Sunday, June 30, 2013

Following Apple's Fall, Now It's Samsung's Turn

Samsung may have a habit of copying Apple (NASDAQ: AAPL  ) , but the one thing the South Korean conglomerate certainly doesn't want to imitate is Apple's well-documented pullback from its all-time highs last year. After tapping $705 in September, the Mac maker traded as low as $385 in April. That's a 45% drop over eight months.

The main factors driving Apple's pullback have been investor fears over saturation in the high-end smartphone market, downward pressure on pricing and gross margins, and the lack of any new product categories. Along the way, analysts have been dropping estimates, since it's become increasingly hard for Apple to deliver growth considering the large base it's now at.

Samsung looks like it may be in store for a similar fate, and for a lot of the same reasons. This month, Samsung has shed a whopping 13% of its value.

Source: Google Finance.

June hasn't been kind to the company, as analysts have begun to reduce estimates on Samsung's smartphone units. JPMorgan Chase started off the month by cutting estimates, saying Galaxy S4 orders had fallen by 20% to 30% to 7 million to 8 million because of soft demand.

Thanks to an enormous marketing budget, Samsung had successfully built an incredible amount of hype leading into the launch of the Galaxy S4. Those aggressive marketing campaigns, most of which were at Apple's expense, didn't just inflate consumer expectations of what turned out to be a modest upgrade -- analysts were also expecting a lot from all the hype.

Samsung's mobile business has quickly grown to become its biggest generator of operating income -- 74% of consolidated operating profit came from the mobile segment in the first quarter. Apple doesn't break out operating profit by product, but 53% of last quarter's revenue came from the iPhone. Needless to say, both companies are heavily concentrated on the smartphone market, and the secular trends taking place there are weighing on them both.

Where the two companies differ is that Samsung currently plays in the low-end and mid-range market segments that are showing the most growth, particularly in emerging markets. Those segments also carry lower margins relative to the high end. Apple has yet to enter the mid-range, as even the older iPhone 4 is priced near the high end of those markets.

About a month into Apple's pullback, shares were down 13%. With Samsung's own pullback just beginning with almost identical performance, will it end up copying Apple again?

Apple has a history of cranking out revolutionary products ... and then creatively destroying them with something better. Read about the future of Apple in the free report, "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.

Saturday, June 29, 2013

HCI Group: A Peter Lynch play

John ReeseWe base our stock recommendations on the investment strategies of well-known "legendary" stock experts. HCI Group (HCI), scores a 100% rating based on the price-to-earnings to growth strategy used by Peter Lynch.

HCI, formerly Homeowners Choice, is a holding company engaged in the property and casualty insurance business, that would be considered a "fast-grower" under Peter Lynch's  P/E/Growth methodology.

Under this strategy, the investor should examine the P/E (8.15) relative to the growth rate (31.66%), based on the average of the 3, 4 and 5 year historical eps growth rates, for a company.

This is a quick way of determining the fairness of the price. In this particular case, the P/E/G ratio for HCI (0.26) is very favorable.

This methodology favors companies that have several years of fast earnings growth, as these companies have a proven formula for growth that in many cases can continue many more years.

This strategy likes to see earnings growth in the range of 20% to 50%, as earnings growth over 50% may be unsustainable. The EPS growth rate for HCI is 31.7%, based on the average of the 3, 4 and 5 year historical eps growth rates, which is acceptable.

This methodology uses the Equity/Assets Ratio as a way to determine a financial intermediary's health, as it is a better measure than the Debt/Equity Ratio. HCI's Equity/Assets ratio (34.00%) is extremely healthy and above the minimum 5% this methodology looks for, thus passing the criterion.

This methodology uses Return on Assets as a way to measure a financial intermediary's profitability. HCI's ROA (13.86%) is above the minimum 1% that this methodology looks for, thus passing the criterion.

A bonus for a company is having a Net Cash/Price ratio above 30%. Lynch defines net cash as cash and marketable securities minus long term debt.

According to this methodology, a high value for this ratio dramatically cuts down on the risk of the security. The Net Cash/Price ratio for HCI (52.13%) is considered very favorable.

Will the Uninsured Undermine the Implementation of Obamacare?

The debate between both political parties over the merits of the Patient Protection and Affordable Care Act, also known as Obamacare, has been going on for the better part of four years now with little end in sight.

With the PPACA being passed by Congress in 2010 and upheld by the Supreme Court in 2012, the hope had been that both sides of the aisle would come together to aid in its implementation, but that's been far from the case. We have less than 100 days to go until the state-run health exchanges effectively open for business and consumers become eligible to purchase health insurance through these exchanges, and pessimism in the transformative health care bill is only growing, according to the latest polls from Kaiser Health and Gallup.

Kaiser Health Tracking noted in June that only 35% of the public views the PPACA favorably, which was its lowest reading since October 2011. A more damaging poll on public pessimism was released yesterday by Gallup, which asked a random sample of 2,048 adults how Obamacare would affect their families' health care situation. Of the respondents, just 22% expected an improvement, while nearly double -- 42% -- expected the bill to worsen it. When asked the same question but given the context of the nation as a whole, 47% of respondents expect the PPACA will worsen the health care system.  

That's certainly not encouraging news for a bill ultimately designed to expand health care coverage to lower-income individuals while simultaneously driving down costs through transparent competition on the state and government-run health exchanges.

Ultimately, it's all about price
Up until now my subjective opinion of this pessimism had been based on the fact that there had to be a sizable minority of citizens that simply didn't want insurance to be a mandate, or simply felt it was unnecessary for them. A Kaiser Health poll released last week appears to have completely debunked my thesis.

Source: Images Money, Flickr.

In its poll, Kaiser Health asked adults aged 18-64 whether health insurance was something that was very important to them. A whopping 87% of respondents said "yes" with only 2% commenting that insurance was "not important at all." What I found particularly intriguing, though, was the breakdown between the insured and uninsured. 91% of insured respondents said insurance was "very important" to them compared to only 67% of the uninsured claiming the same.

Kaiser went on to further examine what the greatest objection of the uninsured was with regard to why they currently had no insurance. Of the respondents, 40% said it was "too expensive" with another 26% noting that their employment situation (e.g., being unemployed or employer not offering health insurance) was the root cause. Only 11% actually responded with the answer that they "didn't need insurance." 

To me, this demonstrates one very key point about the uninsured -- that it's ultimately about costs. The uninsured are extremely worried and skeptical about the costs associated with Obamacare. Clearly, the majority of the uninsured would prefer to have health coverage, but at what cost is the great question!

A head-banging conundrum
Call it the maddening aspect of Obamacare, but just as the uninsured are among the most skeptical of Obamacare's implementation, it's also in line to be among its greatest beneficiaries.

In the same Kaiser Health Tracking poll, 40% of the uninsured answered "No" in regards to the question of whether health care was worth the money. However, the Medicaid expansion called for in Obamacare will serve to bring some 16 million currently uninsured, low-income individuals under the umbrella of government-run health care. Many others will qualify for a partial premium subsidy based on their income. In addition, Obamacare required that the minimum coverage offered by health-benefit providers be greatly beefed up and meet a higher standard, which should result in more encompassing care for the soon-to-be-insured.

The expected influx of Medicaid patients into the health care system is precisely what prompted WellPoint (NYSE: WLP  ) to buy Amerigroup for $4.5 billion and CIGNA (NYSE: CI  ) to purchase Healthspring for $3.8 billion. Although Medicaid patients don't drive the best margins, they are guaranteed income for health-benefits providers.

What we have here is a failure to communicate
To summarize, we have a large group of uninsured citizens that are skeptical about the costs of health insurance, and transformative health reform designed to bring many of these uninsured people easier -- and in some cases, fully or partially subsidized -- access to health care. What we have here is a failure to communicate between the Centers for Medicare and Medicaid Services and uninsured citizens.

How much, if anything, have you heard about the new insurance marketplace?

Total Public

Insured

Uninsured

A lot

8%

10%

4%

Some

14%

15%

8%

Only a little

34%

33%

32%

Nothing at all

45%

42%

55%

Source: Kaiser Family Foundation Health Tracking Poll.

In fact, in the same Kaiser Health poll, when people were asked how much they'd heard about the health exchange being set up in their state, 55% of the uninsured reported hearing "nothing at all" with another 32% responding "only a little." The uninsured citizen is one of the backbones of Obamacare's success, and insurers are counting on their membership to drive their growth.

In addition, the nation's largest hospital operators, HCA Holdings (NYSE: HCA  ) and Tenet Healthcare (NYSE: THC  ) are counting on Obamacare to reduce the number of uninsured patients that it treats. Each year, these hospitals lose millions of dollars to doubtful accounts of patients that have received care but are unable to pay their bill. For HCA, that figure amounted to nearly $3.8 billion, or 10% of its total revenue, in 2012. Tenet's doubtful account provision was slightly lower at $785 million, or 8% of its total 2012 revenue. 

