Friday, November 29, 2013

Stocks Remain The Best Long-Term Bet

Top Tech Stocks To Watch Right Now

With more workers than ever depending on 401(k)s and other self-directed plans for their retirement, investors have a lot at stake when it comes to optimizing their portfolio. The conventional wisdom is that stocks offer the best chance to maximize returns over the long term, but every significant dip in the market seems to bring fresh doubts.

The so-called "lost decade" between 1998 and 2008, when U.S. stocks actually declined 0.6%, created particularly strong skepticism. If stocks - or equities, as they're often called on Wall Street - are such a smart investment, how does this happen?

Determining the real merit of an asset class requires a sense of perspective. Going back to the early 1900s, slumps of this duration are actually quite rare. Plus, over that time, stocks have averaged much stronger returns than bonds or even precious metals. So, for investors who can afford to ride out the inevitable dips along the way, stocks really are the best way to increase the growth potential of their nest egg.

Stocks Versus Bonds

When comparing stocks to bonds, it's important to first understand the fundamental differences. A corporate bond is essentially an I.O.U. that a company gives an investor. It agrees to pay back the par value of the note in addition to a stated interest rate. And because there's a promise attached to the security, bondholders are presumably willing to accept a lower rate of return than they'd expect from a more speculative investment.

When you buy a share of stock, however, you're purchasing an ownership stake – small as it may be – in the business. In theory, the value of your ownership position could move infinitely in either direction based on the company's performance. The degree of risk is greater, but so too is the potential reward – or so we're told.

So does history bear this out? When one looks ov! er several decades of data, the answer is a resounding "yes."

stocks-article-img.jpg

One major source of confusion for investors is cherry-picking dates when analyzing stock performance. The 1998-2008 period is a prime example. If someone put all their money into U.S. equities in 1998 and tried to sell it all in 2008, it's true that their return would be slightly less than zero. But too much emphasis on this one particular 10-year span can be misleading.

The trouble here is that 1998 represented a temporary peak for the market – it was the first time the S&P 500 hit the 1,000 mark – and 2008 happened to be a valley. The more accurate way to evaluate different securities is to calculate at their long-term trajectory – and that requires looking back as far as possible.

When we look at the entire period between 1928 and 2011, we find that stocks appreciated by a compound average rate of 9.3% a year. Over the same span, bonds generated a 5.1% annual return on average.

So how reliable are stocks, if we use them for long-term saving? Here's one way to look at it. If you start with the date Jan. 1, 1905, and look at the Dow Jones Industrial Average every 15 years, you'll notice that the index rose during every interval but one (it dipped slightly between 1965 and 1980). So stocks aren't bulletproof, but over extended periods they've been remarkably consistent.

Of course, over shorter time periods, equities can fluctuate considerably - just ask anyone who planned to tap their stocks before the 2008 market collapse. When investing for the near term, shifting toward high-grade bonds and other relatively low-risk investments is a good way to protect one's savings should the economy take an unexpected dip.

The DJIA over the last century

Source: Federal Reserve Bank of St. Louis

Does Gold Measure Up?

Just as an investment vehicle can have a bad decade, it can also have a stellar one. Such was the case with gold after the dotcom bubble exploded. In 2001, the precious metal was worth $271.04 per troy ounce. By 2012, it had shot up to a staggering $1,668.98.

So has gold overtaken stocks as the best avenue to grow your portfolio? Not exactly. Here, too, we run into the problem of selectively picking dates. After all, gold has gone through rough periods, too. For instance, its price rose to $615 an ounce in 1980 before dipping over the next consecutive years. It didn't reach $615 again until 2007, nearly three decades later.

Indeed, when we look over a long stretch of time, gold loses much of its luster. From 1928 to 2011, its price increased by an average of 5.4% annually. Interestingly, gold is historically just as volatile as stocks, so a lower return in this case does not mean less risk.

Chart for gold prices for the century of 1910 to 2010

Here's another reason to be cautious about gold, at least if you live in the United States. Long-term gains on collectibles – the investment category that gold falls under – are taxed at 28%. As of 2013, long-term gains on stocks and bonds are subject to a maximum 20% tax.

It's not that gold can't play a useful role in one's portfolio, but making it the centerpiece of a long-term investment strategy has clear pitfalls.

Finding the Right Mix

If equities really do offer higher growth potential than other asset classes, what role should they play in a retirement plan? The answer is almost never 100%, even for an investor in her 20s who is just starting a career.

The fact is that stocks – even those of established, "blue chip" corporations – are significantly more fickle than assets like bo! nds and money market funds. Adding more stable securities to the mix has its advantages.

For example, even younger investors sometimes have to tap their 401(k)s as the result of an unexpected financial hardship. If they do so when the market is down, an over-reliance on stock only worsens the pain.

While equities typically comprise the bulk of a portfolio for those with longer time horizons, minimizing risk tends to become a bigger priority when one gets closer to retirement and other major financial needs. As such, it makes sense to gradually reduce one's stock allocation as these events draw near.

The Bottom Line

Whenever a different asset class outperforms stocks over several years, there's a tendency to look at equities with suspicion. When evaluating securities from a historical standpoint, however, it becomes evident that stocks truly are the best way to maximize the upside potential of one's portfolio. The key is to hold an appropriate amount and to diversify your holdings through mutual funds, index funds and ETFs.

Watch: What Are Stocks?

Thursday, November 28, 2013

GM's French Connection Goes Sour

The success of new Opel models like the Mokka SUV, a sibling of GM's Buick Encore, has GM thinking that the long-troubled Opel might be able to succeed on its own. Photo credit: General Motors Co.

Analysts were surprised when General Motors  (NYSE: GM  ) took a 7% stake in French automaker PSA Peugeot Citroen (NASDAQOTH: PEUGY  ) early in 2012. It was clear what troubled Peugeot got out of the deal -- some cash, and a lifeline -- but what was in it for GM?

GM executives hoped that Peugeot and GM's German subsidiary, Opel, could do some parts-sharing and joint development deals -- deals that could help GM end years of losses at Opel. But Peugeot turned out to be a very troubled company, and GM balked when the Peugeot family suggested that the Detroit giant buy out their stake.

That led to a very messy situation, involving the French government, tough unions -- and now, a Chinese automaker riding to the "rescue." In this video, Fool contributor John Rosevear looks at the latest developments with GM's French connection -- and explains why GM shareholders might be better off if the whole deal goes sour.

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Wednesday, November 27, 2013

Top 10 Casino Stocks For 2014

It's been a tumultuous, Twitter-hacked, earnings-filled week, yet the market continues to chug higher. For skeptics like me, that's an opportunity to see whether companies have earned their current valuations.

Keep in mind that some companies�deserve�their current valuations. Take casino and hotel operator Las Vegas Sands (NYSE: LVS  ) , for example, which is approaching a new 52-week high on the heels of strength in its Macau business. Targeting a broader class of Chinese citizens and tourists, Las Vegas Sands has supplanted Wynn Resorts�in growth and is putting itself atop the casino sector.

Still, other companies might deserve a kick in the pants. Here's a look at three companies that could be worth selling.

Boring doesn't always mean "buy"
You may have heard me mention recently that boring industries can often make the most profitable industries. That is generally true, but it's not a rule! This is why packaging products maker Rock-Tenn (NYSE: RKT  ) has found its way onto my "sell-now" radar.

Top 10 Casino Stocks For 2014: MGM Resorts International(MGM)

MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Travis Hoium]

    What we can take from this is that, most likely, Las Vegas Sands and Melco Crown (NASDAQ: MPEL  ) will see a large increase in revenue when they report earnings. We can also assume that MGM Resorts (NYSE: MGM  ) will show similar trends in Macau because its location is next to Wynn's. There's far more growth to be had than what Wynn is showing and Las Vegas Sands and Melco Crown likely took significant share during the first quarter.

Top 10 Casino Stocks For 2014: Penn National Gaming Inc.(PENN)

Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.

