Monday, September 30, 2013

My 4 Favorite Global Dividend Achievers with Over 10% Annual Net Earnings Growth Predictions

Dividend growth investors like you or me should also have a focus on stocks from abroad. It diversifies your portfolio and gives you more opportunities from different countries.

But you always have a currency risk if your stock is traded in a foreign currency. But you also own these risks with U.S. stocks that have a huge share of foreign sales. The corporation manages these risks for you.

Today I would like to filter my International Dividend Achievers list by stocks with the highest earnings per share growth forecast for the mid-term (five years). You can find a list attached about those stocks with double-digit earnings predictions by brokerage firms.

Only 19 of 55 dividend growth stocks from abroad with a dividend growth history of more than five consecutive years fulfilled my restrictions. Six of them still have a low forward P/E of less than 15 and eleven got a current buy or better rating. The yields are low in this environment thanks to Ben Bernanke who said that the tapering must wait until the economy improves stronger. The highest yielding stock from the list has a 3.45 percent yield.

Here are my favorite stocks:

China Mobile (CHL) has a market capitalization of $229.63 billion. The company employs 188,000 people, generates revenue of $91.551 billion and has a net income of $21.136 billion. China Mobile's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $41.536 billion. The EBITDA margin is 45.37 percent (the operating margin is 26.86 percent and the net profit margin 23.09 percent).

Financial Analysis: The total debt represents 0.48 percent of China Mobile's assets and the total debt in relation to the equity amounts to 0.70 percent. Due to the financial situation, a return on equity of 18.84 percent was realized by China Mobile. Twelve trailing months earnings per share reached a value of $5.23. Last fiscal year, China Mobile paid $2.79 in the form of dividends to shareholders. Earnings are expected to grow by ! 24.30 percent annual.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.93, the P/S ratio is 2.50 and the P/B ratio is finally 1.93. The dividend yield amounts to 3.92 percent and the beta ratio has a value of 0.30.

Accenture (ACN) has a market capitalization of $62.20 billion. The company employs 257,000 people, generates revenue of $29.777 billion and has a net income of $2.824 billion. Accenture's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.466 billion. The EBITDA margin is 15.00 percent (the operating margin is 13.00 percent and the net profit margin 9.49 percent).

Financial Analysis: The total debt represents 0.00 percent of Accenture's assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 63.64 percent was realized by Accenture. Twelve trailing months earnings per share reached a value of $4.79. Last fiscal year, Accenture paid $1.35 in the form of dividends to shareholders. Earnings are expected to grow by 10.12 percent annual.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.23, the P/S ratio is 1.77 and the P/B ratio is finally 12.51. The dividend yield amounts to 2.08 percent and the beta ratio has a value of 0.91.

Canadian National Railway (CNI) has a market capitalization of $42.82 billion. The company employs 23,925 people, generates revenue of $9.636 billion and has a net income of $2.603 billion. Canadian National Railway's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.477 billion. The EBITDA margin is 46.46 percent (the operating margin is 37.15 percent and the net profit margin 27.02 percent).

Financial Analysis: The total debt represents 25.88 percent of Canadian National Railway's assets and the total debt in relation to the equity amounts to 62.62 percent. Due to the financial situation, a return on equity of 24.70 p! ercent wa! s realized by Canadian National Railway. Twelve trailing months earnings per share reached a value of $5.75. Last fiscal year, Canadian National Railway paid $1.46 in the form of dividends to shareholders. Earnings are expected to grow by 11.20 percent annual.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.71, the P/S ratio is 4.35 and the P/B ratio is finally 4.01. The dividend yield amounts to 1.61 percent and the beta ratio has a value of 0.96.

Bunge (BG) has a market capitalization of $11.65 billion. The company employs 36,000 people, generates revenue of $60.991 billion and has a net income of $378.00 million. Bunge's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.489 billion. The EBITDA margin is 2.44 percent (the operating margin is 1.01 percent and the net profit margin 0.62 percent).

Financial Analysis: The total debt represents 21.44 percent of Bunge's assets and the total debt in relation to the equity amounts to 53.85 percent. Due to the financial situation, a return on equity of 3.49 percent was realized by Bunge. Twelve trailing months earnings per share reached a value of $1.88. Last fiscal year, Bunge paid $1.06 in the form of dividends to shareholders. Earnings are expected to grow by 17.35 percent annual.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 42.03, the P/S ratio is 0.19 and the P/B ratio is finally 1.14. The dividend yield amounts to 1.52 percent and the beta ratio has a value of 1.01.

Take a closer look at the full list of international dividend growth stocks with strongest 5-Y earnings forecasts. The average P/E ratio amounts to 29.18 and forward P/E ratio is 17.92. The dividend yield has a value of 1.82 percent. Price to book ratio is 4.86 and price to sales ratio 3.91. The operating margin amounts to 22.51 percent and the beta ratio is 1.03. Stocks from the list have an average debt to equity ratio of 0.60.

Do you like this a! rticle? I! f yes, please support us and hit the button for a Facebook Like, make a tweet or post a comment in the Dividend Yield community! Thank you so much, we really appreciate it.

Related Stock Ticker Symbols:
CHL, ENB, WPPGY, LAZ, RBA, ACN, AWH, INFY, CCJ, THI, CNI, PNR, BG, CNQ, NVO, CP, HDB, KOF, ARMH

Selected Articles:
· 17 Low-Priced Dividend Achievers With Low P/S Ratios
· 13 Cheap Stocks With Dividend Yields Over 3% And A Predictable Business
· A Dozen Reasonably Priced Dividend Aristocrats With Buy Or Better Recommendation
· 15 Cheap International Dividend Achievers

*If you would like to receive more dividend stock ideas and the free Dividend Weekly, you should subscribe to my free e-mail list. Alternatively, you can follow me on Facebook or Twitter.

Sunday, September 29, 2013

Post-Lehman Crash, Altegris’ Jon Sundt Defends Alternatives as Hedge Against Volatility

“Celebration” is not the word that comes to mind as market players observe the fifth-year anniversary of the Lehman Brothers crash.

Rather, what now inspires investors to remember the crash is the cautionary tale it offers of the terrible things that can happen when the financial world spins out of control. Indeed, “caution” is a better word to describe why anybody should mark the date of Sept. 15, 2008, when Lehman filed for bankruptcy, according to Jon Sundt, president and chief executive of alternative investment firm Altegris.

Jon Sundt, Altegris president and CEO“I think 2008 crystallized this idea that you need to be diversified,” Sundt (left) said in a recent interview with ThinkAdvisor. “The people who didn’t have diversified portfolios to this day are still suffering. It’s a stark reminder that you had better build a portfolio that can survive bad unforeseen outcomes.”

Sundt remembered that he was sitting at his desk in Altegris’ headquarters in La Jolla, Calif., the day that Lehman crashed.

“It was a bit of ‘shock and awe,” he recalled. “We had dozens of managers that we allocate to and thousands and thousands of investors. My biggest concern at the time was: Do we have any counterparty risk? We quickly determined that we had no direct exposure to Lehman. Some of our managers didn’t do so well, but those in the managed futures space did well, and so did people with hedges.”

Sundt’s own firm has gone through transmutations since the Lehman crash. After he founded Altegris in 2002, Genworth Financial bought his firm in 2010 for approximately $35 million, and earlier this year Genworth sold its wealth management unit, including Altegris, for $412.5 million to a partnership of two private equity firms, Genstar Capital and Aquiline Capital. Altegris currently has more than $4 billion in assets under management and employs 120 individuals.

Today, Sundt focuses much of his energy on promoting the idea of using equity and fixed income long/short strategies as core allocations. To be sure, that focus stems from Altegris’ relatively recent launches of the Altegris Fixed Income Long Short (FXDAX, FXDIX, FXDNX), on Feb. 28 this year, and the Altegris Equity Long Short Fund (ELSAX, ELSIX, ELSNX), on April 30, 2012.

Best Stocks To Buy

Year to date, according to Morningstar, FXDIX has outperformed its benchmark, the Barclays U.S. Aggregate Bond Index (which tracks the broader debt market in the same way that the S&P 500 follows stocks), with a $10,000 investment in FXDIX currently yielding $10,090 versus the Barclays index’s $9,686. The growth of $10,000 for ELSIX currently comes to $10,915, underperforming the benchmark S&P 500 index’s $12,018 by a wide margin.

“This is a prudent approach,” Sundt said in defense of ELSIX’S underperformance. “You want to participate in this party, but you don’t want to drink too much. You want to participate in a way to preserve capital. A great way to do that is equity long/short. Our managers have exposure to the market for the upside but short positions in case the market corrects. If you’re 100% net long, you can get hurt.”

