary Herald, is ��ederal legislation aimed at getting more grain moving on the rails.��Canadian Pacific (CP)�� chief operating officer Keith Creel told a House of Commons committee, however, that he had a great concern over the bill�� real effect. Company representatives argue that giving shippers the ability to transfer traffic to alternate railways may indeed slow down the grain supply chain due to increased handlings.
[By Aaron Levitt]
Another prime choice in the world of railroad stocks could be the chief Canadian rival of CNI:�Canadian Pacific (CP). Like CNI, CP has made crude-by-rail a top contributor to its revenues and profits. Canadian Pacific has expanded into new terminal partnerships and projects, and its crude shipments should reach 70,000 oil-tank cars by the end of the year. Oh, and that number will expand roughly to 140,000 by the end of 2015.

10 Best Services Stocks To Buy Right Now: Pactera Technology International Ltd (PACT)

Pactera Technology International Ltd. (Pactera), formerly HiSoft Technology International Limited, incorporated on May 27, 2004, provides global consulting and technology services. The Company provides business/information technology (IT) consulting, solutions, and outsourcing services to a range of multinational firms through a globally integrated network of onsite and offsite delivery locations in China, the United States, Europe, Australia, Japan, Singapore and Malaysia. In January 2014, Pactera Technology International Ltd announced the acquisition of Innoveo Solutions AG.

The Company�� services include business and technology advisory, enterprise application services, business intelligence, application development and maintenance, mobility, cloud computing, infrastructure management, software product engineering and globalization, and business process outsourcing. The Company�� clients include 3M, ABB, Cathay Pacific, China Merchants Bank, Citibank, EMC, Expedia, GE, HP, IBM, Lenovo, Microsoft, Mitsubishi, NEC and TIBCO.

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 Pactera Technology International (Nasdaq: PACT ) , whose recent revenue and earnings are plotted below.
[By Seth Jayson]
Pactera Technology International (Nasdaq: PACT ) reported earnings on May 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Pactera Technology International missed estimates on revenues and met expectations on earnings per share.

10 Best Services Stocks To Buy Right Now: CalAmp Corp (CAMP)

CalAmp Corp. (CalAmp) develops and markets wireless technology solutions that deliver data, voice and video for critical networked communications and other applications. The Company has two business segments: Wireless DataCom, which serves commercial, industrial and government customers, and Satellite, which focuses on the North American Direct Broadcast Satellite (DBS) market. In May 2012, CalAmp Corp announced that it has entered into a five-year supply agreement to provide fleet tracking products to Navman Wireless. As part of the transaction, CalAmp has acquired certain products and technologies from Navman Wireless and established a research and development center in Auckland, New Zealand. The assets acquired by CalAmp include technology for Mobile Display Terminals (MDT) and an MDT product line marketed to telematics original equipment manufacturers (OEMs) globally. In March 2013, it completed the acquisition of the operations of Wireless Matrix Corporation.

Wireless DataCom

The Wireless DataCom segment provides wireless technology, products and services for industrial Machine-to-Machine (M2M) and Mobile Resource Management (MRM) market segments for a range of applications, including optimizing and automating electricity distribution and ancillary utility functions; facilitating communication and coordination among emergency first-responders; increasing productivity and optimizing activities of mobile workforces; improving management control over valuable remote and mobile assets, and enabling emerging applications in a wirelessly connected world.

The Company's Wireless DataCom segment is comprised of a Wireless Networks business and an MRM business. CalAmp's Wireless Networks business provides products, systems and services to industrial, utility, energy and transportation enterprises and state and local governmental entities for deployment where the ability to communicate with mobile personnel or to command and control remote assets is crucial. Utilities! , oil and gas, mining, railroad and security companies rely on CalAmp products for wireless data communications to and from outlying locations, permitting real-time monitoring, activation and control of remote equipment. Applications include remotely measuring freshwater and wastewater flows, pipeline flow monitoring for oil and gas transport, automated utility meter reading, remote Internet access and perimeter monitoring. CalAmp is among the leaders in the application of wireless communications technology to Smart Grid power distribution automation for electric utilities.