Advisors' Opinion:
  • [By Paul Ausick]

    Stocks on the Move: BlackBerry Ltd. (NASDAQ: BBRY) is down 16.4% at $6.50 after announcing that no buyout bid will be forthcoming. Penn National Gaming Inc. (NASDAQ: PENN) is down 76.7% at $13.75 after spinning-off its real-estate holdings into a REIT. Suntech Power Holdings Co. Ltd. (NYSE: STP) is up 15.5% at $1.53 following the acquisition of its major operations in Wuxi.

  • [By Paul Ausick]

    Penn National Gaming Inc. (NASDAQ: PENN) completed on Monday the spin-off of its real-estate holdings into a new REIT, Gaming and Leisure Properties Inc. (G&LP) (NASDAQ: GLPI). The spin-off was first announced a year ago. Shares in GLPI are trading at around $46.51 after opening at $45.76 this morning.

  • [By Roberto Pedone]

     

    Penn National Gaming (PENN) is a diversified, multi-jurisdictional owner and manager of gaming and pari-mutuel properties. This stock closed up 1.4% at $56.13 in Monday's trading session.

     

    Monday's Volume: 1.11 million

    Three-Month Average Volume: 824,334

    Volume % Change: 73%

     

     

    From a technical perspective, PENN jumped modestly higher here right above some near-term support at $54.71 with above-average volume. This move is quickly pushing shares of PENN within range of triggering a breakout trade. That trade will hit if PENN manages to take out some near-term overhead resistance at $57.44 to some past resistance at $58 with high volume.

     

    Traders should now look for long-biased trades in PENN as long as it's trending above Monday's low $55.65 or above more support at $54.71 and then once it sustains a move or close above those breakout levels with volume that this near or above 824,334 shares. If that breakout hits soon, then PENN will set up to re-test or possibly take out its 52-week high at $59.93. Any high-volume move above $59.93 will then give PENN a chance to hit $65.

     

Top 5 China Companies To Own For 2014: (XTRN)

Las Vegas Railway Express Inc. focuses to re-establish a conventional passenger train service between the Las Vegas and Los Angeles metropolitan areas. It plans to establish a ?Vegas-style? passenger train service. The company is based in Las Vegas, Nevada.

Top 10 Casino Stocks For 2014: Boyd Gaming Corporation(BYD)

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Travis Hoium]

    Earnings from Boyd Gaming (NYSE: BYD  ) surprised investors last week, but there's still a lot of fundamental weakness for the company. Revenue is declining across the country as more supply is added to the market, and the only way to grow is through acquisitions. The Fool's Erin Miller sat down with Travis Hoium to see how to play the gaming market now.�

  • [By Roberto Pedone]

    One gaming player that's rapidly moving within range of triggering a big breakout trade is Boyd Gaming (BYD), which owns and operates gaming entertainment facilities located in Nevada, Mississippi, Illinois, Louisiana and Indiana. This stock has been blazing a trail to the upside so far in 2013, with shares up sharply by 115%.

    If you look at the chart for Boyd Gaming, you'll notice that this stock has been uptrending strong over the last month and change, with shares moving sharply higher from its low of $11.27 to its intraday high of $14.38 a share. During that move, shares of BYD have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BYD into breakout territory above resistance at $13.79 a share, and it's quickly pushing the stock within range of another big breakout trade.

    Traders should now look for long-biased trades in BYD if it manages to break out above its 52-week high at $14.50 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 2.34 million shares. If that breakout triggers soon, then BYD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $18 to $20 a share.

    Traders can look to buy BYD off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $13 a share. One can also buy BYD off strength once it takes out $14.50 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

  • [By Seth Jayson]

    Boyd Gaming (NYSE: BYD  ) reported earnings on April 24. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended March 31 (Q1), Boyd Gaming met expectations on revenues and beat expectations on earnings per share.

  • [By Dan Caplinger]

    The real question is whether Zynga can hold off experienced casino operators if online gambling becomes a reality. Already, alliances are forming, with Boyd Gaming (NYSE: BYD  ) and MGM Resorts (NYSE: MGM  ) having linked up with bwin.party -- the same company Zynga tapped for its real-money Zynga Poker -- to help Boyd take advantage of newly legal online gambling in New Jersey. Zynga has the obvious edge with its social savvy, but established casino companies will have huge incentives to defend their turf if Zynga starts to make a serious dent in the industry.

Top 10 Casino Stocks For 2014: Umax Group Corp (UMAX)

Umax Group Corp., incorporated on March 21, 2011, is a development-stage company. The Company focuses to develop and distribute its product to the arcade and entertainment industry. The Company�� products include Rocket Launch, is Strength testing game which allows players to test their pushing/ throwing strength; Space Hockey, is a two player hockey game - each player must score as many as possible goals and Boxer, is a Simple punch testing game: insert coin/token/bill, press start button, hit the punch bag, wait for result, and try to beat opponent�� score or high score.

As of April 30, 2013, the Company had no revenues. The Company has developed its business plan, and executed exclusive distribution contract GEO a private enterprise, where it engages GEO as an independent contractor for the specific purpose of developing, manufacturing and supplying games for the Company.

Top 10 Casino Stocks For 2014: Wynn Resorts Limited(WYNN)

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes approximately 22 food and beverage outlets comprising 5 dining restaurants; 2 nightclubs; 1 spa and salon; 1 Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; meeting space; and foot retail promenade featuring boutiques. Wynn Las Vegas casino resort also features approximately 147 table games, 1 baccarat salon, private VIP gaming rooms, 1 poker room, 1,842 slot machines, and 1 race and sports book. It also owns and operates an Encore at Wynn Las Vegas resort, a destination casino resort located adjacent to Wynn Las Vegas that features a 2,034 all-suite hotel, as well as a casino with 95 table games, 1 sky casino, 1 baccarat salon, private VIP gaming rooms, and 778 slot machines. In addition, the company operates Wyn n Macau casino resort located in the Macau Special Administrative Region of the People?s Republic of China. Wynn Macau casino resort features approximately 595 hotel rooms and suites, 410 table games, 935 slot machines, 1 poker room, 1 sky casino, 6 restaurants, 1 spa and salon, lounges, meeting facilities, and retail space featuring boutiques. Further, it operates Encore at Wynn Macau resort located adjacent to Wynn Macau. Encore at Wynn Macau resort features approximately 410 luxury suites and 4 villas, as well as casino gaming space, including a sky casino consisting of 60 table games and 80 slot machines, 2 restaurants, 1 luxury spa, and retail space. The company was founded in 2002 and is based in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Marc Bastow]

    Casino developer, owner and operator Wynn Resorts (WYNN) raised its quarterly dividend 25% to $1.25 per share, payable on Dec. 6 to shareholders of record as of Nov. 20.
    WYNN Dividend Yield: 3.07%

  • [By Travis Hoium]

    The recovery in Las Vegas is gaining steam, and after 6.4% growth in May and 4.3% growth over the past year, the gaming companies there have some room to breathe. MGM Resorts (NYSE: MGM  ) and Caesars Entertainment (NASDAQ: CZR  ) have the most to gain, but Wynn Resorts (NASDAQ: WYNN  ) and Las Vegas Sands (NYSE: LVS  ) will benefit as well. In the following video, gaming analyst Travis Hoium covers who will benefit the most from Las Vegas' growth and one stock to stay away from.�

  • [By Michael Vodicka]

    But that got me thinking: Which companies from the S&P 500 are the most shareholder friendly, with the biggest dividend increases in the last 5 years? Here is a list of the top 5 companies from the last 5 years with the biggest dividend increases.

    UnitedHealth Group (UNH) 152%Wynn Resorts Ltd. (WYNN) 137%Aetna, Inc. (AET) 136%Ensco Plc. (ESV) 121%Western Union (WU) 91%

    But from the group, there is one company that offers the most unique combination of growth and income. And even though shares are up a market-beating 43% on the year, there should be plenty more to come.

