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Symbol: IMAX Security: IMAX Corporation Related Stocks/Topics: Markets\|CNK\|JPM\|DLB Title: RealD's 'Avatar' IPO Type: News Publication: SeekingAlpha Publication Author: Unknown Date: 2010-07-22 12:47:00 Article: [Bill Simpson](http://www.tradingipos.com/subscribe.php) The following piece was done pre-IPO for [TradingIPOs subscribers](http://www.tradingipos.com/subscribe.php). RLD priced strongly at $16 and traded in a $19-$21 range first day. While I liked this deal mid-teens, I am not a buyer at all $20+. RealD ([RLD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RLD&selected=RLD)) ) plans on offering 12.4 million shares (assuming over-allotments) at a range of $13-$15. Insiders will be selling 6.4 million shares in the deal. JP Morgan ([JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM)) ) and Piper Jaffray ([PJC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PJC&selected=PJC)) ) are leading the deal, William Blain, Weisel (TWPG), and BMO co-managing. Post-IPO, RLD will have 52.5 million shares outstanding for a market cap of $735 million on a pricing of $14. Note that sharecount includes warrants/options given to movie theater chains as incentives to sell-in RLD's 3-D technology. These options are included as an expense item to fair value on the earnings statement. However as they will eventually be converted to shares it is best to remove the expense item and include those in the sharecount instead. IPO proceeds will be used to repay debt and for general corporate purposes.CEO and Chairman of the Board Michael v. Lewis will own 14% of RLD post-IPO. President Joshua Greer will also own 14% of RLD post-IPO.From the [prospectus](http://www.sec.gov/Archives/edgar/data/1327471/000104746910006369/a2198608zs-1a.htm) :This is an 'Avatar' IPO essentially. Avatar was such a huge 3-D success, film companies all over the world are now planning on filming and/or converting their big releases into 3-D...and RLD is far and away the worldwide leader in movie theater 3-D technology.' 'The Last Airbender' was shot in 2-D with no plans on a 3-D release. Post-Avatar, 'The Last Airbender' was converted into 3-D and grossed $70 million total over the July 4th holiday weekend. Only a percentage of that take was from the 3-D screens, still the trend post-Avatar is to now release a 3-D version of a 'big release' movie. The next 'Spiderman' installment for example is now expected to be in 3-D.Note that there is a big difference from filming 3-D (as Avatar was filmed) and filming in 2-D and converting in post-production. Either way though, the end result is shown in theaters on RLD's 3-D screens. Our 2nd 'story stock' IPO of the summer here, this one has better financials than [[TSLA]] at least; although it would be quite difficult to have worse financials than TSLA!RLD licenses their 'RealD Cinema Systems' to theater chains. In addition, RLD sells their 3-D formant, eyewear and display/gaming technologies to consumer electronics manufacturers and contend providers for 3D viewing in high-def TV's, laptops and displays.In addition RLD's 3D technology has been used in applications such as piloting the Mars Rover, military jet displays and medical procedures. *Growth has been ridiculously good over the past few years, reaching critical mass in the 12 months ending 3/31/10. As of 3/31/10, RLD's 3-D technology had 5,321 screens, up from 2,108 on 3/31/09. That is a year over year screen growth of 152%. With the sector trends noted above and this sort of year over year growth and clean balance sheet, this is a recommend in range right here. RLD is not just winning the movie 3-D technology battle, they have won the war.Main competitor is IMAX ([IMAX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IMAX&selected=IMAX)) ). IMAX grew to 438 screens in 3/31/10 from 371 in 3/31/09. By all indications, the IMAX experience is more impressive than RLD. RLD has won on installation cost however as retrofitting existing theater's for RLD 3-D is far less expensive than an IMAX installation. RLD has won on cost. Note that growth continues. As of 6/30/10, RLD's systems were on 5,966 screens a sequential quarterly rate growth of 12%. RLD screens are in 51 countries with 64% being in the US. Growth* - From 2005 through 2009, 27 3D motion pictures were released. In 2010 alone, 23 3D motion pictures will be released with 33 more expected in 2011.Competitors include Dolby ([DLB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DLB&selected=DLB)) ), Imax Masterimage and Xpand. As noted above, RLD has won the movie theater 3D war but the results remains to be seen in consumer electronics. Financials$1 per share net cash post-IPO.Fiscal year ends 3/31. FY '10 ended 3/31/10.Product revenues (eyewear) accounted for approximately 55% of revenues, licensing per movie revenues 45%.Gross margins are negatively impacted by the 3D eyewear. Currently RLD sees a negative net margin on eyewear. in Fy '10 RLD began an eyewear recycling program they hope will lower their costs and push eyewear into positive margin territory. Currently this is an issue however and longer term profitability will in part be determined by RLD's ability to gain some margin traction on their eyewear. Licensing margins are strong as the costs there are minimal. This part of the revenue stream (55% in FY '10) is similar to the Dolby business model. The technology is already there so the cost to RLD is minimal. *Note that GAAP earnings for FY '10 and FY '11 have been/and will be skewed by theater stock options. A few years back RLD offered, nearly free, 3.6 million stock options total to AMC, Cinemark ([CNK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CNK&selected=CNK)) ) and Regal ([RGC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RGC&selected=RGC)) ) as incentive to grow the installed RLD 3D screen base. Those options fluctuate with the implied price of RLD's stock worth. These options will be exercised once screen targets are achieved, so they belong in the sharecount and not on the earnings statement. Because the implied value of RLD's worth grew so much in FY '10, these options accounted for a GAAP drag of $39 million on net revenues. This was not a real cost and gets folded out and those options get put into the sharecount instead.The above could be a potential drag on the stock price as those theater chain stock options make it appear as if RLD is much less successful on the bottom line than they really are. To date, all the mainstream press articles on RLD note the losses without noting they come from these external stock options.Two issues, one real and one a GAAP accounting rule. The real issue is RLD's need to improve margins on their eyewear. The licensing model is raking in the cash on top/bottom line, the eyewear is currently killing margins.FY '10 (ended 3/31/10) - $189 million in revenues, a massive increase from $45 million in FY '09. Drivers here include 1) an increase in RLD 3D screens, 2) more 3D film releases and 3) the massive success of Avatar. Gross margins were 26%. Again the negative margins on the 3D eyewear are hurting overall gross margins. Operating expenses have grown far slower than overall revenues, a good sign. Operating expense margin was 23%, putting operating margins at a slim 3%. Plugging in taxes puts net margins at 2%. Earnings per share of $0.07. FY '11(ending 3/31/11) - Very difficult to forecast. By the end of the fiscal year, RLD 3D screens should grow by 50%. Factor in the increased slate of 3D releases and it should be another solid revenue growth year. The question mark however is 'The Avatar Factor'. Avatar accounted for a huge chunk of FY '10 licensing revenues, plus eyewear revenues per attendee. It is doubtful there will be another Avatar like performer in FY '11. Toy Story/Shrek were the drivers in the June quarter, each becoming a big hit. Harry Potter should drive revenues in the December quarter.I would estimate FY '11 revenues in the $260 million range, approximately a 36% increase from FY '10. As usual, I'd rather be a bit conservative here. FY '10 gross margins were impacted by eyewear recycling start-up costs. Folding those out and including some success in that program in FY '11 should push gross margins to 30%. Operating expense ratio should dip to the 20% area, putting operating margins at 10%. Plugging in taxes puts net margins at 6 1/2%. Earnings per share of $0.32. On a pricing of $14, RLD would trade 44 X's FY '11 earnings.Again, as noted above, GAAP earnings will be negatively impacted by theater chain stock options. I folded those out and placed those options in the sharecount. Conclusion** - Trends here are about as strong as they come. RLD's 3D technology is the standard and by 2011 they should be in over 10,000 screens. In addition, the major film companies are planning approximately 30 3D releases annually the next couple of years. At a pace of over 1 per every two weeks, it should keep those screens lit. The question mark here is whether RLD can convert this swift growth into bottom line growth/profits. Thus far that has not really happened due to negative eyewear margins, and the risk here is that it never will. Growth and the trends are so strong here though that this is an easy recommend in range.See also [ADDvantage Highlights the Need to Define Investment Type](http://seekingalpha.com/article/220247-addvantage-highlights-the-need-to-define-investment-type?source=nasdaq) on seekingalpha.com Stock Price 4 days before: 12.5674 Stock Price 2 days before: 13.8143 Stock Price 1 day before: 13.8143 Stock Price at release: 13.8143 Risk-Free Rate at release: 0.0015	14.0272
Symbol: NR Security: Newpark Resources, Inc. Related Stocks/Topics: SR\|Markets Title: Commodity Trends: Funds flow up in commodities Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-07-26 02:41:00 Article: Fund flows into commodity markets continued to rise in the first half of 2010 despite the difficult six months but analysts are increasingly warning of a slowdown as weak returns dent investor confidence.Money managers have piled into commodities in recent years in search of stronger returns and protection away from the troubles of equity and bond markets during the financial crisis. But for many, the promise of diversification, hedges against inflation and any kind of correlation between rising prices and rising returns has started to ring hollow POINTERS Synthetic rubber imports surge Imports of synthetic rubber rose by 51.6 per cent to 25,885 tonnes in April on strong demand mainly by the tyre industry, theRubber Board said. Synthetic rubber imports stood at 17,065 tonnes in the corresponding period last fiscal, the board said.The production of synthetic rubber in the country increased marginally to 8,180 tonnes in April this year against 8,169 tonnes in April, 2009. Decision on Sugar Import duty An Empowered Group of Ministers on Food is scheduled to meet on July 26 to consider imposing import duty on refined sugar and the sale of an additional 30 lakh tonnes of wheat and rice through ration shops.The EGoM, headed by Finance Minister Pranab Mukherjee, will consider the Food Ministry's proposal to impose 15-20 per cent import duty on refined (white) sugar, sources said MCX launches six agri commodities Leading commodity bourse MCX launched futures trading contracts in six agricultural commodities, which will expire between September and December. The futures contracts in wheat, maize, soyabean, guar seed, turmeric and chana dal are available for trading from today, the company circular said. The turmeric contract will mature in September, soyabean and maize (feed) in October, guar seed and chana dal in November and wheat contract will expire in December, it said. The company also said the futures contract in non-agri item -- mild steel ingot/billet will expire in October Asian stocks up for a third week Asian stocks rose for a third week as commodity prices gained and as U.S. companies reported or raised profit forecasts, boosting confidence in the strength of global economic growth.BHP Billiton Ltd., the world's largest mining company, climbed 4 percent this week in Sydney. Hon Hai Precision Industry Co., the world's largest electronics contract manufacturer, gained 3.7 percent in Taipei after Microsoft Corp. reported positive earnings in the U.S. China Resources Land Ltd., a state-controlled developer, soared 6.4 percent in Hong Kong on speculation China may ease tightening measures Pranab Mukherjee appeals for GST Finance minister Pranab Mukherjee made an impassioned appeal to India Inc to convince political parties and state governments to back the rollout of goods and services tax ([GST](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GST&selected=GST)) ) from April 1 next year, a day after offering a sweetened deal to states to push through the key indirect tax reform."I seek your support. This tax is a win-win," Mr Mukherjee said at the national executive meeting of industry body Ficci. "I request you to convince the states and political parties to arrive at a consensus on the constitutional amendments needed to implement this major national reform," he said. Constitutional amendments require the support of two-thirds of Parliament members present at the voting. It also needs to be ratified by at least 15 state assemblies for which support of all parties is needed. Wal-Mart ready to open 100s of stores in India Wal-Mart, the world's top retailer, will be ready to open hundreds of stores in India if the country opens up the sector to foreign direct investment, the chief of its Indian joint venture said.India's $450 billion retail sector is largely closed to foreign firms and favours small mom-and-pop stores, which provide livelihoods for hundreds of thousands and serve a market of more than 1 billion."If the laws of the country change to opening of FDI in retailing, we could open hundreds of stores," Bharti Wal-Mart Managing Director and Chief Executive Raj Jain said on Thursday. Gold Gold prices have failed to re-attain the all-time high of 1266.50 attained in June 21 although financial uncertainties in many nations have provided firm support the yellow metal. Last week, gold weakened as European regulators said that seven out of 91 banks failed a financial stress test, eroding the value of Euro against dollar thus reducing the demand for gold as an alternative against US currency. It looks likely that the relationship between gold and dollar is being re-established.Investors were eagerly awaiting the bank stress tests even as global equities rallied last week. Spot gold traded at $1194 levels while US Aug falls to $1,187 from $1194 levels. Uncertain financial outlook continues to support gold but possibilities of sliding to $1,180 cannot be ruled out. SPDR Gold Trust holdings fell to 1302.46 from all time high of 1320.436 tonnes attained on June 29.Spot silver has risen to $18.12 levels rising 1.8% this week on rising equities and industrial demand. MCX Aug Gold has fallen into bearish territory and closed the week at 18255. Crude Oil Crude oil prices have fallen this week on speculation that tropical storm Brownie won't be strong enough to damage production platform in Gulf of Mexico although Oil rallied initially in the week on rising equities which signaled economic growth will accelerate. Nymex Crude September rose to $78.98 but failed to attain the $80 mark. Nymex September rose 3.4% this week while Brent Crude September at ICE Futures Europe Exchange fell towards weekend to $77.45. The tropical storm Brownie has idled 28% of crude oil production capacity in Gulf of Mexico and 10% of the natural gas output.Going ahead crude oil could correct on hopes of climbing US inventories. US Crude oil has support at $74 while resistance is seen at $81 levels. MCX Aug Crude made handsome gains at 3721 and is well-entrenched in positive territory. Base Metals Copper prices had a bullish trend last week and hit a 2-month high as US manufacturers were optimistic of economic growth. Copper prices rallied up 6% with Nymex Sept Copper rising to $3.1645 the highest level since May 14. Copper prices peaked to $3.50 a pound but fell back to below $3 levels on financial uncertainties. Shrinking inventories in LME and Shanghai provided firm support to prices. LME stocks fell for 22nd week and global equities rally provided firm support. Copper has fallen 4.8% this year for a variety of reasons including cooling down of China economy, US financial crisis, Eurozone debt problems. LME Copper rose to $7029. Among other metals nickel, tin, lead climbed up while Aluminium and Zinc fell towards weekend.MCX Aug Copper is bullish rising to 331 levels last week. China's crackdown on property deals could lead to easing of metals demand although its impact is not immediately visible on rising equities and supportive factors. Soybeans Globally, soybean prices rose last week as China demand rose resulting in larger export shipments from USA and Brail. US exporters sold 175,500 metric tonnes to China for delivery in September according to US Department of Agriculture. Brazil's soybean exports is expected to rise 5% this year to 30 mn tonnes as China demand increases.In Indian markets, both soyoil and soybean turned bullish on strong demand, global cues and poor monsoon progress in Central India. In the week ahead, sowing progress resulting from rainfall availability will impact prices. Oil millers stepped up buying fearing further rise in edible oil prices, drop in edible oil imports have been supportive. Edible oil demand rises in monsoon months ahead of August and September festival season.The country produced 24.93 million tonnes of oilseeds in 2009/10, down a tenth compared to 27.72 million tonnes harvested a year ago, Ministry of Agriculture said. Soybean acreage as on July 19 was 4.78 mn ha from 4.9 mn ha. Madhya Pradesh sowing has fallen 3.8% on weak rains. NCDEX Aug Soybean rose form Rs 2049 levels to 2077 after hitting contract high of 2102 mid week. August soyoil rose from Rs 470 to Rs 485 levels before settling at 482.There is strong possibility of profit taking although fundamentals continue to be supportive of soy complex. NCDEX Soybean has support at 2050 levels while Aug Soyoil has support at 475 levels in a bullish market. Rubber India rubber prices continued to hover around Rs 180 levels on weak trends in NMCE futures while demand weakness was evident in spot markets due to higher prices. NMCE Aug futures rose from Rs 174 levels to Rs 176.99 while September contract remained stable at Rs 163.90 levels.The rise in natural rubber ([NR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NR&selected=NR)) ) price has reflected in a sharp increase in consumption of synthetic rubber ([SR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SR&selected=SR)) ) in India. According to the latest trend in the consumption pattern, the current ratio of NR-SR consumption of 73:27 is likely to change to 70:30 in favour of SR by the end of the current financial year.India rejected the industry's demand for a cut on natural rubber imports from 20% to 7.5%, said a statement of Rubber Board of India. A panel, set up on the directives of the Delhi High Court, headed by the Rubber Board Chairman Sajen Peter, has decided to continue present import duty for natural rubber.However, the panel, called for a mechanism to cap the customs duty burden on the consuming industries by levying the duty at a benchmark level, irrespective of global prices.NMCE Rubber futures are expected to trade range bound with Aug contract support at Rs 172 levels while September has support at Rs 160 levels. Pepper NCDEX pepper futures had a bullish ride last week thanks to surge in domestic, overseas demand and tight supplies. NCDEX Aug contract rose from Rs 20,775 levels to Rs 21306 but fell back on profit taking while September contract rose from Rs 20927 to 21647 as farmers awaited further price rice to hold stocks. Pepper demand rises ahead of festival season of August and September. NCDEX most active pepper contract, August Futures rose 10% last week while India pepper exports have fallen 5% at 4650 tonnes, Spices Board data showed.Low carry over stocks and limited supplies globally continue to support pepper futures. Pepper could go for upward correction before sliding. NCDEX Aug has support at Rs 20,200 levels while September has support at Rs 20500 levels in a bullish market. Chana Chana futures were bullish on gains in spot market demand and weaker rains in kharif pulses growing regions in the country. NCDEX Aug Pepper rose from Rs 2367 to 2410 levels before falling back to Rs 2366 on profit taking, ample stocks. Towards weekend millers kept off from buying on higher prices. India's chana production has risen to 7.35 mn tonnes in 2009-10 compared to 7.05 mn tonnes a year ago. NCDEX September contract rose from Rs 2406 to Rs 2423.NCDEX Aug Chana Futures has support at 2300 levels while September has support at Rs 2400 levels. Stock Price 4 days before: 7.81134 Stock Price 2 days before: 7.91846 Stock Price 1 day before: 7.97947 Stock Price at release: 7.97901 Risk-Free Rate at release: 0.0015	7.8025
Symbol: UIS Security: Unisys Corporation Related Stocks/Topics: PEG\|Markets\|IBM\|IT\|HPQ Title: Get Ready to Short this IT Firm Type: News Publication: Melvin Pasternak Publication Author: Unknown Date: 2010-07-26 02:49:00 Article: This could be a tough year for Unisys Corp ([UIS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UIS&selected=UIS)) ) .As a global information technology ([IT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IT&selected=IT)) ) company, Unisys conducts IT outsourcing, systems integration and computer infrastructure maintenance for government agencies, commercial organizations and financial companies worldwide. However, with the evolution of computer server and hardware technologies, demand for Unisys' legacy servers and IT hardware systems has fallen.And since there has been weakness in the overall IT market, many of Unisys' clients have cut their IT outsourcing and purchasing budgets.As a result, Unisys' has seen in a large drop in sales this year. In response, the company has been forced to make cuts to some operations, further impacting sales.Unisys is scheduled to report second-quarter results on Tuesday. The outlook is unfavorable. Analysts expect both revenue and earnings to show declines.Technically, UIS appears to be vulnerable and faces nearby resistance.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) After hitting a low of $2.80 in March 2009, UIS entered a steep uptrend, surging to resistance near $16.40 the following month.As the stock continued its ascent throughout 2009, a major uptrend line formed.In both December 2009 and March 2010, UIS tested resistance near $40. That failure to penetrate resistance set up a potential double top, which the stock completed when it fell below $28.68 support on weak first-quarter results. During its fall, UIS broke the major uptrend line from its April 2009 high.While UIS broke an intermediate downtrend line last Friday, it still faces stiff nearby resistance at current levels. Further resistance is in the mid-$25 range, the area of its mid-May recovery highs. A minor uptrend line drawn from the early July $17.04 low intersects the chart at $21.80.Despite the recent rally, the stock is well below the falling 30-week moving average, which intersects at $30.07. Important support dating back to March 2009 is near $17.The indicators are mixed. [MACD](http://investinganswers.com/term/moving-average-convergence-divergence-macd-851) is on a sell signal. Although the MACD histogram appears to have crested, it remains in negative territory.In December 2009, the major [relative strength index ( ](http://investinganswers.com/term/relative-strength-index-rsi-850) [RSI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RSI&selected=RSI) ) uptrend was broken. It is now in a downtrend and falling. At 45.5, it is below the key 50 juncture, but not deeply oversold.Indicative of the stock's weakness, stochastics appears to have found support in deeply oversold territory. Weak stocks can become and stay oversold for long periods of time. For the past three months, %K has leveled off near 19.8, while %D has remained near 12. Stochastics is currently close to giving a buy signal, but both %K and %D would need to surpass 20 to do so. However (as the dashed circles show) in the past when a buy signal was given, the stock's rallies were muted.In addition to displaying technical vulnerability, Unisys also has a poor fundamental outlook.In late April, the company reported disappointing first-quarter 2010 results that were below analysts' expectations. According to Thomson Reuters, analysts' expected the company to generate revenue of $1.1 billion, as it did in the first quarter of 2009. However, first-quarter 2010 revenue fell -9% to $998 million. Analysts' project second-quarter revenue will fall nearly -10% to $1.0 billion, compared with $1.1billion in the year-ago quarter.As demand for UIS' products and services continues to drop, the outlook for the full 2010 year remains poor. Analysts expect revenue will fall more than -11% to $4.1 billion, compared with $4.6 in the full 2009 year.The earnings forecast is also shaky.In the first-quarter of 2010, Unisys' earnings fell -60% to $0.27 per share, compared with $0.66 in the first-quarter of 2009. In part, negative [currency](http://investinganswers.com/term/currency-120) translation, especially of the Venezuelan bolivar, contributed to the large decline.For the second quarter, analysts expect earnings to fall -47% to $0.53, compared with $1.00 in the year-ago quarter.Three months ago, analysts projected full-year earnings of $2.27. These estimates have since been substantially reduced. Analysts now expect the company's earnings to fall to $1.47. This is at least a -69% drop compared with $4.75 in 2009. In addition, the company is also richly valued, based on its 5-year expected [price/earnings-to-growth ratio ( ](http://investinganswers.com/term/priceearnings-growth-ratio-peg-460) [PEG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PEG&selected=PEG) ) (price/earnings divided by earnings growth rate).Unisys' 5-year [PEG](http://investinganswers.com/term/priceearnings-growth-ratio-peg-460) is 1.9. In comparison, competitor Hewlett-Packard ([HPQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HPQ&selected=HPQ)) ) has a 5-year PEG of 1.0. And International Business Machines ([IBM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IBM&selected=IBM)) ) has a PEG of 1.1. The closer the PEG to 1.0, the better the valuation. Action to Take --> Given that UIS is fundamentally weak and shows technical vulnerability, I would suggest that investors short the stock if it breaks the current minor uptrend line.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither Melvin Pasternak nor StreetAuthority, LLC hold positions in any securities mentioned in this article.-- Dr. Melvin PasternakDr. Melvin Pasternak is one of the most experienced market technicians in the nation and Chief Trading Expert of Double-Digit Trading. Melvin's background includes a nearly 20-year stint teaching at TD Waterhouse, and writing a book on candlestick charting -- 21 Candlesticks Every Trader Should Know -- in 2006. Dr. Pasternak's pedigree includes an MBA from the University of Calgary and a Ph.D. from the University of Wisconsin. Read more... Disclosure: Neither Melvin Pasternak nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/get-ready-short-it-firm-456391) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 21.2525 Stock Price 2 days before: 23.7983 Stock Price 1 day before: 23.8491 Stock Price at release: 23.8427 Risk-Free Rate at release: 0.0015	22.1117
Symbol: UPBD Security: Upbound Group, Inc. Related Stocks/Topics: Markets Title: New Dividend Stock Added to Database (RCII) Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-07-26 04:27:00 Article: We have added shares of Rent-A-Center ([RCII](http://www.dividend.com/dividend-stocks/services/rental-and-leasing-services/rcii-rent-a-center-inc/)) ) to our database of nearly 1600 dividend-paying stocks on news the company has initiated a dividend payout.Rent-A-Center ([RCII](http://www.dividend.com/dividend-stocks/services/rental-and-leasing-services/rcii-rent-a-center-inc/)) ) - this company engages in leasing household durable goods to customers on a rent-to-own basis in the United States. The company operates stores that offer durable products, such as consumer electronics, appliances, computers, and furniture and accessories under flexible rental purchase agreements that allow the customer to obtain ownership of the merchandise at the conclusion of an agreed-upon rental period. As of December 31, 2009, it operated 3,007 company-owned stores in the United States, and in Canada and Puerto Rico. Rent-A-Center, Inc. was founded in 1986 and is headquartered in Plano, Texas. Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0015	0
Symbol: SOHU Security: Sohu.com Limited Related Stocks/Topics: CBOE\|Markets\|ALB\|GILD\|UHS\|SLG\|EPD Title: Opening View: Can the SPX Hold Above 1,100? Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-07-26 07:51:00 Article: The Dow Jones Industrial Average (DJIA) vaulted 3.2% last week, taking out short-term resistance in the 10,350-10,400 region, as well as besting its 200-day moving average. The S&P 500 Index (SPX), meanwhile, toppled psychological resistance at the 1,100 level, but is still staring up at its own 200-day trendline in the 1,115 region. Activity is sluggish in pre-market trading this morning, as Wall Street digests the results from the European banking system stress tests. Heading into the open, futures on the DJIA and the SPX are trading five points and one point above fair value, respectively. Look for the DJIA to struggle near 10,450, which is home to a 50% retracement of the Dow's July low and April high, while the SPX could meet with resistance near 1,105-1,110. Finally, the CBOE Market Volatility Index (VIX) has pulled back to its 200-day moving average near the 23.50 level. The VIX has not closed a session below this trendline since May 3.In equity news, Gilead Sciences Inc. ([GILD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GILD&selected=GILD)) ) announced that it will buy back at least $1 billion in common stock, and fund the purchase by issuing $2.2 billion in convertible senior notes. The company said that it will use the remainder of the senior-note issue for general corporate purposes. The repurchases will be privately negotiated and off-market transactions from buyers of the notes. In merger and acquisition news, Delta Petroleum Corp. ([DPTR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DPTR&selected=DPTR)) ) agreed to sell various non-core assets to Wapiti Oil & Gas for $130 million. The assets include Delta's 31% working interest in the Garden Gulch field of the Piceance Basin in Colorado, as well as assets in Texas, and the firm's stake in Piper Petroleum. The proceeds from the sale will be used to reduce debt.Finally, Enterprise Products Partners ([EPD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPD&selected=EPD)) ) posted a second-quarter net profit of $357.2 million, or 46 cents per unit, as revenue rose 39% to $7.54 billion. The company said that its midstream systems were operating at or near record levels, with natural gas pipeline volumes at a record 12.7 trillion British thermal units per day. Analysts were expecting earnings of 44 cents per share on sales of $7.56 billion. Earnings Preview On the earnings front Sohu.com Inc. ([SOHU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SOHU&selected=SOHU)) ), Lorillard Inc. ([LO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LO&selected=LO)) ), SL Green Realty Corp. ([SLG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLG&selected=SLG)) ), Albemarle Corp. ([ALB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ALB&selected=ALB)) ), and Universal Health Services Inc. ([UHS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UHS&selected=UHS)) ) are scheduled to release their quarterly earnings report today. Keep your browser at [SchaeffersResearch.com](http://www.schaeffersresearch.com/) for more news as it breaks. Economic Calendar On the economic front, new home sales for June will arrive later this morning. Tomorrow, we'll get the Case-Shiller home price index for May and the Conference Board's Consumer confidence Index for July. On Wednesday, the market will be graced with the weekly report on U.S. petroleum supplies, while Thursday offers up weekly initial jobless claims and the Fed's Beige Book. On Friday, we'll get the latest numbers on second-quarter gross domestic product, along with the Chicago Purchasing Managers' Index for July, and a final look at July consumer confidence as measured by Reuters and the University of Michigan. Market Statistics Equity option activity on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) saw 1,123,923 call contracts traded on Friday, compared to 646,922 put contracts. The resultant single-session put/call ratio arrived at 0.58, while the 21-day moving average slipped to 0.63. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100725ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100725ov2.gif)The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher. [Dow, S&P and Nasdaq futures](http://www.schaeffersresearch.com/images/commentary/2010/100725ov3.gif) Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up [here](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=O&CODE=SIRG07D) for free daily delivery, straight to your inbox, before the opening bell. Overseas Trading Overseas trading is mixed this morning, as only four of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a gain of 0.08%. In Asia, regional indexes moved higher, as the uncertainty surrounding the European banking stress tests was finally lifted, though modest doubts about certain lenders remained. Speaking of Europe, regional indexes are mostly lower following news that seven out of the 91 banks receiving stress testing failed. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100725ov4.gif)Currencies and Commodities Crude futures are headed lower this morning, despite a relatively flat session in Asian trading. The front-month contract was last seen lower by 0.85% at $78.31 per barrel. Elsewhere, gold futures remain bound to a tight range this morning, with the front-month contract down $1.40 at $1,186.40 an ounce. Finally, the U.S. dollar is little changed this morning versus its major foreign rivals. Specifically, the U.S. Dollar Index was last seen lower by 0.04% at $82.43. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100725ov5.gif)**Unusual Put and Call Activity:For an explanation of how to use this information, check out our [Education Center](http://www.schaeffersresearch.com/schaeffersu/) topics on [Option Volume](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?ID=220#220) and [Open Interest Configurations](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?id=221) . [Unusual options activity - puts](http://www.schaeffersresearch.com/images/commentary/2010/100725ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100725ov7.gif) [Follow Schaeffer's to the San Francisco MoneyShow Aug. 19 -- 21, 2010! Click here for details, including a list of scheduled presentations and how to register.](http://www.schaeffersresearch.com/edge/road.aspx)** All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 43.2431 Stock Price 2 days before: 44.6128 Stock Price 1 day before: 46.2503 Stock Price at release: 46.3215 Risk-Free Rate at release: 0.0015	46.5319
Symbol: NG Security: NovaGold Resources Inc. Related Stocks/Topics: Markets Title: Natural Gas Daily Technical Outlook Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-07-26 08:27:00 Article: Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) Intraday bias in Natural gas remains neutral for the moment. As noted before, fall from 5.196 is still in favor to continue and break of 4.288 will target a test on 3.81 support first. However, note that break of 4.923 will indicate that fall from 5.196 is finished. More importantly, the three wave corrective structure will in turn suggest that rise from 3.81 is still in progress for 6.108 resistance.In the bigger picture, the corrective structure of the rebound from 3.81 to 5.196 suggests that fall from 6.108 is not finished yet. Break of 3.81 support will confirm this bearish case and revive the case that medium term rise from 2.409 is already finished. In such case, further fall should be seen to retest 2.409 low next. However, break of 5.196 will in turn indicate that medium term rise from 2.409 is still in progress for another high above 6.108 Nymex Natural Gas Continuous Contract 4 Hours ChartNymex Natural Gas Continuous Contract Daily Chart Stock Price 4 days before: 6.40409 Stock Price 2 days before: 6.39419 Stock Price 1 day before: 6.4362 Stock Price at release: 6.43818 Risk-Free Rate at release: 0.0015	6.42743
Symbol: MNKD Security: MannKind Corporation Related Stocks/Topics: Markets\|LLY\|PFE Title: Will MannKind's Afrezza Succeed Where Pfizer's Exubera Failed? Type: News Publication: SeekingAlpha Publication Author: Unknown Date: 2010-07-26 10:08:00 Article: [Rockford Coscia](http://biotechinvestmentparadigm.com/) submits:This December, Afrezza, MannKind's ([MNKD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MNKD&selected=MNKD)) ) inhalable insulin therapy for prandial (meal-time) management of blood glucose in diabetics, faces FDA decision. Afrezza's path to approval is well worn and bloodied, most notably by an approval and subsequent market withdrawal of Pfizer's ([PFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PFE&selected=PFE)) ) Exubera. Other inhalable therapies have also been attempted by such high-powered partnerships as Alkermes/Eli Lilly ([LLY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LLY&selected=LLY)) ) and Aradigm/Novo Nordisk ([NVGN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NVGN&selected=NVGN)) ); all abandoned in the wake of Exubera's withdrawal. Currently Afrezza is the only form of inhaled insulin still under FDA review.With the market failure of Pfizer's Exubera, potential investors in MannKind's endeavor must address why Afrezza will not suffer the same market setbacks assuming a favorable decision by the FDA in December. MannKind has, of course, amassed a number of reasons to convince investors that Afrezza will become a market blockbuster with varying degrees of substance. I wish to address the three biggest reasons I think Afrezza will succeed where Exubera failed: a demonstrated superiority over injectable therapies, increased patient and doctor compliance, and overall cost of the therapy. Afrezza's Superiority Over Conventional Therapies Soon after Pfizer's Exubera was approved, a review found that inhaled insulin at the time, including Exubera, "appears to be as effective, but no better than injected short-acting insulin." The reason for this is likely due to the fact that the insulin contained within Exubera is in its heximeric form.Afrezza, on the other hand, is different. Afrezza's insulin is broken into its monomeric components, resulting in significantly shorter time to peak insulin levels (14 minutes for Afrezza vs. 49 minutes for Exubera). This monomeric formulation is reputed to more closely mimic the natural insulin response of healthy individuals as well as decrease the risk of hypoglycemia and weight gain.[](http://static.seekingalpha.com/uploads/2010/7/26/saupload_afrezza.png) In addition, MannKind has found Afrezza to be more effective at controlling postprandial glucose excretion and reduces glycosylated hemoglobin (HbA1c) levels - reducing possible vascular complications associated with diabetes. Unlike Exubera, the monomeric Afrezza offers a clear advantage over traditional injectable therapies. Increased Convenience of Afrezza The big draw any sort of inhalable insulin offers, of course, is the potential for the patient to avoid constant needle sticks for meal-time glucose control. While it seems that convincing a population of patients to ditch constant needle-sticks in favor or an inhalable therapy, Exubera highlights just how difficult that may be. Exubera's oft-maligned inhaler can only be described as 'bong-like'. While it collapsed into a cylinder about the size of a soda can, the appearance upon inhalation made users look, quite simply, ridiculous. Pfizer's Exubera [](http://static.seekingalpha.com/uploads/2010/7/26/saupload_exubera.jpg)[](http://static.seekingalpha.com/uploads/2010/7/26/saupload_afrezza.jpg) MannKind's Afrezza [](http://static.seekingalpha.com/uploads/2010/7/26/saupload_afrezza.jpg) Afrezza inhalers, on the other hand, are small enough to slide into a pocket, are discreet, and won't arouse suspicions if you are pulled over by the police with it in the passenger seat. One other consideration worth mentioning is that the Afrezza inhalers are breath-activated, where Exubera required an 'activation while breathing' process for administration. Patients and doctors should find the actuation process much more convenient and reliable. Cost Whether or not Afrezza will be able to gain significant market share will ultimately come down to price. The cost of a day of treatment for Exubera was reported to be approximately $5 a day, compared to $2 or $3 for traditional injectable insulin. While it would appear that the cost per day of treatment has not been settled upon with Afrezza, some reports have stated the price will be offered at a 10-20% premium over traditional injectable therapies. At that cost, it would be reasonable to believe that MannKind can indeed gain a respectable share of the insulin market. Keep watch for an announcement from MannKind on the official cost of therapy, as a significantly higher cost of therapy - say similar to that of Exubera - may seriously impact Afrezza's prospects. Summary Afrezza is not without challenges heading into its December FDA decision and beyond. However, having apparently addressed the efficacy, convenience, and cost issues associated with Exubera, Afrezza stands a significantly better chance at capturing a larger portion of the insulin market. A recent Bank of America/Merrill Lynch survey of 100 physicians showed that MannKind could achieve a peak penetration of 15% of the insulin market - although that rate was adjusted down to 2% by the analysts due mainly to the failures of Exubera. Afrezza offers a significant improvement over existing therapies and should not be maligned by its ungainly predecessor. Disclosure: No positionsSee also [Buffett Loads Up on J&J](http://seekingalpha.com/article/221025-buffett-loads-up-on-j-j?source=nasdaq) on seekingalpha.com Stock Price 4 days before: 6.57001 Stock Price 2 days before: 6.50249 Stock Price 1 day before: 6.52733 Stock Price at release: 6.83074 Risk-Free Rate at release: 0.0015	5.66234
Symbol: SA Security: Seabridge Gold Inc. Related Stocks/Topics: Markets\|UAE Title: Apocalypse Now. Right Now. Film at Eleven. Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-07-26 10:40:00 Article: Good Morning,Last week's European bank stress test results-related jitters have quickly given way to (literally) growing fears of another type. The new week began amid apprehensions that global economic growth-while not quite fit for being labeled as heading for a double-dip - is slowing in concert, from the US, to Europe, as well as to China. In fact, the principal preoccupying statistic in coming days will indeed be the figure that reveals the rate of growth of the US economy over the second quarter.Expectations of robust rates of expansion for the world's largest economy have undergone a relatively speedy shrinkage over recent weeks. What was once thought to be 4% or even 3% as regards US economic growth has now been tempered to forecasts of perhaps only 2.5% - a number about which we will learn more precisely only this Friday. In the meantime, behold the virtual disappearance of the one species that had made some very deep footprints on the market scene over recent months: the euro bear. It seems to have now followed its US cousin into the hibernation cave, following the fact that prediction of the common currency's imminent demise proved to be far off the mark over the past month. As mentioned, this is not a phenomenon limited only to America. The contraction in expected growth rates encompasses Europe and parts of Asia as well. Best-guess estimates are now for a global growth rate of perhaps only 3.25% for a while, as we go forward. Such slowing comes on the heels of near-5% growth recorded between 2003 and 2008 and has been engendered by anemic consumer patterns in the US, tenuous financial conditions in the eurozone, and the resolve of Chinese leaders to steer the country's economy away from total dependence on manufacturing while also trying to keep runaway and/or inflationary growth patterns in check.The combination of all of the above is now creating conditions where markets and investors are starting to price in a not-so-hot second half of 2010, even if talk of outright recession is not very loud, just yet. The most oft-tendered label for what's coming is a 'soft patch.' A soft patch that is complete with -for example- an S&P 500 closer to 900 (22% lower) than the current 1100 level, or, lower than $80 per barrel crude oil for another example. US stock index futures were factoring in just such a scenario this morning, following earlier declines in European equities.Gold prices started the week off on a slightly lower note, held back by a growing lack of investment interest which did not manage to offset decent physical offtake from Indian bargain hunters over the weekend. At the open, spot bullion prices were down $2.60 per ounce, showing a bid quote of $1187.10 as against a $1.29 euro, a $78.34 (down 65 cents) quote for black gold, and an 82.27 indication on the US dollar index.The yellow metal had dipped to just under $1185.00 per ounce prior to the start of the US-based session. The latest ETF statistics reveal an outflow of more than 12 metric tonnes from the SPDR Gold Trust - the largest such weekly loss in assets under management recorded in six months' time. According to our colleagues over at Standard Bank ([SA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SA&selected=SA)) ) the [gold market](https://www.nasdaq.com/market-activity/commodities/GCCMX)-in technical terms- looks bearish "within an $1,181 to $1,174 range; the point where the 100-day MA and long-term support trend lines actually meet.However, [thus far] in the physical market, buying interest is providing support around this crucial technical range for gold. A break below this range could see gold decline to $1,150. And, yes, price equations notwithstanding, according to the latest tallies courtesy of the World Gold Council, global gold demand is (still) bring ruled by jewellery off-take. More than half of global demand for the yellow metal came from that sector in Q1. The Standard Bank team adds that: "While the physical market is supporting gold, the futures market has seen COMEX non-commercial shorts almost double - to 120 tonnes last week. Non-commercial longs on COMEX declined 62 tonnes - to 758 tonnes. This left the net commercial position on COMEX 639 tonnes long - the lowest level since March this year." Gold has not posted a weekly gain since mid-June, at this point. Here we have a market in search of a fresh crisis.Who knows, gold might just get such an opportunity, at least if one astrology-based market letter is even halfway correct in predicting that "All Hell Breaks Loose (and not just in the stock markets) Come Monday (today)." Is your bunker ready? After all, no fewer than five key planets are aligned in a most foreboding way. 2012 starting in 2010 (like, between the 30 th and August 3, to be precise). Any takers for that one?Silver opened with an 8-cent per ounce loss, quoted at $18.04, while platinum showed a $3 per ounce decline with an indication at $1536.00 on the bid side. The exception this morning was palladium, which climbed $10 to open at $472.00 the troy ounce. Rhodium continued unchanged at $2230.00 per ounce. Fresh talk of wage-related labour action in South Africa was making the rounds amid traders this Monday morning.The South African NUM's next target may be Impala Platinum. The dispute centers on the 2% differential between mineworkers' demands for a 10% hike in wages, versus the 8% rise offered by the firm thus far. Such news appeared to lend support to the noble metals' complex for the moment. Fundamental support for the noble metals remains the overriding positive.Our analyst colleagues at Standard Bank presently observe that: "Platinum and palladium are seeing increased buying support, and we are increasingly confident that these metals' downside risk is dissipating." The team sees a fundamentals-based floor remaining at $1,500 for platinum, and at or near $420 for palladium, while they still prefer palladium to platinum. We prefer rhodium to both, and that's our humble opinion. Monday's [economic calendar](https://www.nasdaq.com/market-activity/economic-calendar) shows only new US home sales on the radar and the focus continues to be fix[at]ed upon Friday's GDP statistics, as previously mentioned. However, thin markets have been known to create excitement out of nowhere when it comes to intra-day spikes or dips. Thus, remain vigilant. If nothing else, for TEOTWAWKI. After all, it only comes around, well, every 25,600 years you know...Two footnotes as we go "to press" this morning: - So long as the US Mint can keep producing gold and silver coins in an attempt to meet demand for its products, WHO CARES where it secures its coin blanks from? Some people have been up in arms about this non-issue and have suggested that the Mint should only fabricate bullion coins from strictly domestic suppliers. Good luck. For our money, the quality and reliability offered by the Mint's Aussie supplier is just fine, thank you. Consider the alternatives for a moment, if you want a true coin shortage to develop, whilst the raw material needed to make them is quite abundant. - Our favourite image-laden gold-oriented website -GoldBarsWorldwide.com just updated its wonderful pages with two new supplements: one for Kaloti Jewellery Group ([UAE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UAE&selected=UAE)) ) and one for Chinese Tael gold bars ([HK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HK&selected=HK)) ) as the Chinese Gold and Silver Exchange Society marks its 100thanniversary. Be sure to visit [www.goldbarsworldwide.com](http://www.goldbarsworldwide.com/) for a museum-like experience full of wonder. Your eyes will thank you. Happy Trading. Jon Nadler****Senior Analyst,Kitco Metals Inc. North AmericaUS & Canada Toll Free: 1(877) 839-8036****Websites: [www.kitco.com](https://mail.kitco.com/exchweb/bin/redir.asp?URL=http://www.kitco.com/)and [www.kitco.cn](https://mail.kitco.com/exchweb/bin/redir.asp?URL=http://www.kitco.cn/)****Blog: [http://www.kitco.com/ind/index.html#nadler](https://mail.kitco.com/exchweb/bin/redir.asp?URL=http://www.kitco.com/ind/index.html%23nadler) Stock Price 4 days before: 26.1381 Stock Price 2 days before: 26.6768 Stock Price 1 day before: 26.8862 Stock Price at release: 26.6334 Risk-Free Rate at release: 0.0015	28.3423
Symbol: NEWT Security: Newtek Business Services Corp. Related Stocks/Topics: LOAN\|Markets\|TSEM\|CHCI Title: 6 Stocks to Buy for Under $1 Type: News Publication: Louis Navellier Publication Author: Unknown Date: 2010-07-26 11:00:00 Article: Penny stock investing is a great way to diversify your portfolio, and can also make you money when done properly. Because of their low trading price, penny stocks can often fly under the radar despite being very strong buys.That's the case with these six low-priced bargains that are trading for about $1 right now but receive my highest possible grade - an A for Strong Buy - in my proprietary [Portfolio Grader](http://www.investorplace.com/order/?sid=SR3114) stock ranking tool. Let's take a look at these six penny stocks to buy now:Spanish Broadcasting System Inc. ([SBSA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SBSA&selected=SBSA)) )Market Cap: $72.8 million Industry: MediaHispanic-controlled media and entertainment company Spanish Broadcasting System Inc. (NASDAQ: [SBSA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SBSA&selected=SBSA) ) operates 21 radio stations and two television stations in the U.S. and Puerto Rico. SBSA also owns and operates LaMusica.com and Mega.tv, along with websites for its various radio stations. This penny stock has had a productive 2010, and is up 43.6% since the beginning of January. Additionally, SBSA's stock has boasted an impressive 52-week change of 522%. Newtek Business Services Inc. ([NEWT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NEWT&selected=NEWT)) )Market Cap: $43.3 million Industry: IT Services Newtek Business Services Inc. (NASDAQ: [NEWT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NEWT&selected=NEWT) ) provides business services to the small and medium sized business market. This holding company allows businesses to obtain electronic payment processing, ecommerce services, Web hosting, Web design and development, business lending, accounts receivable financing, insurance services and payroll. This penny stock has performed well in 2010 and is up 23.5% year-to-date, which has analysts pleased. RF Monolithics Inc. ([RFMI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RFMI&selected=RFMI)) )Market Cap: $13.9 million Industry: Electronic EquipmentTechnology company RF Monolithics Inc. (NASDAQ: [RFMI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RFMI&selected=RFMI) ) designs, develops and manufactures technology-enabled wireless connectivity products for its clients. RFMI's stock has been up and down throughout 2010, but currently has a year-to-date increase of 29.3%. Additionally, in its last income statement, RF reported a 33.5% quarterly revenue growth year-over-year. Tower Semiconductor Ltd. ([TSEM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSEM&selected=TSEM)) )Market Cap: $282.5 million Industry: Semiconductors Tower Semiconductor Ltd. (NASDAQ: [TSEM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSEM&selected=TSEM) ) is a manufacturer of semiconductors. In addition to producing semiconductors, this penny stock also provides design and technical services for its customers. Tower has made large strides throughout 2010, and has seen a gain of 46.4% since January. Having outperformed its last earnings estimate by 367%, Tower has become a very strong penny stock in 2010. Comstock Homebuilding Cos. Inc. ([CHCI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CHCI&selected=CHCI)) )Market Cap: $28.8 million Industry: Household Durables Comstock Homebuilding Companies, Inc. (NASDAQ: [CHCI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CHCI&selected=CHCI) ) is a real estate development company that builds for-sale residential and mixed use products. Comstock builds a variety of properties, including single-family homes, townhouses, mid-rise condominiums, high-rise multi-family condominiums and mixed-use (residential and commercial) developments. This penny stock has seen huge gains in 2010, and currently has a year-to-day return of nearly 89%. Manhattan Bridge Capital Inc. ([LOAN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LOAN&selected=LOAN)) )Market Cap: $5.2 million Industry: Financial Services Manhattan Bridge Capital, Inc. (NASDAQ: [LOAN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LOAN&selected=LOAN) ) is a financial service company providing short term secured non-banking commercial loans, to small businesses. One of Manhattan Bridge's subsidiaries, DAG Interactive, operates a website that allows retail businesses and other service providers to reach customers and clients for their goods and services in an effective way. With a 50% gain since the start of 2010, Manhattan Bridge Capital is currently a very strong penny stock. About Portfolio Grader: Every Sunday, renowned growth stock adviser Louis Navellier runs a fundamental analysis on the top 5,000 Wall Street companies. Armed with this research, Navellier offers a rating for each company reflected as a simple letter grade, with A being "strong buy" and F being "strong sell." [Portfolio Grader's stock data is free and open to the public, and can be accessed online here](http://www.investorplace.com/order/?sid=CK3108) Stock Price 4 days before: 1.20946 Stock Price 2 days before: 1.22212 Stock Price 1 day before: 1.26068 Stock Price at release: 1.29638 Risk-Free Rate at release: 0.0015	1.15749
Symbol: GNK Security: Genco Shipping & Trading Limited Related Stocks/Topics: Markets\|EGLE Title: This Out-of-Favor Sector Is Poised for Gains Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-26 12:46:00 Article: There are dozens of very large ships plying the global waters that do nothing but ferry dry goods. Think of coal, grain, steel and other such bulk goods. When major nations actively trade these goods, bulk ships are in hot demand and the cost to lease them can surge. But when trading activity cools, their lease rates can plunge very sharply.Investors love to track this activity, using a handy indicator known as the [Baltic Dry Index](http://investinganswers.com/term/baltic-dry-index-1290) ([BDI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BDI&selected=BDI)) ). Just a few years ago, investors were treating shipping stocks like they were internet companies from the dot-com era. The [Index](http://investinganswers.com/term/index-971) surged from just over 2,000 in late 2005 to above 11,000 in 2008. As demand for these ships surged, lease rates soared thanks in large part to rising economic activity in China. Shares of DryShips (Nasdaq: DRYS) , a leading bulk carrier, rose from under $10 in early 2006 to around $110 in May, 2008. Two years on, the BDI has made a return trip all the way down to below 2,000 as new ships came on line just as demand was cooling. A headline on July 14 in the Wall Street Journal wryly noted: "Baltic Dry Index: Yes, It's Still Collapsing." The article opened on a sobering note: "Tuesday's close lower on the Baltic Dry Index marked the thirty-third consecutive decline of the index." And DryShips recently saw its shares fall below $3.50.Those tough times appear to be coming to an end. The BDI has risen in each of the last five sessions, giving some long-awaited relief to sector shares. DryShips, for example, has risen more than +30% since July 2 to a recent $4.60.Make no mistake, shares in the dry-shipping sector -- which also includes Eagle Bulk (Nasdaq: EGLE) , Excel Maritime ([EXM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EXM&selected=EXM)) ) and Genco Shipping ([GNK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GNK&selected=GNK)) ) -- could really take off if rates rise a bit further and then can be sustained at those levels. That's because these shippers have huge fixed costs and the difference between low rates and decent rates can mean the difference between big losses and big profits.So is this just a head fake, or the beginning of the next bull run for the BDI? That depends on a pair of questions. First, is global trade activity headed higher during the next few years? And second, how many ships are plying the waters in relation to potential demand?On the first question, it seems increasingly likely that the global economy will not slip back into recession. Both Europe and the U.S. have likely dodged a bullet, which is why the International Monetary Fund predicted +3.5% growth for global [GDP](http://investinganswers.com/term/gross-domestic-product-gdp-1223) . Yet China remains wildcard thanks to its voracious demand for raw materials. And there's good news on that front. China had been stockpiling key materials such as iron ore but more recently had been working to whittle down those stockpiles. Hence, their need for ships has cooled. That largely explains why the BDI had been falling sharply through mid-July.But recent data imply that China is back in the market for more iron ore and other materials, and it is booking ships for use later this year at higher rates. The day rate for a 900 foot-long bulk carrier, known as Capesize, now stands at $12,755 a day, but they will go for $30,000 a day by the fourth quarter, according to a Bloomberg survey.If those forecasts are correct, the BDI will trend well higher from here, and these high-beta stocks could double from current levels.But back to that second question: how many dry bulk ships are available? Too many for the industry's liking. The shipping boom of 2008, when some of these ships garnered more than $200,000 a day in lease rates, led to a flurry of new construction. And that led to a glut of new ships that were only recently put into service. Future price wars for these mega-ships are unlikely to ensue, so the BDI and sector share prices are unlikely to reach 2008 highs in the foreseeable future.Temper your expectations. A stock like DryShips won't surge towards the $100 mark like it did a few years ago. Instead, shares look poised to run towards the $7 or $8 mark if BDI rates can rise higher, as economists increasingly suspect. That's at least a +50% gain from current levels. You also need to get a sense of each carrier's contracted [backlog](http://investinganswers.com/term/backlog-866) . In some instance, previous high-priced contracts will expire and be replaced by lower-priced leases. Genco Shipping for example, is expected to garner less for its fleet as peak-of-the-market contracts roll off. That's why analysts think per-share profits will fall more than -30% next year to around $2.80. Looking beyond next year, a modest rise in the BDI could push [EPS](http://investinganswers.com/term/earnings-share-eps-1003) back north of the $3 mark, and perhaps closer to the $4 mark. Shares trade for around $17, giving the company a very modest [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) .In a similar vein, Excel maritime also trade for less than 10 times projected 2010 and 2011 profits. And those profits could spike far higher in subsequent years. Action to Take --> DryShips, which trades for just 4.5 times next year's projected profits, reports quarterly results this Wednesday. A positive report could be great news for this entire sector, which only recently was plunging into the abyss.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More... Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/out-favor-sector-poised-gains-456390) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 16.5 Stock Price 2 days before: 16.8736 Stock Price 1 day before: 16.7882 Stock Price at release: 16.9762 Risk-Free Rate at release: 0.0015	15.0389
Symbol: ODP Security: The ODP Corporation Related Stocks/Topics: CBOE\|Markets\|BP\|DPZ\|LMT\|CMI\|VLO\|TEVA\|UA\|AFL\|X Title: Opening View: DJIA Bulls Push for Fourth 100-Point Gain in a Row Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-07-27 08:04:00 Article: The Dow Jones Industrial Average (DJIA) soared to its third consecutive 100-point rally on Monday - a feat last accomplished on Jan. 2, 2009, and one that the DJIA has completed only eight times since 1997. During this three-day bullish binge, the Dow has added roughly 4%, while the CBOE Market Volatility Index (VIX) has plunged some 11.4%. The blue-chip barometer is currently perched above potential support near 10,500, with resistance looming overhead near 10,600 (site of the Dow's June 21 high). Incidentally, the VIX is trading at a two-month low, below its 200-day moving average. The S&P 500 Index (SPX), meanwhile, is perched above its 200-day moving average for the first time since June 21, as the broad-market index looks to leave the dregs of July in the rear-view mirror. While the SPX has potential support at its 200-day moving average and the 1,100 level, the index must still overcome its June high near 1,130. Heading into the open, Wall Street has a bullish bias ahead of a handful of key economic reports. Futures on the DJIA and the SPX are trading 34 points and 2.6 points above fair value, respectively. Can the Dow make it four in a row?In earnings news, Du Pont ([DD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DD&selected=DD)) ) reported second-quarter net income of $1.16 billion, or $1.26 per share. Excluding items, DD earned $1.17 per share, blowing past analyst expectations for earnings of 93 cents per share. Net sales climbed to $8.6 billion. "We grew sales across every segment," said CEO Ellen Kullman. The company lifted its full-year earnings outlook to a range of $2.90 to $3.05 per share, excluding significant items, from its previous range of $2.50 to $2.70 per share. Elsewhere, BP plc ([BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP)) ) reported a $17.2 billion loss in the second quarter, as it booked $32.2 billion in charges linked to the Gulf oil spill. BP also named Robert Dudley as its new chief executive, replacing Tony Hayward.Finally, Office Depot Inc. ([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) ) said that its second-quarter net loss narrowed to $18.7 million, or 7 cents per share. Excluding one-time costs related to restructuring, ODP earned 2 cents per share. Sales fell to $2.7 billion, from $2.8 billion. Wall Street analysts expected a loss of 17 cents per share on revenue of $2.75 billion. Earnings Preview On the earnings front, AK Steel Holding Corp. ([AKS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AKS&selected=AKS)) ), CIT Group Inc. ([CIT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CIT&selected=CIT)) ), Cummins Inc. ([CMI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CMI&selected=CMI)) ), Domino's Pizza Inc. ([DPZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DPZ&selected=DPZ)) ), L-3 Communications Holdings Inc. ([LLL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LLL&selected=LLL)) ), LCA-Vision Inc. ([LCAV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LCAV&selected=LCAV)) ), Lexmark International Inc. ([LXK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LXK&selected=LXK)) ), Lockheed Martin Corp. ([LMT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LMT&selected=LMT)) ), United States Steel Corp. ([X](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=X&selected=X)) ), Teva Pharmaceutical Industries Ltd. ([TEVA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TEVA&selected=TEVA)) ), Under Armour Inc. ([UA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UA&selected=UA)) ), Valero Energy Corp. ([VLO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VLO&selected=VLO)) ), Aetna Inc. ([AET](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AET&selected=AET)) ), AFLAC Inc. ([AFL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AFL&selected=AFL)) ), Broadcom Corp. ([BRCM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BRCM&selected=BRCM)) ), Buffalo Wild Wings ([BWLD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BWLD&selected=BWLD)) ), CB Richard Ellis Group Inc. ([CBG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBG&selected=CBG)) ) Cephalon Inc. ([CEPH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CEPH&selected=CEPH)) ), DreamWorks Animation SKG Inc. ([DWA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DWA&selected=DWA)) ), Fiserv Inc. ([FISV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FISV&selected=FISV)) ), Massey Energy Co. ([MEE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MEE&selected=MEE)) ) and Panera Bread Co. ([PNRA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PNRA&selected=PNRA)) ) are scheduled to release their quarterly earnings reports today. Keep your browser at [SchaeffersResearch.com](http://www.schaeffersresearch.com/) for more news as it breaks. Economic Calendar On the economic front, we'll get the Case-Shiller home price index for May and the Conference Board's Consumer Confidence Index for July this morning, while Wednesday offers up the weekly report on U.S. petroleum supplies. On Thursday, we'll see reports on weekly initial jobless claims and the Fed's Beige Book. On Friday, we'll get the latest numbers on second-quarter gross domestic product, along with the Chicago Purchasing Managers' Index for July, and a final look at July consumer confidence as measured by Reuters and the University of Michigan. Market Statistics Equity option activity on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) saw 1,095,255 call contracts traded on Monday, compared to 608,484 put contracts. The resultant single-session put/call ratio arrived at 0.56, while the 21-day moving average slipped to 0.62. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100727ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100727ov2.gif)The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher. [Dow, S&P and Nasdaq futures](http://www.schaeffersresearch.com/images/commentary/2010/100727ov3.gif) Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up [here](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=O&CODE=SIRG07D) for free daily delivery, straight to your inbox, before the opening bell. Overseas Trading Overseas trading has a bullish bias this morning, as seven of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a gain of 0.46%. In Asian trading, regional indexes finished mixed, as investors locked in profits from a solid winning streak. Hong Kong's Hang Seng, in particular, extended its uptrend to six sessions in a row. In Japan, the country's big three banks led the region's modest gains after the Basel Committee on Banking Supervision agreed to broaden the rules regarding core capital requirements at banks. In Europe, the financial sector is leading a broad rally across the region after UBS and Deutsche Bank reported better-than-expected quarterly profits. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100727ov4.gif)Currencies and Commodities There isn't much activity in dollar and commodities traders this morning, as many investors are in a holding pattern ahead of data on home prices and consumer confidence. The U.S. Dollar Index is hovering just above support at the 82 level heading into the open. The index has not closed a session below this level since April 30. Meanwhile, crude futures are hovering just above $79 per barrel, up 8 cents in pre-market trading. Oil prices have once again rallied into resistance in the $79-$80 per-barrel range, and could be poised to roll over from a double-top formation. Finally, gold futures have added 10 cents to trade at $1,187.10 in London. The malleable metal has lacked the buying strength to reclaim the psychologically important $1,200 level, with the region now providing stiff overhead resistance on a short-term basis. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100727ov5.gif)**Unusual Put and Call Activity:For an explanation of how to use this information, check out our [Education Center](http://www.schaeffersresearch.com/schaeffersu/) topics on [Option Volume](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?ID=220#220) and [Open Interest Configurations](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?id=221) . [Unusual options activity - puts](http://www.schaeffersresearch.com/images/commentary/2010/100727ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100727ov7.gif) [Follow Schaeffer's to the San Francisco MoneyShow Aug. 19 -- 21, 2010! Click here for details, including a list of scheduled presentations and how to register.](http://www.schaeffersresearch.com/edge/road.aspx)** All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 4.35813 Stock Price 2 days before: 4.40356 Stock Price 1 day before: 4.40448 Stock Price at release: 5.0 Risk-Free Rate at release: 0.0016	3.80749