MRM wireless solutions include global positioning system (GPS) location, cellular data modems and programmable events-based notification firmware as key components, allowing customers to know where and how their assets are performing, no matter where those mobile assets are located. Commercial organizations, vehicle finance providers, city and county governments, and a range of other enterprises rely on CalAmp products and systems to optimize delivery of services and protect valuable assets. Applications include fleet management, asset tracking, student and school bus tracking and route optimization, stolen vehicle recovery, remote asset security, remote vehicle start, and machine-to-machine communications. In addition to functioning as an OEM supplier of location and communications hardware for MRM applications, CalAmp is a total solutions provider of turn-key systems incorporating location and communications hardware, cellular airtime and Web-based remote asset management tools and interfaces.

The Company competes with Motorola Solutions, GE-MDS, Freewave, Sierra Wireless, GenX, Spireon, Novatel Wireless-Enfora and Xirgo.

Satellite

The Satellite segment develops, manufactures and sells DBS outdoor customer premise equipment and whole home video networking devices for digital and high definition satellite television (TV) reception. CalAmp's satellite products are sold primarily to ! EchoStar,! an affiliate of Dish Network.

The Company's DBS reception products are installed at subscriber premises to receive television programming signals transmitted from orbiting satellites. These DBS reception products consist principally of outdoor electronics that receive, process, amplify and switch satellite television signals for distribution over coaxial cable to multiple set-top boxes inside the home that can acquire, recognize and process the signal to create a picture.

The Company competes with Sharp, Wistron NeWeb Corporation, Microelectronics Technology, Pro Brand and Global Invacom.

Advisors' Opinion:

[By Sara Sjolin]
In the corporate sector, CalAmp Corp. (CAMP) �is likely to move. Shares dropped late Monday after its outlook for the current quarter fell short of Wall Street estimates.
[By Luke Jacobi]
CalAmp (NASDAQ: CAMP) shot up 14.24 percent to $21.35 after the company reported upbeat fiscal second-quarter results.

HomeAway (NASDAQ: AWAY) was up as well, gaining 8.17 percent to $29.74 on speculation of takeover talks with Priceline.com (NASDAQ: PCLN).

10 Best Services Stocks To Buy Right Now: Remy Cointreau SA (RCO)

Remy Cointreau SA is a France-based company engaged in the production and distribution of wines and spirits. The Company's activities are divided into two segments. Cognac, which offers a range of products under the Remy Martin brand and Liqueurs and Spirits, distributing liquors under the Cointreau, Izarra and Passoa brand names, as well as spirits under such brand names as Mount Gay (rum), St Remy (brandy), Ponche Kuna (rum) and Metaxa (brandy). The Company is a sole distributor of the Piper-Heidsieck and Charles Heidsieck brands, as well as Piper Sonoma (the sparkling wine brand). The Company's subsidiaries include production companies, such as E. Remy Martin & Cie, and distribution companies, such as Remy Cointreau USA Inc. In August 2013, it completed the sale of Larsen Cognac to the Finnish group Altia. Advisors' Opinion:

[By Inyoung Hwang]
EasyJet Plc and International Consolidated Airlines Group SA climbed as oil prices fell after the U.S. and Russia agreed on a plan to destroy Syrian chemical weapons. Hennes & Mauritz AB (HMB) advanced to a three-year high after sales topped estimates. Remy Cointreau SA (RCO) soared the most in almost four years as Chinese cognac shipments increased.
[By Inyoung Hwang]
Remy Cointreau SA (RCO) jumped 6 percent, the most since January. Chinese cognac shipments increased 20.5 percent in August, rising for the first time since January, according to UBS AG, citing from BNIC, a trade association of cognac makers.
[By Jonathan Morgan]
European stocks dropped, following a two-day gain, as Remy Cointreau SA (RCO) and Pernod Ricard SA dragged food-and-beverage makers lower. U.S. index futures and Asian shares were little changed.

10 Best Services Stocks To Buy Right Now: Evertec Inc (EVTC)

EVERTEC, Inc. (EVERTEC), formerly Carib Latam Holdings, Inc., incorporated on January 26, 1989, is a full service transaction processing business in Latin America and the Caribbean. The Company provides a range of merchant acquiring, payment processing and business process management services across 19 countries in the region. It processes over 1.8 billion transactions annually, and manages the electronic payment network for over 4,100 automated teller machines (ATM) and over 104,000 point-of-sale payment terminals. It is the merchant acquirer in the Caribbean and Central America and in Latin America. The Company owns and operates the ATH network, one of ATM and personal identification number debit networks in Latin America. In addition, it provides a suite of services for core bank processing, cash processing and technology outsourcing. It serves a diversified customer base of financial institutions, merchants, corporations and government agencies with technology solutions.