  • [By Jonas Elmerraji]

    While gamblers in Las Vegas are focused on the payouts on the casino floor at Wynn Resorts (WYNN), I'm more interested in this stock's dividend payout -- there's no gamble there. The $14 billion casino resort operator currently pays out a $1 per share dividend each quarter, adding up to a 2.8% dividend yield at current price levels.

    Wynn has benefitted from a rebounding economy in Las Vegas. The firm's Wynn and Encore resorts are two of the newer properties on the strip, and their high-end positioning keeps VIP business coming into the door. Vegas, though, isn't Wynn's cash cow anymore. China is. Today, around 70% of revenues actually come from Macau, the high-end Chinese gambling district. Macau is Wynn's crown jewel in large part because the firm is one of the few that's been granted a gaming license from the government: Wynn has two properties in Macau, with a third on the way.

    Healthy levels of profitability have translated into a $2.2 billion cash position for WYNN -- enough to pay for around 15% of the firm's market capitalization. Concentrated ownership from founder Steve Wynn should align management's incentives with investors, and increase the likelihood of a dividend hike.

Top 10 Casino Stocks For 2014: Pinnacle Entertainment Inc.(PNK)

Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Sean Williams]

    Time to make the switch
    If I could name a sector that I'd certainly tread lightly around considering that consumers are tightening their wallets, it would be the casino sector. Casino companies rely on loose wallets and vacations to drive profits. This is why I feel it could be the time to say goodbye to casino and race track operator Pinnacle Entertainment (NYSE: PNK  ) near its 52-week high.

  • [By Dan Radovsky]

    Pinnacle Entertainment (NYSE: PNK  ) has reached an agreement in principle with the Bureau of Competition of the Federal Trade Commission that would allow the company to complete its proposed acquisition of Ameristar Casinos (NASDAQ: ASCA  ) , Pinnacle announced today.

  • [By Travis Hoium]

    What: Shares of Ameristar Casinos (NASDAQ: ASCA  ) and Pinnacle Entertainment (NYSE: PNK  ) fell as much as 11% today after the government brought into question the merger of the two companies.

Monday, November 25, 2013

Hitting The Jackpot: Connecticut Pockets Over $175M In Back Taxes

It's being called a jackpot for Connecticut and the most successful tax amnesty in state history. By all accounts, it's true. During its most recent tax amnesty, which ended on November 15, Connecticut collected more than $175 million in back taxes from more than 10,000 taxpayers. The final dollar amount is still being tallied, but will far exceed the $35 million the state anticipated it would collect through the program. 

So how did the state not see this coming? Kevin Sullivan, commissioner of the Department of Revenue Services, suggested to reporters that state officials "underestimated the number of people and businesses that got in trouble during the recession. . . .This was an opportunity for them to come forward."

And come forward they did. Beginning on September 16, taxpayers that came forward and paid taxes owed in full avoided penalties and 75 percent of the interest on the debt. The program was also broad, imposing fewer limitations than usual for taxpayers to qualify. All state taxes were eligible even if the taxpayer was in litigation with the state or was under audit. 

Fun facts from the amnesty include that the largest single payment was $20 million and one payment was for a debt that dated to 1988. Roughly 665 corporations participated and paid back taxes of $91.3 million. An additional $21.4 million was collected from 5,100 individuals who owed personal income tax. 

5 Best Bank Stocks To Invest In Right Now

It is good news for the state. The tax amnesty served its purpose. The state collected a sizable amount of back taxes, and some taxpayers got a fresh start. But according to Sullivan, there is still some $250 million in unpaid state taxes. Taxpayers that were eligible for amnesty (which in this instance was most taxpayers) and who chose not to come forward will face stiffer penalties. While the typical penalty on back taxes is 10 percent, taxpayers that decided to forgo the amnesty will be subject to a 25 percent penalty. Criminal prosecution and litigation are also possibilities. 

Of course, there are typically valid reasons for an eligible taxpayer to decline to participate in an amnesty. For example, the taxpayer may have numerous years of tax deficiencies and simply be unable to pay all of the tax due during the amnesty period. Those taxpayers may choose to file for amnesty on a year-by-year basis, allowing them to reap the benefits of reduced interest and penalties on at least a portion of the years at issue.

Taxpayers may also affirmatively decline to participate in an amnesty because they do not want to waive their appeal rights. Most amnesty programs, Connecticut's included, require taxpayers to waive their rights to appeal any issues related to the period for which the taxpayer requested amnesty. While this is done to ensure the state does not have to refund amounts collected during the amnesty period, it can be a problem for a taxpayer that wants to make an additional adjustment to a return that was covered by amnesty. The rule applies even if the adjustment is unrelated to the issue being addressed through amnesty.

Regardless of whether taxpayers chose not to participate or simply were unaware, the Connecticut amnesty is over. But all is not lost. Those taxpayers that did not participate may be able to enter into a voluntary disclosure agreement. Taxpayers must generally pay all taxes and interest due for the period covered by the agreement.

Acceptance into the program is not guaranteed, but it may be a useful option, particularly now. However, given the potential for post-amnesty penalties, if a taxpayer chooses to forgo amnesty and enter into a voluntary disclosure agreement, the penalties should be addressed during the negotiation of the terms of the agreement. As with most tax issues, going in with eyes wide open is the best way to avoid unwelcome surprises.

Sunday, November 24, 2013

Will Time Warner Cable Continue Its Surge Higher With Recent News?

With shares of Time Warner Cable (NYSE:TWC) trading around $132, is TWC 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

Time Warner Cable is a provider of video, high-speed data, and voice services in the United States, with systems located in five geographic areas: New York, the Carolinas, Ohio, Southern California, and Texas. The company offers its residential and business services customers numerous services over its broadband cable systems. With such a large and growing user base, look for Time Warner Cable to continue to see rising profits from its media, entertainment, and communications offerings.

Time Warner Cable should start preparing itself to hear a bid from Charter Communications (NASDAQ:CHTR). According to a Wall Street Journal report citing people familiar with the matter, Charter is preparing loans to finance a cash and stock bid for Time Warner that has been rumored about for a while. Charter, which is backed by Liberty Global's (NASDAQ:LBTYA) John Malone, wants to merge with Time Warner, as Malone believes that consolidation in the pay-TV industry is necessary for the service's survival.

T = Technicals on the Stock Chart Are Strong

Time Warner Cable stock has seen a consistent uptrend in the last few years. The stock is currently surging higher trading near highs for the year. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Time Warner Cable is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

TWC

(Source: Thinkorswim)

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

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Time Warner Cable Options

27.32%

0%

0%

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

Put IV Skew

Call IV Skew

December Options

Flat

Average

January Options

Flat

Average

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

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

E = Earnings Are Increasing Quarter-Over-Quarter

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

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2013 Q3

2013 Q2

2013 Q1

2012 Q4

Earnings Growth (Y-O-Y)

-29.23%

14.69%

11.67%

-3.74%

Revenue Growth (Y-O-Y)

2.89%

2.70%

6.64%

9.85%

Earnings Reaction

2.79%

3.16%

-0.58%

-11.28%

Time Warner Cable has seen mixed earnings and increasing revenue figures over the last four quarters. From these numbers, the markets have been pleased with Time Warner Cable’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Time Warner Cable stock done relative to its peers, Comcast (NASDAQ:CMCSA), Dish Network (NASDAQ:DISH), DirecTV (NASDAQ:DTV), and sector?

Time Warner Cable

Comcast

Dish Network

DirecTV

Sector

Year-to-Date Return

34.20%

31.13%

41.81%

27.25%

34.59%

Time Warner Cable has been a relative performance leader, year-to-date.

Conclusion

Time Warner Cable provides entertainment, voice, and high-speed data services to a growing customer base in the United States. The company is preparing itself to hear a bid from Charter Communications. The stock has seen a consistent uptrend in the last few years and is currently surging higher. Over the last four quarters, earnings have been mixed while revenues have been rising which has left investors happy about recent earnings announcements. Relative to its peers and sector, Time Warner Cable has been a relative year-to-date performance leader. Look for Time Warner Cable to OUTPERFORM.