The only way to curb the skepticism of the uninsured and ensure they are easily integrated into the new system is through educating these people. Unfortunately, the CMS is waiting until the last possible minute to educate the public (including the uninsured) on how to obtain health insurance and utilize the health exchanges to their advantage. My concern would be that if we've gone three years since the implementation of the PPACA and 42% of citizens aren't aware it's even a law and 87% of the uninsured have heard nothing or little about the progress of their states' health exchange, then how does the CMS expect all of this to come together in just a matter of a few weeks?

Wait and see
As always, we're just going to have to wait and see how things play out. If the Kaiser Health Tracking poll is an accurate reflection of sentiment, then uninsured citizens would certainly prefer to be insured if they had the choice and consider having health insurance important. However, very few have had their health care cost fears allayed by the passing of the PPACA and it appears that the CMS is going to wait until much closer to the October 1 launch of the health exchanges before it begins it information blitz to the public about how the exchanges work and who they'll benefit.

Simply put, if the uninsured fail to get this message, there will be a big hole in Obamacare for health-benefits providers that will be missing out on new members and hospitals that likely won't see a sizable decline in doubtful provisions.

Still in the dark about how Obamacare might affect you and your portfolio? The Motley Fool's special report, "Everything You Need to Know About Obamacare," takes a 360-degree look at how the law may impact your taxes, health insurance, and investments. Click here to grab your free copy today.

Friday, June 28, 2013

Should Investors Look for a Buying Opportunity at Unilever While the FTSE 100 Tanks?

LONDON -- It can feel like things are happening so quickly, when the stock market panics. Your shares go from sleepily, steadily climbing for weeks on end, to plummeting in the blink of an eye.

Here at The Motley Fool, we're long-term investors, focused on the underlying business of the companies we invest in. We prefer to let the market's mood swings present us with opportunities, rather than guide our decision making.

So it's usually amid the chaos of a market panic that we find the most attractive opportunities to invest in high-quality businesses, as the good are thrown out with the bad.

Today, I'm weighing up one of the London market's most renowned "high-quality" companies, Unilever  (LSE: ULVR  ) (NYSE: UL  ) , and asking whether the recent market sell-off provides investors with a chance to buy in.

Unilever's shares have taken a bath
Since hitting a new all-time intraday high of 2,908 pence on May 28, Unilever's shares have dropped 12% in a few short weeks. That's quite a severe drop -- over the same time period, the FTSE 100 has fallen 8%.

There are two overriding thoughts I have when comparing Unilever to the overall market. For one, in my view, Unilever has a much higher "quality of business" than the average FTSE 100 company. There's an extent to which I'd rather own Unilever shares for the long haul, instead of one of the gold miners or insurance companies, for example.

Unilever's consumer products, such as Dove, Sure, and Flora enjoy significant pricing power and customer loyalty as a result of their strong brands. Its business is scalable, and enjoys significant potential in emerging markets. Its products fulfill a persistent need for consumers, and operate in an industry with favorable economics, where capital can be deployed for potentially attractive rates of return.

The average FTSE 100 company cannot boast the same long-term global potential as Unilever in my view or match its unusually attractive characteristics.

Fly in the ointment
My second overriding thought, though, relates to Unilever's valuation. The shares are fairly expensive, both absolutely and when compared to the FTSE 100. Sadly, the attractive attributes I mentioned are no secret to investors, who have flocked to own Unilever's shares since 2009.

Simplistically, the company is valued at around 72 billion pounds and is expected to earn roughly 4 billion pounds this year, meaning a forward price-to-earnings multiple of around 18. I estimate that an earnings growth expectation of roughly 8% per year has been priced into Unilever's shares for the next decade. While this premium might not sound like much, it would require Unilever's per-share earnings to double in that time period and compares to 6% annualized growth in the previous 10 years.

It's arguable that investors are offered too small a margin of safety on their investment at today's prices, even after considering the recent sell-off, and the quality of Unilever's business.

It wouldn't be the first time Unilever's shares became too optimistically priced -- after peaking at almost 16 pounds in 1998, it took around 10 years for the shares to recover that level. The culprit that time around was also a lofty expectation of Unilever's potential, as the shares traded for 27 times their earnings that year. The market was right about Unilever's prospects, but investors had to wait for years to see an attractive return on their investment.

The bottom line
I'm a strong admirer of Unilever, and have above-average confidence in the durability of its business. However, I think there's a sensible limit when paying up for shares of a high-quality company. The higher the price, the lower the potential returns an investor can expect to make on an investment.

In my view, the recent 12% slip in Unilever's shares isn't quite enough to make the shares attractive enough for me to invest. So I'd perhaps wait a little longer or instead look for less expensive, high-quality opportunities elsewhere.

Good company
Fortunately, I'm not the only investor who recommends buying the shares of high-quality companies at cheap prices. In fact, I'm in very good company -- with the richest investor in the world!

Legendary investor Warren Buffett is known for buying wonderful businesses with durable competitive advantages, when the price is right.

There's one U.K. company in which the world's most famous investor has added over four-hundred million shares in the last decade. In fact, Buffett's Berkshire Hathaway bought another $1 billion of their shares in the last year alone, and now owns 5% the company!

If you want to learn more about the one U.K. company the "Oracle of Omaha" is backing for the long term, The Motley Fool has compiled this special report, detailing the logic behind Buffett's investment.

Just click here for your free report!

link

Thursday, June 27, 2013

Accenture Stock Needs This Growth Story to Continue

Accenture (NYSE: ACN  ) is well known as a consulting giant, with an emphasis on financial and risk management services, IT consulting, and outsourcing. But the reach of Accenture's business goes well beyond what many investors are familiar with, and Accenture stock has benefited from the wide range of opportunities that the company has capitalized on. Let's take a closer look at Accenture to find out what's driving its growth story forward and what it'll take for the stock to keep moving higher.

How Accenture does business
Accenture isn't the only major consulting company in the world, but it's one of the largest. The emphasis on human capital over physical assets in generating the company's profits leads to highly attractive returns on invested capital, and the company's corporate culture has produced a strong reputation both within the industry and among potential clients.

One of Accenture's biggest areas of growth has been in technology-related consulting, with the company having become the No. 2 IT consulting company in the world, trailing only rival IBM (NYSE: IBM  ) . Accenture's ability to take advantage of diversity in its employee ranks comes from its lack of a physical corporate headquarters, allowing employees to work in their home countries, and thereby attracting the most talented workers available in a given area. In particular, Accenture has focused much of its attention on India, with more than a quarter of its employees hailing from the subcontinent.

Lately, Accenture stock has benefited from the consultancy's move toward Big Data initiatives. Just earlier this week, Accenture joined with General Electric (NYSE: GE  ) to create a strategic global alliance to help companies better utilize the data they collect in their business operations. With the goal of helping clients reduce downtime and costs while improving efficiency in supply chain operations, the venture combines strengths from both GE and Accenture in delivering joint solutions to customers.

In addition, Accenture's purchase of Acquity Group last month helped the company expand its presence into the e-commerce realm. With Acquity's emphasis on digital marketing and strategy to improve the effectiveness of clients' online sales, Accenture hopes to use the company's capabilities in conjunction with other business services in its Interactive division.

Going beyond pure technology
But Accenture isn't just a pure technology consultant. Recently, the company's Health & Public Services segment has produced the fastest growth among its divisions, with increasing margins and double-digit revenue gains being driven by just 6% of its total workforce. Although the company has to face IBM in health care as well, with services such as data analytics and artificial intelligence, Accenture has done a good job of holding onto its market share and expanding its reach around the world.

Accenture has also turned to energy as a key element for growth. Its Utilities group works with three-quarters of the top utility companies in the world, helping put together business processes and related services to handle certain key areas, such as capital project planning and smart-grid technology. There, Accenture goes up against GE, which has also worked hard at boosting its presence in the rapidly growing industry.

Can Accenture stock still climb higher?
Since the depths of the financial crisis four years ago, Accenture stock has tripled while paying a lucrative dividend that currently yields more than 2%. Although the company's earnings multiple has expanded somewhat, expectations for roughly 10% growth in net income don't leave its trailing P/E of about 18 unreasonably high.

Investing in Accenture stock essentially involves making a bet on the health of the global economy in general and on the prosperity of the business community more specifically. If clients can afford to use Accenture's services, then it can usually provide solutions that not only improve its clients' business but also leads to greater profits that could push Accenture stock even higher in the years to come.

