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Symbol: PAR
Security: PAR Technology Corporation
Related Stocks/Topics: DELL|Personal Finance|HPQ
Title: H-P looks poised to win 3Par
Type: News
Publication: NASDAQ.com News
Publication Author: Unknown
Date: 2010-09-02 01:36:00
Article: Hewlett-Packard ([HPQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HPQ&selected=HPQ)) ) and Dell ([DELL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DELL&selected=DELL)) ) have been locked in a battle for storage-software company 3Par ([PAR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PAR&selected=PAR)) ) for the last three weeks, but it looks as though the latter is conceding to the former.H-P bid $33 for each share of 3Par Thursday, and Dell indicated that it wouldn't make a higher offer. The move all but gives H-P the win - a surprising twist in what has become one of the most closely watched takeover fights in recent memory. Dell was the first to make a bid for 3Par, which produces software that helps companies manage their data more effectively. Its initial bid was for $1.15 billion; H-P quickly countered with a higher offer. The two tech giants volleyed ever-higher offers back and forth, but H-P's $33-a-share bid - which values 3Par at $2.4 billion - appears to have put an end to the game.Why did the battle reach such a fever pitch? 3Par is the last independent storage-software company - and it would be a valuable part of either Dell or H-P's portfolio. Also contributing to the frenzy was the wider merger and acquisition market: Last month saw $286 billion in M&A deals, the most since July 2008.It was the busiest August for M&A on record.By Benjamin Foster
Stock Price 4 days before: 31.8578
Stock Price 2 days before: 31.5418
Stock Price 1 day before: 31.8986
Stock Price at release: 31.3994
Risk-Free Rate at release: 0.0015
| 0 |
Symbol: DIN
Security: Dine Brands Global, Inc.
Related Stocks/Topics: DENN|Markets|CMG|YUM|WEN|MCD
Title: After Burger King's Buyout, Who's Next?
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-09-02 03:39:00
Article: With a deal in place to acquire **Burger King ([BKC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BKC&selected=BKC)) )** for a tidy $24 a share, investors are handed the opportunity to quickly assess how its rivals are valued. Any rivals selling at a sharp discount to Burger King's price are likely to see renewed investor interest as the M&A action heats up in the sector.[Read: [How Investors Should Handle the M&A Frenzy](http://www.streetauthority.com/node/456510) ] Private equity (PE) firms like to buy underperforming companies. In recent years, Burger King has seen **McDonald's ([MCD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MCD&selected=MCD)) )** and **Yum Brands ([YUM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=YUM&selected=YUM)) )** pull away in terms of same-store sales growth and sharply rising [cash flow](http://investinganswers.com/term/cash-flow-1175) . Those companies are likely too large and too healthy to be of real interest to these [turnaround](http://investinganswers.com/term/turnaround-888) specialists. For that matter, **Chipotle Mexican Grill ([CMG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CMG&selected=CMG)) )** is far too healthy -- and richly valued -- to hold any appeal. [ [More on Chipotle -- and why you should short it](http://www.streetauthority.com/node/456515) ]So I decided to take a look at three major chains that are underperforming and have major room for improvement. **A fair deal** Burger King is being acquired for about 11 times trailing cash flow -- a fair multiple when you offset the company's strong brand, yet slightly weaker operating metrics than rival McDonald's, which trades for about 13 times trailing cash flow. The [buyout](http://investinganswers.com/term/buyout-949) is a bit unusual in that Burger King is not in distress and performing only slightly below expectations.Rival **Wendy's/Arby's Group ([WEN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WEN&selected=WEN)) )** has often been considered the most logical buyout candidate, thanks to its very weak results in terms of gross and operating profit margins. Wendy's has been a moderate underperformer while Arby's has been a severe underperformer. Presumably, a PE firm could come in and shake things up to bring the Wendy's and Arby's chains up to snuff. The trouble with that logic is that Nelson Peltz, a major shareholder, has already been working diligently to improve results without any success. PE firms may question whether they can do any better.But if Wendy's/Arby's could once again operate as well as its peers, then shares would be quite undervalued at these levels. As the table below notes, Wendy's [enterprise value](http://investinganswers.com/term/enterprise-value-806) is less than its annual sales (or said another way, the shares have an EV/sales ratio below one), while McDonald's trades for more than four times sales and Burger King trades for about 1.5 times sales. That gap is explained away by profit margins. If Wendy's/Arby's could boost margins up to the peer group, then every dollar of sales it generates would be more highly valued by investors (pushing up the EV/sales ratio). **The cheapest stock in the group** Perhaps the real bargain for PE firms would be **Denny's (Nasdaq: DENN)** , which I recently recommended. [Read: [Five Beaten-Down Stocks with +100% Upside Potential](http://www.streetauthority.com/node/456415) ]Shares are out of favor right now thanks to a severe contraction in sales. Sales should stabilize by year-end, but even at these depressed levels, Denny's profit metrics appear solid. Gross and operating profit margins are on par with Burger King and would likely be nicely higher if and when sales rebound. Most importantly, shares trade for less than seven times EBITDA, on an enterprise value basis. PE firms can presume that EBITDA can rise sharply as the [economy](http://investinganswers.com/term/economy-1517) improves, so they can offer to pay up to nine or 10 times trailing EBITDA under the assumption that the forward EBITDA multiples would be well lower.As I noted in my recommendation of Denny's a few weeks ago, shares likely have significant upside down the road, so it's unclear that a PE firm would be able to get shares below $4. Then again, they may not be inclined to pay above that figure in light of the still-slumping sales. So Denny's may not come into play until results start to stabilize and turn up. **A turnaround play****DineEquity ([DIN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DIN&selected=DIN)) )** , which operate the Applebee's and International House of Pancakes (IHOP) franchises, is not seen as a clear rival to the burger chains. But like Burger King, it is seen as a typical PE target and that's helping push shares up +7% on Thursday. DineEquity throws off large amounts of cash flow, which PE firms love to see when they look to load up their targets with debt.The company is already sitting on more than $1.6 billion in debt, so there are limits to how much more debt it can take on, but annual free cash flow of more than $100 million compared to a [market value](http://investinganswers.com/term/market-value-779) of around $600 million implies that a PE firm could pay a +20% to +30% premium for DineEquity, keep it private for three or four years while paying off some debt with that free cash flow and then bring those restaurant chains public again once sales are on the upswing and investors see them as growth vehicles. **Action to Take -->** Wendy's/Arby's has acknowledged receiving buyout interest in the recent past, though it's unclear that any PE firm could swoop in while Nelson Peltz is in control. If there is a PE value to be unlocked, he's got first dibs, though he has yet to make any such move in that direction. Denny's looks like the most clear-cut acquisition candidate, and as soon as sales stabilize, perhaps in a quarter or two, then shares could heat 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. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
Stock Price 4 days before: 33.1637
Stock Price 2 days before: 32.4425
Stock Price 1 day before: 32.62
Stock Price at release: 33.9749
Risk-Free Rate at release: 0.0015
| 44.9155 |
Symbol: DENN
Security: Denny's Corporation
Related Stocks/Topics: Unknown
Title: After Burger King's Buyout, Who's Next?
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-09-02 03:39:00
Article: With a deal in place to acquire **Burger King ([BKC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BKC&selected=BKC)) )** for a tidy $24 a share, investors are handed the opportunity to quickly assess how its rivals are valued. Any rivals selling at a sharp discount to Burger King's price are likely to see renewed investor interest as the M&A action heats up in the sector.[Read: [How Investors Should Handle the M&A Frenzy](http://www.streetauthority.com/node/456510) ] Private equity (PE) firms like to buy underperforming companies. In recent years, Burger King has seen **McDonald's ([MCD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MCD&selected=MCD)) )** and **Yum Brands ([YUM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=YUM&selected=YUM)) )** pull away in terms of same-store sales growth and sharply rising [cash flow](http://investinganswers.com/term/cash-flow-1175) . Those companies are likely too large and too healthy to be of real interest to these [turnaround](http://investinganswers.com/term/turnaround-888) specialists. For that matter, **Chipotle Mexican Grill ([CMG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CMG&selected=CMG)) )** is far too healthy -- and richly valued -- to hold any appeal. [ [More on Chipotle -- and why you should short it](http://www.streetauthority.com/node/456515) ]So I decided to take a look at three major chains that are underperforming and have major room for improvement. **A fair deal** Burger King is being acquired for about 11 times trailing cash flow -- a fair multiple when you offset the company's strong brand, yet slightly weaker operating metrics than rival McDonald's, which trades for about 13 times trailing cash flow. The [buyout](http://investinganswers.com/term/buyout-949) is a bit unusual in that Burger King is not in distress and performing only slightly below expectations.Rival **Wendy's/Arby's Group ([WEN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WEN&selected=WEN)) )** has often been considered the most logical buyout candidate, thanks to its very weak results in terms of gross and operating profit margins. Wendy's has been a moderate underperformer while Arby's has been a severe underperformer. Presumably, a PE firm could come in and shake things up to bring the Wendy's and Arby's chains up to snuff. The trouble with that logic is that Nelson Peltz, a major shareholder, has already been working diligently to improve results without any success. PE firms may question whether they can do any better.But if Wendy's/Arby's could once again operate as well as its peers, then shares would be quite undervalued at these levels. As the table below notes, Wendy's [enterprise value](http://investinganswers.com/term/enterprise-value-806) is less than its annual sales (or said another way, the shares have an EV/sales ratio below one), while McDonald's trades for more than four times sales and Burger King trades for about 1.5 times sales. That gap is explained away by profit margins. If Wendy's/Arby's could boost margins up to the peer group, then every dollar of sales it generates would be more highly valued by investors (pushing up the EV/sales ratio). **The cheapest stock in the group** Perhaps the real bargain for PE firms would be **Denny's (Nasdaq: DENN)** , which I recently recommended. [Read: [Five Beaten-Down Stocks with +100% Upside Potential](http://www.streetauthority.com/node/456415) ]Shares are out of favor right now thanks to a severe contraction in sales. Sales should stabilize by year-end, but even at these depressed levels, Denny's profit metrics appear solid. Gross and operating profit margins are on par with Burger King and would likely be nicely higher if and when sales rebound. Most importantly, shares trade for less than seven times EBITDA, on an enterprise value basis. PE firms can presume that EBITDA can rise sharply as the [economy](http://investinganswers.com/term/economy-1517) improves, so they can offer to pay up to nine or 10 times trailing EBITDA under the assumption that the forward EBITDA multiples would be well lower.As I noted in my recommendation of Denny's a few weeks ago, shares likely have significant upside down the road, so it's unclear that a PE firm would be able to get shares below $4. Then again, they may not be inclined to pay above that figure in light of the still-slumping sales. So Denny's may not come into play until results start to stabilize and turn up. **A turnaround play****DineEquity ([DIN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DIN&selected=DIN)) )** , which operate the Applebee's and International House of Pancakes (IHOP) franchises, is not seen as a clear rival to the burger chains. But like Burger King, it is seen as a typical PE target and that's helping push shares up +7% on Thursday. DineEquity throws off large amounts of cash flow, which PE firms love to see when they look to load up their targets with debt.The company is already sitting on more than $1.6 billion in debt, so there are limits to how much more debt it can take on, but annual free cash flow of more than $100 million compared to a [market value](http://investinganswers.com/term/market-value-779) of around $600 million implies that a PE firm could pay a +20% to +30% premium for DineEquity, keep it private for three or four years while paying off some debt with that free cash flow and then bring those restaurant chains public again once sales are on the upswing and investors see them as growth vehicles. **Action to Take -->** Wendy's/Arby's has acknowledged receiving buyout interest in the recent past, though it's unclear that any PE firm could swoop in while Nelson Peltz is in control. If there is a PE value to be unlocked, he's got first dibs, though he has yet to make any such move in that direction. Denny's looks like the most clear-cut acquisition candidate, and as soon as sales stabilize, perhaps in a quarter or two, then shares could heat 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. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
Stock Price 4 days before: 2.48159
Stock Price 2 days before: 2.3907
Stock Price 1 day before: 2.42337
Stock Price at release: 2.653
Risk-Free Rate at release: 0.0015
| 3.17969 |
Symbol: HOV
Security: Hovnanian Enterprises, Inc.
Related Stocks/Topics: CBOE|Markets|HRB
Title: Opening View: DJIA Bulls Fatigued Ahead of Fresh Round of Jobs Data
Type: News
Publication: Schaeffer
Publication Author: Unknown
Date: 2010-09-02 07:54:00
Article: The Dow Jones Industrial Average (DJIA) soared 255 points on Wednesday, logging its best day since July 7 as hopes for a global economic recovery rose. Wall Street is carrying that positive bias over into the open this morning, even as traders prepare for the next wave of U.S. employment data and a look at July factory orders and new home sales. Ahead of these reports, futures on the DJIA and the S&P 500 Index (SPX) are trading 25 points and 2 points above fair value, respectively. The Dow comes into today trading back above support in the 10,250 region and its 50-day moving average. More stalwart support lies in the 10,150-10,100 region, while resistance could materialize near 10,350. As for the SPX, the index is currently capped by its 20-day and 50-day moving averages, with additional resistance in the 1,085 region. Support, meanwhile, lies in the 1,070 region.In equity news, Hovnanian Enterprises ([HOV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HOV&selected=HOV)) ) reported a narrower third-quarter loss of $72.9 million, or 92 cents per share, as revenue fell to $380.6 million. Analysts had forecast a loss of 47 cents per share on revenue of $396.1 million. Home-building gross margin, before interest expenses included in the cost of sales, rose 17.1% compared with 9.1% increase a year ago. Elsewhere, Vimpelcom Ltd. ([VIP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VIP&selected=VIP)) ) posted a net second-quarter profit of $334.7 million, or 28 cents per share, as revenue rose 23% to $2.64 billion. Wall Street was looking for a profit of $376 million and revenue of $2.60 billion. **Earnings Preview** On the earnings front, Del Monte Foods Co. ([DLM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DLM&selected=DLM)) ) and H&R Block Inc. ([HRB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HRB&selected=HRB)) ) 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 weekly report on new jobless claims arrives today, along with July reports on factory orders and pending home sales. The hammer drops tomorrow, with the Labor Department's numbers on nonfarm payrolls and the unemployment rate in August. The Institute of Supply Management ([ISM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ISM&selected=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 1,223,245 call contracts traded on Wednesday, compared to 597,648 put contracts. The resultant single-session put/call ratio arrived at 0.49, while the 21-day moving average slipped to 0.63. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100902ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100902ov2.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/2010/100902ov3.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 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 0.43%. In Asia, regional indexes were spurred higher by strong gains on Wall Street and a surprise rise in the U.S. Institute for Supply Management's manufacturing index. Exporters in Japan helped lead the way higher, as the yen pulled back versus the U.S. dollar. However, European markets are headed lower this morning, as traders take profits ahead of key U.S. employment data. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100902ov4.gif)**Currencies and Commodities** With another round of economic data on tap later today, currencies and commodities traders are playing it safe. The U.S. Dollar Index has inched 0.15% lower to 82.40, as yesterday's appetite for risk has yet to fully abate. Meanwhile, crude futures have slipped 23 cents to $73.68 per barrel, with traders concerned about a potential rise in weekly initial jobless claims. Finally, gold futures are little changed, rising $1.10 to $1,249.20 an ounce in London. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100902ov5.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/2010/100902ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100902ov7.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: 3.66414
Stock Price 2 days before: 3.49349
Stock Price 1 day before: 3.50224
Stock Price at release: 3.72305
Risk-Free Rate at release: 0.0015
| 3.89295 |
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: 2010-09-02 08:36:00
Article: Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) Intraday bias in Natural gas remains neutral and some more sideway consolidations could still be seen above 3.61. But upside is expected to be limited below 4.288 support turned resistance and bring another fall. Below 3.61 will target 161.8% projection of 5.196 to 4.288 from 4.007 at 3.538 first and then 100% projection 6.108 to 3.81 from 5.194 at 2.896 next.In the bigger picture, the strong break of 3.81 support last week confirms that whole decline from 6.108 has resumed. Further fall should be seen to 100% projection of 6.108 to 3.81 from 5.194 at 2.896 next. More importantly, the development revived the case that medium term rebound from 2.409 is completed at 6.108 already. Also, fall from 6.108 might indeed be resuming the long term down trend for a new low below 2.409. We'll pay attention to the structure of the current decline for more hints. On the upside, break of 4.288 resistance is needed to be the first signal of bottoming. Otherwise, outlook will remain bearish. [Image](http://www.ibtimes.com/%22http://img.ibtimes.com/www/data/articles/full/2010/09/02/16715.jpg%22) [Image](http://www.ibtimes.com/%22http://img.ibtimes.com/www/data/articles/full/2010/09/02/16716.jpg%22)
Stock Price 4 days before: 7.12309
Stock Price 2 days before: 7.00784
Stock Price 1 day before: 7.63011
Stock Price at release: 7.33135
Risk-Free Rate at release: 0.0015
| 8.86927 |
Symbol: PAR
Security: PAR Technology Corporation
Related Stocks/Topics: DELL|Markets|NTAP|HPQ
Title: HP Emerges as Victor over Dell in Battle for 3Par
Type: News
Publication: Trefis Team
Publication Author: Unknown
Date: 2010-09-02 11:36:00
Article: Until this morning, 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)) ) were 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. HP won that war today, paying $2.4 billion in cash to acquire 3Par.Below we highlight the significance of 3Par and explain how it might impact HP's storage business in the future. **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 were Dell & HP chasing 3Par?**In revenue terms, Dell currently holds about 13% 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 initial estimate is that the acquisition could boost 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-line in the chart below to create your own storage revenue forecast for HP. **Is 3Par worth $2.4 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, 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 meaning that Dell will need to duplicate the technology from scratch if it wishes to compete with HP based on such technology. Dell will incur heavy R&D costs to develop such technology and may potentially lose share in the emerging utility storage market if it is unable to compete with HP. **We have not yet updated our** [$54 Trefis price estimate for Hewlett-Packard](https://www.trefis.com/company?hm=HPQ.trefis&hk=7dfdd1a88bdb234566ee81e4365b20930f9faa11) to incorporate 3Par, but will be doing so soon.
Stock Price 4 days before: 31.8578
Stock Price 2 days before: 31.6
Stock Price 1 day before: 31.6261
Stock Price at release: 32.8516
Risk-Free Rate at release: 0.0015
| 0 |
Symbol: GCI
Security: Gannett Co., Inc.
Related Stocks/Topics: IPG|Markets
Title: Low-cost bet on Gannett
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-09-02 11:48:00
Article: [GCI](http://www.optionmonster.com/cms/commentary/images/GCI%209-2.png) Gannett is bouncing after a steady decline, and one investor is making a low-cost upside bet.optionMONSTER's Heat Seeker tracking system detected the purchase of 10,650 October 16 calls for $0.10 and the sale of an equal number of October 10 puts for $0.10. Volume was more than 4 times open interest in both strikes. The strategy let the investor pay no money, aside from commissions, to wager on a rally in the beaten down newspaper stock. If GCI closes above $16 on expiration, he or she will make money. They'll lose money below $10 and walk away with nothing between those two levels.The stock rose 4.23 percent to $13.30 yesterday and is up about 8 percent since bottoming out at a nine-month low of $11.66 on Aug. 24. It entered today's session down 30 percent from its peak in late April.The publisher of USA Today reported earnings at the high end of expectations on July 17 amid weak revenue. However, there have been signs that the worst of the slump is over in the newspaper industry, and advertising stocks such as Interpublic Group have been showing strength.Short interest represented an elevated 14 percent of GCI's float in mid-August, which could trigger forced buying if the shares begin to recover.Overall options volume in the stock 12 times greater than average so far today. (Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 10.5707
Stock Price 2 days before: 12.23
Stock Price 1 day before: 12.67
Stock Price at release: 13.3302
Risk-Free Rate at release: 0.0015
| 12.5795 |
Symbol: PAR
Security: PAR Technology Corporation
Related Stocks/Topics: DELL|Markets|HPQ
Title: Hewlett-Packard Wins Bidding War for 3Par over Dell (HPQ, DELL)
Type: News
Publication: Dividend.com
Publication Author: Unknown
Date: 2010-09-03 08:54:00
Article: PC and printer maker Hewlett-Packard Company ([HPQ](http://www.dividend.com/dividend-stocks/technology/diversified-computer-systems/hpq-hewlett-packard/)) ) on Thursday won the bidding war for storage specialist 3Par ( **PAR** ) over rival Dell Inc. ( **DELL** ), as Dell decided to pull out of the competition.HP's winning bid for 3Par amounted to $33 per share, which represents a massive 366% premium over 3Par's Aug. 13 closing price - the day before takeover rumors began. Dell was willing to go as high as $32 per share for 3Par, which provides utility storage systems for medium-sized businesses. On Aug. 16, Dell began the bidding for 3Par with an $18 per-share offer. [HP quickly followed with a higher bid](http://www.dividend.com/blog/?p=23483) , forcing Dell to up its offering price.HP senior VP of corporate strategy said that "We took a measured approach throughout the process and have decided to end these discussions. We believe our strategy of creating open, affordable and capable solutions resonates well with customers and will enable us to continue to outgrow the industry." HP noted it expects the deal to close by the end of the fourth quarter.Hewlett-Packard shares rose 32 cents, or +0.8%, in premarket trading Friday. **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 .81% dividend yield, based on last night's closing stock price of $39.68. The stock has technical support in the $35 price area. If the shares can firm up, we see overhead resistance around the $44-$46 price levels. 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: 31.9558
Stock Price 2 days before: 32.0827
Stock Price 1 day before: 31.6519
Stock Price at release: 32.8501
Risk-Free Rate at release: 0.0015
| 0 |
Symbol: NGD
Security: New Gold Inc.
Related Stocks/Topics: EGO|Markets|CDE|GDXJ|GDX|HL|GLD
Title: Bullish trade on junior miners
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-09-03 12:48:00
Article: So-called junior gold miners are breaking out, and one investor is buying calls on a fund that tracks the sector. [GDXJ](http://www.optionmonster.com/cms/commentary/images/GDXJ%209-3.png) optionMONSTER's Heat Seeker tracking system detected unusual trades in the Market Vectors Junior Gold Miners exchange-traded fund ([GDXJ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GDXJ&selected=GDXJ)) ), which sees volume of more than 5,100 contracts so far today. That's more than triple the daily average. Most of the activity occurred in the November 33 contracts, which traded 3,020 times against open interest of 345. A single purchase for $1.24 accounted for almost all the volume.GDXJ rose 2.36 percent to $31.85 in early afternoon trading after setting a new all-time high of $31.89. The fund, which started trading in November, is up 17 percent in the last month.It seems to be getting a boost today after Goldcorp agreed to pay $3.4 billion for Andean Resources, which owns the large Cerro Negro deposit in Argentina. The purchase, which surpassed a bid from Eldorado Gold, is part of a larger trend where major gold miners are buying smaller companies that have promising assets, some of which are not yet under development.Some of GDXJ's largest holdings include New Gold, Hecla Mining and Coeur d'Alene Mines, plus many companies that only trade in Canada. The fund is up more than twice as much as the Market Vectors Gold Miners ETF ([GDX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GDX&selected=GDX)) ), which tracks larger companies including EGO.Calls account for 75 percent of the total options volume in GDXJ so far today. (Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 6.30804
Stock Price 2 days before: 6.27325
Stock Price 1 day before: 6.4194
Stock Price at release: 6.42714
Risk-Free Rate at release: 0.0015
| 6.87144 |
Symbol: KELYA
Security: Kelly Services, Inc.
Related Stocks/Topics: Markets
Title: Data shows steady economic gains
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-09-06 07:48:00
Article: Last week was busy on the economic-data front, with most of the reports showing a mixed-to-improving picture. [KELYA](http://www.optionmonster.com/cms/commentary/KELYA%209-3.PNG) The most important broad theme was that Corporate America's multi-year campaign of cutting workers seems to be drawing to a close. On Tuesday, Carl Camden of temporary-staffing company Kelly Services said on CNBC that hiring trends were improving. Two days later, weekly **jobless claims** came out lower than expected. And within Friday's non-farm payroll report was the addition of 67,000 **private-sector jobs** in August, compared with the estimate for a gain of 41,000. Perhaps even more important was the fact that the July number was also revised higher, which can indicate hiring has more positive momentum than the bean counters thought. **Labor productivity** dropped 1.8 percent in the second quarter, more than the 1.4 percent economists had expected. This is good news because companies had been squeezing more output from fewer workers, so lower productivity suggests that payrolls are no longer shrinking. That's what happened in late 2003, when productivity also showed a big drop. It would trend lower into 2007 at the same time that the economy added jobs. **Hourly earnings** , another part of Friday's Employment Situation Report, and **Consumer Confidence** , released on Tuesday, also came in better than expected.Consumption, traditionally sensitive to employment trends, saw some positive traction: At 0.4 percent, **personal spending** rose twice as much as expected, and the **Case-Shiller Index** of home prices was also better than anticipated. Most retailers also reported better-than-expected same-store sales on Thursday.There were still weak points. The **Institute for Supply Management's Service Index** and a separate reading on **construction spending** both fell more than expected. And there is still plenty of gloom on the employment front, where public-sector jobs are disappearing as census workers get laid off and as state and local governments confront massive budget deficits.Last week also saw mixed data on the manufacturing front: The **Chicago Purchasing Managers Index** was weaker than expected, while the more-important **ISM Manufacturing Index** beat forecasts. (Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. 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: 0.0014
| 0 |
Symbol: HOV
Security: Hovnanian Enterprises, Inc.
Related Stocks/Topics: MTH|Personal Finance|TOL
Title: Your Home Will Never Make You Rich Again
Type: News
Publication: The Motley Fool
Publication Author: Unknown
Date: 2010-09-07 02:22:00
Article: When you drive a new car out of the dealership, the value drops by hundreds or even thousands of dollars. This is an accepted fact of life. So why do people expect to make money every time they sell their homes?Rising home prices of the 1990s and early 2000s [supported the illusion](http://www.fool.com/investing/general/2010/01/26/why-are-homeowners-idiots.aspx) that buying a home was an investment. Then, though, the bubble popped, and the trend reversed with a vengeance. In my mind, we're now back to the natural order of things: Buy something expensive and use it for a few years, and you should darn well expect that the wear and tear you inflicted would make it worth less to the next owner. Homebuilders and real-estate agents will never agree with this view, of course. **Toll Brothers** ([TOL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TOL&selected=TOL)) ) , **Hovnanian Enterprises** ([HOV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HOV&selected=HOV)) ) , and **Meritage Homes** ([MTH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MTH&selected=MTH)) ) have all been turning things around slowly but surely, as big losses have turned into smaller losses and even modest profits in some cases. But they still need to convince buyers that they're building long-term wealth with their new-home purchases in order to draw would-be "investors" and their demand for their products.Even now, homeowners are clinging to the old myth of increasing value, refusing to accept a simple truth: [Lower your price tag and you'll sell your house](http://www.fool.com/investing/general/2010/08/27/why-you-cant-sell-your-home.aspx) . If you can't accept the more modest reality that took the place of the latest tulip-bulb-like craze to hit housing, you'll never sell and will keep owing mortgage payments until the cows come home.Moreover, even if you eschew leverage and pay down the entire mortgage balance before passing the home on to your kids or grandchildren, I'm convinced that your family would be better served by renting a home on the cheap and [investing the difference](http://www.fool.com/how-to-invest/thirteen-steps/index.aspx) in the broad stock market ETFs, SPDRs or **Vanguard Total Stock Market ETF** . The real daredevils out there can do even better by learning how to separate the wheat from the chaff and beat the overall market in the long run.But as for real estate, forget about turning your personal residence into big wealth. That dream turned into a nightmare for millions, and it isn't coming back anytime soon.True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. Fool contributor [Anders Bylund](mailto:[email protected]?subject=Article%20Comments) holds no position in any of the companies discussed here. He does own a home, but doesn't expect to sell it for a profit -- ever. Meritage Homes is a Motley Fool Stock Advisor recommendation. Try any of our Foolish newsletter servicesfree for 30 days. You can check outAnders' holdings and a concise bioif you like, and The Motley Fool isinvestors writing for investors.Copyright © 1995 - 2010 The Motley Fool, LLC. All rights reserved. The Motley Fool has a [disclosure policy](http://www.fool.com/help/index.htm?display=about02) .
Stock Price 4 days before: 3.92402
Stock Price 2 days before: 4.03609
Stock Price 1 day before: 3.95142
Stock Price at release: 3.94636
Risk-Free Rate at release: 0.0013
| 3.88675 |
Symbol: PAR
Security: PAR Technology Corporation
Related Stocks/Topics: DELL|Markets|HPQ
Title: Is Dell a Value Trap?
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-09-07 03:44:00
Article: Dell ([DELL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DELL&selected=DELL)) ) is the definition of a fallen angel. This former tech darling has fallen to earth after years of flying high. It is also a company that bedevils me. Is it ridiculously undervalued or a value trap that will ultimately burn shareholders?At year-end 2009, Dell had approximately $11 billion in cash and $4 billion of debt. Add in $2 billion or so in annual free cash flow and there is something to get excited about. This is especially true considering the company's $25 billion market value. Not surprisingly some of my favorite value firms are among the largest owners of Dell shares, including Southeastern (Longleaf), Brandes, and Harris Associates (Oakmark). Earlier this year, I too was seduced into owning Dell. It didn't last long. A talk with investor relations woke me up. In discussing uses of cash, we covered buybacks, special/regular dividends, acquisitions and more. It became very obvious that acquisitions were to be the focus. In closing, the investor relations rep said my opinions were similar to those of Mason Hawkins. I took that as a huge compliment, but it wasn't meant to be. Dell clearly has no intention of listening to either of us.This is a company that doesn't speak our language, to say nothing of their "new math".I've seen companies fritter away billions and have nothing to show for it thanks to this attitude, so my Dell shares quickly found new homes. Given the continued decline in Dell shares, I should be grateful, but I keep revisiting this company and its odd capital decisions.Given Dell's track record on share repurchases, one can understand if the company swore off buybacks. Shares have declined from nearly 3 billion shares to below 2 billion in the past 15 years and the stock has fallen nearly the entire time. In fact, since the shares peaked in 2000, shares outstanding have dropped from 2.6 billion to 1.9 billion. Hindsight tells us that they should have been more patient. Ironically, the cheaper the shares have gotten the less attractive they've become to Dell management as a use of excess cash. Buy low? No thank you.As for dividends? Just like real men don't ask directions, real tech companies don't pay dividends. This is especially so for "growth" companies. And that is how Dell sees itself, even if the world no longer does. And paying dividends sends the wrong message. And here I thought dividend payments were about using capital wisely?!? Instead Dell has decided to hold the cash and use it to "invest in the business". For the uninitiated, that's code for acquisitions. In this, Dell looks like a desperate company. Margin compression in Dell's core business helps explain why this may be the case. Of more concern, everywhere Dell wants to be there seems to be a superior company occupying the space.Whether large integrated firms like [[IBM]] and HP ([HPQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HPQ&selected=HPQ)) ) or specialized firms like storage giant [[EMC]], Dell seems caught in the mushy middle strategically. This 2009 headline speaks volumes: [Dell to Buy Perot in Catch-Up Deal.](http://online.wsj.com/article/SB125353092801427455.html) Perhaps in response to Hewlett Packard's purchase of EDS, Dell bought Perot Systems a year ago for $3.9 billion, a 68% premium to Perot's public market price and 30x its earnings.Shareholders should be relieved in a way. The Perot deal was r elatively cheap compared to the attempted purchase of 3Par. Whether it's the $18 a share bid in August or the final one at $32 (or $2.4 billion), it is a hefty bid for a company that is barely profitable. The financial press must have been feeling nostalgic about the Internet Bubble because they were again able to use the price-to-sales multiple to explain the deal instead of price-to-earnings. In fact, HP "won" the day with a bid valuing 3Par ([PAR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PAR&selected=PAR)) ) at 8 times sales. Congratulations!I've been told many times that as a value investor, I just don't understand growth, that I am incapable of understanding the world of possibilities that opens up because of such strategic acquisitions. I admit that I hate the word "synergy" and have no imagination! I will only say that growth is a variable to be valued not an end. Growth at any price does not benefit shareholders. If this was a make or buy decision, both companies are admitting something by the price they were willing to pay for PAR. By ignoring other uses for cash, Dell is admitting still more.A value trap is a company that may be undervalued, but where intrinsic value is falling. Margin of safety is eroded and there is no guarantee of upside. Some companies do this by losing money and burning up asset value. Others do it through poor capital allocation decisions.If the competitive environment and value were static, Dell would be a buy. But these are dynamic forces. Dell's reaction to their competitive positioning is eating away at intrinsic value. Dividends and aggressive share repurchases (at current prices) would be vastly superior to acquisitions at ridiculous prices.Luckily for Dell, 3Par found a "greater fool" in HP, but don't think that another deal isn't around the corner. Lexmark ([LXK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LXK&selected=LXK)) ) perhaps? Either way, this flailing around isn't pretty to watch.If Dell keeps throwing its cash away, their IR department can relax. That phone won't be ringing as often. **Disclosure: In addition to numerous Dell computers, author owns LXK** .See also [The Great Australian Housing Bubble](http://seekingalpha.com/article/227083-the-great-australian-housing-bubble?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 32.8265
Stock Price 2 days before: 32.8918
Stock Price 1 day before: 32.8893
Stock Price at release: 32.8893
Risk-Free Rate at release: 0.0013
| 0 |
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: 2010-09-07 10:44:00
Article: Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) Intraday bias in natural gas remains neutral as consolidation from 3.61 continues. Further recovery might still be seen as long as 3.77 minor support holds. But we'd expect upside to be limited by 4.288 support turned resistance and bring another fall. Below 3.77 will flip intraday bias back to the downside and break of 3.61 will confirm fall resumption. However, decisive break of 4.288 will indicate that a short term bottom is at least formed and will bring stronger rise to 5.007 resistance instead.In the bigger picture, whole decline from 6.108 is still in progress and further fall should be seen to 100% projection of 6.108 to 3.81 from 5.194 at 2.896 next. More importantly, the development revived the case that medium term rebound from 2.409 is completed at 6.108 already. Also, fall from 6.108 might indeed be resuming the long term down trend for a new low below 2.409. We'll pay attention to the structure of the current decline for more hints. On the upside, break of 4.288 resistance will be the first signal of reversal. Further break of 5.007/194 resistance zone will in turn argue that fall from 6.108 has finished. [Image](http://www.ibtimes.com/%22http://img.ibtimes.com/www/data/articles/full/2010/09/07/16831.jpg%22) [Image](http://www.ibtimes.com/%22http://img.ibtimes.com/www/data/articles/full/2010/09/07/16832.jpg%22)
Stock Price 4 days before: 7.28813
Stock Price 2 days before: 7.45979
Stock Price 1 day before: 7.40066
Stock Price at release: 7.54046
Risk-Free Rate at release: 0.0013
| 9.20989 |
Symbol: NG
Security: NovaGold Resources Inc.
Related Stocks/Topics: Unknown
Title: Natural Gas Daily Technical Outlook
Type: News
Publication: International Business Times
Publication Author: Unknown
Date: 2010-09-08 09:02:00
Article: Nymex Natural Gas ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) Natural gas' consolidation from 3.61 is still in progress and intraday bias remains neutral. Another recovery cannot be ruled out yet but after all, upside is expected to be limited by 4.288 support turned resistance and bring fall resumption. Below 3.77 will flip intraday bias back to the downside and break of 3.61 will confirm fall resumption to 2.896 projection level. However, decisive break of 4.288 will indicate that a short term bottom is at least formed and will bring stronger rise to 5.007 resistance instead.In the bigger picture, whole decline from 6.108 is still in progress and further fall should be seen to 100% projection of 6.108 to 3.81 from 5.194 at 2.896 next. More importantly, the development revived the case that medium term rebound from 2.409 is completed at 6.108 already. Also, fall from 6.108 might indeed be resuming the long term down trend for a new low below 2.409. We'll pay attention to the structure of the current decline for more hints. On the upside, break of 4.288 resistance will be the first signal of reversal. Further break of 5.007/194 resistance zone will in turn argue that fall from 6.108 has finished. [Image](http://www.ibtimes.com/%22http://img.ibtimes.com/www/data/articles/full/2010/09/08/16873.jpg%22) [Image](http://www.ibtimes.com/%22http://img.ibtimes.com/www/data/articles/full/2010/09/08/16874.jpg%22)
Stock Price 4 days before: 7.45979
Stock Price 2 days before: 7.40066
Stock Price 1 day before: 7.51925
Stock Price at release: 7.7067
Risk-Free Rate at release: 0.001
| 9.16596 |
Symbol: SOHU
Security: Sohu.com Limited
Related Stocks/Topics: BIDU|Markets|FXI
Title: Sohu calls active amid buyout talk
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-09-08 11:34:00
Article: Takeover rumors are swirling around Sohu.com, and call buyers are stepping in.optionMONSTER's Heat Seeker monitoring system detected the purchase of more than 4,100 September 55 calls, mostly of which priced for $0.25 to $0.30. Volume was almost twice open interest in the strike. [SOHU Chart](http://www.optionmonster.com/cms/commentary/images/sohu908.png) SOHU rose 1.91 percent to $51.31 in morning trading and is up 19 percent in the last three months. The Chinese Internet stock has been moving sideways for the last two years and is still about 40 percent below where it peaked in May 2008.This morning's call buyers seem to be reacting to chatter that the stock may be takeover target by online search giant Baidu.com.SOHU reported better-than-expected sales and earnings on July 26. Overall options volume in SOHU is 10 times greater than average so far today, with calls outnumbering puts by 21 to 1.There is also evidence that sentiment is improving in Chinese stocks. The iShares FTSE/Xinhua China 25 Index ([FXI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FXI&selected=FXI)) ) exchange-traded fund, which tracks the country's broader markets, has been outperforming the S&P 500 over the last three- and six-month periods.That marks a contrast with the year-to-date and 12-month periods. This year's shift in relative performance indicates that buyers are starting to return to China, almost three years after FXI peaked around $70 in October 2007. It now trades for $40.80, up 0.64 percent today. (Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 51.5248
Stock Price 2 days before: 51.5006
Stock Price 1 day before: 51.4683
Stock Price at release: 50.9007
Risk-Free Rate at release: 0.001
| 58.4596 |
Symbol: HPP
Security: Hudson Pacific Properties, Inc.
Related Stocks/Topics: Markets
Title: New Dividend Stock Added to Database (HPP)
Type: News
Publication: Dividend.com
Publication Author: Unknown
Date: 2010-09-09 06:06:00
Article: We are adding a new dividend stock to our database of nearly 1600 dividend-paying stocks, on news that Hudson Pacific Properties ([HPP](http://www.dividend.com/dividend-stocks/financial/reit-office/hpp-hudson-pacific-properties/)) ) has initiated a dividend payout.Hudson Pacific Properties ([HPP](http://www.dividend.com/dividend-stocks/financial/reit-office/hpp-hudson-pacific-properties/)) ) - This company operates as an integrated real estate company. It focuses on the ownership, operation, and acquisition of office properties primarily in Northern and Southern California, including Los Angeles, Orange County, San Diego, San Francisco, Silicon Valley, and the East Bay. The company is headquartered in Los Angeles, California. 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: 16.5674
Stock Price 2 days before: 16.5885
Stock Price 1 day before: 16.3257
Stock Price at release: 16.5767
Risk-Free Rate at release: 0.001
| 16.39 |
Symbol: SIBN
Security: SI-BONE, Inc.