The Company serves a diversified customer base of financial institutions, merchants, corporations and government agencies with technology solutions that are essential to their operations, enabling them to issue, process and accept transactions securely. The Company�� broad suite of services span the entire transaction processing value chain and include a range of front-end customer facing solutions as well as back-end support services. These include: merchant acquiring services, which enable POS and e-commerce merchants to accept and process electronic methods of payment such as debit, credit, prepaid and electronic benefits transfer (EBT) cards; payment processing services, which enable financial institutions and other issuers to manage, support and facilitate the processing for credit, debit, prepaid, ATM and EBT card programs; and business process management solutions, which provide mission critical technology solutions such as core bank processing, as well as information technology (IT) outsourcing and cash mana! gement services to financial institutions, enterprises and governments. The Company offers its customers end-to-end products and solutions across the transaction processing value chain from a single source across numerous channels and geographic markets.

Merchant Acquiring

Merchant Acquiring business provides services to merchants at over 25,000 locations that allow them to accept electronic methods of payment such as debit, credit, prepaid and EBT cards carrying the ATH, Visa, MasterCard, Discover and American Express brands. Its suite of merchant acquiring services includes, but is not limited to, the underwriting of each merchant�� contract, the deployment of POS devices and other equipment necessary to capture merchant transactions, the processing of transactions at the point-of-sale, the settlement of funds with the participating financial institution, detailed sales reports and customer support. The Company�� Merchant Acquiring business generated 20.4%, of total revenues and 26.6%, of total segment income from operations for the year ended December 31, 2012.

Payment Processing

It provide diversified suite of payment processing products and services to blue chip regional and global corporate customers, government agencies, and financial institutions across Latin American and the Caribbean. These services provide the infrastructure technology necessary to facilitate the processing and routing of payments across the transaction processing value chain. At the point-of-sale, it sell transaction processing technology, similar to the services in its Merchant Acquiring business, to other merchant acquirers to enable them to service their its merchant customers. It also offer terminal driving solutions to merchants, merchant acquirers (including its Merchant Acquiring business) and financial institutions, which provide the technology to securely operate, manage and monitor POS terminals and ATMs. It also sells and rent POS devices to financial insti! tution cu! stomers who seek to deploy them across their own businesses. As of December 31, 2012, the Company provides technology services for over 4,100 ATMs and over 104,000 POS terminals in the region and is continuously certifying new machines and devices to expand this reach. The Company�� Payment Processing business accounted for 27.7%, of total revenues and of total segment income from operations for the year ended December 31, 2012.

Business Solutions

The Company provides its financial institution, corporate and government customers with a full suite of business process management solutions including specifically core bank processing, network hosting and management, IT consulting services, business process outsourcing, item and cash processing, and fulfillment. The Company�� Business Solutions business accounted for 51.9%, of total revenues and 31.3%, of total segment income from operations for the year ended December 31, 2012.

The Company Competes with Vantiv, Inc., First Data Corporation, Global Payment Inc., Elavon, Inc., Sage Payment Solutions, Fidelity National Information Services, Inc., Fiserv, Inc. and Total System Services, Inc.

Advisors' Opinion:

[By Jake L'Ecuyer]
Shares of EVERTEC (NYSE: EVTC) got a boost, shooting up 8.91 percent to $22.99 after the company reported the commencement of offering by selling holders.

10 Best Services Stocks To Buy Right Now: Biosev SA (BSEV3)

Biosev SA, formerly LDC Bioenergia SA, is a Brazil-based company active in the sugar and energy business. It is primarily engaged in the sugarcane processing. The Company produces sugar and ethanol, and supplies its products to domestic and international markets. Its refined sugar is sold under the Estrela brand name on the Brazilian retail market. The ethanol products comprise: hydrous ethanol, anhydrous ethanol and neutral ethanol. Other products from its plants include animal feed, dry yeast, molasses powder and bioelectricity from sugarcane bagasse. The Company�� customers include Nestle, Coca-Cola, AmBev, Kraft, Dori and Unilever, among others. The Company's production units are present in five Brazilian states: Mato Grosso do Sul, Sao Paulo, Minas Gerais, Paraiba and Rio Grande do Norte. Advisors' Opinion:

[By Lucia Kassai]
Biosev SA (BSEV3), Louis Dreyfus Holding BV�� Brazil unit, tumbled in its debut after giving investors in its initial public offering a money-back guarantee.