For GE, management took advantage of the market's dip during the financial crisis to make strategic bets in energy. If you're a GE investor, you need to understand how these bets could drive this company to become the world's infrastructure leader. At the same time, you need to be aware of the threats to GE's portfolio. To help, we're offering comprehensive coverage for investors in a premium report on General Electric, in which our industrials analyst breaks down GE's multiple businesses. You'll find reasons to buy or sell GE today. To get started, click here now.

Click here to add Accenture to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Wednesday, June 26, 2013

Quest Diagnostics Completes Acquisition of Dignity Health

Diagnostic information services provider Quest Diagnostics (NYSE: DGX  ) announced yesterday that it had completed the acquisition of the clinical outreach services of Dignity Health, a California-based hospital.

Terms of the acquisition were not disclosed, but Quest said it would perform the testing for the non-hospital labs at its clinical laboratories in California and Nevada. Dignity's hospital-based labs were not included in the transaction.

So far this year, Quest has made three lab business acquisitions including Diginity's, having previously acquired the toxicology and clinical laboratory business of Humana subsidiary Concentra, and the clinical and anatomic-pathology outreach laboratory businesses of UMass Memorial Medical Center.

Quest expects the Dignity deal to be neutral to adjusted earnings this year while being modestly accretive to earnings per share in 2014. The company also said it expects it to contribute about half a percentage point to consolidated revenues annually. Quest Diagnostics generated approximately $7.4 billion in revenues in 2012.

Tuesday, June 25, 2013

Top 5 Healthcare Technology Companies To Invest In Right Now

The 2014 Chevy Silverado, one of a whole series of new products GM will launch over the next two years. Photo credit: General Motors Co.

I hear it from readers all the time: General Motors (NYSE: GM  ) is still the automaker that lots of you love to hate.

I get it. The 2009 bailout-bankruptcy-overhaul orchestrated by the Obama administration left a lot of hard feelings in its wake. Bondholders who lost out and dealers who were forced to close felt burned, and to this day they, and plenty of other folks, hold it against GM.

I've been writing about GM for a long time. I know all the arguments, I've heard it over and over from all sides.

But here's the thing: This GM is a different company from the one that went down the tubes in 2008. It has a different CEO, different leaders in key positions, and a whole different strategy from the one that got Old GM in so much trouble before 2009.

Top 5 Healthcare Technology Companies To Invest In Right Now: (WIPRO.NS)

Wipro Limited provides information technology (IT) products and services, and consumer care and lighting products primarily in India, the United States, and Europe. The IT Services segment provides IT and IT enabled services, including software application development, application maintenance, research and development services for hardware and software design, data center outsourcing services, and business process outsourcing services. The IT Products segment sells a range of personal desktop computers, servers, and notebooks. This segment provides computing, storage, networking, security, and software products. It also acts as a value added reseller of desktops, servers, notebooks, storage products, networking solutions, and packaged software for various brands, as well as delivers hardware, software products, and other related deliverables. This segment serves enterprises in the government, defense, IT and IT-enabled services, telecommunications/telecom service providers , manufacturing, and banking sectors. The Consumer Care and Lighting segment manufactures, distributes, and sells personal care products, baby care products, lighting products, and hydrogenated cooking oils. It provides products in the toilet soaps, toiletries, deodorants, wellness, skincare, and hair care categories; and commercial lighting, office modular furniture, and security solutions. The company also manufactures cylinders and truck hydraulics; distributes hydraulic steering equipment and pumps, motors, and valves for international companies; and provides water solutions business, as well as provides consulting on renewable energy solutions. Wipro Ltd. has a strategic partnership with Red Hat, Inc. Wipro was founded in 1945 and is headquartered in Bangalore, India.

Advisors' Opinion:
  • [By Bill]

    Wipro is headquartered at Bangalore and its core business areas covers infrastructure solutions, consumer care and certain professional and business solutions. The company, for long, was known as one of the largest independent R&D Services provider in the world.

    Highlights of the Results for the Quarter ended March 31, 2010 speak volumes about the company’s splendid performance. IT Services Revenue in constant currency was $1,180 million, with a sequential increase of 4.7%. On a year to year basis, total Revenues were Rs. 69.83 billion ($1.55 billion1), representing an increase of 8% over the same period last year.

Top 5 Healthcare Technology Companies To Invest In Right Now: Leap Wireless International Inc.(LEAP)

Leap Wireless International, Inc., together with its subsidiaries, provides digital wireless services under the ?Cricket? brand name in the United States. The company offers unlimited local and the U.S. long distance services from various Cricket service area and unlimited text messaging services, as well as mobile Web, 411 services, navigation, and data back-up. It also provides BridgePay, a flexible payment option for customers to use and pay for the company?s cricket wireless service; handsets and devices with various features; cricket broadband service, an unlimited mobile broadband service that allows customers to access the Internet through their computers; Cricket PAYGo Service, a pay-as-you-go unlimited prepaid wireless service designed for customers who prefer the flexibility and control offered by traditional prepaid services; and Muve Music Service, an unlimited music download service for mobile handsets in select cricket markets. In addition, the company off ers voice and data roaming services. It markets its cricket handsets and services, primarily through company-owned retail stores and kiosks, as well as through authorized dealers and distributors, including premier dealers, local market authorized dealers, national mass-market retailers, and other indirect distributors. As of December 31, 2010, the company offered services in 35 states and the District of Columbia to approximately 5.5 million customers. Leap Wireless International, Inc. was founded in 1998 and is headquartered in San Diego, California.

Hot Dividend Stocks To Watch Right Now: AngioDynamics Inc.(ANGO)

AngioDynamics, Inc. designs, develops, manufactures, and markets various therapeutic and diagnostic devices that enable interventional physicians to treat PVD, tumors, and other non-coronary diseases. The company operates in two divisions, Vascular and Oncology/Surgery. The Vascular division provides venous products, including VenaCure EVLT laser systems and Sotradecol; angiographic products and accessories comprising angiographic catheters, entry needles, guidewires, and fluid management products; percutaneous transluminal angioplasty dilation balloon catheters, such as WorkHorse, WorkHorse II, and Profiler to open blocked blood vessels and dialysis access sites; drainage products consisting of the total abscession general, biliary, and nephrostomy drainage catheters; and thrombolytic products that include pulsespray infusion and unifuse thrombolytic catheters, and speedlyser to deliver thrombolytic agents. It also offers micro access sets that provide interventional phys icians a smaller introducer system for minimally-invasive procedures; Benephit, a therapeutic approach to deliver drugs directly to the kidneys; and various dialysis catheters, which comprise DuraMax, Schon, Evenmore, Dura-Flow, SCHON XL, LifeJet, and Centros dialysis catheters. In addition, this division provides PICC products consisting of Morpheus CT PICC, Morpheus CT PICC insertion kits, and Morpheus smart PICC; port products and accessories, including Vortex, SmartPort, and LifeGuard; and central venous catheter products. The Oncology/Surgery division offers radiofrequency ablation, embolization, and nanoknife products. The company markets its products to interventional radiologists, vascular surgeons, and surgical oncologists through a direct sales force in the United States and through a combination of direct sales and distributor relationships internationally. AngioDynamics, Inc. was founded in 1988 and is headquartered in Latham, New York.

Top 5 Healthcare Technology Companies To Invest In Right Now: Cyclacel Pharmaceuticals Inc.(CYCC)

Cyclacel Pharmaceuticals, Inc., a development stage biopharmaceutical company, engages in the discovery, development, and commercialization of mechanism-targeted drugs to treat human cancers and other serious disorders. Its drugs in clinical development include orally-available Sapacitabine (CYC682), a cell cycle modulating nucleoside analog, which is in Phase III development for the treatment of acute myeloid leukemia in the elderly and in Phase II studies for myelodysplastic syndromes, and lung cancer; Seliciclib (CYC202 or R-roscovitine), a CDK (cyclin dependent kinase) inhibitor, which is in Phase II studies for the treatment of lung cancer and nasopharyngeal cancer and in a Phase I trial in combination with Sapacitabine; and CYC116, an Aurora kinase and VEGFR2 inhibitor, which is in Phase I in patients with solid tumors. The company, through its subsidiary, ALIGN Pharmaceuticals, LLC, markets directly Xclair Cream for radiation dermatitis, as well as Numoisyn Liquid a nd Numoisyn Lozenges for xerostomia in the United States. It focuses on hematology, oncology, and other therapeutic areas based on a portfolio of commercial products and a development pipeline of novel drug candidates. The company was founded in 1992 and is headquartered in Berkeley Heights, New Jersey.

