The Phoenix, Arizona-based copper producer, Southern Copper (SCCO
Southern Copper shares posted a gain of 1.90% today to kick off the week. The stock is lagging behind the broad market YTD with a loss of nearly 25%.
Tuesday, December 31, 2013
BB&T Capital Upgrades Southern Copper Corp To “Buy” (SCCO)
Monday, December 30, 2013
5 Rocket Stocks to Buy This Week
BALTIMORE (Stockpickr) -- U.S. stocks keep putting distance between where they started trading for the year and where they sit today -- but that's not due to participation from retail investors.
>>5 Hated Earnings Stocks You Should Love
It's true. Bears may point to the recent pop in equity mutual fund flows as evidence that this rally is overbought, but that one-month data point is a little like shooting a squirt gun upstream. The long-term trend in fund flows remains very much against stocks. For the last seven years, retail investors have pulled $7.2 billion a month from their stock funds, on average.
In 2013, they've added around $500 million into U.S. stock funds each month. Irrational exuberance this isn't.
But as the macro trend continues to propel stock prices higher, it makes sense to remained positioned for more upside. To make the most of it, we're taking a closer look at five new Rocket Stock names worth buying this week.
>>5 Breakout Trades Under $10
For the uninitiated, "Rocket Stocks" are companies with short-term gain catalysts and longer-term growth potential. To find them, I run a weekly quantitative screen that seeks out stocks with a combination of analyst upgrades and positive earnings surprises to identify rising analyst expectations, a bullish signal for stocks in any market. After all, where analysts' expectations are increasing, institutional cash often follows. In the last 222 weeks, our weekly list of five plays has outperformed the S&P 500 by 89.23%.
Without further ado, here's a look at this week's Rocket Stocks.
Sirius XM Radio
Entertainment stock Sirius XM Radio (SIRI) has been benefiting in a big way from some big tailwinds in the automotive industry. The firm has added more than 2 million new subscribers to its customer list in the last year, pushing its total subscriber count to 25.6 million paying subscribers. As the SIRI benefits from economies of scale in 2013, investors will continue to benefit too.
>>3 Stocks Rising on Unusual Volume
Despite challenges from popular rivals such as Pandora (P) and now Apple (AAPL), Sirius XM's offering is relatively safe from competition. Why? In short, SIRI offers a very different set of services than iTunes Radio or Pandora. Because SIRI's content is actively curated and includes high-barrier content such as Howard Stern and NFL football, subscribers listen to the satellite radio network for very different reasons. The inclusion of satellite tuners in around two-thirds of all new vehicles this year provides a powerful source of new customers for SIRI -- the firm converts almost 45% of its trial users into paying subscribers.
Financially, SIRI has reached critical mass. The satellite radio business is extremely expensive, but with subscription fees driving the firm to profitability now, the firm should have little trouble maintaining its impressive margins. Best of all, costs are effectively nil for the firm to activate additional radios, greatly lowering customer acquisition costs (since SIRI can use trials aggressively as a sales tool).
This stock isn't cheap, but momentum is coming back into shares this quarter.
Yahoo!
In the last few years, Yahoo! (YHOO) has become a punch line as a tech company that's lost relevance with the rest of the world. But in reality, the folks mocking this $36 billion tech giant are the ones who've lost touch. Believe it or not, Yahoo! is still a cash cow. Despite serious competition from a handful of Wall Street darlings, Yahoo! is still one of the most popular brands on the Internet, with a collection of destination sites that draw absolutely massive amounts of traffic.
>>5 Stocks Poised for Breakouts
Top 10 Companies To Buy Right Now
Yahoo!'s advertising network throws off considerable cash. The firm earned close to $300 million in profits in the latest quarter, buoyed by strong ad sales and hefty pass-through income from its stakes in Yahoo! Japan and Alibaba Group. Still, there's no question that Yahoo! isn't what it once was -- and that's exactly why CEO Marissa Mayer & Co. are working so hard to turn the ship around. If the firm can invest in its next big thing without destroying shareholder value in the process, it'll be a slam dunk for shareholders today.
Don't focus too hard on YHOO's earnings multiple; it's the jam-packed balance sheet that should be getting investors excited right now. As I write, around $5.84 of every share of Yahoo is paid for in a combination of net cash and investments -- that's close to 20% of the firm's market capitalization, a fact that provides some semblance of a safety net for investors.
With rising analyst sentiment coming into YHOO this week, we're betting on shares.
Transocean
After spending much of the year in a downtrend, deep-water drilling firm Transocean (RIG) is finally breaking higher. RIG shareholders have had a rough time in the last few years. The firm was on the hook for huge liabilities for its role in the Macondo blowout in 2010, and it's only recently put the worst behind it. Now this driller is worth a second look.
>>5 Stocks Under $10 Set to Soar
Transocean operates a fleet of more than 160 rigs and vessels, giving it scale that others lack. With seven new vessels on the way, the firm is materially growing its capacity now, while interest rates remain low and energy companies look for cost-efficient ways to pull commodities out of the ground. The firm's decision to sell off its legacy jackup fleet in favor of building next-generation jackup equipment should give RIG some extra advantages over competitors with less modern fleets. By making big moves while the firm was dealing with Macondo-related turmoil, management was able to pull off changes in one clean move.
More recently, Transocean has been undergoing a proxy battle with Carl Icahn, which finally got resolved yesterday with RIG's decision to pay a $3 per share dividend and change up the board's composition. Ultimately, the move should speed along shareholder returns for 2014.
Wells Fargo
Big bank Wells Fargo (WFC) is having a solid year in 2013; shares of the financial giant have rallied 25% since the calendar flipped over to January. And that's in spite of the $869 million settlement that the firm agreed to pay out a month ago -- a payout that takes a material bite out of Wells' earnings for the quarter ahead.
>>Buy These 5 REITs to Cash In This Year
That doesn't change the fact that Wells Fargo is certainly the best-positioned of the big banks. Wells was one of the best-capitalized names heading in to the Great Recession five years ago, and it's continued that tradition all the way out, picking up Wachovia's huge deposit base along the way. The firm's huge basket of cheap deposits should continue to fuel its earnings in the years ahead, especially as rates take on some upward trajectory. After all, as rates get boosted, the spreads WFC earns on its loan book will too.
Right now, Wells Fargo boasts one of the heftiest dividend payouts among mega-cap financial firms, and that cost yield should continue to grow for investors who get in early. Wells actually trades for a discount to the earnings premium placed on other big banking names right now. That makes this Rocket Stock a good buy for investors seeking financial sector exposure.
Oracle
Oracle (ORCL) is one of the biggest software companies in the world. The $159 billion firm sells mission-critical software packages to clients that need database tools for everything from customer resource management to supply chain analysis. Because Oracle's software is integrated so tightly into its customers' operations, those customers have extremely high switching costs and competitors have big barriers to entry.
The transition from conventional software licenses to the cloud is proving lucrative for ORCL -- it provides recurring subscription income for the firm's income statement. Massive cash generation abilities have ballooned the cash balance on Oracle's balance sheet to more than $15 billion net of debt. That huge pile of dry powder gives ORCL a lot of options right now, from acquisitions to dividend boosts to debt extinguishment. Because Oracle's products are less flashy than more consumer-oriented tech sector names, ORCL is less liable to destroy shareholder value with whatever it does in my view.
Ex-cash, Oracle's currently trading for a price-to-earnings ratio of just above 10. While that's not exactly a deep value price tag, shares look cheap considering ORCL's growth potential and cash-generation capabilities over the next few years. With analyst sentiment on the upswing in Oracle again, we're betting on shares.
To see all of this week's Rocket Stocks in action, check out the Rocket Stocks portfolio at Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.
RELATED LINKS:
>>5 Dividend Boosters That Could Really Pay Off
>>2 Airline Stocks You Really Should Own in 2013
>>4 Stocks Under $10 Making Big Moves
Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.
Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to
TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.Follow Jonas on Twitter @JonasElmerraji
Sunday, December 29, 2013
5 Stocks Poised to Pop on Bullish Earnings
DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.
>>5 Rocket Stocks to Buy Now
This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.
That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.
Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if The Street doesn't like the numbers or guidance.