Symbol: NG Security: NovaGold Resources Inc. Related Stocks/Topics: Markets Title: Natural Gas Daily Technical Outlook Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-07-27 08:04:00 Article: Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) Natural gas continue to stay in tight range for the moment and intraday bias remains neutral Fall from 5.196 is still in favor to continue and break of 4.288 will target a test on 3.81 support first. However, note that break of 4.923 will indicate that fall from 5.196 is finished. More importantly, the three wave corrective structure will in turn suggest that rise from 3.81 is still in progress for 6.108 resistance.In the bigger picture, the corrective structure of the rebound from 3.81 to 5.196 suggests that fall from 6.108 is not finished yet. Break of 3.81 support will confirm this bearish case and revive the case that medium term rise from 2.409 is already finished. In such case, further fall should be seen to retest 2.409 low next. However, break of 5.196 will in turn indicate that medium term rise from 2.409 is still in progress for another high above 6.108 [Image](http://img.ibtimes.com/www/data/articles/full/2010/07/27/15234.jpg) [Image](http://img.ibtimes.com/www/data/articles/full/2010/07/27/15235.jpg) Stock Price 4 days before: 6.38477 Stock Price 2 days before: 6.4362 Stock Price 1 day before: 6.43818 Stock Price at release: 6.20189 Risk-Free Rate at release: 0.0016	6.66015
Symbol: PBI Security: Pitney Bowes Inc. Related Stocks/Topics: Markets Title: Trade alert on Pitney Bowes (PBI) put selling Type: News Publication: Karla Yeh Publication Author: Unknown Date: 2010-07-27 12:06:00 Article: Pitney Bowes Inc.'s (NYSE: PBI ) earnings results are due in less than a week, and the stock is hovering around unchanged on the day. Options action out of the gate suggests one investor anticipates limited downside during the near term.Between 10:02 a.m. EDT and 10:07 a.m. EDT, the August 24 puts were active thanks to an investor who appears to have sold the options on a moderately bullish bet. These near-the-money puts changed hands for 55 cents per contract, which was right at the bid when the volume hit the tape. Current open interest in this line is roughly 160 contracts, suggesting the investor traded these puts to open. This options action suggests the investors collected 55 cents per contract to call for less than 5% of downside in the stock during the next 24 days. If PBI shares are trading higher than the strike price at expiration, this short put position could turn a maximum profit of the credit collected. If the stock drops to $23.45, the investor breaks even on this trade. Maximum losses occur if PBI shares are trading at zero at expiration, and investors will start to lose money when the stock drops below the breakeven price. It is possible that these put sellers tied the options action to a stock position, turning this moderately bullish bet into a delta-neutral volatility play. This article, however, focuses only on the put volume on the tape.PBI shares are relatively unchanged during morning trading at $24.72. The mail equipment producer is scheduled to announce earnings figures on Aug. 3 after the market closes. Analysts estimate earnings of 57 cents per share. PBI did not announce any news on Tuesday. Stock Price 4 days before: 23.9682 Stock Price 2 days before: 24.2185 Stock Price 1 day before: 24.6163 Stock Price at release: 24.72 Risk-Free Rate at release: 0.0016	19.3556
Symbol: IDT Security: IDT Corporation Related Stocks/Topics: Markets Title: The Best Performing Small-Cap Stocks of July 2010 -- Where Are They Headed Next? Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-28 06:51:00 Article: It's an age-old question: Do you chase fast-rising stocks or go after beaten-down names? If you're in the former camp, check out the stocks in the table below. They've posted stunning gains in July and investors may wonder whether yet more gains lie ahead.As is with any list of recent hot stocks, you'll always find a few names that have just been acquired. Both ADC Telecom (Nasdaq: ADCT) and ATC Technology (Nasdaq: ATAC) have been snapped up recently and are likely close to fully-valued unless rival bidders emerge. Let's take a closer look at a few of the other names on this list. Arena Pharmaceuticals (Nasdaq: ARNA)It you were lucky enough to hitch a ride with Arena Pharmaceuticals, then it must be awfully tempting to take profits. Don't do it. Even after more than doubling since mid-June, there may be more good news to come. As [we noted](http://www.streetauthority.com/node/456307) in a discussion regarding Arena and its rivals, the company's anti-obesity drug has investors salivating. That's because the company could conceivably bag more than $1 billion in royalty revenue from marketing partner Eisai International -- in a best case scenario. Even after its recent run, the company is still valued at just $600 million.The good news may keep coming. Arena will hold a conference call with investors next Tuesday, August 3rd. As management walks through the Eisai contract in greater detail, investors may push shares yet higher. And though it's a remote possibility, management may also announce an international marketing partner (Eisai has rights for U.S. sales only).The real catalyst for shares will come in September, when the FDA's advisory panel sits down to review Arena's lorcaserin drug. In light of the drug's relatively benign safety profile, the FDA is expected to offer up praise. But investors should note that lorcaserin seems to be only mildly effective, and the FDA sometimes rejects new drugs that don't yield very strong benefits. As with many of the biotech stocks in the table above, these shares come with high risk -- and high reward, especially after their recent run. Power One (Nasdaq: PWER)After years of heavily investing in Research & Development (R&D), management at Power One can finally breathe a sigh of relief. First quarter sales for this power control device maker were far ahead of even the most bullish forecasts, and shares have been on a tear ever since.Not only were first quarter sales strong, but [backlog](http://investinganswers.com/term/backlog-866) soared from $200 million to $400 million in just one quarter. Power One is seeing robust demand in the clean energy space because its power inverters can precisely regulate electrical current flow from erratic wind flows. That surging backlog tells that sales momentum is likely to be maintained. Power One reports results tomorrow -- July 29th. Trouble is, Power One has more recently traded yet higher on the bullish words of tele-pundit Jim Cramer. And when he gets behind a stock, it tends to move higher -- but fall lower again once he stops talking about the stock. As a result, shares may be getting ahead of themselves in the near-term. And after blowing past estimates for each of the last three quarters, investors are likely expecting another blowout this time around. If results merely track forecasts, momentum investors may quickly exit the stock. Action to Take --> Check out how Arena Pharma trades on Thursday after reports are released. Any major pullback as July winds down would set the stage for another upward move in August.Shares look poised for further gains ahead of next week's conference call, but be prepared to lock in gains if management's commentary provides the stock with another sharp boost. An increasing number of investors may be looking to book profits with shares up so sharply in such a short time.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More... Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/news/best-performing-small-cap-stocks-july-2010-where-are-they-headed-next-456400) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 14.1975 Stock Price 2 days before: 17.4072 Stock Price 1 day before: 19.1727 Stock Price at release: 16.7937 Risk-Free Rate at release: 0.0015	14.2535
Symbol: NG Security: NovaGold Resources Inc. Related Stocks/Topics: Markets Title: Natural Gas Daily Technical Outlook Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-07-28 07:59:00 Article: Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) While Natural gas' recovery from 4.288 might extend further, we'd continue to favor another fall as long as 4.923 resistance holds. Below 4.511 minor support will flip intraday bias to the downside. Break of 4.288 will target a test on 3.81 support next. However, note that break of 4.923 will indicate that fall from 5.196 is finished. More importantly, the three wave corrective structure will in turn suggest that rise from 3.81 is still in progress for 6.108 resistance.In the bigger picture, the corrective structure of the rebound from 3.81 to 5.196 suggests that fall from 6.108 is not finished yet. Break of 3.81 support will confirm this bearish case and revive the case that medium term rise from 2.409 is already finished. In such case, further fall should be seen to retest 2.409 low next. However, break of 5.196 will in turn indicate that medium term rise from 2.409 is still in progress for another high above 6.108 [Image](http://img.ibtimes.com/www/data/articles/full/2010/07/28/15279.jpg) [Image](http://img.ibtimes.com/www/data/articles/full/2010/07/28/15280.jpg) Stock Price 4 days before: 6.39419 Stock Price 2 days before: 6.43818 Stock Price 1 day before: 6.20189 Stock Price at release: 5.88828 Risk-Free Rate at release: 0.0015	6.78956
Symbol: NG Security: NovaGold Resources Inc. Related Stocks/Topics: Markets Title: Natural Gas Daily Technical Outlook Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-07-29 09:17:00 Article: [Image](http://img.ibtimes.com/www/data/articles/full/2010/07/29/15343.jpg) Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) Natural gas jumps further to as high as 4.881 so far but after all, with 4.923 resistance intact, we'd still favor another fall. Below 4.511 minor support will flip intraday bias to the downside. Break of 4.288 will target a test on 3.81 support next. However, note that break of 4.923 will indicate that fall from 5.196 is finished. More importantly, the three wave corrective structure will in turn suggest that rise from 3.81 is still in progress for 6.108 resistance.In the bigger picture, the corrective structure of the rebound from 3.81 to 5.196 suggests that fall from 6.108 is not finished yet. Break of 3.81 support will confirm this bearish case and revive the case that medium term rise from 2.409 is already finished. In such case, further fall should be seen to retest 2.409 low next. However, break of 5.196 will in turn indicate that medium term rise from 2.409 is still in progress for another high above 6.108 [Image](http://img.ibtimes.com/www/data/articles/full/2010/07/29/15342.jpg) Stock Price 4 days before: 6.4362 Stock Price 2 days before: 6.20189 Stock Price 1 day before: 5.86545 Stock Price at release: 6.14 Risk-Free Rate at release: 0.0015	7.12309
Symbol: FCF Security: First Commonwealth Financial Corporation Related Stocks/Topics: SIRI\|Markets Title: Sirius XM to Report Q2 Results Wednesday: The Number That Matters Type: News Publication: SeekingAlpha Publication Author: Unknown Date: 2010-08-02 07:09:00 Article: [Satellite Radio Playground](http://www.satelliteradioplayground.com/) submits:by Dennis "Cos" CostaOn Wednesday, August 4th 2010 at 8:00 a.m. ET, Sirius XM Radio ([SIRI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SIRI&selected=SIRI)) ) will be [conducting a conference call](http://satelliteradioplayground.com/2010/07/23/sirius-xm-siri-to-announce-q2-results-on-august-4th-2010/) to discuss the company's second quarter 2010 financial and operating results. Investors and analysts have been waiting for this call with much anticipation since the company [preannounced on July 7th](http://satelliteradioplayground.com/2010/07/07/sirius-xm-siri-adds-over-583k-subscribers-in-second-quarter/) that they had added over 583K net subscribers in the second quarter. In the same press release, the company raised its guidance for full-year 2010 to more than 1.1M subscribers, while maintaining its guidance to achieve over $100M in free cash flow.This news of such a large addition in subscribers was achieved with only modest, but stable, vehicle sales being reported in the same quarter. It also was announced after the company had already [raised subscriber guidance on May 17th](http://satelliteradioplayground.com/2010/05/17/sirius-xm-radio-siri-raises-guidance/) to over 750K, from 500K for the full year. It goes without saying that all eyes will be focused on how the company was able to achieve such dramatic numbers in a relatively flat vehicle sales environment. It will also be of interest to hear what impact these additional subscribers will have on important company metrics in both the short and longer term. While these subscriber growth numbers appear positive, the company's stock price is hovering around $1.00 per share and it's a "banner" for investor confusion at this price. After almost a year of debate and concern over the company maintaining its listing on NASDAQ, having hundreds of pages written debating the pros and cons of a reverse split, surviving two of the company's automotive partners washing through bankruptcy, and Sirius XM regaining entry into the Russell indexes, the company's equity continues to frustrate investors. It turns out that all of these regulatory, indexing, and partner uncertainties, have had little to do with the equity price appreciation over the past months. **The company has been executing its business plan effectively, meeting and exceeding all of its operating and financial goals quarter-over-quarter, and year-over-year since the merger two years ago. In the first quarter of 2010, Sirius XM reported record pro forma income from operations of ~$158M, positive GAAP income of $41.6M, or $.01 cent per share. The company paid cash for bonuses to employees, representing a change from the past practice of using common shares as payment, which would have also resulted in dilution of the common shareholder. In the first quarter, Sirius XM made lump sum payments for operating expenses and programming, eliminating fees and high interest expense which would have reduced income in future quarters of 2010, into early 2011. They also accounted for increased capital expense, primarily due to an increase in satellite spending. Even with an anouncement of paying $114M in cash, as an early repayment of 10% PIK notes due in 2011, the company's equity still hasn't received any appreciation for the company's efforts.While the above performance is certainly notable, the real performance, which many who have followed this company are waiting to see evidence of, is growth in cash. The company needs to become the cash-generating machine that was promised by CEO Mel Karmazin. With all of the company's accomplishments of the last eighteen months, the reported free cash flow in the first quarter of 2010 was a negative ($127M). While all of the explanations accounting for the use of cash above are understandable in rationalizing this number, it is not what will drive the company's equity to higher levels. As evidence of this sentiment by investors, on May 3rd, the day before the company's last conference call, the price of the stock was $1.23 per share. By the end of the week on May 7th, the stock was trading at $1.01 per share after reporting this negative free cash flow number.Going into this call, many will tout the average revenue per share (([ARPU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ARPU&selected=ARPU)) )), the subscriber acquisition costs (([SAC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SAC&selected=SAC)) )), the churn rate, and the conversion rate for self-paying subscribers, and that great total net additional subscriber number, as the important key metrics to watch when they talk about Sirius XM's performance. While these numbers are important operating metrics, and interesting discussion on many forums, it will be the Free Cash Flow (([FCF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FCF&selected=FCF)) )) that is the "Show Me" number for analysts and institutional investors when they make their decisions in the upcoming weeks and months. For investors, a suprise to the upside in positive free cash flow will be a welcome surprise. Disclosure:** Long SIRISee also [Valassis Communications, Inc. Q2 2010 Earnings Conference Call Transcript](http://seekingalpha.com/article/217958-valassis-communications-inc-q2-2010-earnings-conference-call-transcript?source=nasdaq) on seekingalpha.com Stock Price 4 days before: 5.27691 Stock Price 2 days before: 5.29693 Stock Price 1 day before: 5.25787 Stock Price at release: 5.25257 Risk-Free Rate at release: 0.0014	5.02525
Symbol: MNKD Security: MannKind Corporation Related Stocks/Topics: CBOE\|Markets\|SBAC\|HUM\|AFL\|VRSN\|L Title: Opening View: DJIA, SPX Set to Extend July's Bull Run into August Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-08-02 08:00:00 Article: After surging ahead more than 7% in July, the Dow Jones Industrial Average (DJIA) appears poised for more of the same in August, with futures on the blue-chip barometer pointing toward an opening jump of more than 100 points. European and Asian economic data have provided the spark for Wall Street bulls, with stronger-than-expected manufacturing data out of the euro-zone lifting sentiment, while a contraction in manufacturing in China has sparked rumors that Beijing will hold off on tightening measures. The DJIA comes into August hovering above support at the 10,450 level, with a rally today potentially carrying the venerable average into resistance near the 10,550-10,600 area. Meanwhile, the S&P 500 Index (SPX) is riding into August with support in the 1,100 area, but the broad-market index must still contend with resistance in the 1,115 region, which is home to its 200-day moving average. Finally, the CBOE Market Volatility Index (VIX) is once again poised for a showdown with its 200-day trendline. For more on the significance of the VIX's relationship with this long-term moving average, [read Bernie Schaeffer's thoughts on the subject](http://www.schaeffersresearch.com/commentary/content/august+option+advisor+vix+at+critical+juncture/observations.aspx?click=home&ID=101318) from the August edition of the Option Advisor .In equity news, Humana Inc. ([HUM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HUM&selected=HUM)) ) reported second-quarter net income of $340.1 million, or $2.00 per share, as revenue rose to $8.38 billion. Analysts were expecting a profit of $1.60 per share, on revenue of $8.54 billion. The company also boosted its full-year profit outlook to a range of $5.65 to $5.75 per share, up from prior guidance for earnings of $5.55 to $5.65 per share. Elsewhere, HSBC Holdings PLC ([HBC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HBC&selected=HBC)) ) posted a first-half net profit of $6.76 billion as loan impairments and other provisions fell to their lowest level since the start of the financial crisis. Excluding one-time gains, underlying pretax profit rose 30% to $9.6 billion. Analysts had been expecting pretax profit of $9.3 billion. The bank said loan impairments and other charges fell to $7.52 billion. What's more, HBC declared a dividend of 16 cents per share for the period.Finally, the United Arab Emirates announced over the weekend that it plans to stop Research In Motion Limited's ([RIMM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RIMM&selected=RIMM)) ) BlackBerry services in October. According to the UAE, the move is due to a dispute over RIMM's handling of electronic data. Saudi Arabia has also said that it will suspend BlackBerry messaging services. Earnings Preview On the earnings front, Loews Corp. ([L](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=L&selected=L)) ), MannKind Corp. ([MNKD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MNKD&selected=MNKD)) ), Aflac Inc. ([AFL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AFL&selected=AFL)) ), Evergreen Solar Inc. ([ESLR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ESLR&selected=ESLR)) ), General Cable Corp. ([BGC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BGC&selected=BGC)) ), SBA Communications Corp. ([SBAC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SBAC&selected=SBAC)) ), and Verisign Inc. ([VRSN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VRSN&selected=VRSN)) ) are scheduled to release their quarterly earnings report today. Keep your browser at [SchaeffersResearch.com](http://www.schaeffersresearch.com/) for more news as it breaks. Economic Calendar The Commerce Department will release its construction spending report for June on Monday. We'll also get a look at the Institute for Supply Management ([ISM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ISM&selected=ISM)) ) Index for June. The Commerce Department will weigh in again on Tuesday morning with reports on personal income, personal spending, and factory orders for June. We'll learn about July auto sales in the afternoon. The market will be graced with the weekly report on U.S. petroleum supplies on Wednesday, along with the ISM services index, but the Street will likely pay the most attention to the ADP report on private sector employment, the first of three days worth of employment data. The weekly report on initial jobless claims will be released on Thursday. On Friday, the Labor Department will release the month's highly anticipated nonfarm payrolls and unemployment reports. Market Statistics Equity option activity on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) saw 853,188 call contracts traded on Friday, compared to 535,429 put contracts. The resultant single-session put/call ratio arrived at 0.63, while the 21-day moving average held at 0.61. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100802ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100802ov2.gif)The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher. [Dow, S&P and Nasdaq futures](http://www.schaeffersresearch.com/images/commentary/2010/100802ov3.gif) Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up [here](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=O&CODE=SIRG07D) for free daily delivery, straight to your inbox, before the opening bell. Overseas Trading Overseas trading is in fine shape this morning, as all 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a gain of 1.54%. In Asia, soft Chinese manufacturing activity in July prompted speculation that Beijing would put plans to rein in growth on hold. Specifically, the HSBC China Manufacturing Purchasing Managers Index dropped to a 49.4 reading in July from 50.4 in June, marking the first decline below the 50 level in 16 months. Meanwhile, European regional indexes are headed sharply skyward, as traders react to stronger-than-expected manufacturing data for the euro-zone. The Markit Euro-Zone Manufacturing Purchasing Managers Index rose to a reading of 56.7 in July from 55.6 in June, topping the preliminary estimate of 56.5. The figure was the highest in three months, and was driven by a surge in German production. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100802ov4.gif)Currencies and Commodities The U.S. Dollar Index has broken yet another potential support level in Asian trading this morning, with the index dipping below the 81.50 level for the first time since April 27. At last check, the index was off 0.20% at 81.38 in pre-market trading. Meanwhile, crude futures have rebounded from a low near $77 per barrel in overnight trading, with the front-month contract up 74 cents at $79.69 per barrel. Keep in mind that the $79-$80 region has provided a stiff ceiling for crude futures since May 5. Finally, gold futures have dropped $3.20 to trade at $1,180.70 an ounce in London. The malleable metal is trading above its 10-day moving average, but the contract is meeting with resistance in the $1,185 area. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100802ov5.gif)**Unusual Put and Call Activity:For an explanation of how to use this information, check out our [Education Center](http://www.schaeffersresearch.com/schaeffersu/) topics on [Option Volume](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?ID=220#220) and [Open Interest Configurations](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?id=221) . [Unusual options activity - puts](http://www.schaeffersresearch.com/images/commentary/2010/100802ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100802ov7.gif) [Follow Schaeffer's to the San Francisco MoneyShow Aug. 19 -- 21, 2010! Click here for details, including a list of scheduled presentations and how to register.](http://www.schaeffersresearch.com/edge/road.aspx)** All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 6.98485 Stock Price 2 days before: 7.00225 Stock Price 1 day before: 7.22622 Stock Price at release: 7.21456 Risk-Free Rate at release: 0.0014	5.57335
Symbol: NG Security: NovaGold Resources Inc. Related Stocks/Topics: Markets Title: Natural Gas Daily Technical Outlook Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-08-02 10:08:00 Article: Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) As noted before, prior break of 4.923 resistance suggests that Natural ga's fall from 5.196 is finished with three waves down to 4.288 already. Intraday bias remains on the upside for a test on 5.196 first. Break will confirm the rise from 3.81 has resumed and should target 100% projection of 3.81 to 5.196 from 4.288 at 5.672 next. On the downside, below 4.784 minor support will turn intraday bias neutral and bring consolidations. But downside should be contained above 4.287 support and bring another rise.In the bigger picture, current development argues that fall from 6.108 is likely completed at 3.81 after being supported by 61.8% retracement of 2.409 to 6.108 at 3.822. In other words, rebound from 2.409 might not be finished yet. Break of 5.672 projection level will argue that rise from 3.81 is developing into an impulsive move and is possibly resuming whole rise from 2.409 for another high above 6.108. [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/02/15494.jpg) [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/02/15495.jpg) Stock Price 4 days before: 6.06632 Stock Price 2 days before: 6.21557 Stock Price 1 day before: 6.26981 Stock Price at release: 6.23996 Risk-Free Rate at release: 0.0014	7.44998
Symbol: CSIQ Security: Canadian Solar Inc. Related Stocks/Topics: GOOG\|Markets\|SYNA\|AAPL Title: Five High-Growth Tech Stocks that Won't Stay Cheap for Long Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-02 12:34:00 Article: Call it the winner's curse. When companies grow at fast clip for a long time, investors come to assume they'll never slow. Of course, all companies eventually grow too large to keep posting explosive growth. Some settle into a more moderate -- but still respectable -- plane of growth, while others truly hit a wall.We went trolling for these high growers, focusing on the technology field, to see if there is any life left in these former highflyers. We specifically screened for companies that have boosted sales at an average annual pace of +25% or more during the past five years, eliminating any companies valued less than $200 million. We culled the list further to focus solely on companies that have seen their stocks fall to a point lower than they were a year ago. This tells us that high-growth investors no longer love these names. But do they appeal to investors seeking moderate growth and reasonable valuations? Let's find out. Research in Motion gets no respect No major tech stock has gone more quickly from hero to goat than Research in Motion (Nasdaq: RIMM) , maker of the Blackberry smartphone. This was possibly one of the great growth stories of the last six years (when sales grew anywhere from +35% to +127% in any given year), but Apple's (Nasdaq: AAPL) stunning success with the iPhone and the iPad have led investors to think RIM's days of growth are over. And they ran as fast as they could, pushing shares down from above $80 last September to below $50 in early July (before a recent rebound to $56).Concerns of a massive slowdown in sales appear to be overblown. In the most recent quarter, sales rose +24% from a year ago, while profits rose +23%. The company added 4.9 million net new subscribers to its service, and now has a hefty 46 million customers. Admittedly, the customer base for the iPhone and Google's (Nasdaq: GOOG) Android phones are growing even faster, so [market share](http://investinganswers.com/term/market-share-778) is slipping. Apple is now nipping at RIMM's heels with 16.1% market share, while RIM's share fell to 19.4% in the first quarter from 20.9% a year ago, according to IDC, an industry research group.But management has just announced plans to fight back, unveiling a smartphone that has many iPhone like features and also plans to release a tablet computer to rival the iPad. And to defend its stock, RIM recently announced another share buyback, which in conjunction with a just-completed buyback, would cut the share count by -10%.Most analysts are taking a dim view of RIM right now, but analysts at Needham & Co. remain supporters, noting that this is "a stock that investors now love to hate." They add that "RIMM has several things going for it. A new operating system and browser due by September, and the most efficient network, which should play well as usage-based pricing takes over the market." Action to Take --> RIM is still posting solid growth. The fact that shares now trade for around 10 times fiscal 2011 earnings says that investors expect growth to sharply slow or stop completely. That's an overly bearish view. Apple and Google are surely very tough rivals, but RIM should also remain very relevant -- and increasingly profitable, for some time to come. Fast, loose and out of control Fast-growing companies can occasionally become so obsessed with the top-line that they lose sight of fundamental operational controls. That appears to be the case for Canadian Solar (Nasdaq: CSIQ), which was one of the hottest stocks in the clean energy space -- until the wheels fell off.Sales at this solar panel maker had zoomed from $20 million in 2005 to $700 million by 2008. And although sales flattened last year, they are expected to surge anew this year to more than $1 billion. At the start of the year, shares briefly moved up above the $30 mark. And then the perfect storm hit. Shares drifted back into the $20s on concerns that demand for new solar power equipment would slump in 2010. Then weak first quarter results pushed shares into the teens. Finally, the company admitted in early June that an SEC investigation would likely lead to a re-statement of fourth quarter results. These days, shares can be had for around $12, roughly -60% off those January trading levels.Despite all those issues, this still looks to be a solid long-term growth story -- once the dust settles. After all, Canadian Solar is back in high-growth mode thanks to recent capacity expansions and an upturn in solar panel pricing. And by some accounts the SEC investigation and expected fourth quarter restatement is expected to be a one-time event and will not impact revenue projections. Management recently raised full-year sales guidance.Equally important, the bottom-line should rebound in 2011, with [EPS](http://investinganswers.com/term/earnings-share-eps-1003) bumping back up to $1.50. (Profits are being constrained this year while industry demand catches up with supply -- a situation which is expected to reverse in coming quarters). Action to Take --> Analysts at Wells Fargo are virtually alone in their support for Canadian Solar right now. In mid-July, they raised their rating to Outperform, expecting that recent [accounting](http://investinganswers.com/term/accounting-835) and [margin](http://investinganswers.com/term/margin-82) concerns will soon be resolved. They also boosted their 2011 EPS forecast to $1.99 -- well above the $1.50 consensus.It's unclear what kind of multiple this stock deserves with its litany of missteps. But if per share profits can indeed rebound to $1.50 or $2.00 in 2011 and you slap a target [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) ratio of 10 times projected profits, then shares would trade up to $15 to $20 -- well above the current $12 price.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article. [StreetAuthority](http://www.streetauthority.com/news/five-high-growth-tech-stocks-wont-stay-cheap-long-456409) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 12.8645 Stock Price 2 days before: 12.0706 Stock Price 1 day before: 12.2851 Stock Price at release: 12.3364 Risk-Free Rate at release: 0.0014	12.2528
Symbol: NGL Security: NGL Energy Partners LP Related Stocks/Topics: OEX\|Markets\|CHK\|APA\|HAL\|EME\|EPS Title: Keith Schaefer: Stick with Wet Gas, Heavy Oil Plays Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-08-03 02:58:00 Article: Keith Schaefer: Stick with Wet Gas, Heavy Oil Plays [](http://www.addthis.com/bookmark.php?v=250&pub=xa-4b26e4054a784caa) Source: Brian Sylvester of [The Energy Report](http://www.theenergyreport.com/) 08/03/2010[http://www.theenergyreport.com/cs/user/print/na/6974](http://www.theenergyreport.com/cs/user/print/na/6974) [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/03/15574.jpg) Oil and Gas Investments Bulletin Editor and Publisher Keith Schaefer specializes in Canadian oil and gas plays. Despite the languishing gas price, he sees opportunities in some hedged Canadian gas companies and unhedged "wet-gas" producers. If you're not into gas, Keith is big on oil. In this exclusive interview with The Energy Report, Keith will tell you how radial drilling is creating opportunities in heavy oil, too. The Energy Report: Keith, when The Energy Report talked with you in [December](http://www.theaureport.com/cs/user/print/na/1266) , you said that a gas price below $5 would be "hell." Well, welcome to hell. Gas is hovering around $4.50 right now. Where's the bottom?Keith Schaefer: It has been a very tough year for gas producers. Since January, the gas price has been on a straight downhill slide, with very few bumps up along the way. It has been hell, particularly for the juniors that are unhedged. These companies are creating no value for their shareholders. Their cash flow is anemic.Where is the bottom? I think there's a good chance we're going to find that out in the next month or so, because gas traditionally bottoms in August. Last year, it bottomed around $2.50, $2.75 per MCF. Then in September, it started to take a big jump back up to $5. These stocks had a huge run along with that. It's almost funny, because none of these companies were really making money at $5, but the fact that they were losing a little bit less made the market very happy, and that took the stocks for a big run. TER: At the same time, a lot of producers are hedged. Most of them are right around the $6 mark. KS: Many of the seniors are hedged at $6. The forward curve has allowed them to do that. Good for them and their shareholders, because it looks like we could be in for a multi-year low gas price if these U.S. shale plays hold up. TER: What's your view on the gas price through the end of this year and the end of 2011?KS: I think this year we're going to get a little bit higher, but not much. Right now gas in the States is running around $4.50. In Canada, it's running at about a dollar less. These shale gas plays in the U.S. are doing a superb job at increasing production. Unless there's a dramatic increase in demand or a significant falloff from production, we're going to be staying right around here; maybe a little bit higher, but not much. TER: And that's through the end of 2011 as well?KS: The end of 2011 could be very interesting, just because many of these shale gas plays are relatively new. Right now companies stake a bunch of land and they have to drill the land to hold it. Once they've drilled a certain amount of holes, that land is theirs. When that happens, I expect these companies to stop drilling. That should actually be quite positive for the gas price. Companies are being forced to drill to keep their land when the market says they shouldn't. TER: Are there companies that, despite the low gas prices, continue to perform?KS: Oh, yes. You're seeing several companies do better than expected, for a couple of reasons. Some have been smart enough to hedge, which has benefited their balance sheet and their cash flow. [Bellatrix Exploration Ltd. ( ](http://www.theenergyreport.com/cs/user/print/co/2326) [BXE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BXE&selected=BXE) ) is at the top of that list, and it's in our Oil and Gas Investment Bulletin Portfolio. They've hedged 50% of their gas at close to $7, so their cash flow has been fantastic this year. A second reason Bellatrix is doing better than expected is that they have a large land position in a burgeoning oil play in Alberta known as the Cardium. That stock has outperformed its peers this year, and in my mind, it will continue to. Another company that's done really well is [Angle Energy Inc. ( ](http://www.theaureport.com/cs/user/print/co/1253) [NGL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NGL&selected=NGL) ) , a wet-gas producer. Wet gas gets about twice the amount of money as dry gas. TER: Is this what's known as natural gas liquids in the U.S.?KS: Yes, liquid-rich gas. Angle has a huge growth curve in front of them. They're not hedged. If you're looking to play gas, that's a good one, because from their wet gas, they have downside protection with good cash flow, at current gas prices. They also have huge exposure to the upside if gas moves. TER: Are we seeing companies with assets that have a high percentage of natural gas liquids getting higher valuations?KS: Absolutely. Companies are getting higher valuations because of their higher wet gas percentages. Not across the board, but most of them are, companies like Angle and some of the other high wet-gas producers, which are mostly in the Deep Basin area of Alberta, right outside the foothills. And up in the Montney shale play, as well, they're getting higher liquids contents. They're getting 10, 20, 30, 40 barrels of wet gas per million cubic feet of dry gas, which could basically double the economics. TER: Wow. Do you have some specific names with exposure to those plays besides Angle? KS: [Orleans Energy Ltd. ( ](http://www.theenergyreport.com/cs/user/print/co/2579) [OEX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OEX&selected=OEX) ) has a good wet gas count. [Cinch Energy Corp. ( ](http://www.theenergyreport.com/cs/user/print/co/1249) [CNH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CNH&selected=CNH) ) has a wet gas count. [Vero Energy Inc. ( ](http://www.theenergyreport.com/cs/user/print/co/1221) [VRO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VRO&selected=VRO) ) . . . TER: All right, what about Vero?KS: I love Vero. I think it's a great company. The stock trades very, very well for how few shares-only 30 million-are out. Vero has one of the top management teams in the business, Doug Bartole and his vice president of exploration, Kevin Yakiwchuk. They have a great property in the Edson area of Alberta. They've shown great discipline in producing when the gas price is good and shutting down production when it's not. They've managed their finances very well. Vero keeps a high debt ratio, which means they don't have to issue many shares because they're generating most of their growth by using debt. They've got this new Cardium oil play, which has over 90 net sections. That's a lot of oil that they can bring onstream, very profitable oil. TER: Are they in production right now?KS: They're producing 8,000-8,500 barrels a day. TER: Are there any other gas companies that you're excited about? You cover [Peyto Energy Trust (TSX:PEY-U; OTC:PEYUF)](http://www.theenergyreport.com/cs/user/print/co/2155) . Tell us about that one. KS: Peyto is the lowest-cost producer in Canada. Their suite of properties is best of breed. Management has done a fantastic job. Over the last 10 years, that stock went from $1 to $45. I actually owned that stock when it was $1 a share, back in 1998. Now, of course, after the crash, everything's changed; but they continue to have the lowest- cost production, and a great growth profile. If you were only going to buy one gas company to get some exposure to a potentially rising gas price, Peyto-being the lowest-cost producer-would be it. TER: A recent report on the U.S. shale plays by Credit Suisse talked about some of the gas shale plays with the best internal rates of return ([IRR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IRR&selected=IRR)) ). The Marcellus was ranked second, with a 42% IRR. What are some companies with significant exposure to the Marcellus? KS: One of the best companies that I like for exposure to the Marcellus shale play is actually an energy services company that does a lot of the drilling work and mud work for the producers in that area. It's called [Canadian Energy Services and Technology Corp. ( ](http://www.theenergyreport.com/cs/user/print/co/2580) [CEU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CEU&selected=CEU) ) . They've been able to make huge inroads into the Marcellus by selling their products to the drillers and producers there. Their mud allows drillers to complete a well in the Marcellus about 10 days sooner than normal. That dramatically reduces costs, which is one of the reasons the Marcellus is turning into a much more profitable play. On the producer's side, I think one of the safest plays in the Marcellus is a company called [Epsilon Energy Ltd. ( ](http://www.theenergyreport.com/cs/user/print/co/2581) [EPS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPS&selected=EPS) ) . They have a deal with [Chesapeake Energy Corp. ( ](http://www.theenergyreport.com/cs/user/print/co/1541) [CHK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CHK&selected=CHK) ) , the second largest gas producer in the United States. Between cash payments and work commitments, they've paid Epsilon about $200 million to get access to Epsilon's Marcellus ground in Pennsylvania. Epsilon basically has a free ride. In one sense it doesn't really matter what gas prices do, because Chesapeake is paying the freight. I love companies like that. TER: I think we'll switch over to oil. Oil remains just below $80 a barrel. Do you think that's a psychological barrier? Does oil need to get past $80 to have a run?KS: No, not at all. Oil doesn't need to run. I'm happy to see oil trade here for the next five years, because there are lots of companies that make fantastic profits at $75 oil. Technology is lowering costs in the oil patch. With the new horizontal drilling technology and multi-stage fracking, all kinds of new plays are opening up. Literally. Just yesterday, a new play opened up in Canada that no one had really paid much attention to. One of the independent consultants estimated that there are over 6 billion barrels of oil just in that one formation in Alberta in B.C. So all over the place you're seeing new basins, new formations being opened up with all this new technology, and it's relatively low-cost oil, not compared to the Saudis per se, but by the standards everywhere else in the world, it's very profitable oil at these prices. The oil price does not need to go any higher. TER: Do you see it staying in that range for the next couple of years?KS: That's a question that only history is going to be able to tell us. But I would suggest that, with the decline in demand in the U.S. and Western Europe being offset by the rise of China and India, we're going to see a fairly stable oil price for a while. TER: You were talking just a few seconds ago about technology opening up some new plays. At the same time, fracking is not all that new. Multi-stage fracking has been around for a while. and horizontal drilling has been around for a while. What are new technologies in oil and gas exploration that we haven't heard about?KS: There are new ones coming up all the time. But let's just go back to fracking and horizontal drilling for a second. Although those technologies have been around for 40, almost 50, years, it was just 10 or 12 years ago that the technologies got perfected enough so that they could start producing oil and gas out of rock. That was the Barnett shale.What you've seen here now is that many new plays around Canada and the U.S., where the technology was developed, have become newly commercial. Even though they're old technologies, they're still opening up many, many new plays all around the world-the European shale gas plays, the African shale gas, and that's just scratching the surface. We're going to see huge growth in Europe and Africa shale gas over the next 20 years. You're right, they are old technologies, but they're being used in new basins for the first time and that's creating big value for shareholders.One of the new technologies that I'm really intrigued by is radial drilling, which is used in heavy oil basins. I believe this is a technology developed by [Halliburton Co. ( ](http://www.theenergyreport.com/cs/user/print/co/2383) [HAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HAL&selected=HAL) ) . Little jets are sent into the very porous heavy oil formations and are able to create wormholes 100 meters out into the formation, to get oil to flow back to the well. Before this technology was being used, you could only get about 3 to 5 meters outside of the wellbore. It's a huge increase in potential production and reserve creation. TER: And that's making some of these old basins profitable again? KS: Yes. What's happening is that the old basins that have been worked over now have a new lease on life. I would say that heavy oil formations haven't really been used or exploited that much. The world's been very focused on getting the light oil out. But over the last dozen years, much more time has been spent focusing on the heavy oil. They're continually finding ways to improve the technology and lower the cost. TER: What are the big differences between heavy oil and light oil?KS: Light oil is easy to process, and doesn't need much work to get into the form that would go into your car. Heavy oil has heavy products in it like metals; it's the basic component of asphalt. We have to spend a lot of money to remove the asphalt, rocks, and bits of metal to make heavy oil into various types of fuel. Heavy oil doesn't go into your car; it will go into heating products or diesel, or products where it doesn't need to be refined quite as much. TER: It's more expensive to process, but are there still some companies that you like that are big into heavy oil and are profitable. Could you tell us about some of those?KS: Yes. That's a great point. What's happening here is that many of the U.S. refineries, particularly those down in the Gulf of Mexico, are geared toward heavy oil. You just can't change your refinery at the flick of a switch and say, "Alright, today we're going to do light oil. Tomorrow we're going to do heavy oil." When you're a heavy oil refinery, that's the type of feedstock you need. The two biggest sources of heavy oil, Mexico and Venezuela, are in steep decline-Mexico for geological reasons, Venezuela for political reasons. That means that the heavy oil from Canada is in hot demand in U.S. refineries. There's a new pipeline being proposed to take oil from Canada down to the U.S. refineries. Many heavy oil producers that are used to getting only 50%-60% of the regular oil price for their products, because it costs so much more to process them, are now getting 85%-90% of the regular oil price. Over the last two or three years, there has been a huge increase in the heavy oil price. What they called a "heavy oil discount" has gotten much smaller. And the heavy oil in Canada is very shallow, so it does not cost much to produce. Wells only cost $300,000-$700,000, versus $3 million-$5 million for a deep light oil well. So when your costs are low and the price of your product has gone up a great deal, that's a recipe for profits. TER: Tell us about some of those companies that are profiting from this trend in heavy oil. KS: Well, one of my favorites is a company called [Emerge Oil and Gas Inc. ( ](http://www.theenergyreport.com/cs/user/print/co/2582) [EME](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EME&selected=EME) ) , which has lots of heavy oil in Alberta and in Saskatchewan. They have done a great job securing large land packages that have highly prospective oil leases. Emerge has been able to deliver good production growth and will continue to do so over at least the next two years. TER: Any others?KS: Another one that I like is a company called [Rock Energy Inc. ( ](http://www.theenergyreport.com/cs/user/print/co/1264) [RE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RE&selected=RE) ) . CEO Al Bey knows how to secure land positions, and he has a very good cost-control system in place. Some of their properties are able to deliver profits of three to seven times the money that Rock puts into them. For every dollar that they put into the search for the oil, they're able to return $3-$7 to the shareholders. That's a fantastic "recycle ratio."TER: What other things has management done?KS: They just brought on John Van De Pol as President and CFO. John's been involved in a couple of winners in the past, has a lot of experience and does it right. He's very methodical. For a shareholder, he's exactly the type of guy who gives you a lot of confidence. TER: What are Rock's prospects for growth?KS: They still have a large undeveloped land package, with a drilling inventory of at least two to three years ahead of them. They'll be able to continue to grow production quite strongly. Rock is also one of the pioneers in using this new radial drilling technology. They're finding that the amount of oil they can get out of each of their land sections is increasing quite dramatically, and that's been a big, big bonus. TER: Are there any other companies you like in the heavy oil space?KS: Not too many. Rock and Emerge are two of the best. Another one is [BlackPearl Resources Inc. ( ](http://www.theenergyreport.com/cs/user/print/co/1996) [PXX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PXX&selected=PXX) ) , which has a strong growth profile. Their growth is actually going to come in chunks. Unlike Emerge and Rock, which are able to drill a lot of small wells, BlackPearl has slightly larger assets that take more time and more capital to develop. Their growth is going to come more in steps and stages, as opposed to the steady growth that Rock and Emerge will have. But it's a well-respected team, and the market loves BlackPearl. TER: How so?KS: They trade at a much higher valuation, for example, than Emerge does. Its market cap relative to its production is very high. With almost 300 million shares issued, the company is worth almost $1 billion. For the level of production that it has right now, BlackPearl is a relatively expensive stock. TER: Yesterday, [BP (NYSE:BP; LSE:BP)](http://www.theenergyreport.com/cs/user/print/co/2263) sold most of its Canadian assets to [Apache Corp. ( ](http://www.theenergyreport.com/cs/user/print/co/1643) [APA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=APA&selected=APA) ) . Will that create any opportunities in Canada? KS: I think it's too early to say. But let's consider Apache the general contractor in a construction job. They are going to cherry-pick the assets that they really want and sell off the smaller assets that they don't want. You're going to see a filtering-down of these assets to smaller companies over the next year. That should create a pretty big opportunity for the right team that's able to get a good land position. TER: What could it do for Apache?KS: Apache has been spending a lot of money up here, which is interesting. They're one of the largest gas producers in Canada. They bought the controlling interest in the LNG (Liquefied Natural Gas) terminal being built at Kitimat, British Columbia. That gas will go to Asia, where the price is much better. This is one of the strategic things Apache has been able to do: basically, set themselves up as huge land and major infrastructure owners to send gas overseas, where it gets a much better price.If Apache had to send this gas down to the U.S., it would not be very profitable, because it's way up near the Yukon border. And with Marcellus production coming on-stream, that's really cutting out a lot of Canadian gas into the States. But if they can keep that gas producing and send it over to Asia, via the LNG terminal on Canada's west coast, that could be a huge profit center for Apache. TER: Are there parting thoughts you want to leave us with?KS: Many natural gas companies are trying to rebrand themselves now as wet-gas companies, to try to get higher valuations. We're going to see a lot of that type of talk over the next six months. But I don't see any sustained pick-up in the gas price for a year. Having said that, as soon as we get a sign that some of these U.S. shale plays are going to fizzle quicker than expected, that situation could change very, very quickly. Also, we have a special offer exclusively for Energy Report readers-we're offering a free Oil & Gas Investments Bulletin report, which includes an exclusive stock pick, one which I believe has lots of room for growth-despite it having already doubled for my subscribers. As well, we're offering your readers a 30% discount on current subscription rates for a limited time only. For more information on this special offer, please visit our website at: [www.oilandgas-investments.com/special-offer/](http://oilandgas-investments.com/special-offer/) . Our returns have done very, very well this year and with the annual subscription there is a 60-day money back guarantee.Keith Schaefer of the [ Oil & Gas Investments Bulletin](http://www.oilandgas-investments.com/) writes on oil and natural gas markets. His newsletter outlines which TSX-listed energy companies have the ability to grow, and bring shareholders prosperity. He has a degree in journalism and has worked for several dailies in Canada, but has spent the last 15 years assisting public resource companies in raising exploration and expansion capital.Want to read more exclusive Energy Report interviews like this? [Sign up](http://www.theenergyreport.com/cs/user/print/htdocs/38) for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our [Expert Insights](http://www.theenergyreport.com/pub/htdocs/exclusive.html) page. DISCLOSURE:1) Brian Sylvester, of The Energy Report, conducted this interview. He personally and/or his family own none of the companies mentioned in this interview.2) The following companies mentioned in the interview are sponsors of The Energy Report: Rock Energy. 3) Keith Schaefer-I personally and/or my family own the following companies mentioned in this interview: Rock Energy, Angle Energy, Bellatrix Energy, Vero Energy, Orleans Energy, Cinch Energy, Canadian Energy Services, Emerge Energy, BlackPearl Resources. I personally and/or my family am paid by the following companies mentioned in this interview: None.Streetwise - [The Gold Report](http://www.theaureport.com/) is Copyright © 2010 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.The GOLD Report does not render general or specific [investment advice](https://www.nasdaq.com/education/stock-market-where-buyers-and-sellers-meet) and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report.From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported. Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.Participating companies provide the logos used in The Gold Report. These logos are trademarks and are the property of the individual companies.Streetwise Reports LLCP.O. Box 1099Kenwood, CA 95452Tel.: (707) 282-5593Fax: (707) 282-5592Email: [[email protected]](mailto:[email protected]) Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0015	0
Symbol: WGO Security: Winnebago Industries, Inc. Related Stocks/Topics: DEER\|Markets\|DENN\|TK Title: Five Beaten-Down Stocks with +100% Upside Potential Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-03 03:59:00 Article: The coming months could prove to be an enticing time for investors. Many stocks are trading well off their highs under the assumption that the coming streams of economic data will prove to be disheartening. If we indeed are in for a tough slog in the months and quarters ahead, then many of these stocks could meander at their current cheap valuations. But even modestly good news on the economic front could sharply boost interest in stocks, as we may be looking at the beginning of a sustained economic upturn.We can use 2002 as a reference point. Prospects were glum and many stocks sported low [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) ratios. That set the stage for a powerful two-year run that pushed the S&P 500 up +23% in 2003 and +11% in 2004, while a range of individual stocks doubled off of their lows. With that in mind, here are some stocks that could sharply benefit from a more positive economic backdrop or simply better news out of quarterly results. Winnebago ([WGO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WGO&selected=WGO)) )In early June, shares of Winnebago soared after the company announced that sales in the all-important spring season were very robust. Management noted that demand for recreational vehicles was quite strong compared to a year ago, though below levels seen just a few years ago. The euphoria eventually faded, and shares have lost nearly -40% during the past three months.Winnebago's rebound may prove to be erratic. After all, the winter months can be fairly lean. But if investors start to see signs that the consumer is beginning to spend, then Winnebago will be seen as a prime beneficiary of an improving economy. It's important to remember that consumers that were relatively financially healthy heading into the downturn have also sharply boosted their savings rate. At some point, those consumers may feel comfortable treating themselves to high-ticket purchases.After the recent sell-off, shares now trade for about 20 times fiscal (August) 2011 forecasts, and more importantly, six times annual profits in the middle of the last decade when the industry was at its peak. Demand for RVs should eventually rise back to that peak, as the amount of baby boomers continues to grow. Assigning a multiple of 15 off of those peak earnings would push shares up to $30, nearly +200% above current levels. That price target is unlikely to be seen for several years, but for patient investors, Winnebago could be a real home run. A123 Systems (Nasdaq: AONE)This maker of advanced battery systems was initially a hot [IPO](http://investinganswers.com/term/initial-public-offering-ipo-1076) , but perhaps came out just a bit too early. The company posted several lackluster quarters after [going public](http://investinganswers.com/term/going-public-456) , sending shares down from $28 to under $8. Shares have started to rebound in recent sessions back up $10 as investors start to realize they were judging the company's results while the electric car market has yet to really take off. But it will. Soon after the Nissan leaf is released in late 2010, a slew of additional electric cars will hit the market from companies like Mitsubishi, Smart, Chrysler/Fiat and perhaps BMW.As investors start to re-focus on this potentially massive market, shares are likely to turn over a new leaf, perhaps back up above the $20 mark. The next few quarters will likely be lackluster for A123 Systems, so these shares will only benefit in a rallying market as investors once again focus on high-growth opportunities. Biodel (Nasdaq: BIOD)This medical device company holds a great deal of promise -- or at least it did until investors lost interest, pushing shares down from nearly $20 in the summer of 2008 to a recent $4. But a rebound may be in the offing.Biodel has developed a device that injects insulin into the bloodstream more rapidly than other approach. The device can automatically respond to blood glucose levels, regulating the amount of insulin required. After several years of anticipation, Biodel is moving closer to the regulatory finish line.The insulin device has had a very strong safety profile and has been quite effective in clinical trials. FDA approval could come late this year, and the company may sign key partnerships before then. Might shares once again re-visit those lofty levels seen back in 2008? Time will tell. Deer Consumer Products (Nasdaq: DEER)I've written about this company several times before, usually when management boosts guidance and extends a current share buyback. That's about all they can do to support the stock, which continues to find little love in this market, despite stellar growth prospects.Deer makes kitchen appliances for global brands like Stanley Black & Decker ([TK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TK&selected=TK)) ) , and is now ramping up domestic sales, steadily building its brand among Chinese consumers. The Chinese economy will likely cool off from its recent torrid pace, but the Chinese middle class looks set to keep expanding. Sales grew +86% in 2009 and look set to grow another +97% this year and +28% in 2011. Meanwhile, shares trade for little more than half their 52-week high, as China-based stocks of all stripes get heavily discounted in this market. Assuming shares trade up to 18 times 2011 profits, investors are looking at a two-bagger. Denny's (Nasdaq: DENN)Management at this restaurant chain has tried every trick in the book to boost sales, from special breakfast deals to two-for-one specials. But sales are still in a slump, after falling sharply over the last two years. Management may simply need to wait until consumers are spending again, at which time sales could rebound at a decent pace and profits at a more robust pace. This is a very high fixed-cost business, which historically has been marked by profits that grow twice as fast as sales.Investors don't need to see Denny's rebound all the way back to full health -- they simply need to start seeing more positive trends and then extrapolate future results from there.Even with the sales slump, Denny's remains profitable and trades for about six times next year's projected [EPS](http://investinganswers.com/term/earnings-share-eps-1003) of $0.43. Looking out several years, EPS could rebound to the $0.60 or $0.70 level. Slap a multiple of 10 on that and shares could rise to at least $6 -- double or triple current levels. Action to Take --> Winnebago, Denny's and Deer Consumer Products are unlikely to fall much further, even if the economy remains in a funk, thanks to supportive fundamentals. They each represent roughly +100% to +150% upside. Biodel and A123 Systems are more speculative and do have some downside risk, but also represent even sharper upside potential. A basket of these stocks stashed away for a while may prove to be a winning move. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/five-beaten-down-stocks-100-upside-potential-456415) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 10.1205 Stock Price 2 days before: 10.759 Stock Price 1 day before: 10.7753 Stock Price at release: 10.8715 Risk-Free Rate at release: 0.0015	9.06569
