Thursday, August 29, 2013

Healthways Renews Australian Contract - Analyst Blog

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Leading well-being enhancement company Healthways (HWAY) recently announced a 5-year contract renewal with Australia's prominent not-for-profit private health insurer, the Hospitals Contributions Fund (HCF). This contract renewal was based on the anticipated success of the company's My Health Guardian, Australia's longest and largest health management program.

As per the agreement, HCF in going to invest A$100 million over the coming years which will help further advancement of this program. Healthways, which is currently focusing on expansion through partnerships, is optimistic about this renewal. The company expects this deal to improve outcomes and participant benefits, which will reinstate the value of Healthways' health and well-being solutions worldwide.

We are optimistic about the My Health Guardian program as recent data suggests that chronic illness, which currently accounts for 70% of Australia's national disease burden, is going to increase to 80% by 2020. In addition, HCF's strong customer base of 1.5 million Australians will add impetus to the company's growth. This particular model from Healthways encourages people to make favorable lifestyle changes that lead to enhanced well-being, reduced healthcare costs, improved performance and economic value for customers.

According to Heathways, 32% of the My Health Guardian plan users have successfully improved their Perception of Health Score, 46% have reported better medication management as well as lower lifestyle risk factors such as smoking rate, physical inactivity, obesity and poor diet.

Healthways has invested in technology platforms that provide scalable support for large populations. The company has alliances with a majority of the U.S. health plans and has a huge clientele. Due to its unique scalable business model, Healthways' shares may present a long-t! erm investment opportunity, although it faces many challenges in the short term.

Currently, Healthways retains a Zacks Rank #3 (Hold). Among other stocks in the industry,Natus Medical (BABY), Wright Medical Group Inc. (WMGI) and ResMed Inc. (RMD) appear impressive. These stocks carry a Zacks Rank #1 (Strong Buy).

Wednesday, August 28, 2013

H&R Block Bank on Sale - Analyst Blog

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After a period of nine months in search of alternatives, H&R Block Inc. (HRB) finally decided to sell H&R Block Bank. The tax preparer inked an agreement with Republic Bank and Trust Company to divest the assets and transfer the liabilities of H&R Block Bank.

In Oct 2012, H&R Block announced its intention to divest H&R Block Bank. The divestiture will allow the company to be free from being subjected to regulations by the Federal Reserve Bank as a savings and loan holding company. In light of the proposed laws, which demand higher capital requirements for savings and loan holding companies like H&R Block Bank, H&R Block decided to go for the divestiture. These laws were proposed by the Federal Reserve to execute the changes as per the Dodd-Frank Act.

H&R Block will have to hold back considerable additional capital due to the proposed rule. Moreover, the implementation of the proposed rule might not align with its strategic plans, operational requirements and growth objectives.

Apart from regulatory approval, the transaction is subject to negotiation of additional agreements. Under these agreements, Republic Bank will act as the bank for H&R Block's core financial services products. The core financial services products include Refund Transfers, Emerald Advance lines of credit and the Emerald Prepaid MasterCard.

Following the divestiture, H&R Block will incur one-time cost of about 3–4 cents per share in fiscal 2014. H&R Block also estimates dilution of about 6–9 cents per share on an annualized basis, stemming from the service agreement with Republic.

H&R Block expects to receive necessary approval as well as finalize on the terms of service agreement with Republic to have a smooth fiscal 2014 tax season. In addition, the vend-off is expected to augment its financial service business. N! evertheless, it will remain equipped to offer financial services through H&R Block Bank for tax season 2014, in case the necessary approval is not obtained in time. Upon closing of the divestiture, H&R Block Bank will surrender its bank charter.

H&R Block has been trying to focus on its core tax business. Previously, it had divested RSM McGladrey to McGladrey & Pullen, LLP in Dec 2011. RSM McGladrey offered accounting, tax and consulting services to middle-market companies.

H&R Block remains focused on its strategic initiatives to improve operational efficiency and ramp up growth. Last year, H&R Block announced an agreement with Sears Holdings Corporation (SHLD), to focus on 112 best performing Sears locations, while shutting down the rest. This year, it is not renewing its agreement Wal-Mart (WMT) in the United States, as the performance and results from the channel failed to match its expectations.

We remain cautious on H&R Block, which carries a Zacks Rank #3 (Hold). However, Outerwall Inc. (OUTR) with a favorable Zacks Rank #2 (Buy) is worth considering.


Monday, August 26, 2013

Will Yahoo! Stock Continue to Improve with Marissa Mayer?

With shares of Yahoo! Inc. (NASDAQ:YHOO) trading around $27, is YHOO an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Yahoo is a technology company that provides search, content, and communication tools on the web and on mobile devices worldwide. It operates Yahoo.com, which offers Yahoo! Search, Yahoo! News, Yahoo! Sports, Yahoo! Finance, Yahoo! Entertainment and Lifestyles, and Yahoo! Video. Being such a large content provider, Yahoo is able to reach a significant amount of consumers across the globe. As the internet attracts an increasing number of participants, look for Yahoo! to continue to be a major player.

Yahoo! shares have soared since CEO Marissa Mayer took the position a year ago, but her performance has not yet taken effect on Yahoo's earnings. The company is scheduled to release its earnings results after the bell today. There's no doubt that Marissa Mayer has injected new energy into the Internet giant. Mayer has revamped many of Yahoo's core products, like Flickr, embarked on an ambitious acquisition spree that included the significant $1.1 billion purchase of Tumblr, as well as returned hundreds of millions of dollars to shareholders.

Yahoo's stock price has surged by nearly 73% since Mayer became CEO, but the gain is said to be almost entirely attributable to investments the company has made in two Asian companies: the Chinese e-commerce giant Alibaba, and Yahoo! Japan. Yahoo's core advertising business continues to struggle, as competition heats up from rivals Google (NASDAQ:GOOG) and Facebook (NASDAQ:FB).

T = Technicals on the Stock Chart are Strong

Yahoo stock has been surging higher over the last several months. The stock is now trading at prices not seen sin the mid-2000s. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? They are the 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Yahoo is trading slightly above its rising key averages, which signal neutral to bullish price action in the near-term.

YHOO

(Source: Thinkorswim)

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

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Yahoo Options

37.42%

76%

74%

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

Put IV Skew

Call IV Skew

August Options

Flat

Average

September Options

Flat

Average

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

On the next page, let’s take a look at the earnings and revenue growth rates, and what that means for Yahoo’s stock.

E = Earnings Are Improving Quarter-Over-Quarter

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

2013 Q1

2012 Q4

2012 Q3

2012 Q2

Earnings Growth (Y-O-Y)

52.17%

-2.15%

1048%

0.00%

Revenue Growth (Y-O-Y)

-6.62%

1.64%

-1.23%

-0.91%

Earnings Reaction

-0.37%

-3.00%

5.70%

0.64%

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

P = Excellent Relative Performance Versus Peers and Sector

How has Yahoo stock done relative to its peers, Google (NASDAQ:GOOG), AOL (NYSE:AOL), Microsoft (NASDAQ:MSFT), and the overall sector?

Yahoo

Google

AOL

Microsoft

Sector

Year-to-Date Return

36.91%

29.48%

27.05%

35.42%

33.16%

Yahoo has been a relative performance leader, year-to-date.

Conclusion

Yahoo is an Internet bellwether that provides a multitude of services to consumers and companies worldwide. There’s no doubt that Marissa Mayer, the new CEO, has improved the image of the company through a new corporate culture and recent investments. The stock has been on a powerful surge towards higher prices, and is now trading at levels not seen since the mid-2000s. Over the last four quarters, investors have had mixed feelings about the company, as earnings have improved while revenue has remained mixed. Relative to its peers and sector, Yahoo has been a year-to-date performance leader. Look for Yahoo to OUTPERFORM.

Sunday, August 25, 2013

Stock News: GM Gets Its Tech On; Pandora Tosses Its Cap

Signage for General Motors Co. (GM) is displayed at the Renaissance Center, the global headquarters of GM in Detroit, Michigan, U.S., on Thursday, June 6, 2013. General Motors Co., aiming to increase customer loyalty, announced it will expand its free scheduled maintenance program to most 2014 Chevrolet, Buick and GMC vehicles in the U.S. Photographer: Jeff Kowalsky/Bloomberg via Getty ImagesJeff Kowalsky/Bloomberg via Getty Images Companies can make brilliant moves, but there are also times when things don't work out quite as planned. From an electric car maker winning an eye-opening safety rating to a streaming company backtracking on a controversial usage cap again, here's a rundown of the week's smartest moves and biggest blunders in the business world. General Motors (GM) -- Winner The country's leading automaker has been bouncing back with strong sales in recent quarters, but it's always been a few steps behind some of its more consumer tech-savvy rivals in assessing smartphone integration with its dashboards. Well, GM is hoping to make up for lost ground by becoming the first car manufacturer to team up with Powermat Technologies to start offering wireless charging mats for smartphones in cars. This is a pretty big deal, especially as drivers rely on their phones more and more for everything from streaming entertainment to telematics. This kind of data slurping also bleeds smartphone batteries. Now drivers will have an easier way to charge their phones on the open road than fumbling for USB or electric chargers. Pandora Media (P) -- Blunder Caps aren't a good look on Pandora. The leading music-streaming service revealed Thursday that it will be eliminating the 40-hour monthly cap that it applies to mobile freeloaders. Getting rid of the cap is probably a smart move. Pandora went through this two years ago, eventually realizing that it was losing listeners as it tried to get them to pay up. The same thing was starting to happen now as growth was slowing considerably. The average number of hours streamed by the typical listener has been declining since the cap kicked in, and the end result is that Pandora's share of the overall radio listening market has suffered.

