Monday, March 31, 2014

BlackBerry Ltd. Earnings: The Fight Goes On

Although it's given up some of its gains in the last month or so, shares of Canadian smartphone marker BlackBerry (NASDAQ: BBRY  ) remain firmly ahead of the broad market so far in 2014,  and for good reason.

Under new CEO John Chen, BlackBerry's progress in adapting its business model to its current circumstances has been nothing short of remarkable when compared to the paltry pace of change from past management regimes.

And in keeping its recent hot streak alive, BlackBerry appears to have notched another win, at least in the market's eyes, when it reported its FY Q4 '14 earnings. So without further ado, let's dig into the particulars of BlackBerry's most recent report.

Shifting sands at BlackBerry
As you might expect, BlackBerry's report contains its fair share of good and bad news.

At a higher strategic level, this report is only so useful as a yardstick in sizing up BlackBerry's financial performance as it is in trying to wrap one's head around the progress BlackBerry's making in essentially gutting its old business model in favor of the vastly more sustainable approach favored by Chen. When compared to the same quarter last year, BlackBerry's revenue utterly fell off a cliff, declining by 64%.

Source:BlackBerry

However, it's important to remember that BlackBerry's financial performance in the same quarter last year is that of almost a very different company, so much of the usual year-over-year benchmarking ultimately doesn't reveal much.

That's where BlackBerry Q3 '14 comps come in. And although they mark the first quarter in which BlackBerry initiated its new software and services intensive business model, and thus still limited on how much they can truly say about BlackBerry's new long-term potential, they're without question the best basis for comparison for investors.

Unfortunately, comparing BlackBerry's Q4 '14 numbers to the prior quarters' still paints a pretty bleak situation about the current goings on at BlackBerry. See for yourself.

 

Q3 

Q4

% Change

Total Revenue

 $1,200

 $976

-18.7%

Hardware

 $480

 $361

-24.8%

Services

 $636

 $547

-14.1%

Software

 $84

 $68

-18.7%

Source: BlackBerry Investor Relations

Falling hardware revenue should be expected as its current suite of phones have proven remarkably unpopular and as BlackBerry awaits the launch of several cheap devices set to launch in the coming months that will ideally play to its strengths in emerging markets. 

However, the on-going challenges with both services and software revenues does concern me. BlackBerry's drawn a bit of a line in the sand, saying it's now a mobile software company where its hardware is merely a gateway to its software platforms. BlackBerry probably is, and should, be playing the long game in first seeking software market share before focusing on profits. However, seeing a sales upswing would have gone a long way in encouraging me they're on the right track.

BlackBerry didn't give much in the way of specific guidance either, merely saying it's targeting cash flow breakeven within the next 12 months. In order to do this, BlackBerry will clearly need to begin to monetize its software and services to a greater degree than it has already. This is certainly possible, but an essential ingredient if BlackBerry stands even the slightest chance of achieving the goal it posed in its outlook.

Still fighting
This report certainly didn't indicate the kind of success it will take to keep BlackBerry afloat over the long-term. However taken in fuller context, it's passable.

BlackBerry still has $2.7 billion in cash on its books, so it remains out of immediate danger of a some kind of funding shortfall. BlackBerry's also notched a few noteworthy wins for its software adoption in areas like smart cars and mobile messaging. The ultimate test will be whether BlackBerry can translate those wins into actual profits, and the uncertainty there is ultimately what's keeping away from BlackBerry's stock today.

However, all in all, BlackBerry lives to fight another day.

Are you ready for this $14.4 trillion revolution?
Let's face it, every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC-maker Dell in the late 1980s, before the consumer computing boom. Or purchasing stock in e-commerce pioneer Amazon.com in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap "pure-play" and then watch as it grows in EXPLOSIVE lockstep with its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 TRILLION industry. Click here to get the full story in this eye-opening report.

Why the Street Should Love Microsemi'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 Microsemi (Nasdaq: MSCC  ) , 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, Microsemi generated $135.0 million cash while it booked net income of $29.1 million. That means it turned 13.2% of its revenue into FCF. That sounds pretty impressive.

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 Microsemi 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.

10 Best Stocks To Invest In Right Now

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 28.6% of operating cash flow coming from questionable sources, Microsemi 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 20.7% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 25.1% 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.

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Saturday, March 29, 2014

Lululemon: New CEO Big Reason for Bullishness?

Yesterday, shares of Lululemon Athletica (LULU) gained 6.2% despite disappointing earnings. Was the move justified or has the market gone crazy? Today, more analysts weighed in.

Getty Images

It's no secret that many analysts seem to really love the company, and after yesterday's report, they finally found someone deserving of that love: Lululemon’s new CEO, Laurent Potdevin.

Take for example, Olivier Chen of Citigroup, who gave readers a yoga metaphor, declaring the company's "journey still in progress" and gave mad props to Potdevin. He writes:

[Potdevin] adds agility and speed in decision making, global urgency, & brand + product experience, which will protect guidance. New marketing efforts should improve traffic particularly in the second half as Lululemon further utilizes brand ambassadors, leverages media, and focuses on enhancing guest interaction. Although stock is not inexpensive we believe downside is protected given continued strength of brand, global and store growth runway, dominance in a technical athletic cycle, and M&A possibility (with considerable synergies possible in a deal scenario).

Brian Tunick of J.P. Morgan also gave Potdevin a shout-out:

Potdevin addressed head-on his plans to return lulu to growth mode in an increasingly crowded field, including a more offensive product strategy after a defensive 2013, a focus on grassroots marketing and store experience, while building the foundation for future global growth.

Not all analysts joined in on the Potdevin lovefest, however. Count Kimberly Greenberger of Morgan Stanley among the unconvinced. She writes:

While encouraged by Lululemon's re-focus on long-term product development and brand fortification, we think increased competition, mix shift to lower margin items and incremental marketing and supply-chain spend lower Lululemon's growth profile.

Shares of Lululemon rose 1.4% to $51.89 today, while Nike (NKE) gained 0.3% to $73.54, Under Armour (UA) advanced 0.5% to $115.22 and the Gap (GPS), whose Athleta brand competes head on with Lululemon, finished up 0.7% at $40.17.

Friday, March 28, 2014

Best Promising Stocks To Invest In 2014

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One of the most exciting sectors in the stock market is biotechnology. No other sector has the same promise of extraordinary rewards for investors as biotech stocks, to say nothing of the patients who will benefit from the new drugs and treatments that are developed.

Best Promising Stocks To Invest In 2014: Stemline Therapeutics Inc (STML)

Stemline Therapeutics, Inc. (Stemline), incorporated on August 8, 2003, is a clinical-stage biopharmaceutical company focused on discovering, acquiring, developing and commercializing therapeutics that target both cancer stem cells (CSCs) and tumor bulk. The Company is developing two clinical-stage product candidates, SL-401 and SL-701, for which it holds global marketing rights. The indication for SL-401, a biologic-drug conjugate, is acute myeloid leukemia (AML). The indications for SL-701, a synthetic peptide vaccine, are pediatric and adult brain cancer. It has a platform, StemScreen, for the discovery of CSC-targeted compounds, from which it has discovered or validated several of its clinical and preclinical product candidates. Stemline�� StemScreen consists of StemScreen-1 and StemScreen-2 for the identification of CSC-directed compounds.

SL-301 is a small molecule gamma-secretase inhibitor that inhibits Notch, a pathway expressed by CSCs and tumor bulk of multiple cancer types. SL-101 is a monoclonal antibody-based (mAb -based) compound that targets CD123 and has shown in vitro activity against certain hematologic cancers. SL-201 is a small molecule active against certain hematologic and solid tumor types. SL-601 is a mAb-based compound that targets a cell surface marker on bladder CSCs, which is also expressed on a variety of other solid tumor types. It has also in-licensed certain intellectual property directed to mAb-based therapeutics to validated oncology targets, including Glypican-3, Tie-1, CD133, Frizzled, Smoothened and Patched.

SL-401 - An IL-3R-Directed Compound Targeting Cancer Stem Cells and Tumor Bulk

SL-401 is a clinically active biologic-drug conjugate consisting of human interleukin-3 (IL-3) genetically linked to a truncated version of diphtheria toxin. SL-401 targets the IL-3 receptor (IL-3R), which is overexpressed on both the CSCs and tumor bulk of multiple hematologic cancers, including AML. SL-401 has demonstrated preclinical in vit! ro and in vivo activity against both leukemia blasts (which includes tumor bulk) and CSCs of a range of human leukemia cell lines and primary leukemia cells from patients.

SL-701

SL-701 is a clinically active synthetic peptide vaccine that targets several epitopes on CSCs and tumor bulk of brain cancer. In two completed Phase 1/2 clinical trials, SL-701 demonstrated single agent anti-tumor activity in pediatric patients with newly diagnosed brainstem glioma (BSG) and other high-grade gliomas (HGGs) and in adult patients with refractory or recurrent GBM, and other HGGs.

StemScreen-1

StemScreen-1 is a drug discovery platform designed to identify CSC-targeted compounds based on the isolation of CSCs and evaluation of CSC gene expression profiles. CSCs are isolated from primary tumor tissue or cell lines, and then subjected to gene expression analysis using a variety of technologies, including microarray. A control tissue, such as normal bone marrow is analyzed as a comparator against the gene expression profile of the isolated CSCs. These data are then interfaced with an information base of compounds and their mechanisms of action (that is which gene products and pathways they impact). It has utilized StemScreen-1 to discover a number of its preclinical drug candidates. These include SL-201, SL-301, and SL-601. In addition, SL-401 demonstrated activity against CSCs as determined by both an in vitro colony formation and in vivo animal implantation assay, thereby validating certain StemScreen-1 anti-CSC assays.

StemScreen-2

StemScreen-2 is a high throughput drug discovery platform it is developing to discover anti-CSC compounds. StemScreen-2 utilizes a cell-based assay that can track and follow CSCs in their natural state during high throughput screening. In particular, StemScreen-2 utilizes a CSC-specific promoter linked to a reporter as a method for identifying and following CSCs in their native environment of surrounding tumor b! ulk. In t! his way, StemScreen-2 enables the identification of compound hits, in a high throughput manner, with anti-CSC activity.