Saturday, November 23, 2013

Stocks to Watch: Men's Wearhouse, Alcoa, Yum Brands

Among the companies with shares expected to actively trade in Wednesday’s session are Men's Wearhouse Inc.(MW), Alcoa Inc.(AA) and Yum Brands Inc.(YUM)

Jos. A. Bank Clothiers Inc. approached Men’s Wearhouse about a combination that would create a nationwide powerhouse in men’s apparel. The offer is worth $2.3 billion, or $48 a share in cash, a 36% premium over the closing price Tuesday. Men’s Wearhouse has said it’s reviewing the proposal. Its shares surged, while Jos. A. Bank rose.

Alcoa swung to a third-quarter profit as the aluminum maker reported lower costs that bolstered the bottom line, though revenue fell slightly due to weaker shipments. Results easily topped analyst expectations, sending shares up.

Yum’s third-quarter profit fell 68%, as the parent company of KFC, Taco Bell and Pizza Hut continued to take a hit from its Chinese operations. Shares fell, as the company lowered its expectations for its Chinese division, and its results came in below Wall Street expectations.

Family Dollar Stores Inc.'s(FDO) fiscal fourth-quarter earnings rose 26% as the discount retailer reported continued strong sales growth for consumable goods such as groceries. However, comparable-store sales were weaker than expected. The company also gave a cautious view for the recently started fiscal year and its fiscal first-quarter estimate also missed expectations, sending shares down.

Fastenal Co.'s(FAST) third-quarter earnings rose 9.2%, benefiting from increased sales and slightly higher margins. As in its second-quarter report, the company again warned that it believes its sales growth was held back in part by global economic uncertainty, combined with economic policy uncertainty in the U.S. Shares dropped.

K12 Inc.(LRN) said its average student enrollments for the fiscal first quarter came in below the company’s expectations. Shares dropped, as the online-education company also offered revenue guidance for the fiscal year below Wall Street estimates.

Lexicon Pharmaceuticals Inc.(LXRX) said a pilot study of a treatment for ulcerative colitis showed certain clinical benefits, but the results lacked other findings that would indicate a large enough impact to move ahead on developing the treatment for this particular use. Shares dropped.

Ariad Pharmaceuticals Inc.(ARIA) said the Food and Drug Administration placed a partial clinical hold on all new patient enrollments in clinical trials of Iclusig, after follow-ups at 24 months found some patients treated with the drug suffered from serious arterial thrombosis or other conditions. Shares dropped.

Biotechnology company Lpath Inc.(LPTN) warned Pfizer Inc.(PFE) may divest itself of its exclusive option to co-develop the smaller firm’s leading product candidate. Lpath’s stock fell.

Biopharmaceutical development company CytRx Corp.(CYTR) and early-stage diagnostics company Cancer Genetics Inc.(CGIX) separately disclosed plans to sell stock. CytRx, whose offering of 10 million shares priced at an 18% discount, is aiming to raise money to fund its clinical trials, while Cancer Genetics wants to hire more sales and marketing personnel, as well as fund research and development. CytRx dropped, while Cancer Genetics fell.

Thursday, November 21, 2013

10 Best Clean Energy Stocks For 2014

Exelon (NYSE: EXC  ) reported earnings (link saves as PDF) today, beating analyst estimates on both top-line and bottom-line numbers.

First-quarter 2013 sales clocked in at $6.89 billion, 11% above analyst expectations of $6.2 billion. This quarter's results are 9.7% higher than Q4 2012, and up 47% from 2012's first quarter (before the company's Constellation merger).

On the bottom line, adjusted EPS fell 17.6% year over year to $0.70, but still managed to beat analyst estimates by $0.02.

CEO Christopher Crane pointed to solid nuclear fleet capacity, improving power prices, and increasingly large synergies from last year's merger�as reasons for Exelon's success.

Looking ahead, the utility reaffirmed its Q2 $0.50 to $0.60 guidance, as well as its 2013 $2.35 to $2.65 EPS, despite lower expected margins for its Constellation segment.

As the nation moves increasingly toward clean energy, Exelon is perfectly positioned to capitalize on having the largest nuclear fleet in North America. This strength, combined with an increased focus on balance sheet health and its recent merger with Constellation, places Exelon and its resized dividend on a short list of the top utilities. To determine if Exelon is a good long-term fit for your portfolio, you're invited to check out The Motley Fool's premium research report on the company. Simply click here now for instant access.

10 Best Clean Energy Stocks 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.

Advisors' Opinion:
  • [By Eric Volkman]

    National Instruments (NASDAQ: NATI  ) has elected to maintain its dividend. The company declared a distribution of $0.14 per share, to be paid on Sept. 3 to shareholders of record as of Aug. 12. That amount matches each of the company's previous six distributions, the most recent of which was paid at the beginning of June. Before that, National Instruments handed out $0.10 per share.

10 Best Clean Energy Stocks For 2014: Nwf Group(NWF.L)

NWF Group plc, together with its subsidiaries, engages in the warehousing and distribution of ambient groceries; manufacture and sale of animal feeds; and sale and distribution of fuel oils in the United Kingdom. The company distributes ambient grocery and other products to supermarket and other retail distribution centers. It also provides animal feeds and other agricultural products to dairy farmers. In addition, the company markets feeds, seeds, fats, and silage additives to farmers. Further, it sells and distributes domestic heating, industrial, and road fuels, as well as offers various oil ancillary items, including lubricants, storage tanks, boiler servicing, maintenance, and insurance. NWF Group plc was founded in 1871 and is headquartered in Nantwich, the United Kingdom.

5 Best Undervalued Stocks To Buy Right Now: Medical Marijuana Inc (MJNA)

Medical Marijuana Inc. (MJNA), incorporated on May 23, 2005, is the publicly held company vested in the medical marijuana and industrial hemp markets. The Company is comprised of a diversified portfolio of products, services, technology and businesses solely focused on the cannabis and hemp industries. These products range from patented based cannabinoid products, to whole plant or isolated high value extracts specifically manufactured and formulated for the pharmaceutical, nutraceutical and cosmeceutical industries. In March 2013, it sold certain equipment and inventory, web domain names, phone numbers, and all existing and pending agreements with hemp production and processing facilities to CannaVEST Corp.

The Company�� services are varied, ranging from medical clinic management to the capitalization and development of existing industry business and product leaders. Services include development of cannabinoid based health and wellness products, and the development of medical grade compounds. MJNA provides over 50 and patented cannabinoid delivery methods that are more socially and medically acceptable than smoking.

Advisors' Opinion:
  • [By Bryan Murphy]

    The difference between Growlife's leadership and, say that of competitors like Cannabis Science Inc. (OTCMKTS: CBIS) or Medical Marijuana Inc. (OTCMKTS: MJNA), has been relatively well documented here at the SmallCap Network site. I think the way I - well, someone else - put it back on June 25th says it best...."Growlife is sort of the demure girl in the corner who doesn't do shots off her navel in the bar." It may not have sizzle, but it does have substance.

10 Best Clean Energy Stocks For 2014: Center Bancorp Inc.(CNBC)

Center Bancorp, Inc. operates as the holding company for Union Center National Bank that provides various banking services to individual and corporate customers in Union and Morris counties, New Jersey. The company offers interest bearing and non-interest bearing checking accounts, savings accounts, money market accounts, certificates of deposit, and IRA accounts, as well as Christmas club accounts and vacation club accounts. It also provides secured and unsecured loans, mortgage loans, home equity lines of credit, short and medium term loans, letters of credit, working capital loans, and real estate construction loans. In addition, the company offers safe deposit boxes, money orders, and travelers? checks, as well as automated teller machine services, collection services, wire transfers, night depository, and lock box services. Further, the company, through its subsidiary, Center Financial Group LLC, provides financial services, including brokerage services, insurance an d annuities, mutual funds, and financial planning services. Additionally, it offers various money market services; and deals in the U.S. Treasury and U.S. Governmental agency securities, certificates of deposit, commercial paper, and repurchase agreements. As of December 31, 2010, the company had operations in 10 sites in Union County, New Jersey, consisting of 6 sites in Union Township, 1 in Springfield Township, 1 in Berkeley Heights, 1 in Vauxhall, and 1 in Summit; and 1 site in Madison, 1 site in Boonton/Mountain Lakes, and 1 site in Morristown located in Morris County, New Jersey. Center Bancorp, Inc. was founded in 1982 and is based in Union, New Jersey.