Symbol: TK Security: Teekay Corporation Related Stocks/Topics: DEER\|Markets\|DENN\|WGO Title: Five Beaten-Down Stocks with +100% Upside Potential Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-03 03:59:00 Article: The coming months could prove to be an enticing time for investors. Many stocks are trading well off their highs under the assumption that the coming streams of economic data will prove to be disheartening. If we indeed are in for a tough slog in the months and quarters ahead, then many of these stocks could meander at their current cheap valuations. But even modestly good news on the economic front could sharply boost interest in stocks, as we may be looking at the beginning of a sustained economic upturn.We can use 2002 as a reference point. Prospects were glum and many stocks sported low [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) ratios. That set the stage for a powerful two-year run that pushed the S&P 500 up +23% in 2003 and +11% in 2004, while a range of individual stocks doubled off of their lows. With that in mind, here are some stocks that could sharply benefit from a more positive economic backdrop or simply better news out of quarterly results. Winnebago ([WGO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WGO&selected=WGO)) )In early June, shares of Winnebago soared after the company announced that sales in the all-important spring season were very robust. Management noted that demand for recreational vehicles was quite strong compared to a year ago, though below levels seen just a few years ago. The euphoria eventually faded, and shares have lost nearly -40% during the past three months.Winnebago's rebound may prove to be erratic. After all, the winter months can be fairly lean. But if investors start to see signs that the consumer is beginning to spend, then Winnebago will be seen as a prime beneficiary of an improving economy. It's important to remember that consumers that were relatively financially healthy heading into the downturn have also sharply boosted their savings rate. At some point, those consumers may feel comfortable treating themselves to high-ticket purchases.After the recent sell-off, shares now trade for about 20 times fiscal (August) 2011 forecasts, and more importantly, six times annual profits in the middle of the last decade when the industry was at its peak. Demand for RVs should eventually rise back to that peak, as the amount of baby boomers continues to grow. Assigning a multiple of 15 off of those peak earnings would push shares up to $30, nearly +200% above current levels. That price target is unlikely to be seen for several years, but for patient investors, Winnebago could be a real home run. A123 Systems (Nasdaq: AONE)This maker of advanced battery systems was initially a hot [IPO](http://investinganswers.com/term/initial-public-offering-ipo-1076) , but perhaps came out just a bit too early. The company posted several lackluster quarters after [going public](http://investinganswers.com/term/going-public-456) , sending shares down from $28 to under $8. Shares have started to rebound in recent sessions back up $10 as investors start to realize they were judging the company's results while the electric car market has yet to really take off. But it will. Soon after the Nissan leaf is released in late 2010, a slew of additional electric cars will hit the market from companies like Mitsubishi, Smart, Chrysler/Fiat and perhaps BMW.As investors start to re-focus on this potentially massive market, shares are likely to turn over a new leaf, perhaps back up above the $20 mark. The next few quarters will likely be lackluster for A123 Systems, so these shares will only benefit in a rallying market as investors once again focus on high-growth opportunities. Biodel (Nasdaq: BIOD)This medical device company holds a great deal of promise -- or at least it did until investors lost interest, pushing shares down from nearly $20 in the summer of 2008 to a recent $4. But a rebound may be in the offing.Biodel has developed a device that injects insulin into the bloodstream more rapidly than other approach. The device can automatically respond to blood glucose levels, regulating the amount of insulin required. After several years of anticipation, Biodel is moving closer to the regulatory finish line.The insulin device has had a very strong safety profile and has been quite effective in clinical trials. FDA approval could come late this year, and the company may sign key partnerships before then. Might shares once again re-visit those lofty levels seen back in 2008? Time will tell. Deer Consumer Products (Nasdaq: DEER)I've written about this company several times before, usually when management boosts guidance and extends a current share buyback. That's about all they can do to support the stock, which continues to find little love in this market, despite stellar growth prospects.Deer makes kitchen appliances for global brands like Stanley Black & Decker ([TK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TK&selected=TK)) ) , and is now ramping up domestic sales, steadily building its brand among Chinese consumers. The Chinese economy will likely cool off from its recent torrid pace, but the Chinese middle class looks set to keep expanding. Sales grew +86% in 2009 and look set to grow another +97% this year and +28% in 2011. Meanwhile, shares trade for little more than half their 52-week high, as China-based stocks of all stripes get heavily discounted in this market. Assuming shares trade up to 18 times 2011 profits, investors are looking at a two-bagger. Denny's (Nasdaq: DENN)Management at this restaurant chain has tried every trick in the book to boost sales, from special breakfast deals to two-for-one specials. But sales are still in a slump, after falling sharply over the last two years. Management may simply need to wait until consumers are spending again, at which time sales could rebound at a decent pace and profits at a more robust pace. This is a very high fixed-cost business, which historically has been marked by profits that grow twice as fast as sales.Investors don't need to see Denny's rebound all the way back to full health -- they simply need to start seeing more positive trends and then extrapolate future results from there.Even with the sales slump, Denny's remains profitable and trades for about six times next year's projected [EPS](http://investinganswers.com/term/earnings-share-eps-1003) of $0.43. Looking out several years, EPS could rebound to the $0.60 or $0.70 level. Slap a multiple of 10 on that and shares could rise to at least $6 -- double or triple current levels. Action to Take --> Winnebago, Denny's and Deer Consumer Products are unlikely to fall much further, even if the economy remains in a funk, thanks to supportive fundamentals. They each represent roughly +100% to +150% upside. Biodel and A123 Systems are more speculative and do have some downside risk, but also represent even sharper upside potential. A basket of these stocks stashed away for a while may prove to be a winning move. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/five-beaten-down-stocks-100-upside-potential-456415) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 27.3633 Stock Price 2 days before: 28.1806 Stock Price 1 day before: 28.2095 Stock Price at release: 28.0512 Risk-Free Rate at release: 0.0015	24.9144
Symbol: DENN Security: Denny's Corporation Related Stocks/Topics: DEER\|Markets\|TK\|WGO Title: Five Beaten-Down Stocks with +100% Upside Potential Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-03 03:59:00 Article: The coming months could prove to be an enticing time for investors. Many stocks are trading well off their highs under the assumption that the coming streams of economic data will prove to be disheartening. If we indeed are in for a tough slog in the months and quarters ahead, then many of these stocks could meander at their current cheap valuations. But even modestly good news on the economic front could sharply boost interest in stocks, as we may be looking at the beginning of a sustained economic upturn.We can use 2002 as a reference point. Prospects were glum and many stocks sported low [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) ratios. That set the stage for a powerful two-year run that pushed the S&P 500 up +23% in 2003 and +11% in 2004, while a range of individual stocks doubled off of their lows. With that in mind, here are some stocks that could sharply benefit from a more positive economic backdrop or simply better news out of quarterly results. Winnebago ([WGO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WGO&selected=WGO)) )In early June, shares of Winnebago soared after the company announced that sales in the all-important spring season were very robust. Management noted that demand for recreational vehicles was quite strong compared to a year ago, though below levels seen just a few years ago. The euphoria eventually faded, and shares have lost nearly -40% during the past three months.Winnebago's rebound may prove to be erratic. After all, the winter months can be fairly lean. But if investors start to see signs that the consumer is beginning to spend, then Winnebago will be seen as a prime beneficiary of an improving economy. It's important to remember that consumers that were relatively financially healthy heading into the downturn have also sharply boosted their savings rate. At some point, those consumers may feel comfortable treating themselves to high-ticket purchases.After the recent sell-off, shares now trade for about 20 times fiscal (August) 2011 forecasts, and more importantly, six times annual profits in the middle of the last decade when the industry was at its peak. Demand for RVs should eventually rise back to that peak, as the amount of baby boomers continues to grow. Assigning a multiple of 15 off of those peak earnings would push shares up to $30, nearly +200% above current levels. That price target is unlikely to be seen for several years, but for patient investors, Winnebago could be a real home run. A123 Systems (Nasdaq: AONE)This maker of advanced battery systems was initially a hot [IPO](http://investinganswers.com/term/initial-public-offering-ipo-1076) , but perhaps came out just a bit too early. The company posted several lackluster quarters after [going public](http://investinganswers.com/term/going-public-456) , sending shares down from $28 to under $8. Shares have started to rebound in recent sessions back up $10 as investors start to realize they were judging the company's results while the electric car market has yet to really take off. But it will. Soon after the Nissan leaf is released in late 2010, a slew of additional electric cars will hit the market from companies like Mitsubishi, Smart, Chrysler/Fiat and perhaps BMW.As investors start to re-focus on this potentially massive market, shares are likely to turn over a new leaf, perhaps back up above the $20 mark. The next few quarters will likely be lackluster for A123 Systems, so these shares will only benefit in a rallying market as investors once again focus on high-growth opportunities. Biodel (Nasdaq: BIOD)This medical device company holds a great deal of promise -- or at least it did until investors lost interest, pushing shares down from nearly $20 in the summer of 2008 to a recent $4. But a rebound may be in the offing.Biodel has developed a device that injects insulin into the bloodstream more rapidly than other approach. The device can automatically respond to blood glucose levels, regulating the amount of insulin required. After several years of anticipation, Biodel is moving closer to the regulatory finish line.The insulin device has had a very strong safety profile and has been quite effective in clinical trials. FDA approval could come late this year, and the company may sign key partnerships before then. Might shares once again re-visit those lofty levels seen back in 2008? Time will tell. Deer Consumer Products (Nasdaq: DEER)I've written about this company several times before, usually when management boosts guidance and extends a current share buyback. That's about all they can do to support the stock, which continues to find little love in this market, despite stellar growth prospects.Deer makes kitchen appliances for global brands like Stanley Black & Decker ([TK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TK&selected=TK)) ) , and is now ramping up domestic sales, steadily building its brand among Chinese consumers. The Chinese economy will likely cool off from its recent torrid pace, but the Chinese middle class looks set to keep expanding. Sales grew +86% in 2009 and look set to grow another +97% this year and +28% in 2011. Meanwhile, shares trade for little more than half their 52-week high, as China-based stocks of all stripes get heavily discounted in this market. Assuming shares trade up to 18 times 2011 profits, investors are looking at a two-bagger. Denny's (Nasdaq: DENN)Management at this restaurant chain has tried every trick in the book to boost sales, from special breakfast deals to two-for-one specials. But sales are still in a slump, after falling sharply over the last two years. Management may simply need to wait until consumers are spending again, at which time sales could rebound at a decent pace and profits at a more robust pace. This is a very high fixed-cost business, which historically has been marked by profits that grow twice as fast as sales.Investors don't need to see Denny's rebound all the way back to full health -- they simply need to start seeing more positive trends and then extrapolate future results from there.Even with the sales slump, Denny's remains profitable and trades for about six times next year's projected [EPS](http://investinganswers.com/term/earnings-share-eps-1003) of $0.43. Looking out several years, EPS could rebound to the $0.60 or $0.70 level. Slap a multiple of 10 on that and shares could rise to at least $6 -- double or triple current levels. Action to Take --> Winnebago, Denny's and Deer Consumer Products are unlikely to fall much further, even if the economy remains in a funk, thanks to supportive fundamentals. They each represent roughly +100% to +150% upside. Biodel and A123 Systems are more speculative and do have some downside risk, but also represent even sharper upside potential. A basket of these stocks stashed away for a while may prove to be a winning move. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/five-beaten-down-stocks-100-upside-potential-456415) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 2.60325 Stock Price 2 days before: 2.72583 Stock Price 1 day before: 2.72813 Stock Price at release: 2.69934 Risk-Free Rate at release: 0.0015	2.64997
Symbol: NG Security: NovaGold Resources Inc. Related Stocks/Topics: Markets Title: Natural Gas Daily Technical Outlook Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-08-03 07:38:00 Article: Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) Natural gas fell sharply overnight and the break of 4.784 support mixed out near term outlook. We'll turn neutral first. On the upside, above 5.007 resistance again will reaffirm the case that pull back from 5.196 is finished with three waves down to 4.288. In such case, further rise should be seen to retest 5.196 first. On the downside, however, break of 4.287 support will in turn indicate that fall from 5.196 has resumed for a test on 3.81 support.In the bigger picture, current development argues that fall from 6.108 is possibly completed at 3.81 after being supported by 61.8% retracement of 2.409 to 6.108 at 3.822. In other words, rebound from 2.409 might not be finished yet. Break of 5.672 projection level will argue that rise from 3.81 is developing into an impulsive move and is possibly resuming whole rise from 2.409 for another high above 6.108. However, break of 4.288 will revive the case that rebound from 2.409 is finished at 6.108 already. Further break of 3.81 will target 2.409 low. [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/03/15547.jpg) [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/03/15548.jpg) Stock Price 4 days before: 6.08777 Stock Price 2 days before: 6.26981 Stock Price 1 day before: 6.27487 Stock Price at release: 6.19543 Risk-Free Rate at release: 0.0015	7.33169
Symbol: RC Security: Ready Capital Corporation Related Stocks/Topics: Markets Title: North Atlantic Resources Up Nearly 12% as Makes New Gold Discovery on Foulalaba Permit, Southern Mali Type: News Publication: MTNewswires Publication Author: Unknown Date: 2010-08-04 03:26:00 Article: North Atlantic Resources Inc. (NAC.V) reported drill highlights from an eight-hole, 772 metre reconnaissance program of reverse circulation ([RC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RC&selected=RC)) ) drilling, 200 metres North of the Main Anomaly on its 100% owned FT Gold Project in Southern Mali.It said these holes targeted an area of anomalous gold in saprolite identified from auger drilling in May and June of 2010. RC drill highlights include 4 metres at 2.29 gpt Au in hole 10FLSRC-01, 64 metres at 2.50 gpt Au, including 6 metres at 24.54 gpt Au in hole 10FLSRC-02. This new area of gold mineralization has been named Foulalaba South by Company personnel. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited. Stock Price 4 days before: 6.97398 Stock Price 2 days before: 6.62989 Stock Price 1 day before: 6.64167 Stock Price at release: 6.85974 Risk-Free Rate at release: 0.0015	7.36
Symbol: PBI Security: Pitney Bowes Inc. Related Stocks/Topics: NFLX\|Markets\|KO\|AMZN\|JNJ\|RL Title: Market Wrap-Up for Aug.4 (JNJ, KO, BKS, PCLN, RL, AGU, APC, more) Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-08-04 04:09:00 Article: I'm not sure if anyone is noticing the pop in Priceline's ( PCLN ) stock this morning, up $50 following the company's earnings beat.Priceline does not pay a dividend at this time, but I wanted to focus on the manic way investors tend to look at momentum stocks and why long-term investors need to keep exposure to these plays at a smaller part of one's portfolio, if there is an aversion to taking on higher risk. The last time Priceline reported their results the stock ended up getting clocked by $30, taking the stock down below $200 a share. All of a sudden the company gets it all right this quarter and we see it up $50. Unless you possess a trader's edge and discipline to move in and out of stocks like this in a timely manner, there is little reason to stake your long-term dollars on stocks momentum traders bring loads of volatility to. Now, we will on occasion have a situation with a dividend stock, where things could blow up of course, but for the most part, traders are not playing the earnings game with the Johnson & Johnsons ([JNJ](http://www.dividend.com/dividend-stocks/healthcare/drug-manufacturers-major/jnj-johnson-and-johnson/)) ) and Coca-Colas ([KO](http://www.dividend.com/dividend-stocks/consumer-goods/beverages-soft-drinks/ko-coca-cola-co/)) ) of the world. Speaking of long-term dollars, there is a lot of chatter about Americans beginning to maybe save too much these days. Ignore all that nonsensical noise you hear and continue to put some of your hard-earned dollars away for your retirement. Don't end up like many who are set to rely on just one source of retirement income, which for a good majority will be Social Security.Getting back to today's market, Barnes & Noble ([BKS](http://www.dividend.com/dividend-stocks/services/specialty-retail-other/bks-barnes-and-noble/)) ) popped on news the company is exploring a sale. The stock recently approached all-time lows as the company misplayed an opportunity years ago to acquire Amazon.com ( AMZN ). Don't be tempted by BKS' nearly 8% dividend yield - that payout is certainly not sustainable, and we expect a dividend cut in the near future. The market clearly sees little upside for the book retailing market, thus the long-term fall in shares. Look no further than Blockbuster ignoring the changing market, allowing Netflix ( NFLX ) to come in and basically put the company in the huge bind they are in today. Elsewhere, shares of Polo Ralph Lauren ([RL](http://www.dividend.com/dividend-stocks/consumer-goods/textile-apparel-clothing/rl-polo-ralph-lauren/)) ) , Agrium ([AGU](http://www.dividend.com/dividend-stocks/basic-materials/agricultural-chemicals/agu-agrium/)) ) , and Anadarko Petroleum ([APC](http://www.dividend.com/dividend-stocks/basic-materials/independent-oil-and-gas/apc-anadarko-petroleum/)) ) rallied following those companies' reports. Pitney Bowes ([PBI](http://www.dividend.com/dividend-stocks/consumer-goods/business-equipment/pbi-pitney-bowes/)) ) went the other way after the company missed earnings estimates and guided lower. Despite another up day today, volume can not seem to break out and it remains a real mystery.Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 24.4101 Stock Price 2 days before: 24.6353 Stock Price 1 day before: 24.7784 Stock Price at release: 23.6465 Risk-Free Rate at release: 0.0015	20.0375
Symbol: NG Security: NovaGold Resources Inc. Related Stocks/Topics: Markets Title: Natural Gas Daily Technical Outlook Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-08-04 08:27:00 Article: Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) As discussed before, the sharp fall from 5.007 mixed up the near term outlook and we'll stay neutral first. On the upside, above 5.007 resistance again will reaffirm the case that pull back from 5.196 is finished with three waves down to 4.288. In such case, further rise should be seen to retest 5.196 first. On the downside, however, break of 4.287 support will in turn indicate that fall from 5.196 has resumed for a test on 3.81 support.In the bigger picture, current development argues that fall from 6.108 is possibly completed at 3.81 after being supported by 61.8% retracement of 2.409 to 6.108 at 3.822. In other words, rebound from 2.409 might not be finished yet. Break of 5.672 projection level will argue that rise from 3.81 is developing into an impulsive move and is possibly resuming whole rise from 2.409 for another high above 6.108. However, break of 4.288 will revive the case that rebound from 2.409 is finished at 6.108 already. Further break of 3.81 will target 2.409 low. [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/04/15603.jpg) [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/04/15604.jpg) Stock Price 4 days before: 6.21557 Stock Price 2 days before: 6.27487 Stock Price 1 day before: 6.19543 Stock Price at release: 6.35727 Risk-Free Rate at release: 0.0015	7.25151
Symbol: HLF Security: Herbalife Nutrition Ltd. Related Stocks/Topics: Markets Title: Traders see Herbalife holding gains Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-08-04 11:17:00 Article: Herbalife gapped higher on blowout results yesterday, and one investor is apparently confident that it will hold the gains. [HLF Chart](http://www.optionmonster.com/cms/commentary/images/hlf804.png) optionMONSTER's tracking systems detected the sale of about 3,000 September 50 puts on the herbal supplement maker for $1.15. Volume was more than 12 times open interest in the strike. HLF is down 1 percent to $54.38 in morning trading, but the stock is up 18 percent in the last month and hit a new all-time high yesterday after reporting its best quarter ever. Sales and earnings crushed forecasts, while management raised guidance and boosted the dividend.The company said it's benefiting from demand for weight-loss products, plus better customer acceptance and a new club format that's helping distrbutors increase sales.Today's put seller is betting that HLF will remain above $50 through expiration and, if right, will keep the premium received. Given that this price was the approximate location of resistance earlier in the year, this trader may be expecting support at that level.The transaction pushed total option volume in the stock to more than 5 times the average level, according to our screening programs.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 49.6711 Stock Price 2 days before: 49.9745 Stock Price 1 day before: 54.4461 Stock Price at release: 54.3976 Risk-Free Rate at release: 0.0015	56.6409
Symbol: BZH Security: Beazer Homes USA, Inc. Related Stocks/Topics: CBOE\|Markets\|CI\|COST\|H\|BIG\|DSX\|CAH Title: Opening View: DJIA Takes Aim at 10,700, But Jobs Data Is Looming Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-08-05 07:54:00 Article: The Dow Jones Industrial Average (DJIA) edged higher on Wednesday, as traders digested the latest employment data from ADP, but the blue-chip barometer was unable to topple growing resistance in the 10,700 region. The Dow appears poised to make another run at this round-number resistance today, as futures are pointing toward an opening gain of about 12.5 points. The S&P 500 Index (SPX), meanwhile, continues to trade above support in the 1,115 region, which is home to its 200-day moving average, while short-term resistance continues to cap the broad-market index in the 1,130 region. These technical hurdles may be difficult to overcome until Friday, as sentiment could be greatly impacted by today's report on weekly initial jobless claims. Furthermore, many market bulls may still be unwilling to take a solid position ahead of tomorrow's nonfarm payrolls report and the unemployment rate. On a final note, the CBOE Market Volatility Index (VIX) is still trading below its 200-day moving average, but the VIX refuses to stray far from this long-term trendline. If all goes well, we could see the "fear" index decline in the wake of this week's jobs data.In earnings news, Cardinal Health Inc. ([CAH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CAH&selected=CAH)) ) posted adjusted earnings from continuing operations of 50 cents per share in the latest quarter, as revenue rose to $24.46 billion. Analysts were expecting earnings of 49 cents per share on revenue of $24.64 billion. The company also raised its adjusted fiscal 2011 profit forecast to a range of $2.38 to $2.48 per share from its prior range of $2.35 to $2.45 per share. Wall Street is currently looking for $2.45 per share for the year. Elsewhere, Cigna Corp. ([CI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CI&selected=CI)) ) said that its second-quarter net profit fell to $294 million, or $1.06 per share, despite revenue rising to $5.35 billion. The company now estimates full-year adjusted earnings in a range of $4.10 to $4.40 per share.Finally, same-store sales are beginning to roll in from several retailers. Along those lines, Big Lots Inc. ([BIG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BIG&selected=BIG)) ) said that its same-store sales rose 3.8% in the second quarter, falling just shy of the company's forecast for a 4% to 5% rise. Also, Costco Wholesale Corp. ([COST](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=COST&selected=COST)) ) said that its same-store sales rose 6% for the second-quarter, topping the Wall Street estimate for a rise of 5.5%. Earnings Preview On the earnings front, Beazer Homes USA Inc. ([BZH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BZH&selected=BZH)) ), Diana Shipping Inc. ([DSX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DSX&selected=DSX)) ), DIRECTV ([DTV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DTV&selected=DTV)) ), Fuel Systems Solutions Inc. ([FSYS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FSYS&selected=FSYS)) ), Hyatt Hotels Corp. ([H](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=H&selected=H)) ), Liz Claiborne Inc. ([LIZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LIZ&selected=LIZ)) ), Playboy Enterprises Inc. ([PLA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PLA&selected=PLA)) ), Time Warner Cable Inc. ([TWC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TWC&selected=TWC)) ), Activision Blizzard Inc. ([ATVI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ATVI&selected=ATVI)) ) and Kraft Foods Inc. ([KFT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KFT&selected=KFT)) ) are scheduled to release their quarterly earnings report today. Keep your browser at [SchaeffersResearch.com](http://www.schaeffersresearch.com/) for more news as it breaks. Economic Calendar The weekly report on initial jobless claims will be released on Thursday. On Friday, the Labor Department will release the month's highly anticipated nonfarm payrolls and unemployment reports. Market Statistics Equity option activity on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) saw 1,146,541 call contracts traded on Wednesday, compared to 648,519 put contracts. The resultant single-session put/call ratio arrived at 0.57, while the 21-day moving average slipped to 0.59. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100805ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100805ov2.gif)The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher. [Dow, S&P and Nasdaq futures](http://www.schaeffersresearch.com/images/commentary/2010/100805ov3.gif) Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up [here](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=O&CODE=SIRG07D) for free daily delivery, straight to your inbox, before the opening bell. Overseas Trading Overseas trading has a positive bias this morning, as seven of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a gain of 0.46%. Trading in Asia finished mixed, as key indexes in Japan and Australia advanced, but Chinese markets fell after Beijing ordered new bank stress tests and tightened mortgage rules. At last check, European shares were headed higher after the Bank of England left its key interest rate alone. The European Central Bank's decision is slated for later this morning. Overseas market information comes to you courtesy of [Schaeffer's Daily Bulletin](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=D&CODE=UB08FREE14) . [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100805ov4.gif)Currencies and Commodities The U.S. Dollar Index has resumed its trek lower this morning, though the index is still holding above support in the 80-80.50 region. Heading into the open, the index is off 0.30% at 80.65. Elsewhere, crude futures are pulling back this morning, as traders remain skittish ahead of today's report on weekly initial jobless claims. In electronic trading, the front-month crude contract is down 37 cents at $82.10 per barrel. Finally, the front-month gold contract continues to meet with resistance near $1,200 an ounce. In London, gold futures are up $2.40 at $1,198.30 an ounce. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100805ov5.gif)**Unusual Put and Call Activity:For an explanation of how to use this information, check out our [Education Center](http://www.schaeffersresearch.com/schaeffersu/) topics on [Option Volume](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?ID=220#220) and [Open Interest Configurations](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?id=221) . [Unusual options activity - puts](http://www.schaeffersresearch.com/images/commentary/2010/100805ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100805ov7.gif) [Follow Schaeffer's to the San Francisco MoneyShow Aug. 19 -- 21, 2010! Click here for details, including a list of scheduled presentations and how to register.](http://www.schaeffersresearch.com/edge/road.aspx)** All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 4.24606 Stock Price 2 days before: 4.38177 Stock Price 1 day before: 4.3765 Stock Price at release: 4.21184 Risk-Free Rate at release: 0.0015	4.34095
Symbol: NG Security: NovaGold Resources Inc. Related Stocks/Topics: Markets Title: Natural Gas Daily Technical Outlook Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-08-05 08:20:00 Article: Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) We're staying neutral on Natural gas for the moment as near term outlook is a bit mixed. On the upside, above 5.007 resistance again will reaffirm the case that pull back from 5.196 is finished with three waves down to 4.288. In such case, further rise should be seen to retest 5.196 first. On the downside, below 4.625 minor support will flip intraday to the downside. Further break of 4.287 support will in turn indicate that fall from 5.196 has resumed for a test on 3.81 support.In the bigger picture, current development argues that fall from 6.108 is possibly completed at 3.81 after being supported by 61.8% retracement of 2.409 to 6.108 at 3.822. In other words, rebound from 2.409 might not be finished yet. Break of 5.672 projection level will argue that rise from 3.81 is developing into an impulsive move and is possibly resuming whole rise from 2.409 for another high above 6.108. However, break of 4.288 will revive the case that rebound from 2.409 is finished at 6.108 already. Further break of 3.81 will target 2.409 low. [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/05/15653.jpg) [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/05/15654.jpg) Stock Price 4 days before: 6.26981 Stock Price 2 days before: 6.19543 Stock Price 1 day before: 6.39543 Stock Price at release: 6.43843 Risk-Free Rate at release: 0.0015	7.46364
Symbol: ODP Security: The ODP Corporation Related Stocks/Topics: Markets\|GPC Title: FBR Capital Cuts its Earnings Estimates for Staples (SPLS) Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-08-05 09:29:00 Article: Office supply giant Staples, Inc. ([SPLS](http://www.dividend.com/dividend-stocks/services/specialty-retail-other/spls-staples/)) ) saw its earnings estimates reduced on Thursday by analysts at FBR Capital Markets.The firm maintained its "Underperform" rating on SPLS, as well as its $17 price target. That target represents a potential 16% downside to the stock's Wednesday closing price of $20.14. An FBR analyst commented, "We reduce estimates for Underperform-rated Staples, SPLS. This is on the heels of industry trends and the results out of peers Office Depot ([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) ) (Outpeform), OfficeMax ([OMX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OMX&selected=OMX)) ) (Market Perform), United Stationers (Nasdaq: USTR) (Market Perform), and Genuine Parts Company ([GPC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GPC&selected=GPC)) ) (Underperform), which operates the S.P. Richards office wholesale business."Continuing, "We lower our 2010E EPS estimate to $1.30 from $1.34, and this compares with the Street consensus EPS estimate of $1.34. For 2011E, we lower our EPS estimate to $1.45 from $1.50, and this is below the Street consensus EPS estimate of $1.62. For 2Q10, we maintain our EPS estimate of $0.19, and the Street currently stands at $0.20 for 2Q."Staples shares were mostly flat in premarket trading Thursday. The Bottom Line We have avoided shares of Staples since our early June 2008 coverage began, when the stock was trading at $23.23. The company has a dividend yield of 1.79%, based on last night's closing stock price of $20.14. The stock has technical support in the $18 price area. If the stock can continue to firm up, we see overhead resistance around the all-time high levels of $21-$23 a share. We would remain on the sidelines for now.Staples, Inc. ([SPLS](http://www.dividend.com/dividend-stocks/services/specialty-retail-other/spls-staples/)) ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 4.37653 Stock Price 2 days before: 4.74672 Stock Price 1 day before: 4.71859 Stock Price at release: 4.72996 Risk-Free Rate at release: 0.0015	4.01185
Symbol: PRDO Security: Perdoceo Education Corporation Related Stocks/Topics: Markets Title: Bullish Career Education (CECO) call volume amid stock decline Type: News Publication: Karla Yeh Publication Author: Unknown Date: 2010-08-06 04:17:00 Article: Despite a better-than-expected earnings announcement last night, shares of Career Education Corp. (NASDAQ:C ECO ) are plummeting on the day Friday. One reason for this decline could be a sector-wide downgrade from Jeffrey Silber of BMO Capital Markets; Silber cut the sector to "market perform" from "outperform." CECO announced on Thursday its receipt of U.S. Senator Tom Harkin's information request to investigate deceptive practices across for-profit school recruiting processes. Options action on the tape suggests one investor expects the stock to climb significantly during the long term.CECO declined more than 6%, or $1.35, to $20.55 during afternoon trading. The stock is reverting to the low level it saw at the beginning of July, and trading around 12% higher than its 52-week low of $18.21. The January 2011 26 calls were active during Friday's trading session due to an investor who appears to have paid a hefty amount to bet on upside. These out-of-the-money calls changed hands for $1.30 per contract, which was right at the ask price when the volume hit the tape. A block totaling 3,750 hit the tape versus current open interest of 544 contracts. This options action suggests the investor committed a total of $487,500 to open these long call positions. The investor loses the entire premium paid if the stock is still trading lower than the strike price at January 2011 expiration. If CECO shares are trading higher than the breakeven level of $27.30, the investor could theoretically make unlimited profits if the stock continues to the upside.This long call position banks on a 36% rally in the stock during the next six months. However, if volatility kicks in and the price of the calls appreciates with or without a big move in the stock, the investor could choose to take profits and sell the calls back instead of holding them until expiration.Long call positions such as this are similar to long stock trades, but the options play limits risk to the premium paid. For a visual of the risk/reward dynamics of this long call and other stock and option strategies, open a free [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) virtual trading account . Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0014	0
Symbol: CET Security: Central Securities Corp. Related Stocks/Topics: AGO\|Markets\|EQS Title: Why "Buy and Hold" is Dead -- and 3 Different Strategies to Try Today Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-06 12:50:00 Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photoThere are so many crosscurrents in the U.S. [economy](http://investinganswers.com/term/economy-1517) right now that the stock market has no idea where it wants to go. Every trading day, we get a new set of items to digest that sets a short-term trend for the market. As a result, investors should be holding a portfolio comprised of both long-term holdings and short-term plays affected by the market's near-tem gyrations. Here's a look at my three favorite trading styles. 1.Watch the volume Trading volume -- for a particular stock or the whole market -- is a key tell. Generally speaking, a stock that is selling down on average or larger-than-average volume should be of real concern. This tells me that an ample number of investors see problems coming. But any stock that is falling on lighter-than-usual volume could set up an attractive opportunity, because low volume indicates apathy rather than any real underlying problems.Often times, a stock just moves out of the spotlight and few buyers are around to support it. This often happens after a stock has had nice run and is simply tired. I occasionally screen for stocks that have fallen more than -20% in the past three months on low volume. Investors can easily get daily volume figures on Yahoo! Finance. The main drawback to this approach is that shares may stay out of the spotlight even longer, meaning you'll need patience to see a rebound.As an example, shares of Assured Guaranty ([AGO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AGO&selected=AGO)) ) , a [municipal bond](http://investinganswers.com/term/municipal-bond-125) insurer, saw its shares drift lower on decreasing volume in June. Trading volumes that month were roughly half of May's numbers, and shares lazily drifted toward their 52-week low as we moved into July. But the company posted stellar quarterly results Thursday evening, pushing shares up nearly +10% in Friday trading. It seems that sell-off was simply a result of apathy rather than a signal something was seriously wrong.This also applies to the broader stock market. If the market is steadily falling on lighter-than-usual volume, then we're simply seeing buyer fatigue rather than a heavy amount of sellers. Conversely, rising volumes and sinking indexes are often a sign of more pain to come. 2. The closed-end fund gap All closed-end mutual funds trade for a price that is distinct from the actual underlying values of the fund's holdings. On rare occasion, funds will trade at a slight premium to the [Net Asset Value](http://investinganswers.com/term/net-asset-value-155) ([NAV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NAV&selected=NAV)) ) of those funds, but most of the time, they will trade at par or at a slight discount. But occasionally a [closed-end fund](http://investinganswers.com/term/closed-end-fund-1082) will start to trade at an increasingly large discount to [NAV](http://investinganswers.com/term/net-asset-value-155) , which is more of a function of disinterest in the fund rather than any stress in the underlying portfolio. Investors can target funds selling at the sharpest discount to NAV , and make some nice short term gains before others notice the disconnect and bid the fund back up. Investors can easily screen for funds trading at a sharp discounts to [NAV](http://investinganswers.com/term/net-asset-value-nav-367) on websites like fundsdata.com. A recent screen showed that funds like Equus Total Return ([EQS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EQS&selected=EQS)) ) and Central Securities Corp. ([CET](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CET&selected=CET)) ) are trading at considerable discounts to their NAVs. 3. The Oversolds This is a recap of [a strategy I discussed](http://www.investinganswers.com/a/one-way-catch-falling-knife-1255) at InvestingAnswers.com in early June when discussing Priceline.com (Nasdaq: PCLN) . That company's shares had plunged to around $185 but now flashed a clear buy signal. (Shares surged $50 on Wednesday and now approach $300, just two months later).That buy signal: analyst sentiment. Hedge funds and mutual funds had just dumped shares aggressively, but an increasing number of analysts were coming out of the woodwork to say shares were oversold. Near the end of that article, I noted that "As the analyst chorus becomes more positive, the stock chart should soon follow."My concluding paragraph sums up this strategy best:"Wall Street pros often have a surprisingly simple approach that any individual investor can replicate. They find stocks that are farthest from their price targets, and then simply wait until the sellers have been flushed out of the stock. When they see the targeted stock moving sideways for several sessions, they pounce. Indeed, many of the same funds that sold Priceline.com back at $250 probably find shares more appealing now that they're close to $180, and they'll be looking to buy back in." Once again, investors can easily find average price targets on Yahoo! Finance in the Analyst Opinion section. Action to Take --> These are just some of the many short-term and mid-term strategies that can be deployed. In a market like this, investors should be constantly trolling for new ideas and becoming familiar with various screening tools. Whether it's a stock trading off but on low volume, closed-end funds trading at sharp discounts to their NAVs, or stocks well below the average analyst price target, intriguing investment ideas can be found if you look for them. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/why-buy-and-hold-dead-and-3-different-strategies-try-today-456428) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 19.1495 Stock Price 2 days before: 19.1675 Stock Price 1 day before: 19.1283 Stock Price at release: 18.9985 Risk-Free Rate at release: 0.0014	18.8609
Symbol: BZH Security: Beazer Homes USA, Inc. Related Stocks/Topics: PHM\|Markets Title: Homebuilders lead bullish activity Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-08-09 02:18:00 Article: Beazer Homes and PulteGroup saw heavy call buying on Friday, suggesting that the bulls are house hunting this summer.Calls outnumbered puts by more than 4 to 1 among homebuilders, the most bullish activity among any industry group in the session, according to our Heat Seeker monitoring system. [BZH Chart](http://www.optionmonster.com/cms/commentary/images/bzhpre809.png) Investors snapped up 7,000 November 5 calls on BZH for $0.30 to $0.35, with most of the contracts pricing at the upper end of the price range. They also sold about 2,000 November 4 puts for $0.55. The shares, down 38 percent from their peak on May 1, fell 1.46 percent to $4.06 on Friday.In PHM, they purchased the January 2012 12.50 calls, mostly for $0.90, and the October 10 calls, mostly for $0.27. Almost 11,000 contracts traded between the two strikes. The stock closed up 1.29 percent at $8.67.The trading was noteworthy because BZH and PHM led the charge. Those names are usually in the middle of the most-active list for the sector.Both companies have significantly underperformed the broader homebuilding sector over the last three months and have been heavily targeted by the bears. Short interest in BZH, for instance, represented a hefty 35 percent of the float as of July 15, and in PHM it was 16 percent.The call buying in BZH came one day after the company reported a wider-than-expected loss. Last Wednesday PHM earnings and revenue both exceeded analysts' forecasts. (A version of this post appeared on InsideOptions Friday. Chart courtesy of tradeMONSTER.) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 4.21208 Stock Price 2 days before: 4.06836 Stock Price 1 day before: 4.09656 Stock Price at release: 4.09748 Risk-Free Rate at release: 0.0014	4.2634
Symbol: CYD Security: China Yuchai International Limited Related Stocks/Topics: Markets Title: What bear is seeing in China Yuchai Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-08-09 02:18:00 Article: China Yuchai has been climbing into potentially difficult technical territory, and one investor is positioning for a drop before next week's earnings report.optionMONSTER's Depth Charge tracking system detected the purchase of 6,500 September 17.50 puts on the diesel-engine maker for $0.85. At the same time, equal-sized blocks of the September 20 calls and the September 15 puts were sold for $0.60 and $0.15, respectively. [CYD Chart](http://www.optionmonster.com/cms/commentary/images/cydpre809.png) CYD rose 0.69 percent to $18.95 on Friday and is up 19 percent in the last month. The company's profit more than doubled the last time it issued financial results on May 13, driven by a 76 percent revenue surge and a more profitable mix of products sold.Despite the good news, the stock suffered a sharp reversal that day. It failed to hold early gains and wound up losing 9 percent of its value on heavy volume. The move resulted in a so-called bearish "engulfing candlestick" pattern, which can serve as resistance long into the future.The option trade positioned for a correction as CYD drifted back into that same price range. It cost a net $0.10 to implement and will earn a maximum profit of 2,400 percent if the stock closes at or below $15 on expiration.If done in isolation, the trade would lose money on a close above $20. However, it could have been implemented as a protective strategy by a shareholder who's willing to sell the stock for that price if it moves above that level.The company will report earnings overnight between sessions on Tuesday and Wednesday. Overall option volume in the name was 48 times greater than average in Friday's session.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 18.6274 Stock Price 2 days before: 18.9064 Stock Price 1 day before: 19.0457 Stock Price at release: 19.0503 Risk-Free Rate at release: 0.0014	17.2998
Symbol: NUS Security: Nu Skin Enterprises, Inc. Related Stocks/Topics: SLB\|Markets\|HAL\|HL\|NEM\|TSLA Title: John Licata: Consolidation Coming to All Commodities Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-08-09 04:20:00 Article: John Licata: Consolidation Coming to All Commodities Source: Brian Sylvester of [The Gold Report](http://www.theaureport.com/) 08/09/2010[http://www.theaureport.com/cs/user/print/na/7023](http://www.theaureport.com/cs/user/print/na/7023)[Image](http://img.ibtimes.com/www/data/articles/full/2010/08/09/15884.jpg) "It's no longer just an energy market. It's no longer just a metals market. It's just one commodities market," says John Licata, chief commodity strategist at Blue Phoenix, Inc. John thinks that the lines between commodities will continue to blur as companies diversify their metals and minerals holdings. He also thinks gold will approach $1,375 by year-end, and that a major uranium producer will soon be snapped up by Asian interests. It's all in this exclusive interview with The Gold Report. The Gold Report: The price of gold fell almost 5% in July. Do you think this is the time to buy? Or is it a sign the economy has found its feet and that maybe it's time to lighten your gold portfolio? John Licata: I think this is a great time to get back into the [gold market](https://www.nasdaq.com/market-activity/commodities/GCCMX) The recent slide is a buying opportunity. We are still facing a very challenging economic environment as evidenced by recent remarks by various U.S. Federal Reserve speakers, including Chairman Ben Bernanke. I think the concerns regarding deflation are completely overblown. The fact that we're seeing higher energy prices is an inflationary tidbit that's getting left on the sidelines by investors. Higher inflation will definitely lift gold prices, and the renewed strength in the euro vs. the dollar is a bullish factor for gold prices too. And we're quickly approaching Indian wedding season, which starts in September; that has historically been a bullish time for gold prices. And, in recent years, many of the gold producers have not really had any big finds, which also bodes well for gold because there is less gold to go around. TGR: Will the senior producers look to takeovers to boost their gold reserves?JL: I think adding capacity through mergers and acquisitions (M&A) can be cheaper than finding more gold. Commodities in general have become a unified marketplace. By that, I mean the opportunities to increase capacity, reserves or output are better served through M&A.When [Barrick Gold Corporation (NYSE:ABX; TSX:ABX)](http://www.theaureport.com/cs/user/print/co/20) announced late last year that they would spend billions to buy back their hedge book, I think that indicated the gold price would continue to move higher. If the largest gold producer on the planet is getting rid of its hedges, obviously there is much more upside opportunity in the gold price. TGR: Do you see some specific takeover targets out there?JL: It's my opinion that [NovaGold Resources Inc. (NYSE.A:NG; TSX.V:NG)](http://www.theaureport.com/cs/user/print/co/16) is a takeover target. If companies like Barrick or [Newmont Mining Corp. ( ](http://www.theaureport.com/cs/user/print/co/457) [NEM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NEM&selected=NEM) ) are looking to expand their portfolios, I think that NovaGold, with its Donlin Creek and Galore Creek gold projects, becomes even more attractive in a rising economy. I think companies making acquisitions are more open to diversifying their portfolios. It's not so farfetched to see a company like [Lonmin plc ( ](http://www.theaureport.com/cs/user/print/co/2261) [LMNIY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LMNIY&selected=LMNIY) ) , which is based overseas, getting involved in the Canadian or the North American gold markets. I wouldn't be surprised to see uranium companies purchasing gold assets given that uranium has been stagnant for the last couple of years.Diversification will be key. Companies that did not have diversification in their portfolios will look for more diversification. I think NovaGold presents a very compelling opportunity, both from a valuation and asset-play perspective. TGR: Will some suitors stay away from NovaGold because of potential permitting problems, given that their main project is in Alaska and has a fair number of opponents?JL: No, I don't think so. And unlike the oil industry, the repercussions to the environment are greatly lower for mining than for offshore drilling. Right now, it takes many years to go through the permitting process. I think a lot of that has been improving. Alaska is a very interesting place because of its rich mineral deposits, as well as the oil that's there. A lot of commodities have become intertwined. I wouldn't be surprised if you saw a lot of different, unique, joint ventures going forward. And I don't think Alaska is going to be left in the cold. TGR: In 2009, you called for $1,200 gold, and it hit $1,227 in December. How high are you willing to go this time around? And what's the timeframe? JL: I have a $1,375 target on gold this year; it's a forecast I put out at the beginning of 2010. I'm still very comfortable with that forecast. We still have a long way to go before the end of the year. The fact that gold prices are still high compared to historical standards means that we've had an opportunity to sell off multiple times in recent months. Yet, we've always managed to find gold buyers on dips, and we're still hovering around $1,200. I think the sellers had their chance to drive down the price of gold and they're out. The 5% decline that we've seen in the gold price was not met by increased selling pressure-it was met by buyers looking for a cheap way to play the yellow metal. That $1,375 is still very much achievable this year. TGR: What other gold companies have piqued your interest?JL: Interestingly enough, I came across a company called [Nautilus Minerals Inc. ( ](http://www.theaureport.com/cs/user/print/co/411) [NUS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NUS&selected=NUS) ) , and I thought it was really, really fascinating considering that it's mining minerals offshore. We often speak of offshore drilling as it applies to oil and gas, but you can use similar technology for deepwater metals mining. TGR: They haven't started mining yet, though?JL: Possibly by the end of this year, whether we're talking about offshore Papua New Guinea or New Zealand, they could have some positive assessments on some of their mineral properties that could perhaps attract JVs with companies like [Halliburton Co. ( ](http://www.theaureport.com/cs/user/print/co/2383) [HAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HAL&selected=HAL) ) or [Schlumberger Ltd. ( ](http://www.theenergyreport.com/cs/user/print/co/2037) [SLB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLB&selected=SLB) ) . And maybe one of those companies could apply the same technology and expertise they have developed in offshore oil and gas drilling. TGR: I should let our readers know that we're talking about the Solwara 1 in Papua New Guinea. It's a high-grade gold deposit that's around 4,500 feet below surface in the Pacific Ocean. To me, that seems fraught with unnecessary risk. Why do you like it given all that risk?JL: Well, I think the permitting process has become more favorable for Nautilus in those regions. The new technology that Nautilus has developed to drill on the ocean floor-I believe it was 80 meters-makes this a much more attractive story. A lot of competitors have said they're going to enter this space, but I think Nautilus is ahead of them by a few years. The fact that companies like [Teck Resources Ltd. (NYSE:TCK; TSX:TCK.A; TSX:TCK.B)](http://www.theaureport.com/cs/user/print/co/543) and [Anglo American plc ( ](http://www.theaureport.com/cs/user/print/co/544) [AAUK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AAUK&selected=AAUK) ) are shareholders in Nautilus is very significant. What this company is embarking on could forever change the landscape of mining as we know it. TGR: I agree, but I think it's much easier to bring liquids or gases to the surface vs. solids. What are some other gold plays you're following?JL: In the past, I've talked about [Fronteer Gold Inc. (TSX:FRG; NYSE.A:FRG)](http://www.theaureport.com/cs/user/print/co/64) ; that's a company I am still enthusiastic about. I like the fact that they have exposure to uranium and I have had the pleasure of meeting management on several occasions. I am confident in their ability to execute their strategy. I think that from a valuation perspective, this company has a lot of upside. TGR: You mentioned management. When you analyze different companies, where do you rank management?JL: Management is very high in my list. As an analyst, I think I need to go the next step to find out what makes a company tick; it's my opinion that management is the heart and soul of a company. If they're not able to share their story or execute on a game plan, then that management should be replaced-as we have recently seen with [BP (NYSE:BP; LSE:BP)](http://www.theaureport.com/cs/user/print/co/2263) replacing Tony Hayward with Robert Dudley. There's a very low tolerance for failure at the corporate level. It's extremely important to have a capable management team that instills confidence in not only shareholders but in analysts like myself. TGR: What do you think of NovaGold's management?JL: I am actually meeting with NovaGold president and CEO Rick Nieuwenhuyse next week in New York. I think Rick has done a great job of assembling a solid institutional base. Hedge Fund Manager John Paulson made an investment several months ago. Rick was very-what's the right word?- persistent in his pursuit of establishing a group of shareholders that thinks long term. He's done a good job of getting in front of Wall Street. I am looking forward to meeting him in person. TGR: What are your thoughts on silver versus gold?JL: It's funny, we talk about gold so much but we don't hear anything about silver. I think silver is very interesting from a historical perspective and how it has traded in concert with gold. In my eyes, silver is the evil stepchild of gold; and if gold prices move towards that $1,375 level, it's hard not to think that silver prices will go along for the ride. If you believe that we're going to have an economic recovery, then you have to look at silver because silver is used in so many products and new technologies. TGR: Are there some silver companies that you like?JL: I've always liked [Hecla Mining Co. ( ](http://www.theaureport.com/cs/user/print/co/10) [HL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HL&selected=HL) ) . It's unfortunate that investors have challenged them because of their location-its stock is down about 20% year to date. If you want some exposure to asset plays in Mexico, Hecla Mining could be a very interesting name.In the past, I've talked about [Pan American Silver Corp. (TSX:PAA; NASDAQ:PAAS)](http://www.theaureport.com/cs/user/print/co/521) -another name that's down for the year-but it pays a small dividend. It is considered one of the bellwethers of the silver group. When you have a company that is perceived to be a major silver player with a market cap of only $2.6 billion, it makes me think the consolidation that I mentioned earlier is going to be felt across the entire commodities spectrum. TGR: Moving to other precious metals, platinum and palladium prices move in tandem with global auto sales due to the amount of these metals used in catalytic converters. What are the prospects for those metals in light of the current global economic climate?JL: I think palladium could see more upside. Many auto companies are moving toward cleaner standards in terms of emissions. That benefits palladium and platinum. Over the next couple of years, the entire auto market is going to change. A testament to that is that [Tesla Motors, Inc. ( ](http://www.theenergyreport.com/cs/user/print/co/2600) [TSLA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSLA&selected=TSLA) ) , an electric car company, just went public. I think companies that use palladium and platinum for catalytic converters are going to vie for supply contracts. Unlike the energy sector wherein there is an excess supply of natural gas, there is a very limited global supply of platinum and palladium. TGR: What are some platinum and palladium companies you like?JL: [Stillwater Mining Company ( ](http://www.theaureport.com/cs/user/print/co/617) [SWC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SWC&selected=SWC) ) is a name I have talked about for a few years. They have a very interesting opportunity to change their game plan at this point; because at the end of 2010, their contract with Ford expires. I guess they were able to cultivate a new approach with General Motors, and they were successful. I think Wall Street was waiting for them to do the same with Ford. If the Ford deal does not go through, I believe the company can still be quite successful because many Japanese automakers would probably jump at the chance to have Stillwater supply their much-needed platinum and palladium. Stillwater is one of the most dominant players in those metals in North America. TGR: What other metals show some potential?JL: I think uranium is a forgotten metal. This goes back to what I mentioned earlier-it's no longer just an energy market. It's no longer just a metals market. It's just one commodities market. Uranium is a fascinating story-if we're talking about building nuclear reactors and having cleaner, more efficient energy sources, uranium falls into the category of metals that can do very well going forward. TGR: Any companies in that space that you're particularly interested in?JL: [Cameco Corp. (NYSE:CCJ; TSX:CCO)](http://www.theaureport.com/cs/user/print/co/173) is a company that, in the past, has been an M&A-opportunity hunter. It's my view that the hunter will become the hunted, and I wouldn't be surprised if we see an Asian company look at Cameco as a very attractive takeover target. TGR: You think Cameco will be taken over?JL: Yep. TGR: That would be remarkable; that's a major uranium producer. JL: Yes, it's a major. For the last few years, the company's share price has been somewhat suppressed because people wanted to determine the fallout from Cigar Lake's underground flooding. Now that the company is closer to putting that behind it, foreign companies looking to beef up their uranium presence will be much more receptive to looking it. Because Asian investors were so enthusiastic to purchase Canadian oil sands assets, I think there will be a run at Cameco now. A deal could face large regulatory challenges, but I think Cameco is a takeover target. TGR: Well, that's certainly some interesting speculation. Any thoughts you would like to leave us with today?JL: I will say when it comes to metals-and I've said this before-China is not the saving grace for commodities. If you plan to get into any metal based on China's prospective growth, I just don't think that's the right strategy. I think you need to look at commodities from a global perspective; and while it's great that China is improving, any slowdown in the Chinese market will have an enormous ripple effect throughout the rest of the world. But that doesn't mean the rest of the world economies won't grow and come out of what is arguably the worst recession since the Great Depression.John J. Licata is chief commodity strategist at [Blue Phoenix, Inc.](http://www.bluephoenixinc.com/) , an energy/metals independent research and consulting firm based in New York City. He has appeared regularly in the media (CNBC, Bloomberg TV/Radio, Business News Network, Barron's, etc.) over the years for his insights and forecasts in the commodity spectrum.After studying economics and graduating from Saint Peter's College (where he received The Wall Street Journal Award for economic excellence), Licata set his sights on Wall Street. During his more than 15-year career, John has held both trading and research positions on the NYMEX, Dow Jones and Smith Barney. Early in 2005, he founded Blue Phoenix, a leading independent research and consulting firm focused on energy and metals. John is also the Editor of The Commodity Chronicles, the Blue Phoenix energy and metals newsletter ([click here to receive a 30-day trial membership](http://bluephoenixinc.com/subscribe/)) ). John is currently in the EMBA program at New York University's Stern School of Business, and was recently voted "Up and Comer Natural Gas Analyst" in the 2010 Institutional Investor All-America Research Team Poll. You can follow John on [Twitter](http://twitter.com/bluephoenixinc) and [LinkedIn](http://www.linkedin.com/pub/john-licata/1a/a00/a72) .Want to read more exclusive Gold Report interviews like this? [Sign up](http://www.theaureport.com/cs/user/print/htdocs/38) for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our [Expert Insights](http://www.theaureport.com/pub/htdocs/exclusive.html) page. DISCLOSURE:1) Brian Sylvester of The Gold Report conducted this interview. He personally and/or his family own none of the companies mentioned in this interview.2) None of the companies mentioned in the interview are sponsors of The Gold Report: None.3) John Licata-I personally and/or my family own the following companies mentioned in this interview: None. I personally and/or my family am paid by none of the companies mentioned in this interview: None.Streetwise - [The Gold Report](http://www.theaureport.com/) is Copyright © 2010 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.The GOLD Report does not render general or specific [investment advice](https://www.nasdaq.com/education/stock-market-where-buyers-and-sellers-meet) and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report. From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.Participating companies provide the logos used in The Gold Report. These logos are trademarks and are the property of the individual companies.Streetwise Reports LLCP.O. Box 1099Kenwood, CA 95452Tel.: (707) 282-5593Fax: (707) 282-5592Email: [[email protected]](mailto:[email protected]) Stock Price 4 days before: 28.4591 Stock Price 2 days before: 28.2165 Stock Price 1 day before: 28.3723 Stock Price at release: 28.3867 Risk-Free Rate at release: 0.0014	26.2055
Symbol: NBR Security: Nabors Industries Ltd. Related Stocks/Topics: RIO\|Markets\|BP\|RIG Title: Oil Rises as Investors Eye Fed Moves to Boost Economy; Gold Higher Type: News Publication: MTNewswires Publication Author: Unknown Date: 2010-08-09 07:57:00 Article: Oil prices are up in early morning trade, lifted by improved sentiment about the U.S. economy in particular as analysts look to a statement from the Federal Reserve after its FOMC meeting Tuesday afternoon. Expectations are high that the Fed could press forward with easing measures to encourage economic growth as the job market remains sluggish.As for gold, it too is up as the dollar continues to lose ground against major currencies on the one hand, and speculation grows that the Fed will shore up bonds to bolster the U.S. economy. At 0750 ET, Brent crude is up 1.2% at $81.12 a barrel, while light sweet crude is up nearly 1.0% at $81.49 a barrel, while natural gas is up 0.3% at $4.48 a million British thermal units.Gold is up 0.3% at $1,209.20 an ounce, while silver is up 0.1% at $18.49 an ounce, and copper is 1.1% higher at $3.38 a pound.BP plc ([BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP)) ) said that costs for cleaning up and compensation for the Gulf of Mexico oil spill has risen to $5.1 billion. Meanwhile, London's Sunday Times reported that an internal audit it had obtained details severe safety flaws months before the worst environmental disaster in U.S. history. The paper said that the audit details how the rig owned by Transocean Ltd ([RIG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RIG&selected=RIG)) ) did not comply with BP's standards. Both BP and Transocean are up on the NYSE, however, as BP reported over the weekend that a test on a cementing operation needed to plug the well was successful.Land rig contractor Nabors Industries Ltd ([NBR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NBR&selected=NBR)) ) has bought out oilfield services group Superior Well Services Inc ([SWSI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SWSI&selected=SWSI)) ) for about $900 million in cash. Nabors will pay $22.12 for each Superior share, marking a 21% premium over the company's closing price Friday on Nasdaq.In the mining sector, Iron Ore Holdings Ltd ([IOH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IOH&selected=IOH)) ) said it terminated its agreement to sell Rio Tinto LTd ([RIO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RIO&selected=RIO)) ) ore from its Phil's Creek project that was outlined last December. In a statement, IOH said that the two companies had not agreed to terms of access to Rio Tinto's Yandicoogina site in Western Australia. Shares in Lonmin plc ([LMI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LMI&selected=LMI)) ) are up after London's Daily Mail reported reported that Xstrata plc ([XTC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=XTC&selected=XTC)) ) could revive a takeover bid for the company. Lonmin is up over 1.7% in London trade. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited. Stock Price 4 days before: 18.3134 Stock Price 2 days before: 17.9183 Stock Price 1 day before: 18.0876 Stock Price at release: 18.0963 Risk-Free Rate at release: 0.0014	17.0266