The Company competes with Boston Biomedical, Inc., Eclipse Therapeutics, Inc., OncoMed Pharmaceuticals, Inc., Verastem, Inc., Astellas Pharma US, Inc., Boehringer Ingelheim GmbH, Dainippon Sumitomo Pharma Co. Ltd., Geron Corp., GlaxoSmithKline plc, ImmunoCellular Therapeutics, Ltd, Macrogenics Inc., Amgen, Inc., Pfizer Inc., Roche Holding AG, Sanofi U.S. LLC., Cyclacel Pharmaceuticals, Inc., Sunesis Pharmaceuticals Inc., Clavis Pharma ASA, Ambit Biosciences Corporation, Celgene Corporation, Eisai Co. Ltd., Celator Pharmaceuticals, Inc., Merck & Co., Inc., Eisai Co., Inc., Roche Holding AG, Novartis AG and Celldex Therapeutics, Inc.

Advisors' Opinion:
  • [By David Zeiler]

    3. Stemline Therapeutics Inc. (Nasdaq: STML): This biotech develops drugs that target cancer stem cells and tumors. Stemline went public January 29 at $10 a share and rose just 11.78% on its first day. But STML has climbed steadily since, and currently trades at $37.46, up 274.6% from its IPO price.

Best Promising Stocks To Invest In 2014: Marlin Midstream Partners LP (FISH)

Marlin Midstream Partners, LP, incorporated on April 19, 2013, develops, owns, operates and acquires midstream energy assets. The Company provides natural gas gathering, transportation, treating and processing services and One million cubic feet (NGL) transportation services, which it refer to as its midstream natural gas business, and crude oil transloading services, which it refer to as its crude oil logistics business. The Company operates in two segments: Midstream Natural Gas and Crude Oil Logistics. Its primary midstream natural gas assets consist of two related natural gas processing facilities located in Panola County, Texas; a natural gas processing facility located in Tyler County, Texas; two natural gas gathering systems connected to its Panola County processing facilities, and two NGL transportation pipelines that connect its Panola County and Tyler County processing facilities to third party NGL pipelines.

Midstream Natural Gas

The Company's primary midstream natural gas assets consist of two related natural gas processing facilities located in Panola County, Texas with an approximate design capacity of 220 One million cubic feet per day (MMcf/d), a natural gas processing facility located in Tyler County, Texas with an approximate design capacity of 80 MMcf/d, two natural gas gathering systems connected to its Panola County processing facilities that include approximately 65 miles of natural gas pipelines with an approximate design capacity of 200 MMcf/d, and two NGL transportation pipelines with an approximate design capacity of 20,000 Stock tank barrel per day (Bbls/d) that connect its Panola County and Tyler County processing facilities to third party NGL pipelines. Its primary midstream natural gas assets are located in long-lived oil and natural gas producing regions in East Texas and gather and process NGL-rich natural gas streams associated with production primarily from the Cotton Valley Sands, Haynesville Shale, Austin Chalk and Eaglebine formations.

Crude Oil Logistics

The Company's crude oil logistics assets consist of two crude oil transloading facilities: its Wildcat facility located in Carbon County, Utah, where it operates one skid transloader and two ladder transloaders, and its Big Horn facility located in Big Horn County, Wyoming, where the Company operates one skid transloader and one ladder transloader. Its transloaders are used to unload crude oil from tanker trucks and load crude oil into railcars and temporary storage tanks. It�� Wildcat and Big Horn facilities provide transloading services for production originating from well-established crude oil producing basins, such as the Uinta and Powder River Basins. Its skid transloaders each have a transloading capacity of 475 Stock tank barrel per hour (Bbls/hr), and its ladder transloaders each have a transloading capacity of 210 Bbls/hr.

Advisors' Opinion:
  • [By Aimee Duffy]

    The surge of master limited partnership initial public offerings continued this week, as Phillips 66 Partners (NYSE: PSXP  ) and Marlin Midstream Partners� (NASDAQ: FISH  ) commenced trading. In this video, Fool.com contributor Aimee Duffy looks at both of these IPOs, breaking down the potential opportunities for investors.

  • [By Robert Rapier] In last week’s MLP Investing Insider (MLPII) I took a look at the MLP IPOs from the first half of 2013. Today I review the half dozen that have debuted in the second half of 2013.

    Phillips 66 Partners (NYSE: PSXP) launched on July 23 as one of the most anticipated IPOs this year. PSXP owns some of the midstream logistics assets of its sponsor, Phillips 66 (NYSE: PSX). PSXP has yet to announce its first distribution, but according to the IPO prospectus the minimum yield will be $0.85 per unit on an annualized basis. At the current unit price, this equates to a minimum annual yield of 2.8 percent, which is mainly a function of the huge run-up in unit price between the IPO pricing and today’s unit price. If the distribution does come in near the minimum, the unit price will almost certainly correct downward following the announcement.

    Marlin Midstream Partners (Nasdaq: FISH) launched on July 26. The partnership provides natural gas gathering, transportation, treating and processing services, NGL transportation services and crude oil transloading services. Marlin’s assets include three natural gas processing facilities in Texas, two natural gas gathering systems, two NGL transportation pipelines, and two crude oil transloading facilities. Marlin expects most of the gross margin to be generated under fee-based, minimum volume commercial agreements.

    Marlin targets a coverage ratio of 1.10x to support distributions. Marlin’s partnership agreement provides for a minimum quarterly distribution of $0.35 per unit for each whole quarter, or $1.40 per unit on an annualized basis. The prorated distribution for the two months of the recently concluded quarter since tje IPO should be announced soon. The minimum annual yield based on the current unit price is projected at 7.7 percent. The unit price has declined 6 percent since the IPO.

Top Mid Cap Companies To Buy For 2014: Pazoo Inc (PZOO)

Pazoo, Inc., formerly IUCSS, Inc., incorporated on November 16, 2010, is a development-stage company. The Company is an online retailer and distributer of nutritional foods/supplements, wellness goods, and fitness apparel.

As of December 31, 2011, the Company�� source of revenue was through www.pazoo.com. The Company offers a range of products through various catalogs, such as health and beauty, vitamins and supplements, apparel, accessories, food and beverages, fitness and sports equipments, gifts, videos and books, and pet wellness.

Advisors' Opinion:
  • [By Bryan Murphy]

    For those traders who were lucky and smart enough to be in an Arotech Corporation (NASDAQ:ARTX) before today, then congratulations - you're up at least 38% on your position. Now it's time to get out. Conversely, if you're looking for a new name to get into (or perhaps looking for a place to park your ARTX proceeds), then you may want to consider Pazoo Inc. (OTCBB:PZOO)... a tiny online retailer of health and fitness goods. PZOO has dropped several tell-tale hints that more upside is on the way.

Best Promising Stocks To Invest In 2014: Brinker International Inc (EAT)

Brinker International, Inc. (Brinker), incorporated on September 30, 1983, owns, develops, operates and franchises the Chili�� Grill & Bar (Chili��) and Maggiano�� Little Italy (Maggiano��) restaurant brands. As of June 27, 2013 (fiscal 2013), the Company's system of Company-owned and franchised restaurants included 1,591 restaurants located in 50 states, and Washington, D.C. It also has restaurants in the Bahrain, Brazil, Canada, Columbia, Costa Rica, Dominican Republic, Ecuador, Egypt, El Salvador, Germany, Guatemala, Honduras, India, Indonesia, Japan, Jordan, Kuwait, Lebanon, Malaysia, Mexico, Oman, Peru, Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Korea, Syria, Taiwan, United Arab Emirates and Venezuela.

Chili�� Grill & Bar

Chili�� operates in the Bar and Grill category of casual dining. The Company has operations worldwide, with locations in 32 foreign countries and two United States territories. Chili�� menu features items, such as Baby Back Ribs smoked in-house, Big Mouth Burgers, Sizzling Fajitas, hand-battered Chicken Crispers and house-made Chips and Salsa. The all-day menu offers a range of appetizers, entrees and desserts. A special lunch section is available on weekdays. In addition to its flavorful food, Chili�� offers a line of alcoholic beverages available from the bar, including Margaritas and draft beer. During fiscal 2013, food and non-alcoholic beverage sales constituted approximately 86.1% of Chili�� total restaurant revenues, with alcoholic beverage sales accounted for the remaining 13.9%.

Maggiano�� Little Italy

Maggiano�� is a full-service, casual dining Italian restaurant brand. Its Maggiano�� restaurants feature individual and family-style menus, and its restaurants also have banquet facilities designed to host party business or social events. It has lunch and dinner menu offering chef-prepared, classic Italian-American fare in the form of appetizers, entrees with portions of pasta, ch! icken, seafood, veal and prime steaks, and desserts. The Company�� Maggiano�� restaurants also offer a range of alcoholic beverages, including wines. In addition, Maggiano�� offers a full carryout menu, as well as local delivery services. During fiscal 2013, food and non-alcoholic beverage sales constituted approximately 83.0% of Maggiano�� total restaurant revenues, with alcoholic beverage sales accounted for the remaining 17.0%.

Advisors' Opinion:
  • [By CNBC]

    Tony Tribble, Invision/AP Forget about Bloomin' Onions or boneless wings, for many consumers, the choice of where to dine often comes down to a different factor: which restaurant has the best booze. "Alcoholic beverages can be a key driver of traffic, differentiation, and loyalty," said David Decker, president of Consumer Edge Insight. According to the firm, two factors that keep customers coming back are "selection" and "pricing." Consumer Edge Insight recently surveyed restaurant customers to find out which casual-dining spots generated the most loyalty with their alcoholic beverages. Taking the top spot for "selection" was Buffalo Wild Wings (BWLD), with 29 percent of those surveyed saying they were "most likely to visit it most often due to its good selection of alcoholic beverages." Applebee's (DIN) took the second spot, with 24 percent, and Outback Steakhouse (BLMN) and T.G.I. Friday's tied for third place with 22 percent each. Prices also keep customers coming back to Buffalo Wild Wings. When asked which casual-dining brand they were "most likely to visit most often due to its good prices of alcoholic beverages," Buffalo Wild Wings came out on top with 30 percent. Chili's (EAT) was No. 2 at 23 percent, and Ruby Tuesday (RT) was third with 22 percent. Buffalo Wild Wings has always made alcohol a part of its experience, even making it part of its tagline: "Wings.Beer.Sports." The chain is the No. 1 account for more than 50 different beer brands and recently launched Game Changer, a new beer in a partnership with Redhook Brewery. Priced between cheaper domestic lagers and pricier craft beers, Game Changer became the fourth-most-popular draft beer at company-owned locations within two weeks of its release. "Among casual-dining restaurants, Buffalo Wild Wings is seeing the greatest positive effect in terms of building customer loyalty with its alcohol offerings," Decker said. "There are many steps other restaurants can take to improve their alcoho

  • [By Rich Duprey]

    Restaurant operator�Brinker International� (NYSE: EAT  ) �announced yesterday�its second-quarter dividend of $0.20 per share, the same rate it's paid for the last three quarters when it raised the payout 25% from $0.16 per share.