Similarly, Sundt noted, FXDIX offers a smoother ride for fixed income investors during an extremely volatile period for bonds. “If you have a portfolio with a lot of holdings, it may be a good idea to get into a long/short fixed-income fund, which is a corollary to long/short equities,” he said.

More thoughts from Jon Sundt on why fixed income long/short is a good idea:

---

Read 5 Years After Lehman Crash: ‘Dark Times’ Ahead at ThinkAdvisor.

Saturday, September 28, 2013

The Better Option: American Capital Agency or Annaly?

It's no secret that mREITs such as American Capital Agency (NASDAQ: AGNC  ) (NASDAQ: AGNC  ) (NASDAQ: AGNC  ) ,  Annaly Capital Management (NYSE: NLY  ) (NYSE: NLY  ) (NYSE: NLY  ) , and CYS Investments have gone through a very turbulent trading period, with all major players losing a sizable share of market value.

Mortgage REITs seem to be moving in an elastic inverse correlation to 10-year Treasury yields, and that's perfectly understandable. These leveraged investments are also reacting strongly to shorter-term developments such as the announcement that CYS CEO Kevin Grant purchased 34,000 shares of stock. This led to spectacular gains for mREITs -- CYS led the rally, shooting up a hefty 7.1%, American Capital rose 4.1%, and Annaly gained 3.2% after this news last month.

Prior to the announcement, CYS stock had lost close to 47% since March, and the gains must have come as welcome news for shareholders. The firm is one of the highest dividend-paying mREITs in the market with a 17.5% dividend yield.

Investors are now wondering which mREIT offers better investment value between the two behemoths of the space: American Capital Agency or Annaly Capital Management. Many mREIT investors not only need high income paying stocks but also those that offer a certain level of protection against loss of capital. To compare them, investors can use the following criteria:

Earnings Interest rates spread Dividends Book value

Earnings
Annaly's second-quarter results looked fairly impressive, comparatively. The firm earned net income of $1.6 billion, equivalent to $1.71 per share. Annaly's second-quarter numbers look even more impressive when you compare them to last year's second-quarter results, when the firm booked a $91 million loss, or $0.10 loss per share.

In sharp contrast, American Capital Agency's second-quarter results looked pretty ugly. The firm booked a nasty overall loss of $936 million, or $2.37 per share.

Interest rates spread
Interest rates fluctuated wildly in the second quarter, thus improving the interest rate spread for many mREITs. The cost of borrowing rose at a slower pace compared to the pace at which yields from investments rose. Annaly reported a 0.98% net interest spread, an improvement over 0.91% in the first quarter. The interest rates spread was, however, considerably lower than last year's second-quarter spread, which came in at 1.54%. The firm's asset yield for its interest-earning portfolio stood at 2.51%. Its average cost of funds shot up seven basis points to 1.53%.

American Capital Agnecy's interest rate spread for the second quarter came in at 1.86%; a marginal drop compared to 1.87% in the first quarter. If we exclude the firm's TBA dollar roll income, the net spread falls to just 1.49%, a slight drop from the first quarter's 1.51%. American Capital Agency's asset yield stood at 2.71% while its average cost of funds shot up 15 basis points to 1.43%.

The average yield on assets rose by a higher absolute amount than the cost to borrow, leading to improved interest rates spread for both mREITs. Although the spread for both firms was OK, American Capital Agency beats Annaly hands-down for a much larger spread. Annaly Capital Management, however, beats American Capital Agency to the tape when we consider interest rate spread growth. Growth in interest rates spread is more important for capital appreciation than larger, but stagnant, absolute spreads. Annaly takes this category.

Top 10 Oil Companies To Watch For 2014

Dividends
Annaly reported a $0.40 dividend per share for the quarter, a 2.25% sequential drop. The dividend is also considerably lower than 2012's second-quarter dividend of $0.55. Although Annaly's dividend for the quarter was quite low, it was well within the firm's estimated taxable income per share of $0.47. This means the firm had sufficient cash to pay out the dividend. At a share price of $11.50, the dividend is equivalent to an annualized yield of a respectable 14%.

American Capital Agency reported a second-quarter dividend of $1.05 per share, down 16% sequentially. Although the firm's dividend fell considerably, it still beat consensus estimates of about $1.00 per share. The $1.05 payment is less than the firm's dollar roll income and net spread of $1.15 per share. American Capital Agency, therefore, had sufficient cash to pay out the dividend. The dividend yield works out to be around 18.4%, based on today's price. This helps to buttress the firm's solid reputation as an all-weather mREIT dividend play.

Interest rates seem to have stabilized, and it is quite likely that dividends for both firms will remain around these levels for the rest of the year. Although American Capital Agency takes the cake for higher absolute dividend yield of 18.4% compared to Annaly's 14%, its dividend deterioration is outpacing Annaly's at 16% vs. 11%. If the deterioration in dividends continues at these rates, American Capital Agency's payout will eventually be lower than Annaly's.

Book value
Annaly's stock is currently trading 12% below the most recently reported book value. American Capital Agency is trading at 11% below book.

The volatility of mortgage-backed securities prices has led to both stocks declining considerably in the third quarter. In the previous quarter, Annaly's book valued declined roughly 18% while American Capital Agency experienced a nearly 20% decline. Annaly and its slightly more conservative strategy, therefore, lost slightly less book value and is the winner in this category.

The better value for investors
American Capital Agency reported far worse earnings in the second quarter than Annaly. Although the firm has a larger interest rate spread in absolute terms, its spread remains stagnant while Annaly's is expanding. Book values for both companies remain well above current stock prices. American Capital Agency pays a higher dividend than Annaly, but its dividend is falling at a faster pace.

At this point, Annaly may be the mREIT that offers the better value for investors. 

Dividend stocks, like well-managed REITs, can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

Thursday, September 26, 2013

Why college students shy away from CFP exam

Last month, my colleague Mark Schoeff filed a story about a recent survey showing that more than half of college students who had completed financial planning coursework at three universities had decided not to sit for the national exam that would qualify them as certified planners.

Apparently, many felt the test is too hard. I feel their pain.

After completing seven college-level courses at the University of Virginia earlier this year, I was proud to be awarded a certificate in Certified Financial Planning.

I thought balancing work and school was a challenge, but as I am half way through the process of cramming for the CFP exam in November, I realized that this is the hard part.

I knew I needed a review course to prepare for the rigorous two-day, 10-hour exam. I had heard good things about several review programs including Keir, Zahn and Dalton. By process of elimination, I chose the Dalton Review because it offered an in-person review class in the Washington, DC area where I live. (So did the Zahn course but its schedule conflicted with an out-of-town wedding that I plan to attend).

Top Value Companies To Own For 2014

After registering for the course on-line and forking over the $1,195 payment, I received a box i

Wednesday, September 25, 2013

A Bigger, Better Bottled Water Coming to Your Grocer's Shelves Soon (WTER, PRMW)

Look out Primo Water Corporation (NASDAQ:PRMW), there's a serious threat nipping out your heels, and there way of "doing bottled water" may be a heck of a lot easier for consumers to swallow than your way. The name of that budding competition? Alkaline Water Company Inc. (OTCBB:WTER). In fact, WTER became just a little more competitive on Tuesday thanks to widening its reach.... again.

If you've never heard of Alkaline Water Company or its flagship product Alkaline 84, don't worry - you're not alone. That's because the bottled water brand, for all intents and purposes, was only launched a couple of months ago. It's been a smash hit everywhere it's been put on grocers' shelves, however, and that momentum seems to be reaching a critical mass (read 'self-sustaining') where the more consumers, grocery stores, and distributors buzz about it, the more other consumers, other grocery stores, and other distributors want it.

WTER fills-in a surprisingly-still-open gap in the bottled water market, filling the void between the cases of Dasani or Aquafina a water drinker may grab in a beverage aisle at a local grocer, and the Primo Water 5-gallon jug refill dispenser at the front of the store.

The former (small 20 ounce bottles) may be handy for "on the go" situations, but wasteful when it comes to landfills, and not particularly convenient for family-sized, from-the-fridge needs. At the other end of the spectrum is PRMW. Admittedly, the large refilling jugs are eco-friendly, in that the system doesn't pollute landfills or crowd recycling centers with plastic bottles, but let's face it - a five gallon jug of anything isn't convenient for most families because of its weight or its size. A fully-refilled Primo Water container weighs about 40 pounds, and carting the thing to and from the store isn't exactly convenient regardless of the weight. The Alkaline Water Company solution? A one-gallon and 3-liter container you can grab right off the shelf. The PET, BPA-free bottles are also eco-friendly.