Related Stocks/Topics: Markets|HAL|RIG|BP
Title: Sector Update: Energy
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-09-09 07:56:00
Article: Energy issues are mostly up before the bell, even though oil prices continue to weaken due to lackluster demand. The 12 member nations of the Organization of Petroleum Exporting Countries accounts for about 40% of global supply, and the Vienna-based agency sees world demand for oil reaching 28.8 million barrels a day in 2011, about 100,000 barrels less than previously expected. Korea National Oil Corp (KOILC) is seen to be closer to clinching its hostile takeover bid for Dana Petroleum plc (DNX) as investors accept that KNOC will not increase its offer for the company. Dana's shareholders have until Sept. 23 to accept the offer. JSC Gazprom Neft ([SIBN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SIBN&selected=SIBN)) ) has closed a five year pre-export finance facility for $1.5 billion. The oil unit of Gazprom OAO(GAZP) said the facility will pay a margin of 2.1% over Libor after it lowered the margin on its initial $1 billion loan from 2.4% over Libor. The day after releasing results from its internal investigation into the Gulf of Mexico oil spill which had placed blame not only on itself, but also on Halliburton Co ([HAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HAL&selected=HAL)) ) and Transocean Ltd ([RIG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RIG&selected=RIG)) ) as well, BP plc ([BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP)) ) reported flaring at a Los Angeles refinery. Meanwhile, Holly Corp ([HOC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HOC&selected=HOC)) ) reported a leak from a naphtha vessel at its New Mexico refinery. The unit has been shut down for the time being. Brent crude is down 0.1% at $78.08 a barrel on NYMEX. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
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: 0.001
| 0 |
Symbol: SIBN
Security: SI-BONE, Inc.
Related Stocks/Topics: BP|Markets|HAL|RIG|CLF
Title: Oil Dips as OPEC Cuts Back Global Demand Outlook; Gold Inches Up as Safe Haven
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-09-09 07:57:00
Article: Oil is falling slightly in early morning trade as OPEC cut back its forecast for global demand from member countries as production outside the group rises. Meanwhile, a weekly increase in U.S. crude supply as reported Wednesday by the U.S. Department of Energy is likely to keep a lid on any significant gains in oil prices.Gold, on the other hand, continues to inch up as worries about European banks persist on the one hand, and concerns about overall global demand remain on the other. Speculation is growing that European banks will find it difficult to raise funds, leading the euro to weaken against the dollar. At 0750 ET, Brent crude is down 0.1% at $78.08 a barrel, while light sweet crude is up 0.4% at $74.93 a barrel, and natural gas is up 0.1% at $2.08 a million British thermal units.Gold is up 0.2% at $1,259.50 an ounce, while silver is up 0.1% at $20.03 an ounce, and copper is down 1.5% at $3.45 a pound.The 12 member nations of the Organization of Petroleum Exporting Countries accounts for about 40% of global supply, and the Vienna-based agency sees world demand for oil reaching 28.8 million barrels a day in 2011, about 100,000 barrels less than previously expected.Korea National Oil Corp (KOILC) is seen to be closer to clinching its hostile takeover bid for Dana Petroleum plc (DNX) as investors accept that KNOC will not increase its offer for the company. Dana's shareholders have until Sept. 23 to accept the offer.JSC Gazprom Neft ([SIBN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SIBN&selected=SIBN)) ) has closed a five year pre-export finance facility for $1.5 billion. The oil unit of Gazprom OAO(GAZP) said the facility will pay a margin of 2.1% over Libor after it lowered the margin on its initial $1 billion loan from 2.4% over Libor. The day after releasing results from its internal investigation into the Gulf of Mexico oil spill which had placed blame not only on itself, but also on Halliburton Co ([HAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HAL&selected=HAL)) ) and Transocean Ltd ([RIG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RIG&selected=RIG)) ) as well, BP plc ([BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP)) ) reported flaring at a Los Angeles refinery.Meanwhile, Holly Corp ([HOC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HOC&selected=HOC)) ) reported a leak from a naphtha vessle at its New Mexico refinery. The unit has been shut down for the time being.In the mining sector, Cluff Gold plc ([CLF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CLF&selected=CLF)) ) reported a 56% increase in gold production for the first half of this year, adding that it expects to reach its target of producing 100,000 ounces of gold in 2010. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
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: 0.001
| 0 |
Symbol: SIBN
Security: SI-BONE, Inc.
Related Stocks/Topics: Markets|HAL|RIG|BP
Title: Sector Update: Energy Up, Korea National Oil Seen Closer to Taking Over Dana Petroleum
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-09-09 08:26:00
Article: Dow Jones U.S. Oil & Gas Index: 460.22 Wednesday regular session closeNYMEX Benchmark Crude: +0.21 (+0.28%) to 74.88Top Energy StocksXOM: +0.08%CVX: +0.32%SLB: +0.09%OXY: 0.00%COP: +0.33%Energy issues are mostly up before the bell, while oil prices inch up. The 12 member nations of the Organization of Petroleum Exporting Countries accounts for about 40% of global supply, and the Vienna-based agency sees world demand for oil reaching 28.8 million barrels a day in 2011, about 100,000 barrels less than previously expected. Korea National Oil Corp (KOILC) is seen to be closer to clinching its hostile takeover bid for Dana Petroleum plc (DNX) as investors accept that KNOC will not increase its offer for the company. Dana's shareholders have until Sept. 23 to accept the offer. JSC Gazprom Neft ([SIBN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SIBN&selected=SIBN)) ) has closed a five year pre-export finance facility for $1.5 billion. The oil unit of Gazprom OAO(GAZP) said the facility will pay a margin of 2.1% over Libor after it lowered the margin on its initial $1 billion loan from 2.4% over Libor. The day after releasing results from its internal investigation into the Gulf of Mexico oil spill which had placed blame not only on itself, but also on Halliburton Co ([HAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HAL&selected=HAL)) ) and Transocean Ltd ([RIG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RIG&selected=RIG)) ) as well, BP plc ([BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP)) ) reported flaring at a Los Angeles refinery. Meanwhile, Holly Corp ([HOC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HOC&selected=HOC)) ) reported a leak from a naphtha vessel at its New Mexico refinery. The unit has been shut down for the time being. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
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: 0.001
| 0 |
Symbol: SOHU
Security: Sohu.com Limited
Related Stocks/Topics: GOOG|Markets|NFLX
Title: Two Tales of Innovation
Type: News
Publication: Cabot Wealth Network
Publication Author: Unknown
Date: 2010-09-10 02:31:00
Article: Unlock the Secrets of Options TradingLeverage your investments in both up and down markets with our newest publication, Cabot Options Trader. Get top options trading picks each week that can help you make money in any market. Subscribers have already locked in double-and triple-digit gains, despite the market's wild swings! [Click to learn more.](https://www.cabot.net/info/cot/cotki06.aspx?source=wv01)---This week, **Google ([GOOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GOOG&selected=GOOG)) )** announced that it was speeding up its search results so that "instant" information will display as you type. Google said the new feature was in response to the fact that people read faster than they type and the new super quick search results will allow users to adjust queries more rapidly and allow them to type less. During the announcement, Google said that an average searcher spends nine seconds entering a query and 15 seconds looking for answers. Google Instant will save two to five seconds per search and 3.5 billion seconds per day.You've likely already noticed that Google has a "suggested search," but the Instant Search is like that on steroids. Typing in even a single letter yields results. I've used it several times since its debut on Wednesday and while it was a bit overwhelming at first, I'm already getting used to it.Instant search is just the latest in a long line of incredible technological advancements from Google, which has continuously revolutionized the way we use the Internet since its founding a little over a decade ago. (Heck, the company name, Google, has even become a verb!) And Google's stock has reflected this evolution. From its initial public offering at $85 per share in 2004 to its high of over $700 in 2007, the stock has long been an investor favorite. It got tripped up (with the rest of the market) in 2008, but has been recovering since.The stock currently trades around $450, not your typical price level for a value stock recommendation, but that's exactly where you'll find GOOG in the Cabot stable of newsletters: as part of the Wise Owl Model in Cabot Benjamin Graham Value Letter. Editor J. Royden Ward recommended Google in June with a Maximum Buy Price of 482.53. This is what he wrote then:**Is it Undervalued?** GOOG shares now sell at 18.2 times our 12-month forward EPS forecast, which is low in comparison to the 20% EPS growth that we foresee during the next three to five years. We expect Google's stock price to increase to our Minimum Sell Price of 818.24 within two to three years. **Company Profile:** Google aims "to organize the world's information and make it universally accessible and useful." Thousands of companies use Google's AdWords and AdSense programs to promote their products and services on the web using advertising relevant to the information displayed on search pages.Founded just 10 years ago, the company's sales now exceed $25 billion with profits of $7 billion. The balance sheet stands out with no debt and $26 billion of cash. The company pays no dividend. In recent news, Google ceased operations in China because of China's censorship of free speech, but the company derived less than 1% of its revenues from China. **Outlook:** Sales increased 18% during the 12 months ended 3/31/10 while earnings per share jumped 30%. We expect sales growth of 13% and EPS growth of 20% during the next 12 months and in future years. Google will continue to benefit from increasing Internet use and the effectiveness of online advertising. Huge opportunities exist for advertising on smart-phones and Google's cloud computing. For those seeking value (with a splash of growth), Google is a great investment pick.[Click here to learn more](http://www.cabot.net/info/bgv/bgvkr01.aspx?source=wv01) about Google and other top value stocks recommended by Cabot Benjamin Graham Value Letter.---Another headline from the New York Times caught my eye this week, "Washington State Man Drives 1,400 Miles Without Refueling." My interest was piqued (to say the least), so I just had to read the whole story.The basics are that a Washington state man drove from the Canadian border to the Mexican border along West Coast Interstate 5 in a home-built car that he estimated could drive 1,400 miles on 14 gallons of diesel fuel.Craig Henderson, owner and driver of the vehicle, called the Avion, not only succeeded, but actually beat his own goal. The car used a mere 12.4 gallons of fuel on the trip, for an average of 119.1 miles per gallon! I don't know about you, but I'd love a car that fuel-efficient. Unfortunately because the car was homemade, I doubt we'll see something like it on the market any time soon.There are, however, several companies working to bring more fuel-efficient cars to market, like Tesla Motors with its Roadster, the Chevy Volt and the Nissan Leaf, among others. And hearing stories like Craig Henderson's gives me hope that soon we'll see truly efficient cars priced well being adopted at wider rates, something good for both the environment and our wallets.Every month, Cabot Green Investor features the top stocks in the Green sector, like those focusing on making more fuel-efficient vehicles. A new issue came out on Thursday featuring two red-hot solar companies. [Don't miss these new recommendations!](http://www.cabot.net/info/cgi/cgiki12.aspx?source=wv01)---In this week's Stock Market Analysis Video, Cabot China & Emerging Markets Editor Paul Goodwin says it's been another good week, but not a decisive week, in the stock market. The market opened well on Friday when good news in the form of diminishing new claims for unemployment showed up. Paul discussed the cloud computing industry and these stocks: Acme Packet ([APKT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=APKT&selected=APKT)) ), Aruba Networks ([ARUN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ARUN&selected=ARUN)) ), Netflix ([NFLX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NFLX&selected=NFLX)) ), Sohu.com ([SOHU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SOHU&selected=SOHU)) ) and China New Borun ([BORN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BORN&selected=BORN)) ).[Watch the video.](http://www.cabot.net/Videos/Stock-Market-Analysis-Video/2010/CWR-091010.aspx?source=wv01) Until next time,Elyse AndrewsEditor of Cabot Wealth Advisory
Stock Price 4 days before: 51.5006
Stock Price 2 days before: 50.2305
Stock Price 1 day before: 50.9522
Stock Price at release: 53.1842
Risk-Free Rate at release: 0.001
| 59.0768 |
Symbol: IAG
Security: IAMGOLD Corporation
Related Stocks/Topics: Markets|PPLT|GDX|NEM|AEM|GLD
Title: The Right Miners at the Right Time - An Interview With Midas Funds' Tom Winmill
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-09-10 03:58:00
Article: ** [Hard Assets Investor](http://hardassetsinvestor.com/) submits:**By Lara CriggerWith so many gold miners out there, picking the right one for your portfolio can be a daunting task. How can you tell the stars from the stinkers? Easy: Look for the three P's-people, pricing and projects, says Tom Winmill of [Midas Funds](http://www.midasfunds.com/index.html).Since 2002, Winmill has served as the portfolio manager of the firm's Midas Fund [MIDSX], a precious metals equity mutual fund. He is also the chairman of the Investment Policy Committee, where he helps establish general investment guidelines, and a member of the New York chapter of the American Institute of Mining, Metallurgical, and Petroleum Engineers. Recently, HAI Associate Editor Lara Crigger chatted with Winmill about his thoughts on gold and gold mining, including his short-term outlook for the yellow metal, why gold is like a breath mint and how investors should evaluate the big mining companies. **Crigger: Where do you see the price of gold going in the next 6-12 months?****Winmill:** By the end of the year, we estimate a $1,400/oz U.S. gold price. Then over the next 18 months, we foresee the gold price will probably meander up about $100 per quarter. The reason we say that is because we see the gradual increase in creation of U.S. dollars is going to continue for some time. That will result in inflation news, we think, and the perception of that inflation is what investors need to focus on.Historically, gold is a volatilely priced metal and the near-term factors are influenced dramatically by what we call 'Fear Factor': political news, geopolitical disaster, worries that European banks will fall, etc. These things tend to affect the short-term price. So I think we'll be quite spiky over the next 18 months. **Crigger: Is gold starting to trade more like a currency than any actual commodity?** **Winmill:** Well, at Midas, what we've said for many years is that gold has these two attributes: the currency attribute and the commodity attribute. We compare it to that old advertisement of whether Certs is a breath mint or a candy mint.So as long as it trades as a breath mint - that is, as a currency - then you'll see it being influenced by these aspects of U.S monetary fiscal policy. Ultimately, we think the breath-mint aspect of gold, as an alternative currency, will carry the day, because the money flows are that much bigger.Now gold as a commodity is influenced, at least in the medium term, by fundamental supply and demand factors, such as central bank buying and selling, jewelry manufacturer orders, and of course the famous 'Fear Factor.' I think that that's a very valid way to look at gold; it only depends on your timing outlook. At Midas it tends to be longer-term investors, so we're focused on the breath-mint factor of gold as an alternative currency. **Crigger: I have to say, I love the analogy of the breath mint vs. the candy mint. It's very true. ****Winmill:** It adds some levity to the usual doom and gloom gold discussions. **Crigger: And certainly there's a doom and gloom mindset that pervades gold investing. But gold has benefits aside from end-of-the-world scenarios, too. ****Winmill:** I think you do have to look at gold as a potentially positive role for U.S. investors. It's neither an evil thing nor a blessed thing - it's just one thing that U.S. investors need to keep in their kit bag to prosper over the years ahead.You know that for the decade leading up, as we all know through 1999/2000, equities were the place to be, and then it turned into a scenario where bonds had the best performance. Now gold has had the remarkable performance over the past decade, but we think that the best is yet to come for those with gold exposure in their portfolio. Bullion will have a very good rise, but we think gold mining equities will actually outperform even the metal itself. **Crigger: Along those same lines, are there some market environments in which certain gold investments make a better choice than others? Is there a better time to invest in bullion over stocks, or junior miners over large diversified concerns, and so on?****Winmill:** That's a very good question. I think there absolutely is. At some times, various sectors, even within the general gold/gold mining sector, will outperform. The way we look at it at Midas is that in a bull market, it tends to be that the big mining companies with cash flow derived from ongoing operations who see the most immediate effects through margin expansion and revenue increase. So initially in bull markets you want to go for big-caps. But then as euphoria comes in through the gold mining equity market, then you see the smaller-caps come along. And some of them will be junior project developers with revenue, but as the euphoria increases, you see what we call the "Turkeys Will Fly" season. Even the turkeys will fly. So the last stages of the equity bull market is the time when mining companies are analyzed based on the number of acres that they have in their exploration package. It's like comparing buying an Internet company based on the eyeballs that have visited the site.So at this point, investors should just switch out of equities into bullion. And the reason we advise that at Midas is because investment bankers can create an unlimited amount of gold mining equities, but they can't create unlimited amounts of gold. So they can add a couple zeros, they can authorize stock of any mining company and spin things out on IPO, you name it. When the gold price spikes, they flood the market, so that's a time when investors should think defensively. Investors should think about gold or other precious metals, like silver or platinum or even a base metal. **Crigger: I think that advice is counter to how most investors behave: They'll buy miners throughout an equity bull market, then only go to bullion after stocks tank. ****Winmill:** Right; we say go bullion, although of course at some point in asset crazes, it all "comes to smash," as our English counterparts might say. So you want to be in something a lot more defensive, perhaps an attractively valued world gold company that has actual distribution, has dividends and so forth. **Crigger:** [Last time we had you on the site](http://www.hardassetsinvestor.com/component/content/article/1873.html)**, you talked about how when you're evaluating a mine, you look for the three P's: projects, people and pricing. What miners are currently passing this test?** **Winmill:** OK, I would be delighted. So the people part is very important right now. One of the dramatic things that happened today [9/8/10] was the announcement by IAMGOLD ([IAG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IAG&selected=IAG)) ) of a new CEO. That's an instance where a company has failed to pass the people test. I don't know that much about the incoming CEO, but I don't believe he has any precious-metals-running experience; he was a division manager of another natural resource company. So the stock sold off; that's an example of the market losing confidence in the people factor.Companies that are passing currently I would say are: Barrick ([ABX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ABX&selected=ABX)) ), Newmont ([NEM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NEM&selected=NEM)) ) and Agnico ([AEM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AEM&selected=AEM)) ). These guys have all shown what they can do. They have able people running the company, and they tend to under-promise and over-deliver. That's a good position to be in.Of those three companies, I think Agnico wins out for the political security of their projects. They're mostly in North America, Mexico and Scandinavia, and they've developed real expertise in Arctic development. The pricing of Agnico is also no longer this ridiculously expensive, two-times-NAV multiple. I think that's more attractively priced. **Crigger: What about Barrick and Newmont?****Winmill:** Barrick certainly has some excellent properties, and I think they're going to surprise on the upside in terms of how those projects will become more economically attractive. The pricing of Barrick securities is not fully reflecting the bounty of its people and projects.In the case of Newmont, the shares have run well, the people are good. The projects, though, are not necessarily lending themselves to a growth profile, which is what the market looks for. The greatest appreciation in stock prices, at least in our work at Midas, seems to suggest that companies with unit growth in terms of ounces of production and ounces added to reserves tend to be rewarded with the greatest increase in the stock price itself. So Newmont has the people part right, and the pricing's attractive, but their projects are kind of just at the barely passing level. **Crigger:****The Midas Fund****has the ability or the flexibility to invest in a range of securities besides gold, including silver miners, platinum miners, copper miners and all sorts of other commodities, fixed income, and so on. To what extent have you been doing that lately?****Winmill:** At Midas we're not gold bugs, we're capital appreciation bugs. We don't view gold as the be-all, end-all; it's really a tool to provide our stockholders with capital appreciation. So just like any other sector, you have seasons where you go in and out, and we see the base metals, oil, food and so on perform differently under different economic scenarios.So we made investment in the underperforming platinum companies, because platinum has not been near as high as gold has. The price hasn't really moved, even though there was a new ETF just for platinum, because the economic cycle remains stalled; it didn't go into a full recovery the way we had estimated.On the other hand, silver - gold's little brother - tends to have a beta to the gold price. Its expected store value has increased. Even though the silver ETF has not added ounces to its holdings since December of last year, the amount of silver hitting the market was not what was projected, because the base metal companies who produce silver as a byproduct have restricted production. So there wasn't as much silver as was anticipated, and that has boosted silver prices substantially to date. So our silver mining companies have done quite well.See also [Navigating a Global Portfolio Through Choppy Waters](http://seekingalpha.com/article/227556-navigating-a-global-portfolio-through-choppy-waters?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 19.305
Stock Price 2 days before: 19.3357
Stock Price 1 day before: 18.5012
Stock Price at release: 17.7077
Risk-Free Rate at release: 0.001
| 17.6591 |
Symbol: PAR
Security: PAR Technology Corporation
Related Stocks/Topics: DELL|Markets|HPQ
Title: Cash buildup 'outrageous,' S&P says
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-09-13 01:34:00
Article: There's been plenty of talk about all the cash floating around out there, but Standard & Poor's equity folks put out some numbers over the weekend showing how big this trend really is.At the end of the second quarter, cash represented a record 12 percent of the market cap of all the non-financials in the entire S&P 500. That's up from 10 percent at the end of last year and less than 6 percent three years ago. The measure excludes financial stocks, which must hold cash as reserves on their loan portfolio. [Cash Reserves](http://www.optionmonster.com/cms/commentary/images/cash913.png) Companies now have enough cash on hand to pay their annual dividends a full 5 times, or to carry out 4.4 years worth of stock buybacks. A decade ago, both of these ratios were under 2 times, according to S&P senior index analyst Howard Silverblatt."It's been outrageous the last couple of years," he said in an interview this morning. "It's a further sign that companies are very frustrated and they can't do anything because they're nervous. They don't know where consumption is going and they don't know where taxes are going."In another measure of the liquidity buildup, 49 percent of non-financial stocks in the S&P 500 increased their cash holdings by at least 20 percent in the last year.Silverblatt said all that dry powder could cause management teams to overpay for acquisitions when they decide to buy other companies.For instance, the final price Hewlett-Packard agreed to pay for 3Par was almost twice the original offer from Dell. Both HPQ and DELL saw their cash reserves rise more than 25 percent during their last fiscal years. Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 32.9245
Stock Price 2 days before: 32.9171
Stock Price 1 day before: 32.9189
Stock Price at release: 32.9194
Risk-Free Rate at release: 0.001
| 0 |
Symbol: JKS
Security: JinkoSolar Holding Co., Ltd.
Related Stocks/Topics: Unknown
Title: Solar Power Stocks are Strong
Type: News
Publication: Cabot Wealth Network
Publication Author: Unknown
Date: 2010-09-13 02:36:00
Article: The e-mailman recently brought this letter:"Timothy,"I have been reading your newsletter for quite some time now. Do you have a definition of how you qualify a stock to be in a certain category? For example: Emerging, small cap, value stock etc. … A list of them and what the qualifications are for each category would be extremely helpful."ThanksHowardFor Howard and all the other readers who are curious, here you go: Emerging market stocks come from less developed, faster-growing countries. China is the most notable of these today; even though it's now the second-largest economy on earth, its growth rate of roughly 10% means it's substantially easier for companies to grow faster there than here. Number two on my list is India, which is growing at a rate of 7%, and #3 is Brazil, which is growing at a rate of 5%. Russia has the potential to be a powerful force, but is currently hampered by poor management. Up-and-coming countries to keep an eye on are Turkey and Indonesia. Traditionally, investing in emerging markets entails greater risk than investing in U.S. stocks, but as the liquidity of these stocks grows, and the dependability of their accounting statements grows, the risks shrink. Cabot China & Emerging Markets Report is your best source of advice when it comes to investing in these stocks. In fact, it's the #1 performer of ALL investment newsletters over the past five years, with a compound annual return of 17.9% (versus 0.3% for the broad market Wilshire 5000 Index).Small-cap stocks are favored by investors who want their investments to grow faster, and know they can achieve that by investing in stocks not yet discovered by institutions. According to the table here-courtesy of Rick Wayman of Investopedia-a small-cap stock has a market capitalization of less than $2 billion … and I can't argue with that.Mega Cap: Market cap of $200 billion and greaterBig Cap: $10 billion and greaterMid Cap: $2 billion to $10 billionSmall Cap: $300 million to $2 billionMicro Cap: $50 million to $300 millionNano Cap: Under $50 millionI used to think $1 billion was the cutoff, but that was decades ago; things have grown since then. Wall Street loves to focus on big stocks, because that's where the lucrative investment banking business is. And because institutions have to put large amounts of money to work, most can't afford to even look at small companies. But if institutions stick to mid-caps and larger stocks, they're only looking at 11% of the stocks that are available … which means there are lots of overlooked opportunities in smaller stocks. In Cabot Small-Cap Confidential the average market capitalization of the past 10 recommendations has been $128 million, ranging from a low of $19 million to a high of $305 million.Value stocks are inexpensive; that much is obvious. But by what measure? The amateur looks at price/earnings ratios, but they're just one tiny piece of the puzzle. Professionals, like Roy Ward of Cabot Benjamin Graham Value Letter, look at much more. In fact, Roy looks at 44 separate factors, ranging from a firm's current ratio to historical price/dividend ratio to quarterly earnings acceleration to price stability. Roy confines his research to very liquid large stocks that have proven management teams, and tries to buy them when they are out of favor. Over the past 12 months, Roy's Classic Benjamin Graham Value Model has gained 11.6%, while the Dow has gained just 4.9%. More impressively, since inception in November 2002, this Model is up 10.9% annually, compared to just 1.5% per year for the Dow.Finally, there are growth stocks. The ideal growth stock is one that starts out unknown, like Microsoft in 1986, and ends up big and famous, owned by thousands of institutions. But holding onto these stocks over multi-year periods, and through the big dips that come from time to time, is very difficult. With most growth stocks, we find it's best to practice market timing, to invest aggressively when market trends are up, and then to move aggressively to cash when market trends are down. Cabot Market Letter-our flagship-provides the ideal combination of growth stocks and market timing, and has been honored numerous times by Timer Digest and Hulbert Financial Digest, which currently includes it as one of only nine newsletters on the 2010 Honor Roll for performance in up and down markets. --- Advertisement ---Limited Time Anniversary Price RollbackCabot Small-Cap Confidential is celebrating its three-year anniversary and in honor of it, we're rolling back the price. Cabot Wealth Advisory subscribers can save $450 by subscribing by October 1, 2010.A subscription to Cabot Small-Cap Confidential will help you discover Wall Street's next big thing, long before most investors have heard of it. So don't delay- [this offer won't last long!](https://www.cabot.net/orderforms/csc/cscki05.aspx?source=wv01)---As to the market, [two weeks ago, I told you](http://www.cabot.net/Issues/CWA/Archives/2010/08/Fear-and-Greed.aspx) "I am confident that the market's next major move will be up."[Last week I repeated it.](http://www.cabot.net/Issues/CWA/Archives/2010/09/Netflix-A-Favorite-Stock.aspx) If you're doubtful, go back and read this.Today, I continue to think there's much more upside potential to this market, and if you agree with me, I suggest you consider a growth stock that has the potential to be as big a winner as Microsoft. The industry is energy, which is an absolutely enormous global industry. The sector is solar power, which is booming now as costs come down, and demand ratchets up. (Don't underestimate the power of the market as people strive to develop alternatives to oil.) And the company is JinkoSolar, a Chinese company that claims to be the "world's leading vertically-integrated PV manufacturer of high quality mono and multi-crystalline modules, cells, wafers and ingots."There are many other companies doing well in the same sector, and many of them are attractive, too. But JinkoSolar ([JKS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JKS&selected=JKS)) ) stands out for these reasons.1. It's small, with a market cap of just $530 million.2. It came public quite recently, in May of this year, so it's still fairly unknown, which means most potential owners don't own it yet.3. The company turned profitable in 2007 and today it's growing like a weed. In the second quarter, revenues grew 310% from the prior year to $133 million while earnings surged from nine cents per share to $1.18 per share. After-tax profit margins were 20.1%. 4. The stock is strong! After coming public at 11 in May, it dipped to a low of 8, and then began a rocket-ship ride that took it to a high of 30 last week.Since then, JKS has dipped to its 25-day moving average at 24, and if you're interested, I think you can nibble on a little here. For continuing coverage of the stock, however, I suggest you [try a no-risk subscription](http://www.cabot.net/info/cem/cemkj07.aspx?source=wv01) to Cabot China & Emerging Markets Report, whose editor, Paul Goodwin, is keeping a close eye on the stock.Yours in pursuit of wisdom and wealth,Timothy LuttsPublisherCabot Wealth Advisory
Stock Price 4 days before: 28.4242
Stock Price 2 days before: 24.6076
Stock Price 1 day before: 24.9979
Stock Price at release: 25.0246
Risk-Free Rate at release: 0.001
| 30.5492 |
Symbol: ODP
Security: The ODP Corporation
Related Stocks/Topics: Markets|ANF|AEO|GCO
Title: Insiders are Scooping up These 3 Retail Stocks
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-09-13 06:11:00
Article: Every Monday, I like to look at all the stocks that saw fresh rounds of insider buying in the previous week. Such so-called insider buying can alert you to undervalued stocks before most investors take note. That's because insiders (defined as any officer or director of a company, or any investor that owns more than 5% of the company's stock) have deep insights into how a business performs. Insiders must file a copy of their activities with the U.S. Securities and Exchange Commission . Several websites, including insiderinsights.com and edgar-online.com, track these transactions.Most weeks, I am lucky to find one or two intriguing insider purchases that merit further research. But I noticed an unusual cluster of buying last week. At least two separate insiders stepped in to buy up large chunks of stock at three different retailers. Taken together, insiders at these companies snapped up more than $8 million in stock in last week. Investors have been selling off retail stocks throughout the summer, and these retailers seem to have been especially hard hit. Let's take a deeper look to see which one of these stocks holds the most appeal right now. **Office Depot** Looking over my notes, here's what I wrote back in April: "Analysts at Jefferies have a bit of egg on their face today after talking up shares of **Office Depot****([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) )** on Monday. The analysts' bullish preview of first quarter results pushed shares up above $9 on Monday to a 52-week high on an intra-day basis. Shares gave back all of those gains -- and more -- in Tuesday trading, as sales and profits missed estimates."Not only did shares of this office supply store fall on that late April morning, but they've fallen ever since and are now below $4 -- roughly the same price they traded for back in 1993. Simply put, rival **Staples ([SPLS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SPLS&selected=SPLS)) )** has taken Office Depot to the cleaners. Shares of Staples have risen more than +2,000% since 1993. Staples has delivered more appealing stores, generated higher sales per store and has been vastly more profitable.And when you see how investors are valuing each of these companies, you start to see a stark disconnect. For example, Staples sports an EV/sales ratio of 0.66, while Office Depot has an EV/sales ratio of just 0.10. And Staples is valued at a+ 40% premium in terms of EBITDA-to-sales.The gap is understandable. While both retailers generate 27% to 28% gross margins, Staples does so with a vastly more efficient [overhead](http://investinganswers.com/term/overhead-799) and can generate solid 8% operating margins, whereas Office Depot hasn't been able to generate positive operating margins since 2007. (Though the company would have generated about $200 million of operating profit in 2009 were it not for some one-time charges.) But changes are afoot, which explains why the company's insiders bought a collective $1 million in stock last week. There is little that Office Depot can do to improve sales until the [economy](http://investinganswers.com/term/economy-1517) improves and unemployment drops, but management can certainly squeeze more profits out of the business. And that process has already started. Gross margins have risen in each of the past four quarters and are up more than 100 basis points from a year ago. Operating expenses are on track to drop about $300 million this year, which should push EBITDA from around $200 million last year to around $300 million this year. Analysts at Citigroup expect further costs cuts to boost EBITDA to around $400 million in 2011 and $500 million in 2012. The company is valued at about 2.5 times that 2012 forecast.And while the company generated negative free cash flow in June, 2009, free cash flow improved to $62 million in the most recent quarter. Office Depot used to generate more than $400 million in annualized free cash flow, until a disastrous acquisition in Europe sapped all those [earnings](http://investinganswers.com/term/earnings-1514) . These days, free cash flow is likely to be in the $100 million to $200 million range, but could perk back up above $300 million once the economy starts to add jobs. As the entire company is valued at just $1.2 billion on an [Enterprise Value](http://investinganswers.com/term/enterprise-value-806) basis, $300 million in free cash flow translates into a free cash flow [yield](http://investinganswers.com/term/yield-1406) of 25%. It will take a few years to get back to that free cash flow level, but will require only a small rebound in sales and continued operational streamlining. You can understand why insiders are so bullish, even if investors are not. **American Eagle Outfitters ([AEO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AEO&selected=AEO)) )**This retailer has also played second fiddle to a rival, which in this case is **Abercrombie & Fitch ([ANF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ANF&selected=ANF)) )** . While Abercrombie has a reputation for premium clothes, American Eagle is seen as a value-focused retailer, and has weaker profit margins to show for it. And teens have been cool to the company recently. Sales growth routinely exceeded +20% annually in the middle of the past decade, but have turned flat during the past few years and few analysts expect sales to rebound in the near-term, while the economy remains in a funk.In its favor, American Eagle has nearly $600 million in net cash ($3 a share), which helped fuel a 10 million share buyback last quarter. Shares trade for a very reasonable 3.6 times projected 2011 EBITDA -- roughly 20% less than its peers. It's also noteworthy that the company's Chairman, Jay Schottenstein, just bought nearly $7 million worth of stock with his own money.But it's hard to get excited about the company's near-term outlook since it doesn't trade at such a sharp discount to rivals. Down the road, that mega-purchase is likely to make the chairman a lot of money, but insiders often arrive early to a party with their bullish buying activity. In this case, Mr. Schotttenstein looks to be early by a couple of years. **Collective Brands ([PSS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PSS&selected=PSS)) )**This operator of Payless ShoeSource and Stride Rite shoe stores reported quarterly results on September 1st that badly lagged forecasts, pushing shares down to a 52-week low. Demand for shoes has been very weak, and sales are unlikely to rebound sharply until the economy turns up. The shares were likely oversold, and have risen for five straight sessions -- likely propelled by investors that have noted the recent $600,000 in insider purchases.Even as management can do little to boost sales right now, it can improve Collective Brands' financial performance. The company acquired the Stride Rite business in 2007 in hopes of gleaning real synergies. Payless would gain access to Stride Rite's impressively lean wholesale shoe operations, and Stride Rite would benefit from Payless' solid [logistics](http://investinganswers.com/term/logistics-580) and real estate expertise, according to analysts at Morningstar. Those gains have been elusive, but they should still be evident in time and help boost margins."With integrated retail and wholesale operations, Collective Brands more closely resembles competitors like **Brown Shoe ([BWS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BWS&selected=BWS)) )** and **Genesco ([GCO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GCO&selected=GCO)) )** . These footwear companies have benefited from scale advantages and multiple distribution channel opportunities associated with [vertical integration](http://investinganswers.com/term/vertical-integration-871) , and Collective Brands is poised to do the same, in our opinion," wrote analyst R.J. Hottovy last week.If he's right, then shares of Collective Brands have considerable upside. Shares trade for about seven times trailing free cash flow (which translates into a 14% free cash flow yield). Brown Shoe, the company's closest rival trades for more than 10 times free cash flow. And as noted above, Collective Brands has several paths to improved financial results, which should fuel higher free cash flow, even if sales growth remains anemic. **Action to Take -->** While insiders at American Eagle Outfitters appear to need a lot of patience to make their big bet payoff, Office Depot and Collective Brands may start to win back investors by delivering improved expense control and higher [cash flow](http://investinganswers.com/term/cash-flow-1175) . Office Depot looks to have considerable upside, perhaps +100% or +200% if management can stay focused on squeezing out costs. [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...P.S. -- There's an analyst with a track record you need to see. She has an 89% win rate -- remarkable for this market. And she just keeps picking winners. One of her recent picks shot up +18.2% in just 13 days. Go here for the details...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/news/insiders-are-scooping-these-3-retail-stocks-456549) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
Stock Price 4 days before: 4.07441
Stock Price 2 days before: 3.90912
Stock Price 1 day before: 3.95884
Stock Price at release: 3.9616
Risk-Free Rate at release: 0.001
| 5.12248 |
Symbol: PAR
Security: PAR Technology Corporation
Related Stocks/Topics: Personal Finance|INTC|TXN|HPQ
Title: H-P inks another acquisition
Type: News
Publication: NASDAQ.com News
Publication Author: Unknown
Date: 2010-09-13 11:11:00
Article: Tech giant Hewlett-Packard ([HPQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HPQ&selected=HPQ)) ) confirmed on Monday that it had bought enterprise-focused security-software company ArcSight ([ARST](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ARST&selected=ARST)) ), mere weeks after it agreed to buy storage-software firm 3Par ([PAR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PAR&selected=PAR)) ).H-P's buying binge comes amidst a spate of merger and acquisition deals. August was the busiest month for M&A since July 2008, with more than $282 billion made in purchases and tie-ups. And the tech sector has seen a raft of M&A activity: Intel ([INTC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INTC&selected=INTC)) ), for example, recently bought security-software developer McAfee ([MFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MFE&selected=MFE)) ), the cable-modem unit of Texas Instruments ([TXN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TXN&selected=TXN)) ) and the wireless division of Infineon Technologies.H-P's enterprise offerings will be expanded by the addition of ArcSight, the company said. "The combination of H-P and ArcSight will provide clients with the ability to fortify their applications, proactively monitor events and respond to threats," H-P executive vice president Bill Veghte indicated.H-P, ArcSight CEO Tom Reilly added, "will be able to offer an integrated security platform that delivers broader visibility, deeper context and faster remediation of enterprise-wide security and risk-related events."The announcement of the $1.5 billion deal didn't move the needle on H-P's stock in early trading.By Benjamin Foster
Stock Price 4 days before: 32.9139
Stock Price 2 days before: 32.9171
Stock Price 1 day before: 32.9189
Stock Price at release: 32.91
Risk-Free Rate at release: 0.001
| 0 |
Symbol: CBRL
Security: Cracker Barrel Old Country Store, Inc.