Best Promising Stocks To Invest In 2014: CannaVEST Corp (CANV)

CannaVEST Corp., formerly Foreclosure Solutions, Inc., incorporated on December 9, 2010, is engaged in the business of developing, producing, marketing and selling end consumer products to the nutriceutical industry containing the hemp plant extract, Cannabidoil (CBD). The Company produces raw ingredients for neutraceutical markets. This substance can be used with foods and nutritional supplements for consumer health and wellness benefits, as well as in the pharmaceutical industry. On March 4, 2013, the Company acquired KannaLife Sciences, Inc. On December 31, 2012, the Company acquired certain assets of PhytoSPHERE Systems, LLC (PhytoSPHERE). It also secured the license to the name PhytoSPHERE and PhytoSPHERE Systems for use in the development and commercialization of hemp-based products.

The Company focuses to develop applicable raw ingredients, and provide raw ingredients for the production and development of multiple existing and developing product applications. Its focus is to produce, market and distribute hemp-based consumer products, as well as acquire existing businesses involved in the industrial hemp industries.

Advisors' Opinion:
  • [By John Udovich]

    The Marijuana Index is Really Getting Stoned. The Marijuana Index, which is the first and only registered equity tracking index for marijuana stocks, cannabis stocks and hemp stocks,�experienced significant volume and price fluctuations throughout the month of February when is started the month at the $25 level only to close the month at $56.21 for a 125% gain as some marijuana stocks experienced all time highs. Notable gainers included Abattis Bioceuticals (OTCMKTS: ATTBF)�being up 194%, Advanced Cannabis Solutions (OTCQB: CANN) being up 132% and CannaVest (OTCMKTS: CANV) being up 116%. You can see all of the�Marijuana Index�� advancers and decliners at http://www.marijuanaindex.org.

Best Promising Stocks To Invest In 2014: Urban Outfitters Inc.(URBN)

Urban Outfitters Inc. operates lifestyle specialty retail stores under the Urban Outfitters, Anthropologie, Free People, Terrain, and BHLDN brand names in the United States, Canada, and Europe. Its Urban Outfitters stores sell women?s and men?s fashion apparel, footwear, accessories, and gifts, as well as apartment wares, such as rugs, pillows, shower curtains, books, candles, and novelties to young adults aged 18 to 28; and Anthropologie stores provide women?s casual apparel and accessories, shoes, gifts, and decorative items, as well as home furnishings, including furniture, rugs, lighting, antiques, table top items, and bedding to women aged 28 to 45. The company?s Free People stores primarily offer Free People branded merchandise mix of casual women?s apparel, intimates, shoes, accessories, and gifts to young contemporary women aged 25 to 30; Terrain store provides lifestyle home and garden products, antiques, live plants, flowers, wellness products, and accessori es, as well as landscape and design service solutions; and BHLDN store offers a range of weeding collections consisting of wedding gowns, bridesmaid frocks, party dresses, assorted jewelry, headpieces, footwear, lingerie, and decorations. As of January 31, 2012, it operated 197 Urban Outfitters stores, 168 Anthropologie stores, 62 Free People stores, 1 Terrain garden center, and 1 BHLDN store. The company also operates a wholesale business under the Free People brand name that distributes apparel to other retailers and department stores in the United States. In addition, it markets its brands directly to consumers through its e-commerce Websites, including urbanoutfitters.com, anthropologie.com, freepeople.com, urbanoutfitters.co.uk, urbanoutfitters.de, urbanoutfitters.fr, anthropologie.eu, shopterrain.com, and bhldn.com, as well as through its Urban Outfitters, Anthropologie, and Free People catalogs. The company was founded in 1970 and is based in Philadelphia, Pennsylvani a.

Advisors' Opinion:
  • [By Sue Chang]

    Urban Outfitters (URBN) �is forecast to post third-quarter earnings of 45 cents a share.

  • [By Paul Ausick]

    Before markets open Tuesday morning we are scheduled to hear results from Perfect World Co. Ltd. (NASDAQ: PWRD), Urban Outfitters Inc. (NASDAQ: URBN), Barnes & Noble Inc. (NYSE: BKS) which announced a new video app today, Best Buy Co. Inc (NYSE: BBY) which is included in our preview of this week�� results from retailers, Dick�� Sporting Goods Inc. (NYSE: DKS), Home Depot Inc. (NYSE: HD), J.C. Penney Co. Inc. (NYSE: JCP), and Trina Solar Ltd. (NYSE: TSL).

  • [By Monica Gerson]

    Breaking news

    Quest Diagnostics (NYSE: DGX) today announced that it has entered into a definitive purchase agreement under which Quest will acquire Summit Health. Terms of the transaction were not disclosed. To read the full news, click here. Bayer HealthCare Pharmaceuticals (OTC: BAYRY) and Onyx Pharmaceuticals, an Amgen subsidiary (NASDAQ: AMGN), today announced that a Phase 3 trial evaluating the investigational use of NEXAVAR庐 (sorafenib) tablets as an adjuvant treatment for patients with hepatocellular carcinoma (HCC), or liver cancer, who had no detectable disease after surgical resection or local ablation, did not meet its primary endpoint of improving recurrence-free survival. To read the full news, click here. Barrick Gold (NYSE: ABX) today announced that, further to its release of March 10, 2014, it has completed the divestment of 41.0 million ordinary shares in African Barrick Gold plc, representing in aggregate approximately 10.0 percent of the issued ordinary share capital of ABG, at a price of 275 pence per ordinary share, raising gross proceeds of approximately GBP 113 million (US$188 million). To read the full news, click here. Urban Outfitters (NASDAQ: URBN) dropped in after-hours trading after the company released its fourth quarter results. The firm reported a Q4 EPS of $0.59 versus the Street estimate of $0.55. To read the full news, click here.

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Best Promising Stocks To Invest In 2014: Coca Cola Femsa S.A.B. de C.V. (KOF)

Coca Cola FEMSA, S.A.B. de C.V. produces, markets, and distributes Coca-Cola trademark beverages and brands. It offers colas under Coca-Cola, Coca-Cola Light, and Coca-Cola Zero brands; flavored sparkling beverages under Aquarius Fresh, Chinotto, Crush, Fanta, Fresca, Frescolita, Hit, Kuat, Lift, Mundet, Quatro, Simba, and Sprite brands; water under Alpina, Brisa, Ciel, Crystal, Kin, Manantial, and Nevada brands; Aquarius, a flavored water; Hi-C, a juice-based beverage; and Powerade, an isotonic, as well as ready to drink tea products under Nestea and Matte Leao brands. The company also sells and distributes the Kaiser beer brand. It operates in Mexico, Central America, Colombia, Venezuela, Brazil, and Argentina. The company was founded in 1979 and is based in Mexico, Mexico. Coca-Cola FEMSA S.A.B de C.V. operates as a subsidiary of Fomento Economico Mexicano, S.A.B. de C.V.

Advisors' Opinion:
  • [By Eric Volkman]

    Put another tick in the acquisition column for Coca-Cola FEMSA (NYSE: KOF  ) . The Mexico-based company, which says it is the largest bottler of Coca-Cola products on the planet, has signed a deal to acquire Brazilian peer Companhia Fluminense de Refrigerantes. The price is $448 million in cash.

Best Promising Stocks To Invest In 2014: Material Sciences Corporation(MASC)

Material Sciences Corporation, together with its subsidiaries, engages in the design, manufacture, and marketing of material-based solutions for acoustical and coated applications in the United States and internationally. It offers acoustical material-based solutions, which include multilayer composites consisting of metals, polymers, and other coated materials used to manage noise and vibration in automotive body panel parts, brake dampers, engine parts, appliances, and computer disk drives, as well as heating, ventilating, and air conditioning products. The company also provides coated material-based solutions that comprise painted, electrogalvanized protective, decorative, and functional coatings applied to coils of metals for automotive fuel tanks, building products, gaskets, appliances, and lighting fixtures. Material Sciences Corporation primarily serves customers in the automotive, appliance, building and construction, lighting, and electronic markets. The company m arkets its products, services, and technologies through sales and marketing organization, as well as through agents and licensees. Material Sciences Corporation was founded in 1971 and is headquartered in Elk Grove Village, Illinois.

Advisors' Opinion:
  • [By Monica Gerson]

    Material Sciences (NASDAQ: MASC) is projected to report its Q2 earnings at $0.16 per share.

    Blackhawk Network Holdings (NASDAQ: HAWK) is estimated to report its Q3 earnings at $0.05 per share on revenue of $210.94 million.

Best Promising Stocks To Invest In 2014: Xyratex Ltd.(XRTX)

Xyratex Ltd provides modular solutions for the enterprise data storage industry and hard disk drive (HDD) capital equipment for the HDD industry. It offers enterprise data storage solutions that include storage enclosures, which provide a common technology platform that reduces qualification time for original equipment manufacturer (OEM) customers and includes management interface software, standardized across enclosures, and provides easy integration as new platforms; integrated application platforms that comprise embedded storage platforms, which incorporate embedded server modules into its storage enclosures; and HPC Solutions that consolidate controllers, storage enclosures, application platforms, operating system, data protection, Lustre File System, and management software into a optimized scale-out storage platform that can be deployed in hours rather than weeks. The company also designs and manufactures a range of process test systems, which incorporate mechanical and electronic hardware, and firmware for controlling the HDD operating environment during the formatting of the disk drive. In addition, it provides automated solutions comprising substrate and media inspection systems; servo track writers and related subassemblies; and head testing systems that test and process HDD components throughout the manufacturing process. The company markets and sells its products primarily to OEMs and disk drive manufacturers, as well as to other companies in North America, Asia, and Europe. Xyratex Ltd was founded in 1966 and is headquartered in Havant, the United Kingdom.