Advisors' Opinion:
  • [By Holly LaFon]

    Becky Quick (CNBC): ��f you could keep one company that Berkshire owns, either a wholly-owned subsidiary, or that Berkshire owns a common equity in, which one would you keep and why?��

10 Best Clean Energy Stocks For 2014: Armarda Group Limited (5EK.SI)

Armarda Group Limited, an investment holding company, provides information technology (IT) professional services to the banking and financial services industry in the People�s Republic of China, Singapore, and Hong Kong. Its IT consulting services business provides IT strategy review and formulation, IT infrastructure architecture, and technology integration. The company�s consulting service includes core banking system construction and technical consulting, project management, test management, banking business work flow transformation consulting, overall consulting of banking system planning, and banking project of process management and business application. Its Application Service business involves in the planning and implementation of banking financial system, which is based on Oracle EBS Financial solution; banking management accounting system based on Oracle OFSA solution; banking plan and budget management system based on Oracle EPB solution; banking auditing syst em based on CaseWare IDEA solution; and human resource management system. In addition, the company involves in the trading of IT equipment and RFID chips. The company was founded in 2001 and is headquartered in Singapore, Singapore.

10 Best Clean Energy Stocks For 2014: Rockgate Capital Corp (RGT.TO)

Rockgate Capital Corp., an exploration stage company, engages in the acquisition, exploration, and development of mineral properties in West Africa. It primarily explores for uranium, silver, copper, and gold. The company owns a 100% interest in the Falea uranium-silver-copper property covering an area of approximately 225 square kilometers located in southwestern Mali. It also owns interests in various properties, including the Manalo/Mansaya, Koninko, and Balandougou mineral properties, as well as a 51% interest in the Ixtapan gold property covering approximately 4,190 hectares located in southwestern Mali; and the Telwa Gada property situated in Niger. Rockgate Capital Corp. is headquartered in Vancouver, Canada.

10 Best Clean Energy Stocks For 2014: Stewardship Financial Corp(SSFN)

Stewardship Financial Corporation operates as the holding company for Atlantic Stewardship Bank that provides commercial and retail banking services to small and medium sized businesses and individuals in Bergen, Morris, and Passaic counties, New Jersey. It offers various deposit products, including personal and business checking accounts, time deposits, money market accounts, regular savings accounts, and term certificate accounts. The company also provides various loan products, such as commercial, consumer, residential mortgage, home equity, installment, and personal loans. In addition, Stewardship Financial Corporation owns and manages a property at Midland Park, New Jersey; involves in insurance business, as well as in issuing trust preferred securities; and owns and manages an investment portfolio. As of December 31, 2009, it operated a main office in Midland Park, New Jersey; and 12 branch offices in Hawthorne, Ridgewood, Montville, North Haledon, Pequannock, Waldwi ck, Wayne, Westwood, and Wyckoff, New Jersey. The company was founded in 1984 and is based in Midland Park, New Jersey.

10 Best Clean Energy Stocks For 2014: Spreadtrum Communications Inc.(SPRD)

Spreadtrum Communications, Inc., through its subsidiaries, operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. It offers a portfolio of integrated baseband processor solutions that support a range of wireless communications standards, including global system for mobile communication (GSM), general packet radio service (GPRS), enhanced data rates for GSM evolution (EDGE), time division synchronous code division multiple access (TD-SCDMA), and high speed packet access (HSPA), as well as offer an array of multimedia capabilities, such as MP3 digital audio playback, touch screen, JAVA acceleration, digital camera support, motion JPEG, MPEG4, AVS and H.264 digital video playback, and 64-channel polyphonic ringtone playback. The company also provides single-chip CMOS multi-mode RF transceivers that perform across various standards covering GSM/GP RS, EDGE, wideband code division multiple access, TD-SCDMA, and high speed uplink/downlink packet access. In addition, it designs, develops, and markets a CMMB-based channel demodulator and audio/video decoder processor solution for the mobile television market. The company sells its products directly, as well as through distributors to brand manufacturers, independent design houses, and original design manufacturers primarily in China, Hong Kong, and Macau. Spreadtrum Communications, Inc. was founded in 2001 and is headquartered in Shanghai, the People?s Republic of China.

Advisors' Opinion:
  • [By Brian Pacampara]

    What: Shares of Chinese smartphone chip maker Spreadtrum Communications (NASDAQ: SPRD  ) surged 17% today after Tsinghua University, through its subsidiary Tsinghua Unigroup, offered to acquire it for $1.4 billion.

  • [By Brian Pacampara]

    What: Shares of smartphone chip maker Spreadtrum Communications (NASDAQ: SPRD  ) popped 13% today after Chinese state-owned company Tsinghua Unigroup agreed to acquire it for about $1.8 billion.

  • [By Bloomberg News]

    The Bloomberg China-US 55 Index (CH55BN), the measure of the most- traded U.S.-listed Chinese companies, added 0.2 percent in New York yesterday. Spreadtrum Communications Inc. (SPRD) gained after Bank of America Corp. said rising smartphone use will boost Asian semiconductor makers.

10 Best Clean Energy Stocks For 2014: Perma-Fix Environmental Services Inc.(PESI)

Perma-Fix Environmental Services, Inc., through its subsidiaries, operates as an environmental and technology know-how company in the United States. It operates in two segments, Treatment and Services. The Treatment segment provides nuclear, low-level radioactive, mixed waste containing hazardous and low-level radioactive constituents, and hazardous and non-hazardous waste treatment, processing, and disposal services primarily through four licensed and permitted treatment and storage facilities. It also engages in the research and development activities to identify, develop, and implement waste processing techniques for problematic waste streams. The Services segment offers on-site waste management services to commercial and government customers; and operates an equipment calibration and maintenance laboratory that services, maintains, and calibrates health physics and industrial hygiene instrumentation. It also provides technical services, which include health physic and radiological control technician services; safety and industrial hygiene services; and staff augmentation services, such as consulting, engineering, project management, waste management, environmental, and decontamination and decommissioning field personnel, technical personnel, and management and services. In addition, this segment offers consulting engineering services, including consulting environmental services comprising air, water, and hazardous waste permitting; air, soil, and water sampling; compliance reporting; emission reduction strategies; compliance auditing; and various compliance and training activities. The company serves research institutions, commercial companies, and public utilities, as well as governmental agencies through direct sales and intermediaries. Perma-Fix Environmental Services, Inc. was founded in 1990 and is based in Atlanta, Georgia.

10 Best Clean Energy Stocks For 2014: Silver Grail Resources Ltd. (SVG.V)

Silver Grail Resources Ltd., an exploration stage company, engages in acquiring, exploring, developing, and dealing in mineral properties in Canada. It explores for silver, gold, copper, zinc, and molybdenum deposits. The company engages in exploring its claims primarily in the Stewart-Eskay Creek region of northwestern British Columbia. Silver Grail Resources Ltd. is based in Vancouver, Canada.

Tuesday, November 19, 2013

4 Stocks Under $10 Making Big Moves

 DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.

ION Geophysical

ION Geophysical (IO) is a technology-focused seismic solutions company that provides advanced seismic data acquisition equipment, seismic software and seismic planning, processing and interpretation services to the global energy industry. This stock closed up 1.7% to $5.35 in Tuesday's trading session.

