Thursday, October 31, 2013

Is BP Undervalued?

With shares of BP (NYSE:BP) trading around $42, is BP 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

BP is an integrated oil and gas company. The company provides its customers with fuel for transportation, energy for heat and light, lubricants and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging. It operates in two business segments: Exploration and Production, and Refining and Marketing. The company has been the subject of negative press in recent years due to an oil leak that had significant negative effects. Since then, BP has been repairing its image and looks to be doing it well. Through its segments, BP provides valuable energy products and services that are a requirement for the operation of most businesses and growing populations.

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T = Technicals on the Stock Chart are Mixed

BP stock has taken a lot of heat in recent years but looks to be regaining its footing in the long-term. Currently, the stock is in the middle of a multi-year trading range where a positive break above it may be fairly significant for the stock. 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, BP is trading around its tangled key averages which signal neutral price action in the near-term.

BP

(Source: Thinkorswim)

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

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

BP Options

19.77%

6%

5%

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

Put IV Skew

Call IV Skew

May Options

Steep

Average

June Options

Steep

Average

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

2012 Q4

2012 Q3

2012 Q2

2012 Q1

Earnings Growth (Y-O-Y)

-78.98%

7.99%

-124.38%

-19.34%

Revenue Growth (Y-O-Y)

7.51%

-4.72%

-8.71%

9.33%

Earnings Reaction

1.35%

2.78%

-4.59%

-1.64%

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

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P = Average Relative Performance Versus Peers and Sector

How has BP stock done relative to its peers, Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM), Royal Dutch Shell (NYSE:RDSA), and sector?

BP

Chevron

Exxon Mobil

Royal Dutch Shell

Sector

Year-to-Date Return

2.57%

12.23%

2.38%

-1.90%

9.16%

BP has been an average performer, year-to-date.

Conclusion

BP provides essential energy products to consumers and a wide array of companies that operate in different industries around the world. The stock has suffered in recent times due to the negative press it has experienced from the oil leak incident. However, it is now trying to establish a value range. The two most recent earnings and revenue figures have pleased investors. Relative to its peers and sector, BP has been an average year-to-date performer. WAIT AND SEE what BP does this coming earnings report.

Wednesday, October 30, 2013

Adapt or die: Attracting Gen X and Gen Y clients

Having been born in 1981, I belong to Gen Y. I'm also an investment adviser representative and a consultant to 950 financial professionals. Because of where I fit in personally, the conversation about what the next generation wants from advisory relationships intrigues me.

In most respects, I believe my generation wants the same things our predecessors want: sound advice for a reasonable price, accessibility, communication, transparency. In other respects, though, I must acknowledge that Generations X and Y each display distinct traits that advisers should understand and adapt to if they plan to be in business 20 years from now.

Here are a few reasons why, according to Cam Marsten's “The Gen-Savvy Financial Advisor”:

*Generation X and Millennial investors will inherit more than $41 trillion by 2052.

*Surveys show that 86% of inheritors do not plan to use their parents' financial advisers.

*29% of wealthy investors are under age 50 and control 37% of investible assets.

Many advisers have built their business models around serving baby boomer retirees and pre-retirees — a strategy that has made sense for a long time, and will likely continue to make sense for a time.

Even now, the landscape of boomer wealth is changing rapidly as increasing numbers are reaching retirement age and beginning to draw down their retirement assets. Furthermore, as boomers die, it is unlikely that their heirs will invest their inheritance with their parent's advisers — unless these advisers provide services that match their expectations.

Approaches that work with older clients actually can alienate younger clients and prospects who may view them as dated or out-of-touch. For this reason, it's critical not to be overly attached to traditional methods of doing business. Here are some tips that will help you connect with younger investors.

TRANSPARENCY MATTERS

Think of what recent generations have grown up with. Enron, WorldCom, Madoff, Stanford — they've had front-row seats to a rash of financial scandals and complex investment schemes that have left them with a distrust of the financial services industry. Rather than trying to "sell" investments, the financial adviser's role should be that of a facilitator and provider of advice; more teammate than coach. Be 100% transparent and upfront about every commission, fee and charge. If Gen X or Gen Y investors feel that you or your firm isn't leveling with them on costs or performance, they'll go elsewhere.

Bear in mind that younger investors also are avid “Googlers,” meaning they will likely go online to research you and your advice, and to seek out performance and fee comparisons. Work hard to earn their respect by sharing as much information a! nd research as you can to give them the “inside track.”

PROVIDE SOCIAL PROOF

Gen X and Gen Y spend staggering amounts of time online and are devoted social media users. Research suggests that they may be less likely to work with a financial professional who doesn't have a significant footprint on the web. An updated and mobile-friendly website, blog and social media presence are vital to building credibility with younger investors.

Research also shows that Gen Y investors reach out to friends and family first when seeking financial guidance. This means you should provide references or examples of how you have helped their family, friends or acquaintances where possible.

FOCUS ON GOALS RATHER THAN BENCHMARKS

Again, you have to think about what Generations X and Y are accustomed to: Loads of positive reinforcement, "You're special. You're unique. Be an individual." Video games with new prizes and rewards at every level. Sporting events where everyone gets a trophy. This conditioning means you will have more success by helping them set highly personalized short-term, medium-term, and long-term goals.

As they reach each goal, encourage them to bask in their success and reward themselves. When retirement is still a long way off, focusing on it as the ultimate goal may not be as motivating as say, hitting the $100,000 mark in a Roth IRA or paying off a home mortgage.

BEWARE OF TRADITIONAL PROSPECTING METHODS

Younger investors may not want to be courted the way older investors do and may be put off by traditional client events such as dinners or golf outings. On the other hand, sporting events or beer tastings might find a willing audience. Consider replacing the traditional seminar with online video or webinars. Offer research reports and white papers for download on your website, and use the contact information you capture to follow up personally when someone expresses an interest.

KEEP IT SHORT AND SWEET

It's common for Gen X (and especially Gen Y) to have many demands on ! their tim! e and short attention spans. Keep pitches and discussions short and send them home with information to consider.

LEVERAGE TECHNOLOGY

This is one area we can't overemphasize. Gen X and Gen Y investors are using technology for nearly everything, and they expect the companies they do business with to be the same. They use a wide variety of online and mobile applications to manage their finances, share information and track investments. Applications like Mint and Personal Capital are growing increasingly popular, with members of Generation X among leading users. If your firm doesn't offer comparable tools or at least integration with existing ones, you could find yourself in a difficult position down the road.

According to a Spectrem Group survey, 58% of millionaires aged 35 and younger would be willing to use webcam technology to speak to their advisers. This means that programs like Skype, FaceTime, and GoogleChat could replace an old-fashioned phone call for many of your clients in the future.

How comfortable are you with using this technology?

COMMUNICATE APPROPRIATELY

Younger investors don't necessarily want or need a lot of face time with their advisers. They are adept users of e-mail and social media and often prefer these modes of communication. As much as possible, ask for their personal preferences and try to oblige them.

In conclusion, if you're already experiencing success as an adviser, I can understand why you may view the recommendations in this article with fear or skepticism. And frankly, depending on your circumstances, you may be able to continue growing and thriving without making adjustments. That being said, I urge you to remember two things: First, your baby boomer clients are aging. Their wealth is going to gradually transfer to their heirs. It's good business to build relationships with your client's children on terms that will earn their respect and loyalty. Second, over the next 30 years, Generations X and Y are going to accumulate millions of dollars on their own ! and inher! it trillions from their parents. These families will need advisers. Will you be prepared to serve them? By making a few adjustments to your business model, you can ensure your practice will stand the test of time.