10 Best Services Stocks To Buy Right Now: Steiner Leisure Limited(STNR)

Steiner Leisure Limited provides spa services and personal care products for men, women, and teenagers worldwide. The company offers beauty care products, including cleansers, toners, moisturizers, lotions, waxing products, cleansing accessories, and other skin care and body products, as well as aromatherapy oils and beauty tools; and hair care products, such as shampoos, conditioners, styling products, and related items. Its services include massages, facials, microdermabrasion, waxing, aromatherapy treatments, seaweed wraps, aerobic exercise, yoga, pilates, hair styling, manicures, pedicures, and teeth whitening, as well as various other beauty and body treatments and services; acupuncture; and medi-spa services comprising BOTOX Cosmetic, Dysport, Restylane, and Perlane. In addition, the company operates approximately 12 post-secondary schools, which provide education in massage therapy, beauty, skin care, and related areas at 30 campuses in 14 states. Further, it provid es procedures for the removal of unwanted facial and body hair in a clinical setting. The company offers its products and services under the Elemis, La Th�apie, Bliss, Rem�e, Laboratoire Rem�e, Mandara Spa, Mandara, Jou, and Chavana brands through department stores; third party retail outlets; distributors; salons; mail orders; and company owned Websites, including www.timetospa.com, www.timetospa.co.uk, www.blissworld.com, www.blisslondon.co.uk, and www.bodyworkmall.com, as well as through the QVC home shopping television channel. As of February 13, 2012, it served 152 cruise ships representing 19 cruise lines; and operated 54 resort spas, 11 urban hotel spas, 6 day spas, and 59 ideal image laser hair removal centers. Steiner Leisure Limited was founded in 1934 and is based in Nassau, the Bahamas.

Advisors' Opinion:

[By John Udovich]
On Thursday, small cap fitness club owner Life Time Fitness, Inc (NYSE: LTM) lost some weight for investors as analysts gave the stock a workout after its Analyst Day failed to ease their concerns, meanings its worth taking a closer look at the stock along with the performance of Town Sports International Holdings, Inc (NASDAQ: CLUB)�and Steiner Leisure Ltd (NASDAQ: STNR).
[By Rick Munarriz]
Royal Caribbean,�NCL (NYSE: NCL ) , and ship spa services provider Steiner Leisure (NASDAQ: STNR ) all hit new 52-week highs earlier this month. Unlike Carnival (NYSE: CCL ) -- which has been sluggish in light of several mishaps at sea since last year -- everyone seemed to view the negative instances as Carnival-specific events. Now Royal Caribbean's fire may lead folks to question booking on any cruise line in the near future.

Pentagon Awards $10.33 Billion in Defense Contracts Friday

The Department of Defense awarded 12 separate defense contracts Friday, worth $10.33 billion in total. The vast majority of these funds, however, were awarded in just a single award -- a monster $10 billion firm-fixed-price, indefinite-delivery/indefinite-quantity contract for "support of special operational equipment tailored logistics support program."

Only five privately held firms will participate in this two-year contract (extendable up to five years). No publicly traded firms at all were chosen to participate -- but publicly traded firms did still win a few of the day's smaller contracts, among them:

A $76.1 million contract modification awarded to the Bell-Boeing Joint Project Office, a joint venture between Textron (NYSE: TXT ) and Boeing (NYSE: BA ) , which instructs the JPO to delivery one single additional CV-22 tiltrotor aircraft to the U.S. Air Force by December 2016. A $39.4 million fixed-price with economic-price-adjustment contract for Sysco (NYSE: SYY ) to provide "prime vendor food and beverage support" to the U.S. Army, Navy, Air Force, and Job Corps in Florida through April 16, 2019. A $32.3 million option exercise for NuStar Energy L.P. (NYSE: NS ) subsidiary Shore Terminals LLC to provide "petroleum storage services" to the U.S. Army, Air Force, and Marine Corps through Nov. 30, 2016. A $7.7 million undefinitized contract modification compensating Lockheed Martin (NYSE: LMT ) for "non-recurring sustainment activities" performed on behalf of the government of the United Kingdom, related to the latter's purchase of F-35 Lightning II stealth fighter jets. This contract has a completion date of June 2014.

Top 5 Supermarket Stocks To Watch Right Now

With shares of Wal-Mart (NYSE:WMT) trading around $79, is WMT an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework.