Top 5 Healthcare Technology Companies To Invest In Right Now: Central European Media Enterprises Ltd.(CETV)

Central European Media Enterprises Ltd., a media and entertainment company, operates broadcast, content, and new media businesses in central and eastern Europe. The company operates in three segments: Broadcast, Media Pro Entertainment, and New Media. The Broadcast segment operates 30 television channels reaching an aggregate of approximately 49 million people primarily in 6 countries. It operates television channels, including BTV, BTV CINEMA, BTV COMEDY, RING.BG, BTV ACTION, and BTV LADY, a female-oriented cable channel in Bulgaria; NOVA TV, DOMA, and NOVA WORLD in Croatia; TV NOVA, NOVA CINEMA, NOVA SPORT, and MTV CZECH in the Czech Republic; PRO TV, PRO TV INTERNATIONAL, ACASA, PRO CINEMA, MTV ROMANIA, PRO TV CHISINAU, and SPORT.RO in Romania; TV MARK�A and DOMA in the Slovak Republic; POP TV, KANAL A, and POP BRIO in Slovenia, as well as various radio channels in Bulgaria. The Media Pro Entertainment segment develops, produces, and distributes content for its own te levision channels, as well as to third parties through the theatrical and home video operations; sells DVD and Blu Ray discs to wholesale and retail clients; and distributes theatrical, home entertainment, digital, and television film rights. It also owns and operates 16 cinema screens in Romania. The New Media segment offers television content; and operates various news portals, niche Websites, and television-related Websites. Central European Media Enterprises Ltd. was founded in 1994 and is based in Hamilton, Bermuda.

Sunday, June 23, 2013

Hot Asian Companies For 2014

Chipotle Mexican Grill (NYSE: CMG  ) isn't just rolling burritos these days.

The popular fast-casual chain announced yesterday that it will be doubling the size of its ShopHouse Southeast Asian Kitchen chain. Chipotle opened the first Asian-inspired eatery in Washington, D.C.'s Dupont Circle two years ago. There are three more under construction -- one in the nearby Georgetown area and two in California -- that should open in a few weeks. Now the company has signed leases for four more locations in the same two markets.�

For now, this isn't going to move the needle. We're talking about eight locations that will be open by the middle of next year. The namesake haven of fast-casual Mexican cuisine will top 1,500 locations later this year.

However, it never hurts to have a second concept ready to go once growth starts to decelerate.�

Hot Asian Companies For 2014: Highpower International Inc (HPJ)

Highpower International, Inc., incorporated on January 3, 2006, is engaged in the production and sales of rechargeable nickel-metal hydride (Ni-MH) batteries, lithium batteries and battery systems. The Company also recycles scrap battery materials through outsourcing and resells the recycled materials to some of its customers. The Company�� wholly owned subsidiary is Hong Kong Highpower Technology Company Limited (HKHTC). HKHTC�� wholly owned subsidiaries Shenzhen Highpower Technology Company Limited (SZ Highpower), Highpower Energy Technology (Hui Zhou) Company Limited (HZ Highpower), Springpower Technology (Shenzhen) Company Limited (SZ Springpower) and Icon Energy System Company Limited (ICON) and SZ Highpower�� wholly owned subsidiary Ganzhou Highpower Technology Company Limited (Ganzhou Highpower).

The Company�� Ni-MH rechargeable batteries are solutions for many applications. The Company�� Ni-MH rechargeable batteries offer capacity and energy density. As a result, users can expect a longer time between charges and longer running time. The Company�� Ni-MH rechargeable batteries are available in both cylindrical and prismatic shapes. The Company produces Li-ion batteries and Li-polymer batteries with hundreds of different models and specifications. As of December 31 2011, the Company produced an average of 1,520,000 lithium battery units per month.

The Company�� batteries fall into two main categories, such as consumer batteries and industrial batteries. The Company�� consumer batteries category produces Ni-MH and lithium batteries, which offers power capacity, allowing for longer working time and shortened charging time during equivalent working periods. The Company produces A, AA and AAA sized batteries in blister packing, as well as chargers and battery packs. The Company�� industrial batteries are designed for electric bikes, power tools and electric toys. They are specifically designed for high-drain discharge applications.

The Comp! any competes with SANYO Electric Co., Ltd., Panasonic, BYD Company Ltd., GPI International, Ltd., GS Yuasa Corporation, Desay Corp., Coslight Group, Tianjin Lishen Battery Co. Ltd. and ATL.

Hot Asian Companies For 2014: BioMarin Pharmaceutical Inc.(BMRN)

BioMarin Pharmaceutical Inc. develops and commercializes biopharmaceuticals for serious diseases and medical conditions in the United States, Europe, Latin America, and rest of the world. The company?s commercial products include Naglazyme, a recombinant form of N-acetylgalactosamine 4-sulfatase enzyme used for the treatment of mucopolysaccharidosis (MPS) VI; Kuvan, a proprietary synthetic oral form of 6R-BH4 used to treat patients with phenylketonuria (PKU), a metabolic disease; Aldurazyme used for the treatment of mucopolysaccharidosis I, a genetic disease; and Firdapse used to treat Lambert Eaton Myasthenic Syndrome, an autoimmune disease. It develops GALNS, an enzyme replacement therapy for the treatment of MPS IVA, a lysosomal storage disorder; PEG-PAL, an enzyme substitution therapy that is under Phase II clinical trial to treat PKU; BMN-673, a Phase I/II clinical trial product for the treatment of cancer; BMN-701, an enzyme replacement therapy, which is under Phase I/II clinical trials for Pompe disease, a glycogen storage disorder; and BMN-111, a peptide therapeutic that is under Phase I clinical trial for the treatment of achondroplasia. The company sells its Naglazyme, Kuvan, and Firdapse products to specialty pharmacies and end-users, such as hospitals and foreign government agencies, which act as retailers; and Naglazyme products to distributors and pharmaceutical wholesalers. It has a collaboration agreement with Genzyme Corporation for the manufacture of Aldurazyme; and an agreement with Merck Serono S.A. for the further development and commercialization of Kuvan and other products containing 6R-BH4 and PEG-PAL for PKU. BioMarin Pharmaceutical Inc. was founded in 1996 and is headquartered in Novato, California.

Best China Companies To Watch In Right Now: Cree Inc.(CREE)

Cree, Inc. develops and manufactures light emitting diodes (LEDs), LED lighting, and semiconductor solutions for wireless and power applications. Its LED products include blue and green LED chips that are used in various applications, including video screens, gaming displays, function indicator lights, and automotive backlighting; LED components comprising a range of packaged LED products and LED modules for lighting applications; LED lighting products, such as LED downlights, LED troffers, and LED lamps or bulbs for construction, retrofit, and renovation projects in commercial, governmental, and residential applications; and silicon carbide (SiC) wafers, which are used in the manufacture of optoelectronics, microwave, power switching, and other applications. The company also provides semiconductor materials and devices primarily based on silicon carbide (SiC), gallium nitride (GaN), and related compounds. Its power and radio frequency (RF) products include SiC-based power products comprising 600, 1,200, and 1,700-volt Schottky diodes, as well as 1,200-volt SiC metal semiconductor field-effect transistor switches that are used in power factor correction circuits for power supplies in computer servers and other applications, such as solar inverters; and RF devices, including a range of GaN high electron mobility transistors and monolithic microwave integrated circuits for military or commercial applications, as well as 10 watt and 60 watt SiC transistors and metal semiconductor field effect transistor products. The company primarily operates in China, the United States, Europe, South Korea, Japan, Malaysia, and Taiwan. Cree, Inc. was formerly known as Cree Research, Inc. and changed its name in January 2000. Cree, Inc. was founded in 1987 and is based in Durham, North Carolina.

Advisors' Opinion:
  • [By Curtis Hesler]

    Cree (CREE), the developer and manufacturer of semiconductor devices focusing on LEDs, is the top pick of the industry for 2012. With the recent acquisition of North America’s largest LED-based outdoor lighting company, namely Ruud Lighting, Creed is expected to be a fast growing business. Demand for LED components is expected to increase in 2012 due to the aforementioned introduction of third-generation LED lighting products. Cree has been given an Overweight rating by J.P. Morgan and its shares are currently trading at $25.68. They are expected to reach a target of $48 by the end of 2012. Cree has market capitalization of $2.98 billion and has earnings per share of $1.37. Cree also had an EBITD margin of 28.08%.