What do you think? Are you working with Gen Y clients? What are some of the critical differences between young clients and boomers? What are you doing to reach them? Join the discussion below

Robert Sofia is the COO and co-founder of Platinum Advisor Strategies, a web-based marketing and consulting firm to financial advisors nationwide. For more information on Platinum Advisor Strategies visit www.platinumstrategies.com. Like what you've read?

Tuesday, October 29, 2013

A Military Contractor That’s Rising Above The Fray

Print FriendlyMost analysts on Wall Street see continued pressure on US defense budgets, as politicians seek to rein in the large federal deficit. With the recent US government shut down, debt ceiling debate and sequestration, most investors remain cautious as to the fundamental outlook for defense companies.

However, there is still life in the defense industry. In particular, this small-cap value company is inking new military contracts that will grow revenues throughout the coming year.

Kratos Defense & Security Solutions (NASDAQ: KTOS) has been awarded over $38.6 million in new defense orders since the beginning of October 2013. Following revenue growth above 20 percent over the past year, this defense contractor is projected to grow revenues 266 percent in the coming year. This provides an opportunity of 50 percent upside for this undervalued small-cap stock.

Kratos provides outsourced engineering, IT and warfighter solutions primarily to US government, state and local agencies, and to commercial customers. The US military has selected Kratos for numerous defense contract awards in the past month:

On October 21, the company received orders valued at $13.7 million for the production of Integrated Microwave Assemblies for two critical US Navy platforms. These awards, from a follow-on customer, are related to continuing production on long-term Electronic Attack and Intelligence, Surveillance and Reconnaissance airborne platforms. On October 15, the company’s SAT Corporation (SAT) subsidiary was selected by Inmarsat to provide SAT’s carrier monitoring and interference detection system, Monics. Monics is the enterprise-networked spectrum measurement and interference analysis system used by 90 percent of the world’s top satellite operators and telecommunications providers in over 57 countries around the world. On October 14, the company’s Defense & Rocket Support Services division received a $2 million research and technology development contract award from the US Army Program Executive Office for Simulation, Training, and Instrumentation. This award is under the Army’s Broad Agency Announcement High Speed Systems Test Science & Technology Test Technology Area. On October 8, the company’s Modular Systems (MS) Division received a $5.6 million order in support of a US Department of Defense/National Security related program, for equipment that will be manufactured by Kratos’ MS Division in a secure Kratos manufacturing facility. On October 7, the company’s MS Division received approximately $8.8 million in orders for specialized products in support of a National Security related program. On October 1, the company received from Sikorsky Aircraft a contract award valued at over $8.5 million to design and develop maintenance training systems for the CH-53K heavy lift replacement helicopter. Kratos will provide a full-fidelity Maintenance Training Device Suite, as well as a Helicopter Emulation Maintenance Trainer, which will be delivered to the Marine Corps Air Station New River, NC. In the second quarter of 2013, Kratos’ Public Safety and Security division continued to generate strong organic growth, which is expected to continue into the second half of this year, as this business’ backlog and bid proposal pipeline remain near record levels.

Backlog at quarter end was $1.1 billion, with $558 million funded. Backlog at the end of the first quarter was $1.2 billion.

Second-quarter revenue of $235.2 million came in at the high end of the company’s expected range of $230 million to $235 million, due in part to stronger demand for the company’s Public Safety and Satellite Communications businesses.

Second-quarter revenue increased year-over-year 7 percent from $219.8 million, reflecting the organic growth of 17.5 percent in the Public Safety and critical infrastructure business.

Year to date through September, the S&P Aerospace & Defense Index advanced 32.6 percent, versus gains of 22.8 percent for the S&P Industrials Index and 19.2 percent for the S&P 1500 Composite Index. Kratos is up 65 percent (double the Defense Index) during this period and up 23 percent in the past three months.

While the company has forecasted exceptional sales and earnings growth, it trades at only 0.52 times sales in the most recent quarter. Kratos currently has a total market cap of $487 million but has an enterprise valuation of $1.08 billion. This should alert investors to the value proposition of buying this fast-growing stock.

Kratos had a loss of 0.56 per share in 2012 but improved its earnings per share (EPS) to $0.18 in 2013. Kratos is projected to grow earnings by 266 percent, for EPS of $0.66 in 2014.

Kratos Defense & Security Solutions has a 12-month price target of $13, for an increase of 50 percent.

Greg Pugh, an income-investing expert, publishes a newsletter called Investing for Monthly Income.

Monday, October 28, 2013

Income And Excitement Are Things Omeros Offers

Introduction

Omeros (OMER) is proving to be an exciting stock. I have been following it closely since a round of insider buying after OMS103 failed to meet its primary endpoint for the second time in Phase 3 trials. While the price would probably be higher if the product had unequivocally been successful, I would not have become a shareholder. It is enjoyable to own a company with several products, some of which should have near term events.

The company's current market capitalization is approximately $141M. It may be unpalatably volatile for some. There are reasons for the instability, including the fact that external financing arrangements are necessary to pay the bills. The precariousness is supported by a Phase 3 product with a submitted New Drug Application, and a pipeline containing at least two products that could be blockbusters if they can defy the odds and advance through extensive clinical study ahead.

Phosphodiesterase

Omeros is working on at least two products investigating phosphodiesterase ("PDE") enzymes. It actually has some impressively-credentialed staff that has participated in the development of Cialis, a PDE type 5 inhibitor. Those with medical, managerial, or scientific responsibilities include:

Kenneth M. Ferguson, Ph.D., Vice President, Development and Chief Development Officer;Patrick W. Gray, Ph.D., Scientific Fellow;J. Steven Whitaker, M.D., J.D., Vice President, Clinical Development and Chief Medical Officer; andAlbert S. Yu., M.D., Vice President, Clinical Development

The company's PDE10 inhibitor OMS824, under evaluation for treating psychiatric conditions, has gotten a strange amount of attention for a drug candidate that has not entered Phase 2 trials. In fact, an article published just over one year ago focuses on the product while in preclinical stages. The product is now relatively far advanced in light of notable competition:

Pfizer (PFE) has a molecule that formerly was in Phase 2, PF-2545920. It appears to have ! been discontinued, but may now to be in new clinical studies for schizophrenia and Huntington's Disease.Merck (MRK) has a patent for a PDE10 inhibitor that issued in 2012.Privately-held EnVivo Pharmaceuticals has a Phase 1 product, EVP-6308.Biocrea, a privately-held German firm is also active in research and has collaborated with Pfizer. According to CEO Tom Kronbach, "Our scientific team (in our predecessor companies Biotie and elbion) has had a long collaboration with Pfizer on PDE10 inhibitors. Our PDE10 development candidate, BCA159, was conceived independent of the Pfizer collaboration and of the Pfizer molecule (MP-10 or PF-2545920). We have data that show…BCA159 is superior to MP-10 (source: emailed message)."Bristol-Myers Squibb (BMY) has a patent application that lists a March publication date;A Johnson & Johnson (JNJ) subsidiary known as Janssen-Cilag S.A. has a patent application.

There is not any indication of a candidate in development at any of the publicly-traded companies' web sites, so any products probably are not past Phase 1; if in clinical development.

OMS824 cannot be ruled out as a potential blockbuster if found effective for treating Huntington's disease or schizophrenia. Per all of the above activity, it might also render Omeros an acquisition target. In the meantime, a May 23rd Press Release announces an Orphan Drug Application, a process that has tended to require under 90 days in recent years.