Advisors' Opinion:
  • [By Monica Gerson]

    Analysts expect Xyratex (NASDAQ: XRTX) to post its Q3 earnings at $0.05 per share on revenue of $209.31 million. Xyratex shares gained 0.18% to close at $11.16 yesterday.

  • [By Monica Gerson]

    Xyratex (NASDAQ: XRTX) reported a drop in its third-quarter profit. However, the company issued downbeat forecast for the fourth quarter. Xyratex shares tumbled 7.83% to $11.06 in the after-hours trading session.

  • [By Sue Chang and William L. Watts]

    Xyratex Ltd. (XRTX) �dropped 6.7%. The company late Thursday reported a 70% drop in third-quarter earnings and offered a somewhat downbeat fourth-quarter forecast. The U.K.-based maker of data-storage and manufacturing equipment said it expects fourth-quarter results to range between a loss of four cents and a profit of 20 cents on revenue of $190 million to $220 million. Analysts surveyed by Thomson Reuters had produced a forecast for profit of 16 cents on revenue of $218 million. Shares are up by around 43% for the year to date.

Wednesday, March 26, 2014

Top Solar Stocks To Invest In 2014

There's never a shortage of losers in the stock market. Let's take a closer look at five of this past week's biggest sinkers.

Company

June 14

Weekly Loss

Himax Technologies (NASDAQ: HIMX  )

$5.39

21%

lululemon athletica (NASDAQ: LULU  )

$66.15

19%

First Solar (NASDAQ: FSLR  )

$44.71

16%

McEwen Mining (NYSE: MUX  )

$2.10

14%

Liquidity Services (NASDAQ: LQDT  )

Top Solar Stocks To Invest In 2014: Peabody Energy Corporation(BTU)

Peabody Energy Corporation engages in the mining of coal. It mines, prepares, and sells thermal coal to electric utilities and metallurgical coal to industrial customers. The company owns interests in 30 coal mining operations located in the United States and Australia, as well as owns joint venture interest in a Venezuela mine. It is also involved in marketing, brokering, and trading coal. In addition, the company develops a mine-mouth coal-fueled generating plant; and Btu Conversion projects that are designed to convert coal to natural gas or transportation fuels; and clean coal technologies. As of December 31, 2011, it had 9 billion tons of proven and probable coal reserves. The company was founded in 1883 and is headquartered in St. Louis, Missouri.

Advisors' Opinion:
  • [By Dan Caplinger]

    In response, Arch Coal has sought to increase its exports to countries where coal is still in higher demand. With its deal with Kinder Morgan (NYSE: KMI  ) to help boost its export capacity, Arch hopes that boosting its access to export markets will provide a new avenue for selling its coal. Yet again, Arch suffers a competitive disadvantage here compared to rival Peabody Energy (NYSE: BTU  ) , because Peabody's resources are better located strategically to take advantage of export opportunities.

  • [By Ben Levisohn]

    Coal stocks sure could use a boost. The Market Vectors Coal ETF (KOL) has dropped 23% so far this year, while Peabody Energy�(BTU) has fallen 28%, Alpha Natural Resources (ANR) has declined 27% and Arch�Coal�(ACI)has plunged 38%. Even Consol Energy (CNX), one of the best performers in the sector thanks to some asset sales, has only managed to gain 20%, lagging the S&P 500′s 29% rise.

  • [By Taylor Muckerman and Joel South]

    Earnings season is in full swing for the first quarter, and Peabody Energy (NYSE: BTU  ) came out with a positive forecast for things to come. After announcing a narrower than expected loss for the most recent quarter, the company stated that both domestic and international markets show signs of strength to forge on through 2013.

Top Solar Stocks To Invest In 2014: Real Goods Solar Inc.(RSOL)

Real Goods Solar, Inc. operates as a residential and commercial solar energy integrator primarily in California and Colorado. The company provides engineering, procurement, and construction services. It offers various turnkey solar energy services, including design, procurement, permitting, build-out, grid connection, financing referrals, and warranty and customer satisfaction services. The company installs residential and small commercial systems that range between 3 kilowatts and 1 megawatt output. It also engages in the retail sale of renewable energy products. The company was founded in 1978 and is based in Louisville, Colorado.

Advisors' Opinion:
  • [By Bryan Murphy]

    There's no denying that LDK Solar Co., Ltd (NYSE:LDK) has been a notable laggard this year compared to performances from First Solar, Inc. (NASDAQ:FSLR) and Real Goods Solar, Inc. (NASDAQ:RSOL). RSOL is up nearly 180% year-to-date, with a decent chunk of that gain unfurling in just the last couple of months. FSLR is up 25% for the year so far, though that more modest gain would have been much bigger had it not been for February's 24% plunge. Meanwhile, LDK shares are down 22% year-to-date, and have barely even blipped despite the fact that solar energy has become all the rage again in recent months.

Top Clean Energy Stocks To Buy For 2014: Renesola Ltd.(SOL)

ReneSola Ltd, together with its subsidiaries, engages in the manufacture and sale of solar wafers and solar power products. It offers virgin polysilicons, monocrystalline and multicrystalline solar wafers, and photovoltaic cells and modules. The company also provides cell and module processing services. Its products are used in a range of residential, commercial, industrial, and other solar power generation systems. The company sells its solar wafers primarily to solar cell and module manufacturers. It principally operates in Mainland China, Singapore, Taiwan, Hong Kong, Korea, India, Australia, Germany, Italy, Spain, Belgium, France, the Czech Republic, and the United States. The company was founded in 2003 and is based in Jiashan, the People?s Republic of China.

Advisors' Opinion:
  • [By Dan Caplinger]

    On Thursday, ReneSola (NYSE: SOL  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Top Solar Stocks To Invest In 2014: First Solar Inc.(FSLR)

First Solar, Inc. manufactures and sells solar modules using a thin-film semiconductor technology. It also designs, constructs, and sells photovoltaic solar power systems. The company?s solar modules employ a thin layer of semiconductor material to convert sunlight into electricity. Its integrated solar power systems activities include the project development; engineering, procurement, and construction services; operating and maintenance services; and project finance. The company sells solar modules to project developers, system integrators, and operators of renewable energy projects; and solar power systems to investor owned utilities, independent power developers and producers, and commercial and industrial companies, as well as other system owners. It operates in the United States, Germany, France, Canada, and internationally. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar was founded in 1999 a nd is headquartered in Tempe, Arizona.

Advisors' Opinion:
  • [By Paul Ausick]

    First Solar Inc. (NASDAQ: FSLR) reported third quarter 2013 results after the markets closed Thursday afternoon. The solar panel maker posted quarterly adjusted diluted earnings per share (EPS) were $2.28 on revenues of $1.265 billion. In the third quarter of 2012, the company reported EPS of $1.27 on revenues of $839.15 million. The Thomson Reuters estimates called for EPS of $1.00 and $988.63 million in revenue.

  • [By WALLSTCHEATSHEET]

    The stock has serious momentum right now, and the trend is always your friend ��until it stabs you in the back. In the near term, First Solar is an OUTPERFORM. There could be a lot more room to run. However, there will likely be a steep correction in the stock price over the next one to two years due to declining demand.

  • [By Travis Hoium]

    When First Solar (NASDAQ: FSLR  ) announced the acquisition of TetraSun yesterday it really announced a fundamental shift in the company's strategy. It isn't giving up on thin film, not yet, but it is laying the groundwork for a future without its familiar CdTe panels. TetraSun is an investment in crystalline silicon solar cells that First Solar has been fighting against for over a decade. Silicon has won the battle, and now even First Solar will join the crowd.

Top Solar Stocks To Invest In 2014: Hanwha SolarOne Co. Ltd.(HSOL)

Hanwha Solarone Co., Ltd., an investment holding company, engages in the manufacture and sale of silicon ingots, silicon wafers, and PV cells and modules. The company also offers mono crystalline and multi crystalline silicon cells; and provides PV module processing services. It sells its products to solar power system integrators and distributors primarily in Germany, Italy, Australia, the United States, the Czech Republic, Spain, and China. The company was formerly known as Solarfun Power Holdings Co., Ltd. and changed its name to Hanwha SolarOne Co., Ltd. in December 2010. Hanwha Solarone Co., Ltd. was founded in 2004 and is based in Qidong, the People?s Republic of China.

Advisors' Opinion:
  • [By Rebecca McClay]

    The tech market's news today includes a plunge in Hanwha SolarOne Co. Ltd. (Nasdaq: HSOL) shares, which are down 5% in morning trade after its second-quarter loss narrowed to $0.32 per share from a loss of $0.43 in Q1.

  • [By Roberto Pedone]

    One under-$10 stock that's starting to move within range of triggering a big breakout trade is Hanwha SolarOne (HSOL), which manufactures a number of silicon ingots, PV cells and PV modules using advanced manufacturing process technologies. This stock has been on fire so far in 2013, with shares up 301%.

    If you take a look at the chart for Hanwha SolarOne, you'll notice that this stock has been uptrending strong for the last month and change, with shares moving higher from its low of $2.60 to its recent high of $4.28 a share. During that uptrend, shares of HSOL have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of HSOL within range of triggering a big breakout trade.

    Traders should now look for long-biased trades in HSOL if it manages to break out above its 52-week high at $4.28 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 1.61 million shares. If that breakout triggers soon, then HSOL will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $6 to $7 a share.

    Traders can look to buy HSOL off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average at $3.40 a share, or near more support at $3.35 a share. One can also buy HSOL off strength once it clears $4.28 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

  • [By Travis Hoium]

    News and notes
    Hanwha SolarOne (NASDAQ: HSOL  ) announced another $100 million in financing this week, this time a term loan from the Export-Import Bank of Korea. �

  • [By Paul Ausick]

    Big Earnings Movers: Hanwha SolarOne Co. (NASDAQ: HSOL) is down 13.9% at $4.36. D.R. Horton Inc. (NYSE: DHI) is up 4.7% at $18.91 on good earnings boosted by land sales.