Symbol: NBR Security: Nabors Industries Ltd. Related Stocks/Topics: BP\|Markets\|RIG Title: Sector Update: Energy Type: News Publication: MTNewswires Publication Author: Unknown Date: 2010-08-09 08:01:00 Article: Energy issues are up before the bell, as oil prices continue to gain strength on hopes that the Fed will take steps to boost the economy following Tuesday's FOMC meeting. BP plc ([BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP)) ) said that costs for cleaning up and compensation for the Gulf of Mexico oil spill has risen to $5.1 billion. Meanwhile, London's Sunday Times reported that an internal audit it had obtained details severe safety flaws months before the worst environmental disaster in U.S. history. The paper said that the audit details how the rig owned by Transocean Ltd ([RIG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RIG&selected=RIG)) ) did not comply with BP's standards. Both BP and Transocean are up on the NYSE, however, as it reported over the weekend that a test on a cementing operation needed to plug the well was successful. Land rig contractor Nabors Industries Ltd ([NBR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NBR&selected=NBR)) ) has bought out oilfield services group Superior Well Services Inc ([SWSI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SWSI&selected=SWSI)) ) for about $900 million in cash. Nabors will pay $22.12 for each Superior share, marking a 21% premium over the company's closing price Friday on Nasdaq. Brent crude is up 1.3% at $81.21 a barrel on NYMEX. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited. Stock Price 4 days before: 18.3134 Stock Price 2 days before: 17.9183 Stock Price 1 day before: 18.0876 Stock Price at release: 18.0963 Risk-Free Rate at release: 0.0014	17.0266
Symbol: NBR Security: Nabors Industries Ltd. Related Stocks/Topics: BP\|Markets\|RIG Title: Sector Update: Energy Up, BP Rises Despite $6.1B Clean-Up Cost Type: News Publication: MTNewswires Publication Author: Unknown Date: 2010-08-09 08:31:00 Article: Dow Jones U.S. Oil & Gas Index: 475.60 Friday regular session closeNYMEX Benchmark Crude: +1.02 (+1.27%) to 81.18Top Energy StocksXOM: +0.66%CVX: +0.34%SLB: +0.64%OXY: +0.88%COP: +0.28%Energy issues are up before the bell, as oil prices continue to gain strength on hopes that the Fed will take steps to boost the economy following Tuesday's FOMC meeting. BP plc ([BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP)) ) said that costs for cleaning up and compensation for the Gulf of Mexico oil spill has risen to $6.1 billion. Meanwhile, London's Sunday Times reported that an internal audit it had obtained details severe safety flaws months before the worst environmental disaster in U.S. history. The paper said that the audit details how the rig owned by Transocean Ltd ([RIG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RIG&selected=RIG)) ) did not comply with BP's standards. Both BP and Transocean are up on the NYSE, however, as it reported over the weekend that a test on a cementing operation needed to plug the well was successful. Land rig contractor Nabors Industries Ltd ([NBR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NBR&selected=NBR)) ) has bought out oilfield services group Superior Well Services Inc ([SWSI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SWSI&selected=SWSI)) ) for about $900 million in cash. Nabors will pay $22.12 for each Superior share, marking a 21% premium over the company's closing price Friday on Nasdaq. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited. Stock Price 4 days before: 18.3134 Stock Price 2 days before: 17.9183 Stock Price 1 day before: 18.0876 Stock Price at release: 18.086 Risk-Free Rate at release: 0.0014	17.0266
Symbol: NG Security: NovaGold Resources Inc. Related Stocks/Topics: Markets Title: Natural Gas Daily Technical Outlook Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-08-09 08:33:00 Article: Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) Intraday bias in Natural gas remains cautiously on the downside with 4.646 minor resistance intact and further fall should be seen to 4.288 support. Break will confirm that whole fall from 5.196 has resumed and should target a test on 3.81 support next. On the upside, above 4.646 will turn intraday bias neutral again and turn focus back to 5.007 resistance instead.In the bigger picture, the main question remains on whether Natural gas's fall from 6.108 is finished at 3.71 already as it just drew strong support from 61.8% retracement of 2.409 to 6.108 at 3.822. We'll stay neutral first. On the downside, break of 3.81 will revive the case that whole medium term rebound from 2.409 is finished at 6.108 already and will bring even deeper fall to retest this low. On the upside. Though, note that break of 5.196 will argue that rise from 2.409 is not finished yet and will extend for making another high above 6.108 before completion. [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/09/15827.jpg) [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/09/15828.jpg) Stock Price 4 days before: 6.43843 Stock Price 2 days before: 6.57409 Stock Price 1 day before: 6.57508 Stock Price at release: 6.57002 Risk-Free Rate at release: 0.0014	7.72944
Symbol: GRC Security: The Gorman-Rupp Company Related Stocks/Topics: PCG\|Markets Title: PG&E Added to FBR Capital’s "Top Picks" List; Price Target Boosted (PCG) Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-08-09 08:52:00 Article: Public utility operator PG&E Corporation ([PCG](http://www.dividend.com/dividend-stocks/utilities/diversified-utilities/pcg-pgande-corp/)) ) on Monday saw its shares added to the "Top Picks List" by analysts at FBR Capital Markets.The firm also raised its price target for PCG from $46 to $49. That new target represents a potential 7% upside to the stock's Friday closing price of $45.64. An FBR analyst commented, "Following the quarter, we continue to view PG&E ([PCG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PCG&selected=PCG)) ) as an attractive investment compared to peers. A reasonable resolution of the general rate case ([GRC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GRC&selected=GRC)) ) over the next six to nine months could lead to near-term stock appreciation." The firm currently rates the stock as an "Outperform."PG&E shares were mostly flat in premarket trading Monday. The Bottom Line We have been recommending shares of PCG since Sept.18, 2009, when the stock was trading at $41.03. The company has a 3.99% dividend yield, based on Friday's closing stock price of $45.64.PG&E Corporation ([PCG](http://www.dividend.com/dividend-stocks/utilities/diversified-utilities/pcg-pgande-corp/)) ) is a "recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 31.1286 Stock Price 2 days before: 30.5648 Stock Price 1 day before: 30.7561 Stock Price at release: 30.7377 Risk-Free Rate at release: 0.0014	27.5263
Symbol: NG Security: NovaGold Resources Inc. Related Stocks/Topics: Markets Title: Natural Gas Daily Technical Outlook Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-08-10 07:47:00 Article: Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) Natural ga's break of 4.288 support confirm that whole decline from 5.196 has resumed. Intraday bias remains on the downside and further decline should now be seen to retest 3.81 key support level next. On the upside, above 4.512 minor resistance will turn intraday bias neutral. But recovery should be limited below 5.007 resistance and bring fall resumption.In the bigger picture, the main question remains on whether Natural gas's fall from 6.108 is finished at 3.71 already as it just drew strong support from 61.8% retracement of 2.409 to 6.108 at 3.822. We'll stay neutral first. On the downside, break of 3.81 will revive the case that whole medium term rebound from 2.409 is finished at 6.108 already and will bring even deeper fall to retest this low. On the upside. Though, note that break of 5.196 will argue that rise from 2.409 is not finished yet and will extend for making another high above 6.108 before completion. [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/10/15905.jpg) [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/10/15906.jpg) Stock Price 4 days before: 6.47632 Stock Price 2 days before: 6.57508 Stock Price 1 day before: 6.57002 Stock Price at release: 6.42004 Risk-Free Rate at release: 0.0015	7.59717
Symbol: NG Security: NovaGold Resources Inc. Related Stocks/Topics: Markets Title: Natural Gas Daily Technical Outlook Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-08-11 07:32:00 Article: Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) Intraday bias in natural gas remains on the downside with 4.512 minor resistance intact. As noted before, the break of 4.288 support indicates that whole fall from 5.196 has resumed. Further decline should be seen to 3.81 key support level next. On the upside, above 4.512 minor resistance will turn intraday bias neutral. But recovery should be limited below 5.007 resistance and bring fall resumption.In the bigger picture, the main question remains on whether Natural gas's fall from 6.108 is finished at 3.71 already as it just drew strong support from 61.8% retracement of 2.409 to 6.108 at 3.822. We'll stay neutral first. On the downside, break of 3.81 will revive the case that whole medium term rebound from 2.409 is finished at 6.108 already and will bring even deeper fall to retest this low. On the upside. Though, note that break of 5.196 will argue that rise from 2.409 is not finished yet and will extend for making another high above 6.108 before completion. [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/11/15963.jpg) [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/11/15964.jpg) Stock Price 4 days before: 6.57409 Stock Price 2 days before: 6.57002 Stock Price 1 day before: 6.42004 Stock Price at release: 6.52201 Risk-Free Rate at release: 0.0015	7.36722
Symbol: NG Security: NovaGold Resources Inc. Related Stocks/Topics: Markets Title: Natural Gas Daily Technical Outlook Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-08-11 07:32:00 Article: Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) Intraday bias in natural gas remains on the downside with 4.512 minor resistance intact. As noted before, the break of 4.288 support indicates that whole fall from 5.196 has resumed. Further decline should be seen to 3.81 key support level next. On the upside, above 4.512 minor resistance will turn intraday bias neutral. But recovery should be limited below 5.007 resistance and bring fall resumption.In the bigger picture, the main question remains on whether Natural gas's fall from 6.108 is finished at 3.71 already as it just drew strong support from 61.8% retracement of 2.409 to 6.108 at 3.822. We'll stay neutral first. On the downside, break of 3.81 will revive the case that whole medium term rebound from 2.409 is finished at 6.108 already and will bring even deeper fall to retest this low. On the upside. Though, note that break of 5.196 will argue that rise from 2.409 is not finished yet and will extend for making another high above 6.108 before completion. [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/11/15963.jpg) [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/11/15964.jpg) Stock Price 4 days before: 6.57409 Stock Price 2 days before: 6.57002 Stock Price 1 day before: 6.42004 Stock Price at release: 6.52201 Risk-Free Rate at release: 0.0015	7.36722
Symbol: IAG Security: IAMGOLD Corporation Related Stocks/Topics: DIS\|Markets\|CBOE\|CPI\|AFL\|PAAS\|CSCO Title: Opening View: Chinese Data Sends Futures Reeling; DJIA Heads for Triple-Digit Loss Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-08-11 07:55:00 Article: The Dow Jones Industrial Average (DJIA) rebounded from a loss of nearly 150 points yesterday to settle on a decline of roughly 50 points by the close, after the Fed attempted to reassure Wall Street that it still had tools left to help stimulate the U.S. economy. However, another round of poor economic data out of China has trumped the Fed's pledge in pre-market trading this morning, sending futures on the DJIA some 122 points below fair value. Similarly, futures on the S&P 500 Index (SPX) are trading nearly 15 points below fair value. If the major market indexes hold their pre-market course, we could see the DJIA break out of its recent trading range to the downside, while the SPX would end its seven-day stint above its widely watched 200-day moving average. Furthermore, the CBOE Market Volatility Index (VIX) could be headed toward its first daily close above both its 10-day and 20-day moving average since July 2, not to mention the potential for a move above its 200-day trendline.In equity news, Walt Disney Co. ([DIS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DIS&selected=DIS)) ) earned $1.33 billion, or 67 cents per share, in the third quarter, compared with a profit of $954 million, or 51 cents per share, in the year-ago period. The company citied improved results at ESPN and strong box-office proceeds from "Toy Story 3," "Iron Man 2," and "Alice In Wonderland" for the strong performance. Sales for the quarter rose 16% to $10 billion. Analysts were expecting a profit of 59 cents per share on sales of $9.37 billion. Elsewhere, LDK Solar Co. Ltd. ([LDK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LDK&selected=LDK)) ) swung to a second-quarter profit of $45 million, or 36 cents per American Depositary share, from a loss of $216.9 million, or $2.03 per ADS, in the same quarter last year. Revenue increased to $565.3 million from $228.3 million a year earlier. Analysts had forecast earnings of 22 cents per share on revenue of $461.8 million.Finally, Aflac Inc.'s ([AFL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AFL&selected=AFL)) ) board lifted its quarterly dividend 7.1% to 30 cents per share and resumed a suspended share buy-back program. The dividend is payable on Dec. 1 to shareholders of record as of Nov. Earnings Preview On the earnings front, Computer Sciences Corp. ([CSC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CSC&selected=CSC)) ), IAMGOLD Corp. ([IAG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IAG&selected=IAG)) ), Cisco Systems Inc. ([CSCO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CSCO&selected=CSCO)) ), Pan Am Silver Corp. ([PAAS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PAAS&selected=PAAS)) ), and Silver Wheaton Corp. ([SLW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLW&selected=SLW)) ) are scheduled to release their quarterly earnings report today. Keep your browser at [SchaeffersResearch.com](http://www.schaeffersresearch.com/) for more news as it breaks. Economic Calendar Today, the market will be graced with the weekly report on U.S. petroleum supplies, along with June's trade balance and July's Treasury budget. The weekly report on initial jobless claims will be released on Thursday, as will July's import/export prices. On Friday, we get a peek at the latest inflation data, with the release of the consumer price index ([CPI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CPI&selected=CPI)) ) and the core CPI reading. Also on the docket are July's retail sales, August's University of Michigan consumer sentiment index, and June's business inventories index. Market Statistics Equity option activity on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) saw 932,585 call contracts traded on Tuesday, compared to 587,596 put contracts. The resultant single-session put/call ratio arrived at 0.63, while the 21-day moving average held at 0.60. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100811ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100811ov2.gif)The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher. [Dow, S&P and Nasdaq futures](http://www.schaeffersresearch.com/images/commentary/2010/100811ov3.gif) Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up [here](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=O&CODE=SIRG07D) for free daily delivery, straight to your inbox, before the opening bell. Overseas Trading Overseas trading is in poor shape this morning, as only one of the 10 foreign indexes that we track is in positive territory. The cumulative average return on the collective stands at a loss of 1.26%. In Asia, stocks tumbled after Chinese data showed moderating economic growth and tame inflationary pressures. While this news helped bolster trading in China, easing worries over further tightening of monetary policy, the rest of Asia wasn't as lucky. Furthermore, heavy losses throughout most of Asia have spilled over into Europe, where the mining sector is leading the decline on fears of decreased demand. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100811ov4.gif)Currencies and Commodities Safe-haven buying lifted the U.S. dollar and the Japanese yen in Asian trading, as investors fled equities in the wake of another round of poor Chinese economic data. As a result, the U.S. Dollar Index has jumped 1.11% in pre-market trading, as the index rebounds from multi-month lows set late last week. Despite the resurgent greenback, gold is edging higher, as traders diversify their safe-haven holdings. In London, gold futures have added 70 cent to trade at $1,198.70 an ounce. Finally, crude prices have taken a nose dive, with the lead contract dropping below the round-number $80 region. At last check, crude futures were off 77 cents at $79.48 per barrel. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100811ov5.gif)**Unusual Put and Call Activity:For an explanation of how to use this information, check out our [Education Center](http://www.schaeffersresearch.com/schaeffersu/) topics on [Option Volume](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?ID=220#220) and [Open Interest Configurations](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?id=221) . [Unusual options activity - puts](http://www.schaeffersresearch.com/images/commentary/2010/100811ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100811ov7.gif) [Follow Schaeffer's to the San Francisco MoneyShow Aug. 19 -- 21, 2010! Click here for details, including a list of scheduled presentations and how to register.](http://www.schaeffersresearch.com/edge/road.aspx)** All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 17.7 Stock Price 2 days before: 17.8512 Stock Price 1 day before: 17.5313 Stock Price at release: 17.7663 Risk-Free Rate at release: 0.0015	17.7077
Symbol: PRDO Security: Perdoceo Education Corporation Related Stocks/Topics: Unknown Title: Career Education (CECO) put volume spikes on moderate bullishness Type: News Publication: Karla Yeh Publication Author: Unknown Date: 2010-08-11 11:45:00 Article: Shares of Career Education Corp. (NASDAQ: CECO ) edged up during morning trading on Wednesday and are outperforming the broad market losses so far on the day. Options action on the tape suggests one investor expects the stock to experience limited downside during the next month.The September 17-strike puts were active out of the gate thanks to an investor who could have sold these puts. Several blocks totaling more than 4,800 contracts have already crossed the tape. The largest blocks crossed for roughly 40 cents, which was the bid price when the volume hit the tape. Current open interest in this line is zero contracts, indicating investors opened short put positions to bet that CECO shares will not drop significantly during the near term. Investors who sold these puts collected 40 cents per contract on a bet that CECO will be trading higher than $16.60 at September options expiration (Sept. 17). If the stock remains around its current level or does not drop more than 17% by expiration, the investor retains 100% of the premium paid. On the other hand, if the stock drops below the breakeven price, the investor will lose money until the stock reaches zero. Maximum loss on this short put trade equals $16.60, or the strike minus the premium collected. If CECO shares are trading between the strike and the breakeven level, the investor will give back some of the credit.CECO shares gained nearly 1%, or 18 cents, to $20.20 during morning trading. The education name did not announce any news today. RBC Capital Markets lowered its price target on CECO to $25 from $35 due to regulatory concerns. CECO announced earnings of 81 cents per share on Aug. 4 and beat estimates by a whopping 19 cents. Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0015	0
Symbol: BZH Security: Beazer Homes USA, Inc. Related Stocks/Topics: LEN\|Markets\|PHM Title: Lennar trade focuses on volatility Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-08-12 01:38:00 Article: Lennar's implied volatility has been drifting lower since November 2008, and one investor apparently thinks that trend will continue. [LEN Chart](http://www.optionmonster.com/cms/commentary/images/len812.png) optionMONSTER's tracking systems detected the sale of 16,300 January 10 calls on the homebuilder for $5.05. Shortly after the transaction occurred, a large block of shares was purchased, indicating the use of a so-called delta-neutral strategy. The trade is designed to profit from the calls losing value as implied volatility drops. Because he or she also owns the stock, which move opposite the short position in the calls, the investor is hedged against LEN rising or falling.The stock is down 0.37 percent to $13.58 in afternoon trading and has fallen 31 percent in the last three months. It appears to have returned to a support level resulting from a bullish gap on Jan. 7, which could make chart watchers think downside is limited going forward.If they're correct and LEN stabilizes, it could help push implied volatility down from its current level around 50 percent. That would favor this delta-neutral trader because lower volatility would reduce the value of the contracts they sold short. (See our Education section) The trade follows bullish activity in the homebuilding sector last week as investors bought calls in heavily shorted names Beazer Homes and PulteGroup.Overall options volume in LEN is more than triple the daily average so far today. (Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 4.08724 Stock Price 2 days before: 4.2461 Stock Price 1 day before: 4.01079 Stock Price at release: 3.71885 Risk-Free Rate at release: 0.0015	4.39381
Symbol: NR Security: Newpark Resources, Inc. Related Stocks/Topics: Markets Title: Is it Time to Buy Oil Stocks Again? Type: News Publication: Louis Navellier Publication Author: Unknown Date: 2010-08-12 07:32:00 Article: The environmental, financial and all-around human disaster that is the BP Plc (NYSE: [BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP) ) oil spill is finally coming to a close, as efforts to eradicate any remnants of the leak are finally approaching the end stage. Now the focus for BP has turned legal. On Tuesday, a federal panel appointed a judge to oversee the hundreds of lawsuits brought by injured oil rig workers, fishermen and hotel owners. And while BP and its plaintiffs will be hashing compensatory issues out in the courts, investors need to start looking at the court of fundamentals to determine which oil service stocks deserve their attention.I've had many people ask me recently if the time is now right to once again buy oil stocks and oil drilling stocks. My answer to them is both yes, and no. That's because the focus now rightly will return to two critical characteristics. The first is strong fundamentals, and by that I mean sales and earnings growth. The second is strong buying pressure. If investors are buying a stock, then you've got momentum on your side. Conversely, if there's a lot of selling taking place, then you'd better heed the warning of the herd.Right now in the oil drilling space, there are three oil stocks my [Portfolio Grader tool](http://www.investorplace.com/order/?sid=SR3114) rates as "Buys" and three oil stocks that are rated as "Sells."Oil Stocks to Buy - NR, RES, SWSI Newpark Resources Inc. (NYSE: [NR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NR&selected=NR) ). The drilling fluid systems and well site management company recently reported better-than-expected Q2 results on higher drilling activity in the U.S., along with increased sales related to the Deepwater Horizon spill. The company's also seen its share price explode. Year to date, the stock is up 94%. RPC Inc. (NYSE: [RES](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RES&selected=RES) ). This oil field services and equipment company also recently posted some very strong second-quarter earnings results, including revenue that nearly doubled to $252.9 million during the prior year. Along with the big earnings, the company also increased its quarterly dividend by 50%. RES shares are up 75% year to date, clearly showing that buyers have embraced this stock. Superior Well Services Inc. (NASDAQ: [SWSI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SWSI&selected=SWSI) ). This well site solutions provider showed strong recent earnings, but the bigger news here is the company is soon to be purchased by oil and gas drilling giant Nabors Industries (NYSE: [NBR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NBR&selected=NBR) ). The Nabors buyout offer comes at a near 18% premium to SWSI's share price as of Aug. 9. Considering that SWSI stock has climbed 55% year to date, it's no surprise that this winning drilling services firm gets an "A" from Portfolio Grader. Oil Stocks to Sell - DO, NE, RIG Diamond Offshore Drilling (NYSE: [DO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DO&selected=DO) ). This drilling company stumbled badly in its second quarter, reporting a 42% decline in profits on weaker pricing. The firm also cut its special dividend to keep some cash in the coffer in the face of what was a deepwater-drilling moratorium that was imposed by the Obama administration following the BP disaster in the Gulf of Mexico. Sellers certainly have dominated this issue, with the stock down some 34% year to date. Portfolio Grader rates DO shares an "F" or a Strong Sell. Noble Corp. (NYSE: [NE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NE&selected=NE) ). This oil and gas drilling stalwart had a very poor Q2, with revenues badly missing Street expectations. The company also missed on its bottom line, with EPS coming in at 87 cents per share, 18 cents below Street expectations. The company blamed the White House's ban on deepwater drilling in the Gulf of Mexico for its horrible quarter. The stock is down 17% year to date, and the combination of poor earnings and big selling in the stock pushed NE shares to a "D" rating in Portfolio Grader, which translates into a Sell. Transocean Ltd. (NYSE: [RIG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RIG&selected=RIG) ). Along with BP, Transocean is the key company in the Gulf oil spill. And though it may escape the worst of its liability issues, the damage has certainly been done to the company's bottom line and its share price. Profits in the second quarter were down 12% as utilization rates slid and revenue declined. The company did, however, benefit from an insurance gain related to the loss of the Deepwater Horizon rig. The stock is down 26% year to date, and Portfolio Grader rates the shares a "D". Louis Navellier's Top 10 Stocks for the Second Half- These must-own companies are the biggest wealth-builders for the second half of 2010 . [Get their names online here](http://www.investorplace.com/order/?sid=SA4206) . Stock Price 4 days before: 8.13979 Stock Price 2 days before: 8.2132 Stock Price 1 day before: 8.05284 Stock Price at release: 7.62465 Risk-Free Rate at release: 0.0015	9.14998
Symbol: NG Security: NovaGold Resources Inc. Related Stocks/Topics: Markets Title: Natural Gas Daily Technical Outlook Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-08-12 08:10:00 Article: Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) A temporary low is in place in natural gas at 4.257 and some consolidations could be seen. But recovery should be limited by 4.556 resistance and bring fall resumption. Whole decline from 5.196 is still in progress and below 4.257 will target 3.81 key support level next.In the bigger picture, the main question remains on whether Natural gas's fall from 6.108 is finished at 3.71 already as it just drew strong support from 61.8% retracement of 2.409 to 6.108 at 3.822. We'll stay neutral first. On the downside, break of 3.81 will revive the case that whole medium term rebound from 2.409 is finished at 6.108 already and will bring even deeper fall to retest this low. On the upside. Though, note that break of 5.196 will argue that rise from 2.409 is not finished yet and will extend for making another high above 6.108 before completion. [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/12/16008.jpg) [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/12/16009.jpg) Stock Price 4 days before: 6.57508 Stock Price 2 days before: 6.42249 Stock Price 1 day before: 6.52201 Stock Price at release: 6.43353 Risk-Free Rate at release: 0.0015	7.6477
Symbol: PRDO Security: Perdoceo Education Corporation Related Stocks/Topics: Markets\|MRCY\|TC\|EPS\|DEER Title: 10 Stocks Offering Growth and Value Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-12 11:32:00 Article: Depending on your investment style, either growth stocks or value stocks likely hold greater appeal. But sometimes you don't have to choose. On rare occasion, a stock can represent the best of both worlds. These GARP (Growth at a Reasonable Price) stocks tend to offer downside support thanks to their low valuations, and solid upside thanks to their growth prospects.With that in mind, I went looking for stocks that sport low [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) ratios yet are expected to post solid [earnings](http://investinganswers.com/term/earnings-1514) growth in 2011.To narrow the list down to a manageable number, the companies must sport a [market capitalization](http://investinganswers.com/term/market-capitalization-939) of at least $200 million. In the table below, you'll find 10 stocks that made the grade. Advance America ([AEA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AEA&selected=AEA)) )Advance America offers cash advances to credit-constrained consumers, and often sees business spike when the [economy](http://investinganswers.com/term/economy-1517) is in a funk. The company's shares remain out of vogue, despite the fact that quarterly profit trends are quite robust -- second quarter [operating income](http://investinganswers.com/term/operating-income-1207) surged +37% from a year ago, when legal expenses are excluded.The top-line growth, however, is not as impressive because many states are starting to crack down on the "payday loan" business. Advance America recently had to close 92 stores, half of them in Virginia, to comply with new laws. But the company still operates nearly 2,500 retail stores. The store closures, and expenses associated with that effort, are crimping per share profits this year, which will likely lag the year-ago take by about -20%.Yet the remaining store base looks quite healthy. With a reduction in expected store-closure expenses next year, [earnings per share ( ](http://investinganswers.com/term/earnings-share-eps-1003) [EPS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPS&selected=EPS) ) is expected to climb back up +25% to around $0.88. As more low-income consumers find it difficult to obtain new credit cards, demand -- and profits -- may keep rising into 2012. Value investors should note that the stock trades for around five times 2010 projected profits and four times next year's earnings, while income investors may find Advance America's 6.5% [dividend yield](http://investinganswers.com/term/dividend-yield-361) attractive. Thompson Creek Metals ([TC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TC&selected=TC)) )One of the charms of mining stocks is that you can value a company on the basis of its earnings strength or simply on the value of its untapped mineral reserves. On both counts, Thompson Creek looks quite attractive. The company is ramping up production at a rapid pace, leading to an earnings surge, and a recent acquisition has boosted the value of its holdings to around $16 a share on a [net asset value](http://investinganswers.com/term/net-asset-value-155) ([NAV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NAV&selected=NAV)) ) basis -- some +60% above the current share price.Thompson Creek has historically focused on molybdenum, a metal that is used to bolster high-strength steel. A pair of molybdenum mines are just ramping up, setting the stage for a triple-digit jump in [EPS](http://investinganswers.com/term/earnings-share-eps-1003) this year, and another +40% gain in 2011 to $1.40. Shares trade for just seven times that forecast. A recent acquisition of a large gold and copper mine expected to come online in 2012 or 2013 should bolster growth prospects even further. Well below its [NAV](http://investinganswers.com/term/net-asset-value-155) and a very low P/E ratio. What's not to love?ShengdaTech (Nasdaq: SDTH)It's hard to attract investor interest when you operate halfway around the world. China's ShengdaTech has the added burden of producing a fairly obscure industrial material: nano-precipitated calcium carbonate (NPCC). Obscure as it may be to most of us, NPCC is seeing rising demand in the construction of tires, plastics, inks and adhesives. The nano-sized particles help to smooth out the finish on these manufactured goods while also strengthening any material they adhere to. It's far cheaper than traditional solutions such as titanium oxide and silicon dioxide.ShengdaTech has a proprietary production process that produces high yields at low prices. The company continues to add to capacity and often finds a buyer for that higher output as soon as it is available.Thanks to capacity expansions, sales should rise around +25% both this year and next. Analysts think EPS could rise +30% next year to about $0.65. Of course, demand isn't limitless, and longer-term growth rates will likely moderate. Management insists that ShengdaTech is capable of robust long-term growth, as its R&D labs are trying to identify a range of new applications for its NPCC. Nevertheless, with shares trading for around seven times next year's profits, even a growth rate in the low to mid-teens would make these shares very attractive. Action to Take --> These stocks are cheap in large part due to investor apathy or ignorance. They toil outside the Wall Street spotlight, yet are developing solid profit growth prospects. ShengdaTech may stay cheap for a while longer, at least until the broader universe of Chinese stocks starts to move back into favor. Advance America is learning to live with a slightly smaller retail footprint, but is getting a lot more profit out of its existing stores. Thompson Creek Metals is only now emerging as a key mineral producer.Investors can feel comfortable owning any of these three undiscovered names, as long as they have the patience to wait for the stocks to be discovered.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article. [StreetAuthority](http://www.streetauthority.com/a/10-stocks-offering-growth-and-value-456453) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0015	0
Symbol: NR Security: Newpark Resources, Inc. Related Stocks/Topics: Markets Title: Is it Time to Buy Oil Stocks Again? Type: News Publication: Louis Navellier Publication Author: Unknown Date: 2010-08-12 11:32:00 Article: The environmental, financial and all-around human disaster that is the BP Plc (NYSE: [BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP) ) oil spill is finally coming to a close, as efforts to eradicate any remnants of the leak are finally approaching the end stage. Now the focus for BP has turned legal. On Tuesday, a federal panel appointed a judge to oversee the hundreds of lawsuits brought by injured oil rig workers, fishermen and hotel owners. And while BP and its plaintiffs will be hashing compensatory issues out in the courts, investors need to start looking at the court of fundamentals to determine which oil service stocks deserve their attention.I've had many people ask me recently if the time is now right to once again buy oil stocks and oil drilling stocks. My answer to them is both yes, and no. That's because the focus now rightly will return to two critical characteristics. The first is strong fundamentals, and by that I mean sales and earnings growth. The second is strong buying pressure. If investors are buying a stock, then you've got momentum on your side. Conversely, if there's a lot of selling taking place, then you'd better heed the warning of the herd.Right now in the oil drilling space, there are three oil stocks my [Portfolio Grader tool](http://www.investorplace.com/order/?sid=SR3114) rates as "Buys" and three oil stocks that are rated as "Sells."Oil Stocks to Buy - NR, RES, SWSI Newpark Resources Inc. (NYSE: [NR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NR&selected=NR) ). The drilling fluid systems and well site management company recently reported better-than-expected Q2 results on higher drilling activity in the U.S., along with increased sales related to the Deepwater Horizon spill. The company's also seen its share price explode. Year to date, the stock is up 94%. RPC Inc. (NYSE: [RES](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RES&selected=RES) ). This oil field services and equipment company also recently posted some very strong second-quarter earnings results, including revenue that nearly doubled to $252.9 million during the prior year. Along with the big earnings, the company also increased its quarterly dividend by 50%. RES shares are up 75% year to date, clearly showing that buyers have embraced this stock. Superior Well Services Inc. (NASDAQ: [SWSI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SWSI&selected=SWSI) ). This well site solutions provider showed strong recent earnings, but the bigger news here is the company is soon to be purchased by oil and gas drilling giant Nabors Industries (NYSE: [NBR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NBR&selected=NBR) ). The Nabors buyout offer comes at a near 18% premium to SWSI's share price as of Aug. 9. Considering that SWSI stock has climbed 55% year to date, it's no surprise that this winning drilling services firm gets an "A" from Portfolio Grader. Oil Stocks to Sell - DO, NE, RIG Diamond Offshore Drilling (NYSE: [DO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DO&selected=DO) ). This drilling company stumbled badly in its second quarter, reporting a 42% decline in profits on weaker pricing. The firm also cut its special dividend to keep some cash in the coffer in the face of what was a deepwater-drilling moratorium that was imposed by the Obama administration following the BP disaster in the Gulf of Mexico. Sellers certainly have dominated this issue, with the stock down some 34% year to date. Portfolio Grader rates DO shares an "F" or a Strong Sell. Noble Corp. (NYSE: [NE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NE&selected=NE) ). This oil and gas drilling stalwart had a very poor Q2, with revenues badly missing Street expectations. The company also missed on its bottom line, with EPS coming in at 87 cents per share, 18 cents below Street expectations. The company blamed the White House's ban on deepwater drilling in the Gulf of Mexico for its horrible quarter. The stock is down 17% year to date, and the combination of poor earnings and big selling in the stock pushed NE shares to a "D" rating in Portfolio Grader, which translates into a Sell. Transocean Ltd. (NYSE: [RIG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RIG&selected=RIG) ). Along with BP, Transocean is the key company in the Gulf oil spill. And though it may escape the worst of its liability issues, the damage has certainly been done to the company's bottom line and its share price. Profits in the second quarter were down 12% as utilization rates slid and revenue declined. The company did, however, benefit from an insurance gain related to the loss of the Deepwater Horizon rig. The stock is down 26% year to date, and Portfolio Grader rates the shares a "D". Louis Navellier's Top 10 Stocks for the Second Half- These must-own companies are the biggest wealth-builders for the second half of 2010 . [Get their names online here](http://www.investorplace.com/order/?sid=SA4206) . Stock Price 4 days before: 8.13979 Stock Price 2 days before: 8.00488 Stock Price 1 day before: 7.78099 Stock Price at release: 7.85 Risk-Free Rate at release: 0.0015	9.14998
Symbol: MRCY Security: Mercury Systems, Inc. Related Stocks/Topics: Markets\|PRDO\|TC\|EPS\|DEER Title: 10 Stocks Offering Growth and Value Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-12 11:32:00 Article: Depending on your investment style, either growth stocks or value stocks likely hold greater appeal. But sometimes you don't have to choose. On rare occasion, a stock can represent the best of both worlds. These GARP (Growth at a Reasonable Price) stocks tend to offer downside support thanks to their low valuations, and solid upside thanks to their growth prospects.With that in mind, I went looking for stocks that sport low [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) ratios yet are expected to post solid [earnings](http://investinganswers.com/term/earnings-1514) growth in 2011.To narrow the list down to a manageable number, the companies must sport a [market capitalization](http://investinganswers.com/term/market-capitalization-939) of at least $200 million. In the table below, you'll find 10 stocks that made the grade. Advance America ([AEA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AEA&selected=AEA)) )Advance America offers cash advances to credit-constrained consumers, and often sees business spike when the [economy](http://investinganswers.com/term/economy-1517) is in a funk. The company's shares remain out of vogue, despite the fact that quarterly profit trends are quite robust -- second quarter [operating income](http://investinganswers.com/term/operating-income-1207) surged +37% from a year ago, when legal expenses are excluded.The top-line growth, however, is not as impressive because many states are starting to crack down on the "payday loan" business. Advance America recently had to close 92 stores, half of them in Virginia, to comply with new laws. But the company still operates nearly 2,500 retail stores. The store closures, and expenses associated with that effort, are crimping per share profits this year, which will likely lag the year-ago take by about -20%.Yet the remaining store base looks quite healthy. With a reduction in expected store-closure expenses next year, [earnings per share ( ](http://investinganswers.com/term/earnings-share-eps-1003) [EPS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPS&selected=EPS) ) is expected to climb back up +25% to around $0.88. As more low-income consumers find it difficult to obtain new credit cards, demand -- and profits -- may keep rising into 2012. Value investors should note that the stock trades for around five times 2010 projected profits and four times next year's earnings, while income investors may find Advance America's 6.5% [dividend yield](http://investinganswers.com/term/dividend-yield-361) attractive. Thompson Creek Metals ([TC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TC&selected=TC)) )One of the charms of mining stocks is that you can value a company on the basis of its earnings strength or simply on the value of its untapped mineral reserves. On both counts, Thompson Creek looks quite attractive. The company is ramping up production at a rapid pace, leading to an earnings surge, and a recent acquisition has boosted the value of its holdings to around $16 a share on a [net asset value](http://investinganswers.com/term/net-asset-value-155) ([NAV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NAV&selected=NAV)) ) basis -- some +60% above the current share price.Thompson Creek has historically focused on molybdenum, a metal that is used to bolster high-strength steel. A pair of molybdenum mines are just ramping up, setting the stage for a triple-digit jump in [EPS](http://investinganswers.com/term/earnings-share-eps-1003) this year, and another +40% gain in 2011 to $1.40. Shares trade for just seven times that forecast. A recent acquisition of a large gold and copper mine expected to come online in 2012 or 2013 should bolster growth prospects even further. Well below its [NAV](http://investinganswers.com/term/net-asset-value-155) and a very low P/E ratio. What's not to love?ShengdaTech (Nasdaq: SDTH)It's hard to attract investor interest when you operate halfway around the world. China's ShengdaTech has the added burden of producing a fairly obscure industrial material: nano-precipitated calcium carbonate (NPCC). Obscure as it may be to most of us, NPCC is seeing rising demand in the construction of tires, plastics, inks and adhesives. The nano-sized particles help to smooth out the finish on these manufactured goods while also strengthening any material they adhere to. It's far cheaper than traditional solutions such as titanium oxide and silicon dioxide.ShengdaTech has a proprietary production process that produces high yields at low prices. The company continues to add to capacity and often finds a buyer for that higher output as soon as it is available.Thanks to capacity expansions, sales should rise around +25% both this year and next. Analysts think EPS could rise +30% next year to about $0.65. Of course, demand isn't limitless, and longer-term growth rates will likely moderate. Management insists that ShengdaTech is capable of robust long-term growth, as its R&D labs are trying to identify a range of new applications for its NPCC. Nevertheless, with shares trading for around seven times next year's profits, even a growth rate in the low to mid-teens would make these shares very attractive. Action to Take --> These stocks are cheap in large part due to investor apathy or ignorance. They toil outside the Wall Street spotlight, yet are developing solid profit growth prospects. ShengdaTech may stay cheap for a while longer, at least until the broader universe of Chinese stocks starts to move back into favor. Advance America is learning to live with a slightly smaller retail footprint, but is getting a lot more profit out of its existing stores. Thompson Creek Metals is only now emerging as a key mineral producer.Investors can feel comfortable owning any of these three undiscovered names, as long as they have the patience to wait for the stocks to be discovered.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article. [StreetAuthority](http://www.streetauthority.com/a/10-stocks-offering-growth-and-value-456453) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 12.0491 Stock Price 2 days before: 11.8455 Stock Price 1 day before: 11.0077 Stock Price at release: 11.2906 Risk-Free Rate at release: 0.0015	12.4723
Symbol: GSL Security: Global Ship Lease, Inc. Related Stocks/Topics: Markets\|OSK\|SPY Title: James West: Financial System Headed South Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-08-13 03:43:00 Article: [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/13/16073_james-west.jpg) Midas Letter Editor James West is one of the sharpest minds in the gold business, and he puts his money where his mouth is. He owns gold equities, ETFs, coins and even a share of a private Peruvian mine. "Gold is the best investment at this time," he says, a thesis based on the "counterfeiting" of paper currencies and inevitable collapse of the global financial system. In this Gold Report exclusive, James suggests several ways to profit along the way. The Gold Report: James, in a recent issue of the Midas Letter you said, "The world, according to gold, is in an absolute mess." We're not in a gold price mania, so how can the world be in an "absolute mess?" James West: You say we're not in a gold mania, but that depends on the perspective of time. If you look at the gold price chart for the last six months, it has appreciated slightly from $1,075 in February, touched a high of $1,260 in June and is now a bit below $1,200. But from the 10-year viewpoint, it has increased about 500%. I would classify this as a very long and slow sort of mania, which might, in technical terms, be a contradiction. Perhaps mania is not the right word. But there has been an ongoing accumulation of gold by a lot of different investment entities around the world since 2000. It continues more or less unabated on a macro level. TGR: How high do you see gold going?JW: Well, that's another funny question. When people ask, "how high do you see gold going?" it's like saying, "how long is a piece of string?" It depends on the timeframe. Where is it going to be in 30 days? It could be up $100 or it could be down $100, but it's not going to be at the price it is today. If you're talking a year's time, I think the price is going to be a little bit higher. Gold has been growing at an average of $87 per year for the last 10 years, so if I were going to predict where the price is going to be in five years I would say $1,635. Where is it going to be in 10 years? There are many factors that can come to bear there. TGR: What sort of factors?JW: The printing of money is one way to look at inflation. That is going to continue unabated for the near term because all the G8 governments have more or less embraced the idea of quantitative easing or stimulus. I prefer to think of it as counterfeiting. They are printing money that has absolutely no relation to anything of value. No commodity, no currency. There is sort of a tacit collusion going on among the G8 Nations, and especially China. China says, "OK, we'll keep buying your treasuries and we won't sell them as long as you don't give us a hard time about our human rights abuses and our unwillingness to let the yuan float freely against other currencies." That's why I say that the world's in a big mess, according to gold, because you've got this situation where no one can afford to acknowledge the reality.This tacit collusion has resulted in a collective untruth being the primary foundational circumstance upon which our financial system is built. To me that's like an inverted pyramid. As long as everybody keeps pushing on either side at exactly the right pressure, the pyramid can continue to balance on its pointy little head. But if one side gives even the slightest or pushes a little too hard or gives up on the support that they're giving, then the pyramid becomes much more difficult for the other entities to support and it's going to come falling over. TGR: That's an interesting metaphor. JW: That's the metaphor that I like. All of these different G8 entities and financial groups push on the pyramid, keeping it on its pointed head while all the governments keep printing money and pouring it on top, making the pyramid larger and more unwieldy. This is unsustainable. The systemic problems that are causing this unwieldy imbalance have accelerated in the last 10 years. We're headed to a point where this thing is going to fall over because it's built entirely on a falsehood-that we can continue to print money with abandonment and that's the way to run an economy, and nobody's ever going to call the loan. TGR: Do you think that will ultimately result in a global deflationary scenario or an inflationary scenario?JW: Both. I mean the inflationary scenario is happening now, as is the deflationary scenario to some extent. We've got all this money flowing into the system, but it's only flowing into selected segments. The banks that have been threatened by real estate loans that are now underwater because of the global devaluation in real estate are the recipients of most of this stimulus. Little of that stimulus is filtering down to small businesses and small employers on Main Street America. None of the benefit of these big institutions being rescued filters down to them. In those segments of the economy, there is a deflationary phase where there is no money flowing in. Nobody is spending money. Nobody's renovating their homes. Nobody's getting their trucks tricked out. All these little fringe businesses are stagnating. There's a lot of evidence to support that even in the mainstream media. In the Midas Letter , we find the stories to support the theory that this is all an illusion and these guys at the top of the food chain ar e in fact crooks. Until there's some major systemic change this is going to continue. TGR: You talked about a line in the sand. What's the next leg down that will tell us that this line in the sand has been crossed?JW: There are a few key indicators that everybody follows. First and foremost are the stock markets; they are the canary in the coal mine. The first sign that things are about to go very haywire is when those markets start dropping by 4%, 7%, 10% in a single session. When you see the market dropping off by huge quantities, you know that people are running for the hills. Now it's going to be difficult to see that because the President's working group has all these mechanisms to prevent the market from dropping more than a certain percentage in a day before it's shut down. That gives the government time to come up with something to stem the panic selling, so that indicator is not going to be readily available like it was in 2008 when we saw the Lehman Brothers crash.Another sign would be when the big hedge funds are cashing in their chips and sitting in cash. Other indicators are already flashing warning signs. The Baltic Dry Index, which is one of my favorites, has dropped by half since the end of May. That means that the movement of commodities has fallen by half since then. Commodities are the building blocks of all industries. When the commodities fall off like that, it's indicative that there's a general absence of demand for raw materials. That's a serious sign that the point of no return has been crossed. You will know the financial stimulus, which had the net effect of offsetting the inevitable, has run its course and can't rescue the system. The deterioration in economic activity levels has resumed. Those indicators are the increased number of foreclosures in metro areas throughout the United States, and the spike in unemployment since mid-2009 that remains high. TGR: Indeed. You have that graph on www.midasletter.com that talks about the U.S. Department of Labor numbers, which claim about 10% unemployment. But there are other sources on your chart. One says U.S. unemployment in July was 16%, while another one says 24%. Which one do you believe is closest to the truth?JW: I believe that John Williams' ShadowStats is the closest to the truth. John has been hired by large institutions to predict various things. One of his earliest clients was a large manufacturer of commercial airplanes. They were looking to develop an economic model for predicting passenger miles. They essentially used GDP to predict what that would be, but their model wasn't working effectively. So they hired John Williams, who is an economist, to figure out what was wrong. He realized that the statistics that the government was putting out were not accurate because of their faulty method of determining GDP. He went into the data and fixed the model. Then he started to remodel all the government data and many other sources of data, stuff like retail sales and trade deficits, inflation versus production numbers, durable goods, home sales, housing starts. For all of those there's the government version, and then there's John Williams' version. I know some of John Williams' clients, and they unequivocally state that they put more faith in his numbers than they do in the government's numbers. TGR: How should people get exposure to gold?JW: That depends on your risk profile. If you're in the later stage of life and you've got assets that provide some kind of fixed income, then you want to go with the most conservative exposure to gold, which would probably be bullion. The problem with owning bullion is that if you can't protect it, you set yourself up as a target. Barring that, I think the best way to own gold is probably through the [SPDR S&P 500 ETF ( ](http://www.theaureport.com/cs/user/print/co/2633) [SPY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SPY&selected=SPY) ) , which actually buys and holds physical gold. But if you're actually going to use gold as an instrument for trading goods, then that indicates that a line in the sand has been crossed and the financial system has crumbled. And you've got this hyperinflationary phase where it takes a wheelbarrow of cash to buy a loaf of bread and an hour later it takes two wheelbarrows. I caution that if you're going to own an ETF and the whole financial system turns to rubbish, an ETF is not going to be tradable. But let's assume that's not the case and you just want to expose yourself to gold as an investment; the conservative position is an ETF or bullion. Moderate risk would be senior gold producers. Higher risk would be junior producers. Highest risk exposure to gold would be gold explorers. TGR: You hold positions in all three categories. JW: I hold gold in every position imaginable. I am a participant in a gold mine in Peru. I own shares in milling operations in South America. I own gold dust, gold bullion, gold coins. I have some positions in ETFs. I have some senior producers, some mid-tier producers, some junior producers and some junior explorers. TGR: Would you consider yourself a gold bug?JW: No, I wouldn't because I really have no use for gold personally. It's just the best investment at this time. TGR: Are there any circumstances under which gold is not a good investment?JW: Oh, absolutely. Let's say we have a world full of economies that shepherd their currencies responsibly and circulate only money that is essentially the equivalent of their GDP and their asset base divided by their population. There would be no reason to own gold. The systems that issue money should own the gold. If we lived in a world where our governments and our financial institutions and systems were trustworthy, there would be no reason to own gold and invest in gold. TGR: Well, that's not going to happen anytime soon. You hold about 50,000 shares in [Western Pacific Resources Corp. (TSX.V:WRP)](http://www.theaureport.com/cs/user/print/co/2220) , which is under The Gold Group umbrella. You like the management there, people like Simon Ridgway, Warwick Smith. Is your position in Western Pacific based on who is involved, or is it a combination of who's involved and its assets in Nevada?JW: It's a Catch-22 because whoever is involved has allowed them access to these assets. The asset that I'm most excited about is this Mineral Gulch in Idaho, which had historical production of 525,000 ounces. These guys acquired the property simply for the cost of staking, which I think was about $28,000. Before this, Curt Everson and Eric Sanderholm were with [US Gold Corp. (TSX:UXG, NYSE.A:UXG)](http://www.theaureport.com/cs/user/print/co/565) , which is actually Rob McEwen's company. Before that they were with [Nevada Pacific Gold Ltd. (TSX.V:NPG)](http://www.theaureport.com/cs/user/print/co/14) and its Magistral mine, which is now part of US Gold. Everson and Sanderholm discovered Magistral, and that's US Gold's most productive asset. Collectively they're responsible for the discovery of over 30 million ounces of gold in their careers. I get very excited when I see a team like that get together with guys like Simon Ridgway and Warwick Smith, who have financed over $300 million in deals in the last three years-when a lot of people couldn't raise a dime. Then I see a project like Mineral Gulch that produced 525,000 ounces in oxide mineralization in a Carlin-style system, where deposits start off small and often get bigger as they get deeper. They could be into 5-20 million ounces in sulfides. That's what they're about to drill on. That's what gets me excited about that company. TGR: You take something of a brokerage style-approach to investing in these companies. For you, it's not about properties reaching production, it's about the shares appreciating over a given period of time. That's kind of how brokerages look at equities. How much are you looking for Western Pacific to appreciate over the next six months? JW: Well, let's look at some of the other deals done recently. For example, let's look at [Focus Ventures Ltd. (TSX.V: FCV)](http://www.theaureport.com/cs/user/print/co/2221) . TGR: Another Gold Group company. JW: Yes, that's right. They hit about 20 meters of 5 grams per ton on their Nueva California property in Peru. The stock took off to around $1.40 from $0.60. It was a 100% double. When it does 100% I tend to exit my position, or at least half of it if I think there's a lot more to come. In this case I acquired the Focus shares in September and sold them all in less than six months; I doubled my money as did all of my subscribers. Basically the value proposition of my Midas Letter is that I offer my subscribers "the potential" to double their money or better in 6-12 or 18 months, in 8 out of 10 picks. That's our average. Nobody is going to be 10 for 10. I basically live and work and exist exclusively in the resource industry and have for 20 years, and that's why I can consistently make those calls.I'm looking at Western Pacific's drill program. We know that they've produced 520,000 ounces from several pits. We know that the previous operators left behind several pits, so Western Pacific's team would drill where they knew they were going to hit gold. Then they would get a lift in the share price, and be able to raise money for an expanded drill program, which would be a responsible way to manage a company. The greater the share price at which they raise the capital, the less dilution they suffer every time the company spends a dollar. TGR: Back in March, you told us about [Antioquia Gold Inc. (TSX.V:AGD)](http://www.theaureport.com/cs/user/print/co/2080) . The company was then trading at about $0.40. It's about $0.23 now. Do you still see value there?JW: Oh, yeah. Absolutely. First of all, Antioquia is in Colombia. The size of some of the deposits there are simply huge. When I first visited the property last year, we were talking about only a 19-square-mile land package on which there was something like 90 artisanal operations actually ongoing or recently closed. We expected to see some great drill results; what we got were some OK drill results. A lot of people ran for the exits because it was Colombia and they expected fantastic results similar to those of [Ventana Gold Corp. (TSX:VEN)](http://www.theaureport.com/cs/user/print/co/798) . Instead, they only got [Greystar Resources Ltd. ( ](http://www.theaureport.com/cs/user/print/co/330) [GSL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GSL&selected=GSL) ) results. They got 4.4 meters of 16 grams gold and 11 meters of 5.4 grams. If it wasn't in Colombia, the stock would've probably held on a lot better. Antioquia has a lot of drilling coming up. At the current price, I just can't see why you wouldn't pick up Antioquia and hold it. They are going to continue drilling, and they've got a bigger set of targets now than they had then. TGR: Another gold play in South America is [Colossus Minerals Inc. (TSX:CSI)](http://www.theaureport.com/cs/user/print/co/597) . You've exited your position in Colossus, but management there has proven adept at raising money and creating value for shareholders by taking that stock from around $0.50 to around $6.50 now. Colossus is making a push toward production at Serra Pelada, a high-grade precious metals project in Brazil. Could that stock be poised for another bump up if it brings that project to production?JW: Oh, absolutely. You know if you want to compare Colossus to another company that's done well, you can compare it to [Red Back Mining (TSX:RBI)](http://www.theaureport.com/cs/user/print/co/584) (which was acquired by [Kinross Gold Corp. (TSX:K; NYSE:KGC)](http://www.theaureport.com/cs/user/print/co/12) since this interview). In 2002, Red Back was trading at less than a dollar. The Lundin Group took it over and also its Chirano gold mine in Ghana. Red Back additionally has the Tasiast gold mine in Mauritania. I wrote about Red Back at $6, and it's now at $26. Colossus has the potential to do exactly the same thing based on the strength of Serra Pelada. I follow guys like Colossus CEO Ari Sussman. He's also got a project in Colombia called [Continental Gold Ltd. ( ](http://www.theaureport.com/cs/user/print/co/2406) [CNL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CNL&selected=CNL) ) . We wrote that one up at $2-something and it's already trading well over $3. There's another one that's going to go. They bought the choice assets from Grupo de Bullet S.A. in Colombia. Grupo de Bullet was the largest private landholder of gold claims in Colombia, until they passed a law more or less forcing divestiture of anything that wasn't going to be producing income anytime soon. Ari's got the cream of that crop. TGR: You seem to follow people. Who else do you follow?JW: I follow George Salamis who was most recently CEO of [Rusoro Mining Ltd. (TSX.V:RML)](http://www.theaureport.com/cs/user/print/co/1070) , operating in Venezuela. Some would say that George was not a successful CEO because the share price more or less halved in the few years that he was the CEO. But during his CEO-ship, Venezuelan President Hugo Chavez told him that he would have to sell most of his gold to the government of Venezuela at half the spot price, which made it impossible to make money. Despite putting 17 million ounces into a 43-101 resource, the company still trades at below $0.40 because they can't get any money out of the country. George got fed up and he left. He's now with [Edgewater Exploration Ltd. (TSX.V:EDW)](http://www.theaureport.com/cs/user/print/co/2327) ; they're part of the Featherstone Group. Featherstone are the guys who put together [Terrane Metals Corp. (TSX.V:TRX)](http://www.theaureport.com/cs/user/print/co/469) , which is now controlled by [Goldcorp Inc. (NYSE:GG; TSX:G)](http://www.theaureport.com/cs/user/print/co/23) and is a huge success story. Edgewater is what we refer to as "Red Back Junior" because it's got the Enchi Gold project, 25 kilometers south of the 250,000 oz./year Chirano Gold Mine that Red Back is operating. Red Back owns roughly 9% of EDW, which is a strong indication of their belief in the project. TGR: Where was Salamis before EDW?JW: Before he was with Rusoro, George operated mines with Placer Dome and with [Cameco Corp. (NYSE:CCJ; TSX:CCO)](http://www.theaureport.com/cs/user/print/co/173) . He's got real-world mining company experience. When you see the combined forces of Featherstone Capital and George Salamis and the Lundin Mining Group, it's going to be a homerun. TGR: What other companies are you following?JW: I'm focused on the juniors that have the potential to hit the huge homeruns like [Golden Hope Mines Ltd. (TSX: GNH)](http://www.theaureport.com/cs/user/print/co/2634) . GNH is operating a project in Québec that has a 20 km. strike length. It looks like it could be a whole new gold belt. It's a great story. In 2003, [Osisko Mining Corp. ( ](http://www.theaureport.com/cs/user/print/co/486) [OSK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OSK&selected=OSK) ) drilled 5,000 meters on the property that Golden Hope is now exploring.Another one that recently got my attention was [NioGOLD Mining Corp. (TSX.V:NOX; OTC:NOXGF.pk)](http://www.theaureport.com/cs/user/print/co/822) . I've been in and out of it several times. They just did a deal with [Aurizon Mines Ltd. (TSX:ARZ; NYSE.A:AZK)](http://www.theaureport.com/cs/user/print/co/5) based on their Malartic gold project, which is also in Québec. NioGOLD has done this joint venture with Aurizon where they're going to partner up and bring an enhanced level of exploration to Malartic. NioGOLD CEO Mike Iverson has been patiently connecting dots between all of these smaller, older mines for the last five years. He's finally drawing the attention of Aurizon, which isn't a major but a mid-tier producer. It's a brand new day for NioGOLD and it's trading at about $0.30. There's one that could easily be a double. That could happen in weeks. If it goes to $2.60 it's a "ten bagger," which is sort of the Holy Grail in resource investing. TGR: Could you leave us with one more pick?JW: [Minera IRL Ltd. ( ](http://www.theaureport.com/cs/user/print/co/2635) [IRL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IRL&selected=IRL) ) is another one that I should've mentioned. It just recently listed on the TSX. It's been trading on the AIM Board in London for several years. It's got projects in Peru and Colombia. I know one of the directors, Frank Kelly, so I've been getting the details on these projects and following their progress. I just think it's going to be a winner.Publisher of [Midas Letter](http://www.midasletter.com/) , James West has devoted 20 years to helping small companies in the resource sector-helping them raise money, further their projects, build their identities and get their stories in front of investors on the lookout for quality investments with excellent returns.Want to read more exclusive Gold Report interviews like this? [Sign up](http://www.theaureport.com/cs/user/print/htdocs/38) for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our [Expert Insights](http://www.theaureport.com/pub/htdocs/exclusive.html) page. DISCLOSURE: 1)1) Brian Sylvester, of The Gold Report, conducted this interview. He personally owns 3,500 shares in Antioquia Gold Inc.2) None of the companies mentioned in the interview are sponsors of The Gold Report: Antioquia, Aurizon, Goldcorp, Western Pacific, Terrane, Colossus.3) James West: I personally and/or my family own the following companies mentioned in this interview: GNH, NOX. I personally and/or my family am paid by none of the companies mentioned in this interview. GNH, NOX.Streetwise - [The Gold Report](http://www.theaureport.com/) is Copyright © 2010 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.The GOLD Report does not render general or specific [investment advice](https://www.nasdaq.com/education/stock-market-where-buyers-and-sellers-meet) and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report. From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.Participating companies provide the logos used in The Gold Report. These logos are trademarks and are the property of the individual companies.Streetwise Reports LLCP.O. Box 1099Kenwood, CA 95452Tel.: (707) 282-5593Fax: (707) 282-5592Email: [[email protected]](mailto:[email protected]) Stock Price 4 days before: 0.83094 Stock Price 2 days before: 2.56349 Stock Price 1 day before: 0.851502 Stock Price at release: 1.67271 Risk-Free Rate at release: 0.0014	2.71019