However, the PDE10 inhibitor seems to have hit a snag on another front. A May 1st Press Release announces an application for FDA Fast Track status. The time for review is 60 days, so it seems that it has not been approved.

The company is also evaluating OMS527, a preclinical PDE7 inhibitor for treatment of addiction and compulsive disorders. It anticipates filing an application in Europe later this year to begin trials.

OMS721

There is another Orphan Drug Application for preclinical OMS721 as a treatment for atypical hemolytic uremic ! syndrome ! ("aHUS"). It may have encountered a problem(s). Roughly 100 days have passed since its reported filing.

The only known current treatment for aHUS is Soliris, discovered, developed, and marketed by Alexion Pharmaceuticals (ALXN). OMS721 aims to selectively inhibit mannan-binding lectin-associated serine protese-2 ("MASP-2"), and is approved for Phase 1 trials in Europe. Enrollment should have begun for in July. Notably, according to the company's CEO Gregory Demopulous, "The lectin pathway appears to play an important role across a wide range of serious disorders."

PharmacoSurgery

This aspect of the corporate model is something I like about the company. Omeros has been in the medical business since at least June 1994 when it was incorporated. Some biotechnology and biopharmaceutical companies have seen their lead candidate fail, rendering them without an approved product or money, and Demopulous assuredly has witnessed them. The most advanced pipeline products belong to the PharmacoSurgery platform, which brings drugs to the site of wounds during procedures.

OMS103, intended for knee surgery procedures, seems to be hobbled in the water. Though shown effective at treating pain, it has had two failures in Phase 3. Further studies may be announced in the future.

OMS302 uses generically-available drugs in a standard irrigation fluid to keep the eye in its desired state during ophthalmological surgery. According to multiple analysts, it has high chances of approval as a new drug. Provided the Agency files the application, a response should be known within nine months.

OMS302 might not sell the same way as treatments for diseases that have unmet needs, and certainly is not entitled to the FDA's priority and rolling review processes. There may be an onus on marketing and sales efforts at regional levels, which could be expensive, if the candidate is approved. However, even if it eventually proves to struggle commercially, it should lend stability! to the c! orporation and perhaps its share price.

Finances

It may not be surprising that fundamentals are a difficulty for this early-stage company. Except for a share count that is now increased 32%, figures remain reasonably consistent in comparison with those from a year ago.

(click to enlarge)

Since March 31, the close of Q1 2013, there has been a $16.2M registered stock placement that increases the stock outstanding by 3.9M shares. Remarkably, the price has appreciated from close to $4 pursuant to announcement of the transaction. For the foreseeable future, further dilution is a probable means to raise needed capital. There is also the chance of a new partnership(s).

Getting Paid To Be A Shareholder

Everything described thus far results in a volatile situation. In part because the stock can gyrate so much, options are expensive. The stock currently trades at around $5.55. A $6 call that expires in September can be written for around $40, or maybe higher. There is a chance of earning [ $40 / $555 = ] 7.2% on a $555 trade, or investment, without consideration of commissions. In the improbable scenario that things are unchanged for the remainder of the year, the same gains could be made every month and a half or so. Two other considerations are that, if the stock price somehow goes to $0, everything would be lost except the money for writing calls; and if the share price rises above $6, perhaps due to approval of an Orphan Drug Application, profits would be limited and assignment fees may be incurred (Just2Trade charges $20).

Here is a graphic showing the changing implied volatility ("IV"), pertinent to options and colored orange; and historical volatility, relevant to the stock price and colored blue. IV has been fairly consistent while shares have fluctuated considerably.

(click to enlarge)

Conclusion

This stock is not for the risk-averse. The company does not make any money, is unlikely to anytime soon, and does not have a lot of cash to get by. For those who like Omeros and what it is trying to accomplish, some things may balance out. If so, owning shares in multiples of 100 can result in relatively high income, particularly when measured as a percentage.

Source: Income And Excitement Are Things Omeros Offers

Disclosure: I am long OMER. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

Saturday, October 26, 2013

Why Marriott Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, hotel operator Marriott International (NYSE: MAR  ) has received an alarming one-star ranking.

With that in mind, let's take a closer look at Marriott and see what CAPS investors are saying about the stock right now.

Marriott facts

 

 

Headquarters (founded)

Bethesda, Md. (1971)

Market Cap

$12.8 billion

Industry

Lodging

Trailing-12-Month Revenue

$2.5 billion

Management

Chairman Willard Marriott, Jr.

President/CEO Arne Sorenson

Return on Capital (average, past 3 years)

21.4%

Cash/Debt

$221.0 million/$3.3 billion

Dividend Yield

1.6%

Competitors

Intercontinental Hotels 

Starwood Hotels & Resorts 

Wyndham Worldwide 

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 30% of the 467 members who have rated Marriott believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, Yacabe, succinctly summed up the Marriott bear case for our community:

The hotel industry is undergoing some interesting times lately. I think the most important thing to remember is the fact that our economy is very volatile as of late. I mean let's think for a second: We've been under sequester for 4 months now, and mass furloughing has become common practice in several government agencies. This means that any industry selling luxuries or extras is going to take a hit. This includes hotels. In a country that's trying to save money, hotels are going to have a very rough time. Expansion and added incentives aren't going to be enough for Marriott.

While you can certainly make quick gains in speculative, high-debt companies, the best investing approach is to choose great businesses and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Friday, October 25, 2013

Top Blue Chip Stocks To Invest In Right Now

The power of dividends�is nothing new to decade-long income investors. Yet, more recently, droves of investors are jumping on the dividend bandwagon, thanks to all-time low savings rates. But not all dividend-paying stocks are created equal.

Looking beyond the Aristocrat status
These two great examples show us that concentrating on one sole metric, like dividend yield, means that we're likely overlooking potential red flags. Instead, a more sustainable strategy is buying dividend stocks that harness both reliable dividend growth and low payout ratios.

Take a look at these three under-the-radar companies. While each of them belongs to the elite S&P 500 Dividend Aristocrats, an exclusive club of blue chips that have boosted their dividends for at least 25 consecutive years, these three are great dividend stocks for other reasons too.

1. VF (NYSE: VFC  )
Through economic (and consumer waistline) recessions and expansions, the company behind North Face apparel and 7 For All Mankind jeans has increased its dividend for an impressive 40 years! VF pays a modest 1.9% dividend yield, but don't let that dupe you. The company has increased its dividend by 248% over the past decade, outpacing the Consumer Price Index nearly tenfold.

Top Blue Chip Stocks To Invest In Right Now: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:
  • [By Alex Planes]

    Technology and pharmaceuticals gained a permanent foothold in the Dow Jones Industrial Average (DJINDICES: ^DJI  ) on June 29, 1979. The index added IBM (NYSE: IBM  ) and Merck (NYSE: MRK  ) that day, replacing floundering automaker Chrysler and food-products company Esmark for only its second component swap in the previous 20 years -- still the slowest rate of changes in Dow history.

  • [By Andr茅s Cardenal]

    IBM
    IBM (NYSE: IBM  ) is arguably the most mature company in the tech business; the company decided to move away from the commoditized hardware business back in the nineties, prioritizing margins and free cash flows over revenue. This has done wonders for the company in terms of profitability, and IBM has achieved a remarkable track record of 18 consecutive years of dividend increases.

  • [By Rich Bieglmeier]

    International Business Machines Corporation (IBM) plans to release its third quarter financial results after the market closes on Wednesday, October 16, 2013. Management will host a conference call/webcast at 4:30 PM ET to discuss the results and current market conditions.