Tesla Motors (TSLA) -- Winner You won't find too many stocks as hot as Tesla this year, and apparently the car is even hotter. The National Highway Traffic Safety Administration awarded Tesla's Model S with a spectacular overall vehicle safety score. It's the agency's highest score to date, making Tesla's costly sedan the safest car in the country. (.) Naturally that won't be enough to make the electric car the driving choice of the masses when you start at more than $70,000 before a federal tax credit. It will take a few years before Tesla rolls out the more accessibly priced cars for mainstream consumers. However, there are people out there that value safety at any cost, and that's why this safety rating should drum up more sales for the Tesla Model S sedan. Walmart Stores (WMT) -- Blunder After surprising investors with a decline in same-store sales earlier this month, Walmart knows that it will have to try harder to win back shoppers. This week Walmart revealed that it will be beefing up its layaway plans by expanding it to include more products and eliminating the $5 that customers pay to initiate the layaway program. It's easy to question the merits of layaway. Why prepay for a product over the span of two to three months? Isn't it easier to just stash money away under a pillow? Well, it's never that easy for the consumers that resort to layaway. However, Walmart makes the blunder list this week because even as Walmart is promoting that it's doing away with the $5 initiation fee, it's also tacking on a $10 cancellation fee that wasn't there last holiday season. Netflix (NFLX) -- Winner Showtime currently has the exclusive rights to movies put out by Weinstein's TWC and Dimension Films studios during the pay TV window that begins shortly after a theatrical release is available on DVD or pay-per-view. That will change come 2016, as Netflix has just locked up exclusive streaming rights to the movies that the studios will put out starting that year. These are interesting times in the pay TV industry, as consumers are finally having a say in the content that they actually want to pay for. Netflix may have been an unlikely leader in this revolution. Just a few years ago it was merely mailing out DVDs and Blu-ray discs to movie buffs. However, Netflix has embraced streaming to be the disruptor instead of the disrupted. It's paying off again this week with another content deal.

Friday, August 23, 2013

Currency Manager Merk Finds Success With ‘Actively Managed Quant Fund’

To err is human, which is why we have quants, as anyone from the University of Chicago will readily attest.

Axel MerkWhen it comes to currency funds, however, and specifically absolute return currency funds, a little id goes a long way, at least according to Axel Merk (left).

The president and chief investment officer of Palo Alto, Calif.-based Merk Investments notes that quant strategies are great, until policymakers “change the rules.” It’s a risk that plays particular havoc in the currency space.

Which is the reason he’s introduced an active, human element into the Merk Absolute Return Currency Fund (MABFX).

It’s done in a systematic manner, Merk is quick to note, and all of the fund’s risk layers are still quant driven, "it’s just that the models have been demoted."

“We used to take a common sense look at the models and if we all felt okay with them we’d go with it,” he translates. “Now, if someone has an idea we feel will perform better than the model given what the risk profile would otherwise be, we will do it.”

By adding the human judgment dynamic, the absolute return currency fund is now “far more tactical.”

“We used to trade monthly, now it’s weekly and even intraday. We have markets that now flip on a dime, depending on whether it’s risk on or risk off. We said to ourselves, ‘why wait two weeks to react?’”

He further explains that the fund projects the choices made with the firm’s Hard Currency Fund (MERKX) on a trade-weighted basis into the absolute return fund, which are then unconstrained.

“We make a projection from directional to non-directional.”

So is the new strategy delivering?

The fund has a 1-year performance of 10.63% as of June 30 with a standard deviation of 6.49%. Surprisingly, its disappointing annualized 3-year return of -0.59%, and an annualized return of -1.02 % since inception in 2009, might actually strengthen Merk’s case, as the strategy update was deployed after the fund lost over 8% in 2011.

“We loved the concept of a quant-driven absolute return currency fund with its relatively low volatility and correlation. But absolute return strategies aren’t any good if there aren’t any returns.”

Top 10 Investments For 2014

The currency space, he concludes, appears to be well suited for such active management, as "non-profit-maximizing participants," such as corporate hedgers, central banks or travelers can create exploitable market inefficiencies.

Monday, August 19, 2013

See 10-year yield in 8.25-8.75% range till Mar: HDFC Bank

The bond markets are presenting an interesting position. Bond prices have been going higher and bond yields head lower for incessantly past two week.

There have been handsome gains of about Rs 4-5 (from the lows that bond prices reached four-five weeks ago) for bond prices. Ashish Parthasarthy of HDFC Bank expects 10-year bond yields to be in a broad range of 8.25-8.75% from now till March.

He also mentioned that a cash reserve ratio (CRR) cut is reasonably expected. Moreover, his forecast for the credit growth is around 17-17.5%.

Here is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying videos.

Q: What is the market pricing in at this point in time? At 8.42%, is the yield telling you that a CRR cut is getting priced in on Friday?

A: There is a reasonable expectation of CRR cut. That is not the only thing which has been priced in. The IIP figure came quite low. It�s very clear that the next monetary action would be to ease monetary policy. RBI has been aggressively conducting open market operations (OMOs). All this put together are driving the bond yields to new lows.

Q: If there is a CRR cut and inflation number tomorrow comes in lower than perhaps 9%, it would be positive. On the other hand, the negatives are probably a higher borrowing program from the government in the next quarter. Can bonds go back to 8.6% levels? Can they slip to 8.25% levels? What range are you looking at for one quarter now?

A: The broad range would be 8.25-8.75% from now till March. I will not be surprised if they touch 8.75% depending on the kind of surprise from the additional supply or broad borrowing program.

Q: There is a tight liquidity squeeze in the market. How much more by way of OMOs do you expect from the government?

A: In the last financial year, RBI effectively bought around Rs 67,500 crore in OMOs. Given the size of the borrowing program and the liquidity situation, I would expect RBI to buy OMOs at least to that extent of what they did last year or maybe slightly more. This would be to enable the borrowing program to go through smoothly without adversely impacting liquidity or yields.

Q4: What is your range for the month for bond markets if the reserve cut comes on Friday and if it doesn�t come? If it doesn�t come, does it go to 8.6% or will it be supported at 8.5%?

A: It can go to 8.6%. For this kind of month, I would put the immediate range at 8.25-8.30% to around 8.6-8.65%.

Q: What about bank balance sheets? On September 30, the market closed at 8.44%. Will there be decent treasury gains for banking stocks for this quarter?

A: I don�t expect very large treasury gains, but there would be some treasury gains this quarter.

Q: For the next quarter, what kind of lows can the markets go to? In January, will 8.25% comes pretty soon?

A: If 8.25% comes, it will come in the next one month. After that, it is difficult for it to come because the larger or higher borrowing program would put a floor to the yields.

Q: What are you pencilling in by way of credit growth? Much of the bond buying appetite will depend on how credit off take happens. Will it fall from 18% to 17-16%?

A: Our forecast for the system is at around 17-17.5%.

Sunday, August 18, 2013

JKS Offers Modules to S.A. Firm - Analyst Blog

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Chinese solar photovoltaic (PV) power product manufacturer JinkoSolar Holding Co., Ltd. (JKS) has delivered 304 kilowatts (kW) high-efficient solar PV modules for a project in South Africa.

Johannesburg-based roof-mounted PV Solar plant was built by the German firm Soventix GmbH. Over 1,200 units of PV modules have provision to generate roughly 443,840 Kilowatt-hour (kWh) of electricity annually and reduce emission of carbon dioxide by 72 tons per year.

JinkoSolar has a longstanding relationship with the South African firms. In Apr 2013, the company entered into an agreement with a solar project developer to supply a total of 115 megawatts (MW) of high-efficient solar panels.

Earlier, the Chinese solar product manufacturers generated major chunk of their revenues from the U.S. market. Currently, the U.S. government in a move to encourage domestic players levied countervailing duties of 15.24% and anti-dumping duties of effectively 25.96% on Chinese solar products. These initiatives will take a severe toll on the businesses of the Chinese solar power product manufacturers in North America.

U.S. solar markets are gradually becoming less lucrative for the Chinese solar module manufacturers. Currently, most of the Chinese players are expanding their footprint in African, Asian and Middle East markets.

In Jun 2013, JinkoSolar supplied high-efficient solar PV modules for the first private solar park in India. The modules have a total electric generation capacity of 25.8 MW. Other companies that are also in the geographical expansion race are Canadian Solar Inc. (CSIQ), LDK Solar Co. Ltd. (LDK) and ReneSola Ltd. (SOL).

Shangrao, China-based JinkoSolar engages in designing, producing and marketing PV products in the Chinese and overseas markets. The company currently has a Zacks Rank #2 (Buy).

Saturday, August 17, 2013

Concerns About Near-Term Results Only The Appetizer For ...

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Wall Street is infamously myopic with companies and stocks, and that obsession about the next quarter seems even sillier in the case of a stock like Intel (Nasdaq: INTC). The real question investors need to ask themselves is not whether Intel can beat third quarter estimates, but rather if the company can really gain meaningful share in the mobile market and/or whether the company's manufacturing and technological capabilities will translate into meaningful market share and cash flow. I do expect Intel to "stay in the game" as it were, but I don't see a particularly compelling case for owning the stock.

Second Quarter Results Come In Okay
Intel's reported results for the second quarter were basically okay. Revenue fell 5% from the year-ago period, rose 2% from the first quarter, and only barely missed the average sell-side target. The weak PC market was once again the primary source of the weakness, as PC group revenue declined 7% from the year-ago level. Data center revenue was down slightly (-2%), while "other" fell 15% and software rose 4%.

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Margins were also basically fine, at least relative to expectations. Gross margin was a little better than expected at 58.3% (down about five points from last year, but up almost two points sequentially). Operating income fell 29% (and rose 8% sequentially), but ended up only just slightly below expectation.

Slight Tweaks To Guidance
Intel's guidance for the next quarter followed the trend of this quarter – slightly lower revenue and slightly higher gross margin. Absent a big turnaround in the PC business, and there's nothing from Dell (Nasdaq: DELL) or Hewlett-Packard (NYSE: HPQ) to suggest that, it's hard to see too much scope for a big outperformance. I suppose back-to-school shopping could help, but getting the ultrabook concept going is probably the biggest near-term potential driver.

The Long Game Versus The Short Game
To be honest, I have a hard time getting too worked up about the near-term prospects for Intel. The company continues to generate an overwhelming portion of its revenue, operating income, and cash flow from the PC business, and I don't see what AMD (NYSE: AMD) can do about that at this point in the game.