It's not just the convenience of the jug that has the likes of Primo Water Corporation, Dasani (owned by Coca-Cola) or Aquafina (owned by Pepsi) sweating, though. Alkaline 84 is packed with key minerals - 84 in all - including key alkalis a body needs to be as healthy as possible. Most other waters, in any form, don't offer the same health benefit.

Great, but what was it that Alkaline Water Company did yesterday that's causing another round of angst for PRMW? It added another distributor; a company called KeHE Distributors, which puts goods on the shelves of over 33,000 different grocery venues all across North America. That's a HUGE proverbial widening of the footprint.

While WTER could choose to market itself to retailers, and perhaps (though not guaranteed) enjoy slightly wider margins as a result, that's not the most effective move for the budding company. In the food and beverage world, it's the distributors that have the leverage with, and exposure to, the retailers. The goal is to get the right kind of distributor fronting for you so you can focus on making a great product. KeHE is very much a "right kind of distributor."

Top 10 Tech Companies To Invest In Right Now

Here's the thing... this isn't the company's first distributor. It's not even the second or third distributor WTER has put in its corner. It's the fourth distributor that has taken on the Alkaline 84. The big deal is, that's a large number of front-men, especially considering the company's only been up and running for a few weeks. If the early interest in carrying the product from distributors is any indication, then Alkaline 84 could build a nationwide presence in just a few months. Considering that the bottled water business is worth more than $6 billion per year in the U.S. alone. [Primo Water did $91 million in sales last year, fueled by a questionably-convenient 5-gallon jug refilling business.]

The bottom line is, though most investors and consumers may not have heard of the company yet, given the growth rate and the growing number of channels, and investment in WTER at this stage of the company's life is very much a ground-floor opportunity. Speculative? Sure - what isn't with a new company? But, with bottled water overtaking soda consumption in the United States last year - with the lead poised to widen this year - while consumers continue to get pickier about the quality of water they're drinking, Alkaline Water Company Inc. is a right-time, right-place proposition.

For more on the Alkaline Water Company, visit the

SCN's stock research page here

. Here's the

corporation's website

.

Tuesday, September 24, 2013

Top Gold Companies For 2014

Stocks in Japan and Hong Kong suffered sharp losses today, and major European markets are also in the red. U.S. stocks look to be following their lead this morning, with the S&P 500 (SNPINDEX: ^GSPC  ) and the narrower, price-weighted Dow Jones Industrial Average (DJINDICES: ^DJI  ) down 0.8% and 0.64%, respectively, at 10:05 a.m. EDT.

Gold is losing its luster
On the back of a challenging week during which it lost $60 per ounce, gold is reeling on Monday, down more 5%, having dipped below $1,400 intraday for the first time since March 2011. Gold is a highly volatile asset, and recent downward momentum could be nothing more than a spate of volatility in a long-term secular uptrend. Still, I think Societe Generale's research note of April 2, titled "The End of a Gold Era," looks increasingly prescient. The report included an end-of-year price target of $1,375, and that figure is now in sight. Ten days later, Goldman Sachs piled on with a year-end forecast of $1,450.

Top Gold Companies For 2014: Golden Star Resources Ltd(GSS)

Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. It owns and operates the Bogoso/Prestea gold mining and processing operation that covers approximately 40 kilometers of strike along the southwest-trending Ashanti gold district in western Ghana; and the Wassa open-pit gold mine located to the east of Bogoso/Prestea in southwest Ghana. The company also has an 81% interest in the Prestea underground gold mine located in Ghana. In addition, it holds interests in various gold exploration projects in Ghana, Sierra Leone, Burkina Faso, Niger, and Cote d?Ivoire, as well as holds and manages exploration properties in Brazil in South America. The company was founded in 1984 and is based in Littleton, Colorado.

Top Gold Companies For 2014: Agnico-Eagle Mines Limited(AEM)

Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. The company primarily explores for gold, as well as silver, copper, zinc, and lead. Its flagship property includes the LaRonde mine located in the southern portion of the Abitibi volcanic belt, Canada. The company was founded in 1953 and is based in Toronto, Canada.

Top 10 Value Companies To Own For 2014: Australian Dollar(AU)

AngloGold Ashanti Limited primarily engages in the exploration and production of gold. It also produces silver, uranium oxide, and sulfuric acid. The company conducts gold-mining operations in South Africa; continental Africa, including Ghana, Guinea, Mali, Namibia, and Tanzania; Australia; and the Americas, which include Argentina, Brazil, and the United States. It also has mining or exploration operations in the Democratic Republic of the Congo, Guinea, and Colombia. As of December 31, 2010, the company had proved and probable gold reserves of 71.2 million ounces. The company has a strategic alliance with Thani Dubai Mining Limited to explore, develop, and operate mines across the Middle East and parts of North Africa. AngloGold Ashanti Limited, formerly known as Vaal Reefs Exploration and Mining Company Limited, was founded in 1944 and is headquartered in Johannesburg, South Africa.

Advisors' Opinion:
  • [By Profit Confidential]

    Graham Ehm, Executive Vice President of South African-based AngloGold Ashanti Limited (NYSE: AU), one of the biggest gold producers in the global economy, stated the company is looking to save $500 million over the next 18 months, as capital expenditures will only be going towards their highest-quality assets. (Source: Mining Weekly, August 5, 2013.)

  • [By Sally Jones]

    Anglogold Ashanti Limited (AU)

    Down 65% over 12 months, Anglogold Ashanti Limited has a market cap of $4.85 billion, and trades with a P/E of 8.10.

Top Gold Companies For 2014: CME Group Inc.(CME)

CME Group Inc. operates the CME, CBOT, NYMEX, and COMEX regulatory exchanges worldwide. The company provides a range of products available across various asset classes, including futures and options on interest rates, equity indexes, energy, agricultural commodities, metals, foreign exchange, weather, and real estate. It offers various products that provide a means of hedging, speculation, and asset allocation relating to the risks associated with interest rate sensitive instruments, equity ownership, changes in the value of foreign currency, credit risk, and changes in the prices of commodities. CME Group owns and operates clearing house, CME Clearing, which provides clearing and settlement services for exchange-traded contracts and counter derivatives transactions; and also engages in real estate operations. Its primary trade execution facilities consist of its CME Globex electronic trading platform and open outcry trading floors, as well as privately negotiated transact ions that are cleared and settled through its clearing house. In addition, the company offers market data services comprising live quotes, delayed quotes, market reports, and historical data services, as well as involves in index services business. CME Group?s customer base includes professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, and governments. It has strategic partnerships with BM&FBOVESPA S.A., Bursa Malaysia Derivatives, Singapore Exchange Limited, Green Exchange, Dubai Mercantile Exchange, Johannesburg Stock Exchange, and Bolsa Mexicana de Valores, S.A.B. de C.V., as well as joint venture agreement with Dow Jones & Company. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. CME Group was founded in 1898 and is headquartered in Chicago, Illinois.

Top Gold Companies For 2014: Claude Resources Inc.(CGR)

Claude Resources Inc. engages in the acquisition, exploration, and development of precious metal properties, as well as production and marketing of minerals in Canada. It primarily explores for gold in northern Saskatchewan and northwestern Ontario. The company holds interests in the Seabee gold mine located at Laonil Lake, northern Saskatchewan; and the Madsen property that consists of 6 contiguous claim blocks totaling approximately 10,000 acres, located in the Red Lake Mining District of northwestern Ontario. It also holds interest in the Amisk Gold project, which covers an area of 13,800 hectares in the province of Saskatchewan. The company was founded in 1980 and is based in Saskatoon, Canada.

Top Gold Companies For 2014: NEW GOLD INC.(NGD)

New Gold Inc. engages in the acquisition, exploration, extraction, processing, and reclamation of mineral properties. The company primarily explore for gold, silver, and copper deposits. Its operating properties include the Mesquite gold mine in the United States; the Cerro San Pedro gold-silver mine in Mexico; and the Peak gold-copper mine in Australia. The company also has development projects, including the New Afton gold, silver, and copper project in Canada; and a 30% interest in the El Morro copper-gold project in Chile. The company was formerly known as DRC Resources Corporation and changed its name to New Gold Inc. in June 2005. New Gold Inc. was founded in 1980 and is headquartered in Vancouver, Canada.