Top Blue Chip Stocks To Invest In Right Now: Colgate-Palmolive Company(CL)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:

  • [By Monica Gerson]

    Colgate-Palmolive Co (NYSE: CL) is expected to report its Q3 earnings at $0.73 per share on revenue of $4.46 billion.

    Precision Castparts (NYSE: PCP) is projected to report its Q2 earnings at $2.83 per share on revenue of $2.36 billion.

  • [By Dan Caplinger]

    One concern, though, is how the company handled news of Venezuela's currency devaluation. Clorox (NYSE: CLX  ) and Colgate-Palmolive (NYSE: CL  ) also felt the pinch, with Clorox taking about a $0.05 to $0.10 per-share earnings hit and Colgate losing about $0.50 per share. But they also addressed the potential devaluation more proactively than P&G did. Clorox actually�anticipated�the devaluation in its February earnings report, projecting the potential hit if a devaluation took place. Colgate didn't provide specific guidance in advance but clearly saw it as an issue, delivering on a promise to give prompt guidance revisions after the devaluation occurred.

Top Medical Companies To Buy For 2014: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:
  • [By Rick Munarriz]

    Naturally, this leads one to wonder how Starbucks (NASDAQ: SBUX  ) and McDonald's (NYSE: MCD  ) -- two retail giants that have moved from traditional coffee to offer icy coffee beverages that have been sweetened -- as potential targets in the attack on caffeine.�

Top Blue Chip Stocks To Invest In Right Now: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:
  • [By WALLSTCHEATSHEET.COM]

    Chevron is an oil and gas bellwether that provides essential energy products and services to consumers and companies worldwide. The company recently won a bid to explore�for shale gas in western Lithuania. The stock is currently bouncing off an upward sloping trendline and may continue to do so. Over the last four quarters, earnings and revenues have been mixed, which has produced mixed feelings among investors in the company. Relative to its peers and sector, Chevron has been a year-to-date performance leader. Look for Chevron to OUTPERFORM.

Top Blue Chip Stocks To Invest In Right Now: Philip Morris International Inc(PM)

Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.

Advisors' Opinion:
  • [By Selena Maranjian]

    Why Altria?
    The company is what's left after international operations were spun off in the form of Philip Morris International (NYSE: PM  ) in 2008. While Philip Morris is favored by many because of lower tobacco taxes and regulations in many parts of the world, as well as the fact that many economies are growing more rapidly than ours, Altria still manages the very valuable Marlboro brand domestically, where it recently held a commanding 43% market share.

  • [By Jonas Elmerraji]

    As the world's second largest tobacco company, Philip Morris International (PM) is the prototypical sin stock. It boasts recognizable brands, a sticky customer base, and a hefty dividend payout -- and the payout looks due for a dividend hike. As I write, Philip Morris International currently pays out a 85 cents each quarter, adding up to a 4.05% yield.

    Philip Morris owns almost 30% of the world's tobacco market. And much of that success is thanks to a single iconic brand: Marlboro. The firm has owned Marlboro (as well as second-tier names such as L&M and Parliament) internationally ever since Altria (MO) split up its international and domestic operations. Between the two markets, PM owns the more attractive franchise by far. After all, the international market is the only one that's actually growing.

    While the U.S. market for tobacco products is rife with regulation and demographic shifts are turning away from smoking, international tobacco sales are up -- especially in emerging markets. Premium positioning in markets like India, China and Indonesia translates into substantial cash flows for PM investors. And while the strength of the dollar has been a challenge post-2008, the potential for a Fed taper could strengthen this stock's payout in 2013.

  • [By Holly LaFon]

    GuruFocus: You��e buying a lot of global brands, and they all had in common emerging market growth, like Proctor and Gamble (PG), Pepsi (PEP), Philip Morris (PM), Johnson and Johnson (JNJ). Is that was a conscious investment theme or is that a coincidence?

Top Blue Chip Stocks To Invest In Right Now: Apple Inc.(AAPL)

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

Advisors' Opinion:
  • [By Travis Hoium]

    Facebook (NASDAQ: FB  ) Home is out, and it's the latest company to take control of Google's (NASDAQ: GOOG  ) open-source Android software. This highlights a challenge for Google, which has lost control of Android in many ways. It may even provide an opportunity for Apple (NASDAQ: AAPL  ) . Erin Miller sat down with Fool contributor Travis Hoium to see why he thinks Facebook Home may be good for Apple.�

  • [By Rick Aristotle Munarriz]

    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 online educator getting schooled to a PC dinosaur showing signs of coming back to life, here's a rundown of the week's best and worst in the business world. Hewlett-Packard (HPQ) -- Winner PC sales continue to slide, but market leader HP is turning things around. Industry tracker IDC may have served up some grim metrics for the state of desktops and laptops -- global PC shipments were down by nearly 8 percent, making this the sixth consecutive quarter of slipping sales -- but IDC estimates that HP bucked the trend by shipping more computers than it did a year earlier. The trend is even better domestically. HP was already having a good week when CEO Meg Whitman explained why she felt her company was well-positioned to thrive in the future. The IDC report suggests that HP's rosy future is now. K12 (LRN) -- Loser Online learning has come under fire in recent years. Are the students engaged enough? Is the education effective? Are the cost savings worth the shortcomings of the virtual classroom? We still don't have all of the answers, but we may be seeing enrollments peaking. Shares of K12 were slammed this week after the provider of Web-based curriculums for grade school students posted a disappointing outlook. K12 saws enrollments increased by a softer than expected 6 percent in its latest quarter. K12 also now sees revenue for the entire fiscal year that ends in June clocking in between $905 million and $925 million. Analysts were perched at $988 million. Ouch. That's not a passing grade. Microsoft (MSFT) -- Winner HP wasn't the only winner in IDC's review of the PC industry during the third quarter. Four of the five largest PC makers in this country saw their shipments increase. The lone holdout was Apple (AAPL) experiencing an 11 percent slide in Mac and MacBook sales during the period. That's sweet news for Mic

Top Blue Chip Stocks To Invest In Right Now: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:
  • [By Charles Carlson]

    The only three Dow stocks that do not are actually, interestingly, two of the newest members, Goldman Sachs (GS) and Visa (V), and the third stock is UnitedHealth Group (UNH), which is also a fairly new member to the Dow.

Thursday, October 24, 2013

Foolish Reviews: Which Features Really Matter in Android Phones?

The high end of the cell phone market is a lucrative, but highly competitive space. Consumers have fairly straightforward choices when it comes to iPhones or Windows devices, but there are more confusing choices among the Android phones.

In this multipart review series, Motley Fool analysts Eric Bleeker and Rex Moore look at three of the Android giants: the HTC One, Nexus 4, and Samsung Galaxy S4, and how they stack up against each other as well as the non-Android competition. In today's video, Eric and Rex talk about the top features -- and best cameras -- among these devices.

Dialing a different tune
Want to get in on the smartphone phenomenon? Truth be told, one company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it! But it stands to reap massive profits NO MATTER WHO ultimately wins the smartphone war. To find out what it is, click here to access The Motley Fool's free report: "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further..."

Top Gold Companies To Own In Right Now

Wednesday, October 23, 2013

Why Weight Watchers Shares Got Weighed Down

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Weight Watchers International (NYSE: WTW  ) sank 3% today after Credit Suisse downgraded the weight management company from outperform to neutral.