T = Trends for a Stock’s Movement

Wal-Mart operates retail stores in various formats around the world. The company aims to price items at the lowest price every day. Wal-Mart operates in three business segments: the Walmart U.S. segment, the Walmart International segment, and the Sam�� Club segment. It manages retail stores, restaurants, discount stores, supermarkets, super centers, hypermarkets, warehouse clubs, apparel stores, Sam�� Clubs, neighborhood markets, and other small formats, as well as Walmart.com and Samsclub.com. Through its retail channels, Wal-Mart is able to provide a variety of products and services at affordable prices to consumers and companies worldwide.

Wal-Mart reported third-quarter results Thursday morning that showed retailers are still feeling the squeeze of reduced consumer spending. Wal-Mart�� same-store sales in the U.S. fell during the quarter, showing that its core business of large stores in rural America is struggling, according to Business Insider. Earnings came in at $1.14 per share, beating expectations by 1 cent. Wal-Mart�� revenue of $114.9 billion fell below expectations of $116.8 billion.

Top 5 Supermarket Stocks To Watch Right Now: Uomo Media Inc (UOMO)

UOMO Media Inc., incorporated on June 10, 2004, is in the business of producing, managing, and monetizing music-based intellectual property. The Company provides music publishing, digital music and video, recorded music and production, and talent management services. The Company operates in four divisions: music publishing, recorded music, digital distribution and talent management. The Company has two subsidiaries in Canada, UOMO Productions Inc. and UOMO Music Publishing Inc. In addition, The NE Inc. is a wholly owned subsidiary of UOMO Productions Inc. and UOMO Songs Ltd. is a wholly owned subsidiary of UOMO Music Publishing Inc. As of April 30, 2009, the Company had 22 production customers. The Company�� customers include VideoFact and Universal Music. As of April 30, 2009, the Company was in the development stage.

In the music publishing segment, UOMO Music Publishing Inc. is tasked with creating a catalogue of assets in the form of copyrights. Services include Fund advances, which includes providing advances to individual composers; Administration, which includes registration, tracking, and collection of copyright royalties; Creative, which includes creating copyrights by writing songs, and Licensing, which includes finding opportunities to monetize copyrights by placing songs on recording artists, films, television, video games, commercials.

In the recorded music segment, the Company earns revenue from the ownership of master recordings. UOMO Recorded Music has three functions: catalogue acquisition, talent acquisition for/and production activities and distribution arrangements for projects. UOMO Recorded Music is the record label division of UOMO. Production services also fall under this division.

In the digital distribution segment, the Company has been developing digital music and video Web 2.0 software. In the talent management segment, the Company earns a percentage of gross revenues for all projects it manages. As of April 30, 2009, the Company ! was in the process of developing programming architecture for the new digital music and video portal.

The Company competes with Warner Music Group, EMI, Sony BMG, and Universal Music Group.

Advisors' Opinion:

[By Peter Graham]
Small cap media stocks UOMO Media Inc (OTCMKTS: UOMO), International Display Advertising (OTCMKTS: IDAD) and Media Analytics Corp (OTCBB: MEDA) have been getting some extra media attention lately thanks in part to paid promotions. It should be said that there is nothing wrong with properly disclosed paid promotional or investor relation campaigns for stocks, but they can backfire on unwary investors and traders alike. With that in mind, here is a closer look at along with a reality check for these three small cap media stocks:

Top 5 Supermarket Stocks To Watch Right Now: j2 Global Inc (JCOM)

j2 Global, Inc., incorporated on December 14, 1995, is a provider of services delivered through the Internet. The Company provides cloud services to businesses of all sizes, from individuals to enterprises. The Company operates in two segments: Business Cloud Services and Digital Media. The Company's Digital Media business segment consists of the Web properties and business operations of Ziff Davis, Inc. (Ziff Davis). The Company�� cloud services and solutions include fax, voice and unified communications, email and customer relationship management, online backup, global network and operations, and customer support services. In February 2013, it acquired IGN Entertainment, Inc. On November 9, 2012, the Company acquired Ziff Davis. Effective March 18, 2013, it acquired MetroFax Inc. In April 2013, the Company acquired Backup Connect BV.