The bigger question is what Intel can accomplish in the mobile space. Companies like Qualcomm (Nasdaq: QCOM), Samsung, and MediaTek have a substantial lead, but Intel has been investing considerable resources in its technological and manufacturing capabilities. I'm not going to get into a debate over the picayune details of performance benchmarks, other than to say that it looks like Intel's future chips may have a meaningful edge on ARM-based (Nasdaq: ARMH) chips. Coupled with what could be some impressive and cost-effective high-end manufacturing capabilities, there is at least the chance that Intel can break into top ranks of market share in phone/tablet application and baseband chips.

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My concern, though, is what that will ultimately be worth. I think Intel represents a threat to companies like Nvidia (Nasdaq: NVDA) and Broadcom (Nasdaq: BRCM), but I'm not sure the company can unseat Qualcomm and/or Samsung. Moreover, while phone developers like Apple (Nasdaq: AAPL) and Samsung are near-fanatical about costs and power consumption, developers have an incentive to make sure that no one company can re-establish anything like the "Wintel" dominance of old.

The Bottom Line
I do believe that Intel will be able to offset declines in the PC business with growth in the mobile business, but I struggle to see a scenario where Intel becomes a real growth company again. To that end, I'm comfortable with a long-term revenue growth target in the 3% to 4% range, and a free cash flow growth target of about 6% to 7%. With that, fair value would seem to be around $25.

I think a $25 fair value makes Intel a decent hold. There's certainly upside potential if the company does better than I expect in mobile, and shareholders can collect a decent dividend along the way. On the other hand, I'm not sure this is the stock to pick for major near-term capital gains potential.

Friday, August 16, 2013

Top 5 Medical Companies To Invest In Right Now

Mr. X might stop investing for his financial goals till the time he finds a new job but his regular expenses such as household Expense of Rs. 25,000 p.m., medical Expense of Rs. 5,000 p.m., child School Fees of Rs. 10,000 p.m. and EMI on home loan of Rs. 15,000 p.m. has to be met in any case. Cumulating these entire expenses he cannot avoid paying a sum of Rs. 55,000 p.m. and other regular expenses.

Therefore, you see a need arises to primarily have a contingency fund to confront such a situation and embarrassments. Typically a contingency fund consists of 6 to 24 months of regular expenses. This includes all necessary expenses, but can exclude luxuries.

Contingency Fund Requirement of Mr. X

Top 5 Medical Companies To Invest In Right Now: Uroplasty Inc (UPI)

Uroplasty, Inc., incorporated in January 1992, is a medical device company that develops, manufactures and markets products for the treatment of voiding dysfunctions. The Company�� primary focus is on two products: the Urgent PC Neuromodulation system and Macroplastique Implants. The Urgent PC system is a United States Food and Drug Administration (FDA)-approved minimally invasive, office-based neuromodulation therapy for the treatment of overactive bladder (OAB) and associated symptoms of urinary urgency, urinary frequency, and urge incontinence; and Macroplastique Implants a urethral bulking agent for the treatment of adult female stress urinary incontinence primarily due to intrinsic sphincter deficiency (ISD). Outside of the United States, the Company�� Urgent PC is also approved for treatment of fecal incontinence, and Macroplastique is also approved for treatment of male stress incontinence and vesicoureteral reflux.

Urgent PC Neuromodulation System

Using a small-gauge needle electrode inserted above the ankle, the Urgent PC System delivers electrical impulses to the tibial nerve that travel to the sacral nerve plexus, a control center for pelvic floor and bladder function. Components of the Urgent PC system include a hair-width needle electrode, a lead set, and an external, handheld, battery-powered stimulator. For each 30-minute, office-based therapy session, the physician or other qualified healthcare provider inserts the needle electrode in the patient�� lower leg and connects the electrode to the stimulator. Typically, a patient undergoes 12 consecutive weekly treatment sessions, with follow-up maintenance treatments as required to sustain the therapeutic effect. The Company has received regulatory clearances for sale of the Urgent PC system in the United States, Canada and Europe. It also has launched its second generation Urgent PC system.

Macroplastique

Macroplastique is designed to restore the patient�� urinary contine! nce immediately following treatment. Macroplastique is a soft-textured, permanent implant injected, under endoscopic visualization, around the urethra distal to the bladder neck. It is a composition of heat vulcanized, solid, soft, irregularly shaped polydimethylsiloxane (solid silicone elastomer) implants suspended in a biocompatible excretable carrier gel. Macroplastique does not degrade, is not absorbed into surrounding tissues and does not migrate from the implant site. The Company has sold Macroplastique for several urological indications in over 40 countries outside the United States.

Other Uroplasty Products

The Company markets outside of the United States minimally invasive products to address fecal incontinence. Its PTQ Implants offer minimally invasive, soft-textured permanent implant for treatment of fecal incontinence. The PTQ Implants are implanted circumferentially into the submucosa of the anal canal, creating a bulking and supportive effect similar to that of Macroplastique injection for the treatment of stress urinary incontinence. The PTQ is Conformite Europeenne (CE) marked and is sold outside the United States in various international markets. The Urgent PC is also CE marked and sold outside of the United States for the treatment of fecal incontinence. In addition to urological applications, the Company markets its tissue bulking material outside the United States for otolaryngology vocal cord rehabilitation applications under the trade name VOX Implants. In the Netherlands and the United Kingdom only, the Company distributes certain wound care products in accordance with a distributor agreement.

The Company competes with Pfizer Inc., Johnson and Johnson, Novartis, Allergan, GlaxoSmithKline, Carbon Medical Technologies, BioForm, Inc., Q-Med AB and Contura.

Top 5 Medical Companies To Invest In Right Now: Cannabis Science Inc (CBIS)

Cannabis Science, Inc., incorporated on May 4, 2007, is a development-stage company. The Company is engaged in the creation of cannabis-based medicines, both with and without psychoactive properties, to treats disease and the symptoms of disease, as well as for general health maintenance. On February 9, 2012, the Company acquired GGECO University, Inc. (GGECO). On March 21, 2012, the Company acquired Cannabis Consulting Inc. (CCI Group).

The Company is engaged in medical marijuana research and development. The Company works with world authorities on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce, and commercialize phytocannabinoid-based pharmaceutical products.

Top 10 Financial Stocks To Invest In 2014: Prima BioMed Ltd (PRR)

Prima BioMed Ltd is a biotechnology company is engaged in the development and commercialization of medical therapies with a focus on oncology. Its product candidates in development include Cvac, an autologous dendritic cell vaccine for ovarian cancer, monoclonal antibodies for multiple tumour types, and an oral formulation for the human papilloma virus (HPV), vaccine. Its product candidate Cvac is a dendritic cell therapy, for which it is conducting a Phase IIb trial for the treatment of ovarian cancer. Cvac is designed to target the tumour antigen mucin-1, which is expressed at high levels on different tumour types. It also has two preclinical product development programs. In May 2011, Prima BioMed GmbH, a 100 % owned subsidiary of Prima BioMed Ltd, was incorporated in Germany. In May 2011, Prima BioMed Middle East FZLLC, a 100 % owned subsidiary of Prima BioMed Ltd, was incorporated in the United Arab Emirates.

Top 5 Medical Companies To Invest In Right Now: Cell Therapeutics Inc (CTIC)

Cell Therapeutics, Inc. (CTI), incorporated in 1991, develops, acquires and commercializes treatments for cancer. The Company�� research, development, acquisition and in-licensing activities concentrate on identifying and developing new ways to treat cancer. As of December 31, 2011, CTI focused its efforts on Pixuvri (pixantrone dimaleate) (Pixuvri), OPAXIO (paclitaxel poliglumex) (OPAXIO), tosedostat, brostallicin and bisplatinates. As of December 31, 2011, it developed Pixuvri, an anthracycline derivative for the treatment of hematologic malignancies and solid tumors. Another late-stage drug candidate of the Company, OPAXIO, is being studied as a potential maintenance therapy for women with advanced stage ovarian cancer, who achieve a complete remission following first-line therapy with paclitaxel and carboplatin. As of December 31, 2011, it also developed tosedostat in collaboration with Chroma Therapeutics, Ltd. (Chroma). On May 31, 2012, CTI completed its acquisition gaining worldwide rights to S*BIO Pte Ltd.'s (S*BIO) pacritinib.

Pixuvri

As of December 31, 2011, the Company developed Pixuvri, an aza-anthracenedione derivative, for the treatment of non-Hodgkin�� lymphoma (NHL), and various other hematologic malignancies, and solid tumors. Pixuvri was studied in the Company�� EXTEND, or PIX301, clinical trial, which was a phase III single-agent trial of Pixuvri for patients with relapsed, refractory aggressive NHL who received two or more prior therapies and who were sensitive to treatment with anthracyclines. On September 28, 2011, CTI announced that a second independent radiology assessment of response and progression endpoint data from its PIX301 clinical trial of Pixuvri was achieved with statistical significance. The results of the EXTEND trial met its primary endpoint and showed that patients randomized to treatment with Pixuvri achieved a significantly higher rate of confirmed and unconfirmed complete response compared to patients treated with standard chem! otherapy had a significantly increased overall response rate and experienced a statistically significant improvement in median progression free survival. Pixuvri had predictable and manageable toxicities when administered at the proposed dose and schedule in the EXTEND clinical trial in heavily pre-treated patients. In March 2011, the Company initiated the PIX-R trial to study Pixuvri in combination with rituximab in patients with relapsed/refractory diffuse large B-cell lymphoma (DLBCL). Pixuvri has also been studied in patients with HER2-negative metastatic breast cancer who have tumor progression after at least two, but not more than three, prior chemotherapy regimens. In the second quarter of 2010, the NCCTG opened this phase II study for enrollment. The study is closed to accrual and results are expected to be reported by the NCCTG later in 2012.