Related Stocks/Topics: CBOE|Markets|BBY|KR|PLL
Title: Opening View: DJIA Bulls Look for Fuel to Extend September Rally
Type: News
Publication: Schaeffer
Publication Author: Unknown
Date: 2010-09-14 08:06:00
Article: The Dow Jones Industrial Average (DJIA) rallied more than 80 points on Monday, as Wall Street cheered the Basel, Switzerland, financial reforms. However, that goodwill has apparently hit its limit ahead of this morning's August retail sales data. Economists are currently looking for a rise of 0.3%, which is just shy of July's 0.4% rise. With expectations set for declining momentum in the retail sector, futures on the DJIA and the S&P 500 Index (SPX) are trading 27 points and 3.6 points below fair value, respectively. The Dow enters today trading below resistance in the 10,600 region, while support resides near 10,450. Meanwhile, the SPX should hold support near its 200-day moving average, in the 1,116 region, while resistance could materialize at the 1,130 level.In equity news, Green Mountain Coffee Roasters Inc. ([GMCR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GMCR&selected=GMCR)) ) may be close to acquiring Van Houtte Inc. in a deal worth approximately $1 billion, according to The Wall Street Journal . Van Houtte operates in Quebec, Canada, selling packaged coffee beans for retailers and coffee-brewing equipment, and it operates cafes in Quebec. Elsewhere, Cracker Barrel Old Country Store Inc. ([CBRL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBRL&selected=CBRL)) ) reported fourth-quarter net income of $27.4 million, or $1.14 per share, on revenue of $612.5 million. Wall Street was expecting earnings of $1.12 per share and revenue of $613.8 million. Looking ahead, Cracker Barrel said it expects 2011 earnings of $3.95-$4.10 per share, compared to the consensus estimate for $4 per share.Finally, OfficeMax Inc. ([OMX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OMX&selected=OMX)) ) said that it expects its third-quarter adjusted income margin rate to be slightly higher than a year ago, due to tax benefits. The company had expected a lower margin. OfficeMax still expects same-store domestic sales to decline in the current quarter, but said that the results should favorably compare to the second quarter's 2.1% decline. **Earnings Preview** On the earnings front, Best Buy Co. Inc. ([BBY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BBY&selected=BBY)) ), The Kroger Co. ([KR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KR&selected=KR)) ), and Pall Corp. ([PLL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PLL&selected=PLL)) ) are slated 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** August retail sales could set the tone of trading today, and will be joined by July's business inventories. The New York Fed will release its report on September manufacturing activity tomorrow, which will be accompanied by August's industrial production and the weekly report on U.S. petroleum supplies. We'll get the weekly report on new jobless claims on Thursday, as well as the producer price index for August and the Philadelphia Fed's manufacturing report. Finally, the Labor Department will deliver the August consumer price index on Friday, while the University of Michigan will give its first peek at consumer sentiment in September. **Market Statistics** Equity option activity on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) saw 1,251,676 call contracts traded on Monday, compared to 645,382 put contracts. The resultant single-session put/call ratio arrived at 0.52, while the 21-day moving average slipped to 0.62. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100914ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100914ov2.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/2010/100914ov3.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 poor shape 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 0.07%. In Asia, Japanese shares rebounded from heavier losses after Japanese Prime Minister Naoto Kan survived a party leadership challenge from Ichiro Ozawa. Still, most regional indexes finished flat to lower. In Europe, stocks headed lower in choppy trading, as a sharp drop in Germany's ZEW business sentiment gauge weighed on the region. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100914ov4.gif)**Currencies and Commodities** With Wall Street a bit nervous ahead of today's August retail sales data, the U.S. dollar is receiving a renewed safe-haven bid this morning. At last check, the U.S. Dollar Index was up 0.10% at 81.99. Gold is also popular in pre-market trading, with the lead contract rising $8.80 to $1,255.90 in London. Finally, crude is headed lower, with the most active contract slipping 48 cents to $77.55 per barrel. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100914ov5.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/2010/100914ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100914ov7.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: 47.4652
Stock Price 2 days before: 48.3016
Stock Price 1 day before: 48.3214
Stock Price at release: 49.928
Risk-Free Rate at release: 0.0011
| 52.2444 |
Symbol: PNNT
Security: PennantPark Investment Corporation
Related Stocks/Topics: Markets|GOOG|INSP|NLY
Title: 3 Stocks with Yields Above 10%
Type: News
Publication: Tom Hutchinson
Publication Author: Unknown
Date: 2010-09-15 05:45:00
Article: A 10% [yield](http://investinganswers.com/term/yield-1406) is high in any market. In today's market, it's stratospheric. The S&P 500 is only yielding 2% and a three-year CD currently pays about 1.77% on average.Is a 10% yield too good to be true?Often it is. A yield that high usually just means that the stock price has plummeted because of deteriorating [earnings](http://investinganswers.com/term/earnings-1514) and fundamentals. But, could there be 10% yields out there with strong earnings and fundamentals behind them? If so, they are a tremendous find in today's flat markets. After all, a 10% yield not only provides an income but also gives investors a +10% return per year, even if the stock price does nothing. That beats the S&P 500's return during the past 10 years by about 11% per year. There are special risks and opportunities associated with these high [dividend](http://investinganswers.com/term/dividend-1304) payers. But, here are three high yielders worth a second look. **PennantPark Investment Corp (Nasdaq: PNNT)** is an interesting high yield play from the world of business development companies (BDCs). This company makes money by finding promising medium-sized private companies in need of capital and loaning them money at high rates of interest.BDCs are strong dividend payers because they do not pay income taxes at the corporate level. PennantPark has paid steadily rising quarterly dividends since its [IPO](http://investinganswers.com/term/initial-public-offering-ipo-1076) in 2007 and the last payment increased in April to $0.26 per share. At the current rate, the stock yields a not-too-shabby 10%.Can the company keep it up?Lately, PennantPark has been raising money to grow earnings in the [capital markets](http://investinganswers.com/term/capital-markets-1429) . A recent offering of 4.6 million shares diluted existing shareholding by about 14.6%. That means the [BDC](http://investinganswers.com/term/business-development-company-bdc-925) has to pay out 14.6% more in dividends just to maintain the current one.But the company might be able to pull it off. Prior to this latest offering, PennantPark has issued stock in the past year that had diluted shareholdings to the tune of 50%. But the BDC has managed to use the money raised to generate returns sufficient to pay the extra dividend. In the third fiscal quarter (June), net investment income (from which dividends are paid) increased +56% from the year ago quarter to $8.9 million. Pennant Park should be able to earn sufficient income to maintain the dividend if demand for new loans remains fairly strong in a decent recovery. However, if the [economy](http://investinganswers.com/term/economy-1517) falters, the dividend may well be cut. The stock and its mouthwatering dividend is primarily a play on recovery at this point. **IncrediMail Ltd. (Nasdaq: MAIL)** is an Israel-based company that develops software for customized email and other personal desktop applications used to generate Internet search-related revenue. The company pays two dividends a year. The last dividend, paid in April, was $0.43 a share, and the next dividend, to be paid in October, has been declared at $0.45. The two dividends of $0.98 give the stock a huge trailing yield of nearly 15.0% at current prices.IncrediMail sells personal desktop software in more than 100 countries and has contracts with **Google (Nasdaq: GOOG)** and **InfoSpace (Nasdaq: INSP)** to share in Internet search revenue. The company has been having solid success. Revenue increased +8.3% ($14.2 million) in the first half of 2010 compared to last year's half, and net profit was higher by +15% over the same period.While IncrediMail has a policy of paying out at least half of [net income](http://investinganswers.com/term/net-income-808) in dividends, it's been paying out nearly all of it. In the first half of the year, the company paid $0.45 based on net income of $0.46 a share. However, the company has a cash cushion of about $11.3 million (the second half's dividends totaled $4.4 million) and has no debt. **Annaly Capital Management ([NLY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NLY&selected=NLY)) )** is a New York City based [real estate investment trust (REIT)](http://investinganswers.com/term/real-estate-investment-trust-reit-1169) that invests in a portfolio of [mortgage](http://investinganswers.com/term/mortgage-1608) securities backed by government sponsored entities (GSE) like Fannie Mae and [Freddie Mac](http://investinganswers.com/term/federal-home-loan-mortgage-corporation-freddie-mac-999) . The company borrows funds at lower short term rates and invests those funds in higher paying mortgage backed securities, thus making profit on the spread. In the second quarter, Annaly's earnings took a hit. Core earnings were $0.59 a share, compared to $0.66 a share in the year ago quarter. The primary reason for lower earnings was higher prepayment caused by the government's program to buy back loans more than 90 days delinquent. Annualized prepayment rates at Annaly rose to 32% from 19% a year ago. Annaly was unable to invest the money at comparable interest rates and, as a result, average yield on assets dropped as did the REIT's spread and profits.Including the July dividend of $0.68, the last four quarterly dividends have totaled $2.76 a share, which translates to a remarkable 15% yield at current prices. The company did pay slightly more in dividends than it earned in the second quarter, but the government program ended in June, and results are likely to improve.The main danger to this dividend is rising interest rates. The company makes profits on the spread, which is directly affected by its cost of borrowing. However, higher interest rates don't appear on the horizon at this point. **Action To Take -->** Any stock yielding as high as 10% will carry a fair degree of risk. For the more aggressive part of an income portfolio, investors can consider Annaly in the short term and IncrediMail and PennantPark for longer term.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- Tom HutchinsonTom has a 15-year history as a financial advisor with UBS constructing investment portfolios. Tom's background includes a NASD Series 7 and 63 certifications... Read more...Disclosure: Neither Tom Hutchinson nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/3-stocks-yields-above-10-456561) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
Stock Price 4 days before: 10.2383
Stock Price 2 days before: 10.3264
Stock Price 1 day before: 10.4162
Stock Price at release: 10.4984
Risk-Free Rate at release: 0.0011
| 11.1722 |
Symbol: BZH
Security: Beazer Homes USA, Inc.
Related Stocks/Topics: CBOE|Markets|MA
Title: Opening View: DJIA Bulls Hit Pause; Japan Puts Brakes on Yen
Type: News
Publication: Schaeffer
Publication Author: Unknown
Date: 2010-09-15 07:47:00
Article: The Dow Jones Industrial Average (DJIA) ended its winning streak at four in a row on Tuesday, closing a lackluster session with an 18-point loss. The blue chip barometer enters today trading above support at the 10,500 level, though the Dow may test this region early in today's trading, as futures on the DJIA are trading 15 points below fair value. The S&P 500 Index (SPX), meanwhile, finished its second consecutive session above its 200-day moving average, despite following the Dow lower on Tuesday. That said, SPX futures are indicating an opening loss of about 2.8 points, meaning that the index could test this region shortly after the open. Meanwhile, Wall Street will be closely watching for additional moves out of Japan, after the country finally intervened in the currency markets to halt the yen's meteoric rise versus the U.S. dollar. Ripple effects from Japanese intervention have sent commodities tied to the greenback sharply lower. As such, a stronger-than-expected rise in U.S. petroleum supplies at 10:30 a.m. Eastern could sink the already struggling sector.In equity news, Beazer Homes USA Inc. ([BZH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BZH&selected=BZH)) ) lowered its new home orders guidance for the year, citing a slower-than-expected improvement in orders. The company said it needs to book 767 orders in the final quarter to match the year-earlier total of 4,205. "Although housing affordability is at record levels, prospective home buyers continue to exercise caution in committing to a home purchase transaction," Beazer said. The company has originally said that fiscal 2010 orders would be above the previous year's level, despite the expiration of a home-buyer tax credit in April. Elsewhere, MasterCard Inc. ([MA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MA&selected=MA)) ) said that its board of directors approved a $1 billion Class A common share repurchase program. The authorization is effective immediately, the company said. "This stock repurchase program is the result of a periodic review of our capital structure, and is enabled by MasterCard's strong and consistent cash flow," Ajay Banga, chief executive of MasterCard, said in a statement. **Earnings Preview** On the earnings front, CLARCOR Inc. ([CLC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CLC&selected=CLC)) ) and The Dress Barn Inc. ([DBRN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DBRN&selected=DBRN)) ) are slated 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 New York Fed will release its report on September manufacturing activity this morning, which will be accompanied by August's industrial production and the weekly report on U.S. petroleum supplies. We'll get the weekly report on new jobless claims tomorrow, as well as the producer price index for August and the Philadelphia Fed's manufacturing report. Finally, the Labor Department will deliver the August consumer price index on Friday, while the University of Michigan will give its first peek at consumer sentiment in September. **Market Statistics** Equity option activity on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) saw 1,290,557 call contracts traded on Tuesday, compared to 787,495 put contracts. The resultant single-session put/call ratio arrived at 0.61, while the 21-day moving average held at 0.62. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100915ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100915ov2.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/2010/100915ov3.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 mixed this morning, with Asian stocks rallying in the wake of Japanese intervention in the currency markets, while European shares are being dragged lower by falling commodities. At last check, only four of the 10 foreign indexes that we track were in positive territory, with a cumulative average return of 0.04%. Japanese exporters surged after the yen pulled back from 15-year highs versus the U.S. dollar. Finance Minister Yoshihiko Noda confirmed intervention in the foreign-exchange markets but didn't specify the amount of money involved. However, the falling yen provided lift for the U.S. dollar, and, consequently, drag for commodities. Already troubled by falling German business-sentiment data, European markets are following commodities-related stocks lower. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100915ov4.gif)**Currencies and Commodities** Following the intervention of Japanese authorities, the U.S. dollar rebounded from 15-year lows versus the yen. The move helped lift the greenback to ¥85.07 from yesterday's low of ¥82.85. The U.S. Dollar Index was also pressured higher, rising 0.73% in pre-market trading to hover near 81.67. Commodities, however, fell following the dollar's rise. Gold futures have slipped $1.70 to $1,270 an ounce, down from Tuesday's record high. Finally, crude futures have been hit hard by the rally in the U.S. dollar, with the lead contract off $1.04 to $76.79 per barrel. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100915ov5.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/2010/100915ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100915ov7.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: 4.3987
Stock Price 2 days before: 4.48865
Stock Price 1 day before: 4.62707
Stock Price at release: 4.38689
Risk-Free Rate at release: 0.0011
| 4.44615 |
Symbol: LE
Security: Lands' End, Inc.
Related Stocks/Topics: DHI|Markets|BAC|PHM|JPM|C
Title: Timing Is Everything
Type: News
Publication: Ted Allrich
Publication Author: Unknown
Date: 2010-09-15 12:16:00
Article: When Russell Sage was asked how to to become wealthy, he replied: Buy straw hats in the winter. Who was Russell Sage? A Congressman from New York who was also a Wall Street financier who died with $70 million....in 1906. His (sage) advice still works today, especially for stocks.If you can buy stocks when they're out of season, or more likely, out of favor, you've got a much better chance of making money than when everyone else is jumping on the band wagon. The key item to remember is this: there are four seasons in a year....every year, and when you buy straw hats in the winter (on sale no doubt), you know summer will be coming and their price will go higher. There are no seasons in the stock market. A stock out of favor now could stay that way for a long, long, long time. Even go bankrupt. So don't believe that a "cheap" stock now will automatically become valuable later. Having raised the caveat flag, there is every reason to heed Mr. Sage's wisdom. A stock out of favor often comes back, especially when it is being sold because its industry is scorned even if the stock continues to increase earnings.Right now, a great example of that is the banking industry. There are many solid banks that continue to do well in this economy that have seen their prices go down dramatically because the largest banks have had large losses. The assumption is that when the industry leaders are in trouble, all stocks in the group are in trouble....or will be. But that is not the case every time.The largest banks (Citibank (C), Bank of America (BAC), JP Morgan Chase (JPM)) are international in scope with wide ranging products and services, everything from investment banking to checking, from foreign exchange to mortgages. They make money where they can in all financial transactions.Compare those to regional or community banks. These banks have much narrower focuses. They tend to stay close to home and offer fewer products, not necessarily fewer services. Their assets are usually single family or commercial or multi-family mortgages. They know their communities or regions well and have many branches to serve their client base. Many have gotten into big trouble because they are limited in their reach. If their area has been particularly hard hit by the recession, they can't make loans in healthy areas. They can buy securities such as mortgage backed bonds but they don't generate fees or have the yields that local loans do.But there are many banks in good pockets of the country that are doing very well, have good growth, pay a decent dividend that is safe. Those banks are still solid investments and have been tarred with the same brush as all banks. Finding those will pay handsomely when banks come back into favor.....and they will. An example: NB & T Financial Group (NBTF), a regional bank in southeast Ohio that earned $2.84 a share last year. The dividend yield is 6%. Another industry out of favor: housing....and with good reason. There's nothing positive in the headlines about this sector. But for investors, it's a group that deserves close attention. Whoever is left has survived the worst economic recession in 70 years. Management has been able to keep building, keep the doors open, even in these tough times. Housing will be back. The question is when. No one can foretell. But when lending loosens a little more, unemployment drops, and consumers feel it's safe to spend again, housing will be one of the first beneficiaries of better times. Investigating the strongest survivors in the housing market should be a good way to spend time. Names like D.R. Horton (DHI) Lennar (LE) and PulteGroup (PHM) seem worthy.You get the picture: stocks that other investors are selling may be treasures within a year or so....maybe sooner. No one can give good timing. But if you look where everyone else isn't, you can discover good stocks that will most likely again be crowd favorites. Patience is required.- Ted AllrichSeptember 14, 2010
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: 0.0011
| 0 |
Symbol: PAR
Security: PAR Technology Corporation
Related Stocks/Topics: Markets|AMZN|AKAM|T
Title: A Great Time to Short This Overvalued Stock
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-09-15 12:20:00
Article: Investors have got the fever. After seeing **3PAR ([PAR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PAR&selected=PAR)) )** jump from $10 to $30 a share and **ArcSight (Nasdaq: ARST)** zoom ahead from $25 to $43 in the last month, they are pushing up shares of any name they think might be the recipient of the next sweet [buyout](http://investinganswers.com/term/buyout-949) offer. And now investors have set their sights on **Akamai Technologies (Nasdaq: AKAM)** , pushing its shares up from below $40 in late July to a recent $51. Trouble is, shares were likely [overvalued](http://investinganswers.com/term/overvalued-837) before that surge began, and are now very overvalued when measured against the fundamentals. If a suitor doesn't emerge -- and it's not clear that one will -- then shares could give back all of the recent gains. ****A CDN pioneerAkamai helps major web sites provide very fast response times to users located anywhere in the world. If you're downloading a popular video in Madrid, there's a decent chance that a local Akamai server is serving up that file, eliminating the need to transmit that content over long distances while the user sits and waits. And in recent years, the company has developed other software tools to help customers stay on the cutting edge with its Content Delivery Network (CDN). As consumers looked to consume more media and entertainment online, demand for Akamai's services exploded, helping sales rise at an average of more than +30% per year from 2004 to 2008. But success -- and an increasingly large industry opportunity -- has a way of attracting new competition. And that began happening in recent years, which helps explain why growth cooled to less than +10% in 2009. Akamai's shares, which hit $50 in early 2007, fell below $15 in late 2008 as investors realized that the CDN industry had become crowded and very cost-competitive. **A 2010 and 2011 rebound** Akamai is once again on the upswing as renewed industry growth, along with a push into ancillary services, is offsetting a steady decrease in CDN pricing. (These companies get paid monthly fees for providing CDN services, and contracts are usually renewed at ever-lower prices). The favorable industry trends are likely to push Akamai's sales up nearly +20% this year and another +15% in 2011.But more headwinds loom. Companies such as **Amazon.com (Nasdaq: AMZN)** are vowing to make a bigger push into the CDN business, and major telecom operators such as **AT&T ([T](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=T&selected=T)) )** also realize that their networks are ideally suited to carry higher volumes of CDN traffic. As a rule of thumb in this industry, increased competition invariably leads to faster CDN pricing declines.None of this suggests that Akamai is in real trouble. Demand for CDN services will keep growing, the company has a very strong [balance sheet](http://investinganswers.com/term/balance-sheet-1083) , and many of its customers are likely locked in for the long-haul. But this is not a great long-term story from a revenue growth perspective, thanks to those ever-present price decreases.Yet shares have zoomed ahead to levels that give the impression that Akamai is a young fast-growing upstart. Shares trade for more than 30 times next year's projected profits and close to 20 times EBITDA, on an [enterprise value](http://investinganswers.com/term/enterprise-value-806) basis. The shares are currently trading just below $51 -- analysts at Maxim Group think [fair value](http://investinganswers.com/term/fair-value-995) is closer to $35. Citigroup's analysts are slightly more bullish, assuming a $42 target price, noting that shares deserve to trade no higher than at 25 times next year's profits. **Action to Take -->** Shares of Akamai took a big hit in 2008 as investors realized that this is becoming an increasingly crowded business with real price pressures, so potential buyers are unlikely to pay much of a premium after the recent run-up. It's not even clear that any potential acquirer could justify buying the company now and make the deal work from an [EPS](http://investinganswers.com/term/earnings-share-eps-1003) growth perspective. For that matter, who knows if Akamai is in play at all?If you've been holding Akamai in your portfolio, this looks like a great time to exit that position. If no buyer emerges for the company in coming weeks and months, then shares are likely to move back toward those analyst price targets. Moreover, shares are so richly valued that they have created an excellent opportunity for shorts, which may see this stock move back below $40 as a deal fails to materialize. The main risk to the short thesis is an actual buyout, which again, appears unlikely.[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/great-time-short-overvalued-stock-456559) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
Stock Price 4 days before: 32.9171
Stock Price 2 days before: 32.9163
Stock Price 1 day before: 32.9219
Stock Price at release: 32.9255
Risk-Free Rate at release: 0.0011
| 0 |
Symbol: LEG
Security: Leggett & Platt, Incorporated
Related Stocks/Topics: JNJ|Markets|LLY|CINF|ADP|PPG|PBI|ABT
Title: 9 Stocks that Have Consistently Raised Dividends for 25 Years or More
Type: News
Publication: Carla Pasternak
Publication Author: Unknown
Date: 2010-09-16 11:26:00
Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photoAs income investors, we can get caught up in yields... almost to a fault. But there is something else you should be studying that could make just as big a difference to your long-term returns: [dividend](http://investinganswers.com/term/dividend-1304) growth. That's because dividend growth can make even lower-yielding stocks into big income producers over time. Take a look below at the income streams from a stock yielding 7% but not growing dividends, versus a 5% yielder that hikes payments +10% every year. If you held 1,000 shares trading at a $10 share price, here is the income stream each would produce over a year:In just five years, that 5% [yield](http://investinganswers.com/term/yield-1406) would actually be worth more than the 7% yield. And just two years later, your income stream would grow to be +27% more than the stock yielding 7%! Keep in mind, this doesn't take into account rising share prices. If both yields stayed the same, the share price of the 5% yielder would have to grow to $17.72 -- a +77% gain.Buying stocks that increase dividends allows you to take advantage of one of the most powerful tools in the investors' arsenal -- the wealth-building effect of [compounding](http://investinganswers.com/term/compounding-341) . And consistent dividend growth is like jet fuel for the compounding engine.But there are more advantages to companies able to consistently grow dividend payments. One often overlooked "plus" is that they tend to be safer investments. Dividends are a litmus test of a company's true financial strength. Only companies able to grow [earnings](http://investinganswers.com/term/earnings-1514) through good times and bad will commit to consistently raising dividends. And these are the types of business that tend to see more stability in their shares.The best measure of their value is how dividend growers perform over time. And the best proof lies in a special [index](http://investinganswers.com/term/index-971) created by Standard & Poor's, called the "Dividend Aristocrats." Every company on this list must that have posted increased dividends in each of the past 25 years. According to S&P data, the Dividend Aristocrats have consistently outperformed the broader S&P 500. Dividend Aristocrats fell only -22% during the 2008 market crash, much less than the -37% decline for the S&P 500. Moreover, the group rebounded +27% the following year, slightly better than the +26% gain on the S&P 500.As you would guess, the ranks of Dividend Aristocrats are exclusive -- only 42 of the 500 companies in the S&P made the list this year (about 8% of the index). I used this list of 42 companies as my starting point and then looked at nine companies that were raising payments the fastest:**Pitney Bowes ([PBI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PBI&selected=PBI)) )**Yield: 7.0%Pitney Bowes yields 7.0% and has recorded 28 consecutive years of dividend growth. Its business is boring -- it makes postage meters and mail processing equipment, but its dividend growth is anything but. Dividends have grown +10% a year since Pitney Bowes began paying investors in 1982. The 2010 increase of about +1.5% was a below average, but it did raise the annual payment to $1.46 per share. **Eli Lilly ([LLY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LLY&selected=LLY)) )**Yield: 5.5%Healthcare is less impacted by recession than other sectors, so it's no surprise to find multiple healthcare companies on the list of dividend growers. Eli Lilly is a leading global drug maker and has an uninterrupted record of roughly 40 years of dividend growth. In the last decade, Lilly has grown its dividend +8% a year. The company last increased the dividend by +3% to a $1.96 annual payment in 2009, meaning a dividend increase is likely in the next quarter if Eli Lilly wants to maintain its track record. **Cincinnati Financial Corp (Nasdaq: CINF)**Yield: 5.4%The only financial company that made the list above is property/casualty insurance provider, Cincinnati Financial. This company has raised dividends 49 years in a row, setting the stage for a wonderful half-century of increasing payments. Dividend increases of late have slowed in line with the overall economic outlook, but consider that in 1999 the company paid just about $0.60 a share, compared to today's $1.60 annual rate. **Leggett & Platt ([LEG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LEG&selected=LEG)) )**Yield: 5.0%Fixture and furniture manufacturer Leggett & Platt is seeing a rebound in its markets and signaled confidence in its future prospects in August by hiking the dividend +4% to a $1.08 per share annual rate. The company now boasts an impressive track record of 39 years of dividend growth. **Johnson & Johnson ([JNJ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JNJ&selected=JNJ)) )**Yield: 3.5%Johnson & Johnson's 3.7% yield isn't likely to "wow" you -- but remember the example above when it comes to growing dividend payments. The company has increased dividends 48 years in a row. The last increase, announced in April, boosted the dividend by +10% to a $2.16 annual rate. [ [Read my colleague Tom Hutchinson's take on JNJ](http://www.streetauthority.com/a/ignore-bond-bubble-and-follow-buffetts-lead-456535) ]**Abbott Labs ([ABT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ABT&selected=ABT)) )**Yield: 3.4%Drug manufacturer Abbott Labs has grown dividends for 38 years running. Like Johnson & Johnson, it's another medical company that doesn't pay a high "headline" yield, but it can grow payments. In the past decade, dividend growth has averaged nearly +9% a year. The last hike, announced in February, was a +10% increase. Abbot now pays a $1.76 annual dividend, up from just $0.74 in 2000. **Automatic Data Processing (Nasdaq: ADP)**Yield: 3.3%Automatic Data Processing provides payroll processing services to thousands of businesses nationwide. Even with unemployment now at a high, this company has been able to hike dividends every year for 35 years straight. The last increase raised the payment by +3% to a $1.36 annual rate. In the past decade, annual dividend growth has been an impressive +15%. **McGraw-Hill ([MHP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MHP&selected=MHP)) )**Yield: 3.1%You might not know it, but McGraw-Hill actually owns Standard & Poor's, so it is only fitting this company makes S&P's Dividend Aristocrats list. McGraw-Hill's ranking comes thanks to 37 straight years of dividend growth. In the last decade, dividends have grown +7% a year. This includes the last dividend hike, announced in January, to a $0.94 annual rate. **PPG Industries ([PPG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PPG&selected=PPG)) )**Yield: 3.1%PPG Industries is a new member to the list, with "only" 25 years of dividend increases -- but it has paid 448 consecutive dividends. This maker of sealants and window coatings also stands out as the only Dividend Aristocrat to raise dividends twice in the past year. The last hike in July was by a penny per quarter to a $2.20 annual rate. **Action to Take -->** Before investing in any of the ideas above, I would want to examine each in more detail, considering factors like business outlook and financial strength. Still, the combination of dividend increases and a solid yield makes this list an interesting starting point for further research. [Image](http://www.streetauthority.com/images/hy/carla-sig-06-06.gif)-- Carla PasternakCarla Pasternak has nearly 30 years of income investing experience, including serving as the Director of Research for High-Yield Investing and High-Yield International. Read More...Disclosure: Neither Carla Pasternak nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/9-stocks-have-consistently-raised-dividends-25-years-or-more-456562) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
Stock Price 4 days before: 21.3701
Stock Price 2 days before: 21.5367
Stock Price 1 day before: 21.5546
Stock Price at release: 21.4237
Risk-Free Rate at release: 0.0012
| 23.8127 |
Symbol: PBI
Security: Pitney Bowes Inc.
Related Stocks/Topics: JNJ|Markets|LLY|LEG|CINF|ADP|PPG|ABT
Title: 9 Stocks that Have Consistently Raised Dividends for 25 Years or More
Type: News
Publication: Carla Pasternak
Publication Author: Unknown
Date: 2010-09-16 11:26:00
Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photoAs income investors, we can get caught up in yields... almost to a fault. But there is something else you should be studying that could make just as big a difference to your long-term returns: [dividend](http://investinganswers.com/term/dividend-1304) growth. That's because dividend growth can make even lower-yielding stocks into big income producers over time. Take a look below at the income streams from a stock yielding 7% but not growing dividends, versus a 5% yielder that hikes payments +10% every year. If you held 1,000 shares trading at a $10 share price, here is the income stream each would produce over a year:In just five years, that 5% [yield](http://investinganswers.com/term/yield-1406) would actually be worth more than the 7% yield. And just two years later, your income stream would grow to be +27% more than the stock yielding 7%! Keep in mind, this doesn't take into account rising share prices. If both yields stayed the same, the share price of the 5% yielder would have to grow to $17.72 -- a +77% gain.Buying stocks that increase dividends allows you to take advantage of one of the most powerful tools in the investors' arsenal -- the wealth-building effect of [compounding](http://investinganswers.com/term/compounding-341) . And consistent dividend growth is like jet fuel for the compounding engine.But there are more advantages to companies able to consistently grow dividend payments. One often overlooked "plus" is that they tend to be safer investments. Dividends are a litmus test of a company's true financial strength. Only companies able to grow [earnings](http://investinganswers.com/term/earnings-1514) through good times and bad will commit to consistently raising dividends. And these are the types of business that tend to see more stability in their shares.The best measure of their value is how dividend growers perform over time. And the best proof lies in a special [index](http://investinganswers.com/term/index-971) created by Standard & Poor's, called the "Dividend Aristocrats." Every company on this list must that have posted increased dividends in each of the past 25 years. According to S&P data, the Dividend Aristocrats have consistently outperformed the broader S&P 500. Dividend Aristocrats fell only -22% during the 2008 market crash, much less than the -37% decline for the S&P 500. Moreover, the group rebounded +27% the following year, slightly better than the +26% gain on the S&P 500.As you would guess, the ranks of Dividend Aristocrats are exclusive -- only 42 of the 500 companies in the S&P made the list this year (about 8% of the index). I used this list of 42 companies as my starting point and then looked at nine companies that were raising payments the fastest:**Pitney Bowes ([PBI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PBI&selected=PBI)) )**Yield: 7.0%Pitney Bowes yields 7.0% and has recorded 28 consecutive years of dividend growth. Its business is boring -- it makes postage meters and mail processing equipment, but its dividend growth is anything but. Dividends have grown +10% a year since Pitney Bowes began paying investors in 1982. The 2010 increase of about +1.5% was a below average, but it did raise the annual payment to $1.46 per share. **Eli Lilly ([LLY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LLY&selected=LLY)) )**Yield: 5.5%Healthcare is less impacted by recession than other sectors, so it's no surprise to find multiple healthcare companies on the list of dividend growers. Eli Lilly is a leading global drug maker and has an uninterrupted record of roughly 40 years of dividend growth. In the last decade, Lilly has grown its dividend +8% a year. The company last increased the dividend by +3% to a $1.96 annual payment in 2009, meaning a dividend increase is likely in the next quarter if Eli Lilly wants to maintain its track record. **Cincinnati Financial Corp (Nasdaq: CINF)**Yield: 5.4%The only financial company that made the list above is property/casualty insurance provider, Cincinnati Financial. This company has raised dividends 49 years in a row, setting the stage for a wonderful half-century of increasing payments. Dividend increases of late have slowed in line with the overall economic outlook, but consider that in 1999 the company paid just about $0.60 a share, compared to today's $1.60 annual rate. **Leggett & Platt ([LEG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LEG&selected=LEG)) )**Yield: 5.0%Fixture and furniture manufacturer Leggett & Platt is seeing a rebound in its markets and signaled confidence in its future prospects in August by hiking the dividend +4% to a $1.08 per share annual rate. The company now boasts an impressive track record of 39 years of dividend growth. **Johnson & Johnson ([JNJ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JNJ&selected=JNJ)) )**Yield: 3.5%Johnson & Johnson's 3.7% yield isn't likely to "wow" you -- but remember the example above when it comes to growing dividend payments. The company has increased dividends 48 years in a row. The last increase, announced in April, boosted the dividend by +10% to a $2.16 annual rate. [ [Read my colleague Tom Hutchinson's take on JNJ](http://www.streetauthority.com/a/ignore-bond-bubble-and-follow-buffetts-lead-456535) ]**Abbott Labs ([ABT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ABT&selected=ABT)) )**Yield: 3.4%Drug manufacturer Abbott Labs has grown dividends for 38 years running. Like Johnson & Johnson, it's another medical company that doesn't pay a high "headline" yield, but it can grow payments. In the past decade, dividend growth has averaged nearly +9% a year. The last hike, announced in February, was a +10% increase. Abbot now pays a $1.76 annual dividend, up from just $0.74 in 2000. **Automatic Data Processing (Nasdaq: ADP)**Yield: 3.3%Automatic Data Processing provides payroll processing services to thousands of businesses nationwide. Even with unemployment now at a high, this company has been able to hike dividends every year for 35 years straight. The last increase raised the payment by +3% to a $1.36 annual rate. In the past decade, annual dividend growth has been an impressive +15%. **McGraw-Hill ([MHP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MHP&selected=MHP)) )**Yield: 3.1%You might not know it, but McGraw-Hill actually owns Standard & Poor's, so it is only fitting this company makes S&P's Dividend Aristocrats list. McGraw-Hill's ranking comes thanks to 37 straight years of dividend growth. In the last decade, dividends have grown +7% a year. This includes the last dividend hike, announced in January, to a $0.94 annual rate. **PPG Industries ([PPG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PPG&selected=PPG)) )**Yield: 3.1%PPG Industries is a new member to the list, with "only" 25 years of dividend increases -- but it has paid 448 consecutive dividends. This maker of sealants and window coatings also stands out as the only Dividend Aristocrat to raise dividends twice in the past year. The last hike in July was by a penny per quarter to a $2.20 annual rate. **Action to Take -->** Before investing in any of the ideas above, I would want to examine each in more detail, considering factors like business outlook and financial strength. Still, the combination of dividend increases and a solid yield makes this list an interesting starting point for further research. [Image](http://www.streetauthority.com/images/hy/carla-sig-06-06.gif)-- Carla PasternakCarla Pasternak has nearly 30 years of income investing experience, including serving as the Director of Research for High-Yield Investing and High-Yield International. Read More...Disclosure: Neither Carla Pasternak nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/9-stocks-have-consistently-raised-dividends-25-years-or-more-456562) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
Stock Price 4 days before: 20.0966
Stock Price 2 days before: 20.53
Stock Price 1 day before: 20.6683
Stock Price at release: 20.7412
Risk-Free Rate at release: 0.0012
| 36.4843 |
Symbol: AMSC
Security: American Superconductor Corporation
Related Stocks/Topics: Markets|SOL
Title: China Tops U.S. in Energy Consumption
Type: News
Publication: Brendan Coffey
Publication Author: Unknown
Date: 2010-09-16 11:42:00
Article: Recently, word came out about something that has not happened in over a century: The United States is no longer the world's largest energy consumer. That, held by the U.S. since at least the first decade of the 20th century, now goes to China, which used a total of 2.25 billion tons of oil equivalent energy in 2009. The U.S. used 2.17 billion tons, according to the International Energy Agency.In the time the U.S. has been the predominant energy consumer, U.S. Gross National Product (GNP) grew from $737 billion (all figures are in today's dollars) to $14.7 trillion today and GNP per person from $6,629 to $47,240. It's no surprise that increased energy used to build railroads then factories and, more recently, medical and technology hubs fueled that growth. We don't know what China's GNP was in 1900, but in 1980 it was $632 billion, while last year it topped $7.96 trillion. As in the U.S., there is also a close correlation between China's economic growth and its rising energy use. In 1980, China used the equivalent of 610 kilograms of oil per person, while last year the country used 1,570 kilograms per person.At the risk of throwing too many numbers at you, I want to point out just two more that I think are telling: China's per capita GNP last year was $6,010, just 13% of America's. The U.S. used five times more energy per person than China did last year, a whopping 7,700 kilograms. The question is: What happens to energy usage as Chinese GNP continues to grow and the average person there gains the comforts of the Western lifestyle, from flat panel televisions to cars to fully heated homes? The answer is obvious: China's energy usage is going to continue to grow sharply.China's government recognizes this too. It also sees two problems on the horizon related to its growth: Tight world oil supplies and environmental troubles. By 2020, China is expected to import as much oil as the U.S., a significant shift considering that less than 20 years ago, China was a major oil exporter. While China could burn more of its massive coal reserves to make up the difference, its air quality is already so bad officials are in the midst of shutting down the dirtiest factories and coal plants. A New Yorker columnist noted last year that Beijing's air quality frequently hits 500 on a scale of 1 to 500, with 1 being the cleanest air. By contrast, U.S. cities consider their air dirty at 100, rarely hitting as high as 300 and then only when surrounded by forest fires.For those reasons-fast growth, tight oil supplies and dire air quality-the Chinese government has launched a plan for a massive renewable energy program that aims to generate 15% of its energy needs from Green energy by 2020. And that 15% is just the official target. Between 18% and 20% is the unofficial target bandied about by officials in Chinese state-controlled media, with some Westerners in China saying they hear the true goal is as high as 30%.It almost goes without saying that if China comes close to even its official 15% figure, it will make the Red Dragon a Green dragon too. By official Chinese goals for solar, annual installation will need to quintuple in the next nine-and-a-half years to 1.8 GW, wind will need to grow nearly 10-fold to 150 GW capacity from 16 GW in 2009, nuclear will need to grow almost 1,000% and the country's already extensive hydroelectric capacity will have to double. China will be investing at least $1 trillion to fund Green power growth this decade. China isn't the only country legislating a greater percentage of renewables be a part of its energy mix. The European Union, currently the world's largest solar power market by far (Germany alone is a 3 GW annual market), still gets just 7% of its energy from Green power. It has mandated that by 2020, one-fifth of its power come from renewables.Here in the U.S., we don't have a firm federal standard and the government is spending just $5 billion on Green research and development. Still, bellwether states have mandated their own standards. California, for instance, is aiming to get 33% of it energy from renewable sources by 2020 (up from 12% today), New York is aiming for 29% by 2020 from 3% today, and Colorado is setting it sights on 33% by 2020 from 6%, according to National Public Radio.--- Advertisement ---Cabot's Elite Stock Research ServiceAs you read this, tomorrow's 1,000-bagger stocks are already trading on the Nasdaq, NYSE and Amex. Stocks that have many of the qualities seen in the top five performing stocks of the last decade: Medifast … UP 16,209%, Hansen Natural … UP 7,023% and Southwestern Energy … UP 5,776%!And only one investment newsletter has the radar to detect them and the hedge-fund level research to vet them. It's an exclusive service celebrating its third anniversary, which means we're rolling back the price. But hurry, this offer is only good until October 1! [Get started now.](http://www.cabot.net/info/csc/csckj05.aspx?source=wv1)---A popular saying around the Green investing world right now is that Green stocks are at the same stage as Microsoft was when it released Windows 1.0 or where Motorola was when it rolled out its $4,000 DynaTac mobile phone. With mandates like these in the world's three largest economies, that hardly seems an exaggeration. Today I have two suggestions for stocks that are already experiencing the initial wave of all that investment. One is a Chinese solar maker with a good European client base; the other is an American company with a dominant foothold in the Chinese wind industry.The solar company is ReneSola ([SOL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SOL&selected=SOL)) ), a solar wafer maker that is vertically integrated, meaning the company controls its product line from sourcing its own polysilicon through fashioning its own solar panels. It's a fast-growing company that has gone from its founding in 2005 to being the third-largest maker of solar wafers in the world this year.Margins are improving as the cost of the raw material for panels has been falling sharply. Its other costs are dropping too, thanks to manufacturing efficiencies (its producing larger wafers) and more energy-efficient factories (slashing high electric costs). ReneSola expects to hit record sales this year of $795 million and I expect it to do even better at around $1 billion in sales for 2010. Cabot Green Investor bought ReneSola shares at 7.45 in July, and shares have since rallied 40% to over 10. With estimated earnings of $1.26 per share for the current year, ReneSola shares are still cheap at just eight times earnings.The other company is American Superconductor ([AMSC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMSC&selected=AMSC)) ). It's a Massachusetts-based maker of highly conductive utility-grade cable being used everywhere from the Tres Amigas project in New Mexico to better interlink the U.S. electrical grid to Seoul, Korea's grid as part of that country's $80 billion five-year plan to invest in Green energy.Those are excellent deals, but the real value in American Superconductor is its burgeoning business designing wind turbines, which grows out of a small Austrian design firm it purchased a few years ago. Among its 12 major turbine customers are five Chinese companies, including Sinovel, the dominant leader in turbines in China. As part of all of American Superconductor's licensing deals in China and elsewhere, it has the right to sell the electrical systems for every turbine built, a business model like the razor/razor blade model that built Gillette so successfully. Since the start of 2008, the company has had 13 straight quarters of increasing sales. It also boasts six straight quarters of net income and for its fiscal 2010, which started April 1 of this year, management projects sales growth over 30% to $430 million with net income surging 75% to $1.25 a share. The Cabot Green Investor model portfolio bought AMSC in May 2009 and sold in February 2010 during the market correction, making a profit of 40% on the position. We bought the stock again this April at 31. It's down a little, at 29, which makes for an attractive entry point.The market has held both stocks down out of concern that a double-dip recession is coming. Whether or not it is (and I'm with Warren Buffet in believing it's not coming), the Green rally is only just starting.[Click here to learn more](http://www.cabot.net/info/cgi/cgiki12.aspx?source=wv01) about ReneSola, American Superconductor and other leading stocks featured in Cabot Green Investor.All the best,Brendan CoffeyFor Cabot Wealth AdvisoryP.S. This week brought the first episode of the Cabot Chart School by Cabot Market Letter Editor Michael Cintolo. [Watch the video](http://www.cabot.net/Videos/Cabot-Chart-School/2010/CCS-091510.aspx?source=wv01) to learn how to read stock charts like a professional investor!