Top Solar Stocks To Invest In 2014: Yingli Green Energy Holding Company Limited(YGE)

Yingli Green Energy Holding Company Limited, together with its subsidiaries, engages in the design, development, manufacture, marketing, sale, and installation of photovoltaic (PV) products in the People?s Republic of China and internationally. The company offers PV cells, PV modules, and integrated PV systems, as well as polysilicon ingots, blocks, and wafers. It sells its PV modules to distributors, wholesalers, power plant developers and operators, and PV system integrators in Germany, the United States, Italy, China, Spain, the Netherlands, Greece, the Czech Republic, the United Kingdom, South Korea, and Japan under the Yingli and Yingli Solar brand names. The company also offers its integrated PV systems directly to end-users or to contractors for use in the electricity projects, as well as to mobile communications companies in the People's Republic of China. Yingli Green Energy Holding Company Limited was founded in 1998 and is headquartered in Baoding, the People? s Republic of China.

Advisors' Opinion:
  • [By Travis Hoium]

    Yingli Green Energy (NYSE: YGE  ) was also the beneficiary of a $165 million loan agreement with the China Development Bank, which is owned by the Chinese government. This includes a one-year, $110 million loan and a three-year, $55 million loan for working capital needs. Yingli is one of the most indebted companies in the industry, but the government doesn't look like it is willing to let it fail. �

  • [By Wall Street Strategies]

    Naturally the news is a big positive for the industry, with Chinese solar names like Yingli (YGE), Trina (TSL), Canadian Solar (CSIQ) -- which is actually Chinese despite its name -- JinkoSolar (JKS), JA Solar (JASO), and LDK Solar (LDK) each up more than 10% at midday. The Guggenheim Solar ETF (TAN), which tracks several global solar companies, was up 8%, breaking to a new 52-week high.

  • [By Travis Hoium]

    Solar tariffs in Europe started at a low 11% rate last week, but if a deal between Europe, China, and even the U.S. isn't reached by Aug. 6 then they could go up to as much as 68%. This is clearly a negative development for Chinese manufacturers like Yingli Green Energy (NYSE: YGE  ) , LDK Solar (NYSE: LDK  ) , and Trina Solar (NYSE: TSL  ) , but it's not necessarily good for U.S. companies either. First Solar (NASDAQ: FSLR  ) has little presence in Europe right now and SunPower (NASDAQ: SPWR  ) won't see much benefit from tariffs either. In the end, tariffs are bad for nearly everyone, a sentiment Travis Hoium covers in the video below.�

Top Solar Stocks To Invest In 2014: Canadian Solar Inc.(CSIQ)

Canadian Solar Inc. engages in the design, development, manufacture, and sale of solar power products in Canada and internationally. The company offers solar cell and solar module products that convert sunlight into electricity for various uses. Its products include a range of standard solar modules for use in a range of residential, commercial, and industrial solar power generation systems. The company also designs and produces specialty solar modules and products consisting of customized modules that its customers incorporate into their products, such as solar-powered bus stop lighting; and specialty products, such as portable solar home systems and solar-powered car battery chargers. In addition, it sells solar system kits, a package consisting of solar modules produced by it and third party supplied components, such as inverters, racking system, and other accessories, as well as implements solar power development projects. The company sells its products under the Canad ian Solar brand name. Canadian Solar Inc. offers its standard solar modules through a direct sales force and sales agents primarily to distributors, system integrators, and original equipment manufacturer customers, as well as to solar projects; and specialty solar modules and products to the automotive, telecommunications, and light-emitting diode lighting sectors. The company was founded in 2001 and is based in Kitchener, Canada.

Advisors' Opinion:
  • [By Paul Ausick]

    Chinese solar companies are a different story. Many manufacture their own silicon wafers and sell silicon to other makers. Trina Solar Ltd. (NYSE: TSL), LDK Solar Co. Ltd. (NYSE: LDK), JA Solar Holdings Co. Ltd. (NASDAQ: JASO) and Canadian Solar Inc. (NASDAQ: CSIQ) all manufacture and sell solar ingots, wafers or cells.

  • [By Travis Hoium]

    Chinese solar stocks have been up and down daily based on tariff rumors from Europe. But what will the impact be for major manufacturers such as Trina Solar (NYSE: TSL  ) , Canadian Solar (NASDAQ: CSIQ  ) , and Yingli Green Energy (NYSE: YGE  ) ? Solar analyst Travis Hoium goes through the two most likely possibilities in the following video.�

  • [By Eric Volkman]

    Start scratching names off the asset list of Canadian Solar (NASDAQ: CSIQ  ) . The company announced that it has closed the sale of Brockville 1, a 10 megawatt AC solar power plant. The buyer is TransCanada (NYSE: TRP  ) , and the plant is one of nine that TransCanada will ultimately take over from its national peer. All told, the nine plants have a combined capacity of 86 megawatts.

Top Solar Stocks To Invest In 2014: LDK Solar Co. Ltd.(LDK)

LDK Solar Co., Ltd., together with its subsidiaries, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products; and development of power plant projects. It offers solar-grade and semiconductor-grade polysilicon; and multicrystalline and monocrystalline solar wafers to the manufacturers of solar cells and solar modules. The company also provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers; and sells silicon materials, such as ingots and polysilicon scraps. In addition, it engages in the production and sale of solar cells and modules to developers, distributors, and system integrators; and design and development of solar power projects in Europe, the United States, and China, as well as provides engineering, procurement, and construction services. LDK Solar Co., Ltd. operates in Europe, the Asia Pacific, and North America. The company was founded in 2005 and is based in Xinyu City, t he People?s Republic of China.

Advisors' Opinion:
  • [By Travis Hoium]

    LDK Solar (NYSE: LDK  ) is on the brink of failure after another terrible performance in the first quarter. The company is paying more than half of its revenue in interest payments and is begging creditors to refinance debt so that it can stay alive. For equity investors there is little upside given the company's high debt load and massive losses. Fool.com contributor Travis Hoium weighs in on LDK's situation.

  • [By Wall Street Strategies]

    Naturally the news is a big positive for the industry, with Chinese solar names like Yingli (YGE), Trina (TSL), Canadian Solar (CSIQ) -- which is actually Chinese despite its name -- JinkoSolar (JKS), JA Solar (JASO), and LDK Solar (LDK) each up more than 10% at midday. The Guggenheim Solar ETF (TAN), which tracks several global solar companies, was up 8%, breaking to a new 52-week high.

  • [By Travis Hoium]

    China continues to prop up solar
    Suntech Power and LDK Solar (NYSE: LDK  ) have both defaulted on loans, but that doesn't appear to be a clear sign that China is willing to let its solar industry consolidate. These two companies along with countless others would be bankrupt in the U.S. or Europe but investments from state-owned entities and loans from state-owned banks have propped up the entire industry.

  • [By Travis Hoium]

    What: Solar stocks are shooting higher again today as the strong run in 2013 continues. LDK Solar (NYSE: LDK  ) , Canadian Solar (NASDAQ: CSIQ  ) , Yingli Green Energy (NYSE: YGE  ) , Hanwha SolarOne (NASDAQ: HSOL  ) , and JinkoSolar (NYSE: JKS  ) led the way, gaining between 10% and 22% today.

Top Solar Stocks To Invest In 2014: JA Solar Holdings Co. Ltd.(JASO)

JA Solar Holdings Co., Ltd., through its subsidiaries, engages in the design, development, manufacture, and sale of photovoltaic solar cells and solar products, which convert sunlight into electricity in the People's Republic of China. The company?s principal products include monocrystalline and multicrystalline solar cells, as well as various solar modules. It also provides silicon wafer and solar cell processing services. The company sells its products primarily under the JA Solar brand name, as well as produces equipment for original equipment manufacturing customers under their brand names. It sells its solar cell and module products primarily to module manufacturers, system integrators, project developers, and distributors in the Germany, Italy, the United States, Hong Kong, Spain, India, the Czech Republic, France, and South Korea. The company has strategic partnerships with various solar power companies, such as BP Solar, Solar-Fabrik, and MEMC/SunEdison. JA Solar Holdings Co., Ltd. was founded in 2005 and is based in Shanghai, the People?s Republic of China.

Advisors' Opinion:
  • [By Paul Ausick]

    Big earnings movers: Campbell Soup Co. (NYSE: CPB) is down 3.2% at $43.30. Corinthian Colleges Inc. (NASDAQ: COCO) is down 10.3% at $2.34. JA Solar Holdings Co. Ltd. (NASDAQ: JASO) is down 6.9% at $7.40.

  • [By Wall Street Strategies]

    Naturally the news is a big positive for the industry, with Chinese solar names like Yingli (YGE), Trina (TSL), Canadian Solar (CSIQ) -- which is actually Chinese despite its name -- JinkoSolar (JKS), JA Solar (JASO), and LDK Solar (LDK) each up more than 10% at midday. The Guggenheim Solar ETF (TAN), which tracks several global solar companies, was up 8%, breaking to a new 52-week high.

  • [By Dan Caplinger]

    Nevertheless, the main problem for ReneSola is that it still hasn't managed even to get gross profit margins above zero. JA Solar (NASDAQ: JASO  ) has been in the same boat recently, with the costs of making its products exceeding its sales even before considering operating expenses and other costs of doing business. Unless ReneSola can get its margins up, then it won't be able to compete against much better performing U.S. rivals that have seen their prospects soar lately.

Tuesday, March 25, 2014

The non-recovery of the U.S. economy

economy, unemployment, jobs, Bloomberg News

We are now in the fifth year since the “official” end of the Great Recession (the National Bureau of Economic Research, which officially dates U.S. recessions, said the recession ended in the second quarter of 2009), but it hardly feels like a recovery. Nonetheless, the media, sell-side economists, central bankers, the International Monetary Fund, etc., all claim that the U.S. economy is now firmly out of the woods.