OPAXIO

OPAXIO is the Company�� biologically-enhanced chemotherapeutic agent that links paclitaxel to a biodegradable polyglutamate polymer, resulting in a new chemical entity. As of December 31, 2011, the Company focused its development of OPAXIO on ovarian, brain, esophageal, head and neck cancer. OPAXIO was designed to improve the delivery of paclitaxel to tumor tissue while protecting normal tissue from toxic side effects. In November 2010, results were presented by the Brown University Oncology Group from a phase II trial of OPAXIO combined with temozolomide (TMZ), and radiotherapy in patients with newly-diagnosed, high-grade gliomas, a type of brain cancer. The trial demonstrated a high rate of complete and partial responses and a high rate of six month progression free survival (PFS). Based on these results, the Brown University Oncology Group has initiated a randomized, multicenter, phase II study of OPAXIO and standard radiotherapy versus TMZ and radiotherapy for newly diagnosed patients with glioblastoma with an active gene termed MGMT that reduces responsiveness to TMZ. A phase I/II study of OPAXIO combined with radi! otherapy ! and cisplatin was initiated by SUNY Upstate Medical University, in patients with locally advanced head and neck cancer.

Tosedostat

In March 2011, the Company entered into a co-development and license agreement with Chroma Therapeutics, Ltd. (Chroma), providing the Company with marketing and co-development rights to Chroma�� drug candidate, tosedostat, in North, Central and South America. Tosedostat is an oral, aminopeptidase inhibitor that has demonstrated anti-tumor responses in blood related cancers and solid tumors in phase I-II clinical trials. Interim results from the phase II OPAL study of tosedostat in elderly patients with relapsed or refractory acute myeloid leukemia (AML) showed that once-daily, oral doses of tosedostat had predictable and manageable toxicities and results demonstrated response rates, including a high-response rate among patients who received prior hypomethylating agents, which are used to treat myelodysplastic syndrome (MDS), a precursor of AML.

Brostallicin

As of December 31, 2011, the Company developed brostallicin through its wholly owned subsidiary, Systems Medicine LLC, which holds rights to use, develop, import and export brostallicin. Brostallicin is a synthetic deoxyribonucleic acid (DNA) minor groove binding agent that has demonstrated anti-tumor activity and a favorable safety profile in clinical trials, in which more than 230 patients have been treated as of December 31, 2011. The Company uses a genomic-based platform to guide the development of brostallicin. A phase II study of brostallicin in relapsed, refractory soft tissue sarcoma met its predefined activity and safety hurdles and resulted in a first-line phase II clinical trial study that was conducted by the European Organization for Research and Treatment of Cancer (EORTC).

The Company competes with Bristol-Myers Squibb Company, Sanofi-Aventis, Pfizer, Roche Group, Genentech, Inc., Astellas Pharma, Eli Lilly and Company, Celgene, Telik, I! nc., TEVA! Pharmaceuticals Industries Ltd. and PharmaMar.

Top 5 Medical Companies To Invest In Right Now: Navidea Biopharmaceuticals Inc (NAVB.A)

Navidea Biopharmaceuticals, Inc. (Navidea), formerly Neoprobe Corporation, incorporated in 1983, is a biopharmaceutical company focused on the development and commercialization of precision diagnostic agents. As of December 31, 2011, the Company�� radiopharmaceutical development programs included Lymphoseek (Lymphoseek, Kit for the Preparation of Technetium Tc99m for Injection), a radiopharmaceutical agent for lymph node mapping; AZD4694, an imaging agent, and RIGScan, a tumor antigen-specific targeting agent. In January 2012, the Company executed an option agreement with Alseres Pharmaceuticals, Inc. (Alseres) to license [123I]-E-IACFT Injection, also called Altropane, an Iodine-123 radiolabeled imaging agent, being developed as an aid in the diagnosis of Parkinson�� disease, movement disorders and dementia. In August 2011, the Company sold its gamma detection device line of business (the GDS Business) to Devicor Medical Products, Inc.

Lymphoseek

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Navidea�� pipeline includes clinical-stage radiopharmaceutical agents used to identify the presence and status of disease. Lymphoseek (Kit for the Preparation of Technetium Tc99m for Injection) is a lymph node targeting agent intended for use in intraoperative lymphatic mapping (ILM) procedures and lymphoscintigraphy employed in the overall diagnostic assessment of certain solid tumor cancers. The lymph system is a component of the body�� immune system. The key components of the lymph system are lymph nodes-small anatomic structures that contain disease-fighting lymphocytes, filter lymph of bacteria and cancer cells, and signal infection in response to heightened levels of pathogens. In Navidea�� Phase III clinical studies of Lymphoseek, it detected over 99% of positive nodes identified by vital blue dye (VBD). As of December 31, 2011, Navidea, in co-operation with UC, San Diego affiliate (UCSD), completed or initiated five Phase I clinical trials, one multi-c enter Phase II trial and three multi-center Phase II trial! s ! involving Lymphoseek. Two Phase III studies were completed in subjects with breast cancer and melanoma. During the year ended December 31, 2011, data from NEO3-09 were released, which indicated that all primary and secondary endpoints for the study were met. As of December 31, 2011, third Phase III clinical trial for Lymphoseek in subjects with head and neck squamous cell carcinoma (NEO3-06) was in progress.

AZD4694

AZD4694 is a Fluorine-18 labeled precision radiopharmaceutical candidate for use in the imaging and evaluation of patients with signs or symptoms of cognitive impairment such as Alzheimer's disease (AD). It binds to beta-amyloid deposits in the brain that can then be imaged in positron emission tomography (PET) scans. Amyloid plaque pathology is a required feature of AD and the presence of amyloid pathology is a supportive feature for diagnosis of probable AD. Patients who are negative for amyloid pathology do not have AD. AZD4694 has b een studied in several clinical trials. Clinical studies through Phase IIa have included more than 80 patients to date, both suspected AD patients and healthy volunteers. No significant adverse events have been observed. Results suggest that AZD4694 has the ability to image patients quickly and safely with high sensitivity.

RadioImmunoGuided Surgery

As of December 31, 2011, RIGScan had been studied in a number of clinical trials, including Phase III studies. Navidea has conducted two Phase III studies, NEO2-13 and NEO2-14, of RIGScan in patients with primary and metastatic colorectal cancer, respectively. Both studies were multi-institutional involving cancer treatment institutions in the United States, Israel, and the European Union.

The Company competes with Pharmalucence, Eli Lilly, Bayer Schering, General Electric and GE Healthcare.

Thursday, August 15, 2013

Joel Greenblatt’s Top Fourth-Quarter Magic Formula Stocks

Joel Greenblatt is founder of Gotham Capital and the pioneer of Magic Formula investing. He developed the Magic Formula as a numbers-based, unemotional way for individual investors to beat the market over the long term. It is based on the following principles: · Buy a good business cheap like Ben Graham (figure out what it's worth and pay a lot less).

· Look at free cash flow to the price we're paying.

· Look at returns on tangible capital to judge how good it is (get best combo of cheap and good).

· Hold for one year.

Typically the stocks that meet the criteria are brutally hated by the market or have low expectations for the next several years. His top three new stock picks for his Magic Formula Portfolio for the fourth quarter are: Azz Inc. (AZZ), Primoris Services (PRIM) and Caribou Coffee (CBOU).

Azz Inc. (AZZ)

Fort Worth-based Azz Inc. (AZZ) makes electronic equipment and tubular products and provides galvanizing services. Greenblatt bought 19,515 shares of the company at an average of $43 per share in the fourth quarter.

Azz has generated strong cash flow over the last 10 years, with two slightly down years. It grew its revenue at a 10-year rate of 10.9 percent, EBITDA at 22.9 percent, and book value at 17.2 percent. In the last five years it grew cash flow at a rate of 11 percent. Its return on equity has been in the double digits since 2007 and return on assets has been declining for the last four years.

The company's stock price fell to 52-week lows in the fourth quarter, but began to turn around when the company announced its fourth-quarter financial results. Its net sales had increased to $345.5 million in the first nine months of the year from $280 million in the same period last year. Net sales increased in both its electrical and industrial products and its galvanizing services segments after its electrical and industrial products segment revenue had decreased 20 percent for the full year ended February 2011.!

The company's future prospects will be influenced by the expansion of the solar industry. "I anticipate an overall growth rate of 2 to 3 percent in the coming year. The solar market was and remains the driving force for growth in 2011, and is projected to remain a significant player through 2016," said Tim Pendley, senior vice president and chief operating officer with AZZ Inc.

Azz's P/E, P/S and P/B ratios:

AZZ pe,ps,pb Interactive Chart

Primoris Services (PRIM)

Primoris is a contractor and infrastructure company founded in 1946. It provides services related to construction fabrication, maintenance, replacement, water and wastewater and engineering to clients that are typically major public utilities, petrochemical companies, energy companies, municipalities and others. It doubled its size in 2009 and 2010 when it purchased the James Construction Group and Rockford Corporation, respectively. Primoris' predecessor company, Rhapsody acquisition Corp., had its IPO in 2006, and Primoris merged with Rhapsody in 2008.

Joel Greenblatt bought 59,076 shares at an average price of $13.56 in the fourth quarter. After being relatively flat since its IPO, Primoris' stock price began to rise dramatically in 2011, and Greenblatt bought on a dip in the fourth quarter. In the last year it has appreciated 87 percent.

Primoris' free cash flow and revenue in 2010 bounced back from a down year in 2009 and EBITDA grew each year in the same span of time. Return on equity and return on assets have both declined over the three years, but in the third quarter of 2011 came back strongly. ROE increased to 29.3 percent from 16.1 at year-end 2010, and ROA has increased to 11.4 percent from 4.8 percent at year-end 2010.

The third quarter was good in other ways. The company reached its highest revenue and net income in its 60-year history. However, fluctuations in revenue and earnings may occur over the next several quarters as it completes several major project! s. On Nov! ember 30, it announced $181 million in new contracts.

Primoris' P/E, P/S and P/B ratios:

PRIM pe,ps,pb Interactive Chart

Caribou Coffee (CBOU)

Caribou Coffee is a gourmet coffee company that owns the second-largest number of coffeehouses in the U.S. After rising significantly in the second quarter of 2011, its stock price dropped in the fourth quarter, when Joel Greenblatt purchased it. He bought 52,794 shares at an average price of $13.27.