Symbol: DMRC Security: Digimarc Corporation Related Stocks/Topics: Markets\|MU\|QCOM\|MSFT\|GE\|EPS\|ACTG\|NVDA\|AAPL\|VHC\|CSCO\|IP Title: 3 Stocks that Could See a Windfall of Cash from Patents Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-13 04:44:00 Article: When communications software firm VirnetX Holdings ([VHC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VHC&selected=VHC)) ) released quarterly results last Monday, investors may have thought the company's press release had a glaring error. Sales, which had never exceeded $21,000 in any prior quarter, suddenly exploded to $200 million. It was no misprint. VirnetX finally got a nice payoff after several years of lawsuits regarding patent infringements.Other companies that sue to get royalties are also hopeful for similar windfalls. And when these companies prevail, profits can grow quickly, as patent and royalty income often flow straight to the [bottom line](http://investinganswers.com/term/bottom-line-789) . So how can investors profit from companies with potentially lucrative patents? I've uncovered three companies sitting on potential gold mines in terms of their intellectual property. 1. VirnetX Holdings In the next 12 months, consumers should see an array of new smart phones offering super-fast download speeds. [See: [The Time is Ripe to Short this Wireless Upstart](http://www.streetauthority.com/node/456422) ]Yet as more and more personal and corporate information is sent out over the mobile broadband airwaves, the risk of data theft also rises. To tackle that, VirnetX has developed a range of software encryption tools to keep that wireless data secure. Many companies, including the major wireless carriers, are working to come up with their own fixes. But this little-known company has a hunch that any solution these companies come up with might impinge on its patents. So they've gone to court.Lawsuits are never easy -- until you've won a major one. That's why VirNet's victorious lawsuit against mighty Microsoft (Nasdaq: MSFT) is so important, possibly setting a precedent for future legal activity. In early March, a jury awarded the company $106 million for Microsoft's unlicensed use of a pair of VirnetX's patents. Two months later, Microsoft not only agreed to that decision, but agreed to pay a total of $200 million for the use of all 46 of VirnetX's patents. Shares quickly soared to $8 back in March when the news was first announced, but have since fallen back to $6. Now, VirNextX is gearing up to secure other licensing agreements for its technology. On Thursday, the company filed fresh lawsuits against Apple (Nasdaq: AAPL) , Cisco Systems (Nasdaq: CSCO) , Japan's NEC, and others. Action to Take --> It's impossible to predict if and when those suits will be resolved, but VirNetX's $270 million [market value](http://investinganswers.com/term/market-value-779) appears to sharply discount the prospect of a few more major legal victories. Shares could meander in coming quarters, but could spike sharply higher of any of those defendants choose to settle the lawsuit. 2. Rambus (Nasdaq: RMBS)With a mountain of technology patents under its belt, Rambus (Nasdaq: RMBS) has a long history of successfully suing any firm that appears to use its Intellectual Property ([IP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IP&selected=IP)) ) without permission. Friday morning, the company secured a licensing agreement for a few of its patents with NVidia (Nasdaq: NVDA) , pushing Rambus' shares up +5%. During the past decade, the company has waited for its patents to be broadly used before seeking legal remedies, which has usually netted between $100 million and $200 million in annual revenue.Rambus doesn't always take the aggressive legal route. In late June, it showed it can also play nice, using its considerable IP to help develop a market, rather than pounce once a market is developed. Although Rambus is best known for its IP in the area of semiconductors and telecom, it also has an impressive array of LED lighting patents, which it acquired and then augmented with its own IP.The new LED division, which uses back-light technology to provide sharper illumination, has already found its first major customer: GE ([GE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GE&selected=GE)) ) . Rambus announced in late June that they were teaming up to develop a range of newly-developed architectural lighting products. This looks like a win/win for Rambus, as it will require no capital outlays, and the company can simply share in the profits.Yet Rambus is mostly still focused on litigating when necessary. The company has recently had a string of legal victories with firms such as Sony ([SNE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SNE&selected=SNE)) ) and Samsung, which are expected to result in steadily rising royalty payments in coming quarters. And Rambus' legal momentum looks set to continue. The company is expected to imminently win a patent case with Japan's Elpida Memory, which could net close to $500 million in an upfront license, and then more revenue from ongoing royalties. Taiwan's Hynix, along with Micron Technology ([MU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MU&selected=MU)) ) , are also in Rambus' crosshairs after a recent preliminary legal decision in its favor.As is the case with all "intellectual property plays," there's no way to peg any sort of value created by some of these deals. (Details are sometimes limited for legal reasons.) So how do you place a value on a company that has erratic, but bounteous [earnings](http://investinganswers.com/term/earnings-1514) streams? A [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) ratio doesn't apply. Rambus lost nearly $1 a share last year, will likely make more than a $1 a share this year, and it's anybody's guess what will happen next year on the earnings front. In this instance, [enterprise value](http://investinganswers.com/term/enterprise-value-806) (market capitalization plus debt minus cash) is a better gauge. The company has about $600 million in net cash, implying an enterprise value of around $1.6 billion. Yet the company could snag up to $2 billion or more in fresh patent agreements over the next several years. Action to Take --> This is all very imprecise, which explains why most Wall Street firms simply avoid trying to even value and follow the stock. But with each passing year, it's apparent that Rambus' team of 290 engineers (out of 350 employees) are on the right track, developing patents that turn into major money makers. Over the next 12 months, investors should see further large checks being mailed to Rambus. 3. Interdigital (Nasdaq: IDCC)With more than 12,000 patents and patents pending, Interdigital is seen by some as the grandfather of the technology patent movement. Interdigital, like VirnetX, focuses on wireless technology. The company's software is used in the majority of all 3G cell phones and wireless networks, helping to manage bandwidth constraints, network capacity issues and security.In contrast to Rambus with its lumpy, occasionally massive one-time payments, Interdigital likes to secure long-term revenue streams. As the company has secured new long-term licensing arrangements, the company's sales -- and profits -- have steadily risen. By 2009, the company generated a company-record $284 million in [free cash flow](http://investinganswers.com/term/free-cash-flow-1000) .Although Interdigital's sales and revenue have been remarkably steady for this type of company, a few one-time payments are nevertheless spiking sales and profits this year. Analysts expect revenue to rise more than +20%, and [earnings per share ( ](http://investinganswers.com/term/earnings-share-eps-1003) [EPS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPS&selected=EPS) ) to surge more than +80% to about $3.20 in 2010. That surge also means next year's results will show a bit of a pullback. Action to Take --> With that kind of financial performance, coming up with a [fair value](http://investinganswers.com/term/fair-value-995) for the stock is indeed tricky. Dougtherty & Co. uses a weighted average of the next 10 years of [cash flow](http://investinganswers.com/term/cash-flow-1175) , arriving at a target price of $36 -- roughly +40% ahead of current levels.Analysts at Hilliard Lyons think shares are worth $34, or 12 times Interdigital's 2010 profit forecast. They also note that the company's growing cash balance is also of interest. Interdigital now has $486 million in cash ($12 a share), and analysts wonder if a share buyback, a one-time large [dividend](http://investinganswers.com/term/dividend-1304) , or even a bid to go private might be in the offing -- all usually good things for shareholders.Note: All three of these companies appear to be racking up impressive licensing deals that will, over the long-haul, generate compelling free cash flow growth. Other licensing companies to research include Qualcomm (Nasdaq: QCOM) , Digimarc (Nasdaq: DMRC) , Tessera Technologies (Nasdaq: TSRA) and Acacia Research (Nasdaq: ACTG). [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More... Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/news/3-stocks-could-see-windfall-cash-patents-456460) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 21.7999 Stock Price 2 days before: 21.3363 Stock Price 1 day before: 20.3686 Stock Price at release: 19.7829 Risk-Free Rate at release: 0.0014	21.3078
Symbol: ACTG Security: Acacia Research Corporation Related Stocks/Topics: Markets\|MU\|QCOM\|MSFT\|DMRC\|GE\|EPS\|NVDA\|AAPL\|VHC\|CSCO\|IP Title: 3 Stocks that Could See a Windfall of Cash from Patents Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-13 04:44:00 Article: When communications software firm VirnetX Holdings ([VHC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VHC&selected=VHC)) ) released quarterly results last Monday, investors may have thought the company's press release had a glaring error. Sales, which had never exceeded $21,000 in any prior quarter, suddenly exploded to $200 million. It was no misprint. VirnetX finally got a nice payoff after several years of lawsuits regarding patent infringements.Other companies that sue to get royalties are also hopeful for similar windfalls. And when these companies prevail, profits can grow quickly, as patent and royalty income often flow straight to the [bottom line](http://investinganswers.com/term/bottom-line-789) . So how can investors profit from companies with potentially lucrative patents? I've uncovered three companies sitting on potential gold mines in terms of their intellectual property. 1. VirnetX Holdings In the next 12 months, consumers should see an array of new smart phones offering super-fast download speeds. [See: [The Time is Ripe to Short this Wireless Upstart](http://www.streetauthority.com/node/456422) ]Yet as more and more personal and corporate information is sent out over the mobile broadband airwaves, the risk of data theft also rises. To tackle that, VirnetX has developed a range of software encryption tools to keep that wireless data secure. Many companies, including the major wireless carriers, are working to come up with their own fixes. But this little-known company has a hunch that any solution these companies come up with might impinge on its patents. So they've gone to court.Lawsuits are never easy -- until you've won a major one. That's why VirNet's victorious lawsuit against mighty Microsoft (Nasdaq: MSFT) is so important, possibly setting a precedent for future legal activity. In early March, a jury awarded the company $106 million for Microsoft's unlicensed use of a pair of VirnetX's patents. Two months later, Microsoft not only agreed to that decision, but agreed to pay a total of $200 million for the use of all 46 of VirnetX's patents. Shares quickly soared to $8 back in March when the news was first announced, but have since fallen back to $6. Now, VirNextX is gearing up to secure other licensing agreements for its technology. On Thursday, the company filed fresh lawsuits against Apple (Nasdaq: AAPL) , Cisco Systems (Nasdaq: CSCO) , Japan's NEC, and others. Action to Take --> It's impossible to predict if and when those suits will be resolved, but VirNetX's $270 million [market value](http://investinganswers.com/term/market-value-779) appears to sharply discount the prospect of a few more major legal victories. Shares could meander in coming quarters, but could spike sharply higher of any of those defendants choose to settle the lawsuit. 2. Rambus (Nasdaq: RMBS)With a mountain of technology patents under its belt, Rambus (Nasdaq: RMBS) has a long history of successfully suing any firm that appears to use its Intellectual Property ([IP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IP&selected=IP)) ) without permission. Friday morning, the company secured a licensing agreement for a few of its patents with NVidia (Nasdaq: NVDA) , pushing Rambus' shares up +5%. During the past decade, the company has waited for its patents to be broadly used before seeking legal remedies, which has usually netted between $100 million and $200 million in annual revenue.Rambus doesn't always take the aggressive legal route. In late June, it showed it can also play nice, using its considerable IP to help develop a market, rather than pounce once a market is developed. Although Rambus is best known for its IP in the area of semiconductors and telecom, it also has an impressive array of LED lighting patents, which it acquired and then augmented with its own IP.The new LED division, which uses back-light technology to provide sharper illumination, has already found its first major customer: GE ([GE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GE&selected=GE)) ) . Rambus announced in late June that they were teaming up to develop a range of newly-developed architectural lighting products. This looks like a win/win for Rambus, as it will require no capital outlays, and the company can simply share in the profits.Yet Rambus is mostly still focused on litigating when necessary. The company has recently had a string of legal victories with firms such as Sony ([SNE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SNE&selected=SNE)) ) and Samsung, which are expected to result in steadily rising royalty payments in coming quarters. And Rambus' legal momentum looks set to continue. The company is expected to imminently win a patent case with Japan's Elpida Memory, which could net close to $500 million in an upfront license, and then more revenue from ongoing royalties. Taiwan's Hynix, along with Micron Technology ([MU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MU&selected=MU)) ) , are also in Rambus' crosshairs after a recent preliminary legal decision in its favor.As is the case with all "intellectual property plays," there's no way to peg any sort of value created by some of these deals. (Details are sometimes limited for legal reasons.) So how do you place a value on a company that has erratic, but bounteous [earnings](http://investinganswers.com/term/earnings-1514) streams? A [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) ratio doesn't apply. Rambus lost nearly $1 a share last year, will likely make more than a $1 a share this year, and it's anybody's guess what will happen next year on the earnings front. In this instance, [enterprise value](http://investinganswers.com/term/enterprise-value-806) (market capitalization plus debt minus cash) is a better gauge. The company has about $600 million in net cash, implying an enterprise value of around $1.6 billion. Yet the company could snag up to $2 billion or more in fresh patent agreements over the next several years. Action to Take --> This is all very imprecise, which explains why most Wall Street firms simply avoid trying to even value and follow the stock. But with each passing year, it's apparent that Rambus' team of 290 engineers (out of 350 employees) are on the right track, developing patents that turn into major money makers. Over the next 12 months, investors should see further large checks being mailed to Rambus. 3. Interdigital (Nasdaq: IDCC)With more than 12,000 patents and patents pending, Interdigital is seen by some as the grandfather of the technology patent movement. Interdigital, like VirnetX, focuses on wireless technology. The company's software is used in the majority of all 3G cell phones and wireless networks, helping to manage bandwidth constraints, network capacity issues and security.In contrast to Rambus with its lumpy, occasionally massive one-time payments, Interdigital likes to secure long-term revenue streams. As the company has secured new long-term licensing arrangements, the company's sales -- and profits -- have steadily risen. By 2009, the company generated a company-record $284 million in [free cash flow](http://investinganswers.com/term/free-cash-flow-1000) .Although Interdigital's sales and revenue have been remarkably steady for this type of company, a few one-time payments are nevertheless spiking sales and profits this year. Analysts expect revenue to rise more than +20%, and [earnings per share ( ](http://investinganswers.com/term/earnings-share-eps-1003) [EPS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPS&selected=EPS) ) to surge more than +80% to about $3.20 in 2010. That surge also means next year's results will show a bit of a pullback. Action to Take --> With that kind of financial performance, coming up with a [fair value](http://investinganswers.com/term/fair-value-995) for the stock is indeed tricky. Dougtherty & Co. uses a weighted average of the next 10 years of [cash flow](http://investinganswers.com/term/cash-flow-1175) , arriving at a target price of $36 -- roughly +40% ahead of current levels.Analysts at Hilliard Lyons think shares are worth $34, or 12 times Interdigital's 2010 profit forecast. They also note that the company's growing cash balance is also of interest. Interdigital now has $486 million in cash ($12 a share), and analysts wonder if a share buyback, a one-time large [dividend](http://investinganswers.com/term/dividend-1304) , or even a bid to go private might be in the offing -- all usually good things for shareholders.Note: All three of these companies appear to be racking up impressive licensing deals that will, over the long-haul, generate compelling free cash flow growth. Other licensing companies to research include Qualcomm (Nasdaq: QCOM) , Digimarc (Nasdaq: DMRC) , Tessera Technologies (Nasdaq: TSRA) and Acacia Research (Nasdaq: ACTG). [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More... Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/news/3-stocks-could-see-windfall-cash-patents-456460) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 14.2227 Stock Price 2 days before: 14.3183 Stock Price 1 day before: 13.872 Stock Price at release: 13.8359 Risk-Free Rate at release: 0.0014	16.2908
Symbol: UTI Security: Universal Technical Institute, Inc. Related Stocks/Topics: Markets\|STRA Title: A New Federal Report Reveals Which of These Stocks to Buy Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-16 03:34:00 Article: It's been an absolutely brutal summer for the for-profit education stocks. In late June, the Senate began investigating whether for-profit academic institutions such as Apollo Group (Nasdaq: APOL) were a worthwhile use of taxpayer funds for student loans when their students have higher-than-average loan default rates. Senate investigators also questioned whether all of these institutions even offered academic benefits of sufficient value to justify such a high number of student loans.Then, in early July, the Department of Education (DOE) began to look into these issues as well, as rumors swirled that some of these firms might run into trouble if the scrutiny got even more intense. Well, that day has arrived. The DOE has just released data that show a number of these institutions are seeing their students default on loans at an alarming rate. The DOE established a 45% payback rate as the threshold that is deemed acceptable. As the chart below indicates, one can guess which schools passed the test simply by seeing what stocks are rising and which are falling in Monday trading. Several institutions exceeded that threshold, and are seeing their shares move up nicely. But the schools that failed to meet that threshold are seeing their shares take a fresh beating.The timing couldn't be worse. Congress is considering cutting off access to loan funds for for-profit schools that suffer from both high loan-default rates and poor job placement rates. Access to student loan support is the life-blood of many of these institutions.Of course, some of these schools with a high amount of poorly-performing student loans nevertheless provide useful educations. Devry ([DV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DV&selected=DV)) ) and ITT Educational ([ESI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ESI&selected=ESI)) ) have long-standing solid reputations in the fields of technical training, and high student loan defaults for these companies are partially due to a very weak [economy](http://investinganswers.com/term/economy-1517) , and not frivolous lending. Yet others such as Strayer Education (Nasdaq: STRA) and Corinthian Colleges (Nasdaq: COCO) could be quite vulnerable as they offer a higher percentage of bachelor's and master's degrees, which can be more costly than the more focused associate degree-granting schools such as Devry and ITT.The companies that passed this test must be thrilled, as they had seen their shares dragged down by some of the more dubious educational firms in the group. The thumbs-up given to Universal Technical Institute ([UTI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UTI&selected=UTI)) ) , Bridgepoint Education ([BPI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BPI&selected=BPI)) ) and Apollo Group means they are likely to escape deeper legislative restrictions and should benefit from any troubles suffered by the high-default schools, as those schools will have far fewer funds to lend. This means students will increasingly turn to the healthier academic institutions, which in turn allows those schools to be more selective, thanks to a greater applicant pool. Action to Take --> It's not clear if the Senate will take action to restrict access to student loans before the mid-term recess. And if the GOP regains control of Congress, it's not clear if they will look to clamp down, as this is an issue that has mostly been championed by Democratic legislators thus far. So it pays to watch these events unfold, but the shares in the above-noted table could have significant further upside if today's DOE report leads to Congressional action. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/news/new-federal-report-reveals-which-these-stocks-buy-456466) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 16.1917 Stock Price 2 days before: 14.9051 Stock Price 1 day before: 14.6553 Stock Price at release: 14.6488 Risk-Free Rate at release: 0.0015	17.7355
Symbol: RDWR Security: Radware Ltd. Related Stocks/Topics: Markets\|RDCM Title: 5 Small Cap Stocks to Buy Now Type: News Publication: Louis Navellier Publication Author: Unknown Date: 2010-08-16 06:54:00 Article: These Small Cap Tech Stocks Are Red-HotThis month my favorite small cap stocks to buy are largely technology stocks, which is not surprising as consumer electronics, IT providers and other technology firms are seeing strong sales even as other sectors suffer.That's because a mix of hot new gadgets like the Amazon (NASDAQ: [AMZN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=amzn&selected=amzn) ) Kindle and the Apple (NASDAQ: [AAPL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=aapl&selected=aapl) ) iPhone 4 remain hot commodities even when consumers aren't spending on other big-ticket items. Also, while companies are reluctant to hire new workers, they simply must upgrade computer systems to stay competitive and boost productivity without adding more bodies to the payroll. These trends have resulted in impressive earnings for the quarter across a number of technology stocks.Here are my favorite small cap stocks in the tech sector now.[small cap stocks to buy](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)[Navellier's #1 ETF to Own](http://www.investorplace.com/order/?sid=YE3158)#1 - Radware Ltd. ([RDWR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RDWR&selected=RDWR)) )Radware Ltd. (NASDAQ: [RDWR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=rdwr&selected=rdwr) ) makes networks work smarter by searching the best path for data and optimizing traffic. This allows companies to run their IT systems more efficiently instead of having to pony up big money for new hardware. According to recent earnings, Radware revenues were $35.2 million on the quarter, a 30% increase when compared with the $27.1 million that the company posted in the second quarter of 2009. Earnings for RDWR were $4.3 million, or $0.21 per share, compared with $0.6 million, or $0.03 per share, in the equivalent quarter last year. Analysts had predicted earnings of $0.20, resulting in a positive surprise of 5% for the company.That's a good sign of future growth.[small cap stocks to buy, rdwr stock](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)[Navellier's #1 ETF to Own](http://www.investorplace.com/order/?sid=YE3158)#2 - Acme Packet Inc. ([APKT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=APKT&selected=APKT)) )Acme Packet Inc. (NASDAQ: [APKT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=apkt&selected=apkt) ), based in Burlington, Mass., is a high-tech company that makes communications equipment that helps Internet-based networks communicate more easily with each other.The company recently reported second-quarter financial results showing record gains. Total revenue for the quarter was $53.3 million, compared with $32.9 million last year, resulting in a year-over-year increase of 62%. Net income stood at $12.4 million, or $0.18 per share, at the end of the quarter, compared with $4.5 million, or $0.07 per share, in the previous year's second quarter. Analysts had predicted earnings of $0.17 per share, yielding a 5.88% earnings surprise for the company. Acme's fundamentals are sound, and I'm bullish on this small-cap tech stock.[Acme Packet Small Cap](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)[Navellier's #1 ETF to Own](http://www.investorplace.com/order/?sid=YE3158)#3 - Radcom ([RDCM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RDCM&selected=RDCM)) )Radcom (NASDAQ: [RDCM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=rdcm&selected=rdcm) ) is an Israel-based company, which makes test equipment and software used in the creation, installation and maintenance of corporate computer networks.Most recently, the stock was buoyed by an excellent financial report for the second quarter. The company said that its quarterly revenue was $4.6 million, an increase of 77% compared with last year's equivalent quarterly revenue of $2.6 million. Net income was $487,000, or $0.09 per share, compared with a loss of $795,000, or $0.16 per share, in 2009. This equated to a remarkable 156% year-over-year increase. [Radcom (NASDAQ:RDCM)](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)[Navellier's #1 ETF to Own](http://www.investorplace.com/order/?sid=YE3158)#4 - Spreadtrum ([SPRD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SPRD&selected=SPRD)) )Spreadtrum Communications (NASDAQ: [SPRD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=sprd&selected=sprd) ) designs and markets baseband communications chips for the red-hot wireless telecom market. The company's semiconductors, which are compatible with a range of international wireless standards, are sold to manufacturers of cell phones, which then incorporate them into their products.Spreadtrum reported strong sales for its second quarter Aug 12. In its report, the company said sales increased fourfold to $71.4 million from only $16.2 million a year ago. When compared with analysts' expectations for sales of $67.1 million, the company recorded a 6.41% sales surprise.While the company did beat sales estimates, overall EPS missed estimates. However, investors didn't care as the stock was up 4.6% at the close on Friday. Earnings for the quarter were $11.1 million, or $0.21 per share, which came in below analysts' estimates of $0.23 per share - a miss of 8.70%. Still, on a year-over-year basis, the company posted an increase in earnings of 172%. The real reason for the stock's strong market performance following earnings was the sales increase and its strong guidance for the third quarter. The company expects sales of $88 million to $96 million in the period, significantly higher than analysts' forecasts of $76.7 million. [small cap stocks to buy, sprd stock](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)[Navellier's #1 ETF to Own](http://www.investorplace.com/order/?sid=YE3158)#5 - FSI International ([FSII](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FSII&selected=FSII)) )FSI International Inc. (NASDAQ: [FSII](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=fsii&selected=fsii) ) is a tech stock in the cleaning business. Specifically, it designs, manufacturers and markets machines that are used to clean semiconductor wafers.In its latest quarter, FSI International's sales rose 86.4% to $28.7 million, compared with $15.4 million in the same quarter a year earlier. During the same period, its earnings rose to $5.9 million, or $0.18 per share, compared with a loss of $2.8 million, or $0.09 per share, previously. The analyst community had been expecting earnings of $0.14 per share, so FSI International posted a 28.6% earnings surprise. The company announced that it received orders totaling $29.5 million, which is near the high-end of its previous guidance.[small cap stocks to buy, fsii stock](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)[Navellier's #1 ETF to Own](http://www.investorplace.com/order/?sid=YE3158) Stock Price 4 days before: 21.5745 Stock Price 2 days before: 21.7628 Stock Price 1 day before: 21.5081 Stock Price at release: 21.4929 Risk-Free Rate at release: 0.0015	38.6557
Symbol: PAR Security: PAR Technology Corporation Related Stocks/Topics: CBOE\|Markets\|DELL\|LOW\|SYY\|URBN\|A Title: Opening View: DJIA Extends Losses on Weak Japanese GDP Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-08-16 07:49:00 Article: The Dow Jones Industrial Average (DJIA) plunged more than 3% last week, as traders lost confidence in the strength of the global economic recovery. The Dow held support near 10,300 for the week, but that support level will be tested once again this morning, as futures on the DJIA are pointing toward an opening loss of about 30 points. Elsewhere, S&P 500 Index (SPX) futures are trading roughly 4.5 points below fair value, placing the broad-market index on a collision course with last week's low near 1,076. The focus in early Wall Street action is the weaker-than-expected report on Japanese gross domestic product and today's release of the New York Fed's Empire State manufacturing index. Finally, VIX watchers should note that the CBOE Market Volatility Index (VIX) closed above its 10-week moving average for the first time since June 11 on Friday. Last week's heavy losses on Wall Street drove volatility higher once again, but the VIX still remains capped by resistance in the 27 area, above which the index has not closed a session since July 6.In equity news, Dell Inc. ([DELL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DELL&selected=DELL)) ) announced that it is buying 3Par Inc. ([PAR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PAR&selected=PAR)) ) for $18 per share. The offer values PAR at an 86% premium to the stock's close at $9.65 per share on Friday. Dell said the acquisition would add to its earnings starting in 2012. Elsewhere, Lowe's Companies Inc. ([LOW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LOW&selected=LOW)) ) reported second-quarter earnings of $832 million, or 58 cents per share, as sales grew to $14.4 billion. Analysts were expecting a profit of 59 cents per share. Looking ahead, the company sees third-quarter earnings of 28 cents to 32 cents per share, with fiscal 2010 earnings coming in the range of $1.38 to $1.45 per share. Earnings Preview On the earnings front, Agilent Technologies Inc. ([A](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=A&selected=A)) ), Sysco Corp. ([SYY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SYY&selected=SYY)) ), and Urban Outfitters Inc. ([URBN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=URBN&selected=URBN)) ) are scheduled to release their quarterly earnings report today. Keep your browser at [SchaeffersResearch.com](http://www.schaeffersresearch.com/) for more news as it breaks. Economic Calendar The New York Fed will release its Empire State Manufacturing Survey for August today, but traders will have a lot of economic data to consider on Tuesday. The Commerce Department will release reports on housing starts and building permits for July, while the Labor Department will supply July readings on the Producer Price Index (PPI) and the core PPI. Meanwhile, the Federal Reserve will report on industrial production in July. The usual weekly report on U.S. petroleum supplies is due on Wednesday. The weekly report on initial jobless claims will be released on Thursday, along with the Conference Board's Leading Indicators Index for July, and the Philadelphia Fed Index for August. There are no major economic reports scheduled for Friday. Market Statistics Equity option activity on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) saw 775,613 call contracts traded on Friday, compared to 518,793 put contracts. The resultant single-session put/call ratio arrived at 0.67, while the 21-day moving average held at 0.61. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100816ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100816ov2.gif)The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher. [Dow, S&P and Nasdaq futures](http://www.schaeffersresearch.com/images/commentary/2010/100816ov3.gif) Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up [here](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=O&CODE=SIRG07D) for free daily delivery, straight to your inbox, before the opening bell. Overseas Trading Overseas trading remains weak this morning, as only three of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a loss of 0.06%. Weaker-than-expected gross domestic product ([GDP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GDP&selected=GDP)) ) out of Japan set a bearish tone in early Asian trading, but Chinese stocks bucked the overall downtrend to finish more than 2% higher. According to economists, Japan's weak GDP hints that the country could be overtaken by China as the world's second-largest economy. In Europe, stocks took their cues from Asia, heading lower in early trading activity. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100816ov4.gif)Currencies and Commodities The U.S. Dollar Index is pulling back from resistance near the 83 level in Asian trading, as the euro and the yen rebounded from near-term lows. Currently, the index is hovering above support in the 82.50 region, after falling 0.51% to 82.53. In commodities, gold continues to benefit from safe-haven buying, with the precious metal gaining $7.90 to trade at $1,224.50 in London. Finally, crude prices have rebounded from support, and are up 34 cents at $76.11 per barrel. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100816ov5.gif)**Unusual Put and Call Activity:For an explanation of how to use this information, check out our [Education Center](http://www.schaeffersresearch.com/schaeffersu/) topics on [Option Volume](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?ID=220#220) and [Open Interest Configurations](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?id=221) . [Unusual options activity - puts](http://www.schaeffersresearch.com/images/commentary/2010/100816ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100816ov7.gif) [Follow Schaeffer's to the San Francisco MoneyShow Aug. 19 -- 21, 2010! Click here for details, including a list of scheduled presentations and how to register.](http://www.schaeffersresearch.com/edge/road.aspx)** All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 9.51816 Stock Price 2 days before: 9.67079 Stock Price 1 day before: 10.4566 Stock Price at release: 17.8895 Risk-Free Rate at release: 0.0015	32.9128
Symbol: NG Security: NovaGold Resources Inc. Related Stocks/Topics: Markets Title: Natural Gas Daily Technical Outlook Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-08-16 08:41:00 Article: Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) Intraday bias in Natural gas remains neutral for the moment and some more consolidations could still be seen above 4.257. Nevertheless upside is expected to be limited by 4.556 resistance and bring another fall. Below 4.257 will resume whole decline from 5.196 and target a test on 3.81 key support level next. On the upside, though, above 4.556 will mix up the outlook and turn focus back to 5.007 resistance instead.In the bigger picture, the main question remains on whether Natural gas's fall from 6.108 is finished at 3.71 already as it just drew strong support from 61.8% retracement of 2.409 to 6.108 at 3.822. We'll stay neutral first. On the downside, break of 3.81 will revive the case that whole medium term rebound from 2.409 is finished at 6.108 already and will bring even deeper fall to retest this low. On the upside. Though, note that break of 5.007 will argue that rise from 2.409 is not finished yet and will extend for making another high above 6.108 before completion. [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/16/16153.jpg) [Image](http://img.ibtimes.com/www/data/articles/full/2010/08/16/16154.jpg) Stock Price 4 days before: 6.56295 Stock Price 2 days before: 6.63559 Stock Price 1 day before: 6.6823 Stock Price at release: 6.695 Risk-Free Rate at release: 0.0015	8.4853
Symbol: BKE Security: The Buckle, Inc. Related Stocks/Topics: FL\|Markets\|WMT\|LOW\|TJX\|HD\|BJ Title: Futures down ahead of retail reports Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-08-16 08:58:00 Article: U.S. stock futures are following overseas markets lower after a weak economic report from Japan and as investors brace for a wave of retail earnings. [LOW Chart](http://www.optionmonster.com/cms/commentary/images/lowpre816.png) The S&P 500, Dow Jones Industrial Average and Nasdaq are indicated down about 0.3 percent to 0.5 percent, following a decline of about 3 percent last week as stocks failed to sustain a rally that had taken shape in early July. Japan's economic growth slowed to just 0.1 percent in the second quarter from 1.2 percent in the first three months of the year. It comes amid slowing in both China and the United States, where the New York Federal Reserve Bank will release the Empire State Manufacturing Index at 8:30 a.m. ET today. It's expected to come in at 8, up from 5.08 last month.Headlines have been turning negative for the retail sector recently as spending remains weak: This morning home-improvement chain Lowe's cut its full-year revenue outlook. Last week, J.C. Penney slashed its earnings forecast and the Commerce Department reported lackluster retail sales gains for July.Investors will also be bracing for results from companies such as Home Depot, Wal-Mart, and TJX tomorrow morning, followed by BJ's Wholesale and specialty retailers such as Foot Locker and Buckle later in the week.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 26.0584 Stock Price 2 days before: 25.8585 Stock Price 1 day before: 25.7831 Stock Price at release: 25.7721 Risk-Free Rate at release: 0.0015	28.1343
Symbol: SA Security: Seabridge Gold Inc. Related Stocks/Topics: Markets Title: The Expendables? Beware the Sequel Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-08-16 10:30:00 Article: Good Morning,Something we have alluded to in previous posts became official overnight: China overtook Japan for the title of 'world's No. 2 economy.' Following thirty years of relentless hard work and unwavering determination, the country can now boast that it is, in fact, on course to capture the top global economic spot as well -in about another two decades-and wrest it away from the United States.This rosy future is, of course, something that will only come about provided that there are no social 'bumps in the road' such as the ones you will read about, further below. Suffice it to say that the head of China's Bureau of Statistics cautioned earlier this year that we should all have a 'sober understanding that China remains a developing nation.' One saddled with a large segment of its population still in poverty. However, the 'expendables' should be viewed as anything but. More on that, at the end of this post. Mind you, many an economist warns that using quarterly data to compare Chinese versus Japanese GDP has its own risks and that the two countries continue to overtake each other, depending on the season and the metrics used for such calculations (such as forex differentials, for example). At any rate, the news from China helped set into motion a set of market moves overnight, the echoes of which were still being felt this morning.Specifically, the US dollar was mostly lower on the news, losing 0.54% on the trade-weighted index and reaching 82.44 at last check. Risk appetite was initially tempered by the news that China achieved such a feat mainly on a quite disappointing slowdown in Japan's Q2 GDP. The Japanese economy is now slated to grow at only about 1.4% next year, as against earlier projections calling for a 1.7% rate of growth.The euro, on the other hand, gained just a tad, rising to $1.280 against the greenback. Eurozone inflation picked up the pace, according to reports issues this morning. The region experienced a core price rise of 1% (with an overall reading of 1.7%- the highest in 20 months). Meanwhile, surprise! - net foreign purchases of US long-term debt instruments rose by about $9 billion in June, even as those same investors sold US equities and corporate bonds on a net basis.One more forum-based urban myth was dealt a bit of a blow with this morning's news. Recall that -for most of 2009- we were solemnly promised not only the demise of the US dollar, the US stock market, the US housing market, and assorted other markets, but also the advent of a tsunami of loan defaults. The dominoes entailed -in short succession after the mortgage delinquency debacle-auto loans and credit card loans.Well, Capital One (yes, the one with those friendly barbarians at the gate) announced this morning that its credit card defaults fell for the fourth straight month. This is the third largest issuer of little bits of plastic bearing the VISA logo, folks. What else did Capital One have to report? That its auto loan charge-off rate was 2.6% in July - down from 2.72% in June. Charge-off rates and delinquency rates also fell at Capital's international operations. Hello, hello. US stock index futures indicated a lower opening, as the Japanese GDP data had market participants fretting about global economic conditions despite China's advance in the race. The Dow finished its worst performance in a month-and-a-half last Friday following poor US economic data and a fretting Fed that appears to be out of ammo with which to stimulate growth.On the back of such apprehensions, gold prices added nearly one additional percent to Friday's closing values as the market opened for a new trading week. Spot prices came within striking distance of overhead resistance thought to be found just above the $1230 round figure. The yellow metal opened with a $9.40 per ounce gain this morning, and was quoted at $1224.80 on the bid side.The most recently available CFTC data indicates that the speculative length for COMEX gold rose for the second week in a row. Gross long non-commercial gold positions on the exchange amount to 747 tonnes (the net long figure is 669 tonnes) as of last week, up 7 tonnes from the previous reporting period.Analysts at Standard Bank ([SA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SA&selected=SA)) ) note that: "While the rise in speculative longs is still marginal and well below 975 tonnes reached in May, non-commercial shorts continue to decline. This may indicate that short positions are now less confident of a gold price decline in coming weeks." Over the weekend, some physical offtake ahead of a festival next week was noted in India, but not all that much, to be sure.Once again, our local sources confirmed that at levels above $1,200 per ounce, local would-be buyers turn into willing sellers - the calendar, notwithstanding. Commerzbank metals analysts opine that sharp gains in gold could be truncated by the ebbing of physical demand from the all-important jewellery segment (as seen in Asia). None of this has stemmed the flow of ultra-bullish news from permeating gold forums once again. Why, there is even a trend to quote (gasp!) Goldman Sachs (you know, the uber-evil perpetrators of gold price suppression/manipulation schemes) as the best evidence of an upcoming gold 'moonshot' (even if Goldman only sees $1,300 in six months' time). Now that they have said that , they are credible, folks. Whatever suits the agenda...Silver advanced a dime, opening at $18.24 per troy ounce. Meanwhile, platinum and palladium staged their own mini-recovery, with the former rising $8 to start at $1529.00 per ounce, and the latter climbing $2 to the $478.00 level. No change was reported in rhodium, with a quote of $2,070.00 on the bid. For the time being, news of GM's impending IPO offering is lending support to the noble metals group.At what point the weak Japanese GDP data and global slowdown worries might come to impact the industrial and noble metals complex, remains to be seen. For the moment, the markets awaited the release of NY Fed data relating to the Empire State's manufacturing activity this morning. The figures showed a bit of an improvement in the region's conditions and the findings helped stem losses in Dow futures.And now, back to China. Number two on the global economic billboard; but, at what cost? One you may not care to think about, but might soon have to. A study recently conducted on behalf of Credit Suisse found that there is a pool of unreported income approaching $1.1 trillion being stashed by that country's most wealthy citizens under -literally-countless mattresses.That staggering stash of cash represents about a third of China's GDP. Buried in that seemingly appetizing (to gold and other commodity bulls) statistic is the fact that such a cash pile actually underscores the huge and widening gap between China's haves and have-nots. It is one of the reasons this writer takes reports of putative gold shopping sprees in China with a large grain of MSG. They probably largely reflect the buying patterns of the same yuppies who are snapping up $4,000 snakeskin purses at the local Gucci franchise, and very little of that of the "man in the street." Back in 2005, the government of China was urged to focus on ameliorating the plight of migrant workers and farmers. Even back then, the yawning chasm between the country's newly rich and the perennially poor was seen as a potential threat to the country's 'social harmony.' Now, Bloomberg's Will Pesek [reports](http://www.bloomberg.com/news/2010-08-15/beware-1-trillion-lying-under-chinese-mattress-william-pesek.html) that something known as the "Gini coefficient" - a statistical measure of "wealth equality," reached 0.47, a figure higher than the recognized "warning level" of 0.4. This was reported by the Economic Information Daily, a government-affiliated newspaper, this past May.Mr. Pesek concludes that : "You can censor [Google Inc.](http://www.bloomberg.com/apps/quote?ticker=GOOG:US) 's search engine. You can't hide the fact that a handful of Chinese are getting very rich from the billion-plus workers being left behind. Anger will rise, tempers will flare and things could get out of control. Try stuffing that under a mattress."Food for thought. Hot sauce, not optional, in this case. Jon Nadler****Senior Analyst, Kitco Metals Inc.North AmericaUS & Canada Toll Free: 1 (877) 839-8036Websites:www.kitco.comandwww.kitco.cn********Blog:http://www.kitco.com/ind/index.html#nadler Stock Price 4 days before: 25.2027 Stock Price 2 days before: 25.3152 Stock Price 1 day before: 25.5512 Stock Price at release: 26.0626 Risk-Free Rate at release: 0.0015	29.3091
Symbol: RDWR Security: Radware Ltd. Related Stocks/Topics: Markets\|RDCM Title: 5 Small Cap Stocks to Buy Now Type: News Publication: Louis Navellier Publication Author: Unknown Date: 2010-08-16 10:54:00 Article: These Small Cap Tech Stocks Are Red-HotThis month my favorite small cap stocks to buy are largely technology stocks, which is not surprising as consumer electronics, IT providers and other technology firms are seeing strong sales even as other sectors suffer.That's because a mix of hot new gadgets like the Amazon (NASDAQ: [AMZN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=amzn&selected=amzn) ) Kindle and the Apple (NASDAQ: [AAPL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=aapl&selected=aapl) ) iPhone 4 remain hot commodities even when consumers aren't spending on other big-ticket items. Also, while companies are reluctant to hire new workers, they simply must upgrade computer systems to stay competitive and boost productivity without adding more bodies to the payroll. These trends have resulted in impressive earnings for the quarter across a number of technology stocks.Here are my favorite small cap stocks in the tech sector now.[small cap stocks to buy](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)[Navellier's #1 ETF to Own](http://www.investorplace.com/order/?sid=YE3158)#1 - Radware Ltd. ([RDWR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RDWR&selected=RDWR)) )Radware Ltd. (NASDAQ: [RDWR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=rdwr&selected=rdwr) ) makes networks work smarter by searching the best path for data and optimizing traffic. This allows companies to run their IT systems more efficiently instead of having to pony up big money for new hardware. According to recent earnings, Radware revenues were $35.2 million on the quarter, a 30% increase when compared with the $27.1 million that the company posted in the second quarter of 2009. Earnings for RDWR were $4.3 million, or $0.21 per share, compared with $0.6 million, or $0.03 per share, in the equivalent quarter last year. Analysts had predicted earnings of $0.20, resulting in a positive surprise of 5% for the company.That's a good sign of future growth.[small cap stocks to buy, rdwr stock](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)[Navellier's #1 ETF to Own](http://www.investorplace.com/order/?sid=YE3158)#2 - Acme Packet Inc. ([APKT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=APKT&selected=APKT)) )Acme Packet Inc. (NASDAQ: [APKT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=apkt&selected=apkt) ), based in Burlington, Mass., is a high-tech company that makes communications equipment that helps Internet-based networks communicate more easily with each other.The company recently reported second-quarter financial results showing record gains. Total revenue for the quarter was $53.3 million, compared with $32.9 million last year, resulting in a year-over-year increase of 62%. Net income stood at $12.4 million, or $0.18 per share, at the end of the quarter, compared with $4.5 million, or $0.07 per share, in the previous year's second quarter. Analysts had predicted earnings of $0.17 per share, yielding a 5.88% earnings surprise for the company. Acme's fundamentals are sound, and I'm bullish on this small-cap tech stock.[Acme Packet Small Cap](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)[Navellier's #1 ETF to Own](http://www.investorplace.com/order/?sid=YE3158)#3 - Radcom ([RDCM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RDCM&selected=RDCM)) )Radcom (NASDAQ: [RDCM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=rdcm&selected=rdcm) ) is an Israel-based company, which makes test equipment and software used in the creation, installation and maintenance of corporate computer networks.Most recently, the stock was buoyed by an excellent financial report for the second quarter. The company said that its quarterly revenue was $4.6 million, an increase of 77% compared with last year's equivalent quarterly revenue of $2.6 million. Net income was $487,000, or $0.09 per share, compared with a loss of $795,000, or $0.16 per share, in 2009. This equated to a remarkable 156% year-over-year increase. [Radcom (NASDAQ:RDCM)](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)[Navellier's #1 ETF to Own](http://www.investorplace.com/order/?sid=YE3158)#4 - Spreadtrum ([SPRD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SPRD&selected=SPRD)) )Spreadtrum Communications (NASDAQ: [SPRD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=sprd&selected=sprd) ) designs and markets baseband communications chips for the red-hot wireless telecom market. The company's semiconductors, which are compatible with a range of international wireless standards, are sold to manufacturers of cell phones, which then incorporate them into their products.Spreadtrum reported strong sales for its second quarter Aug 12. In its report, the company said sales increased fourfold to $71.4 million from only $16.2 million a year ago. When compared with analysts' expectations for sales of $67.1 million, the company recorded a 6.41% sales surprise.While the company did beat sales estimates, overall EPS missed estimates. However, investors didn't care as the stock was up 4.6% at the close on Friday. Earnings for the quarter were $11.1 million, or $0.21 per share, which came in below analysts' estimates of $0.23 per share - a miss of 8.70%. Still, on a year-over-year basis, the company posted an increase in earnings of 172%. The real reason for the stock's strong market performance following earnings was the sales increase and its strong guidance for the third quarter. The company expects sales of $88 million to $96 million in the period, significantly higher than analysts' forecasts of $76.7 million. [small cap stocks to buy, sprd stock](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)[Navellier's #1 ETF to Own](http://www.investorplace.com/order/?sid=YE3158)#5 - FSI International ([FSII](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FSII&selected=FSII)) )FSI International Inc. (NASDAQ: [FSII](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=fsii&selected=fsii) ) is a tech stock in the cleaning business. Specifically, it designs, manufacturers and markets machines that are used to clean semiconductor wafers.In its latest quarter, FSI International's sales rose 86.4% to $28.7 million, compared with $15.4 million in the same quarter a year earlier. During the same period, its earnings rose to $5.9 million, or $0.18 per share, compared with a loss of $2.8 million, or $0.09 per share, previously. The analyst community had been expecting earnings of $0.14 per share, so FSI International posted a 28.6% earnings surprise. The company announced that it received orders totaling $29.5 million, which is near the high-end of its previous guidance.[small cap stocks to buy, fsii stock](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)[Navellier's #1 ETF to Own](http://www.investorplace.com/order/?sid=YE3158) Stock Price 4 days before: 21.9882 Stock Price 2 days before: 21.7628 Stock Price 1 day before: 21.5081 Stock Price at release: 21.6411 Risk-Free Rate at release: 0.0015	37.7051