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

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

Top Gold Companies For 2014: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Monday, September 23, 2013

Top Portfolio Products: Goldman Sachs Adds Real Return Fund

New products introduced over the last week include a real return fund from Goldman Sachs Asset Management and an open-end mutual fund from RiverPark.

In addition, Morgan Creek Capital Management launched an open-end alternative fund and Allianz Life offered a new indexed variable annuity.

Here are the latest developments of interest to advisors:

1) Goldman Sachs Asset Management Launches Real Return Fund

Goldman Sachs Asset Management announced the launch of the Goldman Sachs Multi-Asset Real Return Fund (GHRAX), which it says should help investors access to a multi-asset class solution that seeks to help individuals achieve real return over inflation.

GHRAX provides exposure to inflation-sensitive asset classes, including opportunistic fixed income, commodities and select equity sectors. This diversified strategy seeks to perform well across most market environments, and specifically, seeks to provide real return during periods of rising and high inflation.

Samantha Davidson, Raymond Chan, and Chris Lvoff from GSAM’s global portfolio solutions team are GHRAX’s co-portfolio managers. In addition to A shares, the fund is available in C, I, R and IR shares.

2) River Park Introduces RiverPark Structural Alpha Fund

RiverPark Advisors, LLC announced recently that it has launched the RiverPark Structural Alpha Fund (RSAFX, RSAIX),a new open-end mutual fund that seeks to give investors exposure to the broad-based equity markets while limiting downside risk and volatility by investing primarily in highly liquid global index options. The fund was initially made available to investors on July1.

The RiverPark Structural Alpha Fund is a conversion of a hedge fund called Wavecrest Partners Fund I, which was launched in September 2008. Justin Frankel and Jeremy Berman, who founded Wavecrest and managed the fund, have joined RiverPark and will continue to manage the fund in its new mutual fund format.

3) Morgan Creek Capital Management Launches Open-End Alternative Fund

Morgan Creek Capital Management recently announced the launch of its first open-end alternative mutual fund, featuring a broadly diversified global portfolio, actively managed utilizing a multi-asset class investment strategy with daily liquidity. The Morgan Creek Tactical Allocation Fund (MIGTX, MAGTX) will express Morgan Creek’s views on global asset allocation through a number of asset classes including equities, fixed income, currencies, commodities and cash.

The investment objective is to provide long-term total returns while utilizing a strategy that seeks lower volatility than a traditional portfolio of equities and fixed income securities. The fund will incorporate a broad set of global strategies across asset classes, geographies and sectors, including directional as well as long-short strategies.

4) Allianz Life Launches New Indexed Variable Annuity

Allianz Life Insurance of North America recently announced the launch of Allianz Index Advantage, a new indexed variable annuity (IVA) that aims to offer a balance of growth potential and some downside protection. It provides flexibility through two different strategies, the index performance strategy and the index protection strategy, and also includes built-in death benefit protection.

Unlike variable annuities with guaranteed minimum accumulation benefits that require waiting periods of up to 10 years, the new product provides the opportunity for benefits to be protected every year. Compared to fixed index annuities (FIAs), the IVA increases the amount of return potential by having much higher limits (or caps) on the interest credit coming from the growth of an equity index in exchange for less protection.

IVAs, according to Allianz, offer protection from the first 10% of losses per year versus guarantees of no losses from a traditional FIA, although some IVAs will offer that option in exchange for less upside potential. This is a fundamental shift for accumulation choices among variable annuities.

Read the Sept. 13 Portfolio Products Roundup at ThinkAdvisor.

Saturday, September 21, 2013

'Mad Money' Lightning Round: I'm Liking Starbucks

Hot Warren Buffett Stocks To Watch Right Now

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK (TheStreet) -- Here's what Jim Cramer had to say about some of the stocks callers offered up during the "Mad Money Lightning Round" Friday evening:

Starbucks (SBUX): "I like this stock so much I'd buy some even up here."

Pembina Pipeline (PBA): "No, that's Canadian and I don't recommend Canada right now." Hexcel (HXL): "This, along with BE Aerospace (BEAV), are really fine companies." Cheniere Energy (LNG): "I'd let it come in a little, then buy." Northern Tier Energy (NTI): "No, I like EOG Resources (EOG). That's the one you want to be in." Valero Energy (VLO): "I don't like the refiners that much, I like the exploration and production guys like EOG." To read a full recap of "Mad Money" on CNBC, click here. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

Wednesday, September 18, 2013

Company Creating $25K Doomsday Timeshares Beneath Ground for Survivalists

doomsday-timesharesA company hoping to cash in on people’s fear of the potential doom facing the world are creating the perfect utopian world for doomsday survivalists.

And that world can yours for an easy payment of $25,000.

Terra Vivos is building underground doomsday timeshares — communities “built to withstand a 50-megaton nuclear blast 10 miles away, 450mph winds, a magnitude-10 earthquake, 10 days of 1,250°F surface fires, and three weeks beneath any flood.”

The communities offer Luxury Class and Economy Class, which are sure to be respected when all rule of law has been eliminated and the earth is ravaged by nuclear holocaust.

From RoadTrippers:

The shelter is located 50-150ft below the Missouri River bluffs, in part of a former limestone mine, known as the Atchison Storage Facility. This facility served as a secure bunker complex for the U.S. government since World War 2 up until 2013, when the company behind the Vivos Survival Shelter and Resort acquired a large portion of the 2.7 million sq. ft. underground storage facility. The Vivos shelters will also come with their very own “Cryovaults” that will house “reproductive gamete cells and DNA of humans and animals for a potential re-population of the Earth.”

Top 10 Casino Companies For 2014

Why panic alone when you can do it with neighbors?

Monday, September 16, 2013

New Potash Trading Company in Belarus Will Not Change New Market Dynamics

The Belarusian Potash Company (BPC) lives again. Ever since Russian potash producer Uralkali pulled out of the trading company in late July, its sole partner, Belaruskali, has been fighting the dissolution, primarily by charging the Russian firm's CEO and its principal owner with abuse of power.

Belarus's president today signed a decree creating a new potash trading company that also will be called BPC and declared that the Belarusian government would cancel export duties on potash until the end of this year to stabilize the operations of the trading company's sole member, Belaruskali.

BPC had been one of two major marketing groups for potash. The other, Canpotex, is based in Canada and markets potash production from Potash Corp. of Saskatchewan Inc. (NYSE: POT), Agrium Inc. (NYSE: AGU) and the Canadian arm of Mosaic Co. (NYSE: MOS). The two marketing organizations (cartels?) controlled about two-thirds of the world's production of potash and had for years maintained high prices for potash by limiting production.

Russia's Uralkali pulled out of BPC and immediately lowered its potash prices in an effort to grab market share. Uralkali's action virtually immediately lowered the share prices of the three North American producers' stocks.

Since July 30, the date of Uralkali's announcement, shares of Potash Corp. and Mosaic have dropped 21%. Shares of Agrium, which depends less on potash production, have fallen 8%. Over the past 12 months, Agrium's stock is down about 15%, while Potash Corp. and Mosaic shares are down around 28%.

Today's announcement of the rejuvenated BPC is unlikely to pull the North American stocks up. Russia's determination to chase volume instead of a stable price has led to steep price declines, and the country shows no inclination to back off.

Top Stocks To Invest In Right Now

Shares of Potash Corp. are trading down 0.2% at about noon on Thursday, at $29.86 in a 52-week range of $28.55 to $44.56.

Mosaic's shares are down 1.1%, at $41.82 in a 52-week range of $39.75 to $64.65.

Agrium's shares are off 0.8%, at $84.19 in a 52-week range of $77.19 to $115.31.

Sunday, September 15, 2013

Top Medical Stocks To Own For 2014

With shares of Abbott Laboratories (NYSE:ABT) trading around $37, is ABT an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Abbott Laboratories�is engaged in the discovery, development, manufacture, and sale of a portfolio of science-based healthcare products. Abbott operates in four business segments: diagnostics, medical devices, nutritionals and generic pharmaceuticals. Geographically, 30 percent of its revenue is generated in the United States; 30 percent in Western Europe, Canada, Japan, and Australia, and 40 percent in the economies, including India, China, Russia, and Brazil. With developing economies comprising 40 percent of revenues for Abbott Laboratories, the company stands to see explosive profits in coming years from these growing countries. Look for Abbott Laboratories to provide the healthcare products desired and demanded by consumers and companies across the globe.