The company has increased revenue and EBITDA almost every year since 2005, reaching $284 million and $22.4 million, respectively, in 2010. Its return on equity and return on assets also turned positive in 2009 and increased in 2010; return on assets increased from 10.1 percent in 2009 to 15 percent in 2010, and return on assets increased 6 percent to 9.2 percent in 2010. Free cash flow, which Greenblatt typically considers highly important, has been positive only two years since 2005, in 2008 and 2009.

Cofeehouse sales have increased for the last eight quarters, including 4.1 percent in the quarter ended Oct. 2, 2011. Much of the company's sales growth has come because it has begun selling food.

The outlook for Caribou's growth is also positive. Daily coffee consumption increased to 40 percent of 18-24 year olds in 2011 from 31 percent of the age group in 2010, returning to its 2009 level, according to the National Coffee Drinking Study from the National Coffee Association. Caribou recently began growing as well. In the third quarter of 2011, it opened three company-owned stores, its first in over three years, and in the fourth quarter, it opened five more. For 2012, it plans to open 55 to 70 new locations and issued fiscal year 2012 net sales growth guidance of 10 percent.

Caribou's P/E, P/S and P/B ratios:

CBOU pe,ps,pb Interactive Chart

See Joel Greenblatt's portfolio here and also check out the Undervalued Stocks, Top Growth Companies, and High Yield stocks of Joel Greenblatt.
Best Performing Stocks To Own For 2014

Related links:AZZ pe,ps,pb Interactive ChartPRIM pe,ps,pb Interactive ChartCBOU pe,ps,pb Interactive ChartJoel GreenblattStrong cash flow over the last 10 years, with two slightly down yearsFree cash flow and revenue in 2010 bounced back from a down year in 2009Increased revenue and EBITDA almost every year since 2005Joel Greenblatt's portfolio hereUndervalued StocksTop Growth CompaniesHigh Yield stocks

Sunday, August 11, 2013

Top 10 Tech Companies To Own For 2014


General Motors Headquarters. Courtesy of GM media photos.

General Motors (NYSE: GM  ) lags behind its crosstown rival Ford (NYSE: F  ) in one major aspect: profitability. Despite being far ahead in global sales, GM couldn't top Ford's bottom-line income during its first-quarter report. That's mainly because Ford has worked tirelessly on fixing its bottom line by cutting costs in its global operations ��and it's worked extremely well. GM is taking notes on Ford's success and has recently unveiled a state of the art $130 million data center that will be an information technology system to base its global decisions on. GM believes it will give the company what it needs to work faster and smarter to improve vehicle quality and profits. Let's look at why investors are excited and how much this could bring to GM's bottom line.

Top 10 Tech Companies To Own For 2014: Technical Communications Corporation(TCCO)

Technical Communications Corporation designs, develops, manufactures, distributes, markets, and sells communication security devices and systems worldwide. Its products are used to protect confidentiality in communications between radios, telephones, facsimile machines, and data processing equipment over wires, fiber optic cables, radio waves, and microwaves and satellite links. The company?s products include High Speed Data Encryptor, which provides cryptographic security for data networks operating at up to 34 million bits per second; Narrowband Radio Security family of products that offer security for voice and data communications sent over HF, VHF, and UHF channels; and Secure Telephone, Fax, and Data systems, which provide voice, fax, and data encryption in a telephone package. It also offers Secure Portable Telephone Attachment that provides digital security between telephone and handset; Fax Security System, an automatic transmission fax system, which connects to f acsimile machine; Executive Secure Telephone that offers voice and data security in a telephone package; and CipherTalk8000 and CipherSMS secure wireless product to provide encrypted mobile communications. In addition, the company offers CipherONE family of network security systems, which consist of hardware and software-based encryption products for local area network, wide area network, and Internet applications, as well as a network security management system. Further, it provides Frame Relay Network Encryptor; IP Network Encryptor for encryption security at the Internet protocol layer; and KEYNET Network Security Management System, a Windows NT-based key and security device management system. The company markets its products to governmental agencies, law enforcement agencies, financial institutions, and multinational companies requiring protection of mission-critical information. Technical Communications Corporation was founded in 1961 and is based in Concord, Massachuse tts.

Top 10 Tech Companies To Own For 2014: Usa Video Interactive Crp (US.V)

Oculus Visiontech Inc. engages in the design and marketing of digital watermarking, and streaming video and video-on-demand systems and services to business customers. It also offers source-to-destination digital media delivery solutions that allow live or recorded digitized and compressed video to be transmitted through Internet, intranet, satellite, or wireless connectivity. The company�s systems, services, and delivery solutions include digital watermark solutions and video content production, content encoding, media asset management, media and application hosting, multi-mode content distribution, transaction data capture and reporting, e-commerce, specialized engineering services, and Internet streaming hardware. Its products and services comprise MediaSentinel, a digital watermarking technology used to deter piracy of digital content; SmartMarks, which are invisible, unremovable, forensic digital watermarks imbedded in various video frames to protect digital video fr om piracy; StreamHQ, a collection of source-to-destination media delivery services; EncodeHQ, a service that digitizes and compresses analog-source video; hardware server and encoder system applications under the brand name of Hurricane Mediacaster; Zmail, a Web and media content delivery service to targeted audiences; and mediaClix, a service that delivers content similar to Zmail, originating from an existing Web presence. The company was formerly known as USA Video Interactive Corp. and changed its name to Oculus Visiontech Inc. in January 2012. Oculus Visiontech Inc. was founded in 1986 and is headquartered in Vancouver, Canada.

Top 10 Canadian Companies To Own In Right Now: iPass Inc.(IPAS)

iPass Inc. provides enterprise mobility services primarily in the United states, Europe, the Middle East, Africa, and the Asia Pacific. The company offers enterprise mobility services to manage mobility economics, high speed network connectivity, and proliferation of employee-liable mobile devices. Its enterprise mobility services include cost analysis, reporting, and policy compliance management tools; and Wi-Fi network access to enterprise customers. The company provides Mobile Connect, a service that collects and transmits usage data and statistics from the mobile device; Mobile Insight to report and analyze mobile usage across networks, connections, and devices; Mobile Control, a policy enforcement service; Mobile Office, which delivers 3G mobile data, Wi-Fi hotspot, wired broadband, and dial-up access services; and Mobile Network that provides broadband and dial-up network coverage. It also offers Carrier Wi-Fi enablement services that provide mobile network operators , telecommunication carriers, and service provider partners with the infrastructure to both address their network infrastructure costs and service capabilities, as well as to offer their subscribers global revenue-generating Wi-Fi based mobility services. In addition, the company provides managed network services (MNS) that offer wireline and wireless VPN connectivity services to branch locations of enterprises, retail stores, and financial institutions. Its MNS products comprise MultiLink VPN, a managed Internet-based IP VPN wide area networking service; Branch/Retail VPN that allow for various customer design requirements, backup to MPLS networks, or a hybrid MultiLink/Branch VPN network; and managed Wi-Fi services. iPass Inc. offers its services worldwide directly through its sales force; and through network service providers, telecommunications carriers, systems integrators, and value added resellers. The company was founded in 1996 and is headquartered in Redwood Shores , California.

Top 10 Tech Companies To Own For 2014: National Instruments Corporation(NATI)

National Instruments Corporation designs, manufactures, and sells measurement and automation products to create virtual instrumentation systems for general, commercial, industrial, and scientific applications worldwide. The company sells or licenses application software and modular hardware that combines with industry-standard computers, networks, and third party devices to create measurement, automation, and embedded systems. Its system design software products include LabVIEW to design custom virtual instruments for scientists and engineers and provide data analysis, visualization, and sharing features; LabVIEW Real-Time and LabVIEW FPGA, which are modular software add-ons enabling users to configure their application programs and to build custom hardware devices for measurement or control protocols. The company also offers LabWindows/CVI programming environment for creating test and control applications; and Measurement Studio, which consists of measurement and automati on add-on libraries and additional tools for programmers. Its application software products include NI TestStand, a test management environment; NI VeriStand, a ready-to-use software environment; NI DIAdem that offers configuration-based technical data management, analysis, and report generation tools; and NI Multisim, which offers circuit design technology. In addition, the company provides hardware products and related driver software comprising data acquisition hardware/driver software, PXI modular instrumentation platform, modular instruments, machine vision/image acquisition, motion control, NI RIO hardware platform, industrial communications interfaces, GPIB interfaces/driver software, and VXI controllers/driver software. Further, it offers system configuration and deployment, calibration, warranty and repair, and customer training services, as well as software maintenance and technical support. National Instruments Corporation was founded in 1976 and is headquartered in Austin, Texas.

Top 10 Tech Companies To Own For 2014: Clearwire Corporation(CLWR)

Clearwire Corporation, through its subsidiaries, provides fourth generation wireless broadband services in the United States. The company builds and operates mobile broadband networks that offer high-speed mobile Internet and residential Internet access services. It serves retail customers through its CLEAR brand. The company markets its products and services directly to consumers, as well as through cellular retailers, consumer electronics stores, satellite television dealers, and computer sales and repair stores; and through company-operated retail outlets. As of December 31, 2011, it had approximately 1.3 million retail and 9.1 million wholesale subscribers. The company is headquartered in Bellevue, Washington. Clearwire Corporation is a subsidiary of Sprint HoldCo LLC.

Top 10 Tech Companies To Own For 2014: Maxwell Technologies Inc.(MXWL)

Maxwell Technologies, Inc., together with its subsidiaries, develops, manufactures, and markets energy storage and power delivery products, and microelectronic products worldwide. The company offers Ultracapacitors that are energy storage devices to provide energy storage and power delivery solutions for applications in transportation, automotive, information technology, renewable energy, and industrial electronics industries; and CONDIS high-voltage capacitors comprising grading and coupling capacitors, and capacitive voltage dividers used to ensure the safety and reliability of electric utility infrastructure and other applications involving transport, distribution, and measurement of high-voltage electrical energy. It also provides radiation-hardened microelectronic products, including single board computers and components, such as high-density memory and power modules for satellites and spacecraft applications. The company markets and sells its products through direct and indirect sales for integration by original equipment manufacturers into a range of end products. The company was formerly known as Maxwell Laboratories, Inc. and changed its name to Maxwell Technologies, Inc. in 1996. Maxwell Technologies was founded in 1965 and is headquartered in San Diego, California.