Symbol: MLP Security: Maui Land & Pineapple Company, Inc. Related Stocks/Topics: PAA\|Markets\|EPD\|L Title: MLPs: Strong Investment Vehicles in Uncertain Economic Times Type: News Publication: SeekingAlpha Publication Author: Unknown Date: 2010-08-17 01:05:00 Article: [The Energy Report](http://www.theenergyreport.com/) submits:Credit Suisse Analyst Yves Siegel believes master limited partnerships (MLPs) are strong investment vehicles, particularly in uncertain economic circumstances. He explains: In this exclusive interview withThe Energy Report,Yves talks about the "Big Kahuna" and a handful of other well-managed MLP names with impressive yields and sector-leading growth prospects. The Energy Report: Yves, as of July 20, 2010 the Alerian MLP Index was up 13.7% for the year, whereas the S&P 500 was down 4.5%. What factors are allowing MLPs to vastly outperform the market right now?Yves Siegel: I think it's pretty simple. Firstly, MLPs are viewed as good defensive investments in times of uncertainty. Secondly, MLPs provide investors with an attractive, partially tax-deferred yield. Right now, the average MLP yield is around 6.5%. Thirdly, with distributions there's the potential income growth that could average 3% -6%. The yield plus distribution growth still provides a pretty good investment value proposition. I don't think there are many other places where investors can put their dollars and get a nice return with very moderate risk. TER: Is this an unprecedented time in terms of money pouring into MLPs?YS: I'm not sure it's unprecedented. Back in 2007, you had a lot of inflow of capital. The difference is the money attracted to the MLP space back in 2007 was what I could call "fast money." It was more hedge fund-based than the more traditional retail investor. They were attracted to the unprecedented growth in MLP distributions. Those investors tended to have a much shorter time horizon. I think they correctly viewed MLPs as a good place to invest, but perhaps too much of a good thing is no longer a good thing. TER: You mentioned the tax-deferred status of MLP distributions. Is Credit Suisse concerned that the combination of the US federal cash crunch and the success of MLPs in this bear market could lead to further taxes?YS: There's always a risk that someone in government will take a harder view of the MLPs. We don't see that on the near-term horizon. We would say that the MLPs are building a lot of the necessary energy infrastructure in the United States and that this is creating a lot of jobs. MLPs provide a really valuable service, and I don't think it makes a whole lot of sense to change the tax status. TER: Kinder Morgan Energy Partners L.P. ([KMP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KMP&selected=KMP)) ) did a $75-million equity financing in June and Energy Transfer Partners L.P. ([ETP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ETP&selected=ETP)) ) raised about $437 million in a recent financing. In total, MLPs have raised $7.2 billion in equity financings so far this year. Is this normal, or is this amount of dilution cause for alarm?YS: I'd be careful using the term "dilution." The MLP business model is such that nearly all of the cash flow - after maintenance capital - is distributed to the unit holders. In most conventional businesses, you retain a portion of your cash flow to reinvest in the business. MLPs generally do not do that because of the structure. That raises the question: How do you grow if you're distributing all your cash?The answer: You have to rely on external capital, both equity and debt. As I said earlier, MLPs are financing the infrastructure growth in the US They're building the pipelines, storage assets and processing assets necessary to get the new energy supplies to market. The way they finance that growth is by issuing equity and issuing debt. It's really important to recognize that the MLP structure is very transparent. Just follow the cash. If MLPs were not able to invest that cash productively (i.e., have a return in excess of their cost of capital), they wouldn't be able to continue accessing external capital. That transparency is a plus. The mindset is: I have to be a good steward of capital from investors; otherwise I'm not going to be able to go back and ask them for more money. That rationale is incredibly important. As long as MLPs have good investment opportunities, you'll see relatively high financing requirements and a lot of equity and debt being raised. TER: Is the $7.2 billion invested so far this year a lot higher than that over the same period last year?YS: The pace of equity offerings has quickened this year relative to 2008 and 2009 when $6.4 billion and $6.8 billion was raised respectively in each year. This is due in part to the deferral of offerings in those years due to difficult market conditions. TER: So, this isn't abnormal?YS: No, it's not. TER: You have an outperform rating on Energy Transfer Partners. Why do you have an outperform rating on them, and what does ETP plan to do with that capital?YS: Energy Transfer is one of the companies that we can point to as building out the US infrastructure. Specifically, Energy Transfer is involved in two ongoing multibillion-dollar projects to take shale play gas to market. They're building a Fayetteville pipeline that services the Fayetteville Shale and they have the Tiger Pipeline to access the Haynesville Shale. We at Credit Suisse embrace the notion that there will be many investment opportunities around developing the shale plays in the US. We like Energy Transfer because we see them being able to grow the company via building these pipelines and benefit from the incremental cash flow that the pipelines will generate. We also think the management team is very good and has a very good track record of building shareholder value. Lastly, the MLP has a very nice yield - just north of 7%. TER: Which MLPs stand to benefit most from their shale-play investments?YS: Well, you have Boardwalk Pipeline Partners, L.P. ([BWP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BWP&selected=BWP)) ). They've spent some $5 billion on long-haul interstate pipelines accessing some shale plays, such as the Fayetteville and Barnett Shales. They also have some exposure to Haynesville. Energy Transfer has a couple of pipeline projects. Enterprise Products Partners, L.P. ([EPD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPD&selected=EPD)) ) has multibillion-dollar investments surrounding the Eagle Ford Shale, which is a new play folks like because not only does it have a lot of natural gas, it also has a lot of associated natural gas liquids (NGLs). EPD is very well poised to benefit from that play.The "Big Kahuna," Kinder Morgan, also has exposure to various shale plays, including the Haynesville play via their KinderHawk joint venture in Louisiana. They also have large pipeline assets in Texas that give them exposure to the Barnett Shale, and they're a partner with Energy Transfer on the Fayetteville Express Pipeline. They've also teamed up with a small MLP called Copano Energy, L.L.C. ([CPNO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CPNO&selected=CPNO)) ) to access the Eagle Ford Shale. Those are just a few of the MLPs that have nice exposure to the shale plays. TER: A lot of these MLPs are quite large. Is it more encouraging that the "Big Kahuna" is making investments in the shale plays? YS: Just from the vantage point that Rich Kinder is one of the smartest guys around. Typically, they do an excellent job of trying to identify trends and investing in those trends. Kinder Morgan being there confirms that these shale plays are real, and I think are very viable for the long term. You can make the same case for Enterprise. I mean those guys are extraordinarily bright, as is Energy Transfer's management. TER: You mentioned that one of the things making these shale plays viable is the NGLs, which require little processing. But, in your research, you also say that the NGL prices will be somewhat lower for the next while. YS: You have to be careful because not all shale plays are alike. Some have more NGL content than others. I think it's sort of good news and bad news. The good news is that there's a lot of natural gas around. The bad news is that, from a pricing perspective, it's still supply and demand. If there's a lot of supply and not that much demand, it does put some pressure on prices.As we come out of this recession, we're still building demand. Consequently, natural gas prices are somewhat depressed. We know that crude oil prices are fairly attractive in the $75-$80 range. When natural gas is produced, typically it comes out of the ground wet and has to be processed. The more NGLs produced as a byproduct, the more value that accrues to the producer. TER: A premium. YS: Yes. NGL prices tend to track crude because they compete with crude in the petrochemical market. In an environment where natural gas prices are depressed and crude oil prices are strong, NGLs add a really nice premium. Consequently, producers are going to drill in areas that have the liquids-rich natural gas. That's what we're seeing, and that's why the Eagle Ford is such an attractive proposition for producers today. TER: Which MLPs have a fair amount of exposure to the NGLs?YS: About a third of Enterprise Products Partners' business is exposed to the natural gas liquids. They just reported on their second quarter earlier this week. That business was very, very strong. In our universe, that's the one company that has the most exposure. There are other companies we don't follow that also have some exposure. ONEOK Partners, L.P. ([OKS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OKS&selected=OKS)) ) is similar to Enterprise in that they have an integrated value chain on the NGL side. There's a host of smaller MLPs that primarily do natural gas processing. Those would include companies like DCP Midstream Partners, L.P. ([DPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DPM&selected=DPM)) ), MarkWest Energy Partners, L.P. ([MWE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MWE&selected=MWE)) ) and Targa Resources Partners, L.P. ([NGLS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NGLS&selected=NGLS)) ). I would classify those companies as more "pure-play" NGL companies. TER: Going back to your Credit Suisse MLP market overview. It said:You discussed the first two earlier. Tell us why you like Plains. YS: What's so glamorous about Plains All American? They're focused on the movement of crude oil through pipelines, and they also have large storage operations. They recently did an IPO of their natural gas-storage business - PAA Natural Gas Storage, L.P. ([PNG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PNG&selected=PNG)) ). I'm not enamored necessarily with the crude logistics business, but I am enamored with really strong management teams that have consistently delivered year in and year out and have a track record of providing shareholder value. Plains All American is what I'd like to characterize as my "Rip Van Winkle stock." I feel I could put my money in Plains and sort of sleep for a while, then wake up to find my investment has grown nicely and feel pretty good about it. That's the Plains All American story-really exceptional managers, great stewards of capital and just a very, very nice track record. TER: Can you talk about Boardwalk's and Enterprise's management teams?YS: Boardwalk has very strong pipeline management. They know what they are doing. They benefit from the assistance of Loews Corp. ([L](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=L&selected=L)) ), a holding company run by the Tisch family that owns the general partnership ((GP)), and that has been successful guiding the partnership. Boardwalk also has a very capable natural gas pipeline management team that calibrates risk very well.Then you have Enterprise Products Partners, which was started by Dan Duncan, an impressive visionary in the industry. EPD is a little more of a risk taker than perhaps Boardwalk. By risk taker, I mean a bit more entrepreneurial. Duncan's built the largest MLP that has favorable investment characteristics due to its very large footprint; they are well diversified in different businesses. They have the natural gas liquids business, wherein they are the premier NGL publicly traded company. Then they have natural gas pipelines, refined petroleum products pipelines and crude pipelines. And they are very conservatively financed. It's almost unprecedented to see an MLP that has a 1.2, 1.3 coverage ratio - especially being as large as Enterprise. This is one I'd strongly consider as a core holding among the MLPs. TER: That's quite the endorsement. Spectra Energy Partners, L.P. ([SEP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SEP&selected=SEP)) ), Magellan Midstream Partners, L.P. ([MMP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MMP&selected=MMP)) ) and Duncan Energy Partners, L.P. ([DEP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DEP&selected=DEP)) ) are all at the bottom of your capital-cost table. Does this position these MLPs for growth? Or does cheap money often lead to bad decisions?YS: I would agree that cheap money often leads to bad decisions. We've just beared witness to some really bad decisions because of cheap money. As it relates to MLPs (and what I tried to articulate before) is, if MLPs cannot deliver returns in excess of their capital cost, they're going to be in trouble. Some MLPs have made bad investment decisions, and they have had to face the consequences. As it relates to the three companies just mentioned, Duncan Energy is basically an affiliate of Enterprise Products Partners. Consequently, Duncan has the same sort of financial discipline as Enterprise. Magellan Midstream? I don't mean this in a disparaging way but, when I think of Magellan, I usually think of a company that has been very conservatively managed. But they are also prudent stewards of capital. Lastly, Spectra has demonstrated that they, too, are very prudent when it comes to investing capital.First and foremost, we take our view of management very seriously. If we don't have a strong conviction that the management team is extremely capable, it's hard for us to have a favorable view of that company. Needless to say, we feel pretty good that the management teams of the companies we've discussed understand risk and finance; and, just as importantly, they understand their businesses. TER: Among the energy MLPs, you have outperform ratings on Niska Gas Storage Partners, L.L.C. ([NKA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NKA&selected=NKA)) ), Kinder Morgan Management, L.L.C. ([KMR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KMR&selected=KMR)) ) and Energy Transfer Partners. But you also have an outperform rating on ETP's general partner, Energy Transfer Equity, L.P. ([ETE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ETE&selected=ETE)) ). Tell us about Niska, Kinder Morgan Management and ETE. YS: Energy Transfer Equity benefits disproportionately when Energy Transfer Partners raises the distribution or issues equity to finance their growth. The general partners own something called "incentive distribution rights." The incentive distribution rights reward the GP for hitting distribution targets. Consequently, the GP can grow twice as fast as the underlying MLP. Historically, most GPs have grown faster because of those incentive distribution rights. If one is positive on the underlying MLP, it's not unreasonable to think you may also be positive on the general partner. TER: Are you saying we're about to see substantial growth in ETE's distributions? YS: We think ETE is positioned for a compounded annual distribution growth rate of 8.6% over the next three years. ETE owns the general partner and limited partnership units in both Energy Transfer Partners and Regency Energy Partners, L.P. ([RGNC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RGNC&selected=RGNC)) ). As such, ETE stands to benefit from the growth of these two MLPs. TER: And Kinder Morgan Management?YS: Think about Kinder Morgan as two classes of securities. One is Kinder Morgan Energy Partners ([KMP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KMP&selected=KMP)) ), which pays their distribution in cash. The other is Kinder Morgan Management ([KMR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KMR&selected=KMR)) ), which pays their distribution in stock. That's the major difference between KMP and KMR. The other difference is that Kinder Morgan Management is structured such that investors receive a 1099 instead of a K1. That means you can buy KMR and put it in your IRA account, and institutional investors can buy KMR because it's not generating any unrelated business-taxable income. TER: That's why it exists. YS: It helps with financing, too. It's an attractive alternative for institutional investors that are sensitive to investing in MLPs. In addition, it helps finance Kinder Morgan's growth because, if you buy KMR, it's almost like an automatic dividend reinvestment plan. But for whatever reason, KMR trades at a 10%-13% discount to KMP. We think KMP may be fairly valued and thus we have a neutral rating on it, whereas we think KMR is attractively valued because we see no rational reason for it to trade at such a large discount to KMP. The only real difference between KMR and KMP is that KMR pays their distribution in stock rather than cash. TER: And Niska?YS: Niska just did their IPO in May, and Credit Suisse participated in that offering. Niska quite simply is a play on the need for natural-gas storage both in Canada and the U.S. We like Niska because they have plans to expand storage in Canada and California and a very clean balance sheet. In essence, they have pre-financed that growth via their equity offering. We also think that other storage assets owned by private equity may very well be for sale. Niska is likely to participate in those acquisitions, and that should help them grow above and beyond the organic growth already on their drawing board. Finally, we think the management team there is very astute. They have years of experience developing and operating storage. For folks looking to participate in growing natural-gas production and the need for natural-gas storage, Niska's very capable management makes the company an interesting way to play that. TER: Do you have any thoughts you would like to leave us with? YS: You read that quote from our research that said:I purposely said that because I think readers should differentiate between investing and trading. I view investing in MLPs as a multiyear commitment. The underlying rationale for investing in MLPs is that you're investing in a cash-flow stream that you think is secure, stable and predictable, which may very well grow. If that's the case, one shouldn't be overly concerned about market volatility. Just stay focused on that cash-flow stream and don't obsess over the day-to-day swings in the stock price. Too many investors do that. My message is to invest in strong companies with good cash flow and visible growth.I'm also very cognizant of the fact that MLPs have had a really strong run in 2010. They may be due for a pullback, especially if capital markets freeze up. Conversely, if the stock market takes off, then you could see folks pulling out of MLPs to invest in the next herd mentality scheme.Yves Siegel joined the Credit Suisse Energy Research Team in June 2009 to cover the Master Limited Partnership (([MLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MLP&selected=MLP)) )) and Natural Gas Pipeline sectors. Immediately prior to joining Credit Suisse, Yves was a senior portfolio manager at a New York hedge fund focused on MLPs. Prior to his buy-side experience, Yves had established a leading sell-side MLP franchise, having spent over 10 years at Wachovia Securities after prior sell-side engagements at Smith Barney and Lehman Brothers. Yves has received both a BA and MBA from New York University and is a CFA charter holder. Disclosure: No positionsSee also [Macquarie Group: No EPS Growth This Year but a Great Yield Nonetheless](http://seekingalpha.com/article/224049-macquarie-group-no-eps-growth-this-year-but-a-great-yield-nonetheless?source=nasdaq) on seekingalpha.com Stock Price 4 days before: 4.00513 Stock Price 2 days before: 4.19324 Stock Price 1 day before: 4.19876 Stock Price at release: 4.16939 Risk-Free Rate at release: 0.0016	4.4077
Symbol: GCI Security: Gannett Co., Inc. Related Stocks/Topics: Markets Title: Bearish Gannett (GCI) trade boosts put volume Type: News Publication: Jud Pyle Publication Author: Unknown Date: 2010-08-17 04:58:00 Article: Shares of Gannett Co. Inc. (NYSE: GCI ) gained more than 1% during afternoon trading without any notable news on the newspapers company. One investor appears to have taken a bearish position on the stock and was willing to commit a hefty amount of capital to call for downside.GCI closed up 13 cents to $12.73 on Tuesday. The stock is trading roughly 35% lower than its 52-week high of $19.69 reached in April. GCI did not announce any news on Tuesday, and has not confirmed its next earnings announcement. The market expects the company's next report on or around Oct. 19. On July 16, GCI announced earnings of 61 cents per share and beat estimates by eight cents. The October 12 puts were active during Tuesday's trading thanks to an investor who paid roughly 90 cents per contract to open a 5,000-lot of these near-the-money options. Current open interest in this line is 2,400 contracts. A look at time and sales shows the investor traded these options outright, meaning the investor is betting that GCI shares will be trading lower than $11.10 at October options expiration (Oct. 15). If the stock drops at least 13% during the near term, this position will turn profits and continue to do so as the stock nears zero. If GCI shares are trading higher than the strike price, the investor loses a maximum of the premium paid per contract (the total maximum loss is $450,000).The investor breaks even if GCI shares are trading at $11.10 at expiration. Keep in mind that October is not only the earnings month for GCI but also will be the front-month when these options expire. At least one investor is betting volatility will increase and put downward pressure on the stock during the next couple of months. Stock Price 4 days before: 12.6304 Stock Price 2 days before: 12.5117 Stock Price 1 day before: 12.503 Stock Price at release: 12.6376 Risk-Free Rate at release: 0.0016	13.2479
Symbol: XRX Security: Xerox Holdings Corporation Related Stocks/Topics: Markets Title: Closing out a Xerox (XRX) call spread Type: News Publication: Jud Pyle Publication Author: Unknown Date: 2010-08-19 03:10:00 Article: Xerox (NYSE:XRX) shares are following the market lower today and are actually underperforming the broader indices. While the S&P has dropped 1.8% so far, XRX shares are off close to 2.6%. Being a single-digit stock, naturally XRX is prone to wider swings if buying or selling pressure comes along.In late-morning trading, an investor took the opportunity of today's pullback to close out an existing call calendar spread. At some time in the past (more than a month ago), the investor opened this spread by selling to open the September 10 calls and buying to open the October 11 calls, likely collecting a small credit to do so. This type of spread, built with a shorter-term short call and a longer-term long call, will typically have a slightly negative delta so will gain value if the underlying shares decline. Once the shorter-term call expires, however, the investor is left holding a naked long call, which has unlimited upside potential but can also lose 100% of the premium paid.In this case, the investor has evidently decided to close out the spread entirely. Shortly before 11:00 a.m. CT, the trader bought to close 10,000 of the September 10 puts for nine cents apiece and sold to close 10,000 of the October 11 puts apiece. The investor paid five cents per spread to close the trade.It is hard to determine whether they profited on this trade (that is, whether they collected more than five cents when they initially made the trade). In the intermediate term, XRX is down roughly 20% from its late-April high. In the short-term, the shares have recovered more than 17% from their early July low. It all depends on when the investor placed the trade originally.This spread closure likely coincided with the sale of the appropriate number of shares to make the overall trade delta neutral. This may not mean the investor was interested in a volatility play but instead was assuming the delta risk from the market makers in order to have their trade processed in a more efficient manner. Stock Price 4 days before: 9.02276 Stock Price 2 days before: 9.07608 Stock Price 1 day before: 9.25951 Stock Price at release: 9.2 Risk-Free Rate at release: 0.0016	10.121
Symbol: CAL Security: Caleres, Inc. Related Stocks/Topics: Markets\|AMR\|JBLU\|EPS Title: 4 Attractive Stocks Under $6 Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-19 06:06:00 Article: One of the most fertile areas for [investment research](https://www.nasdaq.com/market-activity) can always be found among stocks that trade for less than the price of a deluxe cheeseburger.When a stock is below $5 or $6, many mutual funds are prevented from owning them. Yet if these stocks can make some headway and move up toward the $10 mark, then the stocks will begin to pop up on fund managers' radars. And when they begin to pour money into these stocks, their buying efforts can quickly move shares up into the low teens. With that in mind, I wanted to take a fresh look at my favorite names that are trading below $6. That's not to say that these stocks are micro-caps or nano-caps -- I tend to like companies that are worth at least $250 million, as they have to be at least that large to ever get noticed by those stock-moving fund managers. Here's a quick synopsis of my current favorite stocks under $6. JetBlue (Nasdaq: JBLU)This low-cost airline is gradually morphing from industry upstart status into maturity. Gone are the days of white-hot growth, but JetBlue is quietly becoming a profit machine. Per share profits are likely to double this year, and as long as the [economy](http://investinganswers.com/term/economy-1517) stays aloft, per-share profits should rise another +50% in 2011 to around $0.60.That profit surge comes even as revenue growth is expected to slow to around +10% next year. I always like to see profits growing faster than sales, as it means that a company is able to squeeze more profits out of each incremental dollar of sales. For JetBlue, the operating [leverage](http://investinganswers.com/term/leverage-61) comes from continually optimizing its route structure to re-direct empty planes to cities where demand is more robust.In the most recent quarter, JetBlue flew +5.5% more passenger miles than a year ago, but the number of customers grew nearly +9%. Whereas planes were 79.5% full a year ago, they're now 82% full. The extra revenue from those additional customers is pure gravy, as the flight attendants, pilots and fuel costs need to be spent whether a plane is half-full or completely full.Even as JetBlue reaches maturity, it still has more paths to growth. The carrier has nearly $1 billion in unrestricted cash and may look to keep expanding. In recent years, the company has focused on expansion into the Caribbean and Latin America. Those routes have historically been very profitable for the larger carriers such as AMR ([AMR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMR&selected=AMR)) ) and Continental ([CAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CAL&selected=CAL)) ) . Further inroads into these areas from JetBlue's New York and Orlando hubs could help the top and [bottom line](http://investinganswers.com/term/bottom-line-789) keep expanding for some time to come. Leapfrog ([LF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LF&selected=LF)) )I continue to think that this maker of educational toys is emerging as a great [turnaround](http://investinganswers.com/term/turnaround-888) play. I wrote about Leapfrog in July and since then, the company modestly exceeded second-quarter forecasts. [Read: [The Best Idea of the Week](http://www.streetauthority.com/node/456363) ]But this is really a seasonal play as the company derives almost all of its profits during the holiday shopping season. It's encouraging that Leapfrog is posting improving results, and shares can move back to the $7 level seen in April if September results are impressive. But the real break-out for this former highflyer wouldn't come until confidence is increased that the holiday shopping season will be a strong one. Innerworkings (Nasdaq: INWK)Speaking of former highflyers, this provider of corporate printing services and marketing supplies has seen its shares fall from $18 back in early 2008 to a recent $5.50. That's because growth sharply decelerated as clients cut back on many marketing campaigns.But Innnerworkings is growing once again. Sales rose +20% in the most recent quarter from a year ago, and [earnings per share ( ](http://investinganswers.com/term/earnings-share-eps-1003) [EPS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPS&selected=EPS) ) is starting to slowly climb quarter after quarter. To help sales rebound, Innerworkings is putting more resources behind a division that handles Business Process Outsourcing ([BPO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BPO&selected=BPO)) ). In a nutshell, BPO allows large enterprises to focus on their core business and devolve non-core functions such as document management, business workflow and other mundane tasks to firms like Innerworkings.Analysts expect sales to rise +15% both this year and next, but it's worth noting that Innerworkings has a history of making highly-accretive acquisitions to bolster growth. If the company can pull off a few small deals, growth could exceed +20% next year. Although I don't see shares returning to those 2008 heights, I still see upside to the $9 to $10 range in the next year as investors once again embrace this company as a nice and steady growth story. China Security & Surveillance ([CSR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CSR&selected=CSR)) )It's fair to wonder what it will take to really get these shares going. China Security is one of the leading suppliers of security gear to companies and governments in China. The company has posted impressive growth, as sales have risen at least +35% in each of the last four years.After stumbling in the March quarter, China Security posted much stronger results in the most recent quarter. When results came out in late July, the stock rose +16% in one day to more than $6. Less than a month later, investors have already forgotten the name and it is slowly drifting back toward the $5 mark.But this is still very much a growth story. China Security has begun to sign an increasing number of government contracts, which typically carry gross margins 500 basis points higher than corporate contracts. The spurt in government business is attributable to a "safe-city" program that seeks to deploy banks of video cameras, traffic management systems and emergency response systems in China's 200 largest cities. The new government contracts have helped push China Security's [backlog](http://investinganswers.com/term/backlog-866) for delivery within the next 12 months up to $213 million from $130 million a year ago and should help meet analysts' sales forecasts in coming quarters.Meanwhile shares trade for about five times this year's projected profits. The low multiple is partially due to the fact that the company has often issued fresh rounds of new stock to raise cash. Management insists that the capital-raising efforts are now completed. If China Security can continue to deliver impressive quarters and refrain from diluting stock any more, then shares may finally start to garner a more robust [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) ratio. Action to Take --> All of these companies are boosting sales and profits, but their shares are far closer to their all-time lows than their all-time highs. A stumbling global economy might keep a lid on these shares for a bit longer, but when the economy rebounds and growth stocks are back in vogue, they could zoom ahead quickly. You may also want to listen to each of the companies' upcoming conference calls to be assured that management continues to execute on plan. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/4-attractive-stocks-under-6-456477) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 22.8128 Stock Price 2 days before: 23.0384 Stock Price 1 day before: 22.618 Stock Price at release: 22.5605 Risk-Free Rate at release: 0.0016	22.923
Symbol: JBLU Security: JetBlue Airways Corporation Related Stocks/Topics: Markets\|CAL\|AMR\|EPS Title: 4 Attractive Stocks Under $6 Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-19 06:06:00 Article: One of the most fertile areas for [investment research](https://www.nasdaq.com/market-activity) can always be found among stocks that trade for less than the price of a deluxe cheeseburger.When a stock is below $5 or $6, many mutual funds are prevented from owning them. Yet if these stocks can make some headway and move up toward the $10 mark, then the stocks will begin to pop up on fund managers' radars. And when they begin to pour money into these stocks, their buying efforts can quickly move shares up into the low teens. With that in mind, I wanted to take a fresh look at my favorite names that are trading below $6. That's not to say that these stocks are micro-caps or nano-caps -- I tend to like companies that are worth at least $250 million, as they have to be at least that large to ever get noticed by those stock-moving fund managers. Here's a quick synopsis of my current favorite stocks under $6. JetBlue (Nasdaq: JBLU)This low-cost airline is gradually morphing from industry upstart status into maturity. Gone are the days of white-hot growth, but JetBlue is quietly becoming a profit machine. Per share profits are likely to double this year, and as long as the [economy](http://investinganswers.com/term/economy-1517) stays aloft, per-share profits should rise another +50% in 2011 to around $0.60.That profit surge comes even as revenue growth is expected to slow to around +10% next year. I always like to see profits growing faster than sales, as it means that a company is able to squeeze more profits out of each incremental dollar of sales. For JetBlue, the operating [leverage](http://investinganswers.com/term/leverage-61) comes from continually optimizing its route structure to re-direct empty planes to cities where demand is more robust.In the most recent quarter, JetBlue flew +5.5% more passenger miles than a year ago, but the number of customers grew nearly +9%. Whereas planes were 79.5% full a year ago, they're now 82% full. The extra revenue from those additional customers is pure gravy, as the flight attendants, pilots and fuel costs need to be spent whether a plane is half-full or completely full.Even as JetBlue reaches maturity, it still has more paths to growth. The carrier has nearly $1 billion in unrestricted cash and may look to keep expanding. In recent years, the company has focused on expansion into the Caribbean and Latin America. Those routes have historically been very profitable for the larger carriers such as AMR ([AMR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMR&selected=AMR)) ) and Continental ([CAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CAL&selected=CAL)) ) . Further inroads into these areas from JetBlue's New York and Orlando hubs could help the top and [bottom line](http://investinganswers.com/term/bottom-line-789) keep expanding for some time to come. Leapfrog ([LF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LF&selected=LF)) )I continue to think that this maker of educational toys is emerging as a great [turnaround](http://investinganswers.com/term/turnaround-888) play. I wrote about Leapfrog in July and since then, the company modestly exceeded second-quarter forecasts. [Read: [The Best Idea of the Week](http://www.streetauthority.com/node/456363) ]But this is really a seasonal play as the company derives almost all of its profits during the holiday shopping season. It's encouraging that Leapfrog is posting improving results, and shares can move back to the $7 level seen in April if September results are impressive. But the real break-out for this former highflyer wouldn't come until confidence is increased that the holiday shopping season will be a strong one. Innerworkings (Nasdaq: INWK)Speaking of former highflyers, this provider of corporate printing services and marketing supplies has seen its shares fall from $18 back in early 2008 to a recent $5.50. That's because growth sharply decelerated as clients cut back on many marketing campaigns.But Innnerworkings is growing once again. Sales rose +20% in the most recent quarter from a year ago, and [earnings per share ( ](http://investinganswers.com/term/earnings-share-eps-1003) [EPS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPS&selected=EPS) ) is starting to slowly climb quarter after quarter. To help sales rebound, Innerworkings is putting more resources behind a division that handles Business Process Outsourcing ([BPO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BPO&selected=BPO)) ). In a nutshell, BPO allows large enterprises to focus on their core business and devolve non-core functions such as document management, business workflow and other mundane tasks to firms like Innerworkings.Analysts expect sales to rise +15% both this year and next, but it's worth noting that Innerworkings has a history of making highly-accretive acquisitions to bolster growth. If the company can pull off a few small deals, growth could exceed +20% next year. Although I don't see shares returning to those 2008 heights, I still see upside to the $9 to $10 range in the next year as investors once again embrace this company as a nice and steady growth story. China Security & Surveillance ([CSR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CSR&selected=CSR)) )It's fair to wonder what it will take to really get these shares going. China Security is one of the leading suppliers of security gear to companies and governments in China. The company has posted impressive growth, as sales have risen at least +35% in each of the last four years.After stumbling in the March quarter, China Security posted much stronger results in the most recent quarter. When results came out in late July, the stock rose +16% in one day to more than $6. Less than a month later, investors have already forgotten the name and it is slowly drifting back toward the $5 mark.But this is still very much a growth story. China Security has begun to sign an increasing number of government contracts, which typically carry gross margins 500 basis points higher than corporate contracts. The spurt in government business is attributable to a "safe-city" program that seeks to deploy banks of video cameras, traffic management systems and emergency response systems in China's 200 largest cities. The new government contracts have helped push China Security's [backlog](http://investinganswers.com/term/backlog-866) for delivery within the next 12 months up to $213 million from $130 million a year ago and should help meet analysts' sales forecasts in coming quarters.Meanwhile shares trade for about five times this year's projected profits. The low multiple is partially due to the fact that the company has often issued fresh rounds of new stock to raise cash. Management insists that the capital-raising efforts are now completed. If China Security can continue to deliver impressive quarters and refrain from diluting stock any more, then shares may finally start to garner a more robust [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) ratio. Action to Take --> All of these companies are boosting sales and profits, but their shares are far closer to their all-time lows than their all-time highs. A stumbling global economy might keep a lid on these shares for a bit longer, but when the economy rebounds and growth stocks are back in vogue, they could zoom ahead quickly. You may also want to listen to each of the companies' upcoming conference calls to be assured that management continues to execute on plan. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/4-attractive-stocks-under-6-456477) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 5.98178 Stock Price 2 days before: 6.01786 Stock Price 1 day before: 6.02051 Stock Price at release: 5.98251 Risk-Free Rate at release: 0.0016	5.75719
Symbol: NTCT Security: NetScout Systems, Inc. Related Stocks/Topics: DELL\|Markets\|GEN\|INTC\|NTAP\|HPQ Title: Why Today's Intel Deal Makes Tech Even More Appealing Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-19 11:09:00 Article: Throughout the summer, a clear theme has emerged. High-tech companies have reported generally solid results, and yet shares in the sector keep drifting down toward 52-week lows. Despite their considerable cash balances, investors have grown increasingly concerned that sector growth will stall out. That's why Intel's (Nasdaq: INTC) just-announced decision to buy security software vendor McAfee ([MFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MFE&selected=MFE)) ) is so important. It's a clear sign that these tech titans will use their balance sheets to help alleviate those growth concerns. Short -term implications The fact that Intel is paying a +60% premium to Wednesday's close tells you that private market valuations are often far higher than the value these companies are getting as public entities. It's also noteworthy that Intel's offer of $48 a share is just above McAfee's 52-week trading range. Generally speaking, [buyout](http://investinganswers.com/term/buyout-949) offers must exceed that threshold to avoid accusations that a company is being sold on the cheap while it is out of favor. Then again, McAfee's shares haven't seen $48 since the dot-com era of 1999. McAfee's board would have been hard-pressed to reject this offer, though the lofty purchase price likely means that other suitors are unlikely to emerge.The move is a curious one for Intel as it represents a shift away from hardware and into software. And Intel is probably not done: McAfee is probably seen as one of several pieces that can be brought together to provide a broad software platform. If Intel makes another move, it could be in the areas of data storage software or "cloud computing," which involves the use of many networked computers to boost storage and increase processing power. Names to watch include VMWare ([VMW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VMW&selected=VMW)) ) , NetApp (Nasdaq: NTAP) and Citrix Software (Nasdaq: CTRX) .Notably, shares of McAfee rival Symantec (Nasdaq: SYMC) are up more than +10% on this news. Symantec focuses on both network security and data storage. The company's stock has been out of favor for more than five years, as I noted recently. [Read: [3 Beaten-down Tech Stocks Set for a Rebound](http://www.streetauthority.com/node/456451) ]If Symantec is indeed "in play," then firms like Hewlett-Packard ([HPQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HPQ&selected=HPQ)) ) and Dell (Nasdaq: DELL) may be interested. Ironically, both of those firms are expected to weigh in with [earnings](http://investinganswers.com/term/earnings-1514) after the market closes today, and you can expect this topic to come up in the companies' conference calls. Long-term implications As noted above, Intel's deal could spark fresh interest in tech stocks. In many respects, the industry is ripe for an M&A boom, which is always good for valuations. Companies tend to make acquisitions when organic growth is weak and shares are languishing. Many executive compensation packages are tied to rising stock prices, and historically speaking, buying new revenue streams and then paring costs have been a sure-fire way to boost the bottom-line -- and the stock price. Action to Take --> Purchasing a stock simply because it is a buyout candidate is always a bad idea. Most rumored deals never actually take place, and those rumors are offered by traders simply looking to pump up a stock before dumping it.Instead, you should buy a stock primarily based on attractive valuations or organic growth prospects. A potential acquisition is simply another reason to find shares appealing. That said, small to mid-sized tech companies that could offer new market opportunities for bigger tech players include Netscout Systems (Nasdaq: NTCT) , Integrated Silicon Solutions (Nasdaq: ISSI) , Websense (Nasdaq: WBSN) and Blue Coat Systems (Nasdaq: BCSI) .[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article. [StreetAuthority](http://www.streetauthority.com/news/why-todays-intel-deal-makes-tech-even-more-appealing-456474) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 15.1854 Stock Price 2 days before: 15.9322 Stock Price 1 day before: 15.8366 Stock Price at release: 15.6582 Risk-Free Rate at release: 0.0016	18.449
Symbol: CSIQ Security: Canadian Solar Inc. Related Stocks/Topics: SOL\|Markets\|EPS\|JKS\|SLF Title: Believe it or Not... There are Still Cheap Stocks in China's Hottest Sector Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-19 12:55:00 Article: Throughout the last winter and spring, solar stocks fell deeper and deeper out of favor. Investors fretted about a sharp slowdown in government subsidies right at a time when many companies were expanding their factories to boost output. Prices for solar panels and other components were in freefall as inventories piled up. But industry executives in China had a hunch that they could find ample demand for their rising output. They were right. Demand is better than many had expected, and this sector is now in rally mode.In the last three months, Jinko Solar ([JKS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JKS&selected=JKS)) ), Solarfun ([SLF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLF&selected=SLF)) ), ReneSola ([SOL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SOL&selected=SOL)) ) and Trina Solar ([TSL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSL&selected=TSL)) ) have all risen by at least +40%. If you missed those moves, ample opportunities remain for some of the other industry players. Jinko sets the tone Little-known Jinko Solar has single-handedly established a more bullish tone for the entire sector. The May, 2010 [IPO](http://investinganswers.com/term/initial-public-offering-ipo-1076) was flat-lining around $10 two months ago, but has since surged nearly +150% thanks to recent blowout [earnings](http://investinganswers.com/term/earnings-1514) . The company turns re-processed and virgin silicon into solar panels and can handle all phases of the manufacturing process, from wafers to modules to panels. That [vertical integration](http://investinganswers.com/term/vertical-integration-871) has helped the company to become a low-cost manufacturer, which is essential in this price-competitive business.Earlier this week, Jinko Solar reported its first-ever results as a [publicly-traded company](http://investinganswers.com/term/public-company-1341) , and they were nothing short of spectacular. [Earnings per share ( ](http://investinganswers.com/term/earnings-share-eps-1003) [EPS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPS&selected=EPS) ) of $1.39 were more than double the consensus forecast as sales were nicely ahead of plan and gross margins were firmer than most had expected. Analysts now think the company can earn close to $3.50 a share next year, nearly $1 more than they thought just a week ago. Shares, which recently traded hands for around $25, could approach $30 in coming months, but most of the sharp gains have been made in this stock as it is no longer a well-kept secret. Where to turn?Some Chinese solar stocks still trade at very low valuations. JA Solar (Nasdaq: JASO) , for example, trades for less than seven times projected 2010 and 2011 profits. This former highflyer traded above $25 back in 2008, but can now be had for less than $6. Sales have been surging, from $34 million in the first quarter of 2009 to $351 million in the second quarter of 2010. But profit growth has not been as robust and actually fell back on a sequential basis in the most recent quarter, thanks to profit margin pressures.However, recent additions to manufacturing capacity have led analysts to start boosting profit forecasts, despite expectations that pricing and profit margins will stay under pressure. It's unlikely that shares will re-visit those 2008 heights any-time soon, as investors are no longer willing to slap very high multiples on these stocks as the industry matures. Yet shares could move up to $8 or $9 if the company can meet or exceed recently-boosted forecasts. That translates into a +30% to +50% gain from current levels. A contrarian play After a series of missteps, Canadian Solar (Nasdaq: CSIQ) is deeply out of favor right now. Shares have fallen more than -40% in the past six months after a string of weak profit reports and an announcement that an SEC investigation would likely lead to a re-statement of 2010 fourth quarter results. But later today, investor concerns might start to see a resolution as the company will hold a conference call after the market closes to update recent results. Canadian Solar was once a highflyer, too: sales at this solar panel maker had zoomed from $20 million in 2005 to $700 million by 2008. And although sales flattened last year, recent capacity additions should push sales north of $1 billion this year. Equally important, the bottom-line should rebound in 2011, with [EPS](http://investinganswers.com/term/earnings-share-eps-1003) bumping back up to $1.50. Shares trade for less than eight times that forecast. (Profits are being constrained this year while industry demand catches up with supply -- a situation expected to reverse in coming quarters.) Today's conference call will be crucial to get shares moving up again. Management has lost a great deal of credibility and they will have to be forthright about the issues regarding the SEC investigation. They will have to make a clear case of why profits will rebound so sharply in 2011 -- as is currently expected. If they can clear the decks, this solar laggard could be the next rebound candidate. Action to Take --> As a note of caution, it appears that investors will need to see considerable upside to further boost shares of any sector stock that had already had a good run. For example, shares of Yingli Green Energy ([YGE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=YGE&selected=YGE)) ) , which had risen more than +20% in the past three months, barely budged in Thursday trading, despite the announcement of estimate-topping results earlier in the day. Instead, investors may want to focus on the still-weak names like JA Solar and Canadian Solar, both of which carry very low expectations.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More... Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/news/believe-it-or-not-there-are-still-cheap-stocks-chinas-hottest-sector-456475) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 11.5264 Stock Price 2 days before: 11.4907 Stock Price 1 day before: 11.8531 Stock Price at release: 12.4791 Risk-Free Rate at release: 0.0016	13.0537
Symbol: JKS Security: JinkoSolar Holding Co., Ltd. Related Stocks/Topics: SOL\|Markets\|EPS\|CSIQ\|SLF Title: Believe it or Not... There are Still Cheap Stocks in China's Hottest Sector Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-19 12:55:00 Article: Throughout the last winter and spring, solar stocks fell deeper and deeper out of favor. Investors fretted about a sharp slowdown in government subsidies right at a time when many companies were expanding their factories to boost output. Prices for solar panels and other components were in freefall as inventories piled up. But industry executives in China had a hunch that they could find ample demand for their rising output. They were right. Demand is better than many had expected, and this sector is now in rally mode.In the last three months, Jinko Solar ([JKS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JKS&selected=JKS)) ), Solarfun ([SLF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLF&selected=SLF)) ), ReneSola ([SOL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SOL&selected=SOL)) ) and Trina Solar ([TSL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSL&selected=TSL)) ) have all risen by at least +40%. If you missed those moves, ample opportunities remain for some of the other industry players. Jinko sets the tone Little-known Jinko Solar has single-handedly established a more bullish tone for the entire sector. The May, 2010 [IPO](http://investinganswers.com/term/initial-public-offering-ipo-1076) was flat-lining around $10 two months ago, but has since surged nearly +150% thanks to recent blowout [earnings](http://investinganswers.com/term/earnings-1514) . The company turns re-processed and virgin silicon into solar panels and can handle all phases of the manufacturing process, from wafers to modules to panels. That [vertical integration](http://investinganswers.com/term/vertical-integration-871) has helped the company to become a low-cost manufacturer, which is essential in this price-competitive business.Earlier this week, Jinko Solar reported its first-ever results as a [publicly-traded company](http://investinganswers.com/term/public-company-1341) , and they were nothing short of spectacular. [Earnings per share ( ](http://investinganswers.com/term/earnings-share-eps-1003) [EPS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPS&selected=EPS) ) of $1.39 were more than double the consensus forecast as sales were nicely ahead of plan and gross margins were firmer than most had expected. Analysts now think the company can earn close to $3.50 a share next year, nearly $1 more than they thought just a week ago. Shares, which recently traded hands for around $25, could approach $30 in coming months, but most of the sharp gains have been made in this stock as it is no longer a well-kept secret. Where to turn?Some Chinese solar stocks still trade at very low valuations. JA Solar (Nasdaq: JASO) , for example, trades for less than seven times projected 2010 and 2011 profits. This former highflyer traded above $25 back in 2008, but can now be had for less than $6. Sales have been surging, from $34 million in the first quarter of 2009 to $351 million in the second quarter of 2010. But profit growth has not been as robust and actually fell back on a sequential basis in the most recent quarter, thanks to profit margin pressures.However, recent additions to manufacturing capacity have led analysts to start boosting profit forecasts, despite expectations that pricing and profit margins will stay under pressure. It's unlikely that shares will re-visit those 2008 heights any-time soon, as investors are no longer willing to slap very high multiples on these stocks as the industry matures. Yet shares could move up to $8 or $9 if the company can meet or exceed recently-boosted forecasts. That translates into a +30% to +50% gain from current levels. A contrarian play After a series of missteps, Canadian Solar (Nasdaq: CSIQ) is deeply out of favor right now. Shares have fallen more than -40% in the past six months after a string of weak profit reports and an announcement that an SEC investigation would likely lead to a re-statement of 2010 fourth quarter results. But later today, investor concerns might start to see a resolution as the company will hold a conference call after the market closes to update recent results. Canadian Solar was once a highflyer, too: sales at this solar panel maker had zoomed from $20 million in 2005 to $700 million by 2008. And although sales flattened last year, recent capacity additions should push sales north of $1 billion this year. Equally important, the bottom-line should rebound in 2011, with [EPS](http://investinganswers.com/term/earnings-share-eps-1003) bumping back up to $1.50. Shares trade for less than eight times that forecast. (Profits are being constrained this year while industry demand catches up with supply -- a situation expected to reverse in coming quarters.) Today's conference call will be crucial to get shares moving up again. Management has lost a great deal of credibility and they will have to be forthright about the issues regarding the SEC investigation. They will have to make a clear case of why profits will rebound so sharply in 2011 -- as is currently expected. If they can clear the decks, this solar laggard could be the next rebound candidate. Action to Take --> As a note of caution, it appears that investors will need to see considerable upside to further boost shares of any sector stock that had already had a good run. For example, shares of Yingli Green Energy ([YGE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=YGE&selected=YGE)) ) , which had risen more than +20% in the past three months, barely budged in Thursday trading, despite the announcement of estimate-topping results earlier in the day. Instead, investors may want to focus on the still-weak names like JA Solar and Canadian Solar, both of which carry very low expectations.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More... Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/news/believe-it-or-not-there-are-still-cheap-stocks-chinas-hottest-sector-456475) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 19.8806 Stock Price 2 days before: 21.2601 Stock Price 1 day before: 24.7258 Stock Price at release: 23.7087 Risk-Free Rate at release: 0.0016	28.9173
Symbol: WGO Security: Winnebago Industries, Inc. Related Stocks/Topics: BBY\|Markets\|WFC\|CVS Title: 4 Stocks Poised for a Post-Summer Rally Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-20 05:40:00 Article: As the market grinds down toward the end of the summer, we're seeing the typical seasonal malaise when a number of good companies quietly drift down to 52-week lows. And the selling may not be over. The S&P 500 has historically been the weakest in September, dropping an average of -1.3%. The good news: stocks really build a head of steam after that. The S&P 500 typically rises +0.7% in October, followed by average monthly gains of +1.5%, +1.9% and +2.1% in each of the next three months.Savvy investors always keep some cash on hand for these summer doldrums, as it can be a fertile time to start researching unloved stocks that should find new [appreciation](http://investinganswers.com/term/appreciation-1107) as summer turns to fall. Here are four names hitting new 52-week lows on Friday that should be quite appealing for long-term investors. MedcoHealth Solutions ([MHS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MHS&selected=MHS)) )Earlier this summer, we saw a considerable dust-up between CVS ([CVS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CVS&selected=CVS)) ) and Walgreen ([WAG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WAG&selected=WAG)) ) as those two firms fought over a pharmacy benefits manager ([PBM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PBM&selected=PBM)) ) contract. As we looked into the PBM sector in June, we saw still-considerable growth prospects, especially for rival MedcoHealth. [Read: [The Real Winner in the Battle between Walgreen and CVS](http://www.streetauthority.com/news/real-winner-battle-between-walgreen-and-cvs-456191) ]Since then, shares have fallen out of favor. In late July, the company issued second-quarter results that were in-line with expectations, but it became apparent that the company saw only a +3% year-over-year profit boost for each prescription filled, below the +5% growth rate analysts had expected. The company also admitted that a +5% to +10% growth rate for this metric would no longer be achieved.Notably, analysts' earnings estimates have barely budged, yet the shares are now some -20% lower. It's important to know that PBM firms always show erratic quarterly trends due to the lag time between changing drug prices and the PBM's ability to pass long those changes. Yet this still remains as a solid growth play: profits are expected to grow roughly +20% this year, and another +17% in 2011. Shares trade for less than 12 times next year's forecast. Winnebago ([WGO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WGO&selected=WGO)) )This maker of recreational vehicles (RVs) saw its shares surge this spring as word spread that baby boomers were returning to RV showrooms in droves. Fiscal third quarter results released in June reflected an [earnings](http://investinganswers.com/term/earnings-1514) blowout. Since then, shares have lost roughly half their value on ever-shrinking trading volume. Part of the share price malaise is due to the fact that Winnebago has already released results for its seasonally most important quarter. The company's fiscal fourth quarter results, which should be released in early September, are likely to be comparatively uninspiring.Winnebago lost more than $1 a share last year, but thanks to massive cost cuts and a rebound in demand, the company should earn roughly $0.30 in the [fiscal year](http://investinganswers.com/term/fiscal-year-1316) ending this month. That's hardly a profit level to inspire shares, but it's worth remembering that Winnebago earned $4 to $5 a share back in the middle of the last decade. The company is likely still a few years away from that kind of earnings power again, but shares below $9 are cheap in the context of that long-term earnings strength. Wells Fargo ([WFC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WFC&selected=WFC)) )This is a classic case of the baby being tossed out with the bath water. As we saw in the economic crisis of 2008, Wells Fargo has proven to be an extremely well-run bank, avoiding imprudent risks while aggressively acquiring weaker financial franchises on the cheap. Of course, the [economy](http://investinganswers.com/term/economy-1517) is pretty dicey right now, and bank stocks in general are being shunned, so there's little interest in loading up on solid players like Wells Fargo right now.Yet Wells Fargo has all of the traits I look for when seeking long-term holdings: A very solid brand, a track record of playing defense in tough times, rising profit estimates and a robust [balance sheet](http://investinganswers.com/term/balance-sheet-1083) .To be sure, the ongoing [mortgage](http://investinganswers.com/term/mortgage-1608) crisis means that Wells Fargo may still report some weak results in its consumer lending division, so some investors are waiting to see how the ongoing housing slump plays out during the October [earnings season](http://investinganswers.com/term/earnings-season-344) . There's no rush to buy this name immediately, but shares should be a solid rebound candidate when the economy starts to show initial signs of life. Best Buy ([BBY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BBY&selected=BBY)) )I recently wrote about this consumer electronics retailer, so I'll refrain from further commentary here except to note that shares hit a fresh 52-week low on Friday, owing in large part to the fact that few near-term catalysts exist. [Read: [George Soros' Favorite Retail Stock](http://www.streetauthority.com/news/george-soros-favorite-retail-stock-456463) ]The company's fiscal second quarter results (due for release in mid-September) are likely to be so-so. The same may be said of the subsequent quarter, which ends in November. But after that, we get the all-important holiday season, which could still be quite solid, thanks to a raft of hot new products and an ever-shrinking set of retail competitors. Action to Take --> All four of these stocks are great long-term holdings, as they have strong brands and solid [market share](http://investinganswers.com/term/market-share-778) in their respective industries.In order of timeliness , Medco looks to be the first one to find fresh appeal, followed by Best Buy (thanks to the holiday selling season), Wells Fargo (as expectations for an improving economy in late 2011 and into 2012 could perk up shares this winter), followed by Winnebago, which may stay out of favor until the RV maker approaches its next season of strength. Yet Winnebago likely has the greatest long-term upside of these names, and could eventually double or even triple from current levels.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article. [StreetAuthority](http://www.streetauthority.com/news/4-stocks-poised-post-summer-rally-456481) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 9.08516 Stock Price 2 days before: 9.20637 Stock Price 1 day before: 9.07968 Stock Price at release: 8.53507 Risk-Free Rate at release: 0.0015	9.4404
Symbol: AMSC Security: American Superconductor Corporation Related Stocks/Topics: CMG\|Markets\|FSLR\|TCOM\|STRI\|MELI Title: Nine Stocks to Hold Forever Type: News Publication: Cabot Wealth Network Publication Author: Unknown Date: 2010-08-23 02:25:00 Article: Several of my friends turned 60 this year (I'm not there yet) and to celebrate, 10 of us (five couples) will be sharing a villa in the Italian countryside for a week in September. In fact, my mind is already in Italy, to some extent, as I've been reading guidebooks, pulling out old magazine clippings, surfing the Internet, and-perhaps most fun of all-using Google Maps to get a bird's eye view of some small Italian towns we plan to visit.One thing Google Maps reveals about these small towns is this: Because they were developed long before the birth of the automobile, parking spaces are scarcer than in most American towns. Commonly, there are small municipal lots scattered throughout the town-particularly toward the edges-and frequently these cost money. The result is towns that are particularly pedestrian-friendly.Shedding some welcome light on the economics of parking in the U.S. was an article in the New York Times last week titled "Free Parking Comes at a Price" that referenced a book published in 2005.That book, by Donald C. Shoup, professor of urban planning at the University of California, Los Angeles, is titled, "The High Cost of Free Parking." It's 752 pages long.[add image of book]I'm not planning to read it. Planning my Italian trip is more fun than reading 752 pages about parking economics (and politics). But I have read summaries of it, and I think the main idea is worth passing on.In short, just as there's no such thing as a free lunch, there's no such thing as free parking.The costs of free municipal parking lots are paid by taxpayers-even those who don't drive. The costs of free commercial parking are borne by businesses, and thus by their customers.And the real unseen costs come from the unintended consequences that are suffered by all of us. In short, legally mandated parking artificially increases supply and thus reduces the market price of parking spaces, often to zero.In big densely populated cities like New York and Chicago, people are accustomed to paying high prices for parking. These high market prices not only spur the development of efficient public transportation networks, they also enable higher-value use of downtown space.But where low-value public parking is subsidized by governments, Professor Shoup argues that we forgo the true value of space that could be better utilized. He calculates that the value of the free-parking subsidy to cars in the U.S. was at least $127 billion in 2002.If we eliminated that subsidy, basically by repealing all the laws that mandate the provision of parking spaces by businesses, and by moving to make drivers pay the real costs of their parking spaces, the prices of some spaces would rise dramatically. People would drive less. There would be less traffic congestion. There would be more room for people and business … and American towns would look just a little bit more like those small pedestrian-friendly Italian towns I plan to visit. The basic concept to remember is that government subsidies distort market-pricing activities, and thus artificially increase demand.We saw it in the housing market, where the perception of government mortgage guarantees increased demand for housing while lenders and borrowers joined in the party … with disastrous effects.We've seen it in the higher education market where government loans have artificially increased the demand for college degrees and in the process pushed up tuition prices at both public and private schools. (Just last week, the stocks of for-profit schools tumbled-look at COCO, DV, ESI and STRA, for example-when the Department of Education revealed it might reduce lending to students at for-profit schools with low repayment rates, providing a perfect illustration of the link between government subsidies and perceived values.) And we've seen it in the farming industry, where government subsidies for corn result in cheap high-fructose corn syrup, which contributes to the epidemic of obesity in our country.Note: The reason government subsidies result in lower prices for corn and higher prices for houses and education is due to the fact that in the case of corn, the subsidy goes straight to the farmer. (If you want to see a further analysis of the effects of U.S. agricultural subsidies in a future Cabot Wealth Advisory, let me know.) Getting back to Professor Shoup, his main suggestion (remember, this was five years ago), is that we implement market-base pricing for parking whenever applicable. Ideally, these are smart parking meters that communicate with each other regarding current demand and set rates accordingly.Here in Salem, I sometimes drive downtown after work, and I'm happy to get "free" parking in metered spots after 5:00. But I know the city would get more revenue-and all interests would be better satisfied-if parking rates were based on real-time demand.---As to the market, which is very good about following the rules of supply and demand, these are very interesting times.Demand is down, in part because of lousy economic news (which I'm not going to go into today).Bond yields are at record lows … a clear sign of the market's "flight to safety." And it's extremely difficult to find an optimistic economist these days. (You know in your heart that they're often wrong, but you listen to them anyway.) Ben Bernanke commented a month ago that "the economic outlook remains unusually uncertain, "and the President of Cisco, John Chambers, repeated that outlook after his company's earnings report last week, saying, "We think the words "unusual uncertainty" are an accurate description of what's occurring."The market, of course, hates uncertainty, but I've learned to embrace it, which is why I've been growing increasingly optimistic in recent weeks, particularly because the market hasn't fallen apart.So today I want to give you part two of my article on "Stocks to Hold Forever."Part one, back on July 28 LINK, told you about the amazing Mr. Phelps, whose investment strategy was to buy stocks with exceptional growth potential when they were young … and never sell them. Qualities he looked for included:•Revolutionary technologies or services•New and cheaper sources of energy•Small size, so it can grow fast•Undiscovered by the masses•Barriers to entry•Superior profit margins.And he didn't minimize the value of buying when stocks are temporarily depressed … as they were in 1932 and, more recently, in 2002 and 2008.Three years ago, I got together with the other Cabot editors and came up with a list of 10 stocks. On July 7, 2007, I published this list. And three weeks ago I reviewed the results … which were very good.In those three years, the S&P 500 lost 24%.But our 10 stocks had an average positive return of 39.5%.(Details are in the July 28 issue of Cabot Wealth Advisory. LINK ) So I got together with Cabot's growth editors again, and we came up with a new list of nine stocks-we couldn't agree on ten. Two are repeats from the 2007 list-and here they are. 1. American Superconductor ([AMSC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMSC&selected=AMSC)) ) is a leading provider of the electronics that power wind power systems, where it presents substantial barriers to entry and growth potential is enormous. The company has grown revenues every year of the past decade, its profit margins top 10% and it's still relatively undiscovered.2. Chipotle Mexican Grill ([CMG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CMG&selected=CMG)) ) has the potential to be the McDonald's of the next half-century … in part because this high-quality burrito shop was spun off from McDonald' in 2006 … so management has been taught well. Revenues are growing steadily and profit margins are consistently in the high single digits, which is great in the restaurant industry. (It's my son's favorite restaurant, but I'm not the analyst who submitted it.)3. Ctrip ([CTRP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CTRP&selected=CTRP)) ) is the leading online travel agent in China, where a growing middle class and increased business activity mean the travel industry is booming. Last year, the recession slowed revenue growth at Ctrip to 35%; in the latest quarter, it was back up to 47% … and profit margins were a very healthy 42.2%. Ctrip was on the list three years ago.4. First Solar ([FSLR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FSLR&selected=FSLR)) ) is a leading manufacturer of solar power modules, boasting great growth of both revenues and earnings … and profit margins of 27% in the latest quarter, very impressive for a manufacturer. The stock was a big winner for Cabot Market Letter in 2006 (we sold in March 2007) and like most stocks in the industry it's spent the time since then cooling off. I think it's cool enough now. First Solar was on the list three years ago, too.5. Green Mountain Coffee Roasters ([GMCR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GMCR&selected=GMCR)) ) makes the revolutionary single-serving Keurig coffee brewers, and gets a royalty for every cup of coffee that's brewed in them, which is a great source of recurring income. Barriers to entry are high. The market is global. Revenues have grown every year of the past decade. And profit margins are healthy at over 8%. 6. Home Inns & Hotels Management ([HMIN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HMIN&selected=HMIN)) ) is the largest hotel chain in China. Growth is as easy as opening new hotels … the cookie-cutter growth model. The company has no debt, unlike most hotel chains, and profit margins were 19.6% in the latest quarter.7. MercadoLibre ([MELI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MELI&selected=MELI)) ), located in Argentina, is the eBay of South and Central America-in fact, eBay owns 18% of the company. Most sellers are businesses. Growth is virtually assured. The barrier to entry is very high. And profit margins are over 20%. MercadoLibre is the smallest company of these 10, as measured by revenues.8. STR Holdings ([STRI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=STRI&selected=STRI)) ) makes the precisely engineered plastic film encapsulants used by most solar module manufacturers to protect their components from water, wind, radiation and shock. Profit margins are 19%. The stock came public just last year, so it's not well known-in fact, it's the most lightly traded of these 10 stocks. But as the solar power industry grows, STRI should grow with it. Coming off a slow 2009, revenues mushroomed 62% in the latest quarter.9. VMware ([VMW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VMW&selected=VMW)) ) makes software that enables virtualization and cloud computing. It's grown revenues every year of the past decade, and could well evolve into the Microsoft of the next decade. In the latest quarter, revenues grew 48% while profit margins hit 21%.So what do you do with these nine stocks?Think for yourself.This is in part an intellectual exercise. In the ideal scenario, you buy them at an opportune time (even better, you already have profits in them), your profits compound over the years and you pass these stocks on to the next generation, thus escaping the bite of the taxman. Yours in pursuit of wisdom and wealth,Timothy LuttsPublisherCabot Wealth Advisory Stock Price 4 days before: 28.3114 Stock Price 2 days before: 27.2537 Stock Price 1 day before: 27.6091 Stock Price at release: 27.641 Risk-Free Rate at release: 0.0015	30.803