>>5 Dogs of the Dow to Stomp the Market
If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.
With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.
Illumina
My first earnings short-squeeze trade idea is Illumina (ILMN), a developer and manufacturer of life science tools and integrated systems, which is set to release numbers on Monday after the market close. Wall Street analysts, on average, expect Illumina to report revenue of $343.56 million on earnings of 40 cents per share.
The current short interest as a percentage of the float Illumina is very large at 18.9%. That means that out of the 123.32 million shares in the tradable float, 23.31 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of ILMN could soar sharply higher post-earnings as the bears rush to cover some of their short positions.
>>5 Stocks Poised for Breakouts
From a technical perspective, ILMN is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $72.77 to its recent high of $83.50 a share. During that uptrend, shares of ILMN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ILMN within range of triggering a big breakout trade post-earnings.
If you're bullish on ILMN, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $83.50 to its 52-week high at $85.81 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 952,865 shares. If that breakout hits, then ILMN will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $95 to $100 a share.
I would simply avoid ILMN or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day moving average of $80.09 a share with high volume. If we get that move, then ILMN will set up to re-test or possibly take out its next major support levels at $76 to $72.77 a share.
Netflix
Another potential earnings short-squeeze play is Netflix (NFLX), an Internet subscription service provider of streaming television shows and movies, which is set to release its numbers on Monday after the market close. Wall Street analysts, on average, expect Netflix to report revenue $1.10 billion on earnings of 49 cents per share.
>>5 Big Stocks to Trade for Big Gains
The current short interest as a percentage of the float for Netflix is pretty high at 12.5%. That means that out of the 52.18 million shares in the tradable float, 6.96 million shares are sold short by the bears. This is a high short interest on a stock with a relatively low float. Any bullish earnings news could easily spark a monster short-squeeze for shares of NFLX post-earnings.
From a technical perspective, NFLX is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending incredibly strong over the last four months and change, with shares soaring higher from its low of $205.75 to its intraday high of $349. During that uptrend, shares of NFLX have been mostly making higher lows and higher highs, which is bullish technical price action.
If you're in the bull camp on NFLX, then I would wait until after its report and look for long-biased trades if this manages to break out above its new 52-week high of $349 a share high volume. Look for volume on that move that hits near or above its three-month average action of 3.13 million shares. If that breakout triggers, then NFLX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $380 to $400 a share.
I would simply avoid NFLX or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below Monday's low of $340.10 a share with high volume. If we get that move, then NFLX will set up to re-test or possibly take out its next major support levels at $320 to $310 a share. Any high-volume move below those levels will then give NFLX a chance to tag its 50-day moving average of $298.44 a share.
Jakks Pacific
Another potential earnings short-squeeze candidate is toy and electronics maker Jakks Pacific (JAKK), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Jakks Pacific to report revenue of $297.88 million on earnings of $1.05 per share.
Just recently, B. Riley initiated shares of Jakks Pacific with a neutral rating and a price target of $4.50 per share.
>>5 Stocks Under $10 Set to Soar
The current short interest as a percentage of the float for Jakks Pacific is extremely high at 35.2%. That means that out of the 16.80 million shares in the tradable float, 6.06 million shares are sold short by the bears. This is a high short interest on a stock with a very low tradable float. Any bullish earnings news could easily spark a monster short-squeeze for shares of JAKK post-earnings.
From a technical perspective, JAKK is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last three months and change, with shares plunging lower from its high of $11.75 to its recent low of $4.45 a share. During that move, shares of JAKK have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of JAKK have started to reverse that trend during the last month, and the stock is now moving within range of triggering a near-term breakout trade post-earnings.
If you're bullish on JAKK, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $5 to $5.27 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 637,282 shares. If that breakout hits, then JAKK will set up to re-test or possibly take out its next major overhead resistance levels at $5.68 to $6 a share. Any high-volume move above those levels will then give JAKK a chance to tag $7 to $8 a share.
I would avoid JAKK or look for short-biased trades if after earnings it fails to trigger that move, and then drops back below some key near-term support levels at $4.68 to $4.51 a share and the below its 52-week low at $4.45 a share. If we get that move, then JAKK will set up to enter new 52-week-low territory, which is bearish technical price action. Some possible downside targets off that move are $4 to $3.50 a share.
ServiceNow
Another earnings short-squeeze prospect is cloud-based services provider ServiceNow (NOW), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect ServiceNow to report revenue of $105.33 million on a loss of 2 cents per share.
Just recently, UBS said it expects ServiceNow to growth at least 20% faster than its competitors in 2014, and the firm expects the stock to continue to outperform as its cloud offerings are adopted by many more companies. The firm has an outperform rating on the stock and it raised its price target to $62 from $50.
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The current short interest as a percentage of the float for ServiceNow stands at 5.3%. That means that out of the 119.61 million shares in the tradable float, 6.28 million shares are sold short by the bears. This isn't a huge short interest, but it's more than enough to spark a solid short-covering rally for shares of NOW post-earnings if the bulls get the earnings news they're looking for.
From a technical perspective, NOW is currently trending just above its 50-day moving average and well below its 200-day moving average, which is bullish. This stock has been uptrending strong for the last five months, with shares soaring higher from its low of $35.21 to its recent high of $55.46 a share. During that uptrend, shares of NOW have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of NOW within range of triggering a big breakout trade post-earnings.
If you're bullish on NOW, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its all-time high at $55.46 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.50 million shares. If that breakout hits, then NOW will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $65 to $70 a share.
I would simply avoid NOW or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $52 to its 50-day moving average of $49.02 a share with high volume. If we get that move, then NOW will set up to re-test or possibly take out its next major support levels at $46 to $42 a share.
TripAdvisor
My final earnings short-squeeze play is online travel research player TripAdvisor (TRIP), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect TripAdvisor to report revenue of $257.97 million on earnings of 45 cents per share.
The current short interest as a percentage of the float for TripAdvisor is very high at 15%. That means that out of the 111.67 million shares in the tradable float, 16.71 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of TRIP could rip sharply higher post-earning as the bears rush to cover some of their bets.
From a technical perspective, TRIP is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has uptrending modestly for the last month, with shares moving higher from its low of $68.11 to its recent high of $75.43 a share. During that move, shares of TRIP have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TRIP within range of triggering a near-term breakout trade post-earnings.
If you're in the bull camp on TRIP, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at its 50-day moving average of $74.02 a share to more resistance at $75.43 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 1.82 million shares. If that breakout hits, then TRIP will set up to re-test or possibly take out its next major overhead resistance levels at $79.89 a share to its 52-week high at $82.19 a share. Any high-volume move above those levels will then give TRIP a chance to tag $85 to $90 a share.
I would avoid TRIP or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $71.60 to $68.11 a share with high volume. If we get that move, then TRIP will set up to re-test or possibly take out its next major support levels at $62.50 to its 200-day moving average of $60.03 a share.