Hot Asian Companies For 2014: Metro Bancorp Inc(METR)

Metro Bancorp, Inc. operates as the bank holding company for Metro Bank, which provides a range of retail and commercial banking services to consumers and small and mid-sized companies in Pennsylvania. Its deposit products include personal and business checking accounts, regular savings accounts, money market accounts, interest checking accounts, fixed rate certificates of deposit, individual retirement accounts, and club accounts. The company?s loan products portfolio comprises commercial and industrial, owner occupied real estate, commercial construction and land development, and commercial real estate loans; consumer loans, including home equity, overdraft checking protection, and consumer credit cards, as well as installment loans for home improvement, and the purchase of consumer goods and automobiles; and construction loans and permanent mortgages for homes. It also offers debit card services, online banking services, safe deposit facilities, and automated teller fa cilities. As of July 14, 2011, Metro Bancorp operated 33 stores in the counties of Berks, Cumberland, Dauphin, Lancaster, Lebanon, and York. The company was formerly known as Pennsylvania Commerce Bancorp, Inc. and changed its name to Metro Bancorp, Inc. in June 2009. Metro Bancorp, Inc. was founded in 1984 and is headquartered in Harrisburg, Pennsylvania.

Hot Asian Companies For 2014: Meridian Interstate Bancorp Inc.(EBSB)

Meridian Interstate Bancorp, Inc. operates as a holding company for East Boston Savings Bank that provides various financial services to consumers and businesses in Massachusetts. The company offers various deposit products, including non-interest-bearing demand deposits comprising checking accounts; interest-bearing demand accounts, such as NOW and money market accounts; savings accounts; and certificates of deposit, as well as commercial checking accounts. It also provides various loan products, which include commercial real estate loans, one to four family residential loans, multi-family real estate loans, construction loans, home equity lines of credit, commercial business loans, and consumer loans, as well as involves in the purchase and sale of loan participation interests. In addition, the company offers non-deposit products consisting of mutual funds, annuities, stocks, and bonds through a third party broker-dealer; and long-term care insurance through a third-part y insurance company. It operates 21 full-service locations and 2 loan centers in the greater Boston metropolitan area. The company was founded in 1848 and is based in East Boston, Massachusetts. Meridian Interstate Bancorp, Inc. is a subsidiary of Meridian Financial Services, Incorporated.

Saturday, June 22, 2013

3 Steps to Improve Our National Electricity Generation

To have public- and private-sector leaders think alike is refreshing. During a recent EIA conference in Washington, D.C., Southern Co.  (NYSE: SO  ) CEO Tom Fanning reiterated points made by both President Obama and Secretary of Energy Ernest Moniz. His three points revolved around improving the capability of the United States to effectively and efficiently produce and distribute necessary electricity power.

Based on his three points, it is clear that we have some work to do, but momentum is being generated in a positive direction. Utilizing the full portfolio of energy options is priority No. 1, and Southern Co. is providing a great blueprint for how this could roll out. The other two points he believes are critical are that we need to make it a national priority and shore up our country's financial situation.

Speaking of a full portfolio, nuclear energy and other renewable sources have been key components of Exelon's business model for quite some time. Exelon has positioned itself with the largest nuclear fleet in North America. This strength, combined with an increased focus on balance sheet health and great generation diversification, places Exelon and its resized dividend on a shortlist of the top utilities. To determine if Exelon is a good long-term fit for your portfolio, you're invited to check out The Motley Fool's premium research report on the company. Simply click here now for instant access.

While the last two points on Fanning's list are a bit more complicated, his first point is discussed in greater depth in the video below.

Friday, June 21, 2013

Facebook Introduces Video on Instagram

At a live Facebook (NASDAQ: FB  ) event earlier today, Facebook Founder Mark Zuckerberg, and Instagram Co-Founder Kevin Systrom, introduced their social network's newest innovation: video on Instagram.

"Over the past two and a half years, Instagram has become a community where you can capture and share the world's moments simply and beautifully," said Instagram Co-Founder Kevin Systrom in a blog post today. "Some moments, however, need more than a static image to come to life. Until now, these stories have been missing from Instagram."

Source: Instagram blog 

According to the post, Instagram (and owner Facebook, by extension) now support 15-second video clips, where only photographs were previously possible. True to its original value add, Instragram will also offer 13 separate filters designed specifically for video.

Facebook initially bought Instagram in September 2012 for a combination of cash and Facebook stock valued at around $735 million at the time. Instagram's latest upgraded app is available in iOS version for Apple, as well as Android via Google Play.

After the world's most-hyped IPO turned out to be a dud, many investors don't even want to think about shares of Facebook. But there are things every investor needs to know about this revolutionary company. The Motley Fool's newest premium research report shows that there's a lot more to Facebook than meets the eye. Read up on whether there is anything to "like" about it today to determine if Facebook deserves a place in your portfolio. Access your report by clicking here.

The Beginners' Portfolio: We're Watching SSE, Barclays and Lloyds Banking

LONDON -- This article is the latest in a series that aims to help novice investors with the stock market. To enjoy past articles in the series, please visit our full archive.

While celebrating the Beginners' Portfolio's successful first year, and then re-examining Vodafone in the light of its changing dividend policy, I've been pretty much ignoring our watchlist for a while. It's a list of shares that I want to keep my eye on as possible purchases for when the time comes to replace any of our current holdings.

The current watchlist looks like this:

Company Market cap (pounds) Price (pence) Forward P/E Forward dividend
Daisy Group 340 million 126 9.8 2.4%
GKN 5.0 billion 303 11.2 2.6%
Ricardo 211 million 404 12.2 3.4%
Trinity Mirror 288 million 113 3.9 0%
TUI Travel 3.8 billion 341 11.9 3.8%
Unilever 34 billion 2,667 18.5 3.3%
United Utilities 5.0 billion 735 17.1 4.8%
WS Atkins 870 million 875 10.9 3.7%

The first thing to notice is that all of the watchlist members are up since we last looked in January, some quite impressively.

It really has been a buyer's market over the past year, and that's a sobering thought, really. Though the portfolio did well in its first year, there were a lot of good shares to choose from, and the real test will come when the pickings aren't quite so rich.

I come from a communications background, so I've always liked small telecoms companies. And Daisy Group has done exceptionally well -- the price is up a very nice 38%. Ruing past opportunities is not something I'll be doing here, but Daisy can certainly stay on the list.

Time for some pruning
But I'm going to get rid of our two engineering consultancy firms, WS Atkins and Ricardo. Both still look reasonably valued, but I prefer my exposure to such an out-of-favour sector to be more direct.

BAE Systems is already in the portfolio and doing well, and in aero- and car-components maker GKN, I think we have an attractive enough alternative to keep us going for now.

I'm also dumping Trinity Mirror -- not because I think the fundamentals aren't cheap, but because I don't really understand how to value the publisher.

And, as one of my key rules is "don't buy something you don't understand,"
out it goes. It might prove to be a super bargain, but it's one for someone else.

In with the new
I'm definitely not one for "diversification for its own sake," but I do think it's an important factor for a portfolio, and for me, there are two key sectors missing -- utilities and banks. Utility companies provide very steady income, and banks, well, they're a big part of the economy.

We already have United Utilities on the watchlist, and I'm adding SSE  (LSE: SSE  ) , too.

SSE has a very nice 5.8% dividend yield forecast, and it's on a forward P/E of 13, which is modest for the sector -- in fact, if there was an empty slot in the portfolio now, SSE would be a strong candidate.

I'm also adding Barclays  (LSE: BARC  ) and Lloyds Banking (LSE: LLOY  ) .

Barclays has been through some torrid times, but looks to have shaken out a lot of the rotten wood. And Lloyds, well, if we're looking at banks, it could pay to have one of the two bailed-out ones on board -- and the forthcoming TSB split should add some interest.

I'm also going to add Halfords to the list, because I think there's a decent chance of the retailer becoming a turnaround candidate in due course -- and I just kind of like the company!

The new list
So, here's what the new watchlist looks like:

Company Market cap (pounds) Price (pence) Forward P/E Forward dividend
Barclays 39.2 billion 302 8.6 2.4%
Daisy Group 340 million 126 9.8 2.4%
GKN 5.0 billion 303 11.2 2.6%
Halfords 628 million 312 13.5 4.8%
Lloyds Banking 43.5 billion 61 13.4 0.3%
SSE 14.5 billion 1,516 12.9 5.8%
TUI Travel 3.8 billion 341 11.9 3.8%
Unilever 34 billion 2,667 18.5 3.3%
United Utilities 5.0 billion 735 17.1 4.8%

Finally, my idea of the kind of shares that should make up the core of a beginner's portfolio is the same as my choice for an ISA, or a retirement portfolio -- or, in fact, any portfolio.

I'd start with good strong companies that should stand the test of time and potentially reward you for decades.

Not surprisingly, the Fool's top analysts think similarly, and they have put together a special report detailing five blue chip shares that I think would be ideal for anyone at the start of their investing career.