Stock Price 4 days before: 29.1699
Stock Price 2 days before: 29.4076
Stock Price 1 day before: 28.9991
Stock Price at release: 28.8584
Risk-Free Rate at release: 0.0012
| 35.8317 |
Symbol: GSM
Security: Ferroglobe PLC
Related Stocks/Topics: Markets
Title: New Dividend Stock Added to Database (GSM)
Type: News
Publication: Dividend.com
Publication Author: Unknown
Date: 2010-09-20 06:29:00
Article: We are adding shares of Globe Specialty Metals ([GSM](http://www.dividend.com/dividend-stocks/basic-materials/industrial-metals-and-minerals/gsm-globe-specialty-metals/)) ) to our database of nearly 1600 dividend-paying stocks, following news the company has initiated a dividend payout.Globe Specialty Metals ([GSM](http://www.dividend.com/dividend-stocks/basic-materials/industrial-metals-and-minerals/gsm-globe-specialty-metals/)) ) - This company produces silicon metal and silicon-based alloys. The company offers chemical and metallurgical grade silicon metal, which is used as a raw material in making silicone compounds, aluminum, and polysilicon. It also produces silicon-based alloy products, including ferrosilicon; magnesium-ferrosilicon-based alloys known as nodularizers; ferrosilicon-based alloys known as inoculants; calcium silicon; and cored wire alloys, silicomanganese, and silica fume. Globe Specialty Metals, Inc. serves silicone chemical, aluminum, and steel manufacturers, as well as auto companies and their suppliers, ductile iron foundries, manufacturers of photovoltaic solar cells and computer chips, and concrete producers. The company operates in the United States, Brazil, Argentina, the People's Republic of China, and Poland. It also manufactures carbon and graphite electrodes for its own plants, and other silicon metal and alloy producers, primarily in Asia. The company was formerly known as International Metal Enterprises, Inc. and changed its name to Globe Specialty Metals, Inc. in November 2006. Globe Specialty Metals, Inc. was incorporated in 2004 and is headquartered in New York, New York. 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: 12.5745
Stock Price 2 days before: 13.7582
Stock Price 1 day before: 13.8689
Stock Price at release: 13.8735
Risk-Free Rate at release: 0.0012
| 14.925 |
Symbol: DK
Security: Delek US Holdings, Inc.
Related Stocks/Topics: Markets|COP|GTE|BP
Title: Oil Nudges Up Ahead of FOMC; Gold Continues to Reach Record Highs Amid Anxieties
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-09-20 07:52:00
Article: Oil is on the rise in early morning trade as market eyes turn to the FOMC meeting Tuesday. Meanwhile, with fewer hurricanes being expected this season, inventories are seen to increase while demand is projected not to be as strong as once expected.Gold is up slightly as the yellow metal continues to hit new highs amid concerns about global economic growth prospects. Yet most analysts are expecting the precious metal to be little changed as gains are seen to be capped by profit-taking. At 0755 ET, Brent crude is up 0.1% at $78.24 a barrel, while light sweet crude is up 0.1% at $73.76 a barrel, and natural gas is down 1.5% at $3.96 a million British thermal units.Gold is up 0.4% at $1,282.80 an ounce, while silver is up 0.7% at $20.97 an ounce, and copper is up 0.4% at $3.54 a pound.While BP plc ([BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP)) ) has killed the oil well spill in the Gulf of Mexico once and for all over the weekend, the company said it has already paid out 19,000 claims totaling $240 million. BP's Gulf Coast Claims Facility has set aside $20 billion to compensate fishermen, retailers, hotel owners, and other businesses that have been hurt economically by the worst environmental disaster in U.S. history. Total cost of cleaning up the spill has reached $9.5 billion to date.Gran Tierra Energy Inc ([GTE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GTE&selected=GTE)) ) will buy a 20% stake in three exploration blocks operated by a unit of ConocoPhillips Inc ([COP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=COP&selected=COP)) ) in Peru.The sulfur recovery unit of Delek US Holdings Inc's ([DK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DK&selected=DK)) ) refinery in Tyler, Texas, had a mechanical malfunction. Delek said it used "sulfur shedding procedures" to deal with pollution beyond licensed levels at the 58,000 barrels a day refinery as 1,050 pounds of sulfur dioxide and 10.5 pounds of hydrogen sulfide were released. Pak-Arab Refinery Ltd resumes production after Pakistan's massive floods receded.In the mining sector, Norseman Gold plc (NGL) said 85,000 ounces of gold is capable of being mined in the main area of its Eastern Goldfields in Western Australia. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
Stock Price 4 days before: 6.81611
Stock Price 2 days before: 6.941
Stock Price 1 day before: 6.92927
Stock Price at release: 6.9275
Risk-Free Rate at release: 0.0012
| 7.50092 |
Symbol: DK
Security: Delek US Holdings, Inc.
Related Stocks/Topics: Markets|GTE|COP|BP
Title: Sector Update: Energy
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-09-20 07:59:00
Article: Energy issues are up before the bell, while crude prices are climbing slightly higher ahead of the FOMC meeting Tuesday. While BP plc ([BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP)) ) has killed the oil well spill in the Gulf of Mexico once and for all over the weekend, the company said it has already paid out 19,000 claims totaling $240 million. BP's Gulf Coast Claims Facility has set aside $20 billion to compensate fishermen, retailers, hotel owners, and other businesses that have been hurt economically by the worst environmental disaster in U.S. history. Total cost of cleaning up the spill has reached $9.5 billion to date. Gran Tierra Energy Inc ([GTE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GTE&selected=GTE)) ) will buy a 20% stake in three exploration blocks operated by a unit of ConocoPhillips Inc ([COP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=COP&selected=COP)) ) in Peru. The sulfur recovery unit of Delek US Holdings Inc's ([DK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DK&selected=DK)) ) refinery in Tyler, Texas, had a mechanical malfunction. Delek said it used "sulfur shedding procedures" to deal with pollution beyond licensed levels at the 58,000 barrels a day refinery as 1,050 pounds of sulfur dioxide and 10.5 pounds of hydrogen sulfide were released. Pak-Arab Refinery Ltd resumed production after Pakistan's massive floods receded. Brent crude is up 0.1% at $78.24 a barrel on NYMEX. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
Stock Price 4 days before: 6.81611
Stock Price 2 days before: 6.941
Stock Price 1 day before: 6.92927
Stock Price at release: 6.9275
Risk-Free Rate at release: 0.0012
| 7.50092 |
Symbol: DK
Security: Delek US Holdings, Inc.
Related Stocks/Topics: Markets|GTE|COP|BP
Title: Sector Update: Energy Up; BP Clean-Up Costs Reach $9.5B, Paid $240M In Compensation
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-09-20 08:38:00
Article: Dow Jones U.S. Oil & Gas Index: 463.93 Friday regular session closeNYMEX Benchmark Crude: +0.03 (+0.04%) to 73.69Top Energy StocksXOM: +0.43%CVX: +0.43%SLB: +0.26%OXY: 0.00%COP: +0.36%Energy issues are up before the bell, even though crude prices are flat ahead of the FOMC meeting Tuesday. While BP plc ([BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP)) ) has killed the oil well spill in the Gulf of Mexico once and for all over the weekend, the company said it has already paid out 19,000 claims totaling $240 million. BP's Gulf Coast Claims Facility has set aside $20 billion to compensate fishermen, retailers, hotel owners, and other businesses that have been hurt economically by the worst environmental disaster in U.S. history. Total cost of cleaning up the spill has reached $9.5 billion to date. Gran Tierra Energy Inc ([GTE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GTE&selected=GTE)) ) will buy a 20% stake in three exploration blocks operated by a unit of ConocoPhillips Inc ([COP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=COP&selected=COP)) ) in Peru. The sulfur recovery unit of Delek US Holdings Inc's ([DK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DK&selected=DK)) ) refinery in Tyler, Texas, had a mechanical malfunction. Delek said it used "sulfur shedding procedures" to deal with pollution beyond licensed levels at the 58,000 barrels a day refinery as 1,050 pounds of sulfur dioxide and 10.5 pounds of hydrogen sulfide were released. Pak-Arab Refinery Ltd resumed production after Pakistan's massive floods receded. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
Stock Price 4 days before: 6.81611
Stock Price 2 days before: 6.941
Stock Price 1 day before: 6.92927
Stock Price at release: 6.9275
Risk-Free Rate at release: 0.0012
| 7.50092 |
Symbol: SPH
Security: Suburban Propane Partners, L.P.
Related Stocks/Topics: SO|Markets
Title: 15 Best Utility Stocks for Dividends and Share Appreciation
Type: News
Publication: Louis Navellier
Publication Author: Unknown
Date: 2010-09-21 09:28:00
Article: High-yield dividend stocks are in focus, as income-oriented investors focus on stable paydays to boost their 401k funds. But if you think dividends and high-yield stocks mean settling for boring companies that do little in the way of stock appreciation, think again. You can find exciting stocks even in rather ho-hum sectors many investors think unsexy.Take utility stocks, which offer high yields and stable revenue streams. These picks may seem safe, sleepy bets - but several utility stocks are breaking out right now and offering big share appreciation along side hefty dividend payouts. Here are my favorite 15 dividend stock investments now based on share appreciation.Electric Utilities to Buy** CPFL Energia** (NYSE: [CPL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CPL&selected=CPL) ) generates and distributes electricity in Brazil and has watched its stock price climb 15% since January and 32.7% in the last 12 months. **Southern Co.** (NYSE: [SO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SO&selected=SO) ) owns the common stock of numerous southeastern U.S. electric companies and has outperformed earnings estimates for four straight quarters, while also gaining 15.7% year-to-date. **Pepco Holdings** (NYSE: [POM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=POM&selected=POM) ) is a diversified energy company that has experienced a stock jump of 19.8% since last September.Gas Utilities** Delta Natural Gas** (NASDAQ: [DGAS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DGAS&selected=DGAS) ) distributes and transports natural gas to approximately 37,000 customers in Kentucky. Its stock has risen 14.4% over the past year. **Suburban Propane Partners** (NYSE: [SPH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SPH&selected=SPH) ) is a distributer of propane and marketer natural gas whose shares have climbed 12.5% year-to-date and 26.5% since last September. **South Jersey Industries** (NYSE: [SJI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SJI&selected=SJI) ) is a holding company based in New Jersey. Its stock has jumped 34.4% over the past 12 months.Power Producers and Energy Traders** Empresa Nacional de Electricidad** (NYSE: [EOC)](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EOC)&selected=EOC)) is a Chilean electric energy company that has watched its stock jump 7.1% since January and 13.3% since September 2009. **Calpine** (NYSE: [CPN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CPN&selected=CPN) ) is a U.S. based wholesale power company whose shares have climbed 13.7% year-to-date. **TransAlta** (NYSE: [TAC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TAC&selected=TAC) ) is a wholesale power company operating in the U.S., Canada and Australia. This stock has risen 4.4% since last September. Multi-Utilities** Dominion Resources** (NYSE: [D](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=D&selected=D) ) is a producer and transporter of energy that has outperformed earnings estimates for four consecutive quarters and shows an impressive stock gain of 27.4% over the past year. **Wisconsin****Energy** (NYSE: [WEC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WEC&selected=WEC) ) owns subsidiaries in utility energy and non-utility energy. This stock has gained 26.2% since last September. **Integrys Energy Group** (NYSE: [TEG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TEG&selected=TEG) ) provides regulated natural gas to over 1.6 million customers in Illinois, Wisconsin and Michigan. Its stock has soared an impressive 41% in the last year.Water Utilities** Aqua America** (NYSE: [WTR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WTR&selected=WTR) ) is a regulated utilities holding company operating in 14 states that has gained 18.5% in stock price since January. **American Water Works** (NYSE: [AWK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AWK&selected=AWK) ) is a water and wastewater utility company whose stock has jumped 14.7% since last September. **Artesian Resources** (NASDAQ: [ARTNA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ARTNA&selected=ARTNA) ) is the holding company for water-utilities companies in Maryland and Pennsylvania. ARTNA stock has gained 6.4% over the past 12 months. **Louis Navellier's Top 5 Stocks for the 4th Quarter Surge** - Louis Navellier details five stocks set to deliver record earnings this October and jump 30%-50% in the next 90 days as the big money piles in. ** [Get their names online here, including Louis' buy-below and target prices](http://www.investorplace.com/order/?sid=FG4146) . **
Stock Price 4 days before: 52.5741
Stock Price 2 days before: 52.9437
Stock Price 1 day before: 53.0499
Stock Price at release: 53.0976
Risk-Free Rate at release: 0.0012
| 54.6421 |
Symbol: EXK
Security: Endeavour Silver Corp.
Related Stocks/Topics: HL|Markets|SLV
Title: Silver Moves Into First Place: Our Top Picks
Type: News
Publication: Learning Markets
Publication Author: Unknown
Date: 2010-09-22 04:32:00
Article:
Stock Price 4 days before: 4.18663
Stock Price 2 days before: 4.27932
Stock Price 1 day before: 4.01725
Stock Price at release: 4.13971
Risk-Free Rate at release: 0.0012
| 4.41363 |
Symbol: CLNE
Security: Clean Energy Fuels Corp.
Related Stocks/Topics: CHK|Markets
Title: Option Activity Alert: Chesapeake Energy and Clean Energy Fuels Corp.
Type: News
Publication: Schaeffer
Publication Author: Unknown
Date: 2010-09-23 01:45:00
Article: Natural gas was the name of the game on Wednesday, as options players placed their bets on producer Chesapeake Energy Corporation ([CHK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CHK&selected=CHK)) ) and alternative fuel firm Clean Energy Fuels Corp. ([CLNE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CLNE&selected=CLNE)) ). Specifically, CHK was targeted by a skeptical spread speculator, while CLNE continued to draw the attention of call buyers. **Chesapeake Energy Corporation** Put players targeted CHK yesterday, with the International Securities Exchange (ISE) reporting that traders bought to open 1,309 puts during the course of the session. By contrast, only 336 calls were purchased on the ISE yesterday, netting the stock a single-day put/call volume ratio of 3.90. Taking a closer look at the day's activity, it seems that CHK was targeted by a bearish spread speculator. One pessimistic player initiated a long put spread by buying to open 239 contracts of the January 2011 20-strike put, and simultaneously selling to open 239 contracts of the January 2011 16-strike put.By opening this debit spread, the trader is revealing that he expects CHK to swallow a modest decline during the intermediate term. In the best-case scenario, the shares would settle squarely at $16 upon January expiration. This would return the maximum potential profit on the purchased puts, while the sold puts could be left to expire worthless.Wednesday's preference for puts stands in contrast to the recent trend on the ISE, where CHK has garnered a 10-day call/put volume ratio of 3.22. This ratio ranks higher than 76% of other such readings taken during the past year, indicating that traders have actually been purchasing calls over puts at a rapid pace in recent weeks.However, the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.66 arrives in the 69th annual percentile, suggesting that short-term options players are more skeptically aligned than usual.In the same vein, short interest on CHK swelled by 10.2% during the past month, and these bearish bets now account for a healthy 6.6% of the security's float. Given the stock's technical troubles, it's no surprise that bearish sentiment is gaining traction on CHK. The shares have shed more than 19% year-to-date, and CHK is staring up at resistance from its 10-week, 20-week, and 40-week moving averages. [Weekly Chart of CHK since September 2009 With 10-Week, 20-Week, and 40-Week Moving Averages](http://www.schaeffersresearch.com/images/commentary/2010/100923chk1.gif) If round-number support at the $20 level should give way under the weight of these descending trendlines, it could attract a fresh wave of bears to the stock -- potentially exacerbating the equity's decline. **Clean Energy Fuels Corp. **CLNE was targeted by call buyers on Wednesday, according to data from the ISE. During the course of the session, speculators on this exchange bought to open 1,385 calls on CLNE, compared to just 13 puts. The equity's single-day ISE call/put volume ratio of 106.54 underscores a strong bias toward bullish bets over their bearish counterparts.However, the day's onslaught of optimistic option volume was simply more of the same for CLNE. The stock has racked up a 10-day ISE call/put volume ratio of 24.12, as more than two dozen calls have been purchased for every put during the past two weeks. This ratio ranks higher than 98.7% of comparable readings taken during the previous year, revealing that speculators have shown a greater appetite for calls over puts less than 2% of the time.The equity's SOIR of 0.45, meanwhile, reveals that calls more than double puts among options set to expire within three months. This ratio stands in just the fourth annual percentile, as short-term speculators have been more optimistically aligned only 4% of the time during the past year. Calls are dominating today's option activity in CLNE, too, with volume surging to five times the norm at last check. Roughly 6,200 calls have traded so far, and it looks like new contracts are being added at the October 18 strike.However, it's worth noting that short interest on CLNE jumped by nearly 21% during the past month, and increased by 3.3% during just the most recent reporting period. Now, these pessimistic positions represent a hefty 24.5% of the stock's float.With short interest and buy-to-open call volume rising simultaneously, it's quite possible that the apparently bullish option activity is actually just a byproduct of increased hedging by the shorts. By purchasing calls on CLNE, short sellers can limit their upside risk for a relatively minimal upfront expense.The shorts don't need to panic just yet, though. CLNE has found solid support at the $14 level in 2010, but resistance from the stock's 80-day and 120-day moving averages is looming overhead. During the short term, these troublesome trendlines could continue to thwart CLNE's rally attempts. [Daily Chart of CLNE since March 2010 With 80-Day and 120-Day Moving Averages](http://www.schaeffersresearch.com/images/commentary/2010/100923clne1.gif)** [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: 14.7878
Stock Price 2 days before: 15.0114
Stock Price 1 day before: 14.9989
Stock Price at release: 14.9351
Risk-Free Rate at release: 0.0013
| 13.6902 |
Symbol: DAN
Security: Dana Incorporated
Related Stocks/Topics: F|Markets
Title: ArvinMeritor faces range-bound play
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-09-23 02:08:00
Article: ArvinMeritor has been moving sideways since April, and one trader is looking to make money from that range. [ARM](http://www.optionmonster.com/cms/commentary/images/armpre923.png) optionMONSTER's tracking systems detected the sale of about 5,400 contracts each in the November 15 calls and the November 14 puts, which priced for $1.12 and $0.85-0.88, respectively. Volume was more than 4 times open interest in both strikes. The strategy, known as a short strangle, collects about $1.98 of premium. The trader will get to keep that amount if ARM closes between $14 and $15 on expiration but will make some money anywhere between about $12 and $17, thanks to the credit received. (See our Education section) The auto-parts maker fell 0.27 percent to $14.86 yesterday and is little-changed over the last five months. The sideways movement followed a rally of more than 3,000 percent off the March 2009 lows.Other companies in the sector such as Dana Holding and Ford Motor that also traded at distressed levels and had similar runs, have also been consolidating since the spring.The strangle trade on ARM pushed total options volume in the stock to 9 times greater than average.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 11.1053
Stock Price 2 days before: 11.6284
Stock Price 1 day before: 11.6009
Stock Price at release: 11.5009
Risk-Free Rate at release: 0.0013
| 13.6956 |
Symbol: LXU
Security: LSB Industries, Inc.
Related Stocks/Topics: Markets|ORA|FSLR
Title: Edward Guinness: Solar-Powered "10-Baggers"
Type: News
Publication: International Business Times
Publication Author: Unknown
Date: 2010-09-23 03:49:00
Article: **Edward Guinness: Solar-Powered "10-Baggers"**Source: Brian Sylvester of The Energy Report 9/23/10[http://www.theenergyreport.com/pub/na/7446](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/na/7446%22) [Image](http://www.ibtimes.com/%22http://img.ibtimes.com/www/data/articles/full/2010/09/23/17268.jpg%22) Edward Guinness, co-manager of the Guinness Atkinson Alternative Energy Fund, says the best opportunities in the alternative energy space involve solar power. "We are unusually positive on the solar sector," Edward says, noting that power produced from solar sources will double in 2010. Edward divulges some solar-powered "9- or 10-baggers" in this exclusive interview with The Energy Report. **The Energy Report:** Edward, please tell our readers about London-based Guinness Atkinson Asset Management and its namesake Alternative Energy Fund. **Edward Guinness:** The origins of Guinness Atkinson go back to the early 1990s when Tim Guinness and Jim Atkinson set up the U.S. division of Guinness Flight Asset Management. After Guinness Flight had been sold to Investec, Tim and Jim were able to buy the U.S. business in 2003 and called it Guinness Atkinson Asset Management. At that time, Guinness Atkinson had around $100 million under management. We have since grown that to around $500 million, and we have launched three additional funds, two of which are in the energy space.We run a conventional energy fund, the Guinness Atkinson Global Energy Fund, and the Guinness Atkinson Alternative Energy Fund. We have been running funds with our conventional energy strategy since 1998. The average annualized return, even though we have had such terrible markets recently, is still around 16%. Within that we had been looking at the alternative energy space, but we had only ever made one investment in an alternative energy stock.Tim decided that the alternative energy industry had reached the size where there was a big enough universe for us to form a separate fund, and that it merited a separate fund because the long-term dynamics of the industry are highly attractive and are different from those of the conventional energy space.In March 2006, with Matthew Page and myself as co-managers, we launched the Guinness Atkinson Alternative Energy Fund. We had very good success in the first two years; we built the fund up to $150 million under management. We're now back to around $45 million under management. I feel the sector and the fund have been through quite a rough period, but we're getting to a point where concerns about the economy are built into stock prices, and absolute valuations in terms of price multiples are very low. We're pretty excited about the next 18 months for the fund. **TER:** You launched the Guinness Atkinson Alternative Energy Fund in 2006 for U.S. investors. Then you launched the Guinness Alternative Energy Fund in 2007 for non-U.S. investors. Do you think European investors' appetites for alternative energy exceed those of U.S. investors? If so, what do you think accounts for that? **EG:** I think European investors generally have a greater understanding and enthusiasm for the sector. That's based on the fact that in Europe there is much greater visibility of the actual technology in terms of the huge number of wind and solar projects and the returns that are being generated by those projects.At the same time, I think investors in Europe are more cautious on investing in funds, whereas American investors are much more sophisticated in recognizing the benefits funds bring to an area like this. **TER:** That's noteworthy. So with American investors and alternative energy, is it a case of "out of sight, out of mind?"**EG:** Perhaps. I think people in the U.S. are more concerned about the broad market, and if people are worried about the broad market, alternative energy is another area that they're worried about. I don't think investors have returned to thinking this is an area that is actually going to outperform even if the economy goes sideways, which is what I think will be the case. **TER:** You see alternative energy as something of a hedge against the broad market? **EG:** I wouldn't describe it as a hedge, but I think it's something that over the next 5 to 10 years can do well even if the broad market doesn't. You might say that's a hedge, but it's not in the sense that it should perform very well if the broad market actually goes up. **TER:** All right, let's play devil's advocate for a moment. A recent Guinness Atkinson research report said, "Oil is fine, but running out; yet demand for energy is rising. We have to find alternatives that will be affordable and secure." But the world's proven oil reserves stand at 1.3 trillion barrels or enough to last 80 years at current consumption rates. It's also thought that the industry will discover at least half of those reserves or more during the next 80 years. Are we getting ahead of ourselves when it comes to short- and long-term demand for alternative energy versus fossil fuels?**EG:** I think the question as posed is not looking at the whole picture. I think that the other piece is that the oil still in reserve is becoming more and more expensive to extract. If we pay enough, we will keep finding oil for hundreds of years because clearly that would subsidize more and more advanced extraction techniques. What that means is that prices are going to rise over the next 10 to 20 years. Even if you look at extraction from the oil sands, my understanding of the cost of production there is $50-$60 a barrel. For natural gas, there's been a huge enthusiasm about shale gas, but the marginal cost of production there is not at $4 per thousand cubic feet ([MCF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MCF&selected=MCF)) ), which is where the current gas price is. I understand that it's more like $6 or $7 per MCF.I think we are quite weak "peak oil" believers; while the reserves are finite, we don't think we've peaked yet. We're consuming 86 million barrels a day today; we think that in the next 15 years consumption is going to go to 100 million barrels a day. We think that demand will be met, albeit at higher prices. Actually, our view on demand is that it's going to be even stronger than that based on the strength of Asian demand.The reason to be enthusiastic about alternative energy is because of the rising costs for fossil fuels, rather than the idea that next Thursday we're suddenly going to run out. The flipside for the alternative energy industry is that you have technologies that are still falling in costs. **TER:** But nonetheless, prices for alternative energy remain comparatively high at the moment, if you were to average the various forms. **EG:** That is a fairly common myth. If you look at the core technologies that are deployed today of hydro, biomass and geothermal, sources of alternative energy are competitive with coal, nuclear and natural gas on a price basis. And the cost of wind can be as low as $0.05 a kilowatt-hour on good sites, which is broadly competitive, provided that the wind supply remains below 25%-30% of the mix, and we're nowhere near that yet. Solar is clearly a lot more expensive, but it's getting considerably closer. The path for solar to reach a point where it becomes quite a viable distributive source of electricity without significant subsidies is within our grasp.Germany has put the most effort toward getting it there, and they do have high electricity prices. The electricity prices in Germany are north of $0.30 per kilowatt hour, and the feed-in tariffs that they are now paying to the solar providers are only just above that. The tariffs will fall through those levels in the 2011-2012 timeframe.. **TER:** So Germany's taken the approach that "it's expensive now but will only get cheaper, and it's sustainable." Is that correct?**EG:** The way the German industry works is that if you install a solar panel, you get a guaranteed price for the electricity that it generates, which is actually not subsidized by the government. It is subsidized by the energy consumers and the cost is passed across all users. The additional uplift to people's bills to pay for that is between $2-$3 a month per household-that's not a crazy amount in the vast scheme of things. The government does not fund this, so it doesn't weigh on government finances. We're not worried that that's going to be one of the first schemes to be cut, although we do expect the tariff declines to continue as planned. Once you start to have a feed-in tariff that is below the retail electricity price, you will then start to lower the blended cost of electricity as you get more and more solar panels installed. **TER:** In America, some states have introduced progressive legislation to encourage the adoption of different forms of alternative energy. Do you believe that the United States needs a broad alternative energy plan akin to what Germany has introduced?**EG:** Clearly, the German policies have effectively resulted in a high level of installation; so to a point, yes. I think the U.S. at the moment is a market that shows huge potential in the solar space that it is struggling to fulfill. The main areas being worked on in the U.S. are utility scale projects. Such projects have been a struggle with the weak economy, because the price that the large utilities are prepared to pay for power purchase agreements (PPAs) is low. That also relates to low natural gas prices. But the cost the people are paying in the U.S. is still 20%-30% higher than what people are now paying in Germany for fully installed projects. There's huge fat yet to come out.We are optimistic that the U.S. is a bit like a large ocean liner, and that once it gets pointed in the right direction and gets going, it will build up a huge head of steam.On the wind side, the U.S. had a market-leading position four to five years ago, albeit with jerky levels of installation. Every other year the government would introduce a two-year extension to the subsidy program. You would have one year of massive construction, and then everyone would put away their tools for a year, which was pretty unhelpful. China has overtaken the U.S. as the world's leading installer of wind turbines. Our understanding is that the prices that the utilities are prepared to pay for PPAs means that lots of wind projects in the U.S. are now on hold. And we're looking for that market to be a smaller market in 2010 than it was in 2009, which is something we'd like to see addressed because it's not a very long-term view on things. **TER:** You mentioned China. What impact is China having on alternative energy?**EG:** It's been reasonably popular to paint China as the bad guy of change in the last five or six years, and I am not convinced that that is entirely warranted. While they are still building new coal plants because they have to, they have some of the most progressive policies-aggressive policies as well as progressive-for putting new wind and hydro plants in place.They have been supportive of the solar industry in terms of expanding the manufacturing base, which has been a key driver in getting costs down. The cost of solar modules has fallen by over 50% in the last two years.They're also looking at putting in place tariffs that would encourage the installation of solar photovoltaic (PV) in China. I think they've identified the industry as a real core growth sector in which they can be key players on a global basis. About 25% of our portfolio consists of Chinese companies. And those are Chinese companies that typically have their listings elsewhere. That's a sign that this industry is moving to a much more commoditized level where the ability to manufacture at low costs is what's most important. The Chinese are doing the same in the wind industry, although they're probably five years behind where they are in the solar industry. **TER:** In your fund's portfolio, 17 of the 36 companies are solar energy companies. Why is there such a heavy weighting toward solar?**EG:** First, we are unusually positive on the solar sector. Industry analysts were expecting this year to be a terrible year for the solar industry. Actually, it looks like the industry is going to have grown from around 7 gigawatts ([GW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GW&selected=GW)) ) last year to somewhere in the 13-14 GW range this year. The industry's size has doubled. This means that companies have been able to operate plants at full capacity or above, which has been hugely positive for margins.People are very worried about demand next year. But what we're seeing from the core players is that these companies are managing to sell out 2011 demand because the companies doing the major installations have good project pipelines on which they can make decent internal rates of return (IRRs). They are planning on pushing ahead with those.Here is another thing to think about. Solar is mostly a utility product now, but as the costs come down, it's going to be much more of a residential offering. Residential solar in Germany now accounts for 70%-80% of all sales. I think that the mobile phone industry will at some stage prove to be an interesting parallel because people are talking about residential solar in the U.S. being a very niche product. You see some new developments with the installation. But once the costs come down to a point where people can generate $0.10-$0.15 per kilowatt hour and receive financing so that they're not actually carrying all the up-front costs, I think you will start to see the dynamics of the industry in the U.S. change dramatically. It's hard to say how quickly it will develop, but at the right price, a large percentage of the households in the U.S. will have solar.We're really excited about the solar space. We think the evaluations are hugely attractive, and solar is the space that has the most potential to grow. It's the area where we're most likely to catch some 9- or 10-baggers within the portfolio. **TER:** What are some of those companies that you believe could actually increase 9 or 10 times?**EG:** I would pay attention to [Yingli Green Energy Holding Co. Ltd. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2618%22) [YGE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=YGE&selected=YGE) ) . Then there's [Trina Solar Ltd. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2671%22) [TSL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSL&selected=TSL) ) . Trina and Yingli are, I'd say, top-tier Chinese module manufacturers. They are both getting good brand positioning, as well as good brand awareness in European markets.I would also look at [LDK Solar Co Ltd. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2627%22) [LDK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LDK&selected=LDK) ) and [Renesola Ltd. (NYSE:SOL; AIM:SOLA)](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2841%22) . These are two companies that have been hugely punished for being highly leveraged. But as things turn around, that leverage becomes a huge plus in terms of the potential returns. Both of them are low-cost wafer manufacturers, which is part of the manufacturing process for making solar panels. They are cost leaders in that specific space, which is actually starting to experience something of a bottleneck. **TER:** How about some other alternative energy ideas?**EG:** Two other companies are in a completely different area that highlights another interest we have. We have holdings in companies called [WaterFurnace Renewable Energy, Inc. (TSX:WFI)](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2773%22) and [LSB Industries, Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2844%22) [LXU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LXU&selected=LXU) ) , both of which are leading manufacturers of ground source heat pumps. Those are two stocks we hold in the efficiency sector.What I am really excited about is that when we start to see a pickup in U.S. housing starts, I think they will be primary beneficiaries. It seems like every new development has a major focus on energy, and ground source heat pumps are the most cost-effective way of improving the energy consumption of a development. We think they'll become, if not required by government, de rigueur among developers. Both those companies have performed really well through what have been extremely difficult times, which shows the recognition for those products and how strong the demand is. **TER:** Why do you only have two geothermal companies in your fund's portfolio?**EG:** In terms of geothermal, I would love to have more in geothermal because I am a huge geothermal enthusiast. However, the number of listed companies in the space is very short, and some of them are lower-quality companies where we might have some concerns. And a number of companies in this space have been trading at very, very high multiples, which we haven't liked. Take [Ormat Technologies Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/1156%22) [ORA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ORA&selected=ORA) ) , which is one of our holdings. I would describe them as the Google Inc. of the geothermal space. They're the ones with lower-temperature geothermal sites, which I think will be key to the growth of the sector. They do installation and they've built a huge portfolio of plants, which they're not getting full value for in the market. I would love to find more companies like Ormat that we could hold at the same sort of valuation, but there just aren't the opportunities out there. **TER:** One of your holdings in the Guinness Alternative Energy Fund is [First Solar Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/1984%22) [FSLR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FSLR&selected=FSLR) ) , which is ranked seventh on Fortune Magazine's list of the world's fastest growing companies. Tell us about that one. **EG:** We try to have the 30 best ideas in our portfolio, and it is one of those ideas. First Solar is the world's leading thin film manufacturer. They have a cost advantage on a dollars-per-watt basis for installing solar, which makes them very, very attractive for large-scale utility projects. Notwithstanding that, they have a low efficiency cell, so if you're looking to get the most energy from your roof, they're not the best way to go about it. If space is not a constraint, they are definitely on the list of people that will be considered for any project.The shares are actually expensive compared with other stocks we have in the solar space, probably because of their product differentiation and strong management team. First Solar's management has promised quite aggressive targets and has over-delivered on those targets. We think very highly of the company, notwithstanding the fact that its multiples are in the high teens on an earnings basis. It is very well placed to be one of the leaders over the next 5 to 10 years. **TER:** Yes, but its Q210 results were $1.84 per share, down from $2.14 per in Q209 and $2.00 per share in Q110. Those results were based on lower margins for their panels. To me, that suggests that there is growing competition and it has forced them to lower prices. Is that a threat? **EG:** It is a threat, but to put it in perspective, I think they're at around $0.80-$0.90 cost per watt for manufacturing panels today. The best-in-class solar companies in the PV space in China are hoping to get to $0.80 a watt in about two year's time. I understand that the road map for solar takes them down to the $0.50-$0.60 level. We're reasonably optimistic that they are going to be able to maintain their advantage.Clearly, margins are a little bit tighter. They now have price competition coming from panels that are much closer to their price point, but they are still below the general PV module price point.They're expanding the business into what I describe as higher quality earnings. They have a very good pipeline of projects that they are developing. While the margins in those projects are lower, they will enable First Solar to keep growing the core business and position the company for growth.You have to think about the margins not just in terms of them being squeezed, but also the fact that their margins are going to be higher quality. By higher quality, I mean margins that can't be eroded because they're direct cash flows from projects. **TER:** What's First Solar's share price upside?**EG:** That's a stock where I'm hoping to make maybe two to three times my money over the next three to five years. It has a $12 billion market cap. I think turning it into a $30 billion company is quite doable, but also quite a challenge. **TER:** Do you have some final thoughts on the alternative energy sector?**EG:** Yes, I think people should be looking to make the alternative energy sector a small part of their portfolio that is focused on growth. Clearly, alternative energy is still at an early stage, but I really want investors to be clear that this is not a technology play. You are investing in companies with real revenues and real earnings. And you're not relying on huge changes in technology for the industry to grow.We're only at the foothills today. I mean if the wind industry continues growing at 20% per year, which has been its growth rate for the last 10 years, we would only get to 10% of the world's electricity generation by 2023. And the solar industry, which has been growing around 30% a year for the last 10 years, would only get to around 5% of world electricity from solar by 2023. At that point, I think investors will have seen substantial returns on their investments in this space. **TER:** Many thanks, Edward. We appreciate your time.Edward Guinness joined [Guinness Asset Management](http://www.ibtimes.com/%22http://www.guinnessfunds.com/%22) in 2006. Mr. Guinness is co-manager of the Guinness Atkinson Alternative Energy Fund. Prior to Guinness Atkinson Asset Management, Mr. Guinness worked for HSBC in corporate finance beginning in 1998, and then in 2002 joined Tiedemann Investment Group, New York, in merger arbitrage. Mr. Guinness graduated from Magdalene College, University of Cambridge, with a Master's degree in Engineering and Management Studies in 1998.Want to read more exclusive Energy Report interviews like this? [Sign up](http://www.ibtimes.com/%22http://www.theenergyreport.com/cs/user/print/htdocs/38%22) 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.ibtimes.com/%22http://www.theenergyreport.com/pub/htdocs/exclusive.html%22) page. **DISCLOSURE:**1) Brian Sylvester of The Energy Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.2) The following companies mentioned in the interview are sponsors of The Energy Report: None.3) Edward Guinness: I personally and/or my family own shares of the following companies mentioned in this interview: None. I personally and/or my family am paid by the following companies mentioned in this interview: None. I am invested directly in one of our alternative energy funds.Streetwise - [The Energy Report](http://www.ibtimes.com/%22http://www.theenergyreport.com/%22) 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 Energy Report does not render general or specific investment advice 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 Energy 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]](http://www.ibtimes.com/%22mailto:[email protected]%22)
Stock Price 4 days before: 17.4853
Stock Price 2 days before: 18.0198
Stock Price 1 day before: 17.9347
Stock Price at release: 17.5936
Risk-Free Rate at release: 0.0013
| 21.4671 |
Symbol: FORR
Security: Forrester Research, Inc.