To see more potential earnings short squeeze plays, check out the Earnings Short Squeeze Plays portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
RELATED LINKS:
>>5 Stocks With Big Insider Buying
>>5 Stocks Triggering Breakouts on Big Volume
>>4 Stocks Under $10 Making Big Moves
Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including
CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.Friday, December 27, 2013
Top 10 Gold Stocks To Watch Right Now
David Goldman/AP WASHINGTON -- Mailing a letter is about to get a little more expensive. Regulators on Tuesday approved a temporary price hike of 3 cents for a first-class stamp, bringing the charge to 49 cents a letter in an effort to help the Postal Service recover from severe mail decreases brought on by the 2008 economic downturn. Many consumers won't feel the price increase immediately. Forever stamps, good for first-class postage whatever the future rate, can be purchased at the lower price until the new rate is effective Jan. 26. The higher rate will last no more than two years, allowing the Postal Service to recoup $2.8 billion in losses. By a 2-1 vote, the independent Postal Regulatory Commission rejected a request to make the price hike permanent, though inflation over the next 24 months may make it so. The surcharge "will last just long enough to recover the loss," Commission Chairman Ruth Y. Goldway said. Bulk mail, periodicals and package service rates will rise 6 percent, a decision that drew immediate consternation from the mail industry. Its groups have opposed any price increase beyond the current 1.7 percent rate of inflation, saying charities using mass mailings and bookstores competing with online retailer Amazon would be among those who suffer. Greeting card companies also have criticized the plans. "This is a counterproductive decision," said Mary G. Berner, president of the Association of Magazine Media. "It will drive more customers away from using the Postal Service and will have ripple effects through our economy -- hurting consumers, forcing layoffs and impacting businesses." Berner said her organization will consider appealing the decision before the U.S. Court of Appeals. For consumers who have cut back on their use of mail for correspondence, the rate increase may have little impact on their pocketbooks. "I don't know a whole lot of people who truly, with the exception of packages, really use snail mail anymore," said Kristin Johnson, a Green Bay, Wis., resident who was shopping in downtown Anchorage, Alaska, while visiting relatives and friends. "It's just so rare that I actually mail anything at this point." The Postal Service is an independent agency that does not depend on tax money for its operations but is subject to congressional control. Under federal law, it can't raise prices more than the rate of inflation without approval from the commission. The service says it lost $5 billion in the last fiscal year and has been trying to get Congress to pass legislation to help with its financial woes, including an end to Saturday mail delivery and reduced payments on retiree health benefits. The figures through Sept. 30 were actually an improvement for the agency from a $15.9 billion loss in 2012. The post office has struggled for years with declining mail volume as a result of growing Internet use and a 2006 congressional requirement that it make annual $5.6 billion payments to cover expected health care costs for future retirees. It has defaulted on three of those payments. The regulators Tuesday stopped short of making the price increases permanent, saying the Postal Service had conflated losses it suffered as a result of Internet competition with business lost because of the Great Recession. They ordered the agency to develop a plan to phase out the higher rates once the lost revenue is recouped. It's unclear where that would take rates for first-class postage in 2016. The regular, inflation-adjusted price would have been 47 cents next year. If inflation rates average 2 percent over the next two years, regulators could deem 49 cents an acceptable price going forward. The Postal Service has only twice lowered the price of a stamp: in the mid-19th century from 3 cents to 2 cents, and again after the end of World War I. In neither case was the higher price the result of a temporary authorization. The new price of a postcard stamp, raised by a penny to 34 cents in November, also is effective next month. The last price increase for stamps was in January, when the cost of sending a letter rose by a penny to 46 cents. A postcard also increased by one cent to 33 cents. -.
Top 10 Gold Stocks To Watch Right Now: Goldcorp Incorporated(GG)
Goldcorp Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. It produces and sells gold, silver, copper, lead, and zinc. The company was founded in 1954 and is headquartered in Vancouver, Canada.
Advisors' Opinion:- [By Dan Caplinger]
Direxion Daily Gold Miners Bull 3x fell 10%, as the Fed minutes prompted a $30-per-ounce drop in the price of gold. For mining stocks, gold's poor performance earlier this year was already enough to create problems, with even major producers Barrick Gold (NYSE: ABX ) and Goldcorp (NYSE: GG ) suspending operations or exploration efforts at key properties due to poor market conditions. Precious-metals investors have worried that higher interest rates resulting from the Fed's easing back from its bond purchases could draw investors away from gold, and the leveraged Direxion ETF's performance only magnifies the impact of gold's drop had today.
- [By WWW.GURUFOCUS.COM]
Goldcorp Inc. (GG) engages in the acquisition, development, exploration, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. Yield: 2.5%
Top 10 Gold Stocks To Watch Right Now: 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.
Best Blue Chip Stocks To Buy 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 10 Gold Stocks To Watch Right Now: 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 Patricio Kehoe] stion arises: Why is First Eagle bullish regarding such a company? The answer might lie in the huge discount at which the third-largest gold producer by output is trading, along with a certain degree of long-term optimism.
Huge Holdings Point to Long-Term Commitment
Since First Eagle recently increased its stake in Anglogold by more than 20%, bringing his total holding to over 32.5 million shares, I believe we are looking at a long-term investment. I am keen on pointing this out, since the stock is currently performing very poorly, and has already lost around 275% of its value year to date. Above average production costs and plummeting gold prices have put a huge deal of pressure on the gold miner, leading to very poor results. In addition, since many of its operations are in geopolitically risky countries such as Mali and the Democratic Republic of Congo, shareholders have been shedding this stock in large volumes.
Although Anglogold had a very rough year, and will continue to face elevated cash costs and reduced margins going into 2014, there are some positive signals looking forward. One of the most promising features, are the firm�� operations in South America and Australia, which are enjoying solid organic growth. Although investors will have to wait some years for assets in these regions to reach full production, large profits should be achieved in the long-term. In other words, First Eagle surely has its eyes set on the company�� new projects, and their future growth potential.
Projected Growth and Low Price
Another attractive feature investors must keep in mind is a stock�� growth potential. When looking at Anglogold, this becomes especially relevant, as a comparison to Barrick Gold Corp (ABX) will demonstrate. Anglogold currently offers 13.6% returns on invested capital, compared to Barrick�� -2.8%, and has an EBITDA growth rate of 465.7%, the highest in the industry. Thus, whereas the Canadian miner has a negative EPS
- [By Dan Caplinger]
We've seen the flip side of that trend play out in recent years, as rock-bottom interest rates in the U.S. have encouraged investment in higher-yielding income investments in places like Australia, Brazil, and South Africa. Interest from foreign investors got to be so extensive in Brazil that the federal government imposed a tax on foreign investors in bonds in order to curb demand and slow the pace of the Brazilian real's appreciation. Exchange-rate issues also likely played a role in the health of the commodities markets, as mining giants BHP Billiton (NYSE: BHP ) and Rio Tinto (NYSE: RIO ) in Australia benefited from increased demand largely for base metals. Similarly, South African gold miners AngloGold Ashanti (NYSE: AU ) and Gold Fields (NYSE: GFI ) outperformed rivals from elsewhere in the world, benefiting from strength in the South African rand currency.
- [By Jim Woods]
A day earlier, Kinross Gold (KGC) suspended its semiannual dividend, and it also announced a delay in its decision on future expansion of the mill at the Tasiast mine in Africa. Finally, about a week later, AngloGold Ashanti (AU) — the third-largest producer of the yellow metal — suspended its dividend on poor earnings due to declining gold prices.
Top 10 Gold Stocks To Watch Right Now: 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.
Advisors' Opinion:- [By Doug Ehrman]
In terms of individual companies, there are several good choices, but these can behave very differently. Pan American Silver (NASDAQ: PAAS ) , for example, missed revenue expectations and beat earnings expectations in its last earnings release. But despite the beat, EPS shrank considerably from a year earlier on a GAAP basis. The stock has been fairly flat ever since. Conversely, First Majestic (NYSE: AG ) reported strong revenue growth and a small bump in profits, sending the stock higher since the announcement. First Majestic reported increased cash costs and tightening margins, largely driven by lower silver prices. Each of these companies faces pressure from increasing production costs and environmental concerns.
- [By Doug Ehrman]
Despite the weakness seen in precious metals a few weeks ago, silver has been relatively stable ever since mid-April, with the iShares Silver Trust (NYSEMKT: SLV ) trading in a dollar-wide range ever since. With the presidents of the Chicago and Philadelphia Federal Reserve banks��releasing conflicting statements, turmoil may be just around the corner. Miners like Pan American (NASDAQ: PAAS ) and First Majestic (NYSE: AG ) are still facing operating challenges, while silver streaming darling Silver Wheaton (NYSE: SLW ) struggles as well.
- [By Doug Ehrman]
It is no secret that precious metals companies have been taking a pounding for some time now. The SPDR Gold Trust (NYSEMKT: GLD ) and iShares Silver Trust (NYSEMKT: SLV ) , the gold and silver ETFs, have been hard hit and operating companies like First Majestic (NYSE: AG ) and Barrick Gold (NYSE: ABX ) have been hit even harder. Through all of these struggles, and in some cases because of them, one precious metals company continues to look attractive for the long term: Silver Wheaton (NYSE: SLW ) .
Top 10 Gold Stocks To Watch Right Now: 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.
Advisors' Opinion:- [By Ben Levisohn]
Bridges favorite stocks include Goldcorp, Newmont, Eldorado Gold (EGO) and New Gold (NGD).