Top 5 Growth Companies To Watch For 2014

Tuesday's Range: $5.22-$5.38

52-Week Range: $4.59-$7.70

Thursday's Volume: 1.14 million

Three-Month Average Volume: 1.12 million

From a technical perspective, IO rose modestly higher here right of some near-term support at $5.20 with above-average volume. This stock recently gapped up sharply from around $4.80 to $5.52 with strong upside volume. Following that move, shares of IO pulled back to $5.20 and the stock has now started to trend into its 50-day moving average of $5.36. That move is quickly pushing shares of IO within range of triggering a near-term breakout trade. That trade will hit if IO manages to take out some near-term overhead resistance levels at Tuesday's high of $5.38 to more resistance at $5.52 with high volume.

Traders should now look for long-biased trades in IO as long as it's trending above $5.20 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.12 million shares. If that breakout triggers soon, then IO will set up to re-test or possibly take out its next major overhead resistance levels at $6 to its 200-day moving average at $6.20. Any high-volume move above $6.20 will then put $6.50 to $6.70 into range for shares of IO.

Radio One

Radio One (ROIAK), together with its subsidiaries, operates as an urban-oriented multimedia company in the U.S. This stock closed up 3% to $2.67 in Tuesday's trading session.

Tuesday's Range: $2.56-$2.74

52-Week Range: $0.68-$2.75

Thursday's Volume: 99,000

Three-Month Average Volume: 107,808

From a technical perspective, ROIAK trended higher here right above some near-term support at $2.48 and above its 50-day moving average at $2.35 with decent upside volume. This move is quickly pushing shares of ROIAK within range of triggering a major breakout trade. That trade will hit if ROIAK manages to take out some near-term overhead resistance levels at $2.74 to its 52-week high at $2.75 with high volume.

Traders should now look for long-biased trades in ROIAK as long as it's trending above support at $2.48 or above its 50-day at $2.35 and then once it sustains a move or close above those breakout levels with volume that hits near or above 107,808 shares. If that breakout triggers soon, then ROIAK will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $3.50 to $4.

Organovo

Organovo (ONVO) develops 3D bioprinting technology for creating functional human tissues on demand for research and medical applications. This stock closed up 2.5% to $5.98 in Tuesday's trading session.

Tuesday's Range: $5.70-$6.07

52-Week Range: $1.80-$8.50

Thursday's Volume: 2.03 million

Three-Month Average Volume: 2.82 million

From a technical perspective, ONVO jumped higher here right off its 50-day moving average of $5.79 with decent upside volume. This move is starting to push shares of ONVO within range of triggering a near-term breakout trade. That trade will hit if ONVO manages to take out some near-term overhead resistance levels at $6.20 to $6.39 with high volume.

Traders should now look for long-biased trades in ONVO as long as it's trending above some near-term support levels at $5.50 or at $5 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.82 million shares. If that breakout triggers soon, then ONVO will set up to re-test or possibly take out its next major overhead resistance levels at $7.50 to its 52-week high at $8.50. Any high-volume move above $8.50 will then put its all-time high at $10.90 within range for shares of ONVO.

Shanda Games

Shanda Games (GAME) develops, sources and operates online games in the People's Republic of China. This stock closed up 1.3% to $4.16 in Tuesday's trading session.

Tuesday's Range: $4.03-$4.17

52-Week Range: $2.68-$6.42

Thursday's Volume: 614,000

Three-Month Average Volume: 1.47 million

From a technical perspective, GAME trended up modestly here right off some near-term support at $4 with lighter-than-average volume. This stock recently formed a major bottoming chart pattern, since shares of GAME have found buying interest over the last two months every time it has pulled back to around $3.80 a share. Those pullback have now formed a triple bottom for GAME right above its 200-day moving average of $3.54. Shares of GAME are now starting to move within range of triggering a major breakout trade. That trade will hit if GAME manages to take out its 50-day moving average at $4.44 and then once it clears more resistance levels at $4.85 to $5 with high volume.

Traders should now look for long-biased trades in GAME as long as it's trending above that major support at $3.80 or above its 200-day at $3.54 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.47 million shares. If that breakout triggers soon, then GAME will set up to re-test or possibly take out its next major overhead resistance levels at $6 to its 52-week high at $6.42.

To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Monday, November 18, 2013

DRI Shares Slide on Earnings Miss

NEW YORK (TheStreet) - Darden Restaurants  (DRI) closed down more than 7% lower, weighed down by lower-than-expected second-quarter results, released early on Friday.

By the end of trading, 6.3 million shares of Darden changed hands compared to its average daily volume of 1.26 million. Overall, Darden lagged the S&P 500 which was down 0.72%. 

For the quarter ended Aug. 25, Darden reported earnings of 53 cents a share, a 37.6% decrease compared to the year-ago quarter. Earnings rang in at $70.3 million, significantly lower than $111 million for the first quarter a year earlier. Same-restaurant sales increased 3.2% at LongHorn Steakhouse, but sales at Olive Garden and Red Lobster fell 4% and 5.2%, respectively.

"Sales volatility is amplified because of the changes we're making at our two largest brands [Olive Garden and Red Lobster]," Darden CEO Clarence Otis said in a company press release. "August was a challenging month on an absolute basis and we have to be prepared for consumers to continue to be cautious in their spending."

The company said it is prepared to take steps to reduce costs by $50 million a year namely through labor and program spending cuts.

Otis commented, "With the additional flexibility we have as a result of these actions... we are confident we can deliver stronger operating and financial results and remain the industry leader for years to come."

Darden also announced President and COO Drew Madsen's retirement effective at the end of the company's second quarter. Gene Lee, president of Darden's Specialty Restaurant Group, will assume the role. During Madsen's six-year tenure, the company saw a 79% increase in annual revenues and delivered a 110% increase in total shareholder return.

TheStreet Ratings team rates Darden as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate Darden (DRI) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows:
Darden's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 11.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. Net operating cash flow has increased to $259.6 million or 22.68% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 7.26%. Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market on the basis of return on equity, Darden has underperformed in comparison with the industry average, but has exceeded that of the S&P 500. Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, Darden has underperformed the S&P 500 Index, declining 9.61% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings. You can view the full analysis from the report here: DRI Ratings Report

Top 10 Value Companies To Invest In 2014

Written by Keris Alison Lahiff.

Sunday, November 17, 2013

The Ghost of TARP

NEW YORK (TheStreet) -- Do you remember the Troubled Asset Relief Program established in 2008? Most think that the program has ended. It has not! There is a Special Inspector General to provide an oversight function called SIGTARP. It is investigating how some TARP funds were wasted, stolen or otherwise abused. On July 24, Christy L. Romero, the Special Inspector General, presented to Congress the SIGTARP quarterly report. Included in the 400-page report is information on the alphabet soup of all programs related to the Great Credit Crunch.

My focus is on the Capital Purchase Program, the facility through which the Treasury directly purchased preferred stock or subordinated debentures in FDIC-insured financial institutions. [Read: Elon Musk and the Case of Curious Tweets]

CPP intended to provide funds to stabilize the banking system by raising the capital base of banks deemed to be healthy. These funds were supposed to be used to increase lending to consumers and businesses. In my opinion, this program failed to accomplish that goal. The Treasury invested $204.9 billion in 707 institutions through the CPP facility within TARP. This source of funding was closed on December 29, 2009. As of June 30, 195 of the 707 CPP participants remained in TARP. Stripping out the 53 institutions from which Treasury holds only warrants to purchase stock, 142 of the financial institutions still have outstanding CPP principal balances in TARP funding. According to the Treasury, $193.8 billion of the $204.9 billion in CPP principal has been repaid as of June 30. The Treasury continues to manage its portfolio of CPP investments, and 96 banks are not current on their interest payments on these commitments. To make these payments, the state regulator of a TARP recipient must approve the payments owed to the government. In many cases, regulators don't approve this reduction of capital as that would put the institution at risk of failure.

[Read: Unfortunately Dell Is Staying the Course] Data from SNL Financial show the top 30 publicly traded FDIC-insured financial institutions that have TARP exposure outstanding as of June 11. Today I profile eight community banks that are tradable among these 30. Synovus Financial (SNV) is the largest bank on this list, but it competed its redemption of TARP funds on July 26.