Related Stocks/Topics: Personal Finance
Title: Generation Y embraces personal digital devices
Type: News
Publication: NASDAQ.com News
Publication Author: Unknown
Date: 2010-09-23 09:25:00
Article: It should come as little surprise that Generation Y - which is made up of people born between 1977 and 2002, by the broadest reckoning - is more tech-savvy than the generations that preceded it.Research firm Forrester Research ([FORR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FORR&selected=FORR)) ) confirmed Generation Y's mastery of all things technological this week in a new report, entitled The State Of Consumers And Technology Benchmark 2010. Members of Gen Y, Forrester says, are far more likely to text than older people: Eighty-five percent of Millennials, as they're also known, send and receive texts, compared to 57 percent of the country as a whole. Social-network use is far more common among Millennials, too. That's to be expected - Mark Zuckerberg, the creator of Facebook, is a member of Gen Y himself.According to Forrester analyst Jacqueline Anderson, about two-thirds of Generation Y maintains a profile on a social site. And 27 percent of Millennials access social networks on their phones, versus just 14 percent of the general populace."In almost every online or mobile behavior, Gen Y leads the adoption curve," Anderson said. With Millennials joining the workforce in ever-greater numbers, companies are going to have to get increasingly tech-conscious to keep up.By Benjamin Foster
Stock Price 4 days before: 32.2224
Stock Price 2 days before: 32.8835
Stock Price 1 day before: 32.7768
Stock Price at release: 32.2098
Risk-Free Rate at release: 0.0013
| 34.0178 |
Symbol: WLFC
Security: Willis Lease Finance Corporation
Related Stocks/Topics: Markets|GE|AIG|AER|BA
Title: One of Most Undervalued Sectors of the Market is Beginning to Rebound
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-09-23 12:36:00
Article: In tough economic times, a high debt load can cripple a company. But when business is good, that debt can actually be a real benefit. That's because equity comprises just a small part of the company's total [enterprise value](http://investinganswers.com/term/enterprise-value-806) (market value plus debt minus cash) and profits can become quite large relative to that small equity base. But investors remain wary of debt-laden companies, recalling that these were among the stocks that appeared to be headed toward bankruptcy when the [economy](http://investinganswers.com/term/economy-1517) started heading south two years ago.As a result, shares of companies that buy and then lease airplanes to the major airlines, all of which carry lots of debt, are among the cheapest in the stock market. Yet if the global economy stays aloft and can finally grow, then these companies could see impressive profit and [dividend](http://investinganswers.com/term/dividend-1304) growth. Right now, the stars are aligning for this industry. Airline traffic is up +10% from a year ago, banks have become very supportive by providing very low interest rates for asset-backed loans for airplanes, and the key players are generating strong [cash flow](http://investinganswers.com/term/cash-flow-1175) that is helping to reduce debt levels. Most importantly, a glut of unused airplanes that sat idle are returning to service, and with fewer airplanes available, lease rates are rising.The industry is dominated by the finance arms of **GE ([GE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GE&selected=GE)) )** and **AIG ([AIG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AIG&selected=AIG)) )** . But investors can play the sector through smaller players such as **Aercap Holdings ([AER](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AER&selected=AER)) )** , **Aircastle ([AYR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AYR&selected=AYR)) ), FLY Leasing ([FLY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FLY&selected=FLY)) )** and **Willis Lease Finance (Nasdaq: WLFC)** . And as this table shows, all of these stocks appear quite cheap on a price-to-earnings basis:But these stocks are also inexpensive relative to their assets. For example, the value of Aircastle's fleet of planes, even after subtracting the company's debt, is around $1.02 billion, more than 50% above the company's $661 million [market value](http://investinganswers.com/term/market-value-779) , according to analysts at Citigroup. They think shares should reflect that value and trade up to about $13 from a current $8.40. In a recent note to clients, they wrote that "with its share price trading as almost half of [book value](http://investinganswers.com/term/book-value-1080) , and given more demonstrable evidence of a rise in aircraft market values, it is possible that Aircastle could spend surplus cash on buying back shares or raising the dividend."As long as these stocks remain below book value, share buybacks make plenty of sense. And that's what FLY Leasing is doing. The company's fleet of planes (minus its debt) is worth more than $17 a share, well above the recent $12.50 share price. Of course, any weakening in the economy would change that equation. (In 2008, when the economy was sliding, airline lease rates fell sharply, dragging down the value of planes, so FLY Leasing's book value then was just $12 a share.)**Action to Take -->** If the economy weakens anew, then these debt-laden stocks would be especially vulnerable. But all signs now point to a healthier airline industry. Lease rates should continue to rise as demand for new and used planes exceeds production from Airbus and **Boeing ([BA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BA&selected=BA)) )** . If you're in search of dividend yields, then Aircastle and FLY Holdings should hold great appeal, as these firms look set to hike their dividends further in 2011 as cash flow rises. Aercap is likely the most stable name in the group due to its relative size, which helps it to arrange special banks loans on especially favorable terms. [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: 10.4441
Stock Price 2 days before: 10.1105
Stock Price 1 day before: 10.7507
Stock Price at release: 10.4699
Risk-Free Rate at release: 0.0013
| 10.75 |
Symbol: PRDO
Security: Perdoceo Education Corporation
Related Stocks/Topics: Markets
Title: Why activity is jumping in education
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-09-24 01:08:00
Article: Education companies have been rallying after a huge selloff earlier in the year, and now the options action is surging.More than 108,000 contracts changed hands in the four most frequently traded names yesterday, roughly 10 times the average amount. The activity was mixed, with bullish transactions in some stocks and bearish trades in others. [APOL](http://www.optionmonster.com/cms/commentary/images/apolpre924-1.png) Apollo Group saw the busiest and most optimistic order flow as investors sold more than 8,700 November 40 puts for $0.70. There was also buying in the October 55 calls and the October 60 calls.The put selling reflects confidence that APOL will remain above $40 through expiration, while the call activity indicates a willingness to own the shares at higher levels. APOL rose 0.67 percent to $50.79 yesterday and is up 23 percent in the last month.Our Heat Seeker monitoring system also detected bullish activity in Corinthian Colleges, where buyers snapped up more than 12,000 October 7 calls for $0.40 to $0.60 against open interest of 5,432 contracts. Total options volume was 7 times greater than average in the name, with calls accounting for 90 percent of the activity. COCO rose 5.35 percent to $6.50. It was also the subject of heavy call buying on Sept. 9.The entire sector took a beating earlier in the year on concerns that government officials would tighten student-lending rules, threatening the main source of their revenue. APOL lost 39 percent of its value between mid-April and mid-August, while COCO fell 63 percent. ITT Education Services and Career Education both shed 43 percent.The activity in ESI and CECO was more mixed. In the former, traders sold the October 60 puts and bought buying the October 70 calls, while the latter saw both call buying and call selling, according to optionMONSTER's data systems. (Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. 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: 0.0009
| 0 |
Symbol: JBLU
Security: JetBlue Airways Corporation
Related Stocks/Topics: AA|Markets|EPS
Title: 2 Growth Stocks in a Low-Growth Economy
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-09-24 01:11:00
Article: After a sharp plunge in 2009, many companies are reporting vastly improved results this year. But until the [economy](http://investinganswers.com/term/economy-1517) is firmly in growth mode, further profit gains may be hard to come by. But a small minority of companies is in the midst of a profit spurt that shows no signs of a slowdown.I decided to set about to look for these impressive growth stories, screening for companies that are expected to boost profits by at least +40% in 2011. And to whittle the list down, I eliminated any company worth less than $1.5 billion. They must also sport price-to-earnings (P/E) ratios below 12 times next year's projected profits. Lastly, I eliminated banks and financial services companies from the list as analysts have an especially hard time accurately forecasting future profits in this sector. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) -- David StermanThe 26 stocks that made cut represent some clear themes. A number of them operate coal mines and are now benefiting from improved pricing for coal that should support robust [earnings per share ( ](http://investinganswers.com/term/earnings-share-eps-1003) [EPS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPS&selected=EPS) ) growth in 2011. In a similar vein, the steel and aluminum producers are also expected to benefit from both higher volumes and better pricing, as I noted in a recent profile of **Alcoa ([AA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AA&selected=AA)) )** . [Read: [The Best Rebound Play in the Dow](http://www.streetauthority.com/a/best-rebound-play-dow-456573) ]Outside of those sectors, a few other companies caught my attention, as they are likely to benefit from changing conditions in their industries. Let's take a look... **Navistar ([NAV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NAV&selected=NAV)) )**This maker of trucks, buses, RV chassis and other big rigs has received a bit of luck. Just as its military division is set to slow down after completing a big contract to supply armored vehicles for the wars in Iraq and Afghanistan, its commercial division is kicking into high gear. The economic slowdown of the last few years led truck buyers to hold off on purchases, and as a result, the age of the average truck is near an all-time high, according to analysts at Sterne Agee. In addition, dealer inventories are now quite lean and that's setting the stage for an expected surge in truck orders in 2011, which will be bolstered by ever-tightening emissions regulations.While the economy was in a funk, Navistar looked to cut costs in every corner of the business. The net result: "Depending on volume, (expectation of 240,000 units for 2011), Navistar expects to achieve a higher level of profitability than during past cycles," wrote Sterne Agee analysts in a recent report. In the past five years, Navistar has earned a little more than $4 a share on two occasions. Sterne Agee thinks [EPS](http://investinganswers.com/term/earnings-share-eps-1003) will exceed $5 a share next year, and that shares should trade for 12 times that profit view, with a price target in the low $60s. That represents roughly +50% upside from current levels. **JetBlue (Nasdaq: JBLU)**If you've traveled by air recently, you've probably noticed that airplanes are flying with fuller loads these days. It's all about supply and demand. Major carriers took many planes out of service in 2008 and 2009, and passenger volumes have begun to rise since then. After being repeatedly burned in past cycles when the major carriers deployed too many planes -- right at a time when demand slowed -- the whole industry has shown a lot more discipline this time around. It vows to add planes back into the system at a slow pace, making sure that the supply of airline seats remains just below demand levels. And that is enabling the carriers to push through fare increases, which are now roughly +20% higher than a year ago, according to the Airline Transport Association ([ATA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ATA&selected=ATA)) ).While most airline carriers are in the midst of a nice profit rebound, JetBlue seems to be the biggest beneficiary of the new industry [economics](http://investinganswers.com/term/economics-1516) . The low-cost carrier is likely to see profits double this year and rise another +40% to +50% in 2011 to around $0.60 a share. But the carrier is getting little credit: Shares are right in the middle of the 52-week range and trade for less than 10 times next year's profits.After years of torrid growth, JetBlue is likely to settle into a moderate +10% growth phase in coming years (sales growth is more robust this year due to very easy comparisons from 2009 when demand for air travel slumped). But that +10% growth should be sufficient to push profit growth at twice that pace. That's because JetBlue's infrastructure investments are largely completed, and any new revenue is more rapidly flowing to the [bottom line](http://investinganswers.com/term/bottom-line-789) .Shares of JetBlue hit $30 back in 2003 when investors first fell in love with the company's instant popularity among consumers. The investor honeymoon ended a while ago, and shares have lost -80% of their value since that peak even as consumer loyalty to the JetBlue brand remains very strong. Back in 2003, the carrier earned $0.64 a share, but profits have been weak ever since as management continually tinkered with pricing. That tinkering is now complete, which is why analysts expect EPS to finally rebound back to that 2003 peak. If JetBlue can deliver on forecasts, investors are likely to return to this success story. **Action to Take -->** One of the charms of low [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) stocks is that they are more likely to hold their own if the market slumps anew and investors first look to shed high P/E stocks. And if the market strengthens, economically-sensitive names like JetBlue and Navistar are likely to find much favor among investors seeking a nice combination of value and growth. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) David 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: 5.79063
Stock Price 2 days before: 5.87782
Stock Price 1 day before: 5.80807
Stock Price at release: 5.69296
Risk-Free Rate at release: 0.0009
| 6.98401 |
Symbol: JKS
Security: JinkoSolar Holding Co., Ltd.
Related Stocks/Topics: V|Markets|MA
Title: Two Reasons Behind the New Bull Market
Type: News
Publication: Cabot Wealth Network
Publication Author: Unknown
Date: 2010-09-25 02:34:00
Article: I've seen Leonardo da Vinci's Mona Lisa in the Louvre in Paris … but I enjoyed Marc Chagall's paintings more.I've been to the Taj Mahal in Agra, India … but I enjoyed a quiet day in Udaipur more. I've seen Michelangelo's Sistine Chapel in Rome … but I enjoyed the miscellaneous gold relics in the corridors leading to it more.And I've seen the 10-pound jade head of Belize (carved perhaps 1,400 years ago) … but I enjoyed the little clay spiny lobster (with a man's head inside its mouth) more.In every case, the popular attractions proved over-hyped (and often over-priced), while the less popular proved more enjoyable and frequently a far better value.It's a thought to keep in mind, not only when you're viewing the world's greatest art and architecture, but also when you're buying stocks.---Two weeks ago, Mike Cintolo, editor of Cabot Market Letter and Cabot Top Ten Weekly, drew my attention to an interesting fact. Of the four stocks hitting new lows on the New York Stock Exchange that day, two were **MasterCard ([MA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MA&selected=MA)) )** and **Visa ([V](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=V&selected=V)) )** , the kings of the credit card business.The reason is obvious. Consumers are cutting back on credit. No longer are they leveraging their assets to the hilt, confident that rising home values and automatic cost-of-living wage increases will enable them to pay off their debt in time.Now, sobered by the drop in real estate values, and fearful that pay increases may be a distant memory, Americans are cutting back … basically rebuilding their balance sheets, which is a good thing. And I think this trend has a long way to go.So I wouldn't touch the stocks of MasterCard or Visa with a 10-foot pole.But here's the interesting aspect of this story.On the day that MA and V were hitting new lows, 240 stocks were hitting new highs! And in the two weeks since then, the buyers have been in control of this market! Breadth has been extremely healthy, and I've been telling readers that the new bull market has been born!Which raises the question …If consumers are cutting back on buying-as reflected not only by the performance of MasterCard and Visa but also by the housing industry stats and automobile sales-how can we have a new bull market?And the answer has two parts.First, the best action now is in stocks of companies that benefit from commercial buying. Technology infrastructure is an especially active area, as technology typically improves productivity.Second, stocks were undervalued, thanks to the deluge of bad news over the past two years, and when the market is oversold to that degree, it inevitably rebounds.Many pundits, of course, are saying this is just a rally, and that the U.S. economy is still so bad that the market will roll over and resume its downtrend. But I disagree. More important, the Cabot market timing indicators, which have proven their value over the past 40 years, disagree. They say this is a new bull market, and it's time to stop sitting on your hands.--- Advertisement ---Turn Market Volatility Into Huge GainsCabot Options Trader Editor Rick Pendergraft uses the market's volatility to bring his subscribers huge profit-making opportunities. Bull, bear, he doesn't care!During this summer's crazy market, he bagged gains of 60% on a Call on Newmont Mining, 134% on a Put on the Energy Select Sector SPDR and 109% on a Call on Pride International, among others! Don't get jerked around by the market any more, let Rick be your guide. [Join him today!](https://www.cabot.net/info/cot/cotki07.aspx?source=wv01)---As to individual stocks, two weeks ago, I told you about JinkoSolar, a Chinese company that claims to be the "world's leading vertically-integrated PV manufacturer of high quality mono- and multi-crystalline modules, cells, wafers and ingots."I wrote:"There are many other companies doing well in the same sector, and many of them are attractive, too. But **JinkoSolar ([JKS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JKS&selected=JKS)) )** stands out for these reasons. "1. It's small, with a market cap of just $530 million."2. It came public quite recently, in May of this year, so it's still fairly unknown, which means most potential owners don't own it yet,"3. The company turned profitable in 2007 and today it's growing like the wind. In the second quarter, revenues grew 310% from the prior year to $133 million while earnings surged from nine cents per share to $1.18 per share. After-tax profit margins were 20.1%.""4. The stock is strong! After coming public at 11 in May, it dipped to a low of 8, and then began a rocket-ship ride that took it to a high of 30 last week.""Since then, JKS has dipped to its 25-day moving average at 24, and if you're interested, I think you can nibble on a little here. For continuing coverage of the stock, however, I suggest you try a no-risk subscription to Cabot China & Emerging Markets Report, whose editor, Paul Goodwin, is keeping a close eye on the stock." Hopefully, you bought some shares of JKS, which hit 32 last Wednesday, for a quick gain of 30%.And hopefully, you took a subscription to Cabot China & Emerging Markets Report, which will steer you into many more top-performing Chinese stocks, leveraging both the time-tested Cabot investing rules and the awesome power of China's economic growth.If you didn't sign up then, you still have time. Paul has a new issue out this week. [Don't miss it!](http://www.cabot.net/info/cem/cemkj07.aspx?source=wv01) Yours in pursuit of wisdom and wealth,Timothy LuttsPublisherCabot Wealth Advisory
Stock Price 4 days before: 29.7223
Stock Price 2 days before: 30.1167
Stock Price 1 day before: 29.9422
Stock Price at release: 29.5461
Risk-Free Rate at release: 0.0009
| 26.6021 |
Symbol: BFS
Security: Saul Centers, Inc.
Related Stocks/Topics: KMB|Markets|NLY|BXP|PSA|JNJ|HST|AVB|O|VNO|RYN|BX|CPT|SKT|SPG
Title: Why Investors Should be Fearful of REITs, Despite Their Relatively High Dividend Yields
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-09-26 05:02:00
Article: I've always disliked the REIT (real estate investment trust) structure in the belief that it forces a company to operate in a highly unnatural way. Mandatory cash distributions forces most REITs to constantly access capital markets. They seem to be in a constant search for cash. In any case, REITs frequently end up over-leveraged, at least to my liking.The REIT structure is an arbitrary construction of the tax code that provides favorable dividend treatment in exchange for meeting certain obligations. Chief among these is that a company must distribute at least 90% of taxable income to shareholders. These constraints cause me to be a REIT skeptic at best. So weigh the following thoughts accordingly.Nonetheless, it's amazing how quickly a hefty dividend warms my cold, dead capitalist heart. The trouble is, I am (just) old enough to remember when yields of 12 to 15 percent were easy to find in the REIT universe. Such yields are NOT ancient history. Think Internet Bubble days, without "Flip That House" shows on HGTV. Real estate wasn't virtual and, therefore, nobody cared. Not coincidentally, it was a great time to buy REITs.At the time, high yields were said to compensate investors for the considerable risks they bore. Sounded reasonable to me. With interest rates in constant free fall for the last 10 years, REIT yields have fallen as well. Today's buyers argue that REIT yields are still relatively attractive. The key word here is "relatively". It can be a thoroughly dangerous word.Call me crazy, but at some point absolute levels matter.REITs have been pursued by yield-seeking investors searching for alternatives in a near zero interest rate world. At some point, any positive yield starts to look good. Relatively speaking. In the case of REITs, this buying has now driven yields to ridiculous levels. Absolutely speaking.Frankly, REIT yields may look good compared to [blank], but it is an apples to oranges comparison in many cases. REITs are essentially a pass-through vehicle. Is a 3% yield on a REIT the same as a 3% yield on Johnson & Johnson ([JNJ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JNJ&selected=JNJ)) ) or Kimberly-Clark ([KMB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KMB&selected=KMB)) )? Since by law the REIT yield represents at least 90% of taxable income, the answer is "no". In any case, current REIT yields don't look sufficient to compensate investors for the risks being assumed. In short there is no margin of safety.Given the nature of real estate, is a 6 percent yield enough? How about 3%?Excluding the mortgage REITs, like Annaly ([NLY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NLY&selected=NLY)) ), double digit yields within the REIT universe are nearly impossible to find. Even 8% is rare! Conversely, yields of 2 to 4 percent are abundant. Apparently investors must believe that minuscule retained earnings and appreciation of the underlying assets will offset these pathetic current yields?It's too great a leap for this investor, but it is clearly a minority view.Just look at mall operator Simon Property Group ([SPG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SPG&selected=SPG)) ). Its 2.5% dividend yield would imply an earnings yield, cap rate, or whatever for the whole company of less than 3%. Round up if you want. Either way, precious little margin of safety exists. At best, it seems like a very full price to pay for a collection of mall properties. Or am I missing something? Is retail booming? Mall retailers in particular? You'd think so given SPG's valuation. Sorry, but I can't suspend my disbelief. Our local mall (a Simon property) is a ghost town. Maybe all the rest are thriving. They better be. Look through the whole collection of retail REITs from factory outlets to strip malls and it's the same story. Whether it's Taubman ([TCO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TCO&selected=TCO)) ), Tanger Factory Outlet Centers ([SKT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SKT&selected=SKT)) ), Realty Income ([O](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=O&selected=O)) ), or even Saul Centers ([BFS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BFS&selected=BFS)) ), you're lucky to break 4 percent for current yield or even total earnings yield. Been shopping lately? Was there a line?In a time of belt-tightening and sacrifice, one could imagine that self storage would be a tough sell. Not so based on the price of REITs like Public Storage ([PSA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PSA&selected=PSA)) ) or U-Stor-It ([YSI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=YSI&selected=YSI)) ). Crazy multiples and tiny yields are the order of the day.Did we have a real estate correction in this country?Not if the apartment REITs are any indication. AvalonBay ([AVB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AVB&selected=AVB)) ), Camden Property Trust ([CPT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CPT&selected=CPT)) ), and Post Properties ([PPS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PPS&selected=PPS)) ) - to name a few - are all trading within shouting distance of their 52-week highs and yield around 3 percent. Hold me back!I know... everyone who's lost their house is now paying full bore to live in a luxury apartment owned by one of these guys, right?! Sure. And 10% unemployment isn't hurting them either? Not based on these numbers. Was my complex the only one with empty apartments and residents behind on their rent? Apparently.From office REITs - like Boston Properties ([BXP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BXP&selected=BXP)) ) to hotel REITs - like LaSalle Hotel Properties ([LHO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LHO&selected=LHO)) ) and Host Hotels ([HST](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HST&selected=HST)) ), everything must be booming. The valuations say so. But where is the downside protection? Have you spoken to a commercial realtor or a hotel operator lately? Investors in these companies clearly haven't! Such disconnects scare me. The lumber REITs like Plum Creek ([PCL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PCL&selected=PCL)) ) and Rayonier ([RYN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RYN&selected=RYN)) ) and their 4+ percent yields look positively cheap by comparison. Lumber is in bull market mode. Did you know that? Even so, 4 percent? I grew up on a farm. Growing anything on the farm or in the forest has risks. And these numbers just don't cut it.Even Vornado ([VNO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VNO&selected=VNO)) ), the king of diversified REITs has a pathetic 2.9% dividend yield and is priced for perfection. So count me among the few who are bearish on REITs in general.Do we really need a reminder that real estate isn't riskless, that the associated cash flows are not certain? Who's buying these things? And at these prices?It's not surprising that the [Bloomberg REIT index](http://noir.bloomberg.com/apps/quote?ticker=BBREIT:IND) topped out in early 2007 at around 300. If memory serves, it was right about the time Blackstone ([BX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BX&selected=BX)) ) bought Equity Office (EOP) from Sam Zell. 20 guesses who made out on that deal?Blackstone's purchase valued Equity Office at a low single digit cap rate. How did their math work? After all, Blackstone used mountains of borrowed money. No doubt the model hinged on future growth, ever rising real estate prices, and a belief in the [Greater Fool Theory](http://www.investopedia.com/terms/g/greaterfooltheory.asp) . It's a formula that worked great in residential real estate! And Blackstone found a few. For Sam Zell, Blackstone was the only "fool" he needed. Two years after the Equity Office deal closed, the aforementioned REIT index was 80 percent lower. The concept of risk was reborn and Sam Zell looked positively prescient. By March 2009, the index bottomed around 70. And because the world didn't end as expected, it began to rebound.Today, the Bloomberg REIT index hovers around 170. Compared to 300, this is relatively (that word again) cheap. Take comfort in this if you wish, but 2007 represented a price bubble on top of a credit bubble... a double bubble.With many REITs currently trading near Equity Office-like valuations, investors should be fearful of this sector.Buying relatively cheap REITs could make you absolutely poor.See also [Is Recession Risk Fading?](http://seekingalpha.com/article/228701-is-recession-risk-fading?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 43.2246
Stock Price 2 days before: 38.005
Stock Price 1 day before: 27.9341
Stock Price at release: 41.7746
Risk-Free Rate at release: 0.0008
| 35.4261 |
Symbol: CENX
Security: Century Aluminum Company
Related Stocks/Topics: Markets
Title: More upside seen in Century Aluminum
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-09-27 03:09:00
Article: Century Aluminum is pushing higher, and one trader is looking for the gains to continue. [CENX](http://www.optionmonster.com/cms/commentary/images/cenxpre924.png) optionMONSTER's Heat Seeker monitoring system detected the purchase of 10,000 December 14 calls for $0.80 and the sale of an equal number of December 12 calls for $1.61. Volume was below open interest in the lower strike, indicating that a long position was rolled to the higher strike. CENX rose 6.57 percent to $12.65 on Friday. The aluminum producer lost more than half its value between January and the summer amid weak demand and excess capacity in the industry. But since bottoming out in early July, it has rallied more than 40 percent.The shares closed the week above their 200-day moving average for the first time since mid-May, which some chart watchers may consider bullish sign.Selling the December 12 calls and buying the December 14s let the investor recover about $0.81 of capital while maintaining long exposure to further gains. Such a strategy is commonly used to take profits and manage risk.The transaction pushed total options volume in CENX to 14 times greater than average, with calls accounting for a bullish 96 percent of activity.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 11.8196
Stock Price 2 days before: 12.5237
Stock Price 1 day before: 12.6677
Stock Price at release: 12.6706
Risk-Free Rate at release: 0.0008
| 12.6236 |
Symbol: GCI
Security: Gannett Co., Inc.
Related Stocks/Topics: NYT|Markets
Title: Is This Well-Known Media Stock Worth a Second Look?
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-09-27 12:13:00
Article: In the debate between growth and value investors, it's usually a contest between high growth and higher valuations and low growth and very low valuations. But what should investors do with a company that is seeing revenue and [cash flow](http://investinganswers.com/term/cash-flow-1175) actually shrink? It's been a longstanding question dogging the newspaper industry.In a worst-case scenario, cash flow turns outright negative and bankruptcy has been the only option. For the **New York Times Co. ([NYT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NYT&selected=NYT)) )** and **Gannett ([GCI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GCI&selected=GCI)) )** , things have not been quite that dire, and bankruptcy is quite unlikely. But is there any reason to search for value in these industry survivors? The short answer: a qualified yes. In this piece, I'll focus squarely on the New York Times, although many of the conclusions may apply to Gannett as well. There's no need to re-hash all of the twists and turns at the Times, but it's helpful to pit the positives against the negatives. **The positives:** - Rising national [market share](http://investinganswers.com/term/market-share-778) as regional rivals sharply re-trench and cede important national coverage to The New York Times and a few other outlets - A strong and growing web presence thanks to nytimes.com and about.com - Sharply falling newsprint prices, thanks to falling demand - Activist investors barking at the door - Perceived trophy status, thanks to a still-strong brand **The negatives:** - A virtual implosion on the classified ad market that is unlikely to ever rebound - A website that is so good that it is cannibalizing circulation sales, especially since it is 100% cheaper than the print version - Far lower online ad rates when compared to print ad rates - A decision by advertisers to move toward online and broadcast outlets - Still high-fixed costs, thanks to an extensive and well-compensated newsroom - A continuing drop in media buyout values, as evidenced by the fact that **Washington Post Co. ([WPO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WPO&selected=WPO)) )** recently sold Newsweek for pocket change. Investors chose to focus on the investment positives in 2009, as shares rose from a low of $4 to $14. But the long-term concerns again rule the roost, and shares have lost nearly half of their value in the past eight months. Where shares go from here hinges on a bold experiment that will get underway in January. That's when The New York Times will throw up a wall and start charging for full access to its website.It has become conventional wisdom that online versions of newspapers must be free. But as News Corp.'s The Wall Street Journal has proven, you can have it both ways. Online readers of the WSJ get a discounted rate for the print version, largely to reflect the savings associated with printing and distribution. Recall that Rupert Murdoch floated plans to make the online version of the WSJ free to boost traffic and ad rates, but that never happened. Murdoch soon realized that online advertising can never match circulation revenue.Of course, the Times already tried to charge for content once by putting its editorial page writers behind a wall. That half-hearted attempt was a mistake and led readers to only consume the remaining 85% of daily content that was still open to the public. In a world where The New York Times remains a must-read for New Yorkers and an increasingly important source of news for those outside the New York area as well, the paper will find that it remains indispensable. For that matter, according to Alexa.com, 35% of all NYT online readers come from outside the U.S., where physical delivery isn't even an option.Let's do the math. The New York Times has roughly 12 to 15 million unique visitors to its site in any given month. As the paper will allow partial free access to casual surfers, traffic and ad revenue can remain at reasonable levels. Let's assume that only 500,000 readers are willing to pay $100 a year for full online access (which is the same price as the online WSJ). That works out to be $50 million in incremental revenue. The math is similar if the NYT charges $50/year and gets one million subscribers. These numbers are simply a guess at this point. And that $50 million may not cut it in light of lost revenue on the print side.Maybe these estimates are too conservative. How many of us will be willing to pay? I know I will, as I cannot survive without my daily fix of what is still arguably the best news media organization in the world. But the analogy to The Wall Street Journal 's WSJ.com may not apply. That publication is a must-read in the business community and subscriptions are often covered by employers. That won't be the case with nytimes.com.We'll soon find out what kind of demand exists for a paid online subscription. In a best-case scenario, subscriptions exceed what are now fairly low expectations and the nytimes.com becomes quite profitable (especially when you consider that it has no printing and delivery costs). Indeed, the initiative would have to be so profitable that it more than offsets the lost revenue from print subscriptions that are cannibalized. And that's no sure thing.In a worst-case scenario, response is tepid and subscription levels are below forecasts even as traffic to the site plummets, killing online ad revenue. Right now, analysts are modeling for a modest fall in profits next year, largely due to rebounding newsprint prices. Few expect to see a return to the last few years, when sales fell -3%, -8% and -17% in 2007, 2008 and 2009, but it's not clear that assumptions of flat revenue for the next few years are reasonable. That's why shares have sold off and trade for less than four times projected 2011 EBITDA. It is very rare that a company with such a strong brand and market share to trade that cheaply. Then again, being the best house in a very bad neighborhood is nothing to brag about. **Action to Take -->** Despite these obvious negatives, investors need to closely watch this coming experiment. It will likely be a number of months before we can draw firm conclusions, but the New York Times Co. is one of the few media companies that can possibly effectively monetize its content online.If shares fall further, closer to the $5 mark, then shares would be extremely tempting considering that this newspaper publisher still throws off more than $100 million in annual [free cash flow](http://investinganswers.com/term/free-cash-flow-1000) . At that price, the drumbeat of activist investors and deal-makers would grow larger.[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: 12.3995
Stock Price 2 days before: 12.3019
Stock Price 1 day before: 12.281
Stock Price at release: 12.3566
Risk-Free Rate at release: 0.0008
| 12.0118 |
Symbol: SLP
Security: Simulations Plus, Inc.
Related Stocks/Topics: Markets|PDEX|IRIX|AHII|SURG
Title: 8 Health Care Penny Stocks to Buy Now
Type: News
Publication: Louis Navellier
Publication Author: Unknown
Date: 2010-09-27 12:31:00
Article: A typical "penny stock," believe it or not, can trade for as much as $5 a share. The idea behind penny stocks is the same, however, whether the investment is worth 3 cents or $3.03 - a very small-cap equity or microcap stock with the ability to break out and post big gains.When I screen for penny stocks, I always omit companies that are illiquid, trading for only a few pennies or listed on the pink sheets. These penny stocks are just too risky to make sense. However, that doesn't mean investors can't find a number of bargain breakouts by combing through cheap stocks. Here are eight examples of breakout penny stocks in the health-care sector. All it takes is one big drug approval, a buyout from big pharma or a plump contract from a major provider to send shares of penny stocks like these soaring. **Cardica ([CRDC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CRDC&selected=CRDC)) )****Cardica** (NASDAQ: [CRDC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CRDC&selected=CRDC) ) designs, manufactures and markets products used by cardiac surgeons. These products are frequently used when performing coronary bypass surgery. Cardica also makes endoscopic microcutters which are used in various other surgeries. This penny stock has boasted an impressive gain of 82.8% since January. In early August, Cardica reported total product sales of $1 million for its fiscal fourth quarter ending June 30. Its stock price of $2.14 is down slightly from its 52-week high of $2.85; however Cardica is still a good bargain buy at this time. **Pro-Dex ([PDEX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PDEX&selected=PDEX)) )**Based in Santa Ana, Calif., **Pro-Dex** (NASDAQ: [PDEX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PDEX&selected=PDEX) ) designs, develops and manufactures rotary drive systems for the medical device and dental industries. These rotary systems are also used in cranial, spinal, arthroscopic and orthopedic surgery. This penny stock has climbed 46.5% since January, or 71 cents a share. In its last income statement, PDEX reported quarterly revenue growth of 33.7% year over year, along with a net profit margin of 2.82%. Investors can buy into Pro-Dex stock at $2.22 per share. **CAS Medical Systems ([CASM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CASM&selected=CASM)) )**Medical-technology company **CAS Medical Systems** (NASDAQ: [CASM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CASM&selected=CASM) ) develops manufactures and markets non invasive patient monitoring products. The company's products are divided into the following segments: critical care monitoring, blood pressure measurement technology and bedside monitoring. While this penny stock is up just 4.7% year-to-date, it is still riding high from its 52-week change of 43.2%. Its stock price of $2.22 is not far off from its 52-week high of $2.51, which is an encouraging sign for potential investors. **TearLab ([TEAR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TEAR&selected=TEAR)) )****TearLab** (NASDAQ: [TEAR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TEAR&selected=TEAR) ) is known by many by its former name of OccuLogix. Based in San Diego, the health-care company is known for its tear testing platform which allows eye doctors to test for highly sensitive and specific biomarkers. Since March 1, the stock has climbed an incredible 162%. The huge spike in stock price occurred when OccuLogix announced that investors had agreed to buy 1.5 million shares of the company's common stock for $3.22 per unit. The purchase cost investors approximately $5 million and sent TearLab's stock surging. Since the purchase, the stock has leveled off, however at $2.63 a share, this penny stock is still worth buying. **Synergetics USA ([SURG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SURG&selected=SURG)) )**Headquartered in Missouri, **Synergetics USA** (NASDAQ: [SURG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SURG&selected=SURG) ) is a medical device company that designs, manufactures and markets microsurgical instruments. These instruments are used in microsurgery and are often used by ophthalmologists and neurosurgeons. Synergetics is another penny stock that has had a successful 2010. Year-to-date, this health-care stock has climbed 113.7% compared to small gains by the broader markets. Equally impressive is the company's quarterly earnings growth of 622.5%, which was reported in its last income statement. **Iridex ([IRIX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IRIX&selected=IRIX)) )****Iridex** (NADAQ: [IRIX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IRIX&selected=IRIX) ) is a global provider of therapeutic based laser systems and delivery devices used to treat eye diseases and skin conditions. Its products consist of laser probes that are used in treating eye diseases including diabetic retinopathy, glaucoma and macular degeneration. Over the past 52 weeks, IRIX stock has gained 35.7%. This penny stock has also outperformed earnings estimates for two straight quarters, which has pleased shareholders. A net profit margin of 8.2% last quarter also adds to this stock's impressive resume. **Animal Health International ([AHII](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AHII&selected=AHII)) )**As its name would suggest, **Animal Health International** (NASDAQ: [AHII](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AHII&selected=AHII) ) distributes animal health products in the U.S. and Canada. Its products include pharmaceuticals, vaccines, parasiticides, diagnostics, capital equipment and sanitizers, among others. According to the company, it sells over 40,000 products to approximately 71,000 customers. The last 52 weeks have been a bumpy ride for AHII, but the penny stock is up 19.8% during that time. Investors are optimistic as analysts have upped earnings estimates to eight cents this quarter and EPS of seven cents last quarter. At $2.60, AHII is a very affordable stock to buy right now. **Simulations Plus ([SLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLP&selected=SLP)) )**Based in Lancaster, Calif., **Simulations Plus** (NASDAQ: [SLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLP&selected=SLP) ) produces software used for pharmaceutical research and educational purposes. The company also makes computer software and hardware to be used specifically by people with disabilities. Since January, this penny stock is up 93.5%, and it posted a net profit margin of 23.7% last quarter. Likewise, this stock met earnings estimates last quarter, after exceeding expectations in the two prior quarters. Its quarterly earnings growth of 30% year over year also makes this penny stock a valuable buy at this time.As of this writing, Louis Navellier did not own a position in any of the stocks named here. **Top 5 Stocks for the 4th Quarter Surge.** Louis Navellier details five stocks set to deliver record earnings this October and jump 30%-50% in the next 90 days as the big money piles in. [Get their names online here,](http://www.investorplace.com/order/?sid=FG4146) including Louis' buy-below and target prices.
Stock Price 4 days before: 2.69654
Stock Price 2 days before: 2.54625
Stock Price 1 day before: 2.58581
Stock Price at release: 2.54368
Risk-Free Rate at release: 0.0008
| 3.23755 |
Symbol: CLNE
Security: Clean Energy Fuels Corp.
Related Stocks/Topics: Markets
Title: Trade bets Clean Energy won't spike
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-09-28 04:09:00
Article: Clean Energy Fuels has never traded above $25, and one trader is betting that it will stay that way into the New Year. [CLNE](http://www.optionmonster.com/cms/commentary/images/clnepre928.png) optionMONSTER's tracking programs detected the sale of more than 3,300 January 25 calls for $0.20 yesterday against open interest of 1,251 contracts. Overall option volume in the alternative-fuel stock was more than twice the average level, with call selling accounting for almost all the activity. CLNE fell 4.4 percent to $14.57 yesterday and is down 23 percent since the beginning of August. That marks a sharp contrast with the broader market over the same period and the rally seen in Chinese photovoltaic stocks such as ReneSola and Trina Solar.The company's last earnings report on Aug. 9 beat forecasts, with its loss narrower than expected and revenue ahead of consensus. CLNE, which runs natural-gas fueling stations for vehicles, has nonetheless been targeted heavily by the bears and faced heavy short-selling pressure.The negative sentiment is probably related to CLNE's overvaluation by most metrics, with a forward price-to-earnings ratio of 58 times and an enterprise value of more than 1,000 times EBITDA.Traders also sold about 500 October 15 calls for $0.50 to $0.65, wagering that CLNE will remain below $15 for the next there weeks.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 15.7428
Stock Price 2 days before: 15.2172
Stock Price 1 day before: 15.2189
Stock Price at release: 14.6252
Risk-Free Rate at release: 0.0008
| 14.8746 |
Symbol: GCI
Security: Gannett Co., Inc.
Related Stocks/Topics: NYT|Markets|NWS
Title: Is The New York Times Worth a Second Look?