Top Medical Stocks To Own For 2014: Cannabis Science Inc (CBIS)

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

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

Top Medical Stocks To Own For 2014: Navidea Biopharmaceuticals Inc (NAVB.A)

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

Lymphoseek

< p>

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

AZD4694

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

RadioImmunoGuided Surgery

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

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

Top 5 Financial Stocks To Watch For 2014: Johnson & Johnson(JNJ)

Johnson & Johnson engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The Consumer segment provides products used in baby care, skin care, oral care, wound care, and women?s health care fields, as well as nutritional, over-the-counter pharmaceutical products, and wellness and prevention platforms under the brands of JOHNSON?S, AVEENO, CLEAN & CLEAR, JOHNSON?S Adult, NEUTROGENA, RoC, LUBRIDERM, DABAO, LISTERINE, REACH, BAND-AID, CAREFREE, STAYFREE, SPLENDA, TYLENOL, SUDAFED, ZYRTEC, MOTRIN IB, and PEPCID AC. The Pharmaceutical segment offers products in various therapeutic areas, such as anti-infective, antipsychotic, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, and virology. Its principal products include REMICADE for the treatment of immune me diated inflammatory diseases; STELARA for the treatment of moderate to severe plaque psoriasis; SIMPONI, a treatment for adults with moderate to severe rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis; VELCADE for the treatment of multiple myeloma; PREZISTA and INTELENCE for treating HIV/AIDS patients; NUCYNTA for moderate to severe acute pain; INVEGA SUSTENNAtm for the acute and maintenance treatment of schizophrenia in adults; RISPERDAL CONSTA for the management of bipolar I disorder and schizophrenia; and PROCRIT to stimulate red blood cell production. The Medical Devices and Diagnostics segment primarily offers circulatory disease management products; orthopaedic joint reconstruction, spinal care, and sports medicine products; surgical care, aesthetics, and women?s health products; blood glucose monitoring and insulin delivery products; professional diagnostic products; and disposable contact lenses. The company was founded in 1886 and is based in Ne w Brunswick, New Jersey.

Advisors' Opinion:
  • [By Victor Mora]

    Johnson & Johnson provides valuable and essential healthcare products and services to many consumers and companies operating worldwide. The stock has been on a powerful run towards all-time high prices where it is now consolidating. Over the last four quarters, earnings have decreased while revenue figures have increased, which have kept investors pretty happy. Relative to its peers and sector, Johnson & Johnson has been a year-to-date performance leader. Look for Johnson & Johnson to OUTPERFORM.

  • [By Sy_Harding]

    Johnson & Johnson (JNJ) engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company has raised distributions for 49 years in a row. The 10 year annual dividend growth rate is 13%/year. The last dividend increase was 5.60% to 57 cents/share. Analysts are expecting that Johnson & Johnson will earn $5.24/share in 2012. I expect that the quarterly dividend will exceed 61 cents/share in 2012. Yield: 3.50%

Top Medical Stocks To Own For 2014: Rexahn Pharmaceuticals Inc (RNN)

Rexahn Pharmaceuticals, Inc. (Rexahn) is a development-stage biopharmaceutical company. The Company focuses on the development of cures for cancer to patients worldwide. The Company�� pipeline features one drug candidate in Phase II clinical trials. The Company also has several other drug candidates in pre-clinical development. In addition, the Company has two renal cell carcinoma (CNS) candidates, Serdaxin, CNS Disorders drug for depression and neurodegenerative diseases and Zoraxel, which is a erectile dysfunction (ED) and sexual dysfunction drug that are in clinical stages and the Company is are exploring options for further development . The Company�� drug candidate, Archexin is an anticancer Akt inhibitor.

Archexin

Archexin is potent inhibitor of the Akt protein kinase (Akt) in cancer cells. Archexin has FDA orphan drug designations for five cancers (RCC, glioblastoma, and cancers of the ovary, stomach and pancreas). Multiple indications for other solid tumors can also be pursued. Archexin inhibit both activated and inactivated forms of Akt, and to reverse the drug resistance observed with the protein kinase inhibitors. Archexin is an antisense oligonucleotide (ASO) compound that is complementary to Akt mRNA, and selective for inhibiting mRNA expression and production of Akt protein. As of December 31, 2011, Archexin was in Phase II clinical trials for the treatment of pancreatic cancer with enrollment completed in September, 2011.

Serdaxin

Serdaxin is an extended release formulation of clavulanic acid, which is an ingredient present in antibiotics approved by the FDA. The Company had been developing Serdaxin for the treatment of depression and neurodegenerative disorders. From January to September, 2011, the Company conducted a randomized, double-blind, placebo-controlled study compared two doses of Serdaxin, 0.5 milligram and 5 milligram, to placebo over an eight-week treatment period for major depressive disorder (MDD) patients. As of Dec! ember 31, 2011, the Company had not made a determination of Serdaxin�� future paths or resource allocations to further develop Serdaxin to treat MDD.

Zoraxel

Zoraxel is an orally administered, on-demand tablet to treat sexual dysfunction. Zoraxel is a dual enhancer of neurotransmitters in the brain that play a key role in sexual activity phases of motivation and arousal, erection and release, and may be the ED drug to affect all three of these phases of sexual activity. As of December 31, 2011, the Company was evaluating how to proceed with the Phase IIb study of Zoraxel.

The Company�� Pre-clinical Pipeline Drug Candidates includes RX-1792, which is a small molecule anticancer EGFR inhibitor; RX-5902, which is a small molecule anticancer ribonucleic acid (RNA) helicase regulator; RX-3117, which is a Small molecule anticancer deoxyribonucleic acid (DNA) synthesis Inhibitor; RX-8243, which is a small molecule anticancer aurora kinase inhibitor; RX-0201-Nano, which is a nanoliposomal anticancer Akt inhibitor; RX-0047-Nano, which is an nanoliposomal anticancer HIF-1 alpha inhibitor and RX-21101, which is a nano-polymer Anticancer.

Top Medical Stocks To Own For 2014: StemCells Inc (STEM)

StemCells, Inc. (StemCells), incorporated in August 1988, is engaged in the research, development, and commercialization of stem cell therapeutics and related tools and technologies for academia and industry. The Company is focused on developing and commercializing stem and progenitor cells as the basis for therapeutics and therapies, and cells and related tools and technologies to enable stem cell-based research and drug discovery and development. The Company�� primary research and development efforts are focused on identifying and developing stem and progenitor cells as potential therapeutic agents. The Company has two therapeutic product development programs, including its CNS Program, which is developing applications for HuCNS-SC cells, its human neural stem cell product candidate, and its Liver Program, which is characterizing the Company�� human liver cells as a therapeutic product.

CNS Program

The Company in its CNS Program, is in clinical development with its HuCNS-SC cells for a range of disorders of the central nervous system. The CNS includes the brain, spinal cord and eye. In February 2012, the Company had completed a Phase I clinical trial in Pelizeaus-Merzbacher Disease (PMD), a fatal myelination disorder in the brain.

The Company�� CNS Program is focused on developing clinical applications, in which transplanting HuCNS-SC cells protect or restore organ function of the patient before such function is irreversibly damaged or lost due to disease progression. The Company�� initial target indications are PMD, and more generally, diseases in which deficient myelination plays a central role, such as cerebral palsy or multiple sclerosis; spinal cord injury, disorders in which retinal degeneration plays a central role, such as age-related macular degeneration or retinitis pigmentosa. The Company�� product candidate, HuCNS-SC cells, is a purified and expanded composition of normal human neural stem cells. Its HuCNS-SC cells can be directly transp! lanted.

Liver Program

Liver stem or progenitor cells offer an alternative treatment for liver diseases. A liver cellular therapy or cell-based therapeutic provide or support liver function in patients with liver disease. The Company held a portfolio of issued and allowed patents in the liver field, which cover the isolation and use of both hLEC cells and the isolated subset, as well as the composition of the cells themselves.

The Company�� range of cell culture products, which are sold under the SC Proven brand, includes iSTEM, GS1-R, GS2-M, RHB-A, RHB-Basal, NDiff N2, and NDiff N2B27. Its iSTEM is a serum-free, feeder-free medium that maintains mouse embryonic stem cells in their pluripotent ground state by using selective small molecule inhibitors to block the pathways, which induce differentiation. RHB-A is a defined, serum-free culture medium for the selective culture of human and mouse neural stem cells and their maintenance and expansion as adherent cell populations. RHB-Basal is a defined, serum-free basal medium. When supplemented with specific growth factors, this media is formulated for the propagation and differentiation of adherent neural stem cells. RHB-Basal can also be tailored to specific-cell type requirements by the addition of customer preferred supplements.