So what: Along with the downgrade, analyst Glen Santangelo lowered his price target to $44 (from $45), representing about 9% worth of upside to yesterday's close. While contrarian investors might be attracted to the stock's steady slide in 2013, Satangelo believes that Weight Watchers' appreciation potential remains limited given all the work management still has to accomplish in order to impress Wall Street.

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Now what: Credit Suisse sees a lack of positive catalysts in Weight Watchers' near-term future. "We are increasingly convinced that the current status quo will not be good enough to drive shares higher," noted Credit Suisse. "Despite an attractive FCF yield (~8%), strong brand equity and cost-optimization efforts, the turnaround process will likely be multi-year." With the stock now off 35% from its 52-week highs, and trading at a P/E of 9, however, that short-term sentiment could be providing long-term Fools with an enticing entry point. 

More compelling consumer picks
The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

Tuesday, October 22, 2013

The S&P 500: How Much Higher Can it Go?

Not much, say the folks at Capital Economics.

REUTERS

Sure the S&P 500 has gained 0.4% to 1,750.96 at 12:55 p.m., and traded another new high today. But there are reasons to doubt the benchmark’s ability to head much higher, writes Capital Economics’ Jessica Hinds. Three of them in fact. She writes:

Tuesday's jobs data make it less likely that the Fed will start reducing its purchases in December. And the central bank's balance sheet will continue to expand even after it eventually begins to taper, which might lend some ongoing support to equity prices. However, it is still only a matter of time before unconventional monetary stimulus ends.

What's more, the S&P 500 has risen a long way since early 2009, with the result that the cyclically-adjusted price/earnings ratio has more than doubled to a level that is well above its long-run average. Profit margins are also stretched and long overdue a cyclical correction. These headwinds should cap the upside for US equities over the next year.

Finally, some unexpected event may also dull investors' appetite for risk, such as the recent debt-ceiling crisis. Indeed, this crisis has only been temporarily resolved and could well resurface next year.

In a note from Friday, however, Deutsche Bank’s David Bianco offered a different take–namely that stocks are heading higher:

We expect a further low volatility climb to 1800 by mid 1Q. While risks remain given a full year budget yet to pass and a Fed yet to taper, investor nerve for risk appears battle hardened and emboldened by the S&P’s many advances. The last course of 2013′s feast might be a rationed serving, but it’s best not to refuse and we expect healthy S&P returns in 2014 and 2015. We were disappointed with the mere stopgap fiscal deal reached this week, which may cap the S&P at 1800 until resolved, but profits trump politics and China trumps Congress. 3Q EPS and China’s momentum justify 1800 soon.

5 Best Cheap Stocks For 2014

The S&P 500 is getting a boost today from Alcoa (AA), which has gained 4.1% to $8.95 after it announced a joint venture aimed at the aerospace industry, Forest Labs (FRX), which has climbed 3.8% to $56.01 after reporting better-than-forecast earnings and guidance and Freeport-McMoran Copper & Gold (FCX), which reported better-than-expected earnings and said it would seek significant cost cuts.

Monday, October 21, 2013

Don't Get Too Worked Up Over Monolithic Power Systems's Earnings

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Monolithic Power Systems (Nasdaq: MPWR  ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, Monolithic Power Systems generated $5.8 million cash while it booked net income of $15.3 million. That means it turned 2.7% of its revenue into FCF. That doesn't sound so great. FCF is less than net income. Ideally, we'd like to see the opposite.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at Monolithic Power Systems look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With 97.1% of operating cash flow coming from questionable sources, Monolithic Power Systems investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost, at 96.0% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 77.2% of cash from operations.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

Is Monolithic Power Systems the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

Add Monolithic Power Systems to My Watchlist.

Saturday, October 19, 2013

Tesla and Europe: A Match Made in Heaven?

The Fool's own senior auto analyst, John Rosevear, sits down with Richard Engdahl for an in-depth look at Tesla (NASDAQ: TSLA) and the electric vehicle market, as well as Chrysler's unique situation with Fiat (NASDAQOTH: FIATY).

The economic crisis in Europe has slammed the auto industry as a whole, but luxury vehicles aren't doing so badly. Coupled with governments that tend to smile on green technologies, Tesla has enjoyed a warm reception Europe.

A full transcript follows the video.

Richard Engdahl: You mentioned briefly overseas sales for Tesla. It strikes me that Europe is perhaps a better place to sell electric vehicles. On the other hand, maybe the U.S. is a better place to sell premium vehicles. How does the overseas market look for Tesla?

John Rosevear: Well, on the one hand we look at Europe -- and particularly Western Europe -- there's a recession going on. New car sales in general are at terrible lows right now and the mainstream automakers in Europe are having a lot of trouble.

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Enter Tesla that walks in. They're competing with a novel product in the luxury space. Luxury cars haven't actually done that badly. Go to a place like Germany, they're still selling plenty of BMWs and Mercedes and Audis in Germany. Britain is doing well. France is doing reasonably well, and the Scandinavian countries are doing fairly well.

I understand Tesla's had a really wonderful recession in, I think Norway. They sold a whole bunch as soon as it opened in Norway. It was like, "Whoa, Norway. OK."

With some of these European governments there's more support for electrification. There's more support for infrastructure. There are tax credits and tax breaks and so forth, because they want to move the country more in that direction.

We have some of that here, of course. We have the tax breaks, but we don't have quite the national support for electrification that you could do in a place like Denmark or something like that, because it's a smaller country and it can be done a little more easily, to set up that kind of infrastructure.

Engdahl: Is there any infrastructure -- speaking of -- is there any more government response to electric vehicles in Europe, as far as setting up charging stations and the like?

Rosevear: I'm not current on all of it. Some of the European governments -- the Western European governments -- I know Germany has done some stuff. I know that a couple of the Scandinavian countries have tried to move it forward.

The EU in general, of course, wants to push toward greener outcomes for motor vehicles in general, so there's some support there. The nature and specifics of it, I don't have that in hand.

Friday, October 18, 2013

Best Undervalued Companies To Watch In Right Now

Like it's larger rival JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC) delivered a solid, better-than-expected second quarter on Friday morning. Clearly there is still pressure on the business, as loan growth is faint and yields are low, but lower credit costs are helping underpin earnings. Wells Fargo and JPMorgan seem virtually equally undervalued, and both offer investors a quality play on the banking sector. With JPMorgan's greater exposure to trading and investment banking, as well as further regulatory changes, Wells Fargo is arguably the better play for investors looking to benefit from an eventual improvement in loan growth and yields.

SEE: July 12: Earnings To Test The Market Rally

Q2 Comes In With A Solid Top Line And Good Credit
Wells Fargo delivered a fairly straightforward good quarter, as both revenue and credit costs were stronger than expected and the company once again beat the estimate for the period.

Operating revenue rose 1%, as net interest income rose 3% (sequentially) and offset a 1% decline in fee income that was smaller than expected. Looking at the components, Wells Fargo saw a 3% increase in average earning assets, but a 45-point year-on-year decline in net interest margin (NIM was close to flat sequentially, and slightly better than expected). Within the fees, mortgage banking was basically flat, while trust and credit card fees grew more than expected.

Best Undervalued Companies To Watch In Right Now: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:
  • [By John Udovich]

    Everyone is familiar with�the Tupperware brand from�consumer products stock Tupperware Brands Corporation (NYSE: TUP) and you are probably familiar with the brands�of mid cap stock Jarden Corp (NYSE: JAH) along with small cap stocks Libbey Inc (NYSEMKT: LBY) and Lifetime Brands Inc (NASDAQ: LCUT); but what about the stocks themselves? Chances are, their brands or products are right under your nose at home and you probably don�� know anything about the mid cap or small cap stock behind them.