But this report will be available for a limited period only, so click here today to get your hands on these great ideas that could start you on the road to long-term riches.

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Thursday, June 20, 2013

Top 5 Defensive Stocks To Buy For 2014

LONDON -- It's been called the Great Rotation, the switching of investors' appetite from government bonds into equities.

Investors have been losing faith in the safety of bonds, as quantitative easing has pushed interest rates to unprecedented lows and stoked fears of future inflation. At the same time, the newly minted money has found a home in equities, especially since Mario Draghi reduced tail risk by saying the European Central Bank would do whatever it took to save the euro.

A significant feature is the preference of investors for shares in defensive sectors that are paying decent yields. They enable shareholders to enjoy the income and relative safety associated with bonds in more normal times.

That's chased the price of such stocks to exceptional highs. Fortunately, the growth opportunities for defensive sectors in emerging markets mean investors don't need to be unduly concerned about valuations.

Top 5 Defensive Stocks To Buy For 2014: 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.

Advisors' Opinion:
  • [By Hilary Kramer]

    3SBio (NASDAQ:SSRX) is based in China, so it has suffered from the uncertainties that have hit the stock market there, but it’s a solid company that should achieve strong growth for years to come. The majority of sales come from two strong products, EPIAO and TPIAO, which have both benefited from improved regulations and access in China. 3SBio should increase revenues in excess of 20% over the next two years, but the stock is attractively valued at only 12 times the 2012 estimate of 95 cents a share. SSRX is an attractive buy at current prices.

Top 5 Defensive Stocks To Buy For 2014: Paradigm Gold Ltd (PDM.AX)

Paradigm Metals Limited engages in the exploration of mineral resource properties primarily in New South Wales and Queensland, Australia. It primarily explores for copper, gold, silver, tungsten, magnetite, lead, and zinc ores. The company�s key projects include the Frogmore project located near Boorowa; and the Yellow Mountain gold project located to the north-northwest of Condobolin, central New South Wales. It is also involved in exploring for copper-gold deposits and rare earth elements in the Cloncurry belt of northwest Queensland, as well as holds interests in the Kangiara project located to the north of the township of Yass, New South Wales. The company, formerly known as Paradigm Gold Limited and changed its name to Paradigm Metals Limited in May 2007. Paradigm Metals Limited is based in West Perth, Australia.

Top 10 Valued Companies To Own For 2014: Basicnet(BCNT.MI)

BasicNet S.p.A., together with its subsidiaries, engages in the trademark license management in the branded casual and leisurewear, sportswear, footwear, and accessories sector. The company?s brand portfolio comprises Kappa, Robe di Kappa, K-Way, Superga, AnziBesson, Lanzera, and Jesus Jeans. It also operates and manages various franchised retail outlets, as well as distributes of its products through a network of independent licensees companies worldwide. In addition, the company is involved in the operational management of the Basic Village property complex in Turin. BasicNet S.p.A. is based in Torino, Italy.

Top 5 Defensive Stocks To Buy For 2014: Taylor Wimpey(TW.L)

Taylor Wimpey plc operates as a homebuilding company primarily in the United Kingdom and Spain. Its product range includes high-rise condominiums, single family homes, townhomes, full service country club communities, apartments, and five bedroom houses. The company offers its products under Taylor Wimpey, George Wimpey, and Bryant Homes brands in the United Kingdom and Spain. Taylor Wimpey plc manages a portfolio of approximately 170,000 land plots across the United Kingdom and Spain. The company was founded in 1880 and is headquartered in High Wycombe, the United Kingdom.

Top 5 Defensive Stocks To Buy For 2014: M Health Ltd(MHL.AX)

Orca Energy Limited engages in the exploration and evaluation of minerals, oil and gas, and uranium opportunities in Australia and Kyrgyzstan. The company holds a 22.5% interest in the East Kokmoinok Uranium license in the Kyrgyz Republic; and 100% interest in three petroleum licenses covering an area of approximately 6,000 square kilometers located in the Kyrgyz Republic. It also holds licenses in the onshore Cooper Basin, South Australia. The company was formerly known as Monitor Energy Limited and changed its name Orca Energy Limited in August 2011. Orca Energy Limited was incorporated in 1985 and is based in West Perth, Australia.

Wednesday, June 19, 2013

Hot Defense Stocks To Buy Right Now

After a slow start to the week Monday, Department of Defense contracts are rolling out with increasing speed as the week progresses. Worth�a combined $621 million,�13 contracts were awarded Tuesday and 25 more on Wednesday.

Notable winners (among publicly traded companies) included:

Alliant Techsystems (NYSE: ATK  ) , which was awarded a maximum $31.4 million firm-fixed-price contract modification extending the period for its providing logistic support services for Iraqi Air Force Cessna 208s through April 2014. Northrop Grumman (NYSE: NOC  ) , which won a $23 million firm-fixed-price delivery order against a previously issued basic order agreement to supply "software sustainment support" for U.S. Navy E-2D Advanced Hawkeye airborne early warning aircraft. Work on this contract is expected to be complete by Oct. 2014.� Caterpillar (NYSE: CAT  ) �was awarded $19.8 million as a modification to a previously awarded firm-fixed-price contract to attach machine-powered mowing systems to U.S. Army Caterpillar 966H wheel loaders.�This contract brings the cumulative face value of Caterpillar's underlying contract up to $184.7 million in total.
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Hot Defense Stocks To Buy Right Now: Metabolix Inc.(MBLX)

Metabolix, Inc., a bioscience company, develops and commercializes technologies for the production of polymers and chemicals in plants and in microbes. It offers a proprietary microbial fermentation system to produce a family of polymers known as polyhydroxyalkanoates under the Mirel brand. Mirel holds biodegradability characteristics; and would be used in a range of commercial applications, including products used in agriculture and horticulture, compost and organic waste diversion bags, marine and aquatic applications, consumer products, business equipment and durable goods, and general packaging materials. The company also develops a proprietary platform technology for co-producing plastics, chemicals, and energy from crops, such as switchgrass, oilseeds, and sugarcane. It has a strategic alliance with ADM Polymer Corporation. The company was founded in 1992 and is based in Cambridge, Massachusetts.

Hot Defense Stocks To Buy Right Now: Ryder System Inc.(R)

Ryder System, Inc. provides transportation and supply chain management solutions. It operates in three segments: Fleet Management Solutions (FMS), Supply Chain Solutions (SCS), and Dedicated Contract Carriage (DCC). The FMS segment offers leasing, contract maintenance, contract-related maintenance, and commercial rental of trucks, tractors, and trailers primarily in the United States, Canada, and the United Kingdom. It also offers fleet support services, such as fuel, insurance, safety, administration, environmental management, and information technology services. In addition, this segment sells its used vehicles through 55 company owned retail sales centers, as well as through its Web site, Usedtrucks.Ryder.com. Its customers include small businesses and enterprises operating in transportation, grocery, lumber and wood products, food service, and home furnishings industries. The SCS segment provides supply chain consulting solutions in North America and Asia. It offers di stribution management, transportation management, and professional services, as well as various support services, such as information technology and engineering solutions. This segment primarily serves automotive, electronics, high-tech, telecommunications, industrial, consumer goods, consumer packaged goods, paper and paper products, office equipment, food and beverage, and general retail industries. The DCC segment offers vehicles and drivers as part of a transportation solution in the United States. It combines the equipment, maintenance, and administrative services of a service lease with drivers and additional services, such as routing and scheduling, fleet sizing, safety, regulatory compliance, risk management, technology and communication systems support, and other technical support. This segment serves energy and utility, metals and mining, retail, construction, healthcare products, and food and beverage industries. The company was founded in 1933 and is based in Mia mi, Florida.

Hot Restaurant Companies To Own For 2014: Union Drilling Inc.(UDRL)

Union Drilling, Inc. provides contract land drilling services and equipment primarily to independent oil and natural gas producers in the United States. It offers drilling rigs, as well as the drilling crews and ancillary equipment to operate its drilling rigs. The company provides drilling services to customers engages in developing oil and natural gas bearing formations. It has principal operations in the Appalachian Basin; the Arkoma Basin in eastern Oklahoma and Arkansas; and the Fort Worth Basin in northern Texas. As of July 6, 2011, Union Drilling owned a fleet of 71 rigs. The company was founded in 1997 and is based in Fort Worth, Texas.

Tuesday, June 18, 2013

Why the Dow Is Up 150 Points

Blue-chip stocks are broadly higher today after government data suggested that inflation was lower than expected last month and that privately owned housing starts continued to head higher. With roughly an hour left in the trading session, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up by 153 points, or 1.01%.