Advisors' Opinion:
  • [By Roberto Pedone]

    My final breakout idea today is Maxwell Technologies (MXWL), which develops, manufactures and markets energy storage and power delivery products for transportation, industrialtelecommunications and other applications, as well as microelectronic products for space and satellite applications. This stock has been under pressure by the sellers so far in 2013, with shares off by 22%.

    If you look at the chart for Maxwell Technologies, you'll notice that this stock has been uptrending strong for the last month and change, with shares soaring higher from its low of $4.90 to its recent high of $6.75 a share. During that uptrend, shares of MXWL have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of MXWL within range of triggering a near-term breakout trade.

    Traders should now look for long-biased trades in MXWL if it manages to break out above some near-term overhead resistance at $6.75 a share with high volume. Look for a sustained move or close above that level with volume that registers near or above its three-month average action of 474,995 shares. If that breakout triggers soon, then MXWL will set up to re-fill some of its previous gap down zone from March that started at $7.80 a share. Any high-volume move above $7.80 will then put $8.50 to $9 into range for shares of MXWL.

    Traders can look to buy MXWL off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $6.23 a share or near $6 a share. One could also buy MXWL off strength once it clears $6.75 a share with volume and then simply use a stop right below its 50-day at $6.23 a share.

  • [By Tom Konrad]

    Maxwell Technologies is a leading manufacturer of electrodes for ultracapacitors.  Ultracapacitors are electricity storage devices which excel in applications requiring high power but low energy and extremely long life.  In layman's terms, they pack a big punch, but have little staying power.  They pair well with batteries, which are best in low power, high energy applications.

    Ultracapacitors are used in a wide variety of electronics and electricity transmission and distribution applications, as well as in wind turbines and heavy-duty hybrid vehicles, such as buses. They expect to have a large and growing market in "stop-start" hybrid cars.  Stop-start technology is one of the most cost effective measures for improving automotive fuel economy, and auto manufacturers are scrambling to meet increasingly stringent fuel economy standards in both the US and Europe.  

    The main reason for Maxwell's current low price has been the lack of a design win with a major manufacturer for start-stop technology using Maxwell's ultracapacitors.  Many investors were anticipating such a win in 2012, and the lack of one so far and slower revenue growth overall led to extreme investor disappointment, driving the stock from over $21 at the start of the year to the low $8 range where it has been recently trading.  Maxwell insiders, including the CEO, David Schramm, have been demonstrating their faith in the company's prospects since the stock fell to $10 with large stock purchases.  They have acquired 128,400 shares since then.

Top 10 Tech Companies To Own For 2014: Radware Ltd.(RDWR)

Radware Ltd. provides application delivery solutions and network security solutions to banks, insurance companies, manufacturing and retail, government agencies, media companies, and service providers worldwide. The company offers AppDirector Intelligent Application Delivery Controller for data center optimization and to eliminate traffic surges, server bottlenecks, connectivity disconnects, and downtime for business continuity; and Alteon Application Switch application delivery controller that supports local, global, and transparent load-balance, multi-homing network load-balance, and bandwidth management capabilities. It also provides AppXML, which offers XML and Web services communications for mission-critical applications; AppWall, a Web application firewall (WAF) appliance that secures Web applications; LinkProof that manages wide area networks and Internet traffic for networks; Content Inspection Director, a smart redirection and dynamic policy enforcement device to meet contemporary carrier needs; and Session Initiation Protocol Director, an application delivery controller for application vendors, telecom equipment manufacturers, and system integrators. In addition, the company offers DefensePro Intrusion Prevention and Denial of Service products that protect against worms, bots, viruses, malicious intrusions, and DOS attacks; Inflight, a hardware device that provides online and network-based monitoring solutions; and APSolute Vision, an appliance-based management and monitoring system for information technology staff to centrally manage distributed devices and check the performance and security of enterprise wide application delivery infrastructures. It markets and sells its products primarily through distributors and resellers in North America, Europe, and Asia, as well as directly to select customers in the United States. Radware Ltd. was founded in 1996 and is headquartered in Tel Aviv, Israel.

Top 10 Tech Companies To Own For 2014: 01 Communique Lab Com Npv(ONE.TO)

01 Communique Laboratory Inc. develops and markets remote access solutions primarily in the United States, Canada, and Japan. The company markets its remote access solutions under I'm InTouch, I'm OnCall, and I'm InTouch Meeting product lines. The company?s I'm InTouch provides users to access and/or remotely control their desktop personal computer (PC) from anywhere, by using virtually any device connected to the Internet, as well as helps to run programs, transfer and manage files, work with wireless email, contact management, and online calendar events. It offers I'm InTouch solution to individuals, small businesses, and workgroups within a larger corporation. The company?s I'm OnCall, a Web-based remote support solution, enables help desk personnel to support their customers through on-demand PC remote control and helps organizations to offer remote PC support over the Internet to their customers. It provides I'm OnCall solution to smaller value added resellers and o ther support organizations. The company?s I?m InTouch Meeting, a Web-based service, enables users to conduct online meetings by inviting up to 15 attendees to join the meeting through desktop PC?s. 01 Communique Laboratory also offers various voicemail and fax software products under its COMMUNICATE product line; I'm InTouch SecurePC that helps to prevent the loss of data; and I'm InTouch SecureKEY to prevent unauthorized access of workstation. The company distributes its products through online, retail outlets, OEM partners, and value added resellers. 01 Communique Laboratory Inc. was founded in 1992 and is headquartered in Mississauga, Canada.

Top 10 Tech Companies To Own For 2014: Electrovaya Inc Com Npv (EFL.TO)

Electrovaya Inc., together with its subsidiaries, engages in the design, development, manufacture, and marketing of batteries, battery systems, and battery-related products for the electric transportation, utility scale energy storage and smart grid power, consumer, and healthcare markets in Canada. It develops portable power technology products using its Lithium Ion SuperPolymer technology. The company offers battery systems for plug in hybrid electric vehicles, electric vehicles, and two-wheel vehicles, as well as for commercial truck and offroad applications; and PowerPad series of batteries for notebook computers and other mobile applications, as well as Scribble Tablet PC products for the health care industry. It also provides cells and battery modules; and intelligent battery management systems for automotive, utility-scale, and other integrated systems. The company was formerly known as Electrofuel Inc. and changed its name to Electrovaya Inc. in March 2002. Electro vaya Inc. was founded in 1996 and is headquartered in Mississauga, Canada.

Top 10 Tech Companies To Own For 2014: Kyocera Corporation(KYO)

Kyocera Corporation develops, produces, and distributes ceramic, semiconductor, and electronic products for the information and communications markets, and environment and energy markets worldwide. The company offers thin ceramic based substrates; thin-film ceramic/alumina tape substrates; sapphire substrates; automobiles engine components; mechanical seals; and thread guides for yarn texturing machines; rings for fishing rods and nozzles; and papermaking machinery parts. It also provides various ceramic packages and components and LSI ceramic packages. In addition, the company offers solar energy products, cutting tools, medical and dental implants, and jewelry products and applied ceramic related products. Further, it provides miniature ceramic capacitors, tantalum capacitors, RF modules, and miniature timing devices; and connectors primarily for digital consumer equipment; thin-film products comprising thermal printheads, amorphous silicon photoreceptor drums, and LCDs for office automation equipment and industrial equipment; organic flip-chip packages for application specific integrated circuits; and system in a package substrates for mobile phone handsets. Additionally, the company offers base stations, terminals, and PHS mobile phone handsets; page printers, copying machines, and peripherals; electronic insulation materials and molded products; data center services for mobile phone content distribution services; and management consulting services, as well as involves in the telecommunications engineering business ranging from system development to design, construction, and maintenance services; and IT solutions business, that comprises network and system integration solutions. It distributes its products through its sales personnel and independent distributors. The company was formerly known as Kyoto Ceramic Kabushiki Kaisha and changed its name to Kyocera Corporation in 1982. Kyocera Corporation was founded in 1959 and is headquartered in Kyoto, Japan.

Advisors' Opinion:
  • [By Paul Goodwin]

    Kyocera (KYO: 93.20, -0.80, -0.85%) makes products as different from each other as kitchen knives and dental implants. Most of its income comes from industrial ceramics, electronics components and telecom and networking equipment. Sales in recent quarters have increased by one-third on strong demand for consumer electronics, industrial equipment, cars and solar panels. According to Masaru Koshita of Barclay's Capital, who lifted his opinion of the shares to "overweight" from "equal weight" in early March, margins have greatly improved in the company's core businesses with the notable exceptions of telecom equipment and MLCCs, or multi-layer ceramic capacitors. Koshit a expects a return to profitability by year's end in the former business and a restructuring of the latter, both of which could give the stock a lift.

Friday, August 9, 2013

Novo Nordisk Getting Its Trial By Fire

Top 10 Growth Stocks To Invest In 2014

The past year or so has shown that Novo Nordisk (NYSE:NVO) isn't immune from seeing some serious challenges to its business. Between a serious setback in its insulin development program and nagging worries about incretins, 2013 isn't going to go down as a great year in the history of Novo Noridsk. All of that said, I have little doubt that the company will continue to be an uncommonly strong pharma company, with huge leverage to one of the fastest-growing diseases in the world. Although I think broadening both the diabetes business and the overall business would be beneficial, Novo Nordisk really doesn't have to do much to continue performing at a high level.

Q2 Earnings – Not All They're Cracked Up To Be
Although it seems like a fair number of sell-side analysts have gotten themselves excited about Novo Nordisk's second quarter results, I don't think they're all that strong on balance.

Revenue did grow 10% from last year, and that was good for a 2% beat relative to expectations. The problem, though, is that growth would have been more on the order of 8% were it not for some rebate reversals and the timing of tenders. That would have still made for a good quarter, but I think investors should note that pretty much all of the upside this quarter was driven by those factors and the underlying business was more or less in line.