Symbol: PAR Security: PAR Technology Corporation Related Stocks/Topics: WMT\|Markets\|DE\|CMI\|BLK\|HPQ Title: Market Wrap-Up for Aug.23 (POT, CMI, DE, WMT, HPQ, more) Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-08-23 04:10:00 Article: Those are the words of Dean Baker, co-director of the Center for Economic and Policy Research. He was cited as the source for a report out today that estimates it will take 20 years to recoup the $6 trillion of housing wealth that has been lost since 2005.During the 1970s real home prices increased 1.1 percent a year after inflation, which more or less proves the old adage of considering real estate more as shelter for your family, instead of it being a nest egg for your retirement. Multi-family homes are a different story and can be better options from an income standpoint, but that comes with the unenviable job of being a landlord. This all goes back to our long-help belief that dividend-paying stocks should play a significant role for one's retirement savings. That said, we are cautiously watching the current market situation closely. We will certainly alert subscribers to any changes we make to our recommendations.As for today's action, we saw Potash Corp ([POT](http://www.dividend.com/dividend-stocks/basic-materials/nonmetallic-mineral-mining/pot-potash-corp/)) ) climb a bit more on news the company is trying to pull in higher takeover offers. Hewlett Packard ([HPQ](http://www.dividend.com/dividend-stocks/technology/diversified-computer-systems/hpq-hewlett-packard/)) ) moved down on news it was entering into a bidding war with Dell for 3Par ( PAR ). Weakness developed after the early opening pop and we began to steadily drift once the last hour came. Some of the names lagging on the day included Cummins ([CMI](http://www.dividend.com/dividend-stocks/industrial-goods/diversified-machinery/cmi-cummins-inc/)) ) , Deere ([DE](http://www.dividend.com/dividend-stocks/industrial-goods/farm-and-construction-machinery/de-deere-and-co/)) ) , and Blackrock ([BLK](http://www.dividend.com/dividend-stocks/financial/investment-brokerage-regional/blk-blackrock/)) ) . Bucking today's downtrend was Wal-Mart Stores ([WMT](http://www.dividend.com/dividend-stocks/services/discount-variety-stores/wmt-wal-mart-stores/)) ) , which finished higher.Be sure to check out our [Best Dividend Stocks List](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) for our current recommendations. See you tomorrow!Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 17.9581 Stock Price 2 days before: 18.1246 Stock Price 1 day before: 20.6008 Stock Price at release: 20.9199 Risk-Free Rate at release: 0.0015	32.9807
Symbol: PAR Security: PAR Technology Corporation Related Stocks/Topics: DELL\|Markets\|CVLT\|NTAP\|HPQ Title: This Company's 10-Day, +169% Run is Heating up an Entire Sector Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-23 05:27:00 Article: Investors in 3PAR ([PAR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PAR&selected=PAR)) ) can't believe their good fortune. They woke up last Monday to find that their investment had nearly doubled in value after Dell (Nasdaq: DELL) announced plans to buy the data storage company. And this Monday morning, they got another gift when Hewlett-Packard ([HPQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HPQ&selected=HPQ)) ) announced plans to outbid Dell, sending shares of 3PAR up another +44%. That's a +169% gain since August 13th.Wouldn't that be nice if all of our investments worked out so well... That hand has been played, but investors certainly think other quick profits can be made in the sector, and are bidding up shares of Compellent Technologies ([CML](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CML&selected=CML)) ), Isilion Systems (Nasdaq: ISLN) and CommVault (Nasdaq: CVLT) in recent sessions. All three stocks are up +25% to +30% since last Monday morning. Investors are either foolhardy in chasing these names or on the cusp of picking the field's next winner. Let's take a look. A storage pioneer3PAR's technology appeal is fairly obvious to industry analysts. The company has pioneered a new type of data management software known as "utility storage." Until now, companies that need to manage large amounts of data could invest in either monolithic or modular storage. Monolithic systems (sold by firms such as EMC ([EMC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EMC&selected=EMC)) ) ) are very expensive, take a long time to deploy, yet are very robust. Modular systems are much less expensive and can be used to add incremental amounts of storage management as networks grow, but are considered to be less robust. (The technology discussion is actually much more complex than this simplification, but you get the basic idea.)3PAR's approach actually marries the two by adding a range of software tools that help to better orchestrate all of the requirements that go into running a large mission-critical data network. This "utility storage" approach uses less power and lowers the level of needed IT expenses. Dell and HP both realize that lowering IT management costs while expanding capacity is the number one goal of their customers. The rest of the pack Along with 3PAR, Compellent Technologies had received a considerable amount of industry buzz in recent months. The company's forte is "automated data-tiering," which means that the most frequently used data in corporate networks is held in readily-accessible memory banks, not in less accessible disk drives. EMC has a similar offering, but some analysts think that Compellent's technology is better. To acquire Compellent, any tech firm would likely need to have either no relationship with EMC or would need to exit that relationship. That rules out Dell, unless the company takes the money it hoped to use for a 3PAR deal and use it on Compellent and another firm, thus eliminating the need to rely on EMC.Who's that other firm? Perhaps CommVault Systems. CommVault already counts on Dell for roughly 25% of its sales, and the two firms jointly call on many of the same customers. CommVault sells a wide range of network and data management software on one lone technology platform. Rivals such as EMC have made a series of acquisitions and have never completely merged the disparate technologies, making for IT headaches. CommVault's key selling point is that its software operates seamlessly and in a very low-cost fashion. Don't forget Isilon Isilon Systems has quickly emerged as a viable alternative in an area known as network-attached storage (NAS). The NAS market was pioneered by NetApp (Nasdaq: NTAP) , which has a [market value](http://investinganswers.com/term/market-value-779) and revenue base 10 times greater than Isilon's. Yet some industry watchers think Isilon's technology base is even more robust than its larger rival.Isilon was a hot [IPO](http://investinganswers.com/term/initial-public-offering-ipo-1076) at the end of 2006, but shares eventually lost -90% of their value thanks to a string of bad quarters. New management arrived in 2008, and the company has regained much of its lost mojo. Shares have risen more than +300% in the past 10 months and now trade for more than 50 times next year's [earnings](http://investinganswers.com/term/earnings-1514) . Shares are so pricey simply because investors believe Isilon would help a larger tech player make a big splash in this market. So they're not paying for potential profits, but for the technology base -- and frankly, it's impossible to know what shares are really worth to a potential buyer -- until that buyer emerges. Action to Take --> Shares of Compellent are also quite pricey, and along with Islion's shares, are hard to value. You may want to sit and wait for these stocks to return to earth. As time passes and no other deals emerge, shares of Isilon and Compellent are bound to pull back, especially if the Nasdaq enters another choppy phase.In contrast, CommVault is the one you should keep your eye on for a [buyout](http://investinganswers.com/term/buyout-949) . The company may lack the technology buzz of those two smaller technology players, but it has a sizable customer base that could open plenty of new cross-selling opportunities for any large tech firms. As Dell regroups after the 3PAR bidding war, CommVault may soon move into its sights.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/news/companys-10-day-169-run-heating-entire-sector-456487) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 17.9581 Stock Price 2 days before: 18.1246 Stock Price 1 day before: 20.6008 Stock Price at release: 20.9199 Risk-Free Rate at release: 0.0015	32.9807
Symbol: PAR Security: PAR Technology Corporation Related Stocks/Topics: CBOE\|Markets\|DELL\|BHP\|HPQ Title: Opening View: DJIA Bulls Look to Bounce Back on Deal-Making Spree Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-08-23 07:57:00 Article: The Dow Jones Industrial Average (DJIA) has pulled back roughly 4.7% since peaking near 10,720 in mid-August. While the DJIA closed out last week with a 60-point drop on Friday, the blue-chip barometer closed off its session lows, and comes into this week trading above potential support near 10,200. Meanwhile, the S&P 500 Index (SPX) held at the 1,070 level on Friday, though the broad-market index is once again staring up at potentially stiff resistance in the 1,100 region. Heading into the open, futures on the DJIA and SPX are trading about 38 points and 5.5 points above fair value, respectively, pointing toward a positive start to the session. Finally, the CBOE Market Volatility Index (VIX) remains somewhat in check, with the index closing above its 10-week trendline for a second week in a row, but unable to surmount its 20-week moving average in the 27 area. If the VIX were to move lower from this point, it could be bullish for the market. That said, we are entering a post-expiration week, which could be fraught with headwinds as investors work to re-establish hedges that expired last week.Wheeling and dealing is dominating the equities landscape this Monday morning. First up, Potash Corp. of Saskatchewan ([POT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=POT&selected=POT)) ) once again urged shareholders to reject BHP Billiton Plc.'s ([BHP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BHP&selected=BHP)) ) $40 billion unsolicited bid. Potash said that it's been contacted by and has reached out to a "number of third parties who have expressed an interest in considering alternative transactions." Meanwhile, Hewlett-Packard Co. ([HPQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HPQ&selected=HPQ)) ) has outbid Dell Inc. ([DELL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DELL&selected=DELL)) ) for 3PAR Inc. ([PAR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PAR&selected=PAR)) ), offering $24 per share for PAR, a 33.3% premium to Dell's offer of $18 per share. H-P hopes the deal will close by the year's end.Finally, HSBC Holdings plc ([HBC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HBC&selected=HBC)) ) has entered into exclusive talks to acquire a majority stake in Nedbank Group Ltd. from U.K. insurer Old Mutual plc. HSBC stated that talks are in progress and that any deal would be subject to conditions including regulatory clearances. The Financial Times reported Sunday that HSBC was set to win the bidding for a 52% holding in Nedbank, South Africa's fourth-largest lender. Earnings Preview On the earnings front, Focus Media Holding Limited ([FMCN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FMCN&selected=FMCN)) ) is scheduled to release its quarterly earnings report today. Keep your browser at [SchaeffersResearch.com](http://www.schaeffersresearch.com/) for more news as it breaks. Economic Calendar There are no major economic reports scheduled for release today. Tomorrow offers up July's existing home sales data. On Wednesday, July's durable goods orders, new home sales, and the weekly report on U.S. petroleum supplies will hit the Street. Weekly initial jobless claims will arrive on Thursday, while Friday rounds out the week with a second look at second-quarter U.S. gross domestic product and the final reading on the University of Michigan's August consumer sentiment index. Market Statistics Equity option activity on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) saw 1,331,720 call contracts traded on Friday, compared to 967,871 put contracts. The resultant single-session put/call ratio arrived at 0.73, while the 21-day moving average rose to 0.64. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100823ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100823ov2.gif)The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher. [Dow, S&P and Nasdaq futures](http://www.schaeffersresearch.com/images/commentary/2010/100823ov3.gif)Live From San Francisco: Senior Equities Analyst Andrea Kramer live blogged from the Schaeffer's booth at the San Francisco Money Show this week. If you didn't' catch it, you missed out on Steve Forbes and his three-step approach for resuscitating the American economy, including his opinion on the U.S. dollar, the federal tax code, and "Obamacare." Click [here](http://www.schaeffersresearch.com/commentary/trade_show_blog.aspx) to check it out. Overseas Trading Overseas trading is mixed, as six of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a gain of 0.19%. Asian markets closed broadly lower, with Japan once again leading the decline as concerns grew that authorities may not step in and prevent a continued rise in the yen. Elsewhere, mining stocks were standouts, as shares gained after Australia's weekend election failed to produce a clear winner. Deal making is helping to lift sentiment in the euro zone, sending European markets higher. Specifically, Old Mutual rose nearly 5% after HSBC Holdings said it's in talks to acquire a majority stake in Old Mutual's Nedbank Group. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100823ov4.gif)Currencies and Commodities With the euro struggling to move higher, the U.S. Dollar Index is once again flirting with resistance near its 10-week moving average. The greenback has pulled back a bit in early European trading, with the index down 0.11% at $82.97. Commodities have garnered some strength from this pullback in the dollar, with the front-month crude contract up 28 cents at $74.10 per barrel. Finally, gold is trading essentially flat, rising 50 cents to trade at $1,229.30 an ounce in London. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100823ov5.gif)**Unusual Put and Call Activity:For an explanation of how to use this information, check out our [Education Center](http://www.schaeffersresearch.com/schaeffersu/) topics on [Option Volume](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?ID=220#220) and [Open Interest Configurations](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?id=221) . [Unusual options activity - puts](http://www.schaeffersresearch.com/images/commentary/2010/100823ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100823ov7.gif)Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up [here](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=O&CODE=SIRG07D)** for free daily delivery, straight to your inbox, before the opening bell. All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 17.9581 Stock Price 2 days before: 18.1246 Stock Price 1 day before: 20.6008 Stock Price at release: 24.724 Risk-Free Rate at release: 0.0015	32.9807
Symbol: PAR Security: PAR Technology Corporation Related Stocks/Topics: DELL\|Markets\|HPQ Title: Hewlett-Packard Outbids Dell for Storage Specialist 3Par (HPQ, DELL) Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-08-23 08:41:00 Article: PC and printer maker Hewlett-Packard Company ([HPQ](http://www.dividend.com/dividend-stocks/technology/diversified-computer-systems/hpq-hewlett-packard/)) ) on Monday announced that it has submitted a $24 per-share bid for utility storage company 3Par ( PAR ), which trumps an earlier bid made by PC making rival Dell Inc. ( DELL ).Dell's offer, which was made last week, was for $18 per share, or $1.13 billion. HP's bid totals $1.5 billion in cash, and represents a 33.3% premium over Dell's offer. Once approved by 3Par's board of directors, Hewlett-Packard said it expects the deal to close by the end of the year."HP's proposal offers superior value to 3PAR's shareholders," said HP's GM of Enterprise Servers, Storage and Networking, Dave Donatelli. "Our global reach, strong routes to market and commitment to innovation uniquely position HP as the ideal fit for 3PAR … We've seen great momentum with our Converged Infrastructure strategy, and 3PAR accelerates that strategy, particularly in cloud and scale-out markets."Hewlett-Packard shares fell 31 cents, or -0.8%, in premarket trading Monday. The Bottom Line We had removed shares of HPQ from our recommended list back on Oct.1, 2009, when the stock was trading at $47.21. The company has a .80% dividend yield, based on Friday's closing stock price of $39.85. The stock has technical support in the $35-$37 price area. If the shares can firm up, we see overhead resistance around the $44 price level. We would remain on the sidelines for now.Hewlett-Packard Company ([HPQ](http://www.dividend.com/dividend-stocks/technology/diversified-computer-systems/hpq-hewlett-packard/)) ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars. Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 17.9581 Stock Price 2 days before: 18.1246 Stock Price 1 day before: 20.6008 Stock Price at release: 24.9988 Risk-Free Rate at release: 0.0015	32.9807
Symbol: PAR Security: PAR Technology Corporation Related Stocks/Topics: DELL\|Markets\|HPQ Title: Is the DELL, HP, PAR Merger Battle Really A Bullish Thing? Type: News Publication: Learning Markets Publication Author: Unknown Date: 2010-08-23 11:13:00 Article: Stock Price 4 days before: 17.9754 Stock Price 2 days before: 18.1246 Stock Price 1 day before: 20.6008 Stock Price at release: 25.2899 Risk-Free Rate at release: 0.0015	32.9741
Symbol: PAR Security: PAR Technology Corporation Related Stocks/Topics: DELL\|Markets\|HPQ Title: How Hewlett-Packard Lost Its Luster in 3 Weeks Type: News Publication: SeekingAlpha Publication Author: Unknown Date: 2010-08-25 02:28:00 Article: [Chad Brand](http://www.peridotcapital.com/) It is always interesting how quickly the investor community can turn its back on a company. Technology giant Hewlett-Packard ([HPQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HPQ&selected=HPQ)) ) has seen its support wither after its CEO Mark Hurd resigned over questionable behavior earlier this month. HP's stock has cratered nearly 20%, from above $46 to around $38 per share, and all of the sudden investors insist that HP has lost its way. The loss of Hurd is definitely a negative, but should the tables be turning on HP this dramatically already?Fueling that argument is the news this week that HP decided to enter a bidding war with Dell ([DELL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DELL&selected=DELL)) ) over 3Par ([PAR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PAR&selected=PAR)) ) , a small data storage company. After initially being courted by four companies, Dell and HP were the finalists to acquire 3Par but HP had been previously unwilling to outbid Dell's $18 per share offer. However, after Dell and 3Par announced the deal HP decided to bid $24 and try to steal it from their competitor. Sporadic behavior on HP's part? It sure seems like it, as the critics were quick to point out, but maybe HP simply had a change of heart. Maybe Mark Hurd was against a higher offer and now that he is gone top management at HP decided they really should acquire the company. Who knows. What we do know, however, is that HP has lost its CEO and is now willing to pay at least $1.6 billion to fill out its product line. Are these actions worth a nearly 20% hit to HP's stock price? Given that HP shares were cheap to being with, I think the sell-off is overdone, as is the bearish sentiment toward the company all of the sudden. At $38, HP stock trades at merely 8.5x fiscal 2010 earnings estimates (there are only two months left in its fiscal year, so readers need not complain that I am failing to use trailing earnings, which would make the P/E ratio 10.7). And yes, using 2011 estimates of 11% profit growth (to $5 per share), HP's forward P/E stands at just 7.7 times.The risks here appear to be both obvious and less than dramatic. Could the absence of Mark Hurd send the company into an operational tailspin which would reduce market share and hurt profits? Possible, but unlikely. Hurd's top lieutenants remain at the company and are very likely to continue the management style and game plan he has had in place for several years.Could overpaying for 3Par hurt the company's finances dramatically? No chance, as HP has cash on hand of $14.7 billion.Could Dell adding 3Par to its arsenal materially cut into HP's business? Unlikely. 3Par generates only about $200 million in annual sales; a drop in the bucket for a company the size of Dell ($60 billion in sales) or HP ($125 billion in sales annually).Could the empty CEO job cost HP some customers? Unlikely. As a CTO, would you switch vendors if you have had good experiences in the past, simply because the company's previous CEO allegedly charged personal expenses to the company in what could have been an attempt to woo a female contractor? You would probably agree with me that giving him the boot should suffice. To me it is pretty clear that HP's stock is getting unfairly punished lately. As a long term value opportunity, I think it looks attractive. Disclosure: Long shares of HPQ at the time of writing, but positions may change at any time.See also [HP Continues Its Business Makeover With ArcSight Acquisition](http://seekingalpha.com/article/225081-hp-continues-its-business-makeover-with-arcsight-acquisition?source=nasdaq) on seekingalpha.com Stock Price 4 days before: 18.1246 Stock Price 2 days before: 20.9199 Stock Price 1 day before: 27.694 Stock Price at release: 27.0177 Risk-Free Rate at release: 0.0017	32.9895
Symbol: HVT Security: Haverty Furniture Companies, Inc. Related Stocks/Topics: Markets\|KIRK Title: Pounce on this Sector's Value Before it Disappears Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-25 03:12:00 Article: Investors see little reason to buy any stocks having to do with housing right now, and for good reason. Recent data tell us that the long-awaited upturn in housing is still over the horizon. So shares prices -- especially among home furnishing retailers -- fall and fall some more. In the last three months, shares of Kirkland's (Nasdaq: KIRK) have lost almost half of their value, Haverty's ([HVT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HVT&selected=HVT)) ) and Ethan Allen ([ETH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ETH&selected=ETH)) ) have fallen by roughly one-third, while Bed, Bath & Beyond (Nasdaq: BBBY) and Pier One Imports ([PIR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PIR&selected=PIR)) ) have fallen roughly -20%.One could assume the sell-off was the result of steadily falling profit estimates, yet consensus expectations for Bed, Bath & Beyond's profit in 2010 and 2011 have remained flat in the past three months, and Pier One's profit outlook has actually been strengthening. (Ethan Allen and Haverty's, which focus on more expensive bedroom and living room sets, have been the subject of downward estimate revisions). As the table below shows, these stocks now range from reasonably priced to dirt cheap.I am not a big fan of Haverty's and Ethan Allen at current levels, due to their greater dependence on large transactions and their still-high [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) ratios. Yet Kirkland's, Pier One, and Bed Bath & Beyond should hold real appeal -- each for distinctive reasons. Kirkland's As noted above, this stock has been a stark underperformer this summer. Shares traded near $25 in late April when investors expected to see a slow rebound in consumer spending. With that catalyst off the table, shares have plunged to just $10. The final blow came last Friday when the company noted a slowdown in consumer spending and reined in guidance for the second half of the year, pushing shares down -27% in a day.But Kirkland's 287 stores should simply tread water for the next few quarters and avoid any serious trouble. [Cash flow](http://investinganswers.com/term/cash-flow-1175) should remain solid and the company already has $66 million in net cash, which should be more than enough to stave off any concerns that further dips in consumer spending would make the company a candidate for bankruptcy, as was the case with rivals Bombay and Linen's & Things. The demise of those firms also means that Kirkland's will see less competition and show better [earnings](http://investinganswers.com/term/earnings-1514) [leverage](http://investinganswers.com/term/leverage-61) when the [economy](http://investinganswers.com/term/economy-1517) finally rebounds. Trading at around six or seven times earnings, shares are undeniably cheap. Earnings estimates may come down a bit in coming days as last Friday's results are digested, but the forward P/E is unlikely to rise above eight. Bed, Bath & Beyond Bed, Bath & Beyond is the industry's dominant player. Thanks to savvy merchandising and cost controls, the company has developed a strong following on Wall Street and as a result, has not been hit as hard as some of its smaller peers. Management is also held in high regard due to a history of very conservative guidance, which invariably allows the retailer to top estimates every quarter. Shares trade for just 12 times next year's profits and would likely garner a multiple in the mid to high teens in a more robust economy. I am leaving my commentary brief on this well-known name, but I am a big fan. Pier One Imports This has been one of the most under-appreciated [turnaround](http://investinganswers.com/term/turnaround-888) stories of 2010. Just a few years removed from a flirtation with bankruptcy, Pier One has had a strong run of good news: rivals have gone out of business, the company's team of buyers started to deliver more appealing wares, gross margins rebounded and open-ended losses turned into profits.The rebound was in full evidence when Pier One reported fiscal first quarter (May) sales rose +9% from a year ago, even as some stores were closed. On a same-store basis, sales rose an impressive +14%. Fewer rivals also meant fewer price wars: gross margins rose a hefty 700 basis points to 37.4% from a year ago.Pier One will release fiscal second-quarter results in mid-September. Analysts expect the company post a small profit, compared to a large loss a year ago. Shares, which had moved above $9 in the spring, are finishing up the summer below $6 and that's put the company's P/E ratio back into single-digit territory -- a multiple far too low for a retailer that now has less competition and much better management execution. Action to Take --> Pier One likely has the greatest upside here. Per share profits could exceed $1 once consumer spending rebounds, pushing shares up into the low teens. Bed, Bath & Beyond should be seen as a steady core holding for any investor looking for retail exposure. That may seem a counter-intuitive notion as consumer spending sags, but that is precisely the time to be researching these stocks. Kirkland looks more like a long-term play, but could double once consumer spending picks up.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/news/pounce-sectors-value-it-disappears-456494) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 10.5037 Stock Price 2 days before: 10.6327 Stock Price 1 day before: 9.93717 Stock Price at release: 10.0227 Risk-Free Rate at release: 0.0017	10.2895
Symbol: GES Security: Guess', Inc. Related Stocks/Topics: CBOE\|Markets\|TOL\|AEO Title: Opening View: How Long Can DJIA Bulls Defend 10K? Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-08-25 08:00:00 Article: The Dow Jones Industrial Average (DJIA) dropped 134 points on Tuesday to close at its lowest level since July 7. However, the blue-chip barometer held psychological support at the 10,000 level, as market bulls came out early in defense. However, if today's economic reports on new home sales and durable goods miss the mark, DJIA bulls could be kissing goodbye to 10K and potentially saying hello to 2010's lows near 9,600 in short order. As for the S&P 500 Index (SPX), the broad-market index is trading just above potential support near 1,045, though a poor round of economic data could have a chilling effect. Heading into the open, Wall Street doesn't look too optimistic, with futures on the DJIA and the SPX trading about 26 points and 2.6 points below fair value, respectively. Finally, the CBOE Market Volatility Index (VIX) broke out to a two-month high on Tuesday, and is threatening to close above short-term resistance in the 28 region. As I have said before, a continued rise in the VIX does not bode well for the equities market.In equity news, Toll Brothers Inc., ([TOL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TOL&selected=TOL)) ) said that it swung to third-quarter profit of $27.3 million, or 16 cents per share, from a loss of $472.3 million, or $2.93 per share, last year. Revenue slipped to $454.2 million from $461.4 million a year ago. Analysts were looking for a loss of 14 cents per share on revenue of $392.9 million. Elsewhere, Pacific Sunwear of California Inc. ([PSUN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PSUN&selected=PSUN)) ) said that its second-quarter loss widened to $23.5 million, or 36 cents per share, from $14.2 million, or 22 cents per share, a year ago. Excluding one-time items, the company would have reported a loss of 22 cents per share. Revenue fell to $218.3 million from $242.8 million in the year-ago period. Analysts estimated a loss of 23 cents per share on revenue of $213.3 million. Earnings Preview On the earnings front, American Eagle Outfitters ([AEO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AEO&selected=AEO)) ), Guess?, Inc. ([GES](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GES&selected=GES)) ), JDS Uniphase Corp. ([JDSU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JDSU&selected=JDSU)) ), and TiVo Inc. ([TIVO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TIVO&selected=TIVO)) ) are scheduled to release their quarterly earnings reports today. Keep your browser at [SchaeffersResearch.com](http://www.schaeffersresearch.com/) for more news as it breaks. Economic Calendar The economic calendar offers up July's durable goods orders today, as well as new home sales, and the weekly report on U.S. petroleum supplies. Weekly initial jobless claims will arrive on Thursday, while Friday rounds out the week with a second look at second-quarter U.S. gross domestic product and the final reading on the University of Michigan's August consumer sentiment index. Market Statistics Equity option activity on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) saw 1,055,972 call contracts traded on Tuesday, compared to 774,594 put contracts. The resultant single-session put/call ratio arrived at 0.73, while the 21-day moving average rose to 0.64. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100825ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100825ov2.gif)The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher. [Dow, S&P and Nasdaq futures](http://www.schaeffersresearch.com/images/commentary/2010/100825ov3.gif) [Click here for the new summer issue of SENTIMENT magazine](http://www.schaeffersresearch.com/redirect.aspx?CODE=SIRMAG10HGENERAL&PAGE=1)Overseas Trading Overseas trading looks abysmal this morning, as none of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a loss of 0.90%. In Asia, regional indexes attempted a rebound, but were smacked lower in late trading, with the Japanese Nikkei narrowly avoiding a 2% loss on the day. China's Shanghai wasn't as lucky. The rising yen remains Japan's biggest concern, as the currency hit a 15-year high versus the U.S. dollar on Tuesday, sapping strength from the country's exporters. Despite generally positive economic data, European markets are also headed broadly lower. Germany's Ifo business-sentiment index climbed to its highest level since mid-2007, but this was largely overshadowed by Standard & Poor's downgrade of Ireland's credit ratings. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100825ov4.gif)Currencies and Commodities After closing at an 11-week low on Wednesday, oil prices regained some of that ground in Asian trading due to a spot of weakness in the U.S. dollar. Crude is holding onto some of that ground in electronic trading state-side, with the front-month contract rising 0.29% to $71.84 per barrel. Speaking of the U.S. dollar, the greenback took a breather in overnight trading, as traders repositioned themselves in the euro and the yen. However, the U.S. Dollar Index appears to be headed higher once again this morning, gaining 0.17% to trade at 83.29 at last check. Finally, gold futures have gained $5.50 in to trade at $1,238.90 in London - an eight-week high for the malleable metal. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100825ov5.gif)**Unusual Put and Call Activity:For an explanation of how to use this information, check out our [Education Center](http://www.schaeffersresearch.com/schaeffersu/) topics on [Option Volume](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?ID=220#220) and [Open Interest Configurations](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?id=221) . [Unusual options activity - puts](http://www.schaeffersresearch.com/images/commentary/2010/100825ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100825ov7.gif) Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up [here](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=O&CODE=SIRG07D)** for free daily delivery, straight to your inbox, before the opening bell. All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 39.0834 Stock Price 2 days before: 39.241 Stock Price 1 day before: 37.8243 Stock Price at release: 37.3081 Risk-Free Rate at release: 0.0017	38.6771
Symbol: UVV Security: Universal Corporation Related Stocks/Topics: DELL\|Markets\|EXC\|AEE\|LLY\|MO\|SO\|AAPL\|T Title: The Best DRIP on the Market Pays a Solid 6.4% Type: News Publication: Brad Briggs Publication Author: Unknown Date: 2010-08-25 10:33:00 Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photoWhen the topic is the current market, a lot of pundits like to talk about "the new normal" -- that is to say, a range-bound stock market confined by a slow-growth [economy](http://investinganswers.com/term/economy-1517) . But when it comes to finding decent long-term returns, there's never been a more tried-and-true method than dividends. In fact, studies from Standard & Poor's estimate that dividends have accounted for about 44% of the stock market's total return during the past 80 years.A solid dividend-paying stock can offer significant downside protection in the market. Even better, when dividends are reinvested, you can build enormous wealth over time. For example, $10,000 invested into the S&P 500 in the third fiscal quarter of 1990 would leave you with about $23,700 today on price [appreciation](http://investinganswers.com/term/appreciation-1107) alone. But with dividends factored in, you'd have about $40,600 -- four times your initial investment and almost twice as much as without dividends.Reinvesting dividends is incredibly simple. All you need is a good [dividend reinvestment plan](http://investinganswers.com/term/dividend-reinvestment-plan-1512) , or DRIP, to get started.A DRIP is a type of account that lets individual investors buy shares directly from a company rather than from a broker. Shares are bought in one of two ways:1) Direct purchase. This is when the account holder puts money in the account to buy shares of the [public company](http://investinganswers.com/term/public-company-1341) offering the plan. Most DRIP account holders opt to buy shares at regular intervals, and are allowed to make transactions for as little as $25. 2) Dividend reinvestment. DRIP account holders can opt to reinvest their dividends in additional shares.Most DRIPs are a real service to investors. Once all the initial legwork is done (finding a good dividend-paying stock to hold for the long-term, registering with the DRIP, and choosing the intervals with which to purchase shares), a DRIP helps take care of an important psychological component of investing: it enforces discipline.Look for dividend-paying stocks with solid fundamentals and a track record of staying healthy in any market environment. This will save you the agony of sleepless nights worrying about whether the market is up or down. In the long-run, you as a DRIP investor win because you have two inevitable forces on your side: [compounding](http://investinganswers.com/term/compounding-341) and time.With these points in mind, I went on a hunt to find the best DRIP on the market using the following criteria:-- [Market capitalization](http://investinganswers.com/term/market-capitalization-99) of at least $250 million-- Currently yielding at least +5%-- [Dividend payout ratio](http://investinganswers.com/term/dividend-payout-ratio-1234) of less than 80%Here's what I found:Any of the utilities in the table above would make a good option for conservative investors, but generally speaking the sector leaves a little to be desired for [capital appreciation](http://investinganswers.com/term/capital-appreciation-1006) . Tobacco names such as Altria ([MO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MO&selected=MO)) ) and Universal ([UVV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UVV&selected=UVV)) ) offer nice payouts, but as my colleague David Sterman recently noted, the tobacco industry is in decline and should be avoided. [Read: [Don't be Fooled by These High-Yield Stocks](http://www.streetauthority.com/node/456478) ] For my money, the best DRIP on the market is AT&T ([T](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=T&selected=T)) ) . The company's unrivaled high-speed Internet subscriber base, U-verse broadband television service, fixed-line telephone and wireless phone divisions make it a diversified cash cow and a [dividend](http://investinganswers.com/term/dividend-1304) investor's dream.AT&T's wireless division comprises almost half of sales and looks to be the company's next big cash cow, as its fixed-line business continues a slow decline. To combat the impact of data-hungry smartphone users on its network, AT&T has changed its wireless data pricing plans, eliminating its $30 a month unlimited plan and imposing penalties on customers who exceed their limits. AT&T customers have often complained of slow download speeds, and combined with increased spending and upgrades, this should ease the strain going forward.It's true that the AT&T is heavily dependent on Apple's (Nasdaq: AAPL) iPhone and could one day lose its exclusivity agreement. But aside from network improvements and other offerings such as Dell's (Nasdaq: DELL) new Aero smartphone, the company is working to improve customer loyalty with better pricing. Until the day comes when it loses exclusivity, it is little cause for concern. Action to Take --> If AT&T's new mobile pricing plans and network improvements take hold and the company can stay one step ahead of Verizon, the stock should make for a great long-term core holding for any investor.AT&T's dividend payout ratio of 61.6% last quarter means that the company is paying out less than two-thirds of [earnings](http://investinganswers.com/term/earnings-1514) -- plenty of room to be considered a safe payout ($3.9 billion in [cash flow](http://investinganswers.com/term/cash-flow-1175) helps, too). In fact, AT&T has a stellar track record of boosting dividends: the payout has grown an average of +5.5% annually during the past five years. At 12.5 times earnings, the stock is reasonably valued, but it hasn't offered an average [yield](http://investinganswers.com/term/yield-1406) higher than 5% in the past five years, making right now a great name to get in for the long-haul.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- Brad BriggsA graduate of Baylor University, Brad joined StreetAuthority in 2008 after working in the banking industry and at The Texas Observer. Brad's researching experience includes... Read more.Disclosure: Neither Brad Briggs nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/best-drip-market-pays-solid-64-456492) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 36.903 Stock Price 2 days before: 37.1934 Stock Price 1 day before: 36.0295 Stock Price at release: 35.8455 Risk-Free Rate at release: 0.0017	39.8313
Symbol: CAL Security: Caleres, Inc. Related Stocks/Topics: Markets Title: Continental (CAL) put spread expresses moderate bullishness Type: News Publication: Karla Yeh Publication Author: Unknown Date: 2010-08-25 11:14:00 Article: Without any news from Continental Airlines Inc. (NYSE: CAL ) , shares of the airline name are down on the day and underperforming the broad market weakness following a worse-than-expected new home sales report. The CAL October 18-strike and 20-strike puts were active during morning trading thanks to an investor who appears to have expressed moderate bullishness on the company.At 10:27 a.m. ET, 5,000 October 18-20 put spreads changed hands for a net premium of 64 cents per spread. The 18-strike puts crossed the tape for 89 cents per contract, or the ask price at the time of the trade, and the 20-strike puts traded for $1.53 per contract, which was the bid price when the volume hit the tape. Current open interest of the lower strike puts is 18 contracts while the higher-strike puts are home to current open interest of 484 contracts. This options action indicates the investor collected a total of $320,000 to open these bull put spread positions. These spreads will turn maximum profits if CAL is trading higher than the short put strike (20) at October options expiration. Maximum gain on this trade is the credit, or 64 cents per spread. If the stock drops below the long put strike and is trading below $18 at expiration, the investor will lose a maximum of $1.36 per spread, or the difference between the strikes minus the premium collected. This spread breaks even if CAL shares are trading at $19.36.CAL dropped nearly 2% during morning trading to $20.57. Last month, the stock reached a 52-week high of $25.99. Stock Price 4 days before: 21.697 Stock Price 2 days before: 22.0704 Stock Price 1 day before: 21.0289 Stock Price at release: 20.34 Risk-Free Rate at release: 0.0017	23.7441
Symbol: GES Security: Guess', Inc. Related Stocks/Topics: CF\|Markets\|GS\|FCX\|RL Title: Market Wrap-Up for Aug.26 (GES, FCX, GS, COH, RL, more) Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-08-26 04:19:00 Article: Yesterday, Morgan Stanley released a report with a bullish slant toward dividend stocks. We all know how Wall Street works: certain investments become the flavor of the day, until something sexier comes along that starts a new investing trend.That's no problem for us, as we don't mind always keeping our focus squarely on what's worked for more than 100 years: dividends. In contrast, investors that tend to chase the "church of what's working now" usually do well by their brokers when it comes to being active, generating commission dollars in the process. At least commission rates have come down immensely these days, but can you imagine the coin that used to be printed for brokers years back when commissions were $30 and in some cases over $100 per transaction, depending on the size? Anyway, Morgan Stanley now sees companies returning more money to investors, with the appetite for acquisitions waning amid economic uncertainty. We are always arguing in favor of dividend raises, instead of the dreaded stock buybacks, which serve mainly to pad the pockets of top executives with massive stock options.Looking at today's action, it was fairly subdued early on, but sellers did make an appearance in the afternoon. Guess ([GES](http://www.dividend.com/dividend-stocks/services/apparel-stores/ges-guess-inc/)) ) got hit hard following the company's weaker-than-expected earnings guidance this morning. Freeport McMoran ([FCX](http://www.dividend.com/dividend-stocks/basic-materials/copper/fcx-freeport-mcmoran/)) ) and CF Industries ([CF](http://www.dividend.com/dividend-stocks/basic-materials/agricultural-chemicals/cf-cf-industries/)) ) were able to get back a sliver of the previous two days' mini-correction. The dividend yields for most of the momentum-style commodity plays are still not attractive for income-producing investors, so leave those names to the active traders who tend to look for volatility. Stocks that did get sold as the afternoon went on, included Goldman Sachs ([GS](http://www.dividend.com/dividend-stocks/financial/investment-brokerage-national/gs-goldman-sachs/)) ) , Coach ([COH](http://www.dividend.com/dividend-stocks/consumer-goods/textile-apparel-footwear-and-accessories/coh-coach-inc/)) ) , and Polo Ralph Lauren ([RL](http://www.dividend.com/dividend-stocks/consumer-goods/textile-apparel-clothing/rl-polo-ralph-lauren/)) ) .I hope everyone is enjoying the new personal finance-style articles we're been publishing on the site. The aim is to help educate investors about finding ways to build and create wealth with money-saving ideas, tips, and more. It's time for us to stop worrying about Social Security and other soon-to-be outmoded retirement solutions, and instead create our own long-term income streams.Be sure to check out our recently-updated [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) list for our currently recommended dividend plays.Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 39.2234 Stock Price 2 days before: 37.8243 Stock Price 1 day before: 37.3072 Stock Price at release: 35.3136 Risk-Free Rate at release: 0.0017	39.3106
Symbol: GES Security: Guess', Inc. Related Stocks/Topics: CBOE\|Markets\|BEBE Title: Opening View: DJIA Bulls Cautious Ahead of Jobless Claims Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-08-26 08:02:00 Article: The Dow Jones Industrial Average (DJIA) held support at the 10,000 level yesterday, and even managed to finish in positive territory despite a fresh round of weak economic data. The Dow still faces some stiff technical hurdles, including the 10,100 level, not to mention another round of economic reports today, with jobless claims, and tomorrow, with second-quarter gross domestic product. That said, Wall Street appears to have recovered its footing after yesterday's trip below 10,000 on the DJIA, and some bargain hunting may finally be taking place. Heading into the open, futures on the DJIA and S&P 500 Index (SPX) are trading roughly 17 points and 2 points above fair value, respectively. Finally, the CBOE Market Volatility Index (VIX) was turned back by resistance in the 28 region. This area is home to the VIX's 80-day moving average.In equity news, Guess Inc. ([GES](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GES&selected=GES)) ) reported record quarterly net earnings of $66.8 million, or 72 cents per share, on net revenue of $577.1 million. Comparable-store sales increased 1.7% in local currency and 3.5% in U.S. dollars. Guess was expected to earn 68 cents per share in the period. Elsewhere, JDS Uniphase ([JDSU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JDSU&selected=JDSU)) ) swung to a profit for its fourth fiscal quarter on a strong jump in sales of the company's optical networking products. For the quarter, the firm reported non-GAAP earnings of 15 cents per share on revenue of $398.1 million. Analysts were expecting earnings of 14 cents per share on revenue of $398.5 million.Finally, TiVo Inc. ([TIVO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TIVO&selected=TIVO)) ) said that its second-quarter loss widened to $15.3 million, or 13 cents per share, from $2.7 million, or 3 cents per share, a year ago. Revenue declined to $51.5 million from $57.6 million a year ago. Analysts estimated a loss of 15 cents per share on revenue of $55.6 million. Earnings Preview On the earnings front, Aruba Networks Inc. ([ARUN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ARUN&selected=ARUN)) ), bebe stores inc. ([BEBE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BEBE&selected=BEBE)) ), Novell Inc. ([NOVL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NOVL&selected=NOVL)) ), and OmniVision Technologies Inc. ([OVTI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OVTI&selected=OVTI)) ) are scheduled to release their quarterly earnings reports today. Keep your browser at [SchaeffersResearch.com](http://www.schaeffersresearch.com/) for more news as it breaks. Economic Calendar Weekly initial jobless claims will arrive later this morning, while tomorrow rounds out the week with a second look at second-quarter U.S. gross domestic product and the final reading on the University of Michigan's August consumer sentiment index. Market Statistics Equity option activity on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) saw 1,068,964 call contracts traded on Wednesday, compared to 664,930 put contracts. The resultant single-session put/call ratio arrived at 0.62, while the 21-day moving average held at 0.64. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100826ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100826ov2.gif)The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher. [Dow, S&P and Nasdaq futures](http://www.schaeffersresearch.com/images/commentary/2010/100826ov3.gif) [Click here for the new summer issue of SENTIMENT magazine](http://www.schaeffersresearch.com/redirect.aspx?CODE=SIRMAG10HGENERAL&PAGE=1)Overseas Trading Overseas trading is in fine shape this morning, as eight of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a gain of 0.36%. In Asia, regional markets rebounded from their recent lows, with Japan leading the way higher on speculation that the country may directly intervene in the yen's rise versus the U.S. dollar. Turning to Europe, Wall Street's resilience in snapping a four-session losing streak provided confidence for buyers, while strong earnings from French banking concern Credit Agricole added to the bullish momentum. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100826ov4.gif)Currencies and Commodities With investors slowly returning to the equities market, the U.S. dollar is beginning to lose its safe-haven appeal. However, indications that Japan is closer to taking direct action in limiting the yen's rise versus the greenback has provided some lift for the U.S. currency. At last check, the U.S. Dollar Index was down 0.38% at 82.94. Given crude's steep decline during the past several days, commodities traders have been more than happy to go bargain hunting, especially in the wake of a weakening U.S. dollar. In electronic trading, the front-month crude contract is up 85 cents at $73.37 per barrel. Finally, gold futures are also on the rise, with the lead contract up $4.30 at $1,245.60 an ounce in London - the metal's highest point since June 30. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100826ov5.gif)**Unusual Put and Call Activity:For an explanation of how to use this information, check out our [Education Center](http://www.schaeffersresearch.com/schaeffersu/) topics on [Option Volume](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?ID=220#220) and [Open Interest Configurations](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?id=221) . [Unusual options activity - puts](http://www.schaeffersresearch.com/images/commentary/2010/100826ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100826ov7.gif)Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up [here](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=O&CODE=SIRG07D)** for free daily delivery, straight to your inbox, before the opening bell. All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 39.2234 Stock Price 2 days before: 37.8243 Stock Price 1 day before: 37.3081 Stock Price at release: 35.6118 Risk-Free Rate at release: 0.0017	39.3106
Symbol: GES Security: Guess', Inc. Related Stocks/Topics: Markets Title: Guess Q2 Profit Beats View, but Forecast Disappoints (GES) Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-08-26 08:40:00 Article: Clothing and accessories maker Guess?, Inc. ([GES](http://www.dividend.com/dividend-stocks/services/apparel-stores/ges-guess-inc/)) ) late Wednesday posted a second quarter profit that beat analyst expectations, but left its full-year forecast unchanged, disappointing investors and sending its shares lower.The Los Angeles-based company reported second quarter net income of $66.8 million, or 72 cents per share, compared with $59.6 million, or 64 cents per share, in the year-ago period. Revenue rose more than 10% from last year, to $577 million.On average, Wall Street analysts expected a smaller profit of 68 cents per share, on nearly matching revenue of $576.4 million.Looking ahead, the company forecast third quarter earnings to range from 55 to 58 cents per share, which straddles analysts' outlook of 57 cents per share.For the full year, Guess left its previously-announced earnings forecast unchanged. It said it still expects 2010 profit of $2.80 to $2.85 per share, which would miss Wall Street's expectations of $2.92 per share for the year.Guess shares fell $2.37, or -6.2%, in premarket trading Thursday. The Bottom Line Shares of GES have a 1.67% dividend yield, based on last night's closing stock price of $38.23. The stock has technical support in the $35 price area. If the shares can firm up, we see overhead resistance around the $38-$42 price levels. We would remain on the sideline for now. Guess?, Inc. ([GES](http://www.dividend.com/dividend-stocks/services/apparel-stores/ges-guess-inc/)) ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 39.2234 Stock Price 2 days before: 37.8243 Stock Price 1 day before: 37.3081 Stock Price at release: 35.8056 Risk-Free Rate at release: 0.0017	39.3106
Symbol: ASA Security: ASA Gold and Precious Metals Limited Related Stocks/Topics: INTC\|Markets\|IBM\|XLE\|AXP\|BA\|CSCO Title: Market Ready for a Bounce? Type: News Publication: Unknown Publication Author: Unknown Date: 2010-08-26 09:18:00 Article: Stocks started Thursday on a positive note due to a better-than-expected weekly jobless claims number. But the S&P 500 ran into technical resistance at its 1,055 line as soon the Federal Reserve of Kansas City released a report showing a slowdown in manufacturing activity in its district. A broad round of selling ensued, and the Dow closed below the psychologically important 10,000 mark for the first time since early July.But even though the broad market took another hit, metals made gains. Diversified metals and miners rose almost 0.6%, and gold stocks jumped 1.2%. Barrick Gold Corporation (NYSE: [ABX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ABX&selected=ABX) ) rose 2.22%, and ASA Limited (NYSE: [ASA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ASA&selected=ASA) ) was up 1.42%. Technology stocks were the worst performers, down 1.1%. The biggest decliner on the Dow Industrials was Cisco Systems Inc. (NASDAQ: [CSCO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CSCO&selected=CSCO) ), off 1.93%. International Business Machines (NYSE: [IBM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IBM&selected=IBM) ) fell 1.83% and Intel Corporation (NASDAQ: [INTC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INTC&selected=INTC) ) was down 1.57%. The Boeing Company (NYSE: [BA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BA&selected=BA) ) rose 0.9% on news that it will double the number of employees at its parts factory in China. Other Dow stocks showing a gain were American Express Company (NYSE: [AXP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AXP&selected=AXP) ) and United Technologies Corporation (NYSE: [UTX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UTX&selected=UTX) ).The U.S. dollar and yen fell versus other currencies due to a rumor that the two countries might reveal plans for more monetary easing. And the euro rose following a successful debt issue from Ireland.At the close, the Dow Jones Industrial Average fell 74 points to 9,986, the S&P 500 was off 8 points at 1,047, and the Nasdaq lost 23 points at 2,119.The NYSE traded just over 1 billion shares with advancers ahead of decliners by about 2-to-1. The Nasdaq crossed 520 million shares, also with advancers ahead by about 2-to-1. Crude oil for delivery in October rose 84 cents to $73.36. The Energy Select Sector SPDR (NYSE: [XLE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=XLE&selected=XLE) ) closed at $50.78, off 46 cents.December gold fell $3.60 to settle at $1,237.70 an ounce, and the PHLX Gold/Silver Sector Index (NASDAQ: [XAU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=XAU&selected=XAU) ) gained 2.99 points to 180.38.What the Markets Are SayingEven though the major indices fell yesterday, they managed to still stay above their absolute breakdown points. Despite the negative response to the good jobs numbers in what should have been an up day for the markets, the summer of 2010 is still stuck at S&P 1,040 to 1,060.However, the bulls can't sustain many more days of selling, as the key indices are now within a fraction of a percent of the support lines that mark the lower end of important zones for each. In times like this, our internal and sentiment indicators can often help to clarify things.Currently every major internal indicator is oversold, although not as oversold as in the May retreat. But sentiment is another story. The AAII Sentiment Survey, a contra indicator, is as oversold as the July survey with the bulls now at 20.74% and bears at 49.47%. And the other contra indicator, the Investors Intelligence Advisor Sentiment, showed that, "After an 8.4% drop in two weeks, the bulls ended at 33.3%, down from 36.7% last time." The number of bulls is "typical of a correction bottom." As the "wall of worry" builds, investors continue to buy bonds and avoid stocks at what is an alarming rate to some analysts. Many are calling the current bond buying spree a bubble, and it does have some of the characteristics of an overbought situation. Recently, IBM easily raised $1 billion by issuing a three-year bond with a record low yield of 1%. And some companies are even considering issuing [bonds with a 100-year maturity](http://www.investorplace.com/news-opinion/100-year-bonds-latest-sign-bond-bubble.html) .This buying spree was most recently fueled by Fed Chairman Ben Bernanke's comment of "unusual uncertainties" in the economy. At the time, I pointed out that there is nothing more abhorrent to an investor than uncertainty, and for the Fed Chairman to use the term is almost unheard of.The indices now sit at the bottom of major support zones. The public is bearish, the Fed is uncertain, and everyone wants to buy bonds. With all of the bricks in the wall of worry in place, perhaps we will finally see a meaningful bounce in stocks. But if you buy, don't forget to put a stop-loss order in with your purchase, just in case "the herd" has got it right and stocks head lower.[Get one stock I think is a good buy now.](http://www.investorplace.com/hot-topics/trade-of-the-day/stock-picks-mcdonalds-corporation-mcd.html) Today's Trading Landscape Earnings to be reported before the opening include: Frontline and Tiffany & Co. Economic reports due: GDP (the consensus expects 1.3%), corporate profits and consumer sentiment (the consensus expects 69.6).If you have questions or comments for Sam Collins, please e-mail him at [[email protected]](mailto:[email protected]) . 26 Broken Stocks to Sell Now -There's a long list of companies that have jumped off their lows but are still trading at dirt-cheap prices. But BEWARE: These "bargain" stocks aren't just cheap, they're broken. [Get their names here or risk losing your shirt.](http://www.investorplace.com/order/?sid=BK3108) Stock Price 4 days before: 27.4867 Stock Price 2 days before: 27.2 Stock Price 1 day before: 26.9924 Stock Price at release: 27.3549 Risk-Free Rate at release: 0.0017	29.9023
Symbol: ASA Security: ASA Gold and Precious Metals Limited Related Stocks/Topics: INTC\|Markets\|IBM\|XLE\|AXP\|BA\|CSCO Title: Market Ready for a Bounce? Type: News Publication: Unknown Publication Author: Unknown Date: 2010-08-27 01:18:00 Article: Stocks started Thursday on a positive note due to a better-than-expected weekly jobless claims number. But the S&P 500 ran into technical resistance at its 1,055 line as soon the Federal Reserve of Kansas City released a report showing a slowdown in manufacturing activity in its district. A broad round of selling ensued, and the Dow closed below the psychologically important 10,000 mark for the first time since early July.But even though the broad market took another hit, metals made gains. Diversified metals and miners rose almost 0.6%, and gold stocks jumped 1.2%. Barrick Gold Corporation (NYSE: [ABX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ABX&selected=ABX) ) rose 2.22%, and ASA Limited (NYSE: [ASA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ASA&selected=ASA) ) was up 1.42%. Technology stocks were the worst performers, down 1.1%. The biggest decliner on the Dow Industrials was Cisco Systems Inc. (NASDAQ: [CSCO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CSCO&selected=CSCO) ), off 1.93%. International Business Machines (NYSE: [IBM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IBM&selected=IBM) ) fell 1.83% and Intel Corporation (NASDAQ: [INTC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INTC&selected=INTC) ) was down 1.57%. The Boeing Company (NYSE: [BA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BA&selected=BA) ) rose 0.9% on news that it will double the number of employees at its parts factory in China. Other Dow stocks showing a gain were American Express Company (NYSE: [AXP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AXP&selected=AXP) ) and United Technologies Corporation (NYSE: [UTX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UTX&selected=UTX) ).The U.S. dollar and yen fell versus other currencies due to a rumor that the two countries might reveal plans for more monetary easing. And the euro rose following a successful debt issue from Ireland.At the close, the Dow Jones Industrial Average fell 74 points to 9,986, the S&P 500 was off 8 points at 1,047, and the Nasdaq lost 23 points at 2,119.The NYSE traded just over 1 billion shares with advancers ahead of decliners by about 2-to-1. The Nasdaq crossed 520 million shares, also with advancers ahead by about 2-to-1. Crude oil for delivery in October rose 84 cents to $73.36. The Energy Select Sector SPDR (NYSE: [XLE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=XLE&selected=XLE) ) closed at $50.78, off 46 cents.December gold fell $3.60 to settle at $1,237.70 an ounce, and the PHLX Gold/Silver Sector Index (NASDAQ: [XAU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=XAU&selected=XAU) ) gained 2.99 points to 180.38.What the Markets Are SayingEven though the major indices fell yesterday, they managed to still stay above their absolute breakdown points. Despite the negative response to the good jobs numbers in what should have been an up day for the markets, the summer of 2010 is still stuck at S&P 1,040 to 1,060.However, the bulls can't sustain many more days of selling, as the key indices are now within a fraction of a percent of the support lines that mark the lower end of important zones for each. In times like this, our internal and sentiment indicators can often help to clarify things.Currently every major internal indicator is oversold, although not as oversold as in the May retreat. But sentiment is another story. The AAII Sentiment Survey, a contra indicator, is as oversold as the July survey with the bulls now at 20.74% and bears at 49.47%. And the other contra indicator, the Investors Intelligence Advisor Sentiment, showed that, "After an 8.4% drop in two weeks, the bulls ended at 33.3%, down from 36.7% last time." The number of bulls is "typical of a correction bottom." As the "wall of worry" builds, investors continue to buy bonds and avoid stocks at what is an alarming rate to some analysts. Many are calling the current bond buying spree a bubble, and it does have some of the characteristics of an overbought situation. Recently, IBM easily raised $1 billion by issuing a three-year bond with a record low yield of 1%. And some companies are even considering issuing [bonds with a 100-year maturity](http://www.investorplace.com/news-opinion/100-year-bonds-latest-sign-bond-bubble.html) .This buying spree was most recently fueled by Fed Chairman Ben Bernanke's comment of "unusual uncertainties" in the economy. At the time, I pointed out that there is nothing more abhorrent to an investor than uncertainty, and for the Fed Chairman to use the term is almost unheard of.The indices now sit at the bottom of major support zones. The public is bearish, the Fed is uncertain, and everyone wants to buy bonds. With all of the bricks in the wall of worry in place, perhaps we will finally see a meaningful bounce in stocks. But if you buy, don't forget to put a stop-loss order in with your purchase, just in case "the herd" has got it right and stocks head lower.[Get one stock I think is a good buy now.](http://www.investorplace.com/hot-topics/trade-of-the-day/stock-picks-mcdonalds-corporation-mcd.html) Today's Trading Landscape Earnings to be reported before the opening include: Frontline and Tiffany & Co. Economic reports due: GDP (the consensus expects 1.3%), corporate profits and consumer sentiment (the consensus expects 69.6).If you have questions or comments for Sam Collins, please e-mail him at [[email protected]](mailto:[email protected]) . 26 Broken Stocks to Sell Now -There's a long list of companies that have jumped off their lows but are still trading at dirt-cheap prices. But BEWARE: These "bargain" stocks aren't just cheap, they're broken. [Get their names here or risk losing your shirt.](http://www.investorplace.com/order/?sid=BK3108) Stock Price 4 days before: 27.4937 Stock Price 2 days before: 26.9908 Stock Price 1 day before: 27.3678 Stock Price at release: 27.8231 Risk-Free Rate at release: 0.0017	29.9023