Note, however, that these recommendations are all qualified in one way or another. Investors should keep that in mind before going all in on the gold miners.
Top 10 Gold Stocks To Watch Right Now: Northgate Minerals Corporation(NXG)
Northgate Minerals Corporation, together with its subsidiaries, engages in exploring, developing, processing, and mining gold and copper deposits in Canada and Australia. Its principal producing assets include 100% interests in the Fosterville and Stawell Gold mines in Victoria, Australia; and the Kemess South mine located in north-central British Columbia, Canada. The company was formerly known as Northgate Exploration Limited and changed its name to Northgate Minerals Corporation in May 2004. Northgate Minerals Corporation was founded in 1919 and is headquartered in Toronto, Canada.
Top 10 Gold Stocks To Watch Right Now: Iamgold Corporation(IAG)
IAMGOLD Corporation, together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. The company holds interests in eight operating gold mines, a niobium producer, a diamond royalty, and exploration and development projects located in Africa and the Americas. Its advanced exploration and development projects include the Westwood project in Canada; and the Quimsacocha project, which consists of 3 mining concessions covering an aggregate area of approximately 8,030 hectares in Ecuador. The company was formerly known as IAMGOLD International African Mining Gold Corporation and changed its name to IAMGOLD Corporation in June 1997. IAMGOLD Corporation was founded in 1990 and is based in Toronto, Canada.
Advisors' Opinion:- [By Patricio Kehoe]
In addition to overexpansion at the wrong time, Golden Star�� position has weakened due to its comparably less efficient operations. Unlike industry peers, such as IamGold Corp. (IAG) or Gold Fields Ltd. (GFI), the majority of the Toronto-based miner�� assets contain refractory ore, which is far more expensive to extract than non refractory ore. And, in an attempt to switch production to the lower cost gold ore, and thus increase margins, Golden Star has depleted its mines��non refractory ore. With low reserves and mounting cash costs, the firm inevitably turned to new acquisitions.
- [By Namitha Jagadeesh]
International Consolidated Airlines Group SA (IAG) and Air France-KLM (AF) Group rose with as a gauge of travel stocks as oil prices fell after Iran�� accord. PSA Peugeot Citroen gained 3.7 percent after people familiar with the matter said its chief executive officer plans to step down next year. Fresenius Medical Care AG surged the most in five years after U.S. regulators scrapped a plan to cut Medicare payments next year.
- [By Dan Caplinger]
IAMGOLD (NYSE: IAG ) will release its quarterly report on Monday, and as with most gold mining companies, it's expected to post disappointing results compared to last year's figures because of the big drop in gold prices during the second quarter. Yet investors still expect IAMGOLD earnings to show the company's profitability, giving it a competitive advantage over weaker producers that are struggling to stay out of the red.
Top 10 Gold Stocks To Watch Right Now: 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.
Advisors' Opinion:- [By Sally Jones]
The once-troubled Agnico Eagle Mines Ltd. (AEM) is hitting a new record for gold production in the third quarter at 315,828 ounces, according to the Financial Post, and the company�� executives are buying. Here�� a third quarter company update and a look at billionaire stakeholders of AEM, a stock that spiked 23.66% over the past five days.
- [By vaninaegea]
In august, the Association of Equipment Manufacturers (AEM) published the mid-year review for the agricultural sector. Their findings point to a slowdown for the industry, highlighting a 9.5% decline on exports through the first half of 2013. Also, late soybean planting in the USA is expected to compound the industry�� slowdown. So, what are the prospects for AGCO (AGCO), CNH Global (CNH), and Deere & Co. (DE) under such conditions?
- [By Holly LaFon]
He increased his holdings in gold companies in the fourth quarter accordingly. Gold stocks he found attractive in the fourth quarter are: Novagold Resources (NG), Randgold Resources (GOLD), Iamgold Corp. (IAG), Barrick Gold Corp. (ABX), Agnico Eagle (AEM) and International Tower Hill (THM).
- [By Ben Levisohn]
As a result, Chidley and team upgraded Agnico Eagle Mines (AEM) and�Yamana Gold (AUY) to Neutral from Underweight, and raised Barrick Gold (ABX), Goldcorp (GG) and Iamgold (IAG) to Overweight from Neutral.�Gold Fields (GFI) was downgraded “due to increased risk and also reduced expectations for the South Deep operation,” Chidley says.
Top 10 Gold Stocks To Watch Right Now: 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.
Advisors' Opinion:- [By Patricio Kehoe] ating price of the commodity, along with the geopolitical risks involved in mining in African nations such as Ghana, are just two of the obstacles the firm is facing. In addition, as one of the smallest gold mining firms in the industry, with a market cap of just $122 million, Golden Star has had a very difficult time financing its latest expansion projects. With share prices tumbling towards all-time lows, gurus such as Steven Cohen, Chuck Royce and Arnold Schneider have already sold out their positions in the troubled firm.
Why Have Gurus Lost Faith in Golden Star?
Despite aggressive expansion over the past decade, the Toronto-based gold mining firm has not been able to take advantage of its increased production output. Gold prices might have exploded over a ten-year period, yet the recent six-month decline has put a huge strain on Golden Star. The expedited maturation of its mines is particularly troubling, since the accelerated extraction rates, which allowed for short-term profits, are now falling considerably. The impact of the company�� excessive overproduction on profits and growth is clear: decreasing gold reserves mean less production, and thus reduced revenue for the gold miner. When the decline in metal prices are taken into account, the outlook is even more grim.
In addition to overexpansion at the wrong time, Golden Star�� position has weakened due to its comparably less efficient operations. Unlike industry peers, such as IamGold Corp. (IAG) or Gold Fields Ltd. (GFI), the majority of the Toronto-based miner�� assets contain refractory ore, which is far more expensive to extract than non refractory ore. And, in an attempt to switch production to the lower cost gold ore, and thus increase margins, Golden Star has depleted its mines��non refractory ore. With low reserves and mounting cash costs, the firm inevitably turned to new acquisitions.
Overpriced Acquisitions and Geopolitical Risk
The purchase
- [By Rich Duprey]
Clash of the titans
When bears are raging on the gold bullion market, it's not surprising to see gold stocks getting mauled as well. Golden Star Resources (NYSEMKT: GSS ) was the biggest loser in the sector, losing a quarter of its market cap on no company-specific news, though a report last Friday indicated that a large number of hedge funds had recently dumped their positions in the mid-tier miner. Yet it wasn't all that much better among the majors, either, as Barrick Gold (NYSE: ABX ) fell almost 13% and Kinross Gold (NYSE: KGC ) was down 14%. - [By Sean Williams]
Golden Star Resources (NYSEMKT: GSS )
It's simple physics: The bigger they are, the harder they fall. When gold prices nosedived earlier this week, gold miners with historically higher operating costs took the brunt of the hit. For the most part, that meant that development-stage miners, and those operating in Africa, where labor and political costs make cost-effective mining a challenge, took it on the chin. Possibly no stock was hammered more than Golden Star Resources, a gold miner in Ghana, which lost about one-quarter of its value on Monday alone.
Thursday, December 26, 2013
China Telecom Slips New iPhone Details (AAPL, CHA)
On Thursday afternoon, China Telecom Corp Ltd (CHA
The company posted an advertisement for pre-ordering the phones. This announcement, which was removed soon after it was published, was slipped to the public before Apple’s launching event on September 11 in Beijing.
The post also suggested that the Chinese market will be one of the first markets to get the new phones.
Apple shares were up $3.45, or 0.70%, during pre-market trading Friday. The stock is down 7% YTD.
Wednesday, December 25, 2013
Security California Bancorp Reports Net Income of $1.542 Million for the 1st 6 Mths of 2013 (OTCMKTS:SCAF, OTCMKTS:CLNOD)
Security California Bancorp (SCAF)
Last Friday, SCAF previously surged (+2.56%) up +0.25 at $10.00 with 1,200 shares in play at the close (ref. google finance August 2, 2013 – Close).