The Company�� NDiff N2 is a defined serum-free scell culture supplement for the derivation, maintenance, expansion and/or differentiation of human and mouse embryonic stem (ES) cells and tissue-derived neural stem cells supplement. Its NDiff N2-AF is a serum-free and animal component-free version of NDiff N2. Its NDiff N2B27 is a defined, serum-free medium for the differentiation of mouse embryonic stem cells to neural cell types. NDiff N27-AF is a serum-free and animal component-free version of NDiff N27. Its GS1-R is a serum-free media formulation shown to enable the derivation and long-term maintenance of true, germline competent rat embryonic stem cells without the add! ition of ! cytokines or growth factors. Its GS2-M is a defined, serum- and feeder-free medium for the derivation and long-term maintenance of true, germline competent mouse iPS cells.

The Company also markets a number of antibody reagents for use in cell detection, isolation and characterization. These reagents are also under the SC Proven brand and it includes STEM24, STEM101, STEM121 and STEM123. Its STEM24 is a human antibody that recognizes human CD24, also known as heat stable antigen (HSA), a glycoprotein expressed on the surface of many human cell types, including immature human hematopoietic cells, peripheral blood lymphocytes, erythrocytes and many human carcinomas. Its CD24 is also a marker of human neural differentiation. Its STEM101 is a human-specific mouse antibody that recognizes the Ku80 protein found in human nuclei. Its STEM121 is a human-specific mouse antibody that recognizes a cytoplasmic protein of human cells. Its STEM123 is a human-specific mouse antibody that recognizes human glial fibrillary acidic protein (GFAP).

The Company�� Other products marketed under SC Proven include total cell genomic DNA (gDNA), RNA and protein lysate reagents purified from homogenous stem cell populations for intra-comparative studies, such as Epigenetic fingerprinting, Southern, Western and Northern blots, PCR, RT-PCR and microarrays. This range of purified stem cell line lysates includes mouse embryonic stem (ES) cells propagated in SC Proven 2i inhibitor-based GS2-M media and mouse ES cell-derived and fetal tissue-derived neural stem (NS) cells propagated in SC Proven RHB-A media.

Top Medical Stocks To Own For 2014: Myriad Genetics Inc (MYGN)

Myriad Genetics, Inc. (Myriad) is a molecular diagnostic company. The Company is focused on developing and marketing predictive medicine, personalized medicine and prognostic medicine tests. It performs all of its molecular diagnostic testing and analysis in its own reference laboratories. These technologies include the cornerstone technologies of biomarker discovery, high-throughput deoxyribo nucleuc acid (DNA) sequencing, ribo nucleic acid (RNA) expression and multiplex protein analysis. The Company uses this information to guide the development of new molecular diagnostic tests that are designed to assess an individual's risk for developing disease later in life (predictive medicine), identify a patient's likelihood of responding to drug therapy and guide a patient's dosing to ensure optimal treatment (personalized medicine), or assess a patient's risk of disease progression and disease recurrence (prognostic medicine).

As of June 30, 2012, the Company had launched nine commercial molecular diagnostic tests. The Company markets these tests through its own approximate 385-person sales force in the United States. The Company also markets its BRACAnalysis, COLARIS, and COLARIS AP tests through its own European sales force and have entered into marketing collaborations with other organizations in selected Latin American, European and Asian countries. The Company also generates revenue by providing companion diagnostic services to the pharmaceutical, and biotechnology industries and medical research institutions utilizing its multiplexed immunoassay technology.

Molecular Diagnostic Tests

The Company's molecular diagnostic tests are designed to analyze genes, their mutations, expression levels and proteins to assess an individual's risk for developing disease later in life, determine a patient's likelihood of responding to a particular drug, assess a patient's risk of disease progression and disease recurrence and measure a patient's exposure to drug therapy to ensu! re optimal dosing and reduced drug toxicity. The Company's BRACAnalysis test is a analysis of the BRCA1 and BRCA2 genes for assessing a woman's risk of developing hereditary breast and ovarian cancer. BRACAnalysis accounted for 81.7% of the Company's total revenue during the fiscal year ended June 30, 2012. Its The Company's COLARIS test is an analysis of the MLH1, MSH2, MSH6 and PMS2 genes for assessing a person's risk of developing colorectal cancer or uterine cancer.

The Company's COLARIS AP test detects mutations in the APC and MYH genes, which cause a colon polyp-forming syndrome known as Familial Adenomatous Polyposis (FAP), a more common variation of the syndrome known as attenuated FAP, and the MYH-associated polyposis signature (MAP). The Company's MELARIS test analyzes mutations in the p16 gene to determine genetic susceptibility to malignant melanoma. The Company's OnDose test is a nanoparticle immunoassay that is designed to assist oncologists in optimizing 5-FU (fluorouracil) anti-cancer drug therapy in colon cancer patients on an individualized basis. The Company's PANEXIA test is a comprehensive analysis of the PALB2 and BRCA2 genes for assessing a person's risk of developing pancreatic cancer later in life. The Company's PREZEON test is an immunohistochemistry test that analyzes the PTEN gene and assesses loss of PTEN function in many cancer types.

The Company's Prolaris test is a 46-gene molecular diagnostic assay that assesses whether a patient is likely to have a slow growing, indolent form of prostate cancer that can be safely monitored through active surveillance, or a more aggressive form of the disease that would warrant aggressive intervention, such as a radical prostatectomy or radiation therapy. The Company's TheraGuide 5-FU test analyzes mutations in the DPYD gene and variations in the TYMS gene to assess patient risk of toxicity to 5-FU (fluorouracil) anti-cancer drug therapy.

Companion Diagnostic Services and Other Revenue

! Through M! yriad RBM Inc., the Company provides biomarker discovery and companion diagnostic services to the pharmaceutical, biotechnology, and medical researches industries utilizing its multiplexed immunoassay technology. The Company's technology enables the Company to screen large sets of clinical samples from both diseased and non-diseased populations against the Company's menu of biomarkers. The Company's companion diagnostic services consist of Multi-Analyte Profile (MAP), Multiplexed Immunoassay Kits and TruCulture.

The Company has compiled a library of over 550 individual human and rodent immunoassays for use in its multi-analyte profile (MAP) testing services. The Company has also developed RodentMAP, a panel for use in pre-clinical animal studies and OncologyMAP, which measures cancer-related proteins to assists researchers accelerate the pace of discovery, validation and translation of cancer biomarkers for early detection, patient stratification and therapeutic monitoring. The Company has developed multiplexed immunoassay kits that enable its customers to leverage its technology services with their in-house capabilities. The Company's internally developed multiplexed immunoassay kits include all of the components necessary for a customer to perform a test on their own Luminex instrument. TruCulture is a simple, self-contained whole blood culture that can be deployed to clinical sites around the world for acquiring cell culture data without specialized facilities or training.

Top Medical Stocks To Own For 2014: Cannabis Science Inc (CBIS.PK)

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

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

Top Medical Stocks To Own For 2014: Compugen Ltd.(CGEN)

Compugen Ltd. operates as a drug and diagnostic discovery company based on computer-based discovery capabilities to predict and select novel product candidates. Through in silico prediction and selection, the resulting novel molecules are synthesized and validated utilizing traditional in vitro and in vivo experimental procedures. The company provides these validated product candidates to pharmaceutical, biotech, and diagnostic companies under licensing and other commercialization arrangements. Its research and discovery efforts are focused primarily on therapeutic proteins and peptides, and monoclonal antibodies, and primarily in the fields of immunology and oncology. Its therapeutic peptide and protein related platforms include Protein Family Members Discovery Platform, Protein-Protein Interaction Blockers, GPCR Therapeutic Peptide Ligands, Disease-Associated Conformation Blockers, Intracellular Drug Delivery, Viral Peptides, and Splice Variant based Therapeutic Proteins . The company?s monoclonal antibody related platforms comprise Monoclonal Antibody Targets. Its other therapeutic and diagnostic platforms consist of Nucleic-Acid Disease Markers, Protein Disease Markers, Nucleic-Acid Preclinical Toxicity Markers, Non-SNP Drug Response Markers, and New Indications. Its therapeutic peptide and protein product candidates comprise CGEN-15001, a novel protein for the treatment of autoimmune disorders; CGEN-25017, a novel peptide antagonist of the Angiopoietin/Tie-2 pathway; CGEN-855, a peptide agonist of the FPRL1 GPCR receptor; CGEN-856 and CGEN-857, which are MAS GPCR peptide agonists; CGEN-25007, an antagonist of the gp96 protein; and CGEN-25009, a peptide of the LGR7 receptor. The company also offers monoclonal antibody target product candidates, including CGEN-671, a drug for multiple epithelial tumors; CGEN-928, a drug for multiple myeloma; and CGEN-15001T, a novel B7/CD28 family member. Compugen Ltd. was founded in 1993 and is based in Te l Aviv, Israel.