  • [By Eric Volkman]

    Tupperware Brands (NYSE: TUP  ) is reaching into its corporate bowl for a fresh payout to shareholders. The company has declared a quarterly dividend of $0.62 per share. This will be paid on July 8 to stockholders of record as of June 19. That amount matches the firm's previous distribution, which was paid in early April. Prior to that, Tupperware Brands was rather less generous, handing out $0.36 per share.

  • [By Arie Goren]

    After running this screen on May 21, 2013, before the markets' open, I discovered the following eight stocks: Sunoco Logistics Partners LP (SXL), Leggett & Platt Inc (LEG), Copa Holdings SA (CPA), RPC Inc. (RES), Tupperware Brands Corp. (TUP), Herbalife Ltd. (HLF), John Wiley & Sons Inc. (JW.A) and C.H. Robinson Worldwide Inc. (CHRW).

Best Undervalued Companies To Watch In Right Now: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:
  • [By Paul Ausick]

    Dollar General�� share price is up less than 6% in the past 12 months, but since the beginning of the year shares have risen more than 22%. And even then, Dollar General�trails Dollar Tree Inc. (NASDAQ: DLTR) in share price growth since January 1. Dollar Tree stock is up 30%.

  • [By Rising Dividend Investing]

    Falling Stock Correlation: What It Says About Consumer Spending

    As we mentioned in the Take Aways from the August 26th Investment Policy Committee meeting, the correlation index has been steadily declining. In 2008-09, macroeconomic events drove nearly every stock downwards. Specific sectors and stocks moved in tandem with one another. Today, stocks and sub-industries within each sector are performing very differently – which indicates a return to a more normal stock market environment.
    The Consumer Discretionary (also known as Consumer Cyclicals) sector is an example of an industry that has been rewarded for its fundamental success over the past 12 months. As a whole, the sector grew sales 6.1% and earnings 9.2% in the second quarter - much better than the 1.4% sales and 3.3% earnings growth of the S&P 500. While the overall sector did well in the second quarter, the table below shows how differently the 5 sub-categories of Consumer Discretionary performed:

    (click to enlarge)
    As we drill down even further, sub-categories of sub-sectors differ even more dramatically. Below is a snapshot of the Retailing sub-sector and its notable components:

    (click to enlarge)
    Specific stocks within each sub-category are varying in performance as well. General Merchandise retailers were significantly differentiated in the second quarter. Target’s (TGT) adjusted EPS were up 6.1% from 2012, while Dollar General (DG) and Dollar Tree’s (DLTR) earnings were up nearly 12% and 9%, respectively.
    The differences in sales and earnings growth amongst these different industries tell a story. The economy is not improving enough that people feel like they can let go and spend money on pure pleasures, but it is improving enough that they can afford to replace their cars and fix the doors on their houses. As these items wear out and need to be replaced, we expect the pent up demand will drive increased economic activity from cons
  • [By Mani]

    Dollar Tree, Inc. (NASDAQ:DLTR) is one of the companies that are set to exploit the ongoing trend of consumers' increasing focus on value with significant opportunity to grow its store base, and expand margins.

10 Best Safest Stocks To Buy Right Now: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:
  • [By Rich Smith]

    Department of Defense contract officers on Tuesday announced a total of 13 contract awards worth more than $1 billion in aggregate. Notable winners among publicly traded companies included several Army contract awards, including:

    Britain's BAE Systems' (NASDAQOTH: BAESY  ) Land and Armaments division won a $28.7 million modification to a previously awarded contract to supply M88A2 heavy equipment recovery combat utility lift and evacuation system vehicles to the U.S. Army. Work on the contract should be complete by March 31, 2014. Raytheon's (NYSE: RTN  ) Thales Raytheon Systems joint venture was awarded a $23.1 million modification to a previously awarded contract to supply Sentinel Mode 5 Identification Friend or Foe kits, and spares, to the Army. Caterpillar (NYSE: CAT  ) , while not ordinarily considered a defense contactor, seems particularly well-suited for the contract it won -- a $10.8 million award to support Army Deployable Universal Combat Earthmover vehicles. Called "DEUCE" for short, these are essentially Army tractors, and so far the Army has ordered $67.1 million of them from Caterpillar under this contract.

    In addition to the new awards, the Pentagon also issued contract modifications to both BAE and to General Dynamics (NYSE: GD  ) on a pair of contracts to the effect that both firms are being given an additional six months to develop new prototype ground combat vehicles that the Army is considering as replacements�for its existing armored personnel carrier fleet. The value of GD's development contract on this project is said to have a maximum value of $180.4 million, while BAE's development contract maxes out at $159.5 million.

  • [By Ben Levisohn]

    More likely: Investors were looking for an excuse to sell, and found one. The selling was so strong that just two Dow components finished the day out of negative territory. Caterpillar (CAT) gained 0.1% to $85.86, while Alcoa (AA) finished unchanged at $8.16.

  • [By Matt Thalman]

    Despite having recently been upgraded by Longbow Research from "neutral" to "buy," shares of�Caterpillar (NYSE: CAT  ) are down 0.35% today. The main reason shares are falling today is the poor earnings report released by Cummins (NYSE: CMI  ) this morning. The company reported that sales dropped 19% in the company's engine and turbine unit. Cummins also blamed the poor results on weak oil, gas, and mining demand -- areas in which Caterpillar also operates.�

  • [By Matt Thalman]

    Other stocks that are getting hammered by the Chinese report include Alcoa (NYSE: AA  ) and Caterpillar (NYSE: CAT  ) . Both companies need strong construction markets, which China had been for years. Now that it seems the go-go days are coming to an end, each company will be faced with finding a new emerging market in which to sell its products.

Best Undervalued Companies To Watch In Right Now: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:
  • [By David Smith]

    It's now two to one among the big oil-field services companies regarding the North American oil and gas markets. Through Monday, Schlumberger (NYSE: SLB  ) , the largest company in the sector had expressed concern about the market and its short-term prospects, while Halliburton (NYSE: HAL  ) , the second-biggest member of the group, joined Baker Hughes (NYSE: BHI  ) in assessing our continent's activity levels more positively.

  • [By Rich Duprey]

    Oil and gas industry services providers Cameron International (NYSE: CAM  ) and Schlumberger (NYSE: SLB  ) announced today that their�OneSubsea joint venture had received all required regulatory approvals and that they'll close on the JV on�June 30.

  • [By David Smith]

    Similarly, the company's forward dividend yield could stand some boosting, another possibility made more feasible by an acquisitions slowdown. Currently, however, with a forward yield of 0.80%, Varco falls short of such other big oilfield services providers as Schlumberger (NYSE: SLB  ) , with its 1.80% forward yield, or Baker Hughes (NYSE: BHI  ) , at 1.40%. On that basis, it would constitute a distinct positive to see National Oilwell Varco's own anticipated yield raised to at least 1.00%, a level that would hardly result in an arduous payout for the company.

  • [By Arjun Sreekumar]

    Not surprisingly, the industry's annual capital spending has more than tripled over the past decade, coming in at $550 billion in 2011, according to oil-field services firm Schlumberger (NYSE: SLB  ) . Yet despite shelling out all that money, the industry as a whole has been unable to secure enough new reserves to offset production.

Thursday, October 17, 2013

Wednesday's Top News Headlines

Here are today's top news headlines from Fool.com. Check back throughout the day as this list is updated, and follow us on Twitter at TMFBreaking.