Security California Bancorp previously reported earnings for the first six months of 2013 of $1.542 million, up $1.134 million from the $408 thousand reported for the same period in 2012. Highlights compared to same period ended June 30, 2012 include:
Total Assets were at $498 million, up $38 million or 8%
Total Loans grew $16 million or 5% to $323 million
Total Deposits increased $18 million or 4% to $413 million
Security California Bancorp (SCAF) 5 day chart:
10 Best Penny Stocks To Watch For 2014
EQCO2, Inc. (CLNOD)
EQCO2, Inc. (OTCMKTS:CLNOD) (www.eqco2.com) through its Discovery Carbon subsidiary, develops emissions offset strategies for companies, municipalities, and countries. Last Friday, CLNOD previously surged (+8.18%) up +0.009 at $.119 with 15,100 shares in play at the close (ref. google finance August 2, 2013 – Close).
CLNOD daily range was at ($.119 – $.11) thus far and currently at $.119 would be considered a (+59399.99%) gain above the 52 wk low of $0.0002 and rightly so. The stock is up +0.12 ( +4600%) since the concerning dates of February 4, 2013 – August 2, 2013. +4600% is the 6 month high.
EQCO2, Inc. (CLNOD) 5 day chart:
Tuesday, December 24, 2013
What's Getting Hacked Now? Your Phone, Your TV and Your Toilet
Hot Medical Stocks To Watch For 2014
Monday, December 23, 2013
Today's 3 Best Stocks
Surprisingly enough, Ben Bernanke's much-awaited testimony before Congress, and the release of a survey from the Federal Reserve, didn't spook investors. Then again, it didn't exactly light a fire under the optimists, either.
Heading into today, all eyes were on Bernanke, who had scared the broad-based S&P 500 (SNPINDEX: ^GSPC ) into a tailspin last month on word that the Fed may choose to scale back its bond-buying program before the year was up. Today's testimony, compounded with encouraging data that showed modest to moderate growth in 11 of the 12 surveyed cities (Dallas, yet again, exhibited strong growth), was enough to push the S&P 500 higher. However, gains were also curbed by Bernanke's admission that a pare back of its bond-buying program was in the offing before the year is out if U.S. economic data remained encouraging.
By day's end, the S&P 500 had advanced by 4.65 points (0.28%) to close at 1,680.91. Although today's move higher was pretty tame, three stocks within the index broke decisively higher.
Topping the list of gainers was search engine Yahoo! (NASDAQ: YHOO ) , which added 10.3% after reporting its second-quarter results. Despite the big gain and the fact that Yahoo! slid past EPS expectations, today's gains have little do with its primary search and ad business, and everything to do with its ownership stake in Alibaba. For the quarter, Yahoo!'s revenue slid slightly to $1.07 billion, and the company actually trimmed its full-year sales forecast because of ongoing ad weakness. However, Yahoo!'s 24% stake in Alibaba, combined with analysts' boosted value estimates for Alibaba, translated into today's big gains. As for me, I'm worried that Yahoo!'s core business has very little going for it, and that gives me enough reason to stick to the sidelines.
5 Best Gold Stocks To Buy For 2014
Shares of chemicals maker DuPont (NYSE: DD ) delivered strong gains for shareholders, rising 5.3% after Trian Fund Management's Nelson Peltz disclosed that he'd amassed a "big stake" in DuPont, according to CNBC. If the name sounds familiar, that'd be because Peltz also owns significant stakes in PepsiCo. and Mondelez International, and has been pushing PepsiCo. to make a bid for Mondelez to expand its international snack presence. The thinking here is that Peltz, being a proactive fund manager who seeks to unlock value, could have a trick or two up his sleeve to improve DuPont's lagging share price. We'll have to wait to see if that comes to fruition.
Finally, implantable cardiovascular device maker St. Jude Medical (NYSE: STJ ) jumped 5.2% after reporting better-than-expected second-quarter results. Although second-quarter revenue fell by less than 1%, to $1.4 billion, from the year-ago period, it was enough to surpass the $1.36 billion analysts expected. Furthermore, St. Jude forecast EPS for the full-year of $3.70-$3.73, as compared to the Street's expectation of just $3.68. While I do see the benefits of owning a company like St. Jude as baby boomers age, I remain a bit concerned about the affect the medical device excise tax and Obamacare as a whole may have on a company like St. Jude in the near term.
Your search for the markets' top performers doesn't have to end here! The Motley Fool's chief investment officer recently selected his No. 1 stock for this year. Find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.
Sunday, December 22, 2013
GameStop's and Microsoft's Shifting Fortunes
GameStop (NYSE: GME ) and Microsoft (NASDAQ: MSFT ) ended the previous generation of console gaming on completely different trajectories. The game retailer limped to the finish line, as GameStop had to endure a brutal stretch of quarterly sales declines while new gaming devices exploded in popularity.
Mr. Softy's Xbox 360, meanwhile, outsold rivals over that time period and established itself as the console to beat heading into the next generation. But could these two companies see dramatically different results in this generation? In the video below, Fool contributor Demitrios Kalogeropoulos and analyst Blake Bos discuss GameStop's and Microsoft's quickly shifting gaming prospects.
5 Best Casino Stocks To Watch Right Now
While Activision and Microsoft have been taking the headlines when it comes to console gaming, Fools following the gaming sector would do well to also keep tabs on Electronic Arts. The Motley Fool's special report breaks down the risks and opportunities facing the company to help you decide if EA is right for your portfolio. Click here to get your copy now.
The relevant video segment can be found between 1:35 and 4:20.
Saturday, December 21, 2013
Twitter mania: A market top or rising confidence?
It's been a super-bullish, some would say too-bullish, year on Wall Street.
The Standard & Poor's 500 index is up more than 24% and near a record. The tech-heavy Nasdaq, home to new tech darlings like Facebook and LinkedIn, is up closer to 30%.
Four of the 10-biggest first-day IPO gains since 2001 — all 100%-plus pops — have occurred in 2013, Renaissance Capital says. And that doesn't even include Twitter's Day One gain of 73%.
And investor optimism is climbing right along with the market. In late October, the percentage of Main Street investors that said they were "bearish," or think stocks will go down, hit its lowest level since January 2012, the American Association of Individual Investors says.
"It is a worrisome sign," says David Kotok, chief investment officer at Cumberland Advisors. "Frothy markets share some common history."
Still, overly exuberant stock markets are hard to pinpoint. And even if signs of froth keep popping up, there's nothing to say stocks can't keep climbing. Former Federal Reserve chairman Alan Greenspan, for example, made his famous "irrational exuberance" speech in December 1996. But his warning did little to dent risk-taking on Wall Street, where stock prices zoomed higher for four more years.
There's no question there are "signs of increasing enthusiasm" in a market that has been driven by the Fed's easy-money policies, says Jurrien Timmer, a portfolio manager at Fidelity Investments. However, "whether the stock market is frothy can be debated."
Right now, he says, the economy and corporate earnings are growing at a modest clip of roughly 3% and 5%, respectively. But stock gains in 2013 are running at a much faster pace. Still, it's hard to say the market is peaking as market reversals caused by sentiment extremes are more predictable at market bottoms when pessimism is high, says Timme! r.
Still, there's no denying investors are eyeing the market with a glass-half-full mentality.
"It is symptomatic of a market which is focused on a bright future," says Woody Dorsey, president of Market Semiotics. "Twitter is an accessory to market froth."
Not everyone is buying into the mania. Ariel Investments, a mutual fund firm that buys undervalued stocks, did not buy Twitter shares.
Tim Fidler, co-portfolio manager of Ariel Appreciation Fund, explains why a hot IPO market suggests stocks might be priced for perfection.
Top 5 Oil Companies For 2014
"Companies are taken public when everything is going well, (stock prices are) sometimes peaking, and expectations are high," Fidler says. "For us to get interested, we need a company's stock price to reflect some irrational dislocation from fair value on the downside; which is rare in IPO's, especially front page news events like Twitter."