Business Cloud Services

The Company's eFax and MyFax online fax services enable users to receive faxes into their email inboxes and to send faxes via the Internet. eVoice and Onebox provides the Company's customers a virtual phone system with various available enhancements. The Company's FuseMail service provides the Company's customers email, archival and perimeter protection solutions, while Campaigner provides its customers email marketing solutions. KeepItSafe enables the Company's customers to securely backup their data and dispose of tape or other physical systems. The Company's CampaignerCRM business provides customer relationship management solutions designed to increase the Company's customers' sales and increase efficiency. The Company also generates Business Cloud Services revenues from patent licensing and sales and advertising. The Company�� Business Cloud Services and solutions are of two types: direct inward-dial number (DID) -based, which are services provided in whole or in part through a telephone number and non-DID-based, which are its other cloud services for business. As of December 31, 2012, the Company had DIDs issued! to approximately 2.1 million paying subscribers.

The Company's services allow individuals to receive and send faxes as email attachments. In addition to eFax , the Company offers online fax services under a variety of alternative brands, including MyFax , eFax Plus , eFax Pro, eFax Corporate and eFax Developer . eVoice is a virtual phone system that provides small and medium-sized businesses on-demand voice communications services, featuring a toll-free or local company DID, auto-attendant and menu tree. With these services, a subscriber can assign departmental and individual extensions that can connect to multiple United States or Canadian DIDs, including land-line and mobile phones and Internet protocol (IP) networks. These services also include advanced integrated voicemail for each extension, unifying mobile, office and other separate voicemail services and improving efficiency by delivering voicemails in both native audio format and as transcribed text. Onebox is a unified communications suite. It combines the features of many of the Company's other branded services, plus added functionality, to provide a virtual office. Onebox includes a virtual phone system, hosted email, online fax, audio conferencing and Web conferencing.

FuseMail offers hosted email, email encryption and email archival services to businesses. These solutions are hosted offsite and seamlessly integrated into a customer's existing email system. The services include hosted email, VirusSMART virus scanning, CypherSMART encryption services, SpamSMART SPAM filtering and VaultSMART / PolicySMART archiving, which delivers a secure, scalable email archiving and customizable compliance tool to correspond with a company's retention policy. Campaigner is an email marketing service that enables businesses to easily create and send personalized one-to-one email communications to subscribers and customers to build better relationships. Campaigner also helps businesses increase the size of their mailing lists, compl! y with em! ail regulations like CAN-SPAM and get more emails to more inboxes. CampaignerCRM is a cloud-based CRM solution specifically designed to help small/medium-sized businesses close more deals, reduce the sales cycle and sell larger deals. CampaignerCRM has a sales checklist capability that gives sales representatives a step-by-step plan to closing a deal. With CampaignerCRM's Social CRM capabilities, companies can seamlessly integrate a customer's latest information from Twitter, LinkedIn, and Facebook directly into their Contact profile. KeepItSafe provides managed and monitored online backup solutions for businesses, using its ISO-certified platform.

The Company's Business Cloud Services business operates multiple physical Points of Presence (POPs) worldwide, a central data center in Los Angeles and several remote disaster recovery facilities. The Company connects its POPs to its central data centers through redundant, and often times diverse, Virtual Private Networks (VPNs) using the Internet. The Company's network is designed to deliver value-added user applications, customer support and billing services for the Company's customers anywhere in the world and a local presence for its DID-based service customers from thousands of cities in 49 countries on six continents. The Company offers DIDs covering all major metropolitan areas in the United States, United Kingdom and Canada, and such other major cities as Berlin, Hong Kong, Madrid, Manila, Mexico City, Milan, Paris, Rome, Singapore, Sydney, Taipei, Tokyo and Zurich. The Company has customers located throughout the world.

The Company's Business Cloud Services customer service organization supports the Company's cloud services customers through a combination of online self-help, email communications, interactive chat sessions and telephone calls. The Company's Internet-based online self-help tools enable customers to resolve simple issues on their own, eliminating the need to speak or write to the Company's customer service re! presentat! ives. The Company's Business Cloud Services segment customer service organization provides email support seven days per week, 24 hours per day to all subscribers. Paying subscribers have access to live-operator telephone support seven days per week, 24 hours per day. Dedicated telephone support is provided for corporate customers 24 hours per day, seven days per week. Live sales and customer support services are available in nine languages, including English, Spanish, Dutch, German, French and Cantonese.