Reading the Table

OV / UN Valued - The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.

VE Rating - A "1-Engine" rating is a Strong Sell, a "2-Engine" rating is a Sell, a "3-Engine" rating is a Hold, a "4-Engine" rating is a Buy and a "5-Engine" rating is a Strong Buy. Last 12-Month Return (%) - Stocks with a Red number declined by that percentage over the last twelve months. Stocks with a Black number increased by that percentage. Forecast 1-Year Return - Stocks with a Red number are projected to decline by that percentage over the next twelve months. Stocks with a Black number in the Table are projected to move higher by that percentage over the next twelve months. Value Level: is the price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual. Pivot: A level between a value level and risky level that should be a magnet during the time frame noted. Risky Level: is the price at which to enter a GTC Limit Order to sell on strength. [Read: Should You Drop Your Traditional Bank for a Virtual One?] Popular (BPOP) ($29.09) is a community bank in Puerto Rico which has $935 million in TARP money. The stock set a multiyear high at $34.34 on Aug. 20 and is now declining toward its 200-day SMA at $28.22. My semiannual value level is $22.33 with a weekly pivot at $30.83 and monthly risky level at $38.37. Cathay General Bancorp (CATY) ($23.02) is a community bank in California which has $129 million in TARP money. The stock set a multiyear high at $24.85 on Aug. 5 and tested its 50-day SMA at $23.28 on Sep. 18. My annual value level is $20.69 with a semiannual pivot at $22.19 and weekly risky level at $23.23. [Read: A Well-Rooted Retail Investment] Eastern Virginia Bankshares (EVBS) ($6.03) is a community bank in Virginia with $24 million in TARP money. The stock set a multiyear high at $7.50 on March 25 and is now on the cusp of its 50-day SMA at $6.03. My quarterly value level is $4.99 with a weekly pivot at $6.20 and monthly risky level at $6.33.

First BanCorp (FBP) ($6.47) is another community bank in Puerto Rico. It has $222.7 million in TARP money. The stock set a multiyear high at $8.70 on July 23 and recently approached its 200-day SMA to the downside with a low at $6.09 on Sep.12 vs. the 200-day SMA at $6.10. My quarterly value level is $5.48 with a monthly risky level at $7.92.

First United Corp (FUNC) ($8.68) is a community bank in Maryland which has $30 million in TARP money. The stock set a multiyear high at $9.35 on Aug. 21, and since then, the stock has been above its 50-day SMA at $8.23. My quarterly value level is $7.05 with a monthly pivot at $8.97 and weekly risky level at $9.32.

[Read: Global Macro: The Fed Doesn't Taper for Good Reason] Heritage Oaks Bancorp (HEOP) ($6.41) is a community bank in California which has $21 million in TARP money. The stock set a multiyear high at $7 on July 24 and is now below its 50-day SMA at $6.51. My monthly value level is $6.17 with a quarterly pivot at $6.67 and annual risky level at $8.56.

Intervest Bankshares (IBCA) ($7.30) is a community bank in New York City which has $25 million in TARP money. The stock set a multiyear high at $7.75 on July 22 and is now on the cusp of its 50-day SMA at $7.21. My quarterly value level is $5.81 with a weekly pivot at $6.73 and monthly risky level at $8.62. [Read: Health Exchange Alert: Watch Out for Medical ID Theft] Independent Bank (IBCP) ($9.76) is a community bank in Michigan which has $74.4 million in TARP money. The stock set a multiyear high at $10.22 on Sep. 4. My quarterly value level is $5.79 with a weekly pivot at $10.36 and monthly risky level at $11.22. At the time of publication the author held no positions in any of the stocks mentioned. Follow @Suttmeier This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.

Friday, November 15, 2013

Top Safest Companies For 2014

It seems that every day a new press release comes out about a big oil or gas discovery, and increasingly these announcements have one thing in common: All the finds are in offshore fields.

As offshore exploration and development increase, oilfield service companies are in high demand. In this video, Fool.com contributor Aimee Duffy talks to Tyler Crowe about how offshore production has affected oilfield service companies, and what investors can expect going forward.

National Oilwell Varco is perhaps the safest investment in the energy sector due to its industry-dominating market share. This company is poised to profit in a big way; its customers are both increasing the number of new drilling rigs and updating aging fleets of offshore rigs. To help determine whether it could be a good fit for your portfolio, you're invited to check out The Motley Fool's premium research report featuring in-depth analysis on whether NOV is a buy today. For instant access to this valuable investor's resource, simply click here now to claim your copy.

Top Safest Companies For 2014: Under Armour Inc.(UA)

Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States, Canada, and internationally. It offers products made from moisture-wicking synthetic fabrics designed to regulate body temperature and enhance performance regardless of weather conditions. The company provides its products in three fit types: compression (tight fitting), fitted (athletic cut), and loose (relaxed) extending across the sporting goods, outdoor, and active lifestyle markets. Its footwear offerings comprise football, baseball, lacrosse, softball, and soccer cleats; slides; performance training footwear; and running footwear. The company also provides baseball batting, football, golf, and running gloves, as well as licenses bags, socks, headwear, custom-molded mouth guards, and eyewear that are designed to be used and worn before, during, and after competition. Under Armour sells its products through retai l stores, as well as directly to consumers through its own retail outlets and specialty stores, Website, and catalogs. The company was founded in 1996 and is headquartered in Baltimore, Maryland.

Advisors' Opinion:
  • [By Teresa Rivas]

    In athletic apparel, lululemon (LULU) gained 4.7% and Under Armour (UA) lost 2.6% as Credit Suisse upgraded the former and downgraded the latter.

    Disney (DIS) also ended strong, building on yesterday�� gains on news it will meaningfully increase its share repurchase plan.

  • [By Cole Campbell]

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

  • [By Andrew Marder]

    While customers may have been lukewarm to Day, investors loved her outlook. The ex-Starbucks Day had a global vision for Lululemon, but it was slow to play out. The company's incredibly conservative expansion plans read like a Jane Austen how-to-land-a-husband guide. All the courting of yoga instructors, vendors, and consumers made for slow going, and gave Under Armour (NYSE: UA  ) and others a chance to catch up.

  • [By Steve Symington]

    A little over three weeks ago, I wrote about a new trademark infringement lawsuit filed against Baltimore-based athletic apparel specialist Under Armour (NYSE: UA  ) .

Top Safest Companies For 2014: Fluor Corporation(FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.

Advisors' Opinion:
  • [By The Energy Report]

    JH: One of the areas where the U.S. for decades has been the leading technological power is in small nuclear reactors. We've used them on our aircraft carriers and on our nuclear submarines safely and efficiently. The U.S. has an advantage in understanding small modular nuclear reactors. One of the companies that we have followed for a long time that's working on that is Babcock & Wilcox Co. (BWC). There's also Fluor Corp. (FLR), which is working on small modular nuclear reactors. President Obama and the Department of Energy are funding research on the implementation of small modular nuclear reactors.

  • [By CRWE]

    Fluor Corporation�� (NYSE:FLR) Chairman and Chief Executive Officer, David Seaton, and Chief Financial Officer, Biggs Porter, will give a presentation to investors at the Credit Suisse 2012 Engineering & Construction Conference in New York on Thursday, June 7 at 9:00 a.m. Eastern Daylight Time.

Top 5 Heal Care Companies To Invest In Right Now: Petroleo Brasileiro S.A.- Petrobras(PBR)

Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil.

Advisors' Opinion:
  • [By Rich Smith]

    Following up on its March order with Cameron International�for $600 million worth of subsea "trees" -- equipment affixed to an oil wellhead to regulate the flow of gas and fluids injected into a well to help force oil out -- Brazilian oil major Petroleo Brasileiro (NYSE: PBR  ) (NYSE: PBR-A  ) announced Wednesday that it is ordering another 49 subsea trees, tooling, and associated subsea controls from FMC Technologies (NYSE: FTI  ) in a contract worth $500 million.