5 ‘Problem’ Stocks to Avoid in 2014
Popular Posts: 5 Pharma Stocks to Buy for Big DividendsSilver Outlook 2014 – Expect More TarnishJCP – 3 Takeaways from the JCPenney Stock Trainwreck of 2013 Recent Posts: 5 ‘Problem’ Stocks to Avoid in 2014 Gun Sales Spike Puts Pressure on Smith & Wesson, Ruger 5 Pharma Stocks to Buy for Big Dividends View All Posts The Federal Reserve has already noted it expects 2014 to be a decent year for the economy, projecting the United States’ GDP to expand somewhere right around 3%. And, given the second upward revision to Q3′s growth rate — from 3.6% to 4.1% — one can’t help but wonder if the current outlook for the coming year is still too conservative.
That doesn’t, however, necessarily mean that every stock out there is going to benefit from that tailwind. A handful of stocks are apt to struggle (if they’re not already struggling) next year, and as such they offer little value to investors right now.
We’ll take a look at five stocks to avoid because they could have a rough go of things in 2014 … but first, it should be pointed out that not all of these companies are necessarily doomed organizations. In fact, none of them are on their death beds.
All of them might have some growing pains to go through, however, and that often means turbulence for their stocks.
Stocks to Avoid #1: Cisco (CSCO)
Well, not only CSCO still alive and kicking, but it has posted revenue growth in nine of the past 10 years. The coming year, however, might finally be the one in which Cisco’s size and lack of a distinguishing flagship product catches up with it.
Oh, the company still makes routers, servers, communication systems, cloud solutions and more … all marketable stuff. CSCO stock offers plenty of value too, with a trailing P/E of 11.5 and a forward-looking one of 10.
But there’s a reason CSCO stock is down 20% over the past four months (allowing shares to become this cheap), and that reason is simply that the market doesn’t have much faith that Cisco will be able to remain as competitive in 2014, as it has little on its product menu to get and keep the market’s attention.
Stocks to Avoid #2: Twitter (TWTR)
Even if Twitter does manage to grow revenue as it plans to do in 2014, it might be years — perhaps decades — before it can grow the top line to a point that justifies the current price of TWTR stock.
SunTrust’s Robert Peck said it best:
“While we think the long term potential for Twitter’s valuation is much higher, we think in the near term it has become stretched. On consensus 2014 revenue and EBITDA estimates, it trades at 36x and 295x (34x and 235x based off of our estimates). On 2015 consensus, the company still trades at significant premiums, at 23x and 125x (over 20x and 113x our estimate). In comparison, the average of other industry fast growers is 8x 2015 Revenues and 24x 2015 EBITDA. EPS and FCF valuation multiples are non-meaningful given their nascent positive turn.”
There’s a good chance all of Twitter’s shareholders, as well as non-shareholders, could crunch the numbers sometime in 2014 and decide holding TWTR stock doesn’t make sense.
And, even if Twitter does continue to grow at its rapid pace, with the market’s expectations as high as they are, there’s no margin for error or shortcomings.
Stocks to Avoid #3: KB Home (KBH)
That’s taking a direct toll on KB Home (KBH), which posted surprisingly disappointing Q3 results. Its per share profit of 31 cents was well shy of the expected 45 cents, and revenue was more than 6% shy of forecasts.
To be fair, the year-over-year comparisons of the top and bottom line were positive last quarter. A stock’s value is largely dictated by expectations, however, and now the market realizes it might have been expecting too much from KB Home. That could prove to be a drag on KBH stock for several months.
Stocks to Avoid #4: Sirius XM (SIRI)
However, times — and technology — are changing, and 2014 might be the year that satellite radio finally has to fend of more competition than it’s adequately equipped to do.
That competition? A combination of Pandora (P), Spotify, iTunes and, more broadly, mobile Internet. Apple (AAPL) and iTunes has been around for a while, as has Pandora, and neither has been able to unseat Sirius XM as the king of portable audio. As of this year, however, most mobile phones in the United States are web-enabled smartphones, which can largely accomplish the same thing Sirius XM receivers accomplish (yet are far more portable and flexible than satellite radio receivers). Mobile broadband is becoming prolific too, and it’s even more portable than satellite radio.
Perhaps most alarming of all, smartphones are taking aim at Sirius XM where it enjoys its strongest hold — in your car. Though it has been around for a while, the technology used to connect an automobile’s audio system to a smartphone — through programs such as Microsoft (MSFT) Sync in Ford (F) vehicles — is gaining popularity. That means Sirius XM will be forced to compete more with the quality of its programming rather than the convenience of its technology.
It’s not clear whether its programming alone will keep subscribers interested enough in Sirius now that a viable alternative exists. SIRI has proven it can draw a crowd even in the face of competition, and considering about 60% of all new cars are now manufactured with a Sirius XM receiver built-in to the dashboard, the company will find it has a steady flow of new prospects trying out the service.
Still, the issue for investors is that the stock has presumed faster growth than Sirius is likely to be able to generate now that mobile Internet is becoming common.
This proverbial writing on the wall might be why SIRI stock has crossed under its all-important 200-day moving average line this month. So it could get much worse before it gets better.
Stocks to Avoid #5: Vanguard Total Bond Market ETF (BND)
Truth be told, most bond funds are poised to struggle in the coming year. But since the Vanguard Total Bond Market ETF (BND) is the biggest bond ETF out there, it’s the best choice to use as our proxy.
The reason bonds and their funds are headed for a headwind is simple … the Federal Reserve has finally begun to “taper” by easing back on the size of their monthly purchases of Treasury bonds. The ripple effect will be diminished demand for all sorts of fixed-income instruments as institutional and retail investors follow that lead and extrapolate the idea to non-government bonds and paper. Less demand equals lower prices.
Thing is, now that the taper ball is rolling, it’s not apt to stop. Deeper cuts to the Fed’s bond-buying efforts are on the horizon, and that’s bad news for BND.
Read More: 5 Small-Cap Mutual Funds for GrowthAs of this writing, James Brumley did not hold a position in any of the aforementioned securities.
Wednesday, December 18, 2013
Is Sprint a Buy At Current Prices?
With shares of Sprint (NYSE:S) trading around $8, is S 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 MovementSprint offers wireless and landline communications products and services to individuals and businesses in the United States. Through its two segments, Wireless and Wireline, it offers voice and data transmission services to subscribers in all 50 states, Puerto Rico, and the United States Virgin Islands under the Sprint corporate brand, which includes its retail brands of Sprint, Nextel, Boost Mobile, Virgin Mobile, and Assurance Wireless. An increasing share of the population is opting for these communications products and services, fueling profits for Sprint.
Sprint and Dish (NASDAQ:DISH) are teaming up on a project that could bring broadband Internet to people living in remote areas with limited access, the two said in an announcement on Tuesday. "With millions underserved by inadequate broadband, the potential to bring a high-speed fixed wireless solution is very compelling to both Dish and Sprint," Tom Cullen, Dish executive vice president of corporate development, said in a press release. "We both bring distinct skills, not the least of which for Dish is a workforce of professional technicians who visit thousands of homes every day performing professional installations for both video and broadband."
T = Technicals on the Stock Chart Are StrongSprint stock has seen a strong bid in the last couple of years. The stock is now trading at highs for the year and looks poised to continue. 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, Sprint is trading above its rising key averages, which signal neutral to bullish price action in the near-term.
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(Source: Thinkorswim)
Taking a look at the implied volatility (red) and implied volatility skew levels of Sprint options may help determine if investors are bullish, neutral, or bearish.
| Implied Volatility (IV) | 30-Day IV Percentile | 90-Day IV Percentile | |
| Sprint options | 57.21% | 96% | 93% |
What does this mean? This means that investors or traders are buying a very significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.
| Put IV Skew | Call IV Skew | |
| January Options | Flat | Average |
| February Options | Flat | Average |
As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a very significant amount of call and put option contracts and are leaning neutral to bullish over the next two months.
On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.
E = Earnings Are Mixed Quarter-Over-QuarterRising 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 Sprint’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Sprint look like and more importantly, how did the markets like these numbers?
| 2013 Q3 | 2013 Q2 | 2013 Q1 | 2012 Q4 | |
| Earnings Growth (Y-O-Y) | -30.77% | -15.21% | 27.59% | -1.22% |
| Revenue Growth (Y-O-Y) | -11.57% | 0.31% | 0.68% | 3.24% |
| Earnings Reaction | 3.74% | 7.31% | -0.14% | -0.51% |
Sprint has seen decreasing earnings and increasing revenue figures over the last four quarters. From these numbers, the markets have been excited about Sprint’s recent earnings announcements.