Digital Media

The Ziff Davis portfolio of Web properties, including PCMag.com, ExtremeTech.com, Geek.com, ComputerShopper.com, LogicBuy.com and Toolbox.com features reviews of technology products, technology-oriented news and commentary, professional networking tools for IT professionals and online deals and discounts for consumers. The Company generates Digital Media revenues from the sale of display advertising targeted to in-market technology buyers and from the sale of customer leads to online merchants and business-to-business leads to IT vendors. During the year ended December 31, 2012, Digital Media Web properties attracted 345 million visits and 1.1 billion page views.

PCMag is a trusted online resource for laboratory-based product reviews, technology news and buying guides. Toolbox.com is a network of online communities that allows experienced technology professionals to share collective knowledge and collaborate to resolve problems more efficiently. Toolbox.com includes professional networking tools, blogs, collaboration tools and reference guides. Geek.com is an online technology resource and community for technology enthusiasts and professionals. Its gaming site includes IGN.com and men's lifestyle site includes AskMen.com.

The Company competes with Google AdSense, DoubleClick Ad Exchange, AOL's Ad.com and Microsoft Media Network.

Advisors' Opinion:

[By Rich Smith]
j2 Global (NASDAQ: JCOM ) just keeps on growing -- by acquisition.

In its third corporate purchase in the past three months, j2 announced this morning that it has acquired Netherlands-based Backup Connect BV, a provider of online data backup services.
[By Rick Munarriz]
Finally, we have j2 Global (NASDAQ: JCOM ) keeping a welcome streak alive. The provider of Internet services declared a quarterly distribution of $0.24 a share. This may be a mere 3% uptick, but j2 has come through with rate hikes in each of the past seven quarters. The total increase over the course of that run is a solid 20% advance.

Hot Clean Energy Companies To Invest In 2015: Mindray Medical International Limited (MR)

Mindray Medical International Limited, through its subsidiary, Shenzhen Mindray Bio-Medical Electronics Co., Ltd., develops, manufactures, and markets medical devices worldwide. It operates in three segments: Patient Monitoring and Life Support Products, In-Vitro Diagnostic Products, and Medical Imaging Systems. The Patient Monitoring and Life Support Products segment offers patient monitoring devices that track the physiological parameters of patients, such as heart rate, blood pressure, respiration, and temperature. This segment?s patient monitoring devices are suitable for adult, pediatric, and neonatal patients and are used principally in hospital intensive care units, operating rooms, and emergency rooms. This segment provides single and multiple-parameter monitors, mobile and portable multifunction monitors, central stations that could collect and display multiple patient data on a single screen, and an electro-cardiogram monitoring device; veterinary monitoring devi ces; and anesthesia machines, as well as defibrillators, surgical beds, and surgical lights. The In-Vitro Diagnostic Products segment offers data and analysis on blood, urine, and other bodily fluid samples for clinical diagnosis and treatment. This segment also provides semi-automated and fully-automated in-vitro diagnostic products for laboratories, clinics, and hospitals. In addition, this segment offers hematology analyzers and biochemistry analyzers, and reagents. The Medical Imaging Systems segment provides ultrasound systems, which are employed in medical fields consisting of urology, gynecology, obstetrics, and cardiology; digital radiography systems; and a magnetic resonance imaging system. The company serves distributors, original design manufacturers, original equipment manufacturers, and hospitals and government agencies. Mindray Medical International Limited was founded in 1991 and is headquartered in Shenzhen, the People?s Republic of China.

Advisors' Opinion:

[By John Udovich]
China is set to ease the one child policy, something that could benefit Chinese stocks in general but be especially beneficial to insurance stocks like China Life Insurance Company Ltd (NYSE: LFC) and CNinsure Inc (NASDAQ: CISG) plus health care stocks like Mindray Medical International Ltd�(NYSE: MR) and Concord Medical Services Hldg Ltd (NYSE: CCM). First, let�� be clear that China is NOT abolishing the one child policy as the changes will merely�allow married couples to have two children if one spouse is an only child plus it will be up to China�� 34 province-level administrations to revise�their laws and put the new policy into effect. Moreover, China�� family-planning bureaucracy employs more than 500,000 full-time workers and six million part-time workers all the way down to the village level to�collect billions of dollars in fines and these bureaucrats have fought for years against policy changes��meaning they could throw up roadblocks if not placated. With that said, the insurance and health care sectors are two sectors with publicly Chinese stocks that look set to�take advantage of the coming changes.