  • [By Arjun Sreekumar]

    Several oil majors have even plowed billions of dollars into prospecting areas offshore Africa, despite the risk of unexpected actions by conflict-ridden governments. For instance, Chevron (NYSE: CVX  ) has acquired exploration blocks in Liberia and Sierra Leone, while Royal Dutch Shell (NYSE: RDS-A  ) and Brazilian oil giant Petrobras (NYSE: PBR  ) are jointly exploring deepwater acreage off the coast of Tanzania.

  • [By Matthew Smith]

    We have received quite a few inquiries regarding our view on Petrobras (PBR) and the bottom line is that we find it quite hard to get excited in the short-term over the company's prospects. Long-term it should be a viable play, but right now we see little reason to subject our portfolio to that volatility and sideways movement when there are so many great domestic opportunities here in the US which offer tremendous upside. Stick with that which is working and try not to get too cute by being a contrarian. There is a time for that, but right now is not that time.

Top Safest Companies For 2014: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

Wednesday, November 13, 2013

The Brookfield Group Looks Ready For M&A

I expect the Brookfield Group of Companies, which is composed of no fewer than 15 publicly traded entities, to be very active acquisitive in the near-term future. Here I focus my attention on three members of the Brookfield Group that are going to be the most active with M&A. While Brookfield Asset Management (BAM) will concentrate its M&A efforts into all geographies and all asset classes, Brookfield Renewable Energy Partners (BEP) and Brookfield Infrastructure Partners (BIP) will concentrate on their respective industries. Let's see whether you should go long on any of this separate -although related - entities.

Good Operational Performance

Brookfield Asset Management, held by Lou Simpson and Ron Baron, counts with a liquidity position of more than $5 billion at the parent and principal subsidiaries along with nearly $10 billion drawable private fund commitments. More importantly, the company has expressed its interest into using this liquidity to make acquisitions. Management clearly stated in its letter to shareholders:

"We have a robust pipeline of exceptional opportunities in front of us in all of our businesses (...). Today, we are being offered a variety of attractive opportunities to acquire assets and assist companies with capital needs, as companies refocus their core strategies, and governments reconsider how they will deliver critical infrastructure and services."

Brookfield Asset Management has reaffirmed its interest in European attractively priced assets. With this in mind, and given that the company is usually more price sensitive than most investors, I think Brookfield Asset Management is poised to deliver great performance through buying European high-quality assets. That said, the company's valuation seems rich at 2013 18.6 times P/E and 230% tangible book value. I would keep the company into my watch-list but I would not go long at current prices.

Trading at the Right Price

Brookfield Renewable Energy Partners, which has been very acquis! itive during the last few months adding new opportunities to its portfolio, looks now undervalued. The reason to explain the existing overhang on the stock is clearly related to the equity issuance launched in June, which was later pulled given "non-ideal" market conditions. That said, I believe the market shouldn't have reacted against the stock since the issuance was simply planned to build funds in order to increase M&A activity beyond the company's $1 billion current liquidity position.

Brookfield Renewable now offers a very attractive 5.6% distribution yield, above its 5% historical average. Selling for 8.8 times 2013 operating cash flow, I think Brookfield Renewable is a great way to get exposure to a globally diversified source of renewable projects. Moreover, I am not the only one thinking of Brookfield Renewable, successful funds such as the KBI Alternative Energy Strategy are also long on the name.

Eyes Set into the Future

Brookfield Infrastructure, which is also held by Ron Baron, has enviable liquidity. The company's current liquidity position is approximately $2.5 billion, out of which $1.1 billion is cash on a pro forma basis (after the closing of recent transactions). I think the company's value should be measured in terms of its future and the steady deployment of its existent capital.

Brookfield Infrastructure has a number of potentially profitable areas for investment around the world but, above all, in infrastructure hungry Emerging Markets (EM) such as Brazil. According to Credit Suisse analysts, in Brazil, funds can be invested at Funds From Operations (FFO) yields above 12%. Therefore, the company's ability to grow its distribution yield, whether through acquisitions or organically, is critical to evaluate the company's value. Moreover, the currently conservative dividend payout ratio should allow Brookfield Infrastructure to self-finance on going opportunities.

The company has targeted to growth its annual distributions by 3% to 7% with a FFO payout! ratio of! 70%. Hence, I believe the currently fair 4.75% dividend yield could go as high as 5.5% by the end of 2014. Trading at 11 times its operating cash flow, I think Brookfield Infrastructure is a solid investment for those looking for a good cash yield and EM exposure.

Conclusion

The Brookfield Group of Companies offer a great way to get into different markets in an efficient way. A proven management with a very strict acquisition criteria — they never pay too much — and ample sources of private and public capital make these companies ideal options for portfolios looking for diversification. That said, you should always be wary of not paying too much for the assets you are buying. I believe that Brookfield Renewable Energy Partners and Brookfield Infrastructure are good buys for those looking to get into renewable energy projects or global infrastructure. Brookfield Asset Management looks expensive at this point in time.

Tuesday, November 12, 2013

5 Worst Sectors to Avoid This Week

RSS Logo Portfolio Grader Popular Posts: 6 Biotechnology Stocks to Buy Now5 Oil and Gas Stocks to Buy Now9 Biotechnology Stocks to Sell Now Recent Posts: 5 Worst Sectors to Avoid This Week 3 Building Products Stocks to Buy Now 5 Stocks With Poor Cash Flow — KWK STP ATPG EDN AONE View All Posts

For the week, the worst sectors according to Portfolio Grader are the Metals and Mining, Computer and Personal Electronics, Energy Services, Oil and Gas, and Communications Equipment sectors.

The Metals and Mining sector looks weak, with 78% of its stocks (74 out of 95) rated a “sell”. Finishing near the bottom this week are Cliffs Natural Resources (NYSE:), Walter Energy (NYSE:), and Thompson Creek Metals Company Inc. (NYSE:) among the Metals and Mining stocks. Cliffs Natural Resources has a score of F while Walter Energy and Thompson Creek Metals Company Inc. rated F and F. Over the last 12 months, Walter Energy is the worst performer in this sector, with a 70.4% decline.

The Computer and Personal Electronics sector is lagging this week with 60% of its stocks (12 out of 20) rated a “sell”. Among Computer and Personal Electronics stocks, Diebold, Incorporated (NYSE:), QLogic Corporation (NASDAQ:), and Hewlett-Packard Company (NYSE:) finished near the bottom. Diebold, Incorporated is currently rated F. QLogic Corporation and Hewlett-Packard Company are rated F and F.

The Energy Services sector is trailing behind others this week, with 59% of its stocks (33 out of 56) rated a “sell”. Dwelling near the bottom this week are GulfMark Offshore, Inc. Class A (NYSE:), Key Energy Services, Inc. (NYSE:), and Nabors Industries (NYSE:) among the Energy Services stocks. GulfMark Offshore, Inc. Class A has a score of F while Key Energy Services, Inc. and Nabors Industries rated F and F. Key Energy Services, Inc. is the worst performer in this sector, with a 42.7% decline in the last 12 months.

The Oil and Gas sector is dragging, with 58% of its stocks (124 out of 212) rated a “sell”. Out of the Oil and Gas stocks, Enerplus Corporation (NYSE:), Swift Energy Company (NYSE:), and Newfield Exploration Company (NYSE:) finished near the bottom. Enerplus Corporation has a score of F while Swift Energy Company and Newfield Exploration Company rated F and F. Swift Energy Company is performing worst overall in the sector, with a 51% decline over the last 12 months.

With 56% of its stocks (20 out of 36) rated “sell,” the Communications Equipment sector is struggling this week. Among Communications Equipment stocks, Alcatel-Lucent SA Sponsored ADR (NYSE:), ADTRAN, Inc. (NASDAQ:), and Polycom, Inc. (NASDAQ:) lingered near the bottom. Alcatel-Lucent SA Sponsored ADR has a score of F while ADTRAN, Inc. and Polycom, Inc. rated F and F.

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.