SEE: Earnings: Quality Means Everything

Gross margin improved about 70bp as reported, and operating income rose 12%, or almost 7% more than expected. Again, though, those rebate reversals went straight through to profits, so this isn't evidence of strong underlying profit improvements.

The Diabetes Franchise Continue To Grow Like A Champ
Diabetes revenue rose 11% this quarter, and the growth would have still been impressive after netting out the aforementioned benefits. The company's analog insulin business continues to grow at a double-digit clip (up 12%), while Victoza grew 26% and seems to be losing no momentum to Bristol-Myers (NYSE:BMY)/AstraZeneca's (NYSE:AZN) Bydureon.

Better still, the threats to this business seem to be slowly fading away. Biosimilar analog insulin has proven a great deal more challenging than previously thought, with Teva (Nasdaq:TEVA) and Lonza recently dissolving their four-year partnership to develop such a product. Add that to similar past decisions from Actavis (NYSE:ACT) and Pfizer (NYSE:PFE), and biosimilar insulin is looking less and les of a clear and present danger to Novo Nordisk (as well as its rivals Sanofi (NYSE:SNY) and Lilly (NYSE:LLY).

That should give the company more breathing room as well. Management has announced that it intends to begin a 7,500-patient CV outcomes study on Tresiba later this year, which would conceivably have the company re-filing for FDA approval before the end of 2016. That is not great news, particularly with the data on Sanofi's new U300 insulin at the recent ADA meeting, but it would look a lot worse if biosimilar Levemir and NovoRapid were close at hand.

I still do wonder, though, if Novo Nordisk shouldn't broaden its horizons a bit. The insulin business is a cash-generating fortress and Victoza is still growing well, but there are persistent safety concerns about incretins like Victoza and perhaps the company would do well to add an SGLT-1/2 compound to its portfolio and/or expand its earlier-stage research on non-insulin diabetes treatments.

SEE: Evaluating Pharmaceutical Companies

Will Victoza Gain Any Traction In Obesity?
Although Novo Nordisk did announce that an oral GLP-1 drug is moving into Phase II testing, there aren't likely to be a lot of near-term positive news events other than a launch of Victoza as an obesity treatment. Some will scoff at the idea that a drug that has to be injected daily could get any traction in the market, but I think the needle isn't the problem. Given the efficacy that Victoza has shown, I believe people would use it. The problem is the price – at $20 a day, I'm not sure the benefits are compelling enough for the drug to get wide acceptance, though some analysts are still projecting $1 billion or more in sales from this indication.

The Bottom Line
Complaining about Novo Nordisk's valuation is like complaining about the heat in summertime – it may be true, but it's not going to change anything. Low teens free cash flow growth is good for a fair value around $160, but Wall Street has long showed that it is willing to assign a lower discount rate to Novo Nordisk's cash flow than I deem attractive. Given the underlying growth, Novo Nordisk isn't a bad pick in an expensive sector, but investors should understand that Wall Street's positive bias toward the company will mean that any disappointments or bad news will be punished harshly.

Disclosure – At the time of writing, the author did not own shares of any company mentioned in this article.

Thursday, August 8, 2013

A Day In The Life Of A System Trader

Top 5 Gold Stocks To Watch For 2014

Traders participate in the financial markets through the frequent buying and selling of stocks, futures, forex and other securities, and are often categorized into two broad groups: discretionary and system. Discretionary traders are decision-based traders who scan the markets and place manual orders in response to information that is available at that time. System traders, in contrast, are rules-based traders who use some level of automation to employ an objective set of rules, allowing a computer to both scan for trading opportunities and handle the order entry activity. Here, we explain system trading and describe a typical day in the life of a system trader.

System Trading
System traders either employ proprietary black box trading strategies, or design and test their own systems that are designed to execute trades automatically. Black box systems utilize pre-programmed logic to generate and act upon buy and sell signals. Users cannot view the system's code, but do have access to historical performance reports and may be able to adjust certain inputs to fine tune the product. High frequency traders (HFT), who today account for about half of stock trades in the U.S., are system traders who employ sophisticated automated trading systems to exploit market inefficiencies and place hundreds of trades each session.

Traders who build systems from scratch begin with an idea and complete a process that includes backtesting, optimizing and forward testing to develop a viable system that is ready to be put in a live market. In the case of both black box and custom systems, traders rely on some prior performance to gauge how best to use the system.

Both black box and custom trading systems use the computer to scan for trading opportunities and place and manage trades. As a result, system trading offers many advantages including: Minimized Emotions - Since the computer handles the trading activity, the trader cannot overtrade or second guess trading signals. Consistency - A big challenge traders face is to "plan the trade and trade the plan." A trading system could be very profitable, but if the trader is unable to stick to the plan, it can quickly become a losing system. Automated trading systems enable traders to achieve greater consistency by acting on every trading signal. Improved Speed and Accuracy - Computers are faster and more accurate than humans and can respond immediately to changing market conditions. For traders, and especially very short-term traders, a second can mean the difference between a win and a loss. Computers also eliminate the risk that an order will be entered into the market erroneously or incorrectly. Diversity - Automated trading systems allow the user to trade multiple accounts, strategies and instruments at the same time, providing diversity that can help spread risk. What would be impossible for a human to accomplish is easily handled by a computer in a matter of milliseconds. Before the Trading Session
Before the trading session begins, system traders are busy checking the technical components of their trading systems (note: for U.S. equities markets, the session begins at 9:30 a.m. EST; other markets trade round-the-clock, and the "trading session" could be any time at all depending on the chosen market). System traders rely on computers and software to scan the markets and place orders, so it is vital that every piece of technology - be it hardware or software - is working perfectly. As a result, before each session system traders will check: Computers and peripherals (monitor, keyboard, mouse) Trading platforms and order entry interfaces Trading system code - the computer program that monitors and places trades Connectivity - power, telephone, Internet, broker, exchange If everything checks out, system traders continue to prepare for the trading session, readying their trading platforms by: Opening the platform and order entry interface Loading workspaces and charts, with the correct symbol and timeframe Applying any technical indicators or other trading tools onto the charts Enabling the automated strategy that will monitor the markets and execute the trades During the Trading Session
With all systems go, the trader now monitors the markets, watches the news and waits for their computer to start trading. While the trader sends a quick "hello" to members of a trader chat room, the trading platform sends an audio alert stating "ORDER FILLED!" to signal that a trade has been entered. As the trader's attention moves to this trade, a second "ORDER FILLED!" alert lets the trader know another position in a different symbol has been entered. The trader sits up straight and scrutinizes the profit/loss ratio (P/L) that appears in the order management window. Game on.

In two positions now, the trader watches to see if the trades will reach their goals. The first trade comes within one tick of reaching its profit target only to fall back. Rather than closing out the position for fear of it turning into a loss, the trader trusts the system and lets the trade play out. Eventually, price rebounds and the trade is automatically closed at its target price.

The second position remains open, and the trader continues to monitor the P/L. Glancing away to view a market news headline, the trader finally hears the "PROFIT TARGET FILLED!" alert to signal that one contract has been taken off for a profit. At this point, the second contract will be at least breakeven, and the system will use a trailing stop to try to maximize profits by catching a trend. Just as this trade is closed at a small profit, the trader hears the "ORDER FILLED!" message once again, alerting that a third position has been entered. The system trader continues to supervise the trading activity throughout the session, keeping an eye on the open positions and monitoring the automated strategies.

After the Trading Session
At the end of the trading session, the system trader reviews the day's trades, making sure that all positions were executed according to the system's logic. The trader looks at the day's P/L, and knows that a net win or loss today isn't important, so he or she neither celebrates a gain nor cries over a loss. The system trader knows that it's what happens over time that matters.

Next, the trader reviews the system's performance metrics to evaluate how the system has done this week, this month and this year, making note of any significant deviations from how the system should perform (its expectancy). The performance report includes an equity curve that shows how the system has performed – as a dollar amount – over time. The system trader always keeps an eye on this metric, since unusually large drawdowns could signal that the system is no longer working and needs to be revised or scrapped altogether.

Homework
After taking a long break to get some exercise (healthy body, healthy mind!), the trader returns to the office to research a new trading idea, writing the code and backtesting the idea on historical data. Showing promise, the trader performs optimizations to improve the results, being careful not to over-optimize or curve-fit the system. If the idea still shows promise, the trader will continue the process of testing: backtesting on in- and out-of sample data, and forward performance testing (often called paper trading). In this way, the trader can find out if the system works only on a limited amount of data (the historical price data on which it was backtested), or if it will be profitable in a live market.

The Bottom Line
System trading is a rules-based trading methodology in which traders rely on computers to monitor the markets for trading opportunities and execute trade orders. This strategy automation boasts many benefits, including the ability to minimize or remove emotions, improve order entry speed and precision, and the option to spread risk over multiple instruments.

Each day, systems traders may divide their time between actual trading – monitoring the system in the markets and system development – developing, backtesting, optimizing and forward testing to create viable and high-probability trading systems.

Wednesday, August 7, 2013

Best Casino Stocks To Own For 2014

When one thinks of gambling "sin stocks," one ordinarily thinks about large casino stocks. But casino resorts are what they are in part due to the availability of gambling related machines and hardware. I am going to look at a few of the leading companies in that industry today.

WMS Industries - Independence at an end

We are likely approaching the last time I will be reporting on WMS Industries (WMS), the former Williams Electronics. It has agreed to be acquired by Scientific Games (SGMS) for $26 per share, plus the assumption of WMS' modest debt. The deal is scheduled to close by the end of this year. On its own, WMS is having a dismal fiscal year, which ends June 30. For this year, the company, no doubt with distracted management, earnings are likely to end at about $0.90 per share, compared with fiscal 2012's $1.31 per share. Helping drive earnings lower are additional measures the company is taking to drive up revenues, which remain well below last decade's peak. WMS' stock has flat lined the past few months at within three percent of the $26 price. There is virtually no upside, though there is downside if the deal collapses. I see no reason to get invested in WMS.