President Barack Obama said in his State of the Union speech that he believes 2014 “can be a breakthrough year” for the U.S. economy, and the IMF is predicting growth of 2.8% in 2014.

However, a closer look at the data suggests that things are not improving and that the U.S. economy remains frail. Many point to the unemployment rate as a sign that things are getting better. Indeed, it has been declining steadily for many years and now stands at 6.7%. However, what many seem to forget is that the unemployment rate is declining for the wrong reasons.

Yes, the U.S. has been adding new jobs, but a large share of the decline in the unemployment rate can be explained by discouraged workers leaving the labor force. This effect can be seen in the falling participation rate. Many argue that this decline in the participation rate is structural and is caused by population aging. This explanation is superficial and misleading.

Figure 1, shows the contribution to the total participation rate for various age groups. Since January 2005, the participation rate has fallen by 2.9% (from 65.8% to 62.9%). Of this decrease, 1.3% and 4.7% were driven by the 16-24 and 25-54 age groups, respectively. The rest was offset by a 3.1% increase in participation by the 55+ cohort. Source: Bloomberg, Sprott calculations

This is reflective of a deep problem, as it suggests that baby boomers are failing to make ends meet and have to work for longer or even come out of retirement, and that the future workforce, those in their prime working years, are leaving the labor force.

Interestingly, without the “3% contribution” from the 55+ cohort, the labor force would have fallen below 60% for the first time since 1971, a period when the participation rate was starting to expand, driven mainly by women entering the workforce.

But that's not all; many of those in their early 20s, seeing how hard it is to find a job, are staying in college for longer, amassing outrageous levels of student debt in the process. This is obviously not a sustainable solution. Delinquency rates on student loans (the bulk of them insured by the U.S. government) are now at all-time highs (Figure 2). Most of these student loans have been securitized and sold to investors with the government's stamp (sound familiar?). Source: Bloomberg, Sprott calculations

For all the rest (ages 25-54), participation in the labour force has also been declining, although at a slightly slower pace. Nevertheless, the average U.S. consumer is still worse off than it was before the Great Recession. Real disposable income per capita (Figure 3) is lower than it was at the end of 2005 while, over the same period, health care costs have increased to 11.5% from 10.0% of GDP, thereby reducing funds available for discretionary spending.

Sunday, March 23, 2014

Herbalife Plunges as FTC Opens Probe

Herbalife (HLF) shares have plunged after the muli-level seller said that the FTC has opened an investigation of the company. Herbalife said it will cooperate with the probe but will not comment “unless and until there are material developments.”

Shares of Herbalife have dropped 11% to $57.63 at 1:53 p.m. The stock had been trading up 4.5% at $68.30 when it was halted at 1:18 p.m.

Yesterday, William Ackman accused Herbalife of breaking Chinese laws, while Herbalife responded by saying it “remains confident in its business in China.”

Interactive Brokers’ Andrew Wilkinson notes that the implied volatility of Herblife’s shares surged from 50% before the halt to 99% after, while the bottom of its range fell to $30 from $50 by next week's expiration.

Shares of NuSkin (NUS), which has its own China problems, have fallen 2.6% to $71.10 at 1:38 p.m. after being up much of the day, while Usana Health Sciences (USNA) has dropped 5.78% to $68.80 after being up as well. Prices are moving fast, so these will have changed by the time you read this.

Saturday, March 22, 2014

Hot Retail Companies To Buy Right Now

LONDON -- Shares in Marks & Spencer (LSE: MKS  ) �have risen 4% to 399 pence as of 8:50 a.m. EDT following the release of the high-street retailer's trading statement for the fourth quarter, which saw the strongest quarterly sales growth in the last two years.

Group sales increased 3.1% year on year, with total U.K. sales averaging out at a 2.6% rise. Another strong performance from its food operations, which saw a 6.3% lift�(helped by its biggest-ever Easter week), more than offset the 2.2% drop-off in general merchandise. It was a similar story for like-for-like sales in the U.K., which saw a marginal increase of 0.6% as food soared 4% and general merchandise fell 3.8%.

Chief executive Marc Bolland commented:

We are working hard on improving our performance in General Merchandise and, despite difficult trading conditions, we made progress in our operational execution. We delivered an excellent result in Food, with performance well ahead of the market, as customers continued to trust us for provenance and quality. We are increasingly seen as the destination shop for special occasions.

Hot Retail Companies To Buy Right Now: Big Lots Inc (BIG)

Big Lots, Inc., incorporated in May 2001, through its wholly owned subsidiaries, is a North America's closeout retailer. At January 28, 2012, the Company operated a total of 1,533 stores in two countries: the United States and Canada. The Company operates in two segments: U.S. and Canada. The merchandising categories include Consumables, Furniture, Home, Seasonal, Play n' Wear, and Hardlines & Other. The Consumables category includes the food, health and beauty, plastics, paper, chemical, and pet departments. The Furniture category includes the upholstery, mattresses, ready-to-assemble, and case goods departments. The Home category includes the domestics, stationery, and home decorative departments. The Seasonal category includes the lawn and garden, Christmas, summer, and other holiday departments. The Play n' Wear category includes the electronics, toys, jewelry, infant accessories, and apparel departments. The Hardlines & Other category includes the appliances, tools, paint, and home maintenance departments. On July 18, 2011, the Company acquired Liquidation World Inc. During the fiscal year ended January 28, 2012 (fiscal 2011), the Company opened 92 stores, acquired 89 stores and closed 46 stores.

All of the Company�� stores are located in North America and has an average store size of approximately 29,900 square feet, of which an average of 21,600 square feet is selling square feet. The 54 owned stores are located in Arizona, California, Colorado, Florida, Louisiana, New Mexico, Ohio and Texas. At January 28, 2012, the Company owned or leased approximately 9.4 million square feet of distribution center and warehouse space. The Company leases and operates two regional distribution centers in Canada located in British Columbia and Ontario. Of its 1,533 stores, 33% operate in four states California, Texas, Ohio, and Florida, and net sales from stores in these states represented 36% of its fiscal 2011 net sales.

Advisors' Opinion:
  • [By Jayson Derrick]

    This morning, Big Lots (NYSE: BIG) reported its fourth quarter results. The company announced an EPS of $1.45, beating the consensus estimate of $1.42. Revenue of $1.64 billion beat the consensus estimate of $1.62 billion. Net income fell to $84.35 million from $120.28 million in the same quarter last year. Big Lots said that it will completely exit the Canadian market in the first quarter and losses in the fourth quarter were lower than expected. The company announced that it will add freezers and coolers to hundreds of stores given the fact that stores already equipped with refrigeration units out-performed other stores in the quarter. Shares surged 22.97 percent, closing at $35.97.

  • [By Alyce Lomax]

    Of course, the fact that Costco shares trade at such a premium to those of similar retailers has always been a factor that investors have grappled with and often disagreed on. Costco currently trades at 22 times forward earnings. That's a far cry from Wal-Mart (NYSE: WMT  ) and Target (NYSE: TGT  ) , both of which trade at 13 times forward earnings. Big Lots (NYSE: BIG  ) trades even cheaper, at 10 times forward earnings.�

  • [By Ben Levisohn]

    Big Lots�(BIG) has gained 1.8% to $35.26 after the company reported a profit of 31 cents a share, better than analyst forecasts for 24 cents.

    General Electric�(GE) has gained 1.6% to $23.47 after the Wall Street Journal reported it is looking to sell its GE Capital retail lending business.

Hot Retail Companies To Buy Right Now: Caseys General Stores Inc.(CASY)

Casey?s General Stores, Inc., together with its subsidiaries, operates convenience stores under the Casey?s General Store, HandiMart, and Just Diesel names in 11 Midwestern states, primarily Iowa, Missouri, and Illinois. Its stores offer foods, beverages, dairy and bakery products, sandwiches, fountain drinks, donuts, cookies, brownies, Danish rolls, ham and cheese sandwiches, pork and chicken fritters, sausage sandwiches, chicken tenders, popcorn chicken, breakfast croissants and biscuits, breakfast pizza, hash browns, quarter-pound hamburgers and cheeseburgers, and potato cheese bites. The company?s stores also provide nonfood items, which include tobacco products, health and beauty aids, school supplies, house wares, pet supplies, photo supplies, and automotive products. In addition, it offers gasoline or gasohol for sale on a self-service basis. As of July 31, 2011, the company operated 1,665 stores. The company was founded in 1959 and is headquartered in Ankeny, Iowa.

Advisors' Opinion:
  • [By John Kell and Lauren Pollock var popups = dojo.query(".socialByline .popC"); ]

    Casey's General Stores Inc.(CASY) said its fiscal third-quarter earnings fell 5.1% as the convenience-store operator reported higher costs, which offset an increase in revenue.

  • [By Michael Lewis]

    For those who call the American midwest home, the convenience store chain Casey's General Stores (NASDAQ: CASY  ) is likely a part of everyday life. If you're like me, on the other hand, who grew up on one coast and lives on the other, the business could just as easily be something from Blazing Saddles. But, as it turns out, the stores, which span more than 1,700 locations in 11 states, are doing well, and may be poised for further performance as earnings grow and margins expand. Does your portfolio need a quick stop into Casey's General Stores?

  • [By John Emerson]

    My selection of stocks was now almost entirely based upon themes. Instead of seeking out value in out-favor-sectors, I had temporarily diverted to the path of attempting to identify investing themes, although I would only purchase a stock if I deemed it to be a bargain. The major themes I had identified were natural gas related stocks, material stocks such as cement companies, and discounted Chinese growth stocks which made their money by selling their products to Chinese consumers. I also owned significant positions in some other purely American companies which included Casey�� (CASY) and Gray Television (GTN). Ultimately, Gray Television would turn out to be a colossal failure (more on GTN later).

  • [By Mike Deane]

    After the closing bell on Monday, Casey’s General Stores (CASY) reported its third quarter earnings, posting slightly lower EPS than last year’s Q3 figure, due in part to extreme winter weather.

    CASY’s Earnings in Brief

    CASY reported third quarter revenues of $1.79 billion, up from last year’s Q3 figure of $1.66 billion. Net income for the quarter came in at $14.67 million, or 38 cents per share, which is lower than last year’s Q4 figure of $15.46 million, or 40 cents per share. Casey’s missed analysts’ estimates of 49 cents EPS on revenues of $1.84 billion.