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-09-28 07:12:00
Article: ** [StreetAuthority](http://www.streetauthority.com/) submits:**ByDavid StermanIn the debate between growth and value investors, it's usually a contest between high growth and higher valuations and low growth and very low valuations. But what should investors do with a company that is seeing revenue and cash flow actually shrink? It's been a longstanding question dogging the newspaper industry.In a worst-case scenario, cash flow turns outright negative and bankruptcy has been the only option. For the **New York Times Co. ([NYT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NYT&selected=NYT)) )** and **Gannett ([GCI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GCI&selected=GCI)) )** , things have not been quite that dire, and bankruptcy is quite unlikely. But is there any reason to search for value in these industry survivors? The short answer: a qualified yes. In this piece, I'll focus squarely on the New York Times, although many of the conclusions may apply to Gannett as well. There's no need to re-hash all of the twists and turns at the Times, but it's helpful to pit the positives against the negatives. **The positives:** - Rising national market share as regional rivals sharply retrench and cede important national coverage to The New York Times and a few other outlets - A strong and growing web presence thanks to nytimes.com and about.com - Sharply falling newsprint prices, thanks to falling demand - Activist investors barking at the door - Perceived trophy status, thanks to a still-strong brand **The negatives:** - A virtual implosion on the classified ad market that is unlikely to ever rebound - A website that is so good that it is cannibalizing circulation sales, especially since it is 100% cheaper than the print version - Far lower online ad rates when compared to print ad rates - A decision by advertisers to move toward online and broadcast outlets - Still high-fixed costs, thanks to an extensive and well-compensated newsroom - A continuing drop in media buyout values, as evidenced by the fact that **Washington Post Co. ([WPO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WPO&selected=WPO)) )** recently sold Newsweek for pocket change. Investors chose to focus on the investment positives in 2009, as shares rose from a low of $4 to $14. But the long-term concerns again rule the roost, and shares have lost nearly half of their value in the past eight months. Where shares go from here hinges on a bold experiment that will get underway in January. That's when The New York Times will throw up a wall and start charging for full access to its website.It has become conventional wisdom that online versions of newspapers must be free. But as News Corp.'s ([NWS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NWS&selected=NWS)) ) The Wall Street Journal has proven, you can have it both ways. Online readers of the WSJ get a discounted rate for the print version, largely to reflect the savings associated with printing and distribution. Recall that Rupert Murdoch floated plans to make the online version of the WSJ free to boost traffic and ad rates, but that never happened. Murdoch soon realized that online advertising can never match circulation revenue.Of course, the Times already tried to charge for content once by putting its editorial page writers behind a wall. That half-hearted attempt was a mistake and led readers to only consume the remaining 85% of daily content that was still open to the public. In a world where The New York Times remains a must-read for New Yorkers and an increasingly important source of news for those outside the New York area as well, the paper will find that it remains indispensable. For that matter, according to Alexa.com, 35% of all NYT online readers come from outside the U.S., where physical delivery isn't even an option.Let's do the math. The New York Times has roughly 12 to 15 million unique visitors to its site in any given month. As the paper will allow partial free access to casual surfers, traffic and ad revenue can remain at reasonable levels. Let's assume that only 500,000 readers are willing to pay $100 a year for full online access (which is the same price as the online WSJ). That works out to be $50 million in incremental revenue. The math is similar if the NYT charges $50/year and gets one million subscribers. These numbers are simply a guess at this point. And that $50 million may not cut it in light of lost revenue on the print side.Maybe these estimates are too conservative. How many of us will be willing to pay? I know I will, as I cannot survive without my daily fix of what is still arguably the best news media organization in the world. But the analogy to The Wall Street Journal 's WSJ.com may not apply. That publication is a must-read in the business community and subscriptions are often covered by employers. That won't be the case with nytimes.com.We'll soon find out what kind of demand exists for a paid online subscription. In a best-case scenario, subscriptions exceed what are now fairly low expectations and the nytimes.com becomes quite profitable (especially when you consider that it has no printing and delivery costs). Indeed, the initiative would have to be so profitable that it more than offsets the lost revenue from print subscriptions that are cannibalized. And that's no sure thing.In a worst-case scenario, response is tepid and subscription levels are below forecasts even as traffic to the site plummets, killing online ad revenue. Right now, analysts are modeling for a modest fall in profits next year, largely due to rebounding newsprint prices. Few expect to see a return to the last few years, when sales fell -3%, -8% and -17% in 2007, 2008 and 2009, but it's not clear that assumptions of flat revenue for the next few years are reasonable. That's why shares have sold off and trade for less than four times projected 2011 EBITDA. It is very rare that a company with such a strong brand and market share to trade that cheaply. Then again, being the best house in a very bad neighborhood is nothing to brag about. Despite these obvious negatives, investors need to closely watch this coming experiment. It will likely be a number of months before we can draw firm conclusions, but the New York Times Co. is one of the few media companies that can possibly monetize its content online effectively.If shares fall further, closer to the $5 mark, then they would be extremely tempting considering that this newspaper publisher still throws off more than $100 million in annual free cash flow. At that price, the drumbeat of activist investors and deal-makers would grow larger. **Disclosure:** Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[Original post](http://www.streetauthority.com/a/well-known-media-stock-worth-second-look-456596) See also [Colgate Palmolive: Capital Appreciation and Steady Dividends](http://seekingalpha.com/article/229359-colgate-palmolive-capital-appreciation-and-steady-dividends?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 12.1437
Stock Price 2 days before: 12.281
Stock Price 1 day before: 12.2865
Stock Price at release: 12.3788
Risk-Free Rate at release: 0.0008
| 12.0847 |
Symbol: CLDT
Security: Chatham Lodging Trust
Related Stocks/Topics: Markets
Title: New Dividend Stock Added to Database (CLDT)
Type: News
Publication: Dividend.com
Publication Author: Unknown
Date: 2010-09-29 06:29:00
Article: We are adding shares of Chatham Lodging Trust ([CLDT](http://www.dividend.com/dividend-stocks/financial/reit-hotel/motel/cldt-chatham-lodging-trust/)) ) to our database of nearly 1600 dividend-paying stocks on news the company has initiated a dividend payout.Chatham Lodging Trust ([CLDT](http://www.dividend.com/dividend-stocks/financial/reit-hotel/motel/cldt-chatham-lodging-trust/)) ) - this company is a self-advised real estate investment trust that was organized to invest in upscale extended-stay hotels and premium-branded select-service hotels. The company currently owns 11 hotels with an aggregate of 1,381 rooms/suites in 8 states and has one additional hotel under contract to purchase. 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: 17.413
Stock Price 2 days before: 17.4847
Stock Price 1 day before: 17.5827
Stock Price at release: 17.5646
Risk-Free Rate at release: 0.0012
| 18.3413 |
Symbol: RDWR
Security: Radware Ltd.
Related Stocks/Topics: DELL|Markets|HPQ
Title: Trader bets Radware will stay hot
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-09-30 01:15:00
Article: Radware has been red-hot along with other cloud-computing stocks, prompting one large trader to position for further upside. [RDWR](http://www.optionmonster.com/cms/commentary/images/rdwrpre930.png) optionMONSTER's Heat Seeker tracking system detected the purchase of more than 6,000 November 40 calls for about $1.20 and the sale of a matching number of November 25 puts for $0.60. The trade resulted in a cost of about $0.60, and volume was more than 4 times open interest in both strikes. RDWR rose 8.11 percent to $34.79 yesterday and is up 38 percent in the last month. The maker of products that help companies use data centers has been climbing since the market bottomed in March 2009, and it has been fire since mid-September when it surged to a 10-year high amid takeover speculation.The buzz followed the bidding war between Hewlett-Packard and Dell over 3Par, which led investors to look for other companies that could also be purchased.Yesterday's option trade came amid a sudden afternoon rally in RDWR shares. The strategy is a low-cost and relatively low-risk way to leverage a big move. It will double the investor's money for every $0.60 that the shares trade over $40.60 on expiration.It will lose money if RDWR falls below $25, and expire worthless if it closes between that level and $40.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 34.6253
Stock Price 2 days before: 33.3007
Stock Price 1 day before: 32.3135
Stock Price at release: 34.8728
Risk-Free Rate at release: 0.0014
| 35.5933 |
Symbol: ERII
Security: Energy Recovery, Inc.
Related Stocks/Topics: Markets|AYI|LNG|CMI|CLNE
Title: Shawn Severson: Surprising Opportunities in Cleantech
Type: News
Publication: International Business Times
Publication Author: Unknown
Date: 2010-09-30 03:17:00
Article: **Shawn Severson: Surprising Opportunities in Cleantech** Source: Brian Sylvester of The Energy Report 9/30/10[http://www.theenergyreport.com/pub/na/7505](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/na/7505/%22) Cleantech goes far beyond solar power, according to Shawn Severson. As a managing director of cleantech research with ThinkEquity in San Francisco, he finds mainstream companies poised to cash in on common-sense technologies that save energy and money. In this exclusive interview with The Energy Report, Shawn makes the case that cleantech is as much about saving money as it is about saving the environment. **The Energy Report:** You recently joined ThinkEquity in San Francisco as a cleantech analyst after doing institutional sales for Robert W. Baird & Co. in London? **Shawn Severson:** I have been a technology analyst most of my career. In London, I actually switched roles from research to institutional sales. I worked with a variety of industries and companies as I approached my clients with ideas. That's where the cleantech aspect grabbed hold of me. In the European market, there is a very different approach to cleantech. I saw a tremendous opportunity to focus research on cleantech in the U.S.My goal has been to look at traditional companies, such as [Cooper Industries Ltd. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2850/%22) [CBE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBE&selected=CBE) ) or [Acuity Brands Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2848/%22) [AYI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AYI&selected=AYI) ) , and identify cleantech trends that are going to benefit those types of companies. I want to find strong cleantech tailwinds and underappreciated or overlooked companies as cleantech plays. These are certainly great companies in their own right, but some of the trends that are happening inside these organizations aren't always fully recognized by cleantech investors. **TER:** What about the European market got your attention?**SS:** Investment in the cleantech industry is much more developed in Europe and Asia. They have a more comprehensive view of what cleantech is and how to invest in it. My experience with clients in London expanded my knowledge on how to invest in cleantech and other opportunities on a global basis.Looking at companies like [Impax Asset Management Group Plc (LON:IPX)](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2887/%22) , [Ecofin Water and Power Opportunities Plc (LON:ECWO)](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2888/%22) and many others in Europe gave me a comprehensive approach to cleantech research that goes way beyond a few solar companies here and there. Cleantech is encompassed in numerous different aspects of water treatment, water conveyance, energy efficiency and encompassing things like lighting and heating, ventilation and air conditioning (HVAC) companies. I've developed a much broader perspective on cleantech and how to invest in it. **TER:** How would you define \"cleantech\"?**SS:** Cleantech is generally anything that's involved in improving energy efficiency and energy consumption, or in looking for renewable sources of energy. But I believe U.S. investors need to broaden this definition. Companies can benefit from all those aspects of cleantech and have product that people don't always think of. Take wastewater treatment, for example. How does that play into cleantech? Well, it certainly does because it addresses water shortages, pollution, environmental concerns and regulations. Companies that are involved in that aspect of the market certainly can benefit from those trends. **TER:** Could such a broad definition of cleantech lead some companies to brand themselves as cleantech in order to leverage on the burgeoning industry when perhaps their strategy isn't really cleantech?**SS:** For a company to qualify as cleantech in my universe, it must have 25% of its revenue coming from cleantech products or services.The index company FTSE in London and Impax Asset Management, a former client of mine, developed the FTSE Environmental Markets Index series. They meticulously broke companies down into cleantech percentages. The indices have a broad definition of what an environmental technology is, but they require that from 20% to 50% of a company's business be derived from those technologies.In Asia and in Europe, that's very important because the indices are a benchmark for a lot of cleantech funds. However, in the U.S., we have a very underdeveloped market of cleantech funds. We have some exchange-traded funds and a few funds define themselves as investing in cleantech, but it's still a very early stage market for the U.S. **TER:** Why should U.S. investors start taking notice of this relative unknown sector? **SS:** One of my favorite areas of investment is in \"smart\" buildings. About 30% of the operating costs of a traditional commercial building on an annual basis is from electricity. Lighting in a typical building accounts for nearly 39% of an electricity bill. There is a lot of potential to reduce that by doing something as simple as turning the lights on and off automatically. That's where investors should focus.We spend billions and billions of dollars in areas like solar and more speculative areas of alternative energy, but wouldn't it be simpler to figure out how to use less electricity first? These are the types of things that cleantech can offer in terms of energy efficiency. Turn the lights off first. Figure out how to do that. The economics of that are pretty straightforward. That's also the beauty of cleantech for investors and for companies that participate in this market.I try to find products that offer a return on investment that will create demand. There are some interesting and compelling growth stories driven on an ROI basis from products in lighting, HVAC, insulation and windows. There are a number of applications and products that are not speculative technologies and that aren't being \"green\" just for the sake of being \"green.\" These are financial decisions that can drive demand. **TER:** Many investors might think that cleantech is too specialized for a diversified portfolio. Is this true of your coverage?**SS:** Inherently, I try to find diversification. An interesting aspect of my approach is that these companies are mainstream but have significant parts of their business that benefit from cleantech applications. Take a company like Cooper Industries. It is a major player in supplying utilities with products like transformers and is also a major player in smart-grid applications. Cooper is one of the top four suppliers of lighting fixtures in the world, as well. It sells thousands of products to the refinery and manufacturing sectors. About 30% to 40% of their business is driven by cleantech, but they also have traditional exposure. **TER:** What percentage of an investor's portfolio should be in cleantech?**SS:** If it was just pure cleantech, such as solar companies, natural gas vehicle companies and lithium-ion battery maker [A123 Systems Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2889/%22) [AONE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AONE&selected=AONE) ) , an investor probably wants to keep about a 15% interest in that type of allocation. However, the way I think an investor can enhance that, while at the same time reducing risk, is investing in companies like Acuity Brands and Cooper. Those types of companies provide the cleantech aspect, as well as diversification through industrial growth.Investors should be careful about piling too much into a very narrow segment of cleantech, however. Those investments have a role, but it is a small role, like 10% to 15%. Then boost that exposure through other growth ideas that can benefit from the more obvious cleantech tailwinds without being pure plays. **TER:** Are there any cleantech myths you would like to dispel?**SS:** One myth is that light-emitting diodes are the only way to play enhanced lighting. It's certainly true that over time LEDs are going to be a very significant part of the market, but there are other ways to improve energy efficiency, such as an occupancy sensor. I would encourage investors to keep an open mind and not focus exclusively on LED suppliers like [Cree Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2890/%22) [CREE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CREE&selected=CREE) ) as the only way to play this trend. On the fuel side, I've looked at a number of private liquefied natural gas ([LNG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LNG&selected=LNG)) ) companies and others trying to find alternative fuels. These things take a lot of time and a lot of development. Solar was supposed to be the thing even back in the 1970s and it's just now being implemented in the marketplace. Investors should be focused on products in cleantech that offer a legitimate ROI to the user and to the customer. **TER:** In a recent ThinkEquity report you wrote, \"Energy efficiency is an ROI-driven decision that is viable even in slow-growth economies.\" In 2009, about three-quarters of the retrofit activity on existing buildings worth about roughly $30 billion was related to energy efficiency. By 2014, that's expected to grow to almost $50 billion. What are some companies poised to benefit from that growth?**SS:** Acuity Brands and Cooper are the way to play this. Lighting is one of the first points of attack for energy efficiency in smart buildings. Both of these companies have excellent plays into smart buildings and energy efficiency because they can offer paybacks within three years. A company making an expenditure on upgrading a lighting system can be paid back in as few as three years through energy savings and everything after that is dropping to the bottom line.In terms of the green angle, this is good for the environment. The building could be certified as a Leadership in Energy and Environmental Design (LEED) building or through the ENERGY STAR program. That's why these companies offer a unique opportunity. They're cleantech because they save energy, but energy is money. These products save money and that's something everybody can relate to-green or not green. **TER:** Let's talk more about Acuity, which you have rated a \"buy\" with a target price of $51. **SS:** Acuity Brands, one of the leading lighting companies in the world, makes lighting fixtures or luminaries. It does not make bulbs or LEDs. It sources those from other companies like Cree. Acuity also makes sensors and switches for energy-efficient lighting systems.Historically, this business has been focused on new commercial construction, but now retrofitting and energy conservation are on the forefront of people's minds. Acuity Brands is one of the companies that will benefit from a three-year or longer trend of retrofitting commercial buildings. The footprint of existing commercial buildings is significantly larger than the new construction that's put in place every year.In fact, Cooper, one of their competitors in lighting, just pre-released positive numbers for their fiscal third quarter recently. One of the major factors that they specifically cited in my conversations with them was the fact that retrofit commercial lighting is significantly better than they had anticipated. Acuity Brands is scheduled to report in early October. **TER:** We're not talking about small companies here. Cooper had revenue of $5 billion dollars last year. You have a \"buy\" rating on Cooper as well, with a target of $59. It's trading at about $48 right now. Do you believe that we're going to see a short-term catalyst right now for share appreciation with Cooper?**SS:** I do. Cooper has a cleantech theme, but it's not the only reason to own its stock. They also participate in the utility industry. There was actually a decline in the demand for electricity in the U.S. recently, which is the first time that's happened. A lot of stress came off the grid and utilities deferred expansion and upgrades that they had planned.Going forward, however, there are limits to how long utilities can go without spending on expansion. Cooper is in a very interesting position because it will benefit from the lighting trends we talked about and it's also a significant player in the utility grids-smart grids, traditional infrastructure and transmission.An investor in Cooper gets great participation in lighting and great participation in the grids. **TER:** In the same research report you wrote, \"A large portion of the cleantech industry is focused on driving new ways to generate energy, but we believe this sector offers a large body of product and services capable of significantly reducing energy consumption TODAY.\" What are some companies with those game-changing products and services?**SS:** [Capstone Turbine Corp. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2849/%22) [CPST](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CPST&selected=CPST) ) manufactures a micro-turbine that generates clean energy. It can be used during peak times instead of paying very high prices for energy coming from a grid. The interesting aspect is that it's not just a generator. It works very well in what's called CHP, or co-heat and power generation. Think of all the heat that comes out of a generator. It can be used to heat a building or water, or for any industrial process. Taking the energy-efficiency theme one step further is capturing that heat and utilizing it for any one of those applications. Products like the micro-turbine capture all of this potentially lost energy otherwise just emitted as heat. It's green and it's clean, but the fact of the matter is it is a financial decision. It reduces electricity consumption for heating. **TER:** Capstone's a pretty small company, with a market cap of around $250 million. You rate it a \"buy\" with a target price of $1.50. It's trading around $0.70 now. **SS:** It's very speculative. **TER:** Is there something about this technology that makes it a clear winner above similar technology?**SS:** The problem with the micro-turbine industry has been that upfront costs have been very high. They're more efficient over time and total cost of ownership. The key is to drive down the upfront costs versus a reciprocating engine.A micro-turbine is significantly cleaner, however. A company could spend hundreds of millions of dollars and make very, very little improvement on the emissions of a reciprocating engine. In areas like California, where there is California Air Resources Board (CARB) certification, most reciprocating engines can't even qualify. To get to a new level, we have to change the technology. Micro-turbines are a proven technology. I expect that over time there'll be a greater adoption rate of micro-turbines in the overall marketplace. Capstone just happens to be a market-share leader. Bear in mind there are plenty of turbines out there, but they're not micro. This is a smaller unit generating about 250 kilowatts versus 1 megawatt. It's a smaller portion of the market in terms of the size, but nonetheless a very interesting technology. **TER:** You said in a report that investors should view water as an \"investable theme\" because of supply/demand imbalance. Can you give us a couple of names that match with that thesis?**SS:** Some people believe that water is an inalienable right and they're not going to pay for it. But every study indicates that we're going to have an increasing problem with water as agricultural needs rise, the population expands, and as standards of living increase in developing countries.[PICO Holdings Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2738/%22) [PICO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PICO&selected=PICO) ) owns a significant number of water rights in the Southwest-the Las Vegas and Phoenix areas and the Colorado River corridor. That area has seen a big boom in demand over the years. The real estate bubble drove demand because you can't build a new subdivision or development until you have access to water. PICO is subject, to some degree, to what's happening in the real estate market, industrial production and growth of the southwestern states. As an investment theme, PICO is an interesting way, and perhaps the only way in the public market, that an investor can get access to a water-rights play.Another play on long-term water shortages is [Energy Recovery, Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2852/%22) [ERII](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ERII&selected=ERII) ) , which I have rated a \"hold.\" The company has a product that's used in the reverse-osmosis market to turn saltwater into freshwater. The product is about 60% more energy efficient than older, traditional technologies. Areas like Australia, Spain, North Africa and developing nations rely on seawater as one of the primary sources of incremental freshwater. Those areas require reverse-osmosis plants. Energy Recovery shares have a fair-value estimate of $7.50 and recently traded in the $4 range. **TER:** PICO just agreed to build and operate a canola processing facility in Minnesota, but the stock has come under pressure recently and come down quite a bit. **SS:** Yes. It was trading around $28 today. I have a \"buy\" on PICO with a $48 price target. **TER:** What are some small-cap cleantech names that investors should be aware of?**SS:** A very important part of cleantech that should be in investors' portfolios is natural gas vehicle companies. There's been lots of buzz about those companies since the New Alternative Transportation to Give Americans Solutions (NAS GAS) Act of 2009. I definitely think investors should own one stock in that space. Natural gas has a lot of appealing aspects: It's cleaner, cheaper and abundant. Now electric vehicles are certainly interesting, but we need a bridge technology before something like that becomes widespread. The fact of the matter is that big, heavy-duty Class A trucks will probably never run off of electricity. They will still need a large engine. Natural gas provides a great bridge technology.The adoption rate of this could accelerate dramatically if there is some positive legislation, which is likely to get passed late this year or early next year. That could create a major uptick in demand for fleet vehicles and larger trucks. **TER:** What are some companies in that space that are poised to benefit from that type of legislation?**SS:** [Westport Innovations Inc. (TSX:WPT)](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2599/%22) is my favorite. I also think [Fuel Systems Solutions Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2853/%22) [FSYS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FSYS&selected=FSYS) ) is a very interesting investment opportunity. There are also some companies that I don't cover, such as [Clean Energy Fuels Corp. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2891/%22) [CLNE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CLNE&selected=CLNE) ) and the Italian company [Landi Renzo S.p.A. (BIT:LR)](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2892/%22) , which is active in Europe and the U.S. now.Natural gas vehicles are all over the place in Europe. If you were a European, you would have one or know someone that has one. It's more of an unknown in the U.S. Natural gas vehicles are also common in emerging markets like Pakistan and South America. It's my perspective that investors should own at least one of these names going forward. **TER:** What do these companies do?**SS:** They basically take a traditional engine, be it a large-scale diesel engine or a car engine, and convert them to run off of gasoline, natural gas or both. The conversion can be done right on the factory floor or as an aftermarket retrofit. There are very large aftermarkets for conversion in other parts of the world.Westport is a little different-it is focused on the heavy-duty and medium truck market. Westport, which is partnered with [Cummins Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2893/%22) [CMI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CMI&selected=CMI) ) , converts engines to natural gas right on the Cummins manufacturing line.Some of those run off of liquid natural gas, which is required for the big Class A trucks. That's a much more complicated technology that other companies like Clean Energy, Fuel Systems and Landi Renzo don't have the patents for. Westport is the only company today that can supply those types of engines. **TER:** One issue that I would have as an investor is that there's no infrastructure here for natural gas vehicles. Where do you go to fill up your natural gas car in the U.S.?**SS:** Right. In Europe and other markets it's no problem. China, like the U.S., does not have much of an infrastructure. However, China and the U.S. are still tremendous market opportunities. The opportunity isn't from individuals buying natural gas vehicles. The opportunity is from companies like UPS, AT&T or the post office that have fleets of vehicles that return to the same place every night. In that situation, there's no problem with infrastructure because they can have a natural gas fueling station at their sites. **TER:** Are there cost benefits that would make that type of investment worthwhile for a company?**SS:** Yes. Natural gas is about $1 less a gallon compared to its gasoline or diesel equivalents. If a large truck burns 20,000 gallons a year, that could add up to a lot of savings for a company. Plus, there are some excellent subsidies from the government for buying a natural gas engine. Upcoming legislation could increase these incentives even further. **TER:** Do you have some final thoughts on cleantech that you'd like investors to take away?**SS:** I would encourage investors to open their eyes and understand that cleantech can be a driver within a company. It doesn't have to be a pure-play approach. Look at how some of these companies can benefit from a cleantech segment of their business. The market has not yet fully recognized the growth potential that can come from cleantech tailwinds. I want to find positive surprises. Cleantech can generate surprises over the next couple of years for companies that we don't always identify as being in the cleantech sector. **TER:** Thank you for your unique perspective, Shawn.Shawn Severson has more than 16 years of experience in the investment industry as an equity research analyst and institutional salesperson. He recently joined [ThinkEquity](http://www.ibtimes.com/%22http://www.thinkequity.com//%22) in San Francisco from Robert W. Baird in London, where he was a director in the institutional sales group and specialized in working with global hedge funds and proprietary trading desks. Previously, he worked as a senior analyst at Raymond James in St. Petersburg, Fla., where he covered the IT supply chain for more than eight years. He has been ranked numerous times as one of The Wall Street Journal's \"Best on the Street\" and received recognition for stock picking and earnings estimate accuracy from Starmine. Before joining Raymond James, he worked as a senior analyst at EVEREN Securities (Kemper) in Chicago covering the technology sector. Want to read more exclusive Energy Report interviews like this? [Sign up](http://www.ibtimes.com/%22http://www.theenergyreport.com/cs/user/print/htdocs/38/%22) 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.ibtimes.com/%22http://www.theenergyreport.com/pub/htdocs/exclusive.html/%22) page. **DISCLOSURE:**1) Brian Sylvester of The Energy Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.2) The following companies mentioned in the interview are sponsors of The Energy Report: None.3) Shawn Severson: 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 - [The Energy Report](http://www.ibtimes.com/%22http://www.theenergyreport.com//%22) 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 Energy 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 Energy Report. 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Stock Price 4 days before: 3.6077
Stock Price 2 days before: 3.66293
Stock Price 1 day before: 3.58146
Stock Price at release: 3.63174
Risk-Free Rate at release: 0.0014
| 3.5578 |
Symbol: CLNE
Security: Clean Energy Fuels Corp.
Related Stocks/Topics: Markets|AYI|LNG|CMI|ERII
Title: Shawn Severson: Surprising Opportunities in Cleantech
Type: News
Publication: International Business Times
Publication Author: Unknown
Date: 2010-09-30 03:17:00
Article: **Shawn Severson: Surprising Opportunities in Cleantech** Source: Brian Sylvester of The Energy Report 9/30/10[http://www.theenergyreport.com/pub/na/7505](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/na/7505/%22) Cleantech goes far beyond solar power, according to Shawn Severson. As a managing director of cleantech research with ThinkEquity in San Francisco, he finds mainstream companies poised to cash in on common-sense technologies that save energy and money. In this exclusive interview with The Energy Report, Shawn makes the case that cleantech is as much about saving money as it is about saving the environment. **The Energy Report:** You recently joined ThinkEquity in San Francisco as a cleantech analyst after doing institutional sales for Robert W. Baird & Co. in London? **Shawn Severson:** I have been a technology analyst most of my career. In London, I actually switched roles from research to institutional sales. I worked with a variety of industries and companies as I approached my clients with ideas. That's where the cleantech aspect grabbed hold of me. In the European market, there is a very different approach to cleantech. I saw a tremendous opportunity to focus research on cleantech in the U.S.My goal has been to look at traditional companies, such as [Cooper Industries Ltd. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2850/%22) [CBE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBE&selected=CBE) ) or [Acuity Brands Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2848/%22) [AYI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AYI&selected=AYI) ) , and identify cleantech trends that are going to benefit those types of companies. I want to find strong cleantech tailwinds and underappreciated or overlooked companies as cleantech plays. These are certainly great companies in their own right, but some of the trends that are happening inside these organizations aren't always fully recognized by cleantech investors. **TER:** What about the European market got your attention?**SS:** Investment in the cleantech industry is much more developed in Europe and Asia. They have a more comprehensive view of what cleantech is and how to invest in it. My experience with clients in London expanded my knowledge on how to invest in cleantech and other opportunities on a global basis.Looking at companies like [Impax Asset Management Group Plc (LON:IPX)](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2887/%22) , [Ecofin Water and Power Opportunities Plc (LON:ECWO)](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2888/%22) and many others in Europe gave me a comprehensive approach to cleantech research that goes way beyond a few solar companies here and there. Cleantech is encompassed in numerous different aspects of water treatment, water conveyance, energy efficiency and encompassing things like lighting and heating, ventilation and air conditioning (HVAC) companies. I've developed a much broader perspective on cleantech and how to invest in it. **TER:** How would you define \"cleantech\"?**SS:** Cleantech is generally anything that's involved in improving energy efficiency and energy consumption, or in looking for renewable sources of energy. But I believe U.S. investors need to broaden this definition. Companies can benefit from all those aspects of cleantech and have product that people don't always think of. Take wastewater treatment, for example. How does that play into cleantech? Well, it certainly does because it addresses water shortages, pollution, environmental concerns and regulations. Companies that are involved in that aspect of the market certainly can benefit from those trends. **TER:** Could such a broad definition of cleantech lead some companies to brand themselves as cleantech in order to leverage on the burgeoning industry when perhaps their strategy isn't really cleantech?**SS:** For a company to qualify as cleantech in my universe, it must have 25% of its revenue coming from cleantech products or services.The index company FTSE in London and Impax Asset Management, a former client of mine, developed the FTSE Environmental Markets Index series. They meticulously broke companies down into cleantech percentages. The indices have a broad definition of what an environmental technology is, but they require that from 20% to 50% of a company's business be derived from those technologies.In Asia and in Europe, that's very important because the indices are a benchmark for a lot of cleantech funds. However, in the U.S., we have a very underdeveloped market of cleantech funds. We have some exchange-traded funds and a few funds define themselves as investing in cleantech, but it's still a very early stage market for the U.S. **TER:** Why should U.S. investors start taking notice of this relative unknown sector? **SS:** One of my favorite areas of investment is in \"smart\" buildings. About 30% of the operating costs of a traditional commercial building on an annual basis is from electricity. Lighting in a typical building accounts for nearly 39% of an electricity bill. There is a lot of potential to reduce that by doing something as simple as turning the lights on and off automatically. That's where investors should focus.We spend billions and billions of dollars in areas like solar and more speculative areas of alternative energy, but wouldn't it be simpler to figure out how to use less electricity first? These are the types of things that cleantech can offer in terms of energy efficiency. Turn the lights off first. Figure out how to do that. The economics of that are pretty straightforward. That's also the beauty of cleantech for investors and for companies that participate in this market.I try to find products that offer a return on investment that will create demand. There are some interesting and compelling growth stories driven on an ROI basis from products in lighting, HVAC, insulation and windows. There are a number of applications and products that are not speculative technologies and that aren't being \"green\" just for the sake of being \"green.\" These are financial decisions that can drive demand. **TER:** Many investors might think that cleantech is too specialized for a diversified portfolio. Is this true of your coverage?**SS:** Inherently, I try to find diversification. An interesting aspect of my approach is that these companies are mainstream but have significant parts of their business that benefit from cleantech applications. Take a company like Cooper Industries. It is a major player in supplying utilities with products like transformers and is also a major player in smart-grid applications. Cooper is one of the top four suppliers of lighting fixtures in the world, as well. It sells thousands of products to the refinery and manufacturing sectors. About 30% to 40% of their business is driven by cleantech, but they also have traditional exposure. **TER:** What percentage of an investor's portfolio should be in cleantech?**SS:** If it was just pure cleantech, such as solar companies, natural gas vehicle companies and lithium-ion battery maker [A123 Systems Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2889/%22) [AONE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AONE&selected=AONE) ) , an investor probably wants to keep about a 15% interest in that type of allocation. However, the way I think an investor can enhance that, while at the same time reducing risk, is investing in companies like Acuity Brands and Cooper. Those types of companies provide the cleantech aspect, as well as diversification through industrial growth.Investors should be careful about piling too much into a very narrow segment of cleantech, however. Those investments have a role, but it is a small role, like 10% to 15%. Then boost that exposure through other growth ideas that can benefit from the more obvious cleantech tailwinds without being pure plays. **TER:** Are there any cleantech myths you would like to dispel?**SS:** One myth is that light-emitting diodes are the only way to play enhanced lighting. It's certainly true that over time LEDs are going to be a very significant part of the market, but there are other ways to improve energy efficiency, such as an occupancy sensor. I would encourage investors to keep an open mind and not focus exclusively on LED suppliers like [Cree Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2890/%22) [CREE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CREE&selected=CREE) ) as the only way to play this trend. On the fuel side, I've looked at a number of private liquefied natural gas ([LNG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LNG&selected=LNG)) ) companies and others trying to find alternative fuels. These things take a lot of time and a lot of development. Solar was supposed to be the thing even back in the 1970s and it's just now being implemented in the marketplace. Investors should be focused on products in cleantech that offer a legitimate ROI to the user and to the customer. **TER:** In a recent ThinkEquity report you wrote, \"Energy efficiency is an ROI-driven decision that is viable even in slow-growth economies.\" In 2009, about three-quarters of the retrofit activity on existing buildings worth about roughly $30 billion was related to energy efficiency. By 2014, that's expected to grow to almost $50 billion. What are some companies poised to benefit from that growth?**SS:** Acuity Brands and Cooper are the way to play this. Lighting is one of the first points of attack for energy efficiency in smart buildings. Both of these companies have excellent plays into smart buildings and energy efficiency because they can offer paybacks within three years. A company making an expenditure on upgrading a lighting system can be paid back in as few as three years through energy savings and everything after that is dropping to the bottom line.In terms of the green angle, this is good for the environment. The building could be certified as a Leadership in Energy and Environmental Design (LEED) building or through the ENERGY STAR program. That's why these companies offer a unique opportunity. They're cleantech because they save energy, but energy is money. These products save money and that's something everybody can relate to-green or not green. **TER:** Let's talk more about Acuity, which you have rated a \"buy\" with a target price of $51. **SS:** Acuity Brands, one of the leading lighting companies in the world, makes lighting fixtures or luminaries. It does not make bulbs or LEDs. It sources those from other companies like Cree. Acuity also makes sensors and switches for energy-efficient lighting systems.Historically, this business has been focused on new commercial construction, but now retrofitting and energy conservation are on the forefront of people's minds. Acuity Brands is one of the companies that will benefit from a three-year or longer trend of retrofitting commercial buildings. The footprint of existing commercial buildings is significantly larger than the new construction that's put in place every year.In fact, Cooper, one of their competitors in lighting, just pre-released positive numbers for their fiscal third quarter recently. One of the major factors that they specifically cited in my conversations with them was the fact that retrofit commercial lighting is significantly better than they had anticipated. Acuity Brands is scheduled to report in early October. **TER:** We're not talking about small companies here. Cooper had revenue of $5 billion dollars last year. You have a \"buy\" rating on Cooper as well, with a target of $59. It's trading at about $48 right now. Do you believe that we're going to see a short-term catalyst right now for share appreciation with Cooper?**SS:** I do. Cooper has a cleantech theme, but it's not the only reason to own its stock. They also participate in the utility industry. There was actually a decline in the demand for electricity in the U.S. recently, which is the first time that's happened. A lot of stress came off the grid and utilities deferred expansion and upgrades that they had planned.Going forward, however, there are limits to how long utilities can go without spending on expansion. Cooper is in a very interesting position because it will benefit from the lighting trends we talked about and it's also a significant player in the utility grids-smart grids, traditional infrastructure and transmission.An investor in Cooper gets great participation in lighting and great participation in the grids. **TER:** In the same research report you wrote, \"A large portion of the cleantech industry is focused on driving new ways to generate energy, but we believe this sector offers a large body of product and services capable of significantly reducing energy consumption TODAY.\" What are some companies with those game-changing products and services?**SS:** [Capstone Turbine Corp. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2849/%22) [CPST](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CPST&selected=CPST) ) manufactures a micro-turbine that generates clean energy. It can be used during peak times instead of paying very high prices for energy coming from a grid. The interesting aspect is that it's not just a generator. It works very well in what's called CHP, or co-heat and power generation. Think of all the heat that comes out of a generator. It can be used to heat a building or water, or for any industrial process. Taking the energy-efficiency theme one step further is capturing that heat and utilizing it for any one of those applications. Products like the micro-turbine capture all of this potentially lost energy otherwise just emitted as heat. It's green and it's clean, but the fact of the matter is it is a financial decision. It reduces electricity consumption for heating. **TER:** Capstone's a pretty small company, with a market cap of around $250 million. You rate it a \"buy\" with a target price of $1.50. It's trading around $0.70 now. **SS:** It's very speculative. **TER:** Is there something about this technology that makes it a clear winner above similar technology?**SS:** The problem with the micro-turbine industry has been that upfront costs have been very high. They're more efficient over time and total cost of ownership. The key is to drive down the upfront costs versus a reciprocating engine.A micro-turbine is significantly cleaner, however. A company could spend hundreds of millions of dollars and make very, very little improvement on the emissions of a reciprocating engine. In areas like California, where there is California Air Resources Board (CARB) certification, most reciprocating engines can't even qualify. To get to a new level, we have to change the technology. Micro-turbines are a proven technology. I expect that over time there'll be a greater adoption rate of micro-turbines in the overall marketplace. Capstone just happens to be a market-share leader. Bear in mind there are plenty of turbines out there, but they're not micro. This is a smaller unit generating about 250 kilowatts versus 1 megawatt. It's a smaller portion of the market in terms of the size, but nonetheless a very interesting technology. **TER:** You said in a report that investors should view water as an \"investable theme\" because of supply/demand imbalance. Can you give us a couple of names that match with that thesis?**SS:** Some people believe that water is an inalienable right and they're not going to pay for it. But every study indicates that we're going to have an increasing problem with water as agricultural needs rise, the population expands, and as standards of living increase in developing countries.[PICO Holdings Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2738/%22) [PICO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PICO&selected=PICO) ) owns a significant number of water rights in the Southwest-the Las Vegas and Phoenix areas and the Colorado River corridor. That area has seen a big boom in demand over the years. The real estate bubble drove demand because you can't build a new subdivision or development until you have access to water. PICO is subject, to some degree, to what's happening in the real estate market, industrial production and growth of the southwestern states. As an investment theme, PICO is an interesting way, and perhaps the only way in the public market, that an investor can get access to a water-rights play.Another play on long-term water shortages is [Energy Recovery, Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2852/%22) [ERII](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ERII&selected=ERII) ) , which I have rated a \"hold.\" The company has a product that's used in the reverse-osmosis market to turn saltwater into freshwater. The product is about 60% more energy efficient than older, traditional technologies. Areas like Australia, Spain, North Africa and developing nations rely on seawater as one of the primary sources of incremental freshwater. Those areas require reverse-osmosis plants. Energy Recovery shares have a fair-value estimate of $7.50 and recently traded in the $4 range. **TER:** PICO just agreed to build and operate a canola processing facility in Minnesota, but the stock has come under pressure recently and come down quite a bit. **SS:** Yes. It was trading around $28 today. I have a \"buy\" on PICO with a $48 price target. **TER:** What are some small-cap cleantech names that investors should be aware of?**SS:** A very important part of cleantech that should be in investors' portfolios is natural gas vehicle companies. There's been lots of buzz about those companies since the New Alternative Transportation to Give Americans Solutions (NAS GAS) Act of 2009. I definitely think investors should own one stock in that space. Natural gas has a lot of appealing aspects: It's cleaner, cheaper and abundant. Now electric vehicles are certainly interesting, but we need a bridge technology before something like that becomes widespread. The fact of the matter is that big, heavy-duty Class A trucks will probably never run off of electricity. They will still need a large engine. Natural gas provides a great bridge technology.The adoption rate of this could accelerate dramatically if there is some positive legislation, which is likely to get passed late this year or early next year. That could create a major uptick in demand for fleet vehicles and larger trucks. **TER:** What are some companies in that space that are poised to benefit from that type of legislation?**SS:** [Westport Innovations Inc. (TSX:WPT)](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2599/%22) is my favorite. I also think [Fuel Systems Solutions Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2853/%22) [FSYS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FSYS&selected=FSYS) ) is a very interesting investment opportunity. There are also some companies that I don't cover, such as [Clean Energy Fuels Corp. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2891/%22) [CLNE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CLNE&selected=CLNE) ) and the Italian company [Landi Renzo S.p.A. (BIT:LR)](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2892/%22) , which is active in Europe and the U.S. now.Natural gas vehicles are all over the place in Europe. If you were a European, you would have one or know someone that has one. It's more of an unknown in the U.S. Natural gas vehicles are also common in emerging markets like Pakistan and South America. It's my perspective that investors should own at least one of these names going forward. **TER:** What do these companies do?**SS:** They basically take a traditional engine, be it a large-scale diesel engine or a car engine, and convert them to run off of gasoline, natural gas or both. The conversion can be done right on the factory floor or as an aftermarket retrofit. There are very large aftermarkets for conversion in other parts of the world.Westport is a little different-it is focused on the heavy-duty and medium truck market. Westport, which is partnered with [Cummins Inc. ( ](http://www.ibtimes.com/%22http://www.theenergyreport.com/pub/co/2893/%22) [CMI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CMI&selected=CMI) ) , converts engines to natural gas right on the Cummins manufacturing line.Some of those run off of liquid natural gas, which is required for the big Class A trucks. That's a much more complicated technology that other companies like Clean Energy, Fuel Systems and Landi Renzo don't have the patents for. Westport is the only company today that can supply those types of engines. **TER:** One issue that I would have as an investor is that there's no infrastructure here for natural gas vehicles. Where do you go to fill up your natural gas car in the U.S.?**SS:** Right. In Europe and other markets it's no problem. China, like the U.S., does not have much of an infrastructure. However, China and the U.S. are still tremendous market opportunities. The opportunity isn't from individuals buying natural gas vehicles. The opportunity is from companies like UPS, AT&T or the post office that have fleets of vehicles that return to the same place every night. In that situation, there's no problem with infrastructure because they can have a natural gas fueling station at their sites. **TER:** Are there cost benefits that would make that type of investment worthwhile for a company?**SS:** Yes. Natural gas is about $1 less a gallon compared to its gasoline or diesel equivalents. If a large truck burns 20,000 gallons a year, that could add up to a lot of savings for a company. Plus, there are some excellent subsidies from the government for buying a natural gas engine. Upcoming legislation could increase these incentives even further. **TER:** Do you have some final thoughts on cleantech that you'd like investors to take away?**SS:** I would encourage investors to open their eyes and understand that cleantech can be a driver within a company. It doesn't have to be a pure-play approach. Look at how some of these companies can benefit from a cleantech segment of their business. The market has not yet fully recognized the growth potential that can come from cleantech tailwinds. I want to find positive surprises. Cleantech can generate surprises over the next couple of years for companies that we don't always identify as being in the cleantech sector. **TER:** Thank you for your unique perspective, Shawn.Shawn Severson has more than 16 years of experience in the investment industry as an equity research analyst and institutional salesperson. He recently joined [ThinkEquity](http://www.ibtimes.com/%22http://www.thinkequity.com//%22) in San Francisco from Robert W. Baird in London, where he was a director in the institutional sales group and specialized in working with global hedge funds and proprietary trading desks. Previously, he worked as a senior analyst at Raymond James in St. Petersburg, Fla., where he covered the IT supply chain for more than eight years. He has been ranked numerous times as one of The Wall Street Journal's \"Best on the Street\" and received recognition for stock picking and earnings estimate accuracy from Starmine. Before joining Raymond James, he worked as a senior analyst at EVEREN Securities (Kemper) in Chicago covering the technology sector. Want to read more exclusive Energy Report interviews like this? [Sign up](http://www.ibtimes.com/%22http://www.theenergyreport.com/cs/user/print/htdocs/38/%22) 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.ibtimes.com/%22http://www.theenergyreport.com/pub/htdocs/exclusive.html/%22) page. **DISCLOSURE:**1) Brian Sylvester of The Energy Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.2) The following companies mentioned in the interview are sponsors of The Energy Report: None.3) Shawn Severson: 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 - [The Energy Report](http://www.ibtimes.com/%22http://www.theenergyreport.com//%22) 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 Energy 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 Energy 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]](http://www.ibtimes.com/%22mailto:[email protected]/%22)
Stock Price 4 days before: 15.2172
Stock Price 2 days before: 14.6266
Stock Price 1 day before: 14.4328
Stock Price at release: 14.8157
Risk-Free Rate at release: 0.0014
| 14.3664 |
Symbol: JBLU
Security: JetBlue Airways Corporation
Related Stocks/Topics: LUV|Markets|BMY|UAL|VHC|CSCO|ALK|DAL
Title: These Stocks Were September's Biggest Gainers
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-01 04:17:00
Article: Of the 2,000 stocks that comprise the [Russell 2000 Index](http://investinganswers.com/term/russell-2000-index-369) , 10 of them rose by at least +50% in September. And half of those are the beneficiary of very generous [buyout](http://investinganswers.com/term/buyout-949) offers (while a sixth name rebuffed an offer). That M&A trend has been in place throughout the summer and shows no signs of slowing down. That's because large companies have ample cash to spend and need to find ways to keep sales rising while the [economy](http://investinganswers.com/term/economy-1517) sputters.In particular industries, one deal sets off a fire drill, leaving other major players to follow suit. **Delta ([DAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DAL&selected=DAL)) )** acquired Northwest in October 2008, and word quickly spread that Continental and **United ([UAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UAL&selected=UAL)) )** may need to join forces to keep up with [Delta](http://investinganswers.com/term/delta-79) 's massive new industry-leading position. Sure enough, a deal soon came together and recently closed. The ink wasn't even dry on that closing when **Southwest ([LUV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LUV&selected=LUV)) )** announced plans this week to acquire **AirTran ([AAI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AAI&selected=AAI)) )** . And of course, that deal is already triggering rumors of further deals, pushing up shares of **JetBlue (Nasdaq: JBLU)** and **Alaska Air ([ALK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ALK&selected=ALK)) )** . What gives? When an entire industry is growing at very low rates, companies start to focus on [market share](http://investinganswers.com/term/market-share-778) . And once one player builds share, others fear that newly-strengthened competitors will steal yet more share so they have to parry back.Biotech sees lots of deal-making for an entirely different reason. Small firms pursue often-promising new drugs but lack the resources to effectively market them once they are approved. Big drug firms have all kinds of marketing muscle, but they often lack products in development to deepen their presence in hot biotech areas. **Bristol-Myers Squibb's ([BMY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BMY&selected=BMY)) )** acquisition of **ZymoGenetics (Nasdaq: ZYMO)** is one of a long line in this sector, and you can expect to see dozens more just like it during the next few years. **Outside of M&A** Yet not all of the strong gainers are tied to deals. As the market rallied in September, investors moved out on the risk curve and bought stocks in more speculative and risky industries. For example, **Nanosphere Inc. (Nasdaq: NSPH)** has risen more than +50% since I profiled the nanotechnology group in mid-September. [Read: [This Once-Hot Sector Could Heat up Again](http://www.streetauthority.com/a/once-hot-sector-could-heat-again-456537) ]Yet it's important to remember that speculative stocks generally only do well when markets are rising. So it's not clear that September's gains can be extended unless the company delivers any promising news for its technology under development.Shares of **Virnet Holdings (NYSE :VHC)** continue their remarkable ascent. The stock had risen more than +200% this year before we profiled it in mid-August. [ [3 Stocks that Could See a Windfall of Cash from Patents](http://www.streetauthority.com/news/3-stocks-could-see-windfall-cash-patents-456460) ] Since then, it's tacked on another +130% as the company moves onto more investors' radars. Further gains from here will solely be a function of new licensing agreements with major tech firms. As I noted in that column, "VirNextX is gearing up to secure other licensing agreements for its technology. (In August), the company filed fresh lawsuits against **Apple (Nasdaq: AAPL)** , **Cisco Systems (Nasdaq: CSCO** ), Japan's NEC, and others." Who knows how that will play out, but it looks as if this stock has even more room to run. **Motricity (Nasdaq: MOTR)** is a clear example of why it pays to watch recently-issued IPOs. Sometimes they can drift lower as they fail to gain traction among money managers. As I noted back in August, "At first glance, this should have been a hot [IPO](http://investinganswers.com/term/initial-public-offering-ipo-1076) . Motricity was an early pioneer in the field of mobile phone data services." [Read: [7 Beaten-Down IPOs that Could Stage a Comeback](http://www.streetauthority.com/a/7-beaten-down-ipos-could-stage-comeback-456454) ] That's because the company was stuck in a temporary revenue slowdown. But at a recent industry conference, the company laid out its slate of upcoming technologies for mobile phone developers and was a clear hit.Since that conference on September 21st, shares surged from $9 to $13 in just a few trading sessions. When I see moves like that, I wait for a pullback, because some of the recent buyers really don't know the story here and simply chase a stock's momentum. When they exit, you can usually get the stock at a cheaper price.Lastly, shares of rare-earth mineral play **Molycorp ([MCP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MCP&selected=MCP)) )** rose a solid +60% in September, thanks to a dispute that took place halfway round the world. China now controls output for almost all rare earth metals that have a range of industrial applications. The Chinese government is increasingly showing a willingness to block exports of rare earth minerals from any trading partner that annoys it. Japan is the latest victim.This has led Molycorp to sharply expand output at a rare earth mine in Southern California. The company is sitting on more than two billion pounds of raw ore, which likely translates into around 200 million pounds of rare earth minerals. This makes the mine potentially the largest rare earth play outside of China. But this is surely a speculative stock -- sales are still minimal and investors are betting that the company's mining output will rise sharply and the market price for rare earth minerals will continue to rise. It's unclear how to determine an appropriate price for the stock at this time. Momentum investors are calling the shots right now, and you may be better off waiting for a pullback. **Action to Take -->** It's hard to spot further upside in any in these names in the near-term. It pays to monitor these stocks and wait for a pullback, as they might be quite vulnerable to profit-taking if the market slumps anew (except for the companies that are set to be acquired).[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: 6.46175
Stock Price 2 days before: 6.54422
Stock Price 1 day before: 6.73988
Stock Price at release: 6.74413
Risk-Free Rate at release: 0.0015
| 6.94986 |
Symbol: HAIN
Security: The Hain Celestial Group, Inc.