Merck Enters Share Repurchase Agreement With Goldman Sachs

Kraft Declares Quarterly Dividend

Lorillard Expands Share Buyback Scheme

Philip Morris International to Buy Out Mexican Partner

EU Leaders Discuss Fight Against Tax Evasion

Bernanke Signals Fed to Maintain Stimulus Efforts

Official: Treasury Played No Role in IRS Targeting

Lockheed Wins $52.9 Million Robot Sub Contract

Mondelez Keeps Quarterly Dividend at $0.13

Apache Keeps Dividend Steady

Xerox Copies Dividend for Second Quarter

W.R. Berkley Raises Dividend 11%

NetApp Initiates Dividend, Increases Stock Buyback, Cuts Jobs

IMF Calls on Britain to Do More for Growth

Flowers Foods Increases Dividend Rate, Splits Stock

Top Heal Care Companies To Watch In Right Now

Pandora Expands Facebook Sharing

Clearwire Board Supports Sprint's Increased Offer

Amid Signs of Turmoil, South Sudan Says Oil Will Flow

Crude Oil Supplies Fall, Gasoline Demand Remains Weak

Obama Threatens Veto of House Student Loan Plan

Home Sales Up, Inventory Still Limited

Gold Slips on Speculation Fed Will Cut Stimulus

A Divided Fed Wrestles With When to Slow Bond Buys


Tuesday, October 15, 2013

Top Clean Energy Stocks To Own Right Now

BP (NYSE: BP  ) recently announced it was bailing on its wind power initiatives. The company will sell its U.S. assets, which are spread across nine states and can generate about 2,600 megawatts of power. Estimates place the value of the assets at around $1.5 billion. After getting rid of its solar business, BP is sending a clear message about its commitment to renewables, which may lead investors to consider clean energy investments off-limits for big oil. In this video, Fool.com contributor Aimee Duffy reviews the BP move, and highlights the long-term potential of one oil major who is getting this bet right.

Not all renewable energy investments are created equal. Investors and bystanders alike have been shocked by First Solar's precipitous drop over the past two years. The stakes have never been higher for the company: Is it done for good, or ready for a rebound? If you're looking for continuing updates and guidance on the company whenever news breaks, The Motley Fool has created a brand-new report that details every must know side of this stock. To get started, simply click here now.

Top Clean Energy Stocks To Own Right Now: Constant Contact Inc.(CTCT)

Constant Contact, Inc. provides on-demand email marketing, social media marketing, event marketing, and online survey products primarily in the United States. It offers email marketing products, which allow customers to create, send, and track professional and affordable permission-based email marketing campaigns; and social media marketing products that allow customers to manage and optimize their presence across multiple social media networks. The company also provides event marketing products, which enable its customers to promote and manage events, communicate with invitees and registrants, capture and track registrations, and collect online payments; and online survey products that enable its customers to create and send surveys, and analyze the responses. In addition, it offers customer support services to customers and trailers through phone, chat, email, and social media. Further, the company provides ancillary services, such as custom services to customers who lik e its email campaigns, event promotions, or surveys prepared for them; and online training programs to educate participants on email marketing and social media marketing best practices, as well as a workshop programs. It markets its products directly for small organizations, including retailers, restaurants, law and accounting firms, consultants, non-profits, religious organizations, and alumni associations. The company was formerly known as Roving Software Incorporated and changed its name to Constant Contact, Inc. in 2006. Constant Contact, Inc. was founded in 1995 and is headquartered in Waltham, Massachusetts.

Advisors' Opinion:
  • [By CRWE]

    Constant Contact(R), Inc. (Nasdaq:CTCT), which helps more than half a million small organizations connect with their customers through a suite of online engagement marketing tools, today announced its chief financial officer, Harpreet Grewal, will present at Deutsche Bank�� 2012 dbAccess Technology Conference, to be held in Las Vegas.

  • [By Evan Niu, CFA]

    What: Shares of Constant Contact (NASDAQ: CTCT  ) have popped today by upwards of 19% after the company reported first-quarter earnings.

Top Clean Energy Stocks To Own Right Now: DryShips Inc (DRYS)

DryShips Inc. (DryShips), incorporated in September 2004, is a holding company engaged in the ocean transportation services of drybulk cargoes and crude oil worldwide through the ownership and operation of drybulk carrier vessels and oil tankers and offshore drilling services through the ownership and operation of ultra-deepwater drilling units. As of December 31, 2011, DryShips owned and operated two fifth generation ultra-deepwater, semi-submersible offshore drilling rigs, the Leiv Eiriksson and the Eirik Raude, and four sixth generation, advanced capability ultra-deepwater drillships, the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos. As of December 31, 2011, the Company owned and operated four Aframax tankers, Saga, Daytona, Belmar, and Calida, and one Suezmax tanker, Vilamoura. On August 24, 2011, DryShips acquired all of their shares of OceanFreight Inc. On October 5, 2011, DryShips completed the partial spin off of Ocean Rig UDW Inc. (Ocean Rig UDW). On November 3, 2011, the merger of Pelican Stockholdings Inc. (Pelican Stockholdings), its wholly owned subsidiary, and OceanFreight, was completed. In January 2013, it sold two of its tankers under construction at Samsung Heavy Industries, Esperona and Blanca.

As of December 31, 2011, DryShips operated its tankers under pooling arrangements that are managed by Heidmar Inc. As of March 6, 2012, the Company owned, through its subsidiaries, a fleet of 36 drybulk carriers, consisting of nine Capesize, 25 Panamax and two Supramax vessels, which have a combined deadweight tonnage of approximately 3.53 million deadweight tonnage and an average age of approximately eight years; six drilling units, comprised of two modern, fifth generation, advanced capability ultra-deepwater semisubmersible offshore drilling rigs and four sixth generation, advanced capability ultra-deepwater drillships, and five tankers, comprised of four Aframax and one Suezmax tankers.

The Company�� drybulk flee! t principally carries a variety of drybulk commodities, including major bulk items, such as coal, iron ore, and grains, and minor bulk items, such as bauxite, phosphate, fertilizers and steel products. During the year ended December 31, 2011, DryShips sold the drybulk vessel Primera; contracted for and completed the sale of the drybulk vessels La Jolla, Conquistador, Brisbane, Samsara and Toro; took delivery of its four sixth-generation, ultra-deepwater advanced capability sister drillships constructed by Samsung Heavy Industries Co. Ltd. (Samsung), the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos; took delivery of three newbuilding Aframax tankers, Saga, Daytona and Belmar, and one newbuilding Suezmax tanker, Vilamoura, and acquired four Capesize vessels, MV Robusto, MV Cohiba, MV Montecristo and MV Partagas, two Panamax vessels, the MV Topeka and the MV Helena. DryShips contracted for and completed the sale of the drybulk vessels Avoca and Padre, which were delivered to their new owners, on February 14, 2012 and February 24, 2012, respectively.

Drybulk Operations

The Company manages the deployment of its drybulk fleet between long-term and short-term time charters. A time charter is a contract to charter a vessel for a fixed period of time at a specified or floating daily or index-based daily rate and can last from a few days to several years. A spot charter refers to a voyage charter or a trip charter or a short-term time charter. Under a bareboat charter, the vessel is chartered for a stipulated period of time, which gives the charterer possession and control of the vessel, including the right to appoint the master and the crew.