    CEO Commentary

    CASY”s chairman and CEO, Robert J. Myers, had the following comments: ��hird quarter sales were strong throughout all of our categories despite challenging weather during the quarter. Our same-store fuel sales are exceeding industry-wide trends and gross profit from inside the store was up over 11% for both the quarter and year.��/p>

    CASY’s Dividend

    Casey’s declared a dividend raise in June last year, pushing its quarterly payout to 18 cents from 17 cents. The company’s next dividend is payable on May 15 to all shareholders on record as of May 1.

    Stock Performance

    Casey’s stock ended the day up $1.52, or 2.29%, but it was heading lower in after hours earnings, due to the company’s large earnings miss. YTD, the company’s stock is down 3.7%.

Top 10 Performing Companies To Watch In Right Now: AutoNation Inc (AN)

AutoNation, Inc. (AutoNation), incorporated on May 30, 1991, is an automotive retailer in the United States. As of December 31, 2011, the Company had three operating segments: Domestic, Import, and Premium Luxury. As of December 31, 2011, it owned and operated 258 new vehicle franchises from 215 stores located in the United States, predominantly in metropolitan markets in the Sunbelt region. Its stores sell 32 different brands of new vehicles. The core brands of vehicles that it sells, representing approximately 90% of the new vehicles that it sold during the year ended December 31, 2011, was manufactured by Ford, Toyota, Nissan, General Motors, Honda, Mercedes-Benz, BMW, and Chrysler. The Company offers a diversified range of automotive products and services, including new vehicles, used vehicles, parts and automotive repair and maintenance services , and automotive finance and insurance products, which includes the arranging of financing for vehicle purchases through third-party finance sources. The Company retailed approximately 400,000 new and used vehicles through its stores in 2011. It acquired one automotive retail franchise and related assets during 2011.

Domestic segment consists of retail automotive franchises that sell new vehicles manufactured by General Motors, Ford, and Chrysler. Its Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, and Nissan. Its Premium Luxury segment is consists of retail automotive franchises that sell new vehicles manufactured primarily by Mercedes-Benz, BMW, and Lexus. The franchises in each segment also sells used vehicles, parts and automotive repair and maintenance services, and automotive finance and insurance products. For the year ended December 31, 2011, Domestic revenue represented 34% of total revenue, Import revenue represented 37% of total revenue, and Premium Luxury revenue represented 28% of total revenue. Corporate and other is consist of its other businesses, incl! uding collision centers, e-commerce activities, and an auction operation, each of which generates revenues, as well as unallocated corporate overhead expenses and retrospective commissions for certain financing and insurance transactions that it arranges under agreements with third parties.

The Company�� stores acquires vehicles for retail sale either directly from the applicable automotive manufacturer or distributor or through dealer trades with other stores of the same franchise. it acquires used vehicles from customer trade-ins, auctions, lease terminations, and other sources. It recondition used vehicles acquired for retail sale at its stores��service facilities and capitalize costs related thereto as used vehicle inventory. Through its VVOs, which are located on existing store facilities, it sells vehicles that it would have traditionally wholesaled with an average retail price lower than that of used vehicles it typically retail. Used vehicles that the Company do not sell at its stores or VVOs generally are sold at wholesale prices through auctions.

The Company offers a variety of automotive finance and insurance products to its customers. The Company arranges for its customers to finance vehicles through installment loans or leases with third-party lenders, including the vehicle manufacturers��and distributors��captive finance subsidiaries, in exchange for a commission payable to the Company. It also offers its customers various vehicle protection products, including extended service contracts, maintenance programs, guaranteed auto protection (GAP, this protection covers the shortfall between a customer�� loan balance and insurance payoff in the event of a casualty), tire and wheel protection, and theft protection products. The vehicle protection products that its stores offers to customers are underwritten and administered by independent third parties, including the vehicle manufacturers��and distributors��captive finance subsidiaries. The Company sells t! he produc! ts on a straight commission basis; however, it also participate in future underwriting profit for certain products pursuant to retrospective commission arrangements. Commissions that it receives from these third-party providers may be subject to chargeback, in full or in part, if products that it sells, such as extended service contracts, are cancelled. Its stores also provide a range of vehicle maintenance, repair, paint, and collision repair services, including warranty work that can be performed only at franchised dealerships and customer-pay service work. The Company has entered into framework agreements with vehicle manufacturers and distributors. It operates each of its new vehicle stores under a franchise agreement with a vehicle manufacturer or distributor.

Advisors' Opinion:
  • [By Michael Lewis]

    Part of this year-over-year growth is attributed to the 10 new stores opened throughout the year -- the most since 2008. As part of this growth, SG&A costs rose more than 10% to $1 billion. Marketing campaigns are incredibly important for the company to stay competitive with peers such as AutoNation (NYSE: AN  ) , but investors need to keep an eye on these SG&A increases to make sure they are yielding an appropriate return on the sales front.

Hot Retail Companies To Buy Right Now: Lumber Liquidators Holdings Inc (LL)

Lumber Liquidators Holdings, Inc. (Lumber Liquidators) is retailer of hardwood flooring, and hardwood flooring enhancements and accessories. The Company offers an assortment of wood flooring, which includes prefinished domestic and exotic hardwoods, engineered hardwoods, unfinished hardwoods, bamboo, cork and laminates, as well as resilient flooring. Its flooring enhancements and accessories include moldings, noise-reducing underlay and adhesives. Lumber Liquidators and Bellawood are it brands. Its hardwood flooring products are available in various widths and lengths. It offers approximately 350 different flooring product stock-keeping units. In September 2011, it acquired certain assets of Sequoia Floorings Inc. (Sequoia) relating to Sequoia�� quality control and assurance, product development and logistics operations in China.

In June 2013, Lumber Liquidators Holdings Inc announced that the Company has opened its 300th store, located in Las Vegas, Nevada.

During the year ended December 31, 2011, the Company opened 40 stores. As of February 20, 2012, the Company operated 266 stores located in 46 states and Canada. During 2011, Lumber Liquidators opened its first stores in Canada. It operates a central distribution center located in Hampton, Virginia, supplemented by its facilities in Toano, Virginia. In addition, it operates a facility in Toronto, Canada, with both a store front and a small warehouse serving that metropolitan market. In 2011, Lumber Liquidators finished approximately 79% of its Bellawood products at its finishing facility in Toano, Virginia.

Solid Hardwood

The Company�� solid hardwood products are milled from one thick piece of wood, which can be sanded and refinished numerous times. It offers flooring products made from more than 25 wood species, including both domestic woods, such as ash, beech, birch, hickory, northern hard maple, northern red oak, pine and American walnut, and exotic woods, such as bloodwood, cherry, cypress, e! bony, koa, mesquite, mahogany, rosewood and teak. Lumber Liquidators sells these products either prefinished or unfinished.

Engineered Hardwood

The Company�� engineered hardwood products are produced by bonding a layer of hardwood to a plywood or fiber board backing. Its engineered hardwood floors are offered in domestic and exotic wood species, and in either glue down or floating application. All of its engineered hardwood products are prefinished. Engineered flooring is designed primarily to be installed in areas where hardwood is not conducive, such as slab construction, basements and areas where moisture may be a factor.

Laminates

Lumber Liquidators Holdings, Inc.�� laminate flooring is constructed with a fiber board core, inserted between a melamine laminate backing and photographic paper displaying an image of wood and a ceramic finish, abrasion-resistant laminate top. Its laminate flooring brands allow for easy-click installation, and some include a pre-glued undersurface, moisture repellent, soundproofing, single-strip format or a handscraped textured finish.

Moldings and Accessories

Lumber Liquidators offer a variety of wood flooring moldings and accessories. It sells stair treads and risers in both finished and unfinished versions. Accessories include underlayments that are placed between the new floor and the sub-floor, insulating sound and cushioning the floors. In addition, it sells installation supplies, such as sealers, adhesives and trowels, floor cleaning supplies, and butcher-block kitchen countertops.

Bamboo and Cork

The Company�� bamboo products, harvested from the bamboo plant, are offered as a prefinished, natural or stained, solid or engineered floor. Its cork flooring is produced by harvesting the outer bark of the cork oak tree.

Advisors' Opinion:
  • [By Rick Munarriz]

    Shares of Lumber Liquidators (NYSE: LL  ) soared 12% yesterday -- and have continued to hit new all-time highs this morning -- after posting blowout quarterly results.

  • [By Rick Munarriz]

    2. It's the wood that makes it good
    Lumber Liquidators (NYSE: LL  ) hit fresh highs this week, and that's easy to see once you delve into the flooring retailer's better-than-expected quarterly results.

  • [By Brian Pacampara]

    What: Shares of hardwood flooring retailer Lumber Liquidators (NYSE: LL  ) climbed 10% today after its quarterly results and guidance topped Wall Street expectations.�

  • [By Steve Symington]

    It's about that time again,�Lumber Liquidators� (NYSE: LL  ) investors! With the hardwood flooring specialist all set to announce earnings on Wednesday, July 24, it's a good idea to begin thinking about what we should expect from this fast-growing niche business.

Hot Retail Companies To Buy Right Now: West Marine Inc (WMAR)

West Marine, Inc., incorporated in September 1993, is a specialty retailer of boating supplies and accessories. The Company offers an assortment of merchandise for the boat and for the boater. It operates in three segments: Stores, Port Supply and Direct-to-Customer. The Company sells to both retail and wholesale customers in its Stores segment. In addition, the Company has three franchised stores in Turkey. The Company�� Port Supply segment is its wholesale segment. The Company�� Direct-to-Customer, which includes e-commerce, catalog and call center transactions. During the year ended December 31, 2011, Stores segment generated approximately 90% of its net revenues. During 2011, products shipped to Port Supply customers directly from its warehouses represented approximately 4% of its net revenues.

During 2011, its Direct Sales segment offered customers around the world more than 75,000 products and accounted for the remaining 6% of its net revenues. Private label products, which the Company sells under the West Marine, Black Tip, Third Reef, Pure Oceans, Lifesling, SeaVolt and Seafit brand names, usually are manufactured in Asia, the United States and Europe.