With the Federal Reserve set to decide on the direction of monetary policy this week, investors and analysts are closely watching for any indication about the state of the domestic economy, which could lead the central bank either to leave things as they are or to begin tapering its monetary support. The news today concerned both consumer prices and the pivotal housing sector.

The Bureau of Labor Statistics reported that consumer prices rose last month by 0.1% compared to April. Over the last 12 months, the rate came in at 1.4%. If you exclude fuel and food costs, which are particularly volatile, so-called "core" consumer prices moved up by 0.2% on a sequential basis and 1.7% compared to the same month last year.

Either way you look at it, both figures were below the Fed's target inflation rate of 2% -- though, to be clear, the central bank looks specifically at core consumer prices to inform monetary policy.

Meanwhile, the Department of Commerce data (link opens PDF) showing that privately owned housing starts in May were at a seasonally adjusted annual rate of 914,000. This was 6.8% above the preceding month and 28.6% above the rate in May of 2012. While the year-over-year figure looks particularly attractive, the majority of the increase came from the notoriously volatile multifamily market, which shot up by 69% on a year-over-year basis. The more critical single-family starts growth rate, while still impressive, was 16%.

On the heels of this news, it should be little surprise that many homebuilders are seeing their shares head higher in today's trading. The nation's largest homebuilder, D.R. Horton (NYSE: DHI  ) , is up by 1.1% at the time of writing. At its last earnings announcement, the construction giant reported a 33% uptick in net new-home sales and a 14% increase in average sales price. As the company's chairman noted at the time, "The spring selling season is off to a strong start."

Also headed higher today are shares of Home Depot (NYSE: HD  ) , the nation's largest home-improvement retailer. It largely goes without saying that any improvement in the housing market will trickle out to peripheral operators like Home Depot. In addition, as my colleague Dan Caplinger discussed earlier, the uptick in prices for housing-related items, evidenced by the BLS' report, also fuels revenue expansion for retailers in this space. Home Depot is up 1.5% late in trading.

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Sunday, June 16, 2013

10 Best Quality Stocks For 2014

Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does Sysco (NYSE: SYY  ) fit the bill? Let's take a look at what its recent results tell us about its potential for future gains.

What we're looking for
The graphs you're about to see tell Sysco's story, and we'll be grading the quality of that story in several ways:

Growth: Are profits, margins, and free cash flow all increasing? Valuation: Is share price growing in line with earnings per share? Opportunities: Is return on equity increasing while debt to equity declines? Dividends: Are dividends consistently growing in a sustainable way?

What the numbers tell you
Now, let's take a look at Sysco's key statistics:

10 Best Quality Stocks For 2014: PeppinNini Minerals Ltd(PNN.AX)

Pepinnini Minerals Limited engages in the exploration and development of mineral resource properties in Australia. The company explores for nickel, copper, gold, lead, zinc, uranium, and other mineral commodities. It holds interests in 39 exploration tenements covering approximately 15,795 square kilometers in the Curnamona and Musgrave Provinces of South Australia; the Georgetown, Woolgar Goldfield, and Drummond Basin of north Queensland; and the Robinson Range area of Midwest Western Australia and Salta Province, Argentina. The company also holds an 83 hectare mining lease located in the Woolgar Goldfield of north Queensland. Pepinnini Minerals Limited was incorporated in 2002 and is based in Adelaide South Australia.

10 Best Quality Stocks For 2014: Assisted Living Concepts Inc. New (ALC)

Assisted Living Concepts, Inc., together with its subsidiaries, operates senior living residences in the United States. It offers general services, such as meals, activities, laundry, and housekeeping; support services, including assistance with medication, monitoring health status, co-ordination of transportation, and co-ordination with physician offices; and personal care services, such as dressing, grooming, and bathing. The company also arranges access to additional services from third-party providers, including physical, occupational, and respiratory therapy; home health; hospice; and pharmacy services. As of December 31, 2011, it operated 211 senior living residences comprising 9,325 units in 20 states. Assisted Living Concepts, Inc. was founded in 1994 and is headquartered in Menomonee Falls, Wisconsin.

Best Freight Stocks To Own Right Now: Homeloans Ltd (HOM.AX)

Homeloans Limited engages in the mortgage origination and management of home loans in Australia. The company originates residential mortgages through external mortgage brokers, satellite offices, and internal consultants. It is also involved in the securitization of mortgages through the residential mortgage trust, a special purpose vehicle used to issue residential mortgage backed securities. In addition, the company offers various types of home loans, including variable rate, fixed rate, split, lo doc, bridging, interest only, standard, and line of credit home loans. Further, it provides home loans for building and renovating, refinancing and debt consolidating, and investing activities, as well as for first home buyers and self employed borrowers. Additionally, the company offers various insurance policies comprising home and contents, motor vehicle, landlords, and life insurance policies. Homeloans Limited was founded in 1985 and is based in Sydney, Australia.

10 Best Quality Stocks For 2014: Ingles Markets Incorporated(IMKTA)

Ingles Markets, Incorporated operates a supermarket chain in the southeast United States. Its supermarkets offer food products, including grocery, meat and dairy products, produce, frozen foods, and other perishables; and non-food products, such as fuel, pharmacy products, health and beauty care products, and general merchandise, as well as provides private label items. The company?s stores also offer products and services, such as home meal replacement items, delicatessens, bakeries, floral departments, video rental departments, and greeting cards, as well as a selection of organic, beverage, and health-related items. In addition, it engages in the fluid dairy processing and shopping center rental businesses. The company operates 203 supermarkets, including 74 in Georgia, 69 in North Carolina, 36 in South Carolina, 21 in Tennessee, 2 in Virginia, and 1 in Alabama. As of September 24, 2011, it operated 74 in-store pharmacies and 70 fuel centers; owned and operated 70 shop ping centers of which 58 contain an Ingles supermarket; and owned 94 additional properties that contain a free-standing Ingles store; and owned 13 undeveloped sites. The company was founded in 1963 and is headquartered in Black Mountain, North Carolina.

10 Best Quality Stocks For 2014: Menzies(john)

John Menzies plc, a logistics company, together with its subsidiaries, provides aviation and distribution services primarily in the United Kingdom, continental Europe, and the Americas. The company operates in two segments, Distribution and Aviation. The Distribution segment provides newspaper and magazine wholesale distribution services. This segment also offers marketing services, such as field marketing, category management, retail inventory management, travel, and news and digital distribution, as well as face to face marketing on city streets. The Aviation segment provides cargo and passenger ground handling services. It offers various passenger handling services that include ticketing, check-in service, baggage services, and passenger lounges; and ramp services comprising load control, aircraft towing and pushback, and passenger and baggage transfer, as well as other ramp handling services, such as cabin cleaning, water services, and de-icing. This segment also offer s cargo services, including ramp transfer, load management, import and export handling, warehousing, trucking, and other track and trace services; and cargo forwarding services for export, import, and cross trade. John Menzies plc was founded in 1833 and is headquartered in Edinburgh, the United Kingdom.

10 Best Quality Stocks For 2014: Adams Golf Inc.(ADGF)

Adams Golf, Inc., together with its subsidiaries, designs, assembles, markets, and distributes golf clubs for various skill levels primarily in the United States and internationally. Its products comprise Speedline Fast 12 drivers, Fast 12 LS drivers, Speedline Fast 12 fairway woods, Idea a12 OS irons and hybrids, Idea a12 hybrids, Idea Pro a12 irons and hybrids, Idea Tech V3 irons and hybrids, Redline irons, Idea a7 and a7 OS irons and hybrids, and Speedline 9088 UL drivers. It also develops products under the Yes! Putters, Women's Golf Unlimited, Lady Fairway, and Square 2 brands. In addition, it offers a range of golf bags, hats, and other accessories. The company sells its products to on- and off- course golf shops, sporting goods retailers, and mass merchants, as well as to international distributors. Adams Golf, Inc. was founded in 1987 and is based in Plano, Texas.

10 Best Quality Stocks For 2014: Straco Corporation Limited (S85.SI)

Straco Corporation Limited, together with its subsidiaries, engages in the development and operation of tourism-related facilities in the People�s Republic of China. The company develops and operates cable car facilities, aquatic related facilities, dolphin and sea lion performance aquariums, and a restaurant, as well as engages in the supplementary retail of souvenir; provides management and consulting services, and project management services; and is involved in the production and management of shows, as well as provides creative and artistic content. In addition, it engages in investment holding, leisure, travel, and tour businesses. The company was incorporated in 2002 and is based in Singapore.