Related Stocks/Topics: ODP|Markets|CAG
Title: These Insiders are Making Seven-Figure Bets -- Should You Tag Along?
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-01 11:06:00
Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photoIt's important to keep track of the moves by insiders, as they can point you in the direction of undervalued (or overvalued) stocks. I like to scan the recent buying and selling lists from insiders either daily or weekly, but a monthly look is also helpful, as it lets you see a steady accumulation of shares over a period of time. As the end of September has come and October begins, I decided to take a look at the most significant purchases. I focused on the 26 companies that saw at least $1 million in insider buying this past month. Looking at the list, no real theme emerged as these companies tend to operate in a wide range of industries. Let's take a closer look at a few of the names.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) -- David Sterman** Hain Celestial (Nasdaq: HAIN)**As we've seen before with the case of **Motorola ([MOT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MOT&selected=MOT)) )** , [hedge](http://investinganswers.com/term/hedge-345) fund investor Carl Icahn never makes a small bet. [ [Carl Icahn's Favorite Stock](http://www.streetauthority.com/a/carl-icahns-favorite-stock-456527) ]I noted that Motorola was Carl Icahn's favorite stock, but Hain Celestial may be a close second. Icahn has been steadily buying shares of this health food and tea maker on the open market, and just bought another $30 million worth in September. Curiously, he's been buying shares even as they have been steadily rising. (Insider buying is more often associated with beaten-down stocks).This is an unusual growth story. The company has a long history of acquisition, helping to boost sales +10% to +20% most years. But in the absence of acquisitions, organic growth has been very small. And investors tend to avoid growth-though acquisition strategies because they don't always boost the [bottom line](http://investinganswers.com/term/bottom-line-789) . Indeed, Hain Celestial's [EPS](http://investinganswers.com/term/earnings-share-eps-1003) has hovered between $0.50 and $1 for most of the last eight years. Recent trends have become a bit more favorable. Per share profits are likely to rise more than +25% to around $1.30 this year, but in the absence of more deals , profit growth is expected to slink back to single-digits next year.From Mr. Icahn's perspective, near-term profits may not be the litmus test. Instead, he likely sees an asset that is being built that would ultimately make a nice fit for a larger food maker such as **Kraft ([KFT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KFT&selected=KFT)) )** , Nestle or **Conagra ([CAG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CAG&selected=CAG)) )** . But that's a risky strategy. Who knows if such a deal will materialize? Hain Celestial looks only modestly undervalued by traditional investment metrics, so anyone looking to ride along with Mr. Icahn may be counting on him to do some cage-rattling to unlock shareholder value, as he has done with Motorola. **Exar (Nasdaq: EXAR)**In a similar vein, legendary investor George Soros is placing a rising pile of bets on chip maker Exar. He bought another $10 million in stock in September, pushing his total holdings above $25 million, or roughly one-tenth of the entire company. Unlike Carl Icahn, George Soros doesn't apply pressure to the companies in which he invests, and instead typically takes a passive role.Exar, which makes a range of chips used in telecom, data storage and power management environments, has been a decent growth story in recent years. Sales for fiscal (March) 2011 are on track to rise at a double-digit pace for the fourth straight year.Yet even as sales have been rising, bottom line results have not followed suit. Exar has not been profitable since fiscal 2007. Shares had rebounded in the last year on hopes that the company would finally generate high enough gross margins to push profits to the bottom line. Recent weak quarterly results dashed those hopes, pushing shares down from $7.50 to under $6 in the past six months. They're not likely to fall too much further than that -- Exar has almost $5 in cash, and shares trade slightly below [book value](http://investinganswers.com/term/book-value-1080) of $6 per share. Those kind of metrics enable Mr. Soros to keep from worrying about the position, even as the company is not expected to finally move back into profitability until the [fiscal year](http://investinganswers.com/term/fiscal-year-1316) that beings next April. Jonathan Moreland, who runs insiderinsights.com thinks investors won't need too much patience: "Management's cost-cutting moves should help Exar to start posting even more quarters in the black in the coming year."This looks like a safe value play with moderate upside, unless Mr. Soros suspects that Exar might find a home at a larger tech firm and be bought out at a nice premium. **Medivation (Nasdaq: MDVN)**Investment firm QVT Associates is backing this former highflying biotech. Medivation was a rising star in 2009 on the heels of a promising drug that appeared to effectively treat prostate cancer. Shares soared last fall as investors anticipated and then received word of a lucrative marketing deal that pushed shares to nearly $40.But in early March, the company released Phase III clinical data that proved disappointing, sending shares down -70% in just one day.At this point, analysts are divided as to where the stock goes from here. Medivation has a few more clinical trials underway that are still showing promise in the treatment of Huntington's disease and Alzheimer's disease. But analysts at Brean Murray predict that Medivation will stumble in these trials as well and shares will eventually fall to $6. Analysts at Global Hunter think the pipeline still holds a great deal of promise, and that shares are worth $16. Clearly the recent heavy insider buying from QVT, which owns more than 10% of the company, implies that upside could be far higher. **Office Depot ([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) )**This stock caught my eye, even as it sat at the bottom of this list, as a cluster of insiders stepped up to the plate. I profiled this office supply chain a few weeks ago and even though shares are up more than +10% since then, they still look to have some pretty significant upside. Please re-visit that column for a fuller look at why I'm a [bull](http://investinganswers.com/term/bull-1772) on Office Depot. [Read: " [Insiders are Scooping Up These 3 Retails Stocks](http://www.streetauthority.com/news/insiders-are-scooping-these-3-retail-stocks-456549) "]**Action to Take -->** Following stocks with heavy insider buying takes a good bit of follow-up work. The motivations behind those purchases aren't always clear, so it pays to listen to recent conference calls to glean hints of positive developments that most investors may be missing. Of these stocks profiled here, I remain an especially strong fan of Office Depot as it is quite cheap and highly-leveraged to an eventual increase in employment. Medivation remains a stock to heavily research before making any commitments and is only suitable for risk-tolerant investors, while Exar looks to have the best combination of value and upside.[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 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: 24.2586
Stock Price 2 days before: 24.2603
Stock Price 1 day before: 23.8005
Stock Price at release: 23.8377
Risk-Free Rate at release: 0.0015
| 24.7424 |
Symbol: ODP
Security: The ODP Corporation
Related Stocks/Topics: Markets|HAIN|CAG
Title: These Insiders are Making Seven-Figure Bets -- Should You Tag Along?
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-01 11:06:00
Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photoIt's important to keep track of the moves by insiders, as they can point you in the direction of undervalued (or overvalued) stocks. I like to scan the recent buying and selling lists from insiders either daily or weekly, but a monthly look is also helpful, as it lets you see a steady accumulation of shares over a period of time. As the end of September has come and October begins, I decided to take a look at the most significant purchases. I focused on the 26 companies that saw at least $1 million in insider buying this past month. Looking at the list, no real theme emerged as these companies tend to operate in a wide range of industries. Let's take a closer look at a few of the names.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) -- David Sterman** Hain Celestial (Nasdaq: HAIN)**As we've seen before with the case of **Motorola ([MOT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MOT&selected=MOT)) )** , [hedge](http://investinganswers.com/term/hedge-345) fund investor Carl Icahn never makes a small bet. [ [Carl Icahn's Favorite Stock](http://www.streetauthority.com/a/carl-icahns-favorite-stock-456527) ]I noted that Motorola was Carl Icahn's favorite stock, but Hain Celestial may be a close second. Icahn has been steadily buying shares of this health food and tea maker on the open market, and just bought another $30 million worth in September. Curiously, he's been buying shares even as they have been steadily rising. (Insider buying is more often associated with beaten-down stocks).This is an unusual growth story. The company has a long history of acquisition, helping to boost sales +10% to +20% most years. But in the absence of acquisitions, organic growth has been very small. And investors tend to avoid growth-though acquisition strategies because they don't always boost the [bottom line](http://investinganswers.com/term/bottom-line-789) . Indeed, Hain Celestial's [EPS](http://investinganswers.com/term/earnings-share-eps-1003) has hovered between $0.50 and $1 for most of the last eight years. Recent trends have become a bit more favorable. Per share profits are likely to rise more than +25% to around $1.30 this year, but in the absence of more deals , profit growth is expected to slink back to single-digits next year.From Mr. Icahn's perspective, near-term profits may not be the litmus test. Instead, he likely sees an asset that is being built that would ultimately make a nice fit for a larger food maker such as **Kraft ([KFT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KFT&selected=KFT)) )** , Nestle or **Conagra ([CAG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CAG&selected=CAG)) )** . But that's a risky strategy. Who knows if such a deal will materialize? Hain Celestial looks only modestly undervalued by traditional investment metrics, so anyone looking to ride along with Mr. Icahn may be counting on him to do some cage-rattling to unlock shareholder value, as he has done with Motorola. **Exar (Nasdaq: EXAR)**In a similar vein, legendary investor George Soros is placing a rising pile of bets on chip maker Exar. He bought another $10 million in stock in September, pushing his total holdings above $25 million, or roughly one-tenth of the entire company. Unlike Carl Icahn, George Soros doesn't apply pressure to the companies in which he invests, and instead typically takes a passive role.Exar, which makes a range of chips used in telecom, data storage and power management environments, has been a decent growth story in recent years. Sales for fiscal (March) 2011 are on track to rise at a double-digit pace for the fourth straight year.Yet even as sales have been rising, bottom line results have not followed suit. Exar has not been profitable since fiscal 2007. Shares had rebounded in the last year on hopes that the company would finally generate high enough gross margins to push profits to the bottom line. Recent weak quarterly results dashed those hopes, pushing shares down from $7.50 to under $6 in the past six months. They're not likely to fall too much further than that -- Exar has almost $5 in cash, and shares trade slightly below [book value](http://investinganswers.com/term/book-value-1080) of $6 per share. Those kind of metrics enable Mr. Soros to keep from worrying about the position, even as the company is not expected to finally move back into profitability until the [fiscal year](http://investinganswers.com/term/fiscal-year-1316) that beings next April. Jonathan Moreland, who runs insiderinsights.com thinks investors won't need too much patience: "Management's cost-cutting moves should help Exar to start posting even more quarters in the black in the coming year."This looks like a safe value play with moderate upside, unless Mr. Soros suspects that Exar might find a home at a larger tech firm and be bought out at a nice premium. **Medivation (Nasdaq: MDVN)**Investment firm QVT Associates is backing this former highflying biotech. Medivation was a rising star in 2009 on the heels of a promising drug that appeared to effectively treat prostate cancer. Shares soared last fall as investors anticipated and then received word of a lucrative marketing deal that pushed shares to nearly $40.But in early March, the company released Phase III clinical data that proved disappointing, sending shares down -70% in just one day.At this point, analysts are divided as to where the stock goes from here. Medivation has a few more clinical trials underway that are still showing promise in the treatment of Huntington's disease and Alzheimer's disease. But analysts at Brean Murray predict that Medivation will stumble in these trials as well and shares will eventually fall to $6. Analysts at Global Hunter think the pipeline still holds a great deal of promise, and that shares are worth $16. Clearly the recent heavy insider buying from QVT, which owns more than 10% of the company, implies that upside could be far higher. **Office Depot ([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) )**This stock caught my eye, even as it sat at the bottom of this list, as a cluster of insiders stepped up to the plate. I profiled this office supply chain a few weeks ago and even though shares are up more than +10% since then, they still look to have some pretty significant upside. Please re-visit that column for a fuller look at why I'm a [bull](http://investinganswers.com/term/bull-1772) on Office Depot. [Read: " [Insiders are Scooping Up These 3 Retails Stocks](http://www.streetauthority.com/news/insiders-are-scooping-these-3-retail-stocks-456549) "]**Action to Take -->** Following stocks with heavy insider buying takes a good bit of follow-up work. The motivations behind those purchases aren't always clear, so it pays to listen to recent conference calls to glean hints of positive developments that most investors may be missing. Of these stocks profiled here, I remain an especially strong fan of Office Depot as it is quite cheap and highly-leveraged to an eventual increase in employment. Medivation remains a stock to heavily research before making any commitments and is only suitable for risk-tolerant investors, while Exar looks to have the best combination of value and upside.[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 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: 4.60426
Stock Price 2 days before: 4.68951
Stock Price 1 day before: 4.57
Stock Price at release: 4.57
Risk-Free Rate at release: 0.0015
| 4.5524 |
Symbol: NRP
Security: Natural Resource Partners L.P.
Related Stocks/Topics: Markets|ARLP
Title: Rhino Resource Partners IPO Structure Looks Favorable for Unit-Holders
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-10-03 04:10:00
Article: [Bill Simpson](http://www.tradingipos.com/subscribe.php) This analysis of Rhino Resource Partners ([RNO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RNO&selected=RNO)) ) was provided to [TradingIPOs subscribers](http://www.tradingipos.com/subscribe.php) in advance of its Wednesday, Sept. 29, IPO.The company sold 3.24 million shares for $20.50 each, raising about $66.5 million, in its IPO.____________Rhino Resource Partners plans on offering 3.7 million units (assuming over-allotments) at a range of $19-$21. Raymond James, RBC and Stifel are leading the deal. Post-IPO RNO will have 25 million total units outstanding for a market cap of $500 million on a pricing of $20. Bulk of IPO proceeds will be used to repay debt. Wexford Capital will own 85% of RNO including the general partnership. RNO is a collection of coal assets that have been acquired beginning in 2003. This is the second attempt Wexford has made bringing Rhino public. The first was ill-timed in August/September 2008. That deal looked okay, albeit with an aggressive valuation in range. It was not structured as a Partnership, however. This second attempt appears structured far better and offers value/yield to the holder.Yield - RNO plans on distributing $0.445 quarterly to unit holders. On an annualized $1.78, RNO would yield a strong 8.9% annually.From the [prospectus](http://www.sec.gov/Archives/edgar/data/1490630/000104746910008371/0001047469-10-008371-index.htm) :The company sells steam coal for electric utilities and metallurgical coal to steel and coke producers.Coal reserves located in Central Appalachia, Northern Appalachia, the Illinois Basin and the Western Bituminous region. As of 3/31/10, RNO controlled 273 million tons of steam coal and 12.5 million tons of metallurgical coal with an additional 122 million tons of non-reserve coal deposits. The company operates 11 mines, 6 underground and 5 surface. Mines are located in Kentucky, Ohio, Colorado and West Virginia. Production is at 4.7 million tons of coal annually with another 2 million tons purchased for reselling.One major issue when structuring E&P operations as a partnership: It can be quite difficult to pay a sufficient yield and also cover capital expenditures needed to replace reserves that have been turned into production. We've seen this in the recent similar IPOOxford Resource Partners ([OXF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OXF&selected=OXF)) ). OXF simply will not have sufficient cash flows to cover both the distribution and reserve replacement capex. The result is OXF will be loading up the balance sheet with debt going forward to distribute cash to holders. ***RNO is forecasting sufficient cash flows to cover all distributions as well as all capital expenditures. This is a very good sign.RNO plugs in the current selling prices for coal when making their cash flow projections for the first 12 months as a public company. While they've locked in commitments on volume/price for 60% of production, a steep drop in coal prices would negatively affect cash flows. Should prices drop appreciably, RNO would need to borrow to cover both distributions and capex. Note that RNO has already committed and locked in prices on 60% of their expected coal sales the first 12 months public. **Financials**$40 million in debt. These debt levels will not impact operations or cash flows severely. Forecast for first 12 months public (ending 9/30/11):$348 million in revenues (equating to 5.1 million tons of coal sales) with net earnings of $2.32 per share.Distribution coverage from cash flows projected at 107%.There are currently four publicly traded coal partnerships- OXF,Penn Virginia Resource Partners ([PVR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PVR&selected=PVR)) ),Natural Resource Partners ([NRP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NRP&selected=NRP)) ) andAlliance Resource Partners ([ARLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ARLP&selected=ARLP)) ). A quick comparison:**RNO** - Would yield 8.9% annually at $20. They are forecasting cash flows sufficient to cover entire distribution as well as all capital expenditures the first 12 months public. Very nice balance sheet with just $41 million of debt. **OXF** - Yields 9.1%. $91 million in debt. OXF is forecasting cash flows to cover only 61% of distributions/capex first 12 months public. OXF will need to borrow to both pay distributions and spend on replacement capital expenditures. That 9.1% yield carries far more risk than RNO's 8.9% yield. **PVR** - 7.8% yield, $650 million in debt. PVR is a classic case of continued borrowing to fund yield/capex as their debt increases annually. Note that PVR has also moved into the natural gas pipeline business. **NRP** - 8% yield, $640 million in debt. **ARLP** - 5.4% yield, $450 million in debt.When including distributions, PVR/NRP and ARLP are all up quite strongly over the past 12 months. **Conclusion** - Good looking coal partnership. Structure is favorable to unitholders and should allow for sufficient reserve replacement while also paying a strong yield. These sort of deals often do not do much for a while and following OXF's lackluster debut, I would not expect much in the short run. However, this is a superior deal to recent comparable OXF and mid-term should provide appreciation through distributions and price. Recommend.See also [Crop Progress: Healthy Crops and Healthy Prices](http://seekingalpha.com/article/229843-crop-progress-healthy-crops-and-healthy-prices?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 26.3014
Stock Price 2 days before: 27.0722
Stock Price 1 day before: 26.7991
Stock Price at release: 26.8059
Risk-Free Rate at release: 0.0015
| 29.1 |
Symbol: GRC
Security: The Gorman-Rupp Company
Related Stocks/Topics: Markets|CHK|AU|XOM
Title: Oil Falls on Profit-Taking Ahead of U.S. Factories Data; Gold Inches Up
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-10-04 07:58:00
Article: Oil is on the decline in early morning trade as profit-taking kicked in, coupled with a rise in the dollar's value against the euro. Market players will be looking to the release of the latest U.S. factories data for further clues on energy demand.Gold, meanwhile, is up slightly, but many analysts expect the yellow metal to face selling pressure moving forward, given that it has continued to reach record highs in recent days. At 0750 ET, Brent crude is down 0.1% at $83.72 a barrel, while light sweet crude is down 0.4% at $81.42 a barrel, and natural gas is down 0.9% at $3.76 a million British thermal units.Gold is up 0.1% at $1,318.50 an ounce, while silver is up 0.1% at $22.09 an ounce, and copper is down 0.2% at $3.68 a pound.Chesapeake Energy Corp ([CHK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CHK&selected=CHK)) ) sold future production from its Barnet Shale field in North Texas for $1.15 billion to a unit of Barclays plc (BARC). The volumetric production payment is a five-year agreement.Exxon Mobil Corp ([XOM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=XOM&selected=XOM)) ) said it may sell part of a Japanese unit's gasoline retail operations. Tonengeneral Sekiyu KK (5012) fell to its lowest level in over seven years on the Tokyo Stock Exchange as a result of Exxon Mobil's announcement that it could sell some of its retailing operations in Kyushu, southern Japan.Britain's EnCore Oil plc (EO) found more oil at the Cladhan field in the North Sea. The sidetrack well is seen to have the potential of being commercially viable. Petroliam Nasional Bhd, Malaysia's state oil company better known as Petronas, reported first quarter profit surging 60% from a year ago as crude and natural gas prices increased.In the mining sector, Pan African Resources plc (PAN) sold an 85.1% stake in its Akrokerii gold project in Ghana to GoldStone Resources Inc ([GRC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GRC&selected=GRC)) ). The field is near AngloGold Ashanti Ltd ([AU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AU&selected=AU)) )'s 50 million ounce Obuasi gold mine. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
Stock Price 4 days before: 27.936
Stock Price 2 days before: 27.8233
Stock Price 1 day before: 27.8951
Stock Price at release: 27.8956
Risk-Free Rate at release: 0.0015
| 30.3404 |
Symbol: CGC
Security: Canopy Growth Corporation
Related Stocks/Topics: Markets
Title: Responses to "Are You Rich?"
Type: News
Publication: Wyatt Investment Research
Publication Author: Unknown
Date: 2010-10-04 11:41:00
Article: Thanks to everyone who wrote in with a response to Friday's issue, [Oh Man - Are You Rich?](http://www.smallcapinvestor.com/article/oh-man-are-you-rich/22532) Let's get started with the short and sweet answers...Deborah and Rich exclaim succinctly:"No"Muriel added a bit more color by including a suggestion on how the U.S. could save cash: "Of course I am not rich: I have written constantly that we should tax INDIVIDUALS making 1 mil a year or more. That $250,000 is too low - and that we should get out of the middle east immediately and save 10 billion a month. Where are my supporters? It's a no brainer."Richard employs a bit of leverage to keep ahead of the game:"No, I'm not rich. Social security and whatever return I generate on investments.I have little cash or bank accounts because they are certain losers to dollar devaluation. So I have a big mortgage and use margin. In one way it seems risky, but from another it is conservative because I borrow at a lower interest rate than the devaluation rate so I gain purchasing power from the debt.Stocks seem pricey historically, but with the hurdle rate (i.e. short term interest rate) close to zero those p/e's don't seem so ridiculous." Doris doesn't consider herself financially rich, but in other ways..."Well as to quality of life - absolutely!As to relationships- ditto that!As to security - yes I am feeling comfortable.As to income? We have two small pensions and two social security checks and we run our lives on less than 45000 annually. Of course, we are digging into the pot we put away during our working years - but hey! That's why we put it away - right? So: Rich - financially - NO"Itzhak answers the tax question without pause:"You are definitely rich if you earn 250000 and you should pay your part of the tax"Bill puts today's tax rate in a little historical perspective:"If I was making $200,000 a year, yes--I'd consider myself wealthy. As an investor, you must be aware that people in the upper tax brackets make a lot of income from capital gains from investments which is only 15%. Furthermore, the tax rate under Reagan for the majority of his eight years was 50% and while he lowered them toward the end of his second term, he raised payroll taxes - an increase on the middle class. You're also aware that Eisenhower raised the marginal tax rate to 91% which helped an economy still trying to make a wartime recovery. Even Kennedy reducing taxes still put them in the mid-70% bracket.So if we are asking the upper 2.5% of taxpayers to pay barely 4% more, I think they can handle it."Rick is an apparent proponent of the flat tax rate, which I think makes a ton of sense: "My wife and I work very hard to provide for us and our kids. We are very frugal and we save for the future. Since President Obama was elected we have tightened our belts, we rarely eat out either for lunch or dinner. We do not buy frivolous items that are not needed. We are preparing for the inevitable destruction of our currency and way of life. So why should we be working hard, saving our money and trying to get ahead? Who does he (Obama) think he is, to tell us, to give him the fruits of our labor? I call that slavery. All individuals should be taxed a one rate - period. Why punish the prudent and successful unless you want to destroy the American dream!**Do I feel rich - no!**"Josh is pushing the income envelop, but doesn't feel 'rich' by a standard definition. He also has a few choice words for our President:"I am the sole provider for my family, and I work for a small company. So I might make over $250,000 per year, but I pay out a lot for medical insurance and my company doesn't have a retirement plan. So a large portion of my income goes into IRAs and college funds.I have plenty of friends that make the same or even more, and none of us think we are "rich".I feel Obama is the worst president in the history of the US. He hasn't made the right decision yet and obviously never will. Regan's wife did a better job"." Likewise, David is above the threshold but doesn't consider himself wealthy - and points out that earnings is a reflection of risk, what one does, and how effectively one does it:"I don't consider myself wealthy. I work hard (70 hrs a week and haven't taken a vacation in 25 years), I saved my money and I made smart purchases with my future in mind.I have 5 properties and collect rent on 3 of them. 2 are commercial and one is a duplex rental. I receive a little over $100,000 per year in rent. I started and still own several companies.I have never earned more than $400,000.00 in a year. What I do earn I usually loan back to my companies. My 401K took a big hit just like everyone else's. I also pay my fair share of taxes. Local taxes, State taxes, Federal taxes, Sales tax, Gas tax, Utility taxes and a bunch of other taxes and a host of Fee's (hidden taxes). I donate to 6 local charities (2 hospital, 3 children's and the local food pantry). I have some fun money that I use to invest into the stock market and since February 2009 I am up about 50%.I am the ANT in the "Ant and Grasshopper story" and I resent being told that I am wealthy and that I achieved my wealth from the sweat of others. I earned every penny I have and I should be able to keep some of it. Note: I borrowed $3,000.00 in 1974 and bought my first duplex I was 21." Paul thinks wealth is all relative, a good perspective that is hard to argue with:"In my experience only a very few think that they are rich because there is always someone else who has even more money. Therefore, someone can be considered rich if they make twice as much or more than you do. Then again, rich could be considered as assets, not income."Vin wonders why two income families get slammed by the higher tax:"After reading your article I was wondering - why don't they change the benchmark ($200k single, $250k joint) and raise it to what should be considered "wealthy" to individuals that earns say $500k and above. Raising the tax bracket for $500k + would be the best thing and path of least resistance....Taxing families that pull $250k per annum at the higher bracket is unfair we are still the "MIDDLE CLASS." 3 kids high property taxes, gas, commodities, etc.... Do it for the $500+ families - make sense? Perhaps too much sense? Perhaps that is precisely why it won't work... Perhaps we'reF$$$$d?"Similarly Cornell points out the marriage penalty, and poses a great question to end today's reader feedback on:"One of the problems with this question - and indeed our federal tax laws - is that it does not take into account where one lives. $200,000 for an individual and $250,000 for a married couple (by the way, this is a marriage penalty) may be rich in Ohio but doesn't cut it in New Jersey. A senior school teacher and a sergeant on any city police force make $250,000 here.I find it amazing that the top 20% of income earners pay 86% of all federal income taxes (the top 1% pay 39%) and 47% of all households in this nation pay no federal income taxes at all. Our legislators (starting with Obama) already know that our national debt is so massive that the only way we can dig out of this whole is to start taxing those whose earnings are not in the top 20%.In addition, we are watching a very dangerous cat and mouse game here by not explicitly providing the American populous with direction as to income, capital gains and estate taxes going forward. November elections notwithstanding, this is criminal and so are they. How do you think the market prices this uncertainty in? By the way, did anyone actually see George Steinbrenner's body or did he out fox us again?"I have dozens more responses to the "Are You Rich?" question, including discussions on tax rates, stories of uncomfortable high school shoes, and many more.Look toward Wednesday's issue of Small Cap Investor Daily for more responses. And by the way, I just recommended Small Cap Investor Pro readers sell their position in **Capital Gold Corporation ([CGC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CGC&selected=CGC)) )** . We made 35 percent on the investment in ten months - not enough to truly get rich off, but a nice capital gain to put into our next investment! You can learn more [here.](http://pro.smallcapinvestor.com/)
Stock Price 4 days before: 4.73
Stock Price 2 days before: 4.81356
Stock Price 1 day before: 4.64183
Stock Price at release: 4.62997
Risk-Free Rate at release: 0.0015
| 4.33684 |
Symbol: AROW
Security: Arrow Financial Corporation
Related Stocks/Topics: Markets
Title: Small Ball
Type: News
Publication: Investing Daily
Publication Author: Unknown
Date: 2010-10-04 12:04:00
Article: A lackluster US economic recovery doesn't bode well for smaller companies, many of which lack the financial strength and global reach of large-cap fare. Meanwhile, the financial crisis and market implosion of 2008 prompted many investors to exit mutual funds that use quantitative strategies. But don't write off this underdog just because it uses statistical models to pick ultra-small caps.It's human nature to side with the underdog, but sentimentality is best left out of the investment process. John Montgomery, founder of quantitative investment firm Bridgeway Capital Management, often cites the dispassionate nature of statistical modeling as a distinct advantage. While there's a kernel of truth to this philosophy--especially in an age of media sensationalism and a 24-hour news cycle--the painful losses many investors suffered in 2008 and early 2009 led many to pull their money from quantitative funds. These days, mutual fund investors want to know more about how their money is being put to work--at least for the time being.But investors should get the facts before they dismiss **Bridgeway Ultra-Small Company Market** (BRSIX) out of turn. This is one underdog with a solid pedigree.As with all of Bridgeway's offerings, Ultra-Small Company market relies on a mix of proprietary models that identify which stocks to buy, hold and sell based on company-level data from a variety of sources. These models are internally developed and recalibrated over time to evaluate risk and potential upside.This unique fund seeks to approximate the sector and industry makeup of the CRSP Cap-Based Portfolio 10 Index, a benchmark of the smallest 10 percent of stocks that trade on US exchanges. In fact, the average market capitalization of its portfolio holdings is lower than 99 percent of all small-cap funds.Besides its focus on tiny companies, the fund also features an undersized expense ratio of just 0.75 percent. Montgomery also makes a concentrated effort to limit trading costs and rebalances the portfolio less often than managers of other passive funds. This has kept the annual turnover rate to an impressive 43 percent, though this approach produces some tracking error. A focus on quality traditionally has set the fund apart from the competition. Montgomery and his team have devised a "sidestepping model" that limits exposure to names that are at risk of bankruptcy or a precipitous decline in share price.Although this focus on company-specific data doesn't protect against shifts in sentiment or broader, event-driven market moves, avoiding riskier names limited the fund's losses in 2008, a time when highly leveraged small caps bit the dust. A diverse portfolio that includes over 600 names likewise blunts the impact of any implosions.A quick glance at the portfolio's top performers and losers in the second quarter underscores the advantages of having such a large portfolio. Whereas the fund's 10 biggest stragglers posted an average loss of 81.1 percent, its top gainers were up an average of 72.8 percent. And over the course of the fiscal year the top 10 winners were up an average of 307.8 percent.The health care sector, which accounts for 17.2 percent of the fund's investable assets, produced six of its best performers and four of its biggest losers.Financials, the fund's other overweight sector, included losers such as the failed Columbia Bankshares and Hampton Roads Bankshares ([HMPR](https://www.nasdaq.com/symbol/hmpr)) ), a struggling community bank that required significant capital infusions from the federal government via the Troubled Asset Relief Program (TARP) and two private-equity firms. But these riskier names are balanced by larger positions in Arrow Financial Corp ([AROW](https://www.nasdaq.com/symbol/arow)) ) and Bancorp Rhode Island ([BARI](https://www.nasdaq.com/symbol/bari)) ), two of the strongest banks in the Northeast.This variation is a testament to the potential risks and rewards associated with micro-cap stocks.The portfolio tends to lag when more speculative fare is in vogue. Although the fund returned 25.9 percent in 2009, it struggled to keep pace with aggressive peers that loaded up on penny stocks and highly leveraged names.That being said, management has no plans to change its model to take on additional risk. Over the past 10 years, the fund's performance ranks it in the top 18 percent of Morningstar's Small Blend category.This bodes well for prospective investors seeking to add micro-cap exposure to an already diversified portfolio, though we would caution against allocating too much money to the fund because of its volatility. With a low expense ratio and a well-diversified portfolio, Bridgeway Ultra-Small Company Market should continue to generate solid returns over the long haul. Article Republished with permission from [www.KCIinvesting.com](http://www.kciinvesting.com/) and [www.rukeyser.com](http://www.rukeyser.com/)
Stock Price 4 days before: 24.8645
Stock Price 2 days before: 25.2228
Stock Price 1 day before: 25.0312
Stock Price at release: 24.9105
Risk-Free Rate at release: 0.0015
| 25.9236 |
Symbol: ODP
Security: The ODP Corporation
Related Stocks/Topics: Markets|SDS|WMT|XOM
Title: Can September's Rally Continue? How Investors Should Plan for the Months Ahead
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-05 05:00:00
Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photoI have been chewing over our trading expert Mike Turner's article this week, trying to get a handle on where the stock market can go from here. [ [Read Mike's article here](http://www.streetauthority.com/a/after-markets-biggest-september-70-years-time-prepare-pullback-456619) ] Mike points out that September's rally seemingly ignores the daunting economic hurdles we face. And his [technical analysis](http://investinganswers.com/term/technical-analysis-1108) tells us that we may see all of September's gains erased, returning the major indices to pre-Labor Day doldrums. I'm inclined to agree. Not only because we haven't seen any really positive economic news to undergird a rally, but also because investors have been conditioned to sell into rallies and buy into pullbacks. That's been a profitable move. If you were a buy-and-hold investor, you'd likely be seeing only flat returns since the start of the year.Even the [index fund](http://investinganswers.com/term/index-fund-972) players are steering clear of buy-and-hold, rotating into different sectors from month to month. Investors rushed into retail stocks in February, pushing the sector up by +25% until late April before fleeing the sector en masse. Airline stocks have been in favor recently, but who knows how long that will last?Where we go from here is really a function of whether we view the current environment as half-empty of half-full. On the one hand, there is little economic news to cheer and give reason to expect a more robust outlook in 2011. On the other hand, many stocks are quite inexpensive -- especially on an [enterprise value](http://investinganswers.com/term/enterprise-value-806) basis -- and corporate profit margins remain strong, which is a necessary precursor to an [uptick](http://investinganswers.com/term/uptick-781) in hiring and capital spending.Let's take a closer look at where we stand relative to historical norms. **Everything is relative** Depending on who you ask, the stock market's price-to-earnings (P/E) ratio is either in line or slightly below the historical average. The S&P 500 stands near 1150, which equals about 16 times projected 2010 profits and about 13.5 times next year's profits. During the past 75 years, the market's [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) ratio for current year [earnings](http://investinganswers.com/term/earnings-1514) has been about 17. But that number is also associated with interest rates that were well higher. Recall that in the 1970s, stocks got really, really cheap precisely because interest rates were so high. This time around, stocks and bonds are not reacting in tandem. But if you believe that [inflation](http://investinganswers.com/term/inflation-973) and interest rates will stay low for a while to come, then the risk-premium associated with stocks should be reduced, and a target P/E on the market would be closer to 20. But investors see low rates as a negative, not a positive. "Equities investors now look to rising interest rates as a sign of strength and falling rates as a sign of weakness," wrote Citigroup's Steven Wieting in a recent report.In that vein, a modest rise in interest rates may actually be a positive for the market. In fact, interest rates can rise 300-400 basis points from here and would still be at a level that is supportive of a rising stock market, historically speaking. The interest rate discussion is moot in the near-term, as rates are unlikely to start rising for at least another year. But when they do, it won't necessarily be a sell signal for the stock market.But investors aren't buying the stock market -- they are buying individual stocks and sectors. And in many cases, you'll find P/E ratios well below the market average, as [I noted recently](http://www.streetauthority.com/a/2-growth-stocks-low-growth-economy-456593) .Industries with very low P/E ratios include insurance, mortgages, airplane leasing, pawn shops, dry bulk shipping and companies operating in China.And you can find plenty of stocks with incredibly strong balance sheets. [ [Read more here](http://www.streetauthority.com/a/sectors-mountain-cash-could-soon-line-your-pocket-456571) ]. All that cash is likely my main reason for being a [bull](http://investinganswers.com/term/bull-1772) into the first half of 2011, despite the concerns I share with Mike Turner noted above. Cash fuels mergers, stock buybacks and dividends, all of which have been key themes any time in the market is in a mood to rally. Lastly, it's hard to overstate the relative attractiveness of many [free cash flow](http://investinganswers.com/term/free-cash-flow-1000) yields. As [I noted in this piece](http://www.streetauthority.com/a/act-now-walmarts-undervalued-shares-take-456398) using **Walmart ([WMT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WMT&selected=WMT)) )** as an example, the retail giant's free cash flow [yield](http://investinganswers.com/term/yield-1406) stands above 5%, nicely higher than equivalent [bond](http://investinganswers.com/term/bond-1287) yields. A wide range of companies such as **ExxonMobil ([XOM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=XOM&selected=XOM)) )** and **Office Depot ([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) )** have free cash flow yields above 10%. **When bad is good** As noted earlier, the economic picture is pretty dismal right now, which is likely to lead the Federal Reserve to take action to boost the [economy](http://investinganswers.com/term/economy-1517) . The market's recent rally has largely been the result of an expected round of bond buybacks, which is known as quantitative easing. As bond sellers like big banks and large enterprises cash in their holdings, they have more money to apply elsewhere in the economy.As Citigroup's Wieting recently noted, "vast increases in precautionary liquidity throughout the economy could also fuel a more vigorous expansion when 'animal spirits' return." More specifically, "larger corporate borrowers are likely to re-leverage, return capital and/or income to share holders and expand. The small business sector should gradually thaw". [the Fed](http://investinganswers.com/term/federal-reserve-bank-1789) is expected to act by early November. **Action to Take -->** I remain a longer-term bull. But after the September rally, near-term caution is certainly warranted. I like Mike's call on using the **ProShares Ultra Short S&P 500ETF ([SDS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SDS&selected=SDS)) )** , which moves at twice the rate in the opposite direction of the S&P 500. It's nice insurance on your portfolio, especially if you hold primarily long positions. [Get our trading experts' picks for [free each week by clicking here](http://web.streetauthority.com/subscribe-tow.asp) .]But if you want to stay fully-exposed to any further market upside, it makes increasing sense to pick relatively defensive longs. These are stocks that either have low valuations or can see business hold up even if the economy slumps further. Names that come to mind include Walmart, ExxonMobil, and the major drug stocks.[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: 4.63754
Stock Price 2 days before: 4.5248
Stock Price 1 day before: 4.52388
Stock Price at release: 4.55224
Risk-Free Rate at release: 0.0014
| 4.43448 |
Symbol: WWW
Security: Wolverine World Wide, Inc.