Best Casino Stocks To Own For 2014: Modena Resources Ltd (MDA.AX)

Sprint Energy Limited engages in the exploration and production of oil and gas properties in the United States. It primarily owns interests in various onshore leases located on Padre Island, and in Hidalgo and Starr counties. The company was formerly known as Modena Resources Limited and changed its name to Sprint Energy Limited in December 2011. Sprint Energy Limited is based in St Kilda, Australia.

Best Casino Stocks To Own For 2014: LTX-Credence Corporation(LTXC)

LTX-Credence Corporation designs, manufactures, markets, and services automated test equipment solutions for the wireless, computing, automotive, and consumer markets. The company?s product portfolio includes Diamond platform, a package for testing microcontrollers and cost sensitive consumer devices; X-Series platform that offers configurations for optimal testing of ASSP and ASIC, power, automotive, mixed signal, and RF applications; and ASL platform, which is used for testing linear, low-end mixed signal, precision analog, and power management devices. The company also provides various services, including installation and maintenance of test systems, servicing of spare parts, parts and labor warranties on test systems, and training on the maintenance and operation of test systems. LTX-Credence Corporation sells its products through direct sales organization and distributors in the United States, Taiwan, China, Japan, Korea, and southeast Asia. The company was founded i n 1976 and is headquartered in Norwood, Massachusetts.

Advisors' Opinion:
  • [By Arohan]

    LTX-Credence is a semiconductor test equipment manufacturer and servicer serving wireless, computing, automotive and consumer markets. The stock can be purchased at a trailing PE ratio of 5.46. With a market value of $322 million and a cash holding of $162.62 million and no debt, LTXC’s balance sheet is plenty strong. The next few quarters are uncertain as their chip maker customers are forecasting weak demand that may result in losses for the next couple of quarters. At this time, I believe that the stock already reflects the projected weakness and as the industry rebounds the company will be back on its gro wth path.

  • [By Putnam]  

    How can you not like a stock that is growing their earnings by nearly 60% and yet trades at a P/E of only 9x. Sure the growth rate for LTX-Credence (LTXC: 5.72 0.00%) will drop to only 33% in 2011, but at 6x consensus 2011 estimates this small cap stock is incredibly cheap.

10 Best Small Cap Stocks To Buy For 2014: BlackRock Municipal Income Quality Trust (BYM)

BlackRock Insured Municipal Income Trust (the Trust) is a diversified, closed-end management investment company. The Trust�� investment objective is to provide high current income exempt from regular federal income taxes. The Trust will invest at least 80% of its total assets in municipal obligations that are insured as to the timely payment of both principal and interest.

The Trust invests in sectors, such as transportation, water and sewer, power, education and hospitals. BlackRock Advisors, LLC, a wholly owned subsidiary of BlackRock, Inc., serves as the Trust�� investment advisor. BlackRock Financial Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to the Trust.

Tuesday, August 6, 2013

Top Growth Companies To Buy Right Now

Retail and food services sales increased a seasonally adjusted 0.4%, to $422.8 billion for June, according to a Commerce Department report (link opens in PDF) released today.

After heading up a revised 0.5% in May, analysts had expected a 0.8% June jump, double the actual increase.

Top-line numbers look even less optimistic when accounting for more volatile automobile and gasoline sales. Auto sales boosted up 1.8% for June, putting retail sales, less motor vehicles, at 0% (no growth) compared to analysts' 0.5% expectations. And, when excluding gasoline's 0.7% month-over-month gain, as well, retail sales contracted by 0.1% for June.

Source: Census.gov�

Top Growth Companies To Buy Right Now: Buffalo Wild Wings Inc.(BWLD)

Buffalo Wild Wings, Inc. engages in the ownership, operation, and franchise of restaurants in the United States. The company provides quick casual and casual dining services, as well as serves bottled beers, wines, and liquor. As of July 26, 2011, it had 773 Buffalo Wild Wings locations in 45 states in the United States, as well as in Canada. The company was founded in 1982 and is headquartered in Minneapolis, Minnesota.

Advisors' Opinion:
  • [By Roberto Pedone]

    Buffalo Wild Wings (BWLD) is an owner, operator and franchiser of restaurants featuring a variety of boldly-flavored, craveable menu items. This stock closed up 6% to $103.58 in Wednesday's trading session.

    Wednesday's Volume: 1.55 million

    Three-Month Average Volume: 402,120

    Volume % Change: 319%

    From a technical perspective, BWLD ripped higher here back above its 50-day moving average of $98.38 with heavy upside volume. This move is quickly pushing shares of BWLD within range of triggering major breakout trade. That trade will hit if BWLD manages to take out its intraday high on Wednesday of $105.32 and then once it clears is 52-week high at $106.03 with high volume.

    Traders should now look for long-biased trades in BWLD as long as it's trending above its 50-day at $98.38 and then once it sustains a move or close above those breakout levels with volume that hits near or above 402,120 shares. If that breakout triggers soon, then BWLD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $110 to $120.

Top Growth Companies To Buy Right Now: Crocs Inc.(CROX)

Crocs, Inc. and its subsidiaries engage in the design, development, manufacture, marketing, and distribution of footwear, apparel, and accessories for men, women, and children. The company primarily offers casual and athletic shoes, and shoe charms. It also designs and sells a range of footwear and accessories that utilize its proprietary closed cell-resin, called Croslite. The company?s footwear products include boots, sandals, sneakers, mules, and flats. In addition, it provides footwear products for the hospital, restaurant, hotel, and hospitality markets, as well as general foot care and diabetic-needs markets. Further, the company offers leather and ethylene vinyl acetate based footwear, sandals, and printed apparels principally for the beach, adventure, and action sports markets; and accessories comprising snap-on charms. The company sells its products through the United States and international retailers and distributors, as well as directly to end-user consumers th rough its company-operated retail stores, outlets, kiosks, and Web stores primarily under the Crocs Work, Crocs Rx, Jibbitz, Ocean Minded, and YOU by Crocs brand names. As of December 31, 2010, it operated 164 retail kiosks located in malls and other high foot traffic areas; 138 retail stores; 76 outlet stores; and 46 Web stores. Crocs, Inc. operates in the Americas, Europe, and Asia. The company was formerly known as Western Brands, LLC and changed its name to Crocs, Inc. in January 2005. Crocs, Inc. was founded in 1999 and is headquartered in Niwot, Colorado.

Advisors' Opinion:
  • [By Paul]  

    They’re back! Two years ago everyone was convinced that Crocs (CROX: 23.33 0.00%) was just a fad, but their stock price exploded in 2010 gaining 206%. Revenues are expected to climb 20% this year and analysts are looking for 27% earnings growth in 2011. That type of growth could make Crocs a hot item again in 2011, especially if they can continue to top Wall Street’s estimates each quarter.

Top Tech Companies To Own In Right Now: MEDIFAST INC(MED)

Medifast, Inc., through its subsidiaries, engages in the production, distribution, and sale of weight management and disease management products, and other consumable health and diet products in the United States. The company?s product lines include weight and disease management, meal replacement, and vitamins. It also operates weight control centers that offer Medifast programs for weight loss and maintenance, customized patient counseling, and inbody composition analysis. The company markets its products under the Medifast and Essential brand names, including shakes, appetite suppression shakes, women?s health shakes, diabetics shakes, joint health shakes, coronary health shakes, calorie burn drinks, calorie burn flavor infusers, antioxidant shakes, antioxidant flavor infusers, bars, crunch bars, soups, chili, oatmeal, pudding, scrambled eggs, hot cocoa, cappuccino, chai latte, iced teas, fruit drinks, pretzels, puffs, brownie, pancakes, soy crisps, crackers, and omega 3 and digestive health products. Medifast Inc. sells its products through various channels of distribution comprising Web, call center, independent health advisors, medical professionals, weight loss clinics, and direct consumer marketing supported via the phone and the Web; Take Shape for Life, a physician led network of independent health coaches; and weight control centers. The company was founded in 1980 and is headquartered in Owings Mills, Maryland.

Advisors' Opinion:
  • [By Mark]

    Revenues are expected to grow 27% next year and yet MEDIFAST (MED: 15.68 0.00%) trades at only 16x consensus 2011 earnings. The company continues to gain market share in the competitive weight management sector and provides investors with the double benefit of both a growth stock and a potential acquisition target.

Top Growth Companies To Buy Right Now: Checkpoint Systms Inc.(CKP)

Checkpoint Systems, Inc. manufactures and markets identification, tracking, security, and merchandising solutions for the retail and apparel industry worldwide. The company operates in three segments: Shrink Management Solutions, Apparel Labeling Solutions, and Retail Merchandising Solutions. The Shrink Management Solutions segment provides shrink management and merchandise visibility solutions. It offers electronic article surveillance systems, such as EVOLVE, a suite of RF and RFID-enabled products that act as a deterrent to prevent merchandise theft in retail stores; and electronic article surveillance consumables, including EAS-RF and EAS-EM labels that work in combination with EAS systems to reduce merchandise theft in retail stores. This segment also provides keepers, spider wraps, bottle security, and hard tags, as well as Showsafe, a line alarm system for protecting display merchandise. In addition, it offers physical and electronic store monitoring solutions, incl uding fire alarms, intrusion alarms, and digital video recording systems for retail environments; and RFID tags and labels. The Apparel Labeling Solutions segment provides apparel labeling solutions to apparel retailers, brand owners, and manufacturers. It has Web-enabled apparel labeling solutions platform and network of 28 service bureaus located in 22 countries that supplies customers with customized apparel tags and labels. The Retail Merchandising Solutions segment offers hand-held label applicators and tags, promotional displays, and queuing systems. The company serves retailers in the supermarket, drug store, hypermarket, and mass merchandiser markets through direct distribution and reseller channels. Checkpoint Systems was founded in 1969 and is based in Thorofare, New Jersey.

Advisors' Opinion:
  • [By Michael]

    OK, so Checkpoint (CKP: 13.80 0.00%) probably isn’t going to see its stock price double in 2011. However, the stock gained 35% in 2010 with earnings expected to climb 13%. Next year, Wall Street sees earnings growth accelerating to 25%. Despite the impressive growth rate, the stock trades at only 16x next year’s earnings estimates and analysts have a $25 price target for CKP.