Advisors' Opinion:
  • [By Michael Shulman]

    Compugen Ltd. (NASDAQ: CGEN) is the world’s leading molecular intellectual property company. Based in Israel, the company has revolutionized the early phases of drug development through a highly automated process of exploring and selecting molecules with the greatest promise to serve as the basis for a particular treatment.

    The company licenses its peptides and proteins for a fee to the who’s who of the drug industry, and also receives a back-end cut of any drug that makes it to market using its discoveries.

    Compugen just announced that it entered into an agreement with Baize Investments under which it will receive $5 million in R&D funding. My target for CGEN is $20 in three to five years.

Friday, September 13, 2013

Best Tech Companies To Watch In Right Now

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Idenix Pharmaceuticals (NASDAQ: IDIX  ) has received a distressing two-star ranking.

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

Idenix facts

Headquarters

Cambridge, Mass. (1998)

Market Cap

$649.7 million

Industry

Best Tech Companies To Watch In Right Now: iGo Inc(IGOI)

iGo, Inc. provides accessories and power management solutions for the electronics industry in North America, Europe, and the Asia Pacific. The company designs, develops, manufactures, and distributes various products for computers and mobile electronic devices. Its products include power products that allow users to charge a range of mobile electronic devices from a single power source; rechargeable alkaline batteries; skins, cases, and screen protectors for mobile electronic devices; audio products, such as earbuds, headphones, and speakers; and stands for portable computers and pico projectors, and other accessories. The company offers its products primarily for portable computers, mobile phones, smartphones, e-readers, portable media players, and portable game consoles. It markets and sells its products to original equipment manufacturers, private-label resellers, retailers, resellers, distributors, and wireless carriers, as well as directly to end users through its igo .com and aerial7.com Websites. The company was formerly known as Mobility Electronics, Inc. and changed its name to iGo, Inc. in May 2008. iGo, Inc. was founded in 1995 and is based in Scottsdale, Arizona.

Best Tech Companies To Watch In Right Now: OSI Systems Inc.(OSIS)

OSI Systems, Inc., together with its subsidiaries, designs and manufactures electronic systems and components for homeland security, healthcare, defense, and aerospace markets worldwide. The company operates in three divisions: Security, Healthcare, and Optoelectronics and Manufacturing. The Security division provides security and inspection systems under the Rapiscan Systems name. Its products include baggage and parcel inspection, cargo and vehicle inspection, hold baggage screening, and people screening products to search for weapons, explosives, drugs, and other contraband, as well as for the verification of cargo manifests for monitoring the export and import of controlled materials. This division also offers various turn-key security screening solutions under the S2 trade name. The Healthcare division provides patient monitoring, diagnostic cardiology, and anesthesia delivery and ventilation systems under the Spacelabs name that are used in critical care, emergency, and perioperative areas within hospitals, as well as physician?s offices, medical clinics, and ambulatory surgery centers. The Optoelectronics and Manufacturing division offers optoelectronic devices for the aerospace and defense, avionics, medical imaging and diagnostic, renewable energy, biochemistry analysis, pharmaceutical, nanotechnology, telecommunications, construction, and homeland security markets under the OSI Optoelectronics name; and electronics manufacturing services to original equipment manufacturers under the OSI Electronics name. This division also provides laser-based remote sensing devices to detect and classify vehicles in toll and traffic management systems under the OSI Laserscan name; blood pressure cuffs and unifusors under the Statcorp Medical name; and solid-state laser products for aerospace, defense, telecommunication, and medical applications under the OSI LaserDiode trade name. The company was founded in 1987 and is headquartered in Hawthorne, California.

Top 10 Clean Energy Companies For 2014: Newport Corporation(NEWP)

Newport Corporation and its subsidiaries provide technology products and systems to scientific research, microelectronics, aerospace and defense/security, life and health sciences, and industrial markets in the United States, Europe, and the Pacific Rim. The company operates in three divisions: Photonics and Precision Technologies (PPT), Lasers, and Ophir. The PPT division provides photonics instruments and systems; vibration isolation systems and subsystems; precision positioning devices, systems, and subsystems; optics and optical hardware; opto-mechanical subassemblies and subsystems; and advanced manufacturing systems. It also offers automated systems for various applications in the manufacture of solar panels, and communications and electronic devices, including microwave, optical, radio frequency, and multi-chip modules. The Lasers division provides laser and laser-based system, such as ultrafast lasers and systems, diode-pumped solid state Q-switched lasers, diode-p umped solid state continuous wave (CW) and quasi-CW lasers, pulsed Nd:YAG and tunable lasers, and gas lasers. The Ophir division offers optics, photonics instruments, and three-dimensional non-contact measurement equipment and sensors. It also provides laser instrumentation, including laser power and energy meters, and laser beam profilers. This division serves the scientific research, microelectronics, aerospace, defense/security, life and health sciences, and industrial markets. The company offers its products under the ILX Lightwave, New Focus, Newport, Ophir, Optimet, Oriel Instruments, Richardson Gratings, Spiricon, and Spectra-Physics names. It sells its products to original equipment manufacturers and end-user customers through direct sales organizations, a network of independent distributors, and sales representatives, as well as through product catalogs and Web sites. Newport Corporation was founded in 1938 and is headquartered in Irvine, California.

Best Tech Companies To Watch In Right Now: LightPath Technologies Inc.(LPTH)

LightPath Technologies, Inc. engages in the design, development, manufacture, and distribution of optical components and assemblies in the United States and internationally. It offers precision molded glass aspheric optics, precision molded infrared molder optics, isolators, proprietary fiber-optic collimators, GRADIUM glass lenses, and other optical materials used to produce products that manipulate light. The company?s products are used for various applications in industries comprising defense products, medical devices, laser aided industrial tools, automotive safety applications, barcode scanners, optical data storage, hybrid fiber coax datacom, telecom, machine vision, and sensors. It sells its products through direct sales force, distributors and channel partners, catalog distributors, and own catalog and Internet site. The company was founded in 1985 and is headquartered in Orlando, Florida.

Best Tech Companies To Watch In Right Now: Digimarc Corporation(DMRC)

Digimarc Corporation provides media identification and management solutions to commercial entities and government customers in the United States and internationally. It develops and patents intellectual property to differentiate products and technology, mitigate infringement risks, and develop opportunities for licensing. The company?s patents relate to various methods for embedding and decoding digital information in video, audio, and images, whether the content is rendered in analog or digital formats. Its solutions are used to identify, track, manage, and protect content, as well as to enable new consumer applications to access networks and information from personal computers and mobile devices. The company?s technologies are used in various media identification and management products and solutions supporting various media objects, such as movies, music, banknotes, and secure credentials. Digimarc Corporation is based in Beaverton, Oregon. Digimarc Corporation operat es independently of L-1 Secure Credentialing, Inc. as of October 17, 2008.

Thursday, September 12, 2013

Does Dell Support Higher Prices?

Dell

With shares of Dell (NASDAQ:DELL) trading around $12, is DELL an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Dell is a global information technology company that offers its customers a range of solutions and services, which are delivered directly by Dell as well as other distribution channels. The company operates in four segments: Large Enterprise, Public, Small and Medium Business, and Consumer. Dell serves a wide range of customers: global and national corporate businesses; educational institutions; government, health care, and law enforcement agencies; small and medium-sized businesses; as well as end users. Through its four segments, Dell is able to provide information technology products to a growing user base around the world. As economies continue to develop, look for a company like Dell to provide important technology products for years to come.

Top 5 Small Cap Stocks To Buy For 2014

Dell founder Michael Dell and partner Silver Lake Management said they will not raise their $24.4 billion bid for the company. For now, Dell's bid is up against Carl Icahn and Icahn Enterprises (NYSE:IEP), but analysts are saying the race is too close to call — which offer the board will favor is anyone’s guess. A shareholder vote on Dell's offer is scheduled for Thursday, but Dell could delay that meeting to drum up support for his bid.

T = Technicals on the Stock Chart are Mixed

Dell stock has been declining over most of the last several years. The stock has seen its fair share of volatility, owing to the recent buyout battle. Analyzing the stock’s price trend and its strength can be done using key simple moving averages.

What are the key moving averages? They are the 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Dell is trading between its rising averages, which signal neutral price action in the near-term.