P = Excellent Relative Performance Versus Peers and SectorHow has Sprint stock done relative to its peers, AT&T (NYSE:T), Verizon (NYSE:VZ), T-Mobile (NASDAQ:TMUS), and sector?
| Sprint | AT&T | Verizon | T-Mobile | Sector | |
| Year-to-Date Return | 59.64% | -4.93% | -6.31% | 15.00% | 16.85% |
Sprint has been a relative performance leader, year-to-date.
ConclusionSprint provides communications services and technology to a wide variety of consumers and companies in the United States and its territories. The company and Dish are teaming up on a project that could bring broadband Internet to people living in remote areas with limited access. The stock has seen a strong bid in the last couple of years and is currently trading near highs for the year. Over the last four quarters, earnings have been decreasing while revenue figures have been increasing which has left investors excited about recent earnings announcements. Relative to its peers and sector, Sprint has been a year-to-date performance leader. Look for Sprint to OUTPERFORM.
Tuesday, December 17, 2013
Top 10 China Companies To Own For 2014
In China, economic prosperity has created a new class of affluent consumers with a nearly insatiable appetite for goods and services.
For example, consider the $7.1 billion bid that China's largest meat processor made last week for America's largest hog farmer and pork producer. Shuanghui International Holding is looking to buy Smithfield Foods (NYSE: SFD) to increase meat imports to China, where domestic production can't keep pace with fast-rising demand.
The consumer is at the centerpiece of the emerging market growth story, which is creating expansion opportunities for consumer goods companies such as Smithfield and supporting earnings and dividend gains for income investors. In the past five years, the consumer-oriented sectors of the MSCI Emerging Market index have significantly outperformed the broader index, which in turn has greatly outperformed the S&P 500. From a pre-recession peak in 2008, consumer staples is up 82%, health care is up 66% and consumer discretionary is up 32%.
Top 10 China Companies To Own For 2014: China Automotive Systems Inc.(CAAS)
China Automotive Systems, Inc., through its interests in Sino-foreign joint ventures, engages in the manufacture and sale of power steering systems and other component parts for the automotive industry in the People?s Republic of China. It offers a range of steering system parts for passenger automobiles and commercial vehicles. The company provides 4 separate series, 307 models of power steering, including rack and pinion power steering, integral power steering, electronic power steering and manual steering, steering columns, steering oil pumps, and steering hoses. China Automotive Systems, Inc. was founded in 2003 and is headquartered in Jing Zhou City, the People?s Republic of China.
Advisors' Opinion:- [By Richard Schmidt]
China Automotive Systems (CAAS), which makes auto systems and components, reported record-high net sales for the third quarter. The report excited investors, who bid the stock up about 30% for the month.
Top 10 China Companies To Own For 2014: New Oriental Education & Technology Group Inc.(EDU)
New Oriental Education & Technology Group Inc. provides private educational services primarily in the People?s Republic of China. It offers a range of educational programs, services, and products consisting primarily of English and other foreign language training; test preparation courses for admissions and assessment tests; primary and secondary school education; development and distribution of educational content; software and other technology; and online education. The company?s language training courses primarily consist of various types of English language training courses, and other foreign languages, including German, Japanese, French, Korean, and Spanish. It offers test preparation courses for language and entrance exams used by educational institutions in the United States, the People?s Republic of China, and commonwealth countries. The company also operates primary and secondary schools in Yangzhou. In addition, New Oriental Education & Technology Group Inc. deve lops and edits content for educational materials for language training and test preparation, such as books, software, CD-ROMs, magazines, and other periodicals. It distributes these materials through various distribution channels consisting of own classrooms and bookstores, as well as third-party distributors. Further, the company offers various online education programs on its Web site, koolearn.com. Additionally, it provides consulting services to help students through the application and admission process for overseas educational institutions, as well as post-secondary educational programs to help students seek career opportunities; and operates two pre-schools. The company offers educational services under the ?New Oriental? brand name. As of May 31, 2010, it offered education programs, services, and products through a network of 48 schools, 319 learning centers, and 25 bookstores. The company was founded in 1993 and is headquartered in Beijing, the People?s Republic of China.
Advisors' Opinion:- [By Seth Jayson]
New Oriental Education & Technology Group (NYSE: EDU ) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 28 (Q3), New Oriental Education & Technology Group met expectations on revenues and beat expectations on earnings per share. - [By Belinda Cao]
New Oriental Education & Technology Group Inc. (EDU), China�� largest private educational company, fell 11 percent last week to a one-month low of $16.07. Oppenheimer & Co. analyst Ella Ji said April 2 that students may avoid large gatherings because of the flu, impacting New Oriental.
Top 5 Energy Stocks To Own Right Now: 3SBio Inc.(SSRX)
3SBio Inc., a biotechnology company, engages in the research, development, manufacture, and distribution of pharmaceutical products in the People?s Republic of China. Its products include EPIAO, an injectable recombinant human erythropoietin to stimulate the production of red blood cells in patients with anemia and to reduce the need for blood transfusions; and TPIAO, a recombinant human thrombopoietin to treat chemotherapy-induced thrombocytopenia. The company also offers Intefen, a recombinant interferon alpha-2a product for the treatment of carcinoma of the lymphatic or hematopoietic system and viral infectious diseases; Inleusin, a recombinant human IL-2 product to treat renal cell carcinoma, metastatic melanoma, and thoratic fluid build-up caused by cancer and tuberculosis; and Iron Sucrose Supplement for treating anemia associated with iron deficiency, as well as for patients with end-stage renal disease requiring iron replacement therapy. In addition, its product pi peline comprises a high dosage EPIAO; NuPIAO, a second-generation EPIAO; TPIAO to treat idiopathic thrombocytopenic purpura; NuLeusin for metastatic melanoma and metastatic renal cell carcinoma; human papilloma virus vaccine for the prevention of cervical cancer; and an anti-TNF monoclonal antibody product candidate for treating rheumatoid arthritis, psoriasis, and other inflammatory diseases. Further, the company?s product pipeline includes Feraheme, an in-licensed intravenous iron replacement therapeutic agent used to treat iron deficiency anemia in chronic kidney disease patients and in patients requiring hemodialysis; and Nephoxil, an iron-based phosphate binder for the treatment of hyperphosphatemia in patients with ESRD. It sells its products directly, as well as through its network of distributors to various healthcare providers, including hospitals, clinics, and dialysis centers. The company was founded in 1993 and is headquartered in Shenyang, the People?s Republic of China.
Top 10 China Companies To Own For 2014: Vanceinfo Technologies Inc(VIT)
VanceInfo Technologies Inc., together with its subsidiaries, engages in the provision of information technology (IT) services. The company offers research and development services in various phases of development, including requirements analysis, concept generation, product realization, quality assurance and testing, and technology and information transfer; and develops software products, such as middlewares, Internet protocols, and other software. It provides enterprise solutions for packaged evaluation and selection, packaged implementation, customization, regional rollout, version upgrades, and business intelligence/data warehouse, as well as enhancement, maintenance, and product support; and designs, develops, and implements software solutions to meet various client requirements, and provides maintenance services for software systems. VanceInfo also offers customized and automated testing practices, which include functional testing, globalization and localization testi ng, automation testing, performance testing, remote testing, and test process consulting; and globalization and localization services that comprise software and content localization, localization engineering, localization testing, internationalization engineering, and internationalization testing. The company serves technology, telecommunications, financial services, manufacturing, and retail and distribution industries primarily in China, the United States, Europe, and Japan. VanceInfo Technologies Inc. was founded in 1995 and is headquartered in Beijing, the People?s Republic of China.