10 Best Quality Stocks For 2014: Fisher Communications Inc.(FSCI)

Fisher Communications, Inc., an integrated media company, through its subsidiaries, engages in television and radio broadcasting businesses. The company owns and operates network-affiliated television stations in Washington, Oregon, Idaho, and California, as well as engages in Internet business; and radio stations and managed radio stations in Washington and Montana. It also owns and operates Fisher Plaza, a commercial building that includes a data center designed to enable companies to distribute analog and digital media content through various distribution channels, including broadcast, satellite, cable, Internet, broadband, and other wired and wireless communication systems, as well as houses various companies, including media and communications companies. The company owns and operates 13 full power television stations, 7 low power television stations, and 10 owned and managed radio stations in the Western United States. Its television stations reach 4.2 million househo lds. The company was formerly known as Fisher Companies, Inc. and changed its name in March 2001. Fisher Communications, Inc. was founded in 1910 and is based in Seattle, Washington.

10 Best Quality Stocks For 2014: Oroco Resource Corp (OCO.V)

Oroco Resource Corp., an exploration stage company, engages in acquiring, exploring, evaluating, and developing mineral resource properties in Mexico. It explores for gold, silver, zinc, and lead. The company primarily focuses on the Cerro Prieto project that consists of the San Felix, San Francisco, Cerro Prieto North, Argonauta 6, Elba, Huerto de Oro, and Reyna de Plata mineral concessions in northern Sonora State, Mexico. Oroco Resource Corp. was founded in 2006 and is headquartered in Vancouver, Canada.

10 Best Quality Stocks For 2014: Loral Space and Communications Inc.(LORL)

Loral Space & Communications Inc. operates as a satellite communications company. The company?s Satellite Manufacturing segment designs and manufactures satellites, space systems, and components used for fixed satellite services, direct-to-home (DTH) broadcasting, mobile satellite services, broadband data distribution, wireless telephony, digital radio, digital mobile broadcasting, military communications, weather monitoring, and air traffic management applications in commercial and government sectors. Loral Space & Communications Inc.?s Satellite Services segment provides broadcast, enterprise, and consulting services. This segment owns and leases a satellite fleet that provides high-bandwidth services to broadcasters, cable networks, and DTH service providers. It also offers satellite transmission services for the broadcast of news, sports, and live events coverage enabling broadcasters to conduct on-the-scene transmissions. In addition, this segment operates very smal l aperture terminal (VSAT) networks in North America, and manages various VSAT terminals at customer sites, as well as provides the installation and maintenance of the end user terminal, the VSAT hub, and satellite capacity services. Further, it offers Internet protocol-based terrestrial extension services; Ka-band two-way broadband Internet services; satellite capacity and end-to-end services for data and voice transmission to telecommunications carriers; fixed satellite services to the United States and Canadian governments; and satellite consulting services. The company also owns and operates an X-band satellite, which provides X-band communications services to government users. As of December 31, 2011, it had 12 in-orbit satellites and 2 satellites under construction. The company operates in the United States, Canada, Europe, the Middle East, Africa, Asia, Australia, Latin America, and Caribbean. Loral Space & Communications Inc. was founded in 1996 and is headquartered in New York, New York.

Saturday, June 15, 2013

The Next Battle in Apple and Samsung's Patent War

Before the dust has even settled on the last battle between Apple (NASDAQ: AAPL  ) and Samsung, there's a clear indication where the next dispute will likely arise. Last week, Apple was granted a patent on certain uses of near field communication that would allow Apple devices to sync by simply tapping two enabled devices together. If that functionality sounds familiar, that's because Samsung devices already have it, built on Google's Android Beam technology.

In the video below, Fool.com contributor Doug Ehrman discusses the likelihood of more patent litigation between the two companies and some of the specifics of the next patent in question.

There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

The Next-Gen Reboot That Could Carry Electronic Arts Stock

Electronic Arts (NASDAQ: EA  ) was in a sharing mood this week. The company unveiled its entire next-generation game lineup at the E3 industry expo, giving gamers and investors a detailed look at its new slate of titles.

We learned that EA has a few big games in the works, including:

From EA Sports: UFC, FIFA 14, Madden NFL 25, and NBA Live. From EA Games: Battlefield 4, Deadspace 3, and Need for Speed Rivals. On Mobile: Plants vs. Zombies 2, Ultima Forever, and Fightback.

Fishing for a hit
While the E3 previews showed off some polished game development, this list is notable for how short it is. That's deliberate; EA has decided to focus efforts on a small crop of games this year. It plans to release just 11 major titles in 2013, as compared with the 36 it put out in 2011.

That will allow EA to focus its development and marketing resources, but it also raises the stakes for each of these games, since a flop in any one could swamp the company's results. FIFA 13, for example, was responsible for a whopping 17% of the company's revenue last year.

The video game business has gotten more "hit" driven as sales have shrunk. Activision Blizzard's (NASDAQ: ATVI  ) top four games, for example, accounted for 83% of its revenue last year -- and almost every penny of its operating income. Activision says that despite the 21% decline in sales for the industry as a whole in 2012, the top five titles actually eked out a 1% gain.

Time for battle
EA's challenge this year will be to break into that top tier. Its best chance there is probably Battlefield 4, which is set to challenge Activision's Call of Duty franchise in a head-to-head matchup this fall. Activision is taking that franchise in an entirely new direction with Ghosts, so the door might be open for EA to win over gamers. And that might finally help the company turn the sales tide that it's been losing badly to Activision lately.

ATVI Revenue TTM Chart

ATVI Revenue TTM data by YCharts.

Regardless of which company wins this round, though, both will have to ramp up marketing spending in support of their relatively few launches. They don't have a choice, even If it means lower profits this year. No game publisher can afford to be left behind as the industry moves to the next-generation consoles.

Game on
While Activision and Microsoft have been taking the headlines when it comes to console gaming, investors following the gaming sector would do well to also keep tabs on Electronic Arts. We can help. 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.

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More Expert Advice from The Motley Fool
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Wednesday, June 12, 2013

HP Shines While Dow Slumps

Yesterday's jitters have carried through to today's market session. Investors aren't getting a break from the Dow Jones Industrial Average's (DJINDICES: ^DJI  ) slump this week, as the blue-chip index has lost 86 points as of 2:25 p.m. EDT. Surprisingly, few of the Dow's member stocks have moved far in either direction, but with the significant majority of Dow stocks in the red, the index as a whole is tilting down.

Wall Street continues to fret about stimulus in the U.S. and in Japan, and questions about easing won't likely be answered soon. Let's look at how the biggest movers today are handling the Dow's downbeat session.

HP breaks out of the red
Hewlett-Packard (NYSE: HPQ  ) ranks at the top of the index among a few members holding their ground in the green. The volatile stock has jumped 3.7% so far today after company CEO Meg Whitman told CNBC earlier today that the company's turnaround program is proceeding ahead of schedule. While Whitman admitted that her company still has far to go before it can dig itself out of its hole, she also said that revenue growth is possible at HP this year.

HP has expanded into data analytics and other growth areas recently as it looks to branch out from its core PC business. With the PC market under siege, investors have to hope that the firm's expansion away from that industry pays off -- otherwise, Whitman's cautious optimism may be delusion.

Fellow tech stock IBM (NYSE: IBM  ) isn't having such a good day: Big Blue's shares have fallen 1.5% to rank among the top Dow laggards. The company is looking to cut costs by cutting employees, particularly after a worse-than-expected first quarter sunk the firm's stock by nearly 8% in one day back in April. The firm is planning to spend up to $1 billion on the cuts, which began today and could encompass up to 8,000 workers around the globe.

Energy stocks aren't much better off today. Two of Big Oil's top players are mired in the red: Shares of Chevron (NYSE: CVX  ) and ExxonMobil (NYSE: XOM  ) have fallen 1.2% and 0.7%, respectively. Chevron made waves today after the firm announced that it will sell its rights to two oil blocks off the Nigerian coast. Chevron hasn't begun production at either of the blocks, of which it is 40% owner and which are estimated to hold a combined 200 million barrels of oil. The company has performed well in Nigeria in recent years, producing some 238,000 barrels of crude oil daily in 2012.

Exxon, meanwhile, is headed to the Arctic. The company is prepared to set up an Arctic Research Center with Russian oil giant Rosneft near the Kara Sea in Russia. The joint establishment will allow Exxon and Rosneft to study environmental safety and protection while also allowing both firms to research improvements in efficiency and effectiveness in technology design. It'll cost around $200 million for Exxon, but considering that interest in Arctic energy-exploration remains high, it looks like money well spent for the company's future in deepwater drilling.

Is HP's turnaround worth betting on?
HP is rapidly shifting its strategy under Whitman's leadership. But does this make HP one of the least-appreciated turnaround stories on the market, or is this a minor detour on its road to irrelevance? The Motley Fool's technology analyst details exactly what investors need to know about HP in our new premium research report. Just click here now to get your copy today.