Stores Segment

During 2011, the Company opened six stores while closing 14 stores. In December 2011, it opened its Fort Lauderdale Boating Superstore, a 50,000 square foot flagship. Its flagship stores ranging in size from 21,000 to 50,000 square feet, offering an array of merchandise typically about 16,000 items, as well as displays designed to help customers make informed product selections. It also operates large format stores, standard-sized stores and smaller Express stores. Its large format stores range from 13,000 to 19,000 square feet and carry about 11,000 items. The standard-sized stores typically range from 6,000 to 12,000 square feet and carry over 6,000 items. Express stores typically range from 2,500 to 3,000 square feet and carry over 4,000 items, mainly hardware and other supplies needed! for day-to-day boat maintenance and repairs.

Port Supply Segment

Port Supply customers include businesses involved in boat sales, boat building, boat commissioning and repair, yacht chartering, marina operations and other boating-related activities. In addition, Port Supply sells to government and industrial customers who use its products for boating and non-boating purposes. Port Supply, the Company�� wholesale segment, serves wholesale customers seeking convenience and a larger assortment of products than those carried by typical distributors.

Direct-to-Customer Segment

The Company�� e-commerce Website provides its customers with access to a selection of approximately 75,000 products, product advisor tips and technical information, over 450 product videos and customer-submitted product reviews. This segment also provides customers with access to knowledgeable technical advisors who can assist its customers in understanding the various uses and applications of the products it sell. It operates a virtual call center from which its associates assist its customers by taking calls from their homes or from its support center in Watsonville, California. Its virtual call center supports sales generated through its e-commerce Website, catalogs and stores and provides customer service offerings.

Advisors' Opinion:
  • [By Interactive Buyside]

    West Marine (Nasdaq: WMAR) is an undervalued retailer.  The company is going through a change in focus from a bricks and mortar boat product retailer to a fully integrated retail and wholesale business through bricks and clicks, targeting the boating and water enthusiast customer.   Recent results have been affected by a severe rainy and cool spring which hurt boat usage and delayed the start of the season.  The company has accelerated cash investments to build larger more productive stores and expand its ecommerce abilities, consequently affecting free cash flow short term.  The stock lacks sponsorship as there is only one research report written on the company by a small boutique firm.  The stock trades at only book value despite the company being the leading industry player with a solid balance sheet and significant net cash position. 

Hot Retail Companies To Buy Right Now: Axxess Unlimited Inc (AXXU)

Axxess Unlimited, Inc., incorporated on June 8, 2000, is the holding company for the Axxess family of companies. The Axxess family of companies includes both vertically-integrated operating businesses and horizontally-integrated companies with each supported by a common software technology - the Axxess RISE Platform. The Company provides next-generation business intelligence for a range of businesses and organizations. It provides information-driven business solutions through interactive marketing, interactive technologies, application and product development, customer relationship management, business intelligence, portals and collaboration, and infrastructure solutions. Its companies include Axxess Digital (AxxuD), Axxess Apps (AxxuA) and Axxess Brands (AxxuB).

Axxess Digital

AxxuD is an interactive digital agency company. The Company relies on the core logic of the Axxess Unlimited RISE platform.

Axxess Apps

AxxuA is a software development company. The focus of AxxuA includes: enterprise applications, custom applications, cloud applications and mobile applications. The Company has software-as-a-service (SaaS) solutions and custom and mobile products available in the government services, automobile dealership, medical and consumer goods sectors.

Axxess Brands

AxxuB is a marketer and manufacturer of specialty brands in better-for-you and indulgent categories under a variety of Company owned and licensed brand names. AxxuB licenses brands and provides outsource management.

Advisors' Opinion:
  • [By James E. Brumley]

    If the names Axxess Unlimited Inc. (OTCMKTS:AXXU) and MagneGas Corporation (NASDAQ:MNGA) ring a bell, it might be because yours truly posted some bullish thoughts on both names earlier this week. Although neither small cap stock had done everything they needed to do in order become a fully bullish trade at the time, both MNGA and AXXU have cleared those hurdles in the meantime. So, in case you forgot (or in case you missed the first look), an updated review of Axxess Unlimited and MagneGas is merited.

  • [By James E. Brumley]

    A week and a half ago, yours truly penned some bullish thoughts on Axxess Unlimited Inc. (OTCMKTS:AXXU). Not too many traders read that take, and/or if they did, they didn't seem to care. The response to the commentary was non-existent (good or bad), and there was no sudden rush to go out and buy AXXU. Today's second look may have a different outcome.

  • [By James E. Brumley]

    Even if you're one of the few reading this now, odds are good that you'd still never heard of Axxess Unlimited Inc. (OTCMKTS:AXXU) until the beginning of February. Prior to that, trading in AXXU was thin and uneventful. The evidence? Prior to February 4th, the average daily volume was less than 10,000 shares per day, and had been stuck right around the $0.20 mark since the middle of last year. Since February 4th, though, things have changed for the better. Since then, volume has been considerably stronger, and Axxess Unlimited shares have finally woken up and decided to forge ahead.

  • [By CRWE]

    Last Friday, WIZD remained (0.00%) +0.000 at $.200 at the close (ref. google finance August 23, 2013 ��Close).

    Axxess Unlimited, Inc. previously reported the second quarter 2013 financial results for the period ending June 30, 2013.

    Second quarter 2013 compared to second quarter 2012 results included:

    Total Revenues up 330% to $272,775 compared to $63,392
    Gross Profit grew 1076% to $193,961 compared to loss of $19,876
    Operating Expenses were up 97% as the company continued to invest in R&D and channel rollout for Axxess products and technology.
    Operating Net Income increased 103% to $3,118 compared to loss of $116,773
    Six-month period 2013 compared to six-month period 2012 results included:

    Total Revenues up 305% to $518,485 compared to $128,161
    Gross Profit grew 1212% to $352,532 compared to $26,868
    Operating Expenses were up 80%
    Operating Net Income increased 96% to a loss of $6,551 compared to a loss of $172,982

Hot Retail Companies To Buy Right Now: PetSmart Inc(PETM)

PetSmart, Inc., together with its subsidiaries, operates as a specialty retailer of products, services, and solutions for pets in the United States, Puerto Rico, and Canada. The company offers consumables, such as pet food, treats, and litter; and hardgoods, which include pet supplies and other goods comprising collars, leashes, health care supplies, grooming and beauty aids, toys, apparel, and pet beds and carriers, as well as aquariums and habitats, accessories, d�or, and filters for fish, birds, reptiles, and small pets. It also provides fresh-water fish, small birds, reptiles, and small pets; and pet services, such as grooming, including precision cuts, baths, nail trimming and grinding, and teeth brushing, as well as training, boarding, and day camp services. In addition, the company operates PetsHotels that offer boarding for dogs and cats; provides personalized pet care, an on-call veterinarian, temperature controlled rooms and suites, daily specialty treats and p lay time, and day camp services for dogs; and operates veterinary hospitals, which offer services comprising routine examinations and vaccinations, dental care, a pharmacy, and surgical procedures. As of January 29, 2012, it operated 1,232 retail stores; 192 PetsHotels; 791 veterinary hospitals under the trade name of Banfield, The Pet Hospital; and 8 hospitals operated through other third parties in Canada. The company also offers its products through an e-commerce and community site, PetSmart.com. PetSmart, Inc. was founded in 1986 and is based in Phoenix, Arizona.

Advisors' Opinion:
  • [By Rich Duprey]

    There are a lot of moving parts for PetSmart (NASDAQ: PETM  ) going into its annual shareholder meeting on Friday.

    The pet food and supplies leader announced yesterday it has named a new non-executive chairman of the board,�Gregory P. Josefowicz, who will assume the role following the meeting. Exiting Chairman and CEO Bob Moran will not stand for reelection as a director, and company President and COO�David Lenhardt will fill the role of CEO.�Executive Vice President Joseph O'Leary will become president and COO. In May, the company named Carrie Teffner as its new chief financial officer.

  • [By Rich Smith]

    This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines include a pair of retail downgrades for shopping center staples Bed Bath & Beyond (NASDAQ: BBBY  ) and PetSmart (NASDAQ: PETM  ) . But the news isn't all bad, so why don't we end the week on a bright note, and look first at why one analyst thinks...

  • [By Sue Chang and Saumya Vaishampayan]

    PETM: PetSmart Inc. (PETM) �shares dropped 1.5%. The company reported a decline in fourth-quarter profit to $131.5 million from $134.0 million a year earlier, while per-share earnings rose to $1.28 from $1.24. The company noted the fourth quarter of 2012 had an extra week that represented 17 cents in per-share earnings. Analysts polled by FactSet had expected earnings of $1.21 a share.

Hot Retail Companies To Buy Right Now: Rex Trueform Clothing Company Ltd (RTO)

Rex Trueform Clothing Company Limited is a South Africa-based company engaged in the manufacturing and marketing of clothing. The Company operates under two segments: Retail segment, the Company, through its ownership of Queenspark Limited, which operates a nationwide chain of Queenspark and J CREW stores, has a interest in the retailing of men�� and women�� clothing and related accessories. Through Property segment, Rex Trueform and its subsidiary have a direct investment in a portfolio of properties located in and around Cape Town. These properties are held either for the purpose of operations or for investment purposes. As of June 30, 2012, the Company operated 55 stores. In September 2012, the Company launched its newest brand Cath.Nic, a new fashion label exclusive to Queenspark. During the fiscal year ended June 30, 2012, the Company opened three new stores. Advisors' Opinion:
  • [By Sofia Horta e Costa]

    Rentokil Initial Plc (RTO) rose the most in almost eight weeks after a report that private-equity investor Clayton Dubilier & Rice LLC is considering combining the company�� office-maintenance unit with that of Balfour Beatty Plc. Cobham Plc dropped 4.6 percent as a shareholder sold a 3.6 percent stake in the maker of defense and aerospace equipment.

  • [By Corinne Gretler]

    Rentokil Initial Plc (RTO) climbed 3.1 percent to 106 pence as Bank of America Corp. upgraded the U.K. pest-control and hygiene-services company to buy from neutral. The brokerage predicted that cash flow will improve in 2014 and 2015.