Top 10 China Companies To Own For 2014: ChinaCast Education Corporation(CAST)
ChinaCast Education Corporation, together with its subsidiaries, provides post-secondary education and e-learning services in China. The company operates in two segments, E-learning and Training Service Group and Traditional University Group. The E-learning and Training Service Group provides post secondary education distance learning services that enable universities and other higher learning institutions to provide nationwide real-time distance learning services. It also provides K-12 educational services, such as broadcast multimedia educational content services to primary, middle, and high schools; and vocational/career training services. The Traditional University Group segment operates private residential universities that offer four-year bachelor?s degree and three-year diploma programs in finance, economics, trade, tourism, advertising, IT, music, foreign languages, tourism, hospitality, computer engineering, law, and art. The company also provides logistic service s. ChinaCast Education Corporation was founded in 1999 and is headquartered in Central, Hong Kong.
Top 10 China Companies To Own For 2014: Hampton Roads Bankshares Inc(HMPR)
Hampton Roads Bankshares, Inc. operates as the bank holding company for Bank of Hampton Roads (BOHR) and Shore Bank that provide community and commercial banking services primarily to individuals and small to medium-sized businesses. It offers traditional loan and deposit banking services, as well as telephone banking, Internet banking, remote deposit capture, and debit cards. The company also accepts commercial and consumer deposits that consist of various forms of demand and time accounts, including checking accounts, interest checking, money market accounts, savings accounts, certificates of deposit, and IRA accounts. In addition, it provides a range of commercial, real estate, and consumer lending products and services; commercial and industrial loans; construction loans; real estate-commercial mortgage; real estate-residential mortgage; and installment loans to individuals. Further, the company offers travelers? checks, coin counters, wire services, and safe deposit b ox services. Additionally, it provides letters of credit and standby letters of credit, and cash management products to commercial customers. The company also offers insurance products to businesses and individuals; securities, brokerage, and investment advisory services; and non-deposit investment products, including stocks, bonds, mutual funds, and insurance products, as well as engages in originating and processing mortgage loans. As of June 2, 2011, the company operates 48 banking offices in Virginia and North Carolina; and 8 banking offices in the eastern shore of Maryland and Virginia. It operates a network of sixty-seven ATM machines. The company was founded in 1961 and is headquartered in Norfolk, Virginia.
Top 10 China Companies To Own For 2014: KongZhong Corporation(KONG)
KongZhong Corporation, together with its subsidiaries, provides wireless interactive entertainment, media, and community services to mobile phone users in the People's Republic of China. It also involves in the development, distribution, and marketing of consumer wireless value-added services, including wireless application protocol, multimedia messaging services, short messaging services, interactive voice response services, and color ring back tones. In addition, it offers interactive entertainment services, such as mobile games, pictures, karaoke, electronic books, mobile phone personalization features, entertainment news, chat, and message boards; and through Kong.net offer news, community services, games, and other interactive media and entertainment services; and sells advertising space in the form of text-link, banner, and button advertisements. Further, the company develops and publishes mobile games, including downloadable mobile games and online mobile games cons isting of action, role-playing, and leisure games. As of December 31, 2009, it had a library of approximately 300 internally developed mobile games. Additionally, it develops online games; and provides consulting and technology services, as well as media and net book services. The company was formerly known as Communication Over The Air Inc. and changed its name to KongZhong Corporation in March 2004. KongZhong Corporation was founded in 2002 and is headquartered in Beijing, the People?s Republic of China
Advisors' Opinion:- [By Roberto Pedone]
One under-$10 wireless services player that looks poised for a big spike higher is KongZhong (KONG), which is a provider of WVAS and mobile games to mobile phone users and a wireless media company providing news, content, community and mobile advertising services through its wireless Internet sites in the PRC. This stock is off to a hot start in 2013, with shares up sharply by 53%.
If you take a look at the chart for KongZhong, you'll notice that this stock has been downtrending badly for the last two months, with shares plunging lower from its high of $14.92 to its recent low of $7.78 a share. During that downtrend, shares of KONG have been consistently making lower highs and lower lows, which is bearish technical price action. That move has now pushed shares of KONG into oversold territory, since its current relative strength index reading is 30.21. Shares of KONG are now starting to spike higher off its recent low of $7.78 a share and off its 200-day moving average of $7.95 a share. This spike could be signaling that the downside volatility for KONG is over in the short-term and the stock is ready to trend higher.
Traders should now look for long-biased trades in KONG if it manages to break out above some near-term overhead resistance at $8.50 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 519,857 shares. If that breakout triggers soon, then KONG will set up to re-test or possibly take out its next major overhead resistance levels at $10 to its 50-day moving average at $11.33 a share.
Traders can look to buy KONG off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $7.78 a share. One can also buy KONG off strength once it takes out $8.50 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Kongzhong (Nasdaq: KONG ) , whose recent revenue and earnings are plotted below.
Top 10 China Companies To Own For 2014: DAQQ New Energy Corp.(DQ)
Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon in China. The company sells its polysilicon to photovoltaic product manufacturers for use in the processing of ingots, wafers, cells and modules for solar power solutions. It also produces and sells mono-crystalline and multi-crystalline modules to photovoltaic system integrators and distributors in China and internationally under its Daqo brand. The company was formerly known as Mega Stand International Limited and changed its name to Daqo New Energy Corp. in August 2009. Daqo New Energy Corp. was founded in 2006 and is headquartered Wanzhou, the People?s Republic of China.
Top 10 China Companies To Own For 2014: Changyou.com Limited(CYOU)
Changyou.com Limited develops and operates online games in the People?s Republic of China. It involves in the development, operation, and licensing of massively multi-player online role-playing games (MMORPGs), which are interactive online games that might be played simultaneously by various game players. The company operates seven MMORPGs that include its in house developed Tian Long Ba Bu; and licensed Blade Online, Blade Hero 2, Da Hua Shui Hu, Zhong Hua Ying Xiong, Immortal Faith, and San Jie Qi Yuan. As of December 31, 2010, Changyou?s games in China had approximately 111.4 million aggregate registered accounts; 1.0 million aggregate peak concurrent users; and 2.7 million aggregate active paying accounts. The company was founded in 2003 and is based in Beijing, the People?s Republic of China. Changyou.com Limited is a subsidiary of Sohu.com Inc.
Advisors' Opinion:- [By Damian Illia]
In the video game industry no one is playing games. Users are seeking entertainment on all kinds of devices, and companies strive hard to stand out and profit in this shifting field. Competition might be stiff, but it�� a highly profitable business for those that make it to the next level. Electronic Arts (EA), Changyou.com (CYOU) and Activision Blizzard (ATVI) are three game developers with different, but interesting, prospects ahead. Let�� take a closer look at them and see if you��e up for play:
- [By Seth Jayson]
Changyou.com (Nasdaq: CYOU ) is expected to report Q2 earnings on July 29. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Changyou.com's revenues will increase 24.3% and EPS will expand 1.5%.
Top 10 China Companies To Own For 2014: Perfect World Co. Ltd.(PWRD)
Perfect World Co., Ltd., through its subsidiaries, engages in the research, development, operation, and licensing of online games primarily in the People?s Republic of China, the United States, and the Rest of Asia. It develops online games based on its game engines and game development platforms. The company?s 3D massively multiplayer online role playing games (MMORPGs) include Perfect World, an adventure and fantasy game with traditional Chinese settings; Legend of Martial Arts, an adventure story of Chinese swordsmen set in an ancient kingdom; and Perfect World II, which is set in a similar content and graphic background as Perfect World. It also offers Zhu Xian that is based on martial arts focused adventure set in a fantasy world; Chi Bi, a war story developed based on ancient Chinese history known as the Three Kingdoms; Hot Dance Party, a 3D online casual game; Pocketpet Journey West, a 3D MMORPG based on the classical novel of Chinese literature, Journey to the West ; Battle of the Immortals, a mysterious adventure, which enables game players to travel between eastern and western cultures, and adventures in historic sites and turf wars; and Fantasy Zhu Xian, a 2D turn-based MMORPG based on the Internet fantasy novel Zhu Xian. It also involves in the production and distribution of films, as well as television advertising activities. The company was founded in 2004 and is based in Beijing, the People?s Republic of China.
Advisors' Opinion:- [By Kevin Chen]
Two companies that seem on an unstoppable path of profits are Giant Interactive� (NYSE: GA ) and NetEase (NASDAQ: NTES ) .�Meanwhile, Shanda Games� (NASDAQ: GAME ) and Perfect World� (NASDAQ: PWRD ) haven't done as well.