DELL

(Source: Thinkorswim)

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

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Dell Options

49.67%

0%

0%

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

Put IV Skew

Call IV Skew

August Options

Steep

Average

September Options

Steep

Average

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

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

E = Earnings Are Decreasing Quarter-Over-Quarter

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

2013 Q1

2012 Q4

2012 Q3

2012 Q2

Earnings Growth (Y-O-Y)

-80.56%

-29.00%

-44.90%

-12.50%

Revenue Growth (Y-O-Y)

-2.41%

-10.71%

-10.70%

-7.50%

Earnings Reaction

-0.22%

0.21%

-7.32%

-5.34%

Dell has seen decreasing earnings and revenue figures over the last four quarters. From these numbers, the markets have not been too happy with Dell’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Dell stock done relative to its peers, Apple (NASDAQ:AAPL), HP (NYSE:HPQ), IBM (NYSE:IBM), and the overall sector?

Dell

Apple

HP

IBM

Sector

Year-to-Date Return

26.38%

-19.17%

85.16%

1.46%

22.47%

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

Conclusion

Dell is an information technology company that offers a variety of products and services to companies and consumers worldwide. A recent buyout battle has put the company in the middle of a tug-of-war game, and its stock has struggled in recent years, trading sideways for most of this year. Over the last four quarters, earnings and revenue figures have been declining, which has produced disappointed investors. Relative to its peers and sector, Dell has been year-to-date performance leader. WAIT AND SEE what Dell does this coming quarter.

Wednesday, September 11, 2013

Can Toyota Cruise to Higher Prices?

Best Insurance Stocks To Buy For 2014

Toyota has faced a challenging environment in the last few years. The devastating tsunami that hit the Japanese coast in 2011, low automotive demand, and recently unfavorable exchange rates have all stifled revenues and earnings for the Japanese automaker. However, the stock has advanced almost 35 percent since the beginning of the year. Can Toyota carry this momentum into the second half of the year? Let's use our CHEAT SHEET investing framework to decide whether Toyota is an OUTPERFORM, WAIT AND SEE OR STAY AWAY.

C = Catalysts for the Stock's Movement

Toyota's bottom-line is extremely sensitive to fluctuations in the yen — every 1 yen change against the dollar affects Toyota's profitability by an astounding $353.4 million. A weaker yen benefits Toyota's sales, as around 75 percent of its cars go to overseas consumers.

Shinzo Abe has been somewhat of a savior to Toyota since his election last year. His aggressive stimulus plan has helped depreciate the yen by more than 20 percent against the dollar, leading to a 113.5 percent increase in first quarter earnings from the previous year's quarter.

In the chart below you can see the strong correlation between Toyota's rising share price and the depreciation of the yen. While the stock's strong performance can also be attributed to other factors — such as rebounding auto demand — there certainly seems to be a pattern between movements in Toyota's share price and the yen.

Favorable exchange rates aren't the only factor helping Toyota's earnings. Aggregate demand for vehicles has picked back up since the financial crisis. June auto sales increased 6.3 percent from last year, and were the strongest they have been since December 2007. Additionally, auto sales in China increase more than 10 percent last month. Toyota saw sales to its neighbor pick back up, following a temporary lull in sales caused by strained political relations between the two countries. Additionally, domestic sales in the U.S. are expected to grow at around 7 percent for the rest of the year. This is good news for Toyota as it heads into second quarter earnings.

E = Earnings are Increasing Year-over-Year

Toyota's earnings have increased over the last 5 quarters. The most recent quarterly figure was $2.05, beating analysts' estimates and showing substantial growth from the previous year's same quarter earnings of $0.96. Toyota's revenue declined around 11 percent in the first quarter — weak sales in China amidst political strife are still hurting revenues, but Toyota believes sales will improve there. Earnings have not been affected as much, with the company continuing to benefit from a depreciating yen. Toyota anticipates that net income will grow by 42 percent to $14 billion this year.

2013 Q1 2012 Q4 2012 Q3 2012 Q2 2012 Q1
Qtrly. EPS $2.04 $0.73 $2.10 $2.31 $0.96
EPS Growth YoY 113.5% 9.74% 213.1% 25230.0% 387.0%
Revenue Growth YoY -10.59% -1.86% 16.55% 63.44% 23.05%
E = Excellent Relative Performance to Peers

Toyota’s chief competitors are Ford (NYSE:F), GM (NYSE:GM), and Honda (NYSE:HMC). While Toyota isn't cheaply priced, and doesn't offer an attractive dividend like its American counterparts, investors are really paying for the company's high future growth prospects. Toyota's PEG ratio — the ratio of the P/E to the expected future earnings growth rate of the company — is the most attractive among the group. Lower PEG ratios tend to suggest that a stock is undervalued, if it performs in line with its future earnings growth. While these future earnings are only estimates, Toyota's low PEG ratio and high 2013 growth estimate are certainly bullish indicators.

TM F GM HMC
Trailing P/E 16.75 11.51 12.39 14.86
PEG Ratio 0.52 1.01 0.71 0.88
Growth Est. (2013) 19.3% 0.7% 1.5% 19.6%
ROE 9.09% 33.97% 15.2% 8.08%

T = Technicals on the Stock Chart are Strong

Toyota is currently trading at $129.29, well above both its 200-day moving average of $109.01, and its 50-day moving average of $120.68. The company has experienced a strong uptrend in the last year — up 70 percent in the last 12 months. Toyota is trading right around its 52-week high of $130.99 it achieved in late-May. Toyota’s relative strength index is flirting with 80, implying the stock may be overbought in the current, short-term period.

Conclusion

Toyota looks like it has put its worst days behind it, as Japan has largely recovered from the 2011 tsunami disaster, and the yen is at a more attractive rate for exporters. It looks like the weak yen is here to stay: Prime Minister Abe shows no sign of scaling back 'Abenomics,' and the U.S. dollar should appreciate as the domestic economy continues to strengthen. Additionally, increased global aggregate lightweight vehicle demand, as well as improved relations between China and Japan, should increase Toyota's sales in the coming quarters. Even though Toyota trades at a relatively high price, its future earnings growth is very attractive. Look for Toyota to OUTPERFORM.

Tuesday, September 10, 2013

Will Amazon See New Highs This Year?

With shares of Amazon (NASDAQ:AMZN) trading around $267, is AMZN an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Amazon serves consumers through its retail websites and focus on selection, price, and convenience. The company also manufactures and sells Kindle devices. It offers programs that enable sellers to sell their products on its websites, their own branded websites, fulfill orders through them, and programs that allow authors, musicians, filmmakers, app developers, and others to publish and sell content. Online commerce has been on the rise because of the convenience, efficiency, and relatively low prices offered. Amazon is a leader in the Internet commerce space so look for them to continue to see rising profits, as consumers and companies opt for this method of shopping and selling over the standard method.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

T = Technicals on the Stock Chart are Mixed

Amazon stock has been on a powerful move higher over the last decade. The stock makes new highs just about annually and seems to be on pace to continue higher. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Amazon is trading around its key averages which signal neutral price action in the near-term.

AMZN

(Source: Thinkorswim)

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

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Amazon Options

27.19%

43%

40%

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

Put IV Skew

Call IV Skew

June Options

Average

Average

July Options

Average

Average

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

2013 Q1

2012 Q4

2012 Q3

2012 Q2

Earnings Growth (Y-O-Y)

-35.71%

-43.66%

-528.57%

-97.56%

Revenue Growth (Y-O-Y)

21.88%

22.01%

26.94%

29.47%

Earnings Reaction

-7.24%

4.76%

6.87%

7.86%

Amazon has seen decreasing earnings and increasing revenue figures over the last four quarters. From these figures, the markets have generally been happy with Amazon’s recent earnings announcements.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

P = Average Relative Performance Versus Peers and Sector

How has Amazon stock done relative to its peers, eBay (NASDAQ:EBAY), Apple (NASDAQ:AAPL), Barnes & Noble (NYSE:BKS), and sector?

Amazon

eBay

Apple

Barnes & Noble

Sector

Year-to-Date Return

6.72%

8.63%

-15.04%

46.39%

5.49%

Amazon has been a relative average performer, year-to-date.

Conclusion

Amazon provides a convenient, efficient, and pocket-friendly retail experience to consumers and companies worldwide. The stock has been on a powerful run over the last decade which has taken it to all-time highs. Over the last four quarters, earnings have decreased while revenues have increased, maintaining investors’ happiness. Relative to its peers and sector, Amazon has been an average year-to-date performer. WAIT AND SEE what Amazon does this coming quarter.