Top 5 Supermarket Stocks To Watch Right Now: Yahoo! Inc.(YHOO)

Yahoo! Inc., together with its subsidiaries, operates as a digital media company that delivers personalized digital content and experiences through various devices worldwide. It offers online properties and services to users; and a range of marketing services to businesses. The company?s communications and communities offerings include Yahoo! Mail, Yahoo! Messenger, Yahoo! Groups, Yahoo! Answers, Flickr, and Connected TV, which provide a range of communication and social services to users and small businesses enabling users to organize into groups and share knowledge, common interests, and photos. Its search products comprise Yahoo! Search and Yahoo! Local, available free to users to navigate the Internet and discover content. The company?s marketplaces offerings and services include Yahoo! Shopping, Yahoo! Travel, Yahoo! Real Estate, Yahoo! Autos, and Yahoo! Small Business, which allow users to research specific topics, products, services, or areas of interest by review ing and exchanging information, obtaining contact details, or considering offers from providers of goods, services, or parties with similar interests. Its media offerings comprise Yahoo! Homepage, Yahoo! News, Yahoo! Sports, Yahoo! Finance, My Yahoo!, Yahoo! Toolbar, Yahoo! Entertainment & Lifestyles, Yahoo! Contributor Network, and Yahoo! Pulse, which are designed to engage users with online content and services on the Web. The company also offers marketing services, such as display and search advertising, listing-based services, and commerce-based transactions to advertisers. In addition, it provides software and platform offerings for third-party developers, advertisers, and publishers, such as Yahoo! Developer Network, Yahoo! Open Strategy, Yahoo! Application Platform, Yahoo! Updates, Yahoo! Query Language, and Yahoo! Search BOSS. The company has strategic alliances with Nokia and ABC News, Inc. Yahoo! Inc. was founded in 1994 and is headquartered in Sunnyvale, Californi a.

Advisors' Opinion:

[By Doug Ehrman]
Yahoo! (NASDAQ: YHOO ) recently announced that it's partnering with dropbox to offer more comprehensive services to users of Yahoo! Mail. As a part of the company's push to revamp its image and reclaim lost market share, the move shows great promise. Along similar lines, the company is engaged in early discussions with Apple (NASDAQ: AAPL ) to deepen the relationship between the search company and Cupertino.
[By Eric Volkman]
Yahoo! (NASDAQ: YHOO ) has added some tech industry heft to its advertising efforts. The company announced it hired Ned Brody as its senior vice president and head of the Americas, putting him in charge of its advertising business on the two key continents. The appointment is effective immediately.

Top 5 Supermarket Stocks To Watch Right Now: General Cable Corporation (BGC)

General Cable Corporation designs, develops, manufactures, markets, and distributes copper, aluminum, and fiber optic wire and cable products worldwide. The company offers electric utility products, such as low- and medium-voltage distribution cables; high- and extra-high voltage power transmission cable products; bare overhead conductors; and submarine transmission and distribution cables, as well as provides design, integration, and installation services for products, such as high and extra-high voltage terrestrial and submarine systems. It also offers electrical infrastructure products, including rubber and plastic jacketed wires and cables, ignition wire sets, and cable wire harnesses, as well as industrial power, rail and mass transit, shipboard, oil and gas, mining, and alternative energy power generation cables. In addition, the company provides communications products comprising high-bandwidth twisted copper and fiber optic, multi conductor and pair fiber and coppe r networking, telecommunications exchange, coaxial, and low detection profile cables, as well as submarine cable systems, submarine networks, and offshore integration systems. Further, it provides construction products consisting of construction, flexible cords, and flame retardant cables, as well as rod mill products, including copper and aluminum rods. The company serves energy, industrial, construction, specialty, and communications markets. General Cable Corporation was founded in 1992 and is headquartered in Highland Heights, Kentucky.

Advisors' Opinion:

[By Sally Jones]
General Cable Corporation (BGC): Reduced
Up 10% over 12 months, General Cable has a market cap of $1.53 billion; its shares were traded at around $30.94 with a P/E ratio of 191.00 and a P/B of 1.20. The dividend yield of BGC is 1.17%.
[By Damian Illia]
Finally, I always like to see one of the most important financial ratios applying to stockholders, the best measure of performance for a firm's management: the return on equity. The ratio has decreased when compared to its ROE from the same quarter one year prior. Currently, a ROE of 45.9% is higher than all the 1,805 companies in the Diversified Industrials industry. Competitors such General Cable Corp. (BGC) has a very low ROE of 0.3% which is clearly not attractive. An alternative could be Belden Inc. (BDC) with a positive ROE of 24%.