Symbol: AMSC Security: American Superconductor Corporation Related Stocks/Topics: SCHW\|Markets\|BBY\|F\|NYT Title: Great News: Stocks are Hated Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-27 01:29:00 Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photoFor years, market strategists have tried to explain that investor bullishness is bad for future stock returns, and when investors are very bearish, it's a great time to buy. They're right. I've gone over 25 years of data compiled by the American Association of Individual Investors ([AAII](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AAII&selected=AAII)) ), and found this investing maxim to be remarkably accurate. And guess what? The AAII's weekly survey has just revealed another low in investor sentiment. First, let's take a look at what happened in the late 1980s when investors had just come out of a sharp market crash (the infamous [Black Friday](http://investinganswers.com/term/black-friday-912) of October, 1987) and sentiment was fairly bearish. This table shows the annual low point for investor sentiment from 1987 through 1993 and how the market subsequently fared. Throughout this period, investors were very bearish, and less than one in five investors considered themselves to be bullish. Those lonely bulls sure made some money, though.If you bought stocks at the annual low point in terms of investor sentiment, your three-year return would have been at least +37% in every one of those years, or roughly +11% on an annualized basis. In some of those periods, annualized returns approached +15%.In the ensuing years, investor sentiment was never again so bearish (expect for a quick dip in 2003 and 2005). But by 2008, the AAII survey was once again showing bulls to be a lonely group. Investors that chose to wade in while sentiment was very bearish in 2008 surely got burned, as the markets absolutely cratered in subsequent months. So this approach is not foolproof.But more recently, the strategy has once again been paying off. Fully 70% of investors were bearish at the beginning of March, 2009. Yet, one year later, the S&P 500 was more than +60% higher. Last November, when the bears were once again on the prowl, gutsy investors would have made a decent +6% gain in the next six months.This brings us to the latest AAII reading, which shows that bulls are again becoming a lonely crowd, with only one in five investors citing optimism. That's partially due to a series of weak recent economic reports, but it's also due to the fact that the S&P 500 is on track for its third straight losing week and has fallen -14% since early May. That's the main takeaway of this analysis. Investors tend to turn bearish after the market has posted weak returns. Action to Take --> In times of heightened bearishness, it's important to separate companies that are truly heading into tough times from companies that are operating at a steady pace but are simply unloved because investors are selling stocks. The latter group is what you want to focus on when making a watch list of stocks to buy.As a short list of companies that I believe will continue to post decent results, yet are now well off of their highs, you can take a look at: - Best Buy ([BBY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BBY&selected=BBY)) ) - Charles Schwab (Nasdaq: SCHW) - American Superconductor (Nasdaq: AMSC) - The New York Times Co. ([NYT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NYT&selected=NYT)) ) - Ford Motor ([F](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=F&selected=F)) ) If the market begins to strengthen, these names will likely see fresh buying interest.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More... Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 27.641 Stock Price 2 days before: 26.6508 Stock Price 1 day before: 27.3567 Stock Price at release: 26.9157 Risk-Free Rate at release: 0.0017	30.5534
Symbol: PAR Security: PAR Technology Corporation Related Stocks/Topics: CBOE\|Markets\|DELL\|HPQ Title: Hewlett-Packard Company and Dell Inc. Continue Bidding War for 3PAR Inc. Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-08-30 01:30:00 Article: The ATP tournaments just wrapped up here in Cincinnati, and my mind's still on the tennis courts. As such, the back-and-forth bidding war between Hewlett-Packard Company ([HPQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HPQ&selected=HPQ)) ) and Dell Inc. ([DELL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DELL&selected=DELL)) ) over 3PAR Inc. ([PAR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PAR&selected=PAR)) ) seems reminiscent of the Isner/Mahut Wimbledon match in June -- you know, the match that lasted over 10 hours. Isner eventually emerged victorious, but what about HPQ and DELL?The two companies have been duking it out for weeks. It all started when HPQ made an unsolicited $24-per-share bid that trumped DELL's initial $18-per-share bid. The stakes have since been raised -- multiple times -- and now HPQ has the upper hand with its current bid of $30 per share. Let's take a quick look at these two opponents, shall we? Hewlett-Packard Company ([HPQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HPQ&selected=HPQ)) )HPQ has been struggling lately, but the stock's technical troubles were exacerbated when its former CEO Mark Hurd abruptly resigned at the beginning of August. Since then, HPQ has shed roughly 17% of its value, with its 10-day and 20-day moving averages pressuring the shares steadily lower throughout this time. In fact, HPQ hit a new 52-week low on Friday. [Daily Chart of HPQ Since August 2010 With 10-Day and 20-Day Moving Averages](http://www.schaeffersresearch.com/images/commentary/2010/HPQ083010Daily.GIF) However, HPQ has rebounded from Friday's low, shooting ahead roughly 2.9% so far today. The stock is now challenging its 10-day moving average, which has not been surmounted since Aug. 4.In fact, it seems that option players were counting on HPQ to rebound off Friday's lows, as evidenced by Friday's activity at the September 40 call. Roughly 5,300 contracts changed hands on this front-month call -- 71% at the ask price, indicating they were likely purchased. Open interest jumped by nearly 2,900 contracts over the weekend, confirming that fresh bullish positions were added here. With HPQ trading around $39.06, these 40-strike calls are out of the money by less than one point.For the September series, peak call open interest of 21,993 contracts can be found at the 42 strike. With another 21,531 contracts now open at the 40 strike, the heavy accumulations of call open interest directly overhead could stall the stock's progress going forward. [Image](http://www.schaeffersresearch.com/images/commentary/2010/HPQ083010SOIR.gif) Friday's bullish activity is nothing out of the ordinary for HPQ. The tech stock's Schaeffer's put/call open interest ratio (SOIR) is currently docked at 0.66, in the bullishly biased 18th annual percentile. Meanwhile, in the past two weeks, traders on the International Securities Exchange (ISE) and Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) have bought to open 3.3 calls for every put purchased, a ratio which ranks above 81% of all other readings taken during the last year. In other words, speculators on the ISE and CBOE have seldom initiated bullish bets on HPQ at a faster clip.While HPQ has indeed bounced from its Friday nadir, the tech stock is by no means in the clear. With several layers of trendline resistance -- as well as potential options-related resistance -- looming overhead, HPQ has its work cut out for it. Should the shares be rejected at any of several resistance levels, a capitulation by the bulls could pressure the shares to new lows. Dell Inc. ([DELL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DELL&selected=DELL)) )Sector peer DELL hasn't been doing so hot lately, either, with the tech stock down 18% year-to-date. Since the beginning of August, DELL has been range-bound in the $11.50 to $12.50 neighborhood, with the upper rail of this range reinforced by its descending 10-week moving average, now docked just above $12.50. This moving average has served as both support and resistance to DELL in the past, with the latter currently the case. [Weekly Chart of DELL Since April 2010 With 10-Week Moving Average](http://www.schaeffersresearch.com/images/commentary/2010/DELL083010Weekly.GIF) Understandably, option players have adopted a bearish attitude toward DELL recently, with the ISE reporting that 1.13 puts have been bought to open for every call purchased during the past few weeks. This ratio ranks in the 85th percentile of its annual range, suggesting that traders on the ISE have scooped up puts on DELL at a faster clip just 15% of the time during the past year.Meanwhile, DELL sports a call-heavy SOIR of 0.57, which ranks just eight percentage points away from an annual bullish peak. The September 13 call is the most popular contract in the front-month series, with a respectable 20,130 contracts in open interest. Meanwhile, just 6,846 contracts can be found at the September 12 strike, which is site of peak put open interest. Upon closer inspection, DELL's call-heavy SOIR may have been influenced by the shorts. Despite a 10% drop in short interest during the past two weeks, short interest still accounts for 3% of the stock's available float. As such, a portion of these out-of-the-money calls may have simply been purchased as hedges by the shorts.For the record, the 10% drop in short interest did little -- if anything -- to help bolster the shares. With pessimism on the rise, and technical and options-related resistance looming overhead, DELL may continue to find itself range-bound, at least in the short term. In conclusion , as long as the bidding war drags on, both HPQ and DELL will likely continue to struggle. [Click here for the new summer issue of SENTIMENT magazine](http://www.schaeffersresearch.com/redirect.aspx?CODE=SIRMAG10HGENERAL&PAGE=1) All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 26.7378 Stock Price 2 days before: 31.5949 Stock Price 1 day before: 31.8578 Stock Price at release: 31.8739 Risk-Free Rate at release: 0.0016	0
Symbol: GLP Security: Global Partners LP Related Stocks/Topics: Markets\|USB\|CALM\|X\|HPQ Title: Dividend Highlights and Lowlights for Aug. 30 Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-08-30 04:48:00 Article: These were some of the biggest dividend stock performers on the upside and the downside in today's market action. Highlights Noble Energy ([NBL](http://www.dividend.com/dividend-stocks/basic-materials/independent-oil-and-gas/nbl-noble-energy/)) ) - up 2% Hewlett Packard ([HPQ](http://www.dividend.com/dividend-stocks/technology/diversified-computer-systems/hpq-hewlett-packard/)) ) - up 1%Ferrellgas Partners L.P. ([FGP](http://www.dividend.com/dividend-stocks/services/specialty-retail-other/fgp-ferrellgas-partners-lp/)) ) - up 1%DeVry Inc. ([DV](http://www.dividend.com/dividend-stocks/services/education-and-training-services/dv-devry-inc/)) ) - up 1%Global Partners L.P. ([GLP](http://www.dividend.com/dividend-stocks/services/basic-materials-wholesale/glp-global-partners-lp/)) ) - up 1%Lowlights Sotheby's ([BID](http://www.dividend.com/dividend-stocks/services/business-services/bid-sothebys/)) ) - down 6% Jones Apparel Group ([JNY](http://www.dividend.com/dividend-stocks/services/apparel-stores/jny-jones-apparel-group/)) ) - down 5%U.S. Bancorp ([USB](http://www.dividend.com/dividend-stocks/financial/regional-midwest-banks/usb-us-bancorp/)) ) - down 4%Cal-Maine Foods ([CALM](http://www.dividend.com/dividend-stocks/consumer-goods/farm-products/calm-cal-maine-foods/)) ) - down 4%U.S. Steel ([X](http://www.dividend.com/dividend-stocks/industrial-goods/metal-fabrication/x-us-steel/)) ) - down 1%Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 24.1658 Stock Price 2 days before: 24.7045 Stock Price 1 day before: 24.7529 Stock Price at release: 24.7543 Risk-Free Rate at release: 0.0016	24.834
Symbol: CPRX Security: Catalyst Pharmaceuticals, Inc. Related Stocks/Topics: DUSA\|Markets\|PALI\|ATHX\|LUNA\|CYCC Title: 9 Biotech Penny Stocks to Buy Type: News Publication: Louis Navellier Publication Author: Unknown Date: 2010-08-30 04:57:00 Article: Penny stock investments in the biotech sector abound right now after the recent market turmoil this summer. Healthcare and biotech penny stocks can be volatile, particularly those drug manufacturers that are not yet profitable and are waiting on an important FDA approval notice. But these stocks can be very good investments if you buy at the right time.My quantitative screens show that a number of biotech penny stocks - that is, cheap healthcare companies trading for less than $3 a share - have big upside potential for September as volume picks up on Wall Street. Here are 9 top penny stocks in the biotech sector to consider: Athersys Inc. ([ATHX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ATHX&selected=ATHX)) )Market Cap: $49.21 millionAthersys, Inc. (NASDAQ: [ATHX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ATHX&selected=ATHX) ) is a biopharmaceutical company engaged in the discovery and development of therapeutic products and is developing pharmaceuticals to treat indications such as obesity, certain cognitive and attention disorders, and narcolepsy or other forms of excessive daytime sleepiness. Shares of ATHX have risen significantly in the past year, gaining +157% and both meeting and exceeding analyst estimates so far in 2010.Catalyst Pharmaceutical Partners ([CPRX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CPRX&selected=CPRX)) )Market Cap: $20.78 million Catalyst Pharmaceutical Partners, Inc. (NASDAQ: [CPRX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CPRX&selected=CPRX) ) is a development-stage biopharmaceutical company focused on the development and commercialization of prescription drugs targeting central nervous system diseases with a focus on the treatment of addiction and epilepsy. CPRX shares are up +70% year-to-date and growth potential seems promising for this small cap drug maker.Rexahn Pharmaceuticals ([RNN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RNN&selected=RNN)) )Market Cap: $100.66 million Rexahn Pharmaceuticals (AMEX: [RNN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RNN&selected=RNN) ) is a clinical stage biopharmaceutical company developing and seeking to deliver cures for cancer and disorders of the central nervous system in patients. Rexahn's three clinical stage drug candidates are Archexin, Serdaxin, and Zoraxel. With RNN stock up +78% since the start of the year, shareholders may wan to keep their eye on this stock and its positive track record for beating EPS estimates.Inhibitex Inc. ([INHX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INHX&selected=INHX)) )Market Cap: 93.2 million Inhibitex, Inc. (NASDAQ: [INHX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INHX&selected=INHX) ) is a biopharmaceutical company focused on the development of differentiated anti-infective products to prevent and treat serious infections. This small cap pharma stock is showing some good growth potential with year to date performance at +63%. In addition to shares surging this summer, prospective investors should note that INHX has beat earnings estimates for three of the past four quarters. ******Cyclacel Pharmaceuticals ([CYCC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CYCC&selected=CYCC)) )Market Cap: $53.58 million Cyclacel Pharmaceuticals, Inc. (NASDAQ: [CYCC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CYCC&selected=CYCC) ) is a development-stage biopharmaceutical company engaged in the discovery, development and commercialization of mechanism-targeted drugs to treat human cancers and other serious disorders. With shares up +40% since January, CYCC could end up being a bargain at its current price of around $1.45 if it can manage to swing into another uptrend. Luna Innovations Inc. ([LUNA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LUNA&selected=LUNA)) )Market Cap: $24.14 million **Luna Innovations Inc . (NASDAQ: [LUNA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LUNA&selected=LUNA) ) is engaged in research, development and commercializing of technologies in two primary areas of focus: Test & measurement, sensing, and instrumentation products and health care products. Luna shares have gained an impressive +196.8% since the end of August 2009 despite the dip share prices have taken this summer. Don't count out the long-term earning potential for this Roanoke, Va.-based small cap. **Neuralstem Inc. ([CUR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CUR&selected=CUR)) )Market Cap: $90.72 million Neuralstem, Inc. (AMEX: [CUR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CUR&selected=CUR) ) is focused on developing and commercializing of treatments for central nervous system disease based on transplanting human neural stem cells and small molecule drugs. The future could be bright as the company continues to work into their clinical trials to treat Lou Gehrig's disease; shares of Rockland, Md.-based Neuralstem have gone up in value +80% since this time last year.AVI BioPharma Inc. ([AVII](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AVII&selected=AVII)) )Market Cap: $246.311 million AVI BioPharma, Inc. (NASDAQ: [AVII](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AVII&selected=AVII) ) is a biopharmaceutical company specializing in the discovery and development of ribonucleic acid (RNA) based drugs targeting a range of diseases. AVII shares have been on an impressive climb this summer and shareholders have already enjoyed +54% gains since June. The Washington-based company has also beat earnings estimates during two of the past three quarters and is getting the attention of savvy investors looking to add some stability to their portfolio. DUSA Pharmaceuticals Inc. ([DUSA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DUSA&selected=DUSA)) )Market Cap: $55.44 million DUSA Pharmaceuticals, Inc. (NASDAQ: [DUSA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DUSA&selected=DUSA) ) is a vertically integrated dermatology company that is developing and marketing Levulan photodynamic therapy and other products for common skin conditions. With +99% increases in DUSA share value from one year ago, investors who haven't heard of this small cap stock will likely be taking notice of the high-value and low financial commitment involved in DUSA stock. ****As of this writing, Louis Navellier did not own a position in any of the stocks named here. 5 Small Cap Stocks to Buy Now. **Small, innovative companies are watching their earnings explode - and they are the next ten-baggers. Investing pro Louis Navellier reveals his secrets to identifying these small cap innovators, plus five of his favorite small cap stocks - [download your FREE profit guide here.](https://order.investorplace.com/index.jsp?sid=SQ3132&uid=208.250.100.2-1277750367966934) Stock Price 4 days before: 1.08349 Stock Price 2 days before: 1.11616 Stock Price 1 day before: 1.09473 Stock Price at release: 1.09519 Risk-Free Rate at release: 0.0016	1.09909
Symbol: AMSC Security: American Superconductor Corporation Related Stocks/Topics: SCHW\|Markets\|BBY\|F\|NYT Title: Great News: Stocks Are Hated Type: News Publication: SeekingAlpha Publication Author: Unknown Date: 2010-08-30 08:36:00 Article: [StreetAuthority](http://www.streetauthority.com/) submits:By David StermanFor years, market strategists have tried to explain that investor bullishness is bad for future stock returns, and when investors are very bearish, it's a great time to buy. They're right. I've gone over 25 years of data compiled by the American Association of Individual Investors (([AAII](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AAII&selected=AAII)) )), and found this investing maxim to be remarkably accurate. And guess what? The AAII's weekly survey has just revealed another low in investor sentiment.First, let's take a look at what happened in the late 1980s when investors had just come out of a sharp market crash (the infamous [Black Friday](http://investinganswers.com/term/black-friday-912) of October, 1987) and sentiment was fairly bearish. This table shows the annual low point for investor sentiment from 1987 through 1993 and how the market subsequently fared. Throughout this period, investors were very bearish, and less than one in five investors considered themselves to be bullish. Those lonely bulls sure made some money, though. click to enlarge [](http://static.seekingalpha.com/uploads/2010/8/30/saupload_cm_capture_1.jpg) If you bought stocks at the annual low point in terms of investor sentiment, your three-year return would have been at least +37% in every one of those years, or roughly +11% on an annualized basis. In some of those periods, annualized returns approached +15%.In the ensuing years, investor sentiment was never again so bearish (except for a quick dip in 2003 and 2005). But by 2008, the AAII survey was once again showing bulls to be a lonely group. Investors that chose to wade in while sentiment was very bearish in 2008 surely got burned, as the markets absolutely cratered in subsequent months. So this approach is not foolproof.But more recently, the strategy has once again been paying off. Fully 70% of investors were bearish at the beginning of March, 2009. Yet, one year later, the S&P 500 was more than +60% higher. Last November, when the bears were once again on the prowl, gutsy investors would have made a decent +6% gain in the next six months.[](http://static.seekingalpha.com/uploads/2010/8/30/saupload_cm_capture_2.jpg) This brings us to the latest AAII reading, which shows that bulls are again becoming a lonely crowd, with only one in five investors citing optimism. That's partially due to a series of weak recent economic reports, but it's also due to the fact that the S&P 500 is on track for its third straight losing week and has fallen -14% since early May. That's the main takeaway of this analysis. Investors tend to turn bearish after the market has posted weak returns.In times of heightened bearishness, it's important to separate companies that are truly heading into tough times from companies that are operating at a steady pace but are simply unloved because investors are selling stocks. The latter group is what you want to focus on when making a watch list of stocks to buy. As a short list of companies that I believe will continue to post decent results, yet are now well off of their highs, you can take a look at: - Best Buy ([BBY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BBY&selected=BBY)) ) - Charles Schwab (Nasdaq: SCHW) - American Superconductor (Nasdaq: AMSC) - The New York Times Co. ([NYT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NYT&selected=NYT)) ) - Ford Motor ([F](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=F&selected=F)) ) If the market begins to strengthen, these names will likely see fresh buying interest.[Original Post](http://www.streetauthority.com/news/great-news-stocks-are-hated-456502?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+StreetauthorityArticles+%28StreetAuthority+Articles%29&utm_content=Google+Reader)Disclosure : Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.See also [Wednesday Bond Market Recap](http://seekingalpha.com/article/226584-wednesday-bond-market-recap?source=nasdaq) on seekingalpha.com Stock Price 4 days before: 27.425 Stock Price 2 days before: 27.9754 Stock Price 1 day before: 27.8303 Stock Price at release: 27.8105 Risk-Free Rate at release: 0.0016	30.2921
Symbol: PAR Security: PAR Technology Corporation Related Stocks/Topics: DELL\|Markets\|QCOM\|GOOG\|CRNT\|NOK\|HPQ Title: Where to Find the Next Big Tech Deal Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-30 12:49:00 Article: After Dell (Nasdaq: DELL) and Hewlett-Packard ([HPQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HPQ&selected=HPQ)) ) started their bidding for data storage firm 3PAR ([PAR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PAR&selected=PAR)) ) , investors quickly went in search of possible other deals, bidding up names of several rivals that may soon be bought out themselves.[Read: [This Company's 10-Day, +169% Run is Heating up an Entire Sector](http://www.streetauthority.com/node/456487) ] So as Intel (Nasdaq: INTC) announces plans to acquire the wireless chip division of Germany-based Infineon Technologies, it makes sense to see what other firms might be in play. (We made a similar review when Intel announced plans to buy McAfee ([MFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MFE&selected=MFE)) ) .) [See: [Why Today's Intel Deal Makes Tech Even More Appealing](http://www.streetauthority.com/node/456474) ]The untethered revolution Intel's decision to wade further into wireless technology is completely understandable. Smart phones and tablet computers are paving the way for a tech revolution that untethers us from cable modems and other desk-bound Internet connections. Industry watchers expect to see desktop-PC sales shrink and tablet sales rise in coming years.Inifineon can boast of customers such as Nokia ([NOK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NOK&selected=NOK)) ) , Research in Motion (Nasdaq: RIMM) and LG, but has barely made any profits on these chips that transmit wireless signals. Intel is likely less concerned about profits in the near-term and would instead like to find ways to boost [market share](http://investinganswers.com/term/market-share-778) in this fast-growing segment. That's also the probable logic behind any acquisitions of other wireless chip vendors.In that context, U.K.-based ARM Holdings (Nasdaq: ARMH) may hold appeal to potential acquirers. ARM is not involved in wireless chips, but instead focuses on other chips that go into mobile devices. ARM's processors are quick and consume little power -- a key consideration for mobile devices. Shares of ARM have had a strong run and now appear fairly expensive, so it's not clear that the company would garner a significant [buyout](http://investinganswers.com/term/buyout-949) premium. Other wireless communication plays Investors may have a hard time finding a "pure-play" investment vehicle in this space. Infineon's key rivals, Qualcomm (Nasdaq: QCOM) and Samsung focus on a range of chip technologies and are surely too large to be swallowed up by one of the traditional large tech buyers. Instead, investors are likely to focus on smaller firms that are ancillary plays on the wireless revolution. For example in the broader wireless space, Ceragon Networks (Nasdaq: CRNT) is helping emerging economies such as the Philippines and India build out wireless networks from scratch. In many parts of those countries, traditional wire line-based phone networks were never sufficient enough to handle large volumes of data traffic and are being leap-frogged by new wireless networks.In the past few quarters, the company has posted results well ahead of forecasts. Sales are growing at a +30% pace this year and should grow at least half that rate next year. Yet its shares have taken a big hit in this sell-off (before a +10% rebound in Monday trading), and the [price-to-earnings ratio (P/E)](http://investinganswers.com/term/price-earnings-ratio-pe-459) on projected 2011 [EPS](http://investinganswers.com/term/earnings-share-eps-1003) has fallen from 20 to 12 in just the past six months. MIPS Technologies (Nasdaq: MIPS)This company makes a wide range of chips, including those that help transmit wireless data. MIPS has tailored its most recent chip offerings to run seamlessly with Google's (Nasdaq: GOOG) Android software, which has led to an increasing number of design wins. To be sure, the company still derives the vast majority of sales from applications such as set-top boxes and advanced TV sets, but management has re-positioned the product line to derive a greater percentage of sales from mobile devices in coming years.MIPS saw sales fall more than -30% in fiscal (June) 2009, thanks to a build-up in inventory of its chips at key customers. Inventories have subsequently been drawn down, and although full-year results were flat for 2010, the [fiscal year](http://investinganswers.com/term/fiscal-year-1316) finished on a very strong note, as fiscal fourth quarter sales were nearly +80% higher than a year earlier. Analysts expect sales to rise +10% to +15% both this year and next, but that forecast looks far too conservative in light of the company's recent new contract momentum. Action to Take --> When a deal was announced for 3PAR two weeks ago, shares of rivals quickly moved up and have been rising ever since. Yet on the heels of this morning's Intel announcement, no takeover rumors have emerged and led to such gains among these chip rivals. But both Ceragon Networks and MIPS Technologies hold real merit on a standalone basis for investors, and would be even more valuable if a larger tech firm looking to move into this area made a bid. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 26.1065 Stock Price 2 days before: 31.5949 Stock Price 1 day before: 31.8578 Stock Price at release: 31.45 Risk-Free Rate at release: 0.0016	0
Symbol: CPRX Security: Catalyst Pharmaceuticals, Inc. Related Stocks/Topics: CYCC\|Markets\|ATHX Title: 9 Biotech Penny Stocks to Buy Type: News Publication: Louis Navellier Publication Author: Unknown Date: 2010-08-30 12:57:00 Article: Penny stock investments in the biotech sector abound right now after the recent market turmoil this summer. Healthcare and biotech penny stocks can be volatile, particularly those drug manufacturers that are not yet profitable and are waiting on an important FDA approval notice. But these stocks can be very good investments if you buy at the right time.My quantitative screens show that a number of biotech penny stocks - that is, cheap healthcare companies trading for less than $3 a share - have big upside potential for September as volume picks up on Wall Street. Here are 9 top penny stocks in the biotech sector to consider: Athersys Inc. ([ATHX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ATHX&selected=ATHX)) )Market Cap: $49.21 millionAthersys, Inc. (NASDAQ: [ATHX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ATHX&selected=ATHX) ) is a biopharmaceutical company engaged in the discovery and development of therapeutic products and is developing pharmaceuticals to treat indications such as obesity, certain cognitive and attention disorders, and narcolepsy or other forms of excessive daytime sleepiness. Shares of ATHX have risen significantly in the past year, gaining +157% and both meeting and exceeding analyst estimates so far in 2010.Catalyst Pharmaceutical Partners ([CPRX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CPRX&selected=CPRX)) )Market Cap: $20.78 million Catalyst Pharmaceutical Partners, Inc. (NASDAQ: [CPRX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CPRX&selected=CPRX) ) is a development-stage biopharmaceutical company focused on the development and commercialization of prescription drugs targeting central nervous system diseases with a focus on the treatment of addiction and epilepsy. CPRX shares are up +70% year-to-date and growth potential seems promising for this small cap drug maker.Rexahn Pharmaceuticals ([RNN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RNN&selected=RNN)) )Market Cap: $100.66 million Rexahn Pharmaceuticals (AMEX: [RNN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RNN&selected=RNN) ) is a clinical stage biopharmaceutical company developing and seeking to deliver cures for cancer and disorders of the central nervous system in patients. Rexahn's three clinical stage drug candidates are Archexin, Serdaxin, and Zoraxel. With RNN stock up +78% since the start of the year, shareholders may wan to keep their eye on this stock and its positive track record for beating EPS estimates.Inhibitex Inc. ([INHX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INHX&selected=INHX)) )Market Cap: 93.2 million Inhibitex, Inc. (NASDAQ: [INHX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INHX&selected=INHX) ) is a biopharmaceutical company focused on the development of differentiated anti-infective products to prevent and treat serious infections. This small cap pharma stock is showing some good growth potential with year to date performance at +63%. In addition to shares surging this summer, prospective investors should note that INHX has beat earnings estimates for three of the past four quarters. ******Cyclacel Pharmaceuticals ([CYCC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CYCC&selected=CYCC)) )Market Cap: $53.58 million Cyclacel Pharmaceuticals, Inc. (NASDAQ: [CYCC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CYCC&selected=CYCC) ) is a development-stage biopharmaceutical company engaged in the discovery, development and commercialization of mechanism-targeted drugs to treat human cancers and other serious disorders. With shares up +40% since January, CYCC could end up being a bargain at its current price of around $1.45 if it can manage to swing into another uptrend. Luna Innovations Inc. (LUNA)Market Cap: $24.14 million **Luna Innovations Inc . (NASDAQ: [LUNA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LUNA&selected=LUNA) ) is engaged in research, development and commercializing of technologies in two primary areas of focus: Test & measurement, sensing, and instrumentation products and health care products. Luna shares have gained an impressive +196.8% since the end of August 2009 despite the dip share prices have taken this summer. Don't count out the long-term earning potential for this Roanoke, Va.-based small cap. **Neuralstem Inc. (CUR)Market Cap: $90.72 million Neuralstem, Inc. (AMEX: [CUR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CUR&selected=CUR) ) is focused on developing and commercializing of treatments for central nervous system disease based on transplanting human neural stem cells and small molecule drugs. The future could be bright as the company continues to work into their clinical trials to treat Lou Gehrig's disease; shares of Rockland, Md.-based Neuralstem have gone up in value +80% since this time last year.AVI BioPharma Inc. (AVII)Market Cap: $246.311 million AVI BioPharma, Inc. (NASDAQ: [AVII](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AVII&selected=AVII) ) is a biopharmaceutical company specializing in the discovery and development of ribonucleic acid (RNA) based drugs targeting a range of diseases. AVII shares have been on an impressive climb this summer and shareholders have already enjoyed +54% gains since June. The Washington-based company has also beat earnings estimates during two of the past three quarters and is getting the attention of savvy investors looking to add some stability to their portfolio. DUSA Pharmaceuticals Inc. (DUSA)Market Cap: $55.44 million DUSA Pharmaceuticals, Inc. (NASDAQ: [DUSA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DUSA&selected=DUSA) ) is a vertically integrated dermatology company that is developing and marketing Levulan photodynamic therapy and other products for common skin conditions. With +99% increases in DUSA share value from one year ago, investors who haven't heard of this small cap stock will likely be taking notice of the high-value and low financial commitment involved in DUSA stock. ****As of this writing, Louis Navellier did not own a position in any of the stocks named here. 5 Small Cap Stocks to Buy Now. **Small, innovative companies are watching their earnings explode - and they are the next ten-baggers. Investing pro Louis Navellier reveals his secrets to identifying these small cap innovators, plus five of his favorite small cap stocks - [download your FREE profit guide here.](https://order.investorplace.com/index.jsp?sid=SQ3132&uid=208.250.100.2-1277750367966934) Stock Price 4 days before: 1.05748 Stock Price 2 days before: 1.11616 Stock Price 1 day before: 1.09473 Stock Price at release: 1.11726 Risk-Free Rate at release: 0.0016	1.06996
Symbol: PAR Security: PAR Technology Corporation Related Stocks/Topics: CVLT\|Markets\|MMM\|MU\|CMCSA Title: How Investors Should Handle the M&A Frenzy Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-08-31 04:59:00 Article: If you were a shareholder in 3PAR ([PAR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PAR&selected=PAR)) ), McAfee ([MFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MFE&selected=MFE)) ) or Cogent (Nasdaq: COGT) this summer, you're likely quite pleased with the news that each of those companies will be acquired a nice premium.[Read: [Why Today's Intel Deal Makes Tech Even More Appealing](http://www.streetauthority.com/node/456474) ] But the good news comes with a catch: should you take profits? Or should you hold on in hopes of further gains? The short answer: it depends.To figure out how to play the [buyout](http://investinganswers.com/term/buyout-949) game, we first need to separate any buyout-related price spike into two camps.The first camp involves stocks trading below the price a buyer has offered. This indicates that the deal may not go through due to regulatory anti-trust reasons, or simply because the buyout target has made it clear that it has no intention of selling the company in the near-term. If the stock is at a discount because of anti-trust concerns, then try to assess how real those concerns are. The government would likely never allow a merger between two companies that control most of a market, such as Time Warner ([TWX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TWX&selected=TWX)) ) and Comcast (Nasdaq: CMCSA) . But either of those firms would likely be able to acquire a smaller regional player. And if the stock is at a discount to a buyout offer because of a reticent seller, a sweeter offer may well emerge. But you need to ask yourself if there is significantly more upside to be had by sticking around. If you're sitting on a +50% gain and hoping for another +5% or +10%, then the answer is probably not.But what about stocks that are trading even higher than the buyout offer? Shares of Cogent now sell for $11, roughly 5% above the buyout offer made this week by 3M ([MMM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MMM&selected=MMM)) ) . Investors are betting that a better offer will emerge now that Cogent has expressed a willingness to be bought. By my math, 3M is getting Cogent on the cheap, and Cogent might fetch a higher offer. [Read [how David identified Cogent as a "Deep Value" stock before 3M's buyout offer](http://www.streetauthority.com/node/456491) .] But it's unclear if such an offer will emerge. If it doesn't, then shares will soon fall back below the $10.50 offer price. (Buyout prices often reflect a small discount to the offer to account for the small chance that a deal falls through).Playing it safe doesn't always pay off. In the case of 3PAR, investors might have looked to book profits when Dell (Nasdaq: DELL) offered to buy the company for $18 a share and the stock immediately zoomed to that price. A bidding war ultimately ensued, pushing shares to $27. That scenario was highly unusual, but you can make an argument for sticking around for at least a few days, as there was little risk that shares would fall much below that $18 offer. [Read: [This Company's 10-Day, +169% Run is Heating up an Entire Sector](http://www.streetauthority.com/node/456487) ]Rumors = profits But what should you do when rumors push a stock up sharply? Shares of Saks ([SKS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SKS&selected=SKS)) ) are up nearly +25% on Tuesday to $8.25 on rumors of a potential buyout. Trouble is, rumors are often put out there by traders looking to "pump and dump" a stock. The Saks situation is a bit tricky because the rumored price is $11 a share, sharply higher than current levels. In this instance, the rumors have more merit as they are being disseminated by a legitimate media organization -- The U.K.'s Daily Mail. But if these rumors had emanated from Wall Street's trading floors, then investors would be smart to sell as quickly as possible, as these deals rarely ever actually materialize.Even as shares of Saks may have more upside if a deal materializes, it would be foolish to commit fresh money. There's a reason why shares are stuck well below that potential price: hundreds of investors have done the math and concluded that the risk and reward are in balance as to whether a deal happens. Unless you possess inside information (which you shouldn't), then you have no greater insight as to how this plays out compared to the rest of the crowd. Action to Take --> You can't ignore this M&A frenzy, as it is likely to continue into the Fall. Cash-rich firms, especially in the area of high-tech, need deals in order to get back into growth mode. Yet as I've written before, it's unwise to try to buy stocks you think may be good buyout candidates -- as the vast majority of buyout rumors never come to fruition.But it is wise to consider whether a stock is very undervalued in a consolidating industry in the context of a broader investment analysis. For example, I think that CommVault (Nasdaq: CVLT) , Micron Technology ([MU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MU&selected=MU)) ), Blue Coat Systems (Nasdaq: BCSI), Integrated Silicon (Nasdaq: ISSI) and Tellabs (Nasdaq: TLAB) are all reasonably-priced, have strong customer bases, and toil in industries that are currently seeing a good amount of deal-making. I'd buy those stocks on their fundamentals. Any buyout offer would be icing on the cake. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 27.6778 Stock Price 2 days before: 31.8578 Stock Price 1 day before: 31.8739 Stock Price at release: 31.5438 Risk-Free Rate at release: 0.0016	0
Symbol: PAR Security: PAR Technology Corporation Related Stocks/Topics: DELL\|Markets\|NTAP\|HPQ Title: Why Are Dell and HP Fighting Over 3Par? Type: News Publication: Trefis Team Publication Author: Unknown Date: 2010-09-01 01:58:00 Article: Dell ([DELL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DELL&selected=DELL)) ) and Hewlett-Packard ([HPQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HPQ&selected=HPQ)) ) are mired in a bidding war over 3Par ([PAR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PAR&selected=PAR)) ), a leading provider of utility storage solutions for enterprises.Although the winner of this war will undoubtedly pay a heavy premium for 3Par, we think the deal could benefit either company handsomely in the long run. Our analysis follows below. Utility storage primer Utility storage is a category of data storage systems designed for utility computing, a form of information technology in which storage and computation are delivered as a metered service, rather like a power utility. 3Par's unique storage technology powers so-called virtual data centers for mid-sized to large enterprises, including financial service firms, government entities, hosted computing providers, and consumer-oriented Internet companies.3Par's value proposition is based on the premise that unused storage is wasteful. Conventional data centers typically use just 10% to 25% of allocated disk space. By contrast, 3Par's technology allocates disk space only when applications need storage capacity, reducing the total cost of storage by up to 50% according to the company.As more enterprises shut down their in-house data centers and turn to on-demand storage and computing services delivered via the Internet, their storage needs become more variable and less predictable. This makes 3Par a great fit for the cloud computing era, which helps explain why HP and Dell are competing so fiercely to acquire the company's proprietary technology. Why are Dell & HP chasing 3Par?In revenue terms, Dell currently holds 12.7% of the total disk storage systems market. HP's share is 18%. In recent years, both companies have increased their storage market share via acquisitions. But they still trail industry leaders EMC ([EMC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EMC&selected=EMC)) ) and NetApp ([NTAP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NTAP&selected=NTAP)) ) in the fast-growing market for so-called open networked disk storage, a technology that links data storage devices over the Internet.Corporate data storage requirements have doubled every 18 months in recent years, and we expect this trend to continue going forward. We expect the open networked disk storage market to grow at an even faster pace. 3Par's revenues have grown at an annualized rate of 67% over the past five years, reaching $185 million in 2009. Our conservative estimate is that the acquisition could boost Dell or HP's storage revenues by $400 million in 2011, rising to $2 billion by the end of the Trefis forecast period.You can drag the trend-lines in the charts below to create your own storage revenue forecasts for Dell and HP, respectively, and see how they impact the stock prices for both companies. Is 3Par worth $2 billion?Dell opened the bidding for 3Par on August 16, offering $18 per share. By Wednesday, September 1, HP was offering $30 a share to acquire 3Par, or $2 billion. Dell had until midnight Wednesday to match this bid, but the deadline passed with no word from Dell.On Thursday morning, September 2, HP raised its bid to $33 a share, valuing 3Par at about $2.4 billion. In a [press release](http://ir.3par.com/phoenix.zhtml?c=214779&p=irol-newsArticle&ID=1466367&highlight=) , 3Par announced that it considered this offer "superior" to Dell's latest bid of $32 a share and that it intended to dissolve the original merger agreement with Dell.$2.4 billion is a lot of money to pay for a company that posted $185 million in revenues last year. However, we think the valuation may be justified. Here's why: By acquiring 3Par, Dell or HP will be able to sell packaged products based around the company's storage solution. This will boost revenues of other divisions, like services and software. We did not factor this multiplier effect into our analysis above, which is why our revenue estimate might be conservative.3Par's technology is unique. If either HP or Dell fails to acquire 3Par, it will need to duplicate the technology from scratch, incurring heavy R&D costs and potential loss of share in the emerging utility storage market. You can see [our complete $17.04 stock price estimate for Dell here.](https://www.trefis.com/company?hm=DELL.trefis&hk=1006da265afc7e177650452c1c5a0835dda14fec&)You can see [our complete $54.12 stock price estimate for Hewlett-Packard here.](https://www.trefis.com/company?hm=HPQ.trefis&hk=7dfdd1a88bdb234566ee81e4365b20930f9faa11&) [Sponsored Links](https://popup.taboola.com/en/?template=colorbox&utm_source=nasdaq-nasdaq&utm_medium=referral&utm_content=thumbnails-a-mid:Mid%20Article%20Thumbnails:) [Sponsored Links](https://popup.taboola.com/en/?template=colorbox&utm_source=nasdaq-nasdaq&utm_medium=referral&utm_content=thumbnails-a-mid:Mid%20Article%20Thumbnails:)[Promoted Links](https://popup.taboola.com/en/?template=colorbox&utm_source=nasdaq-nasdaq&utm_medium=referral&utm_content=thumbnails-a-mid:Mid%20Article%20Thumbnails:) [Promoted Links](https://popup.taboola.com/en/?template=colorbox&utm_source=nasdaq-nasdaq&utm_medium=referral&utm_content=thumbnails-a-mid:Mid%20Article%20Thumbnails:)[](http://www.mnbasd77.com/aff_c?offer_id=2904&aff_id=2679&source=Bul&aff_sub=41581344&aff_sub2=nasdaq-nasdaq-1291813&aff_sub3=3974017124_Name&utm_source=taboola&utm_medium=referral&aff_sub5=GiC43KMKJ41gtSXQpXF0K9bSnHSLbQHHZnraLymxZG_-LiDq7l0oy8zcyv_-_KgeMKXsTg&aff_sub4=gp_h&tblci=GiC43KMKJ41gtSXQpXF0K9bSnHSLbQHHZnraLymxZG_-LiDq7l0oy8zcyv_-_KgeMKXsTg#tblciGiC43KMKJ41gtSXQpXF0K9bSnHSLbQHHZnraLymxZG_-LiDq7l0oy8zcyv_-_KgeMKXsTg) [How Much Do Roofing Services Cost In 2024? 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Symbol: HOV Security: Hovnanian Enterprises, Inc. Related Stocks/Topics: CBOE\|Markets\|CHRS Title: Opening View: DJIA Could Start September Fresh after Worst August Since 2001 Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-09-01 07:54:00 Article: The Dow Jones Industrial Average (DJIA) closed out its worst August since 2001 with a huff on Tuesday, as traders appeared reluctant to take a firm stand ahead of this week's employment data. For the month, the DJIA plunged 4.3%, while the S&P 500 Index (SPX) dropped 4.7% in August. However, bolstered by stronger-than-expected economic data out of China and Australia, Wall Street appears ready to turn over a new leaf this morning, as futures on the DJIA and the SPX are trading roughly 91 points and 12 points above fair value, respectively. Keep in mind that the ADP private sector employment report is slated for release later this morning, so be prepared for Wall Street's reaction to the news. Checking the levels, the DJIA has support at 10,000 and 9,950, while resistance lingers overhead in the 10,100 area. As for the SPX, support resides at 1,040, while resistance appears to be growing in the 1,060 region.In equity news, Joy Global Inc. ([JOYG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JOYG&selected=JOYG)) ) reported a third-quarter net profit of $118.5 million, or $1.13 per share, as revenue fell 11% to $850 million. Analysts were expecting earnings of $1.02 per share on sales of $879 million. The company lifted its 2010 earnings forecast to a range of $4.10 to $4.15 per share, from its previous target range of $3.85 to $4 per share. Analysts had been expecting earnings of $4 per share for the year. Finally, H.J. Heinz Co. ([HNZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HNZ&selected=HNZ)) ) reported first-quarter earnings of $240.4 million, or 75 cents per share, as revenue rose 1.6% to $2.48 billion. Analysts expected a profit of 73 cents per share on revenue of $2.53 billion. Looking ahead, the company projected earnings growth of 7%-10% for fiscal 2011. Earnings Preview On the earnings front, Charming Shoppes Inc. ([CHRS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CHRS&selected=CHRS)) ), Collective Brands Inc. ([PSS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PSS&selected=PSS)) ), and Hovnanian Enterprises Inc. ([HOV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HOV&selected=HOV)) ) will release their quarterly earnings reports today. Keep your browser at [SchaeffersResearch.com](http://www.schaeffersresearch.com/) for more news as it breaks. Economic Calendar The ADP report on private sector job growth in August kicks off three days of employment data later this morning. Also slated for release today are the Institute for Supply Management's ([ISM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ISM&selected=ISM)) ) manufacturing index for August, the July construction spending report for July, and August's auto sales. We'll get the weekly report on new jobless claims on Thursday, along with July reports on factory orders and pending home sales. The hammer drops on Friday with the Labor Department's numbers on nonfarm payrolls and the unemployment rate in August. The ISM will also release its services index for August. Market Statistics Equity option activity on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) saw 810,628 call contracts traded on Tuesday, compared to 602,813 put contracts. The resultant single-session put/call ratio arrived at 0.74, while the 21-day moving average rose to 0.64. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100901ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100901ov2.gif)The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher. [Dow, S&P and Nasdaq futures](http://www.schaeffersresearch.com/images/commentary/2010/100901ov3.gif) [Click here for the new summer issue of SENTIMENT magazine](http://www.schaeffersresearch.com/redirect.aspx?CODE=SIRMAG10HGENERAL&PAGE=1)Overseas Trading Overseas trading looks solid this morning, as nine of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a gain of 1.08%. In Asia, stocks started September on a positive note, with traders bolstered by stronger manufacturing data out of China. Specifically, China's official purchasing managers' index rose to 51.7 in August from 51.2 in July. Meanwhile, Australia's gross domestic product rose by a better-than-expected 1.2% in the second quarter. The reports have had a buoying effect in Europe as well, with stocks trading broadly higher early in the session, with miners and financials taking the lead. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100901ov4.gif)Currencies and Commodities With traders moving back into the equities market following strong economic data out of China, the U.S. dollar has lost some of its safe haven appeal this morning. At last check, the U.S. Dollar Index was down 0.77% at 82.56. Commodities are taking advantage of the weaker dollar, with crude futures up 57 cents at $72.49, while gold has added $4.40 to trade at $1,254.70 and ounce in London. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100901ov5.gif)**Unusual Put and Call Activity:For an explanation of how to use this information, check out our [Education Center](http://www.schaeffersresearch.com/schaeffersu/) topics on [Option Volume](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?ID=220#220) and [Open Interest Configurations](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?id=221) . [Unusual options activity - puts](http://www.schaeffersresearch.com/images/commentary/2010/100901ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100901ov7.gif) Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up [here](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=O&CODE=SIRG07D)** for free daily delivery, straight to your inbox, before the opening bell. All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 3.66244 Stock Price 2 days before: 3.66077 Stock Price 1 day before: 3.49349 Stock Price at release: 3.50224 Risk-Free Rate at release: 0.0016	3.94439
Symbol: AMSC Security: American Superconductor Corporation Related Stocks/Topics: Markets\|WMT\|FSLR Title: 3 Stocks to Green Up Your Portfolio Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-09-01 11:14:00 Article: Investing in clean energy takes a very strong stomach. Share prices in this sector continually soar and plunge depending on whether investors are feeling optimistic or pessimistic. Although the industry may never live up to the grandest hopes that some had expected, it is clearly emerging as a viable business with real profits and likely moderate long-term sales growth rates.Poring over the dozens of publicly-traded companies in this sector, I took a fresh look at three names that had been considered future industry leaders, but now see their shares trade quite far from their 52-week highs. Here's a deeper look: American Superconductor (Nasdaq: AMSC)This company was founded more than 20 years ago to develop cables that could carry high volumes of electricity. But those cables were quite expensive and few utilities were willing to make heavy investments in the technology. So management shifted gears early last decade and moved into the wind business, acquiring a small developer of wind turbines and related electronics. That move proved quite prescient. Annual sales, which had been stuck in the $40-$50 million range in the middle of the past decade now exceed $300 million. And after years of losses, American Superconductor finally turned a profit last year.Much of the company's growth is coming from a massive supply agreement with China's Sinovel, one of the world's largest builders of wind farms. Concerns often arise that Sinovel's demand will peter out, but the company continues to renew its contract with American Superconductor (Sinovel signed on for another $445 million long-term deal with American Superconductor in mid-May). It's important to remember that China's plans for clean energy are only getting started, and spending should remain robust for quite some time as the country's electricity needs to continue to soar.Yet a curious disconnect has emerged. Even as American Superconductor tops estimates every quarter and analysts steadily boost their forecasts, the company's stock steadily drifts lower. After moving past $40 early this year, shares now trade below $27. Despite that downward move, investors should know that this is still very much a growth story. Sales and profits should rise at least +30% this year and another +20% in fiscal (March) 2012. Shares now trade for a very reasonable 17 times projected 2012 [earnings](http://investinganswers.com/term/earnings-1514) . A-Power Energy (Nasdaq: APWR)This company has vexed even its most bullish supporters. The China-based supplier of wind turbines and energy distribution systems always manages to boost annual sales at an impressive clip, but quarterly results are far more erratic. In some quarters, sales greatly exceed forecasts while profits lag, while in other quarters the opposite is true. In recent quarters, profits have lagged, and analysts have been lowering their earnings forecasts. Many investors have simply given up, as the erratic quarterly performances lend the impression that management doesn't have a handle on the business.Of additional concern, the company consumes huge wads of money on its capital-intensive projects, which is hampering [free cash flow](http://investinganswers.com/term/free-cash-flow-1000) . But as those investments are completed, free cash flow should increase nicely. In the near-term, investors should stick with traditional [GAAP](http://investinganswers.com/term/generally-accepted-accounting-principles-gaap-992) earnings as a measure of the company's value. And those above-cited concerns, legitimate as they are, overshadow a compellingly valued stock. Shares have sharply fallen in each of the past four trading sessions and now trade for about five times next year's GAAP profits. SunPower (Nasdaq: SPWRA)This company, along with First Solar (Nasdaq: FSLR) had perennially been considered to be one of the strongest solar power companies, thanks to a strong technology base, a deep set of customers and ample manufacturing capacity.Sunpower's primary focus is on large installations, such as on the roofs of Walmart ([WMT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WMT&selected=WMT)) ) stores. And based on its technology roadmap, the company's competitive position should only get stronger in this market. That's because Sunpower's solar power panels will soon convert 23% of the sun's energy into electricity, which is roughly 20% to 30% better than past energy conversion ratios. That means customers will reap an even greater payback on their investment and reduce the break-even time on what is a costly investment.But shares are off sharply this year as it has become increasingly evident that the company's [business model](http://investinganswers.com/term/business-model-584) is not yet helping to generate cash. SunPower has generated negative free cash flow in every year of its history (even though the company is profitable on a GAAP basis). Making matters worse, [EPS](http://investinganswers.com/term/earnings-share-eps-1003) in the March and June quarters was fairly weak and should be again in the current quarter before an expected massive profit spike in the fourth quarter as the company is finally able to recognize revenue from some large projects.Yet you can make a case that shares have found a floor as they trade right at tangible [book value](http://investinganswers.com/term/book-value-1080) . And even if free cash flow is wanting, operating [cash flow](http://investinganswers.com/term/cash-flow-1175) is fairly healthy -- and shares trade for just six times projected 2010 operating cash flow. [Backlog](http://investinganswers.com/term/backlog-866) is fairly high, which should lead to strong sales and profit growth in 2011.SunPower is clearly a "show-me" stock. Investors need to see more impressive bottom-line results and a path toward rising free cash flow. Management insists these trends will start to be in evidence later this year. If so, shares should move up nicely from their lows, especially since the stock is very heavily shorted, and short-covering would boost buying pressure on the stock. Action to Take --> American Superconductor remains one of the strongest operators in the field, and it's unclear why its shares have fallen out of favor. As investors renew their affection for growth stocks, this high-growth name should move back into favor.As for A-Power, investors should simply expect erratic short-term quarterly results and focus on the long-term. The company is emerging as a leading provider of clean energy technologies in China and elsewhere. The Chinese government is throwing big bucks in support of clean energy and favors domestic suppliers. A-Power still looks like a great way to play that market, and shares are quite cheap.SunPower has had major growing pains, but still looks poised for a string of sales growth, and eventually rising cash flow.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.-- David StermanDavid Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More... Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 27.9754 Stock Price 2 days before: 27.2917 Stock Price 1 day before: 27.2666 Stock Price at release: 27.9809 Risk-Free Rate at release: 0.0016	31.2668
Symbol: GCI Security: Gannett Co., Inc. Related Stocks/Topics: INT\|Markets\|DLTR Title: Stocks the Big Guys Like Type: News Publication: Validea Publication Author: Unknown Date: 2010-09-01 11:14:00 Article: It's no secret that individual investors have been taking big chunks of money out of stocks since the market turned downward in late April -- according to the Investment Company Institute, investors removed a net of more than $46 billion from U.S. equity mutual funds from the beginning of May through mid-August. (Mutual fund flows serve as a pretty good proxy for individual investors; at the end of 2009, more than 91% of U.S. equity mutual fund assets belonged to individual investors, according to ICI.) Interestingly, however, individual investors as a group weren't even all that keen on stocks during the big rally that began in March 2009. In fact, investors collectively were net sellers of U.S. equity funds from the beginning of April 2009 through April 2010, pulling a net of about $6.8 billion from the funds, according to ICI's data. During the same period, the S&P 500 was gaining almost 50%. Those numbers indicate that institutional investors -- hedge funds, endowments, etc. -- led the rally that followed the deep bear market of 2007-09. And institutions have continued to buy stocks this summer while the market has struggled. According to the research group Lipper, institutional investors added more than $13 billion to world equity funds in June and July while many individual investors were running from stocks.It's no surprise, really. The bear market that accompanied the 2008 financial crisis and "Great Recession" was one of the harshest in the U.S.'s history. Given the depth of the bear and the pain it caused, it's to be expected that individual investors would remain skittish for a lengthy period, even after the market bounced back. Institutional investors, meanwhile -- either because they are required to have a certain amount of their portfolio in stocks, or because they have more experience in dealing with major market turbulence -- should be more likely to buy up shares amid lingering fear.While the skepticism of individual investors has hurt the market in the past year or two, the silver lining is that there should be plenty of fresh powder left to spark future rallies when average investors finally are ready to dive back into stocks. When that will happen, of course, is anyone's guess.In the meantime, there's certainly a decent chance that institutional investors will continue to have a greater-than-usual impact on stocks. With that in mind, I thought I'd look to see which stocks that get approval from my Guru Strategies -- each of which is based on the approach of a different investing great -- are getting a lot of love from institutions these days. Here are a few that make the grade. Gannett Co., Inc. ([GCI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GCI&selected=GCI)) ): This Virginia-based media giant publishes more than 80 daily U.S. newspapers, including USA Today, and more than 650 magazines and non-dailies. It also operates numerous television stations, and a variety of web sites. About 99.3% of its shares are owned by institutions -- far more than competitors like News Corporation (5.2%) and New York Times Company (70.8%). (All ownership figures are from Morningstar.) With the world of print media struggling to adjust to the Internet age, stocks like Gannett have really struggled in recent years. But my David Dreman-based contrarian model, which targets strong firms whose shares have been beaten down because of fear or apathy, thinks Gannett's a diamond in the rough. The model considers Gannett a contrarian pick because both its price/earnings and price/cash flow ratios fall into the market's bottom 20%. But while investors are avoiding it, my Dreman-based approach sees a lot to like about Gannett, including its 31.1% return on equity, 13.7% pre-tax profit margins, and the fact that it upped earnings per share from $0.48 in the first quarter to $0.72 in the second quarter. World Fuel Services Corp. ([INT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INT&selected=INT)) ): Based in Miami, World Fuel provides fuel and services to aircraft, petroleum distributors, and ships at more than 2,500 locations around the world. It has a market cap of just $1.5 billion, but has taken in more than $15 billion in sales in the past year. Institutions own almost 99% of its shares.World Fuel gets approval from two of my models. My Peter Lynch-based model considers the stock a "fast-grower" -- Lynch's favorite type of investment -- because of its impressive 24.4% long-term growth rate. (I use an average of the three-, four-, and five-year EPS growth rates to determine a long-term rate.) Lynch famously used the P/E/Growth ratio (which divides a stock's price/earnings ratio by its growth rate) to find good stocks selling on the cheap, and the model I base on his writings likes P/E/Gs below 1.0. When we divide World Fuel's 11.5 P/E (using trailing 12-month earnings) by its growth rate, we get a P/E/G of just 0.47. This model also likes World Fuel's 1.37% debt/equity ratio.My James O'Shaughnessy-based growth model, meanwhile, looks for firms that have upped EPS in each year of the past five-year period, and World Fuel fits the bill. The model also likes World Fuel's 67 relative strength (a sign it's being embraced by the market) and 0.1 price/sales ratio (a sign it hasn't gotten too pricey). Dollar Tree, Inc. ([DLTR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DLTR&selected=DLTR)) ): Based in Virginia, Dollar Tree's stores offer a wide variety of discount merchandise, ranging from food items to household goods to toys to lawn- and garden-related items. Institutions own more than 97% of its shares.Dollar Tree gets approval from the same tandem of strategies that like World Fuel. My Lynch-based model likes the fast-grower's (21.2% long-term EPS growth rate) 0.81 P/E/G ratio and 19.3% debt/equity ratio. The O'Shaughnessy growth model likes its seven straight years of increasing EPS, as well as its 1.04 price/sales ratio and 81 relative strength.Disclosure: I'm long DLTR. Stock Price 4 days before: 12.3316 Stock Price 2 days before: 12.4451 Stock Price 1 day before: 12.2039 Stock Price at release: 12.7158 Risk-Free Rate at release: 0.0016	12.3903

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