Offshore Drilling Operations

In January 2012, following the completion of the contract with Tullow Oil plc (Tullow Oil) contract, discussed below, the Eirik Raude commenced a contract with Anadarko Cote d��voire Company (Anadarko) for the drilling of two wells offshore West ! Africa. I! ts offshore drilling operations consist of the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos. As of December 31, 2011, the Ocean Rig Corcovado was employed under a three-year contract, plus a mobilization period, with Petroleo Brasileiro S.A. (Petrobras Brazil) for drilling operations offshore Brazil. The Ocean Rig Olympia is operating under contracts to drill a total of five wells for exploration drilling offshore Ghana and the Ivory Coast. The Ocean Rig Poseidon commenced a contract with Petrobras Tanzania, a company related to Petrobras Oil & Gas B.V. (Petrobras Oil & Gas).

The Ocean Rig Mykonos commenced a three-year contract, plus a mobilization period, with Petrobras Brazil, on September 30, 2011, for drilling operations offshore Brazil. DryShips�� wholly owned subsidiary, Ocean Rig AS, provides supervisory management services, including onshore management, to its operating drilling rigs and drillships. DryShips also has contracts to provide offshore drilling services and drilling units.

Tanker Operations

The Company employs its Aframax tankers Saga, Daytona, Belmar and Calida, in the Sigma tanker pool, which consists of 46 Aframax tankers, with fourteen different pool partners. It employs its Suezmax tanker, Vilamoura, in the Blue Fin tanker pool, which consists of 18 Suezmax tankers with eight different pool partners.

Advisors' Opinion:
  • [By Dan Caplinger]

    Finally, beyond the Dow, DryShips (NASDAQ: DRYS  ) has fallen more than 6% as investors anticipate the shipping company's earnings release after today's close. Recent optimism has spurred greater interest in DryShips and its peers, but it'll take a long time for anticipated improvement in economic conditions to make their effects felt among shippers. With its ongoing financial challenges, DryShips needs to give encouraging guidance for its future if it wants to keep investors assured that the stock is a good investment.

  • [By Matthew Smith]

    We have received an increasing number of questions over the past week or two regarding the dry bulk shippers and whether one should be looking to those names now. To be honest we pay little attention to the names these days as the entire industry is awash in excess capacity and many great companies were turned into awful companies during the most recent boom-bust cycle. One could look to the index for guidance, but no longer does that even give the real story of the economy as the industry has so much capacity any time a rise occurs it seems to be quickly lost as competition increases. So for those readers who want to go long DryShips (DRYS), please refrain.

  • [By Nickey Friedman]

    DryShips (NASDAQ: DRYS  ) is easily the most famous dry shipping compnay, and perhaps one of the least risky ways to invest in shipping. Over 75% of its sales as of last quarter actually come from its drilling business. Analysts already expect the company's 2014 to be well into the black, so any extra rate increases should make a material percentage increase in its bottom line. DryShips currently trades at less than half book value. Before the collapse in 2008, it traded as high as over $100 per share.

Top 10 Performing Companies To Own In Right Now: Presstek Inc.(PRST)

Presstek, Inc., together with its subsidiaries, engages in the design, manufacture, and marketing of digital-based offset printing solutions to commercial and in-plant segments of the printing industry. The company provides digital offset presses and printing plates, computer-to-plate (CTP) systems, workflow solutions, chemistry-free printing plates, no preheat thermal CTP plates, and a line of prepress and press room consumables, as well as distributes third-party products. Its digital offset presses include Presstek 75DI Press, a 6-up or B2 format direct-to-press machine; Presstek 52DI Press, a landscape format 52cm direct-to-press machine; Presstek 52DI-AC Press, a landscape format 52cm direct-to-press machine with an in-line aqueous coater; and Presstek 34DI Press, a portrait format 34cm direct-to-press machine. The company?s printing plates comprise ProFire Digital Media, which is designed to work as a system with the laser imaging and press components of ProFire and ProFire Excel enabled DI presses; PearlDry Plus that is designed to work in conjunction with previous generation DI presses; and PearlDry, which is used for direct-to-press applications that require an aluminum-backed plate. Its CTP products consist of Compass 4000, Compass 8000, Dimension Pro, Dimension Excel, Vector FL52, DPM Pro 400, and Digital PlateMaster series plate setters; and CTP plates include Anthem Pro, Freedom Pro, Aurora Pro, and Aeon brand CTP thermal plates. The company?s workflow products comprise Latitude, an automated prepress workflow solution powered by EskoArtwork Odystar; Momentum RIP, which is designed to drive Presstek?s CTP and DI systems, as well as ABDick branded CTP systems; and Momentum Pro, an integrated workflow and RIP. It markets its products through direct sales force, independent graphic arts dealers, and strategic OEM partners worldwide. Presstek, Inc. was founded in 1987 and is headquartered in Greenwich, Connecticut.

Top Clean Energy Stocks To Own Right Now: H.r. Owen(HRO.L)

H.R. Owen Plc operates as a franchised motor dealer in the United Kingdom. The company sells new and used cars of various brands. It also engages in the servicing of vehicles, sale of parts, and body shop repairs. The company has strategic partnerships with Ferrari and The Berkeley. H.R. Owen Plc was founded in 1932 and is based in London, the United Kingdom.

Top Clean Energy Stocks To Own Right Now: BG Medicine Inc.(BGMD)

BG Medicine, Inc., a life sciences company, engages in the discovery, development, and commercialization of diagnostic tests based on biomarkers in the United States. Its product pipeline includes BGM Galectin-3, a diagnostic test for heart failure that measures galectin-3 levels in blood plasma or serum; AMIPredict, a multivariate biomarker blood-based test for atherothrombotic cardiovascular disease; and LipidDx, a blood-based protein assay for the management of patients with lipid disorders. The company also offers TNF alpha blockers comprising Enbrel, Remicade and Humira, which are treatments indicated for autoimmune diseases, such as rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, and Crohn?s disease. It has strategic collaborations and initiatives with pharmaceutical companies and other healthcare organizations, including Abbott Laboratories; ACS Biomarker B.V.; Humana Inc.; Merck & Co., Inc.; and Laboratory Corporation of America. The company was formerly known as Beyond Genomics, Inc. and changed its name to BG Medicine, Inc. in October 2004. BG Medicine, Inc. was founded in 2000 and is headquartered in Waltham, Massachusetts.

Monday, October 14, 2013

Harsco Gains 5% as BB&T Says Buy “Turnaround Story”

Shares of Harsco (HSC) have gained today after BB&T Capital Markets upgraded its shares to Buy from Hold.

Analysts Robert Norfleet III and Basil Jones III explain the decision to raise their rating:

 We believe that the strategic transformation of HSC’s portfolio, as evidenced by the recently announced sale of its Infrastructure segment, as well as additional best practices and productivity enhancements (LEAN, etc.) should result in improved financial metrics, valuation, and, ultimately, a less complex business structure. While our non-consensus call is not primarily based on an expedited improvement in financial performance, it is a reflection of our confidence in the new management team and its ability to deliver value to shareholders through asset repositioning, improved ROICs and free cash flow generation. HSC remains a “turnaround story,” but we believe the market is underestimating out-year earnings growth, which will be driven by the Brand Energy JV, lower corporate expenses, improved margins in Metals & Minerals and the likelihood of an accretive acquisition.

Shares of Harsco have gained 4.7% to $26.43 today at 1:16 p.m., outpacing other construction & engineering companies. Dycom (DY) has advanced 0.5% to $30, KBR Inc. (KBR) has ticked up 0.1% to $33.03, Worthington Industries (WOR) has risen 2.8% to $38.85 and Tutor Perini (TPC) has rallied 3.6% to $22.46.