Related Stocks/Topics: Markets|MOS|YUM
Title: Opening View: DJIA Futures Rally on Bank of Japan Rate Cut
Type: News
Publication: Schaeffer
Publication Author: Unknown
Date: 2010-10-05 07:59:00
Article: Thanks to a late-session buying spree, the Dow Jones Industrial Average (DJIA) rebounded from a triple-digit loss to close down 78 points. The blue-chip barometer also maintained key support at the 10,750 level. Wall Street is looking brighter this morning, as traders digest the Bank of Japan's surprise interest rate cut and prepare for the Institute for Supply Management's ([ISM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ISM&selected=ISM)) ) services index. Futures on the DJIA and the S&P 500 Index (SPX) are trading roughly 33 points and 4.4 points above fair value, respectively. Look for the Dow to hold support at the 10,750 level, while resistance remains at 10,900. As for the SPX, the index should find a floor at 1,135, while 1,150 remains a potentially significant roadblock.In equity news, Wolverine World Wide Inc. ([WWW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WWW&selected=WWW)) ) reported that third-quarter net income rose 27% to $34.1 million, or 70 cents per share. Analysts were looking for earnings of 67 cents per share. For the year, WWW now expects to earn $2.04 to $2.08 per share, compared to Wall Street's expectations for a full-year profit of $2.07 per share. Elsewhere, The Mosaic Co. ([MOS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MOS&selected=MOS)) ) reported first-quarter net income of $297.7 million, or 67 cents per share. Revenue increased to $2.19 billion from $1.46 billion. Analysts had forecast earnings of 71 cents per share on revenue of $1.96 billion. **Earnings Preview** On the earnings front, Yum! Brands, Inc. ([YUM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=YUM&selected=YUM)) ) will release its quarterly earnings report today. Keep your browser at ** [SchaeffersResearch.com](http://www.schaeffersresearch.com/)** for more news as it breaks. **Economic Calendar** The Institue of Supply Management ([ISM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ISM&selected=ISM)) ) offers up its services index for September today. We'll get the usual weekly report on U.S. petroleum supplies on Wednesday, along with the ADP report on September private sector employment. On Thursday, the Labor Department will release the weekly new jobless claims figures, while the Federal Reserve will report on consumer credit use in August. Finally, September's nonfarm payrolls report and unemployment rate will arrive on Friday, as will the Commerce Department's report on August wholesale inventories. **Market Statistics** Equity option activity on the CBOE saw 979,163 call contracts traded on Monday, compared to 599,286 put contracts. The resultant single-session put/call ratio arrived at 0.61, while the 21-day moving average held at 0.59. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/101005ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/101005ov2.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/2010/101005ov3.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 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 0.33%. In Asia, regional markets were broadly higher after the Bank of Japan unexpectedly cut interest rates to near zero. China's markets remained closed for the National Day holiday, and will reopen on Friday, Oct. 8. In Europe, stocks are headed toward the end of a six-session losing streak, as the Japanese rate cut bolstered investor sentiment across the region. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/101005ov4.gif)**Currencies and Commodities** Gold is back in the headlines this morning, as the malleable metal tagged yet another record high after the Japanese rate cut. Gold for December delivery rose to an intraday high of $1,329.60 an ounce in London, but was last seen up $10 at $1,326.80 an ounce. Meanwhile, the U.S. Dollar Index is threatening to break below the 78 level for the first time since January. The greenback received a short-lived boost from the rate cut, but the dollar has refused to move far from its early morning lows. At last check, the index was off 0.48% at 78.07. Finally, crude futures are taking advantage of the weak dollar, rising 56 cents to $82.03 per barrel - just shy of their August peak. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/101005ov5.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/2010/101005ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/101005ov7.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: 29.3292
Stock Price 2 days before: 28.9769
Stock Price 1 day before: 28.97
Stock Price at release: 28.9
Risk-Free Rate at release: 0.0014
| 29.6241 |
Symbol: UIS
Security: Unisys Corporation
Related Stocks/Topics: DELL|Markets|HPQ
Title: What's behind Unisys call action
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-10-06 02:09:00
Article: Unisys is consolidating after a run to the upside, and one trader is positioning for more gains.optionMONSTER's Heat Seeker tracking system detected the purchase of 2,000 January 35 calls for $1 and the sale of an equal number of January 25 calls for $4.85. Volume was below open interest in the lower strikes, suggesting that a long position in the calls was rolled to the higher strike. [UIS](http://www.optionmonster.com/cms/commentary/images/uispre106.png) The move allowed the investor to recover $3.85 of principal while maintaining exposure to the IT service provider. It lost more than half its value between late April and early July.UIS then started fighting upward and gapped higher on July 27 after per-share profit was more than double analysts' forecasts. The stock climbed 3.12 percent to $28.46 yesterday, capping a 12 percent move in the last month. It's now pausing around the $28-$28.50 area that was support earlier in the year and has since provided resistance (orange line on chart).Value investors may consider the company attractive because it trades for about 4 times last year's earnings and has an enterprise value of less than 3 times EBITDA. In addition, short interest accounted for more than 9 percent of the float as of Sept. 15, which could potentially fuel the shares higher on any squeeze.UIS has additional been paying down debt and increasing its focus on data centers. That could merit further attention because it may let the company ride some of the positive sentiment that has been developing in the cloud-computing sector after the recent bidding war between Hewlett-Packard and Dell for 3Par.Overall option volume in the stock was 12 times greater than average yesterday, with calls outnumbering puts by more than 50 to 1. (Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 28.3299
Stock Price 2 days before: 28.2463
Stock Price 1 day before: 27.8693
Stock Price at release: 28.4087
Risk-Free Rate at release: 0.0014
| 23.7369 |
Symbol: MG
Security: Mistras Group, Inc.
Related Stocks/Topics: Markets|A|PM|EU|GOLD
Title: Greg McCoach: Preserving Your Precious Capital
Type: News
Publication: International Business Times
Publication Author: Unknown
Date: 2010-10-06 05:34:00
Article: **Greg McCoach: Preserving Your Precious Capital** Source: Brian Sylvester of The Gold Report 10/6/10[http://www.theaureport.com/pub/na/7559](http://www.ibtimes.com/) Mining Speculator Newsletter Writer Greg McCoach is nothing if not outspoken. "The U.S. government is now getting to the point that it can no longer pay the interest on its Treasury Bill debt through normal means. Once this leaks out, the Fed will start creating money on top of money. It will become a total Ponzi scheme," he says. But Greg believes that same fiscal foolishness is creating opportunities in precious metals. In this exclusive interview with The Gold Report , Greg coaches you on how to preserve your capital with some junior mining stocks. **The Gold Report:** Greg, in your bio, it says you're also a bullion dealer. Please tell our readers about that side of your life. **Greg McCoach:** I got into this business in 1998. I had owned a commercial print and mail facility that I sold to a bigger fish and was looking at what I wanted to do with the rest of my career, when I happened to read J. Paul Getty's autobiography about how he made his money. He suggested that to make truly big money you have to buy into things nobody else is interested in. In 1998, nobody was interested in precious metals (PMs); so I decided to jump in, and became a bullion dealer. A couple of years later, I became a newsletter writer for PM mining stocks.My bullion dealership, [AmeriGold](http://www.ibtimes.com/) , takes the time to educate first-time buyers on all the issues related to owning PMs, both buying and selling. We deal in modern coins and bars that investors covet. We refer to ourselves as a "safe and reliable place" to buy and sell precious metals. **TGR:** Do you hold them for investors, too?**GM:** No, we don't. We recommend investors take delivery of metal or store it in a private depository like Brinks, Inc. If your readers have any questions, they should call some of the people at AmeriGold who can answer their questions without any sales pressure (1-800-574-0047). **TGR:** You're on record as saying you hold physical precious metals. What's your percentage of PM holdings?**GM:** I believe in holding a nice chunk of my liquid net worth in physical PMs. The ratio within my physical precious metals is about 60% silver, 30% gold and 10% palladium. I've been accumulating these metals over the course of the last 12 years. I continue to buy and only sell if and when I want to adjust the percentages within my portfolio. I consider my physical metals portfolio my ultimate bank account. It can't be devalued by government shenanigans. With all the worldwide problems related to fiat currencies, it's absolutely imperative that people have a portion of their liquid net worth in physical PMs. I believe silver is probably a better value at this point than gold, thus my reasoning to have a bigger percentage of silver in my portfolio. To illustrate why I like silver more at this point, let's first calculate how many ounces of silver it takes to buy one ounce of gold today. Gold is currently at $1,310/oz., silver at $22/oz. Based on those numbers, it takes roughly 60 ounces of silver at current metal prices to buy one ounce of gold today.History has shown during times of a secular bull market in precious metals that, eventually, silver's performance surpasses that of gold by quite a large margin. During the early phases of the secular bull market, gold leads the way and silver lags; but, as we begin to enter the latter phases, silver ultimately catches up and surpasses gold. I believe this is where we are right now in the overall precious metals market. Up until this point, gold has been the clear winner but silver is suddenly beginning to wake up and get the attention of a larger group of investors. I believe we could start to see this silver:gold ratio move closer to 40:1 and eventually even 15:1 as we get to the point where the PM market peaks out. We still have quite a ways to go before we get to that point.I am very bullish on silver. Earlier in the year, in my January 2010 newsletter and conferences I spoke at, I said silver would be somewhere around $23-$26/oz. before year-end. We're are now at $22/oz. and headed higher. How high silver and gold go this last quarter is really just a factor of how much safe-haven buying happens. The more problems that surface, the greater the buying pressure will be in the physical market.We still see sovereign-debt risk problems in Euroland; we know that Italy, Spain, Latvia, Portugal and others are on the verge of financial collapse. Germany, which reluctantly bailed out Greece, has already said it won't be bailing out any further problems that occur in the European Union. My contacts in Europe tell me that it's very likely Germany will opt out of the EU within 18 months as these sovereign debt problems become more pronounced. If that happens, it will be the end of the euro and the EU. It will drive even more money into the metals and precious metals mining stocks** TGR:** Then why aren't we seeing big gains in gold and silver stocks? **GM:** During the early stages of the secular bull market in precious metals, which really got started in 2001, the mining stocks would lead advances in the physical price. Now it's just the opposite, and to make things more confusing, the Dow is not acting inversely to metals prices. Well, something somewhere is not right and I think it's on the Dow side. Gold is not a bubble, the Dow is a bubble. The Dow at +10,000 in this environment is not sustainable in my opinion. I think it's going to retreat well below the 10,000 mark until eventually one ounce of gold and one share of the Dow are 1:1. Where the two shall meet is anybody's guess, but I would bet it'll be somewhere around the 5,000-7,000 area. That's right-one ounce of gold will be +$5,000/oz. while the Dow hovers around that same level. This will be the consequence to society for believing in the economic fantasy that real wealth and prosperity can be created by abusing fiat currencies. There is just no way around the problem. **TGR:** So, you believe paper currencies will fail and, as that is happening, investors will flock to gold en masse. But the TSX's main board is above 12,000 and the major American markets had a sound September. Your thesis requires fear. While that hasn't changed, has its timeframe?**GM:** Timing these things is very difficult, but I maintain that we're still on course. The same thing happened in the first meltdown. I warned people that things were going to get bad; I warned specifically about derivative problems. As we got closer, it got more pronounced. Then, of course, when it happened, it was like "wow, these gloom-and-doom guys were right." Well, no, we weren't right; we just paid attention to what was happening.We're still paying attention and we see the same problems. Nothing's been solved. All these derivative issues have just been covered up; they haven't been dealt with. Through sleight of hand and smoke and mirrors, the government has just hidden the real liabilities, piled on a bunch of whipped cream and now expects people to believe everything is ok. Well, it's not.The other problem is the U.S. government is now getting to the point that it can no longer sustain paying the interest on its Treasury Bill debt through normal means. Once the bond traders get a sniff of this-coming in the next few months-they will cut the U.S. government off at the knees and plunge the dollar even lower. The bond traders are ruthless; they don't care what happens to the country-they care first and foremost about profits. This is where the consequences of decades of abuse to our credit system will finally come home to roost. We have been able to postpone our consequences for quite some time; but, in effect, all we've done is make the end result worse by not dealing with it when we should have. And now it's going to be a big wake-up call for everybody. The timing on it? It sure looks close to me; I don't see any way out. **TGR:** When you say "close," what's close?**GM:** I think we're going to see some events this fall. The fiscal year-end for the United States is in October; the new fiscal year begins November 1. The fact the U.S. government can't keep up with the interest payments on its T-Bill debt is going to become well known. These problems on top of the derivative problems are like ticking time bombs; we don't know exactly when they're going to go off, but we know they must.Look at the banks; the banks have held all this money (TARP and economic stimulus) that was supposed to go back into the economy to help business owners, homeowners and generally stimulate the economic recovery. I say: **"What Recovery?"** None of that money got to where it was supposed to go. Why? The banks are selfishly holding the money to bail out their own rear ends because they have these derivative problems that haven't been solved. **TGR:** But you're on record saying that gold will get to $6,500 and silver will be in the hundreds per ounce eventually. These are pretty heady numbers even for an all-out economic collapse. **GM:** Yes, as we get to the mass-panic stage when the consequences show up in full force, this will drive the metals to their ultimate peaks for this cycle. There's so much fiat currency out there that will be chasing this tiny little sector called physical precious metals-and there's no room to receive it. In other words, there's not enough metal for everybody to have a part of the market. That will just drive prices into the stratosphere. I don't know how long it will last, but these problems aren't going to get resolved quickly. Nobody wants to see an all-out economic depression; but, if history teaches us anything, it's that depressions can be the catalyst to the real changes our country and world desperately needs. One of the things that must happen in order for this to occur is, we must abolish the Federal Reserve and get control of our country's money by putting ourselves back on some sort of gold and/or silver standard. For the past 39 years, we the people have allowed power-seeking politicians to run over us through the abuse of our fiat currency-the U.S. dollar. This activity has given us a false sense of prosperity and created the housing bubble, stock market bubble and now the biggest of all bubbles-the T-Bill bubble. Master idiot Greenspan was the architect.Politicians love fiat currencies and Keynesian Economics, which teach there is no need to back a currency with precious metals. Politicians don't like a gold, or silver, standard because it makes them accountable to the people. This is why Keynesian Economics is taught in all the schools. To afford all their debt schemes, they must have a fiat currency they can abuse at will-which is exactly what has happened in the U.S. for the past 39 years and why we find ourselves in such a tenuous situation. The financial consequences can be the catalyst for the real changes that must occur to send us into the next age of wonder and prosperity. How high are these metals going to go? It's anybody's guess; but, when you look back to the late 1970s that drive metals prices to their peaks in early 1980, it pales in comparison to what we're dealing with now. If you inflation-adjust-with real numbers not government-concocted nonsense-$875/oz. gold and $55/oz. silver in 1980, that $875 becomes $6,500 and $55 reaches into the hundreds. That's why I use those figures. I think gold will hit those targets before this is all said and done. It could go even higher depending on how bad the consequences are. **TGR:** Then we better start talking about gold stocks. You recently went to the Yukon and have since written an article about that play. **GM:** Yes, it's a very exciting situation; you can read the New Yukon Gold Rush at [www.321gold.com](http://www.ibtimes.com/) . The Yukon Klondike gold rush back in 1897 was one of the biggest gold rushes of all time and, since then, somewhere around 16-20 million ounces (Moz.) of gold has been taken out of the Dawson City area. That was mostly placer gold, which for people who don't know, is basically eroded gold that gets into the streams and rivers and flows to a spot where it piles up. Well, Dawson City is where this placer gold piled up.Geologists generally agree that in trying to determine how big the gold source is, they usually multiply whatever the placer gold is by 10. In this case, we would be looking at a gold source that is probably in the neighborhood of 200 Moz.For decades, people have been trying to find this source and have been mostly unsuccessful. There's a prospector named Shawn Ryan who's been doing a lot of prospecting up there, and he's suddenly received a lot of attention because two of the properties that he controlled and worked were vended into juniors that have had high-grade gold success. One of those, Underworld Resources Ltd., was bought by [Kinross Gold Corp. (TSX:K; NYSE:KGC)](http://www.ibtimes.com/) . The other, [Kaminak Gold Corporation (TSX.V:KAM)](http://www.ibtimes.com/) , is drilling its project and also is having great success. This is proving up the thesis that Shawn Ryan has discovered the source of all this placer gold. That's why I am optimistic that we're going to see a tremendous new gold rush up there. I think by next summer, you'll see a tremendous amount of money going into that ground looking for these big gold deposits. Underworld was in the 1-2 Moz. range. Kaminak is in the 2 Moz. range-and growing. How much bigger will they get? We don't know because there's a lot more work to be done, but these look like they are going to be very big discoveries. And, of course, that gets the attention of the mining world. I have been researching which companies have the best ground related to the signature of the White Gold camp and surrounding areas. I visited the area twice in the last two months and sense we are going to see a hoard of gold discoveries over the next five years and beyond. **TGR:** You mentioned Kaminak. Any others with promising ground in the White Gold camp?**GM:** I will give you another one called [Taku Gold Corp. (TSX.V:TAK; OTCBB:TAKUF)](http://www.ibtimes.com/) , which is trading at about $0.37 right now. It has one of the largest land positions in the White Gold camp. It's still up for debate whether this is the source of the placer gold; but, by looking at the maps and seeing where the streams and rivers flow, I would say it all flows toward Dawson City. The reason no one discovered it previously is because the White Gold camp is 90 km. away from Dawson City. The Dawson City area has the largest known occurrence of placer gold in the world, which tells you there's something going on there, this gold came from somewhere. Is it the White Gold camp? So far, we have some pretty good indications it could be; but more work is needed before that assessment can be finalized. **TGR:** We know you can't compromise your paid subscribers, but could you give us a couple of other small names that you like?**GM:** There will be a lot of companies. Shawn Ryan's been up there for 14 years doing soil samples, trenching-what is referred as "boots on the ground" geology. As Shawn says, these are the greatest clues you have to making a discovery. He gets out in the bush and does a lot of these soil samples at very aggressive numbers. Whereas some companies might do just a couple thousand samples, Shawn's doing 70,000, 80,000 and 90,000 samples on an area. That's why he's having success with his properties. Once the work has been done on the properties and he likes what he sees, he vends them into other juniors; they put the drill holes where Shawn shows them, and so far so good. Out of the 20,000 mining claims available in the White Gold camp, Shawn Ryan controls 12,000 of them. This is a guy we definitely want to get to know. I did a [radio interview](http://www.ibtimes.com/) with Shawn in my Yukon Gold report. If you haven't already, it's a must-listen-to interview. After you listen to it, I think you'll understand why you will want to invest with Shawn Ryan and his ground. **TGR:** What are some companies with Shawn Ryan ground?**GM:** Well, Shawn's still vending ground into new juniors. Some deals will be announced over the next several months, but it's no secret that [Stina Resources Ltd. (TSX.V:SQA)](http://www.ibtimes.com/) has a key piece of Shawn Ryan ground. **TGR:** Let's move to the Western U.S., where some recent discoveries have been made. Obviously, some of those were in Nevada, but other juniors have had gold exploration success in Idaho and Wyoming. Can you comment on what's happening there?**GM:** [Evolving Gold Corp. (TSX.V:EVG; Fkft:EV7)](http://www.ibtimes.com/) made the Rattlesnake Hills discovery, and I have followed it in my Insider Alert . After a big intercept of decent-grade gold, follow-up drilling this summer was also successful to some degree; but there still seem to be questions. The stock hasn't moved much, even though the company had some successful drilling because there are questions about the economics. All ore bodies are not created equal. It's not just about making a discovery; it's about making an economic discovery. Evolving Gold's an interesting story. Wyoming's not known for its gold occurrences, but that doesn't mean it can't happen.Idaho? There's gold in Idaho for sure. [Western Pacific Resources Corp. (TSX.V:WRP)](http://www.ibtimes.com/) , in particular, is on a trend that really extends from Nevada through the Idaho border. The company has the past-producing Mineral Gulch ([MG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MG&selected=MG)) ) mine and I've been out there on a site visit. It's very likely that Western Pacific can get not only MG back into production, but it's likely to grow with enough time and drilling. I think that could grow in a big way, and that's what's very interesting about being a Western Pacific shareholder-odds are very good that it will grow. **TGR:** Do you know what the resource is currently?**GM:** Pegasus Mining was the company that mined it in the 1990s. There's some new data coming out on Mineral Gulch that had been lost but was recently recovered. It appears the company now has the data, and it's going to be coming out with a new resource that should substantially add to the current resource. I don't know what that is yet, because it hasn't yet been made public. We will get the full report from Western Pacific after it crunches all this new data along with the historic numbers. But, in the existing pits, there are easily mineable ounces. The reason Pegasus shut down is because gold prices went very low at the end of the 1990s and it just couldn't make a go of it anymore. Fortunately, Western Pacific was able to get this ground.I like these scenarios where you have a past-producing mine that can be expanded from known resources. Even if those resources are only 300,000-500,000 oz., that's a start; that's cash flow. At $1,310 gold, we can make money on it and then use the profits to drill other areas and try to tie some of the pits together to form a sort of super pit. I think there's a lot more mineralization in this mountain, which more drilling can determine. You have a growing-ounces story in a rapidly rising [gold market](https://www.nasdaq.com/market-activity/commodities/GCCMX) that makes for good share appreciation. **TGR:** What about some junior silver plays?**GM:** I'll give you one, [Ethos Capital Corp. (TSX.V:ECC)](http://www.ibtimes.com/) . It's a Mexican story that will probably have a lot more properties vended into it; but for now, it's a start-up situation. It's run by Gary Freeman, whom I have had the good fortune to know for four or five years. I've had good success with Gary through [Pediment Gold Corp. (TSX:PEZ; OTCBB:PEZGF; FSE:P5E)](http://www.ibtimes.com/) .Ethos is a new deal for Gary. The company will start off with some silver carbonate replacement-type properties in Northern Mexico's silver belt-one of the largest silver-producing areas of the world. Carbonate replacement deposits, typically, contain high-grade silver-lead-zinc. The systems in this area are known to be very large and of very high grade. Once you get on to one, you follow it until you find the source of the mineralization; it's kind of like hitting the jackpot. Ethos Capital is starting out with two such properties; one is a little bit larger than the other, and the company is drilling now. We should get some results back soon. It's been drilling the smaller of the two projects-Corrales-and I think there's a good opportunity there. Ethos has a very tight share structure and it's very well managed.Another company onto one of these carbonate replacement systems in the area and in production is [Excellon Resources Inc. (TSX:EXN)](http://www.ibtimes.com/) . It keeps growing ounces and hopes to hit the mother lode. **TGR:** Any parting thoughts on the precious metals market?**GM:** Well, we're in a period where PM prices are breaking out to new highs again. Some people believe it won't last. I am not one of them. I believe gold and silver will have retracements from time to time, but nothing is going to stop these precious metals from going higher until the U.S.' economic problems are rectified. Most Americans are absolutely clueless about the desperate trouble their government is in. As more problems surface, the run into the PMs will only get bigger. Gold and silver are still dirt cheap compared to where they're going, and this bull market will go for many years. That makes a great opportunity in the mining stocks because it allows mining companies to go through the process of developing and reaching production. I've focused most of my Mining Speculator time on the exploration stories because that's where we get the biggest leverage. We follow the brightest geologists around, who make the discoveries that the majors come in and buy. That's where we make our big money. I believe owning physical precious metals and the right combination of PM mining stocks is the best way to protect yourself against the looming worldwide problems with fiat currencies.Greg McCoach is an entrepreneur who has successfully started and run several businesses in the past 23 years. For the last nine of these years, he has been involved with the precious metals industry as a bullion dealer, investor and newsletter writer ([Mining Speculator](http://www.ibtimes.com/)) and The Insider Alert). Greg is also the president of [AmeriGold](http://www.ibtimes.com/) , a gold bullion dealer. Greg's years of business experience and extensive personal contacts in the mining industry provide unique insights that have generated an impressive track record for The Mining Speculator since its inception in 2001. He also writes a weekly column for Gold World.Want to read more exclusive Gold Report interviews like this? [Sign up](http://www.ibtimes.com/) 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.ibtimes.com/) page. **DISCLOSURE:**1) Brian Sylvester of The Gold Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.2) The following companies mentioned in the interview are sponsors of The Gold Report : Evolving Gold, Western Pacific Resources, Ethos Capital and Pediment. 3) Greg McCoach: I personally and/or my family own shares of the following companies mentioned in this interview: Excellon, Ethos Capital, Western Pacific, Pediment, Taku Gold and Kaminak Gold. I personally and/or my family am paid by the following companies mentioned in this interview: None.Streetwise - [The Gold Report](http://www.ibtimes.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, their family members and 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]](http://www.ibtimes.com/)
Stock Price 4 days before: 11.7199
Stock Price 2 days before: 11.7808
Stock Price 1 day before: 11.4713
Stock Price at release: 11.5581
Risk-Free Rate at release: 0.0014
| 11.8099 |
Symbol: EU
Security: enCore Energy Corp.
Related Stocks/Topics: MG|Markets|A|PM|GOLD
Title: Greg McCoach: Preserving Your Precious Capital
Type: News
Publication: International Business Times
Publication Author: Unknown
Date: 2010-10-06 05:34:00
Article: **Greg McCoach: Preserving Your Precious Capital** Source: Brian Sylvester of The Gold Report 10/6/10[http://www.theaureport.com/pub/na/7559](http://www.ibtimes.com/) Mining Speculator Newsletter Writer Greg McCoach is nothing if not outspoken. "The U.S. government is now getting to the point that it can no longer pay the interest on its Treasury Bill debt through normal means. Once this leaks out, the Fed will start creating money on top of money. It will become a total Ponzi scheme," he says. But Greg believes that same fiscal foolishness is creating opportunities in precious metals. In this exclusive interview with The Gold Report , Greg coaches you on how to preserve your capital with some junior mining stocks. **The Gold Report:** Greg, in your bio, it says you're also a bullion dealer. Please tell our readers about that side of your life. **Greg McCoach:** I got into this business in 1998. I had owned a commercial print and mail facility that I sold to a bigger fish and was looking at what I wanted to do with the rest of my career, when I happened to read J. Paul Getty's autobiography about how he made his money. He suggested that to make truly big money you have to buy into things nobody else is interested in. In 1998, nobody was interested in precious metals (PMs); so I decided to jump in, and became a bullion dealer. A couple of years later, I became a newsletter writer for PM mining stocks.My bullion dealership, [AmeriGold](http://www.ibtimes.com/) , takes the time to educate first-time buyers on all the issues related to owning PMs, both buying and selling. We deal in modern coins and bars that investors covet. We refer to ourselves as a "safe and reliable place" to buy and sell precious metals. **TGR:** Do you hold them for investors, too?**GM:** No, we don't. We recommend investors take delivery of metal or store it in a private depository like Brinks, Inc. If your readers have any questions, they should call some of the people at AmeriGold who can answer their questions without any sales pressure (1-800-574-0047). **TGR:** You're on record as saying you hold physical precious metals. What's your percentage of PM holdings?**GM:** I believe in holding a nice chunk of my liquid net worth in physical PMs. The ratio within my physical precious metals is about 60% silver, 30% gold and 10% palladium. I've been accumulating these metals over the course of the last 12 years. I continue to buy and only sell if and when I want to adjust the percentages within my portfolio. I consider my physical metals portfolio my ultimate bank account. It can't be devalued by government shenanigans. With all the worldwide problems related to fiat currencies, it's absolutely imperative that people have a portion of their liquid net worth in physical PMs. I believe silver is probably a better value at this point than gold, thus my reasoning to have a bigger percentage of silver in my portfolio. To illustrate why I like silver more at this point, let's first calculate how many ounces of silver it takes to buy one ounce of gold today. Gold is currently at $1,310/oz., silver at $22/oz. Based on those numbers, it takes roughly 60 ounces of silver at current metal prices to buy one ounce of gold today.History has shown during times of a secular bull market in precious metals that, eventually, silver's performance surpasses that of gold by quite a large margin. During the early phases of the secular bull market, gold leads the way and silver lags; but, as we begin to enter the latter phases, silver ultimately catches up and surpasses gold. I believe this is where we are right now in the overall precious metals market. Up until this point, gold has been the clear winner but silver is suddenly beginning to wake up and get the attention of a larger group of investors. I believe we could start to see this silver:gold ratio move closer to 40:1 and eventually even 15:1 as we get to the point where the PM market peaks out. We still have quite a ways to go before we get to that point.I am very bullish on silver. Earlier in the year, in my January 2010 newsletter and conferences I spoke at, I said silver would be somewhere around $23-$26/oz. before year-end. We're are now at $22/oz. and headed higher. How high silver and gold go this last quarter is really just a factor of how much safe-haven buying happens. The more problems that surface, the greater the buying pressure will be in the physical market.We still see sovereign-debt risk problems in Euroland; we know that Italy, Spain, Latvia, Portugal and others are on the verge of financial collapse. Germany, which reluctantly bailed out Greece, has already said it won't be bailing out any further problems that occur in the European Union. My contacts in Europe tell me that it's very likely Germany will opt out of the EU within 18 months as these sovereign debt problems become more pronounced. If that happens, it will be the end of the euro and the EU. It will drive even more money into the metals and precious metals mining stocks** TGR:** Then why aren't we seeing big gains in gold and silver stocks? **GM:** During the early stages of the secular bull market in precious metals, which really got started in 2001, the mining stocks would lead advances in the physical price. Now it's just the opposite, and to make things more confusing, the Dow is not acting inversely to metals prices. Well, something somewhere is not right and I think it's on the Dow side. Gold is not a bubble, the Dow is a bubble. The Dow at +10,000 in this environment is not sustainable in my opinion. I think it's going to retreat well below the 10,000 mark until eventually one ounce of gold and one share of the Dow are 1:1. Where the two shall meet is anybody's guess, but I would bet it'll be somewhere around the 5,000-7,000 area. That's right-one ounce of gold will be +$5,000/oz. while the Dow hovers around that same level. This will be the consequence to society for believing in the economic fantasy that real wealth and prosperity can be created by abusing fiat currencies. There is just no way around the problem. **TGR:** So, you believe paper currencies will fail and, as that is happening, investors will flock to gold en masse. But the TSX's main board is above 12,000 and the major American markets had a sound September. Your thesis requires fear. While that hasn't changed, has its timeframe?**GM:** Timing these things is very difficult, but I maintain that we're still on course. The same thing happened in the first meltdown. I warned people that things were going to get bad; I warned specifically about derivative problems. As we got closer, it got more pronounced. Then, of course, when it happened, it was like "wow, these gloom-and-doom guys were right." Well, no, we weren't right; we just paid attention to what was happening.We're still paying attention and we see the same problems. Nothing's been solved. All these derivative issues have just been covered up; they haven't been dealt with. Through sleight of hand and smoke and mirrors, the government has just hidden the real liabilities, piled on a bunch of whipped cream and now expects people to believe everything is ok. Well, it's not.The other problem is the U.S. government is now getting to the point that it can no longer sustain paying the interest on its Treasury Bill debt through normal means. Once the bond traders get a sniff of this-coming in the next few months-they will cut the U.S. government off at the knees and plunge the dollar even lower. The bond traders are ruthless; they don't care what happens to the country-they care first and foremost about profits. This is where the consequences of decades of abuse to our credit system will finally come home to roost. We have been able to postpone our consequences for quite some time; but, in effect, all we've done is make the end result worse by not dealing with it when we should have. And now it's going to be a big wake-up call for everybody. The timing on it? It sure looks close to me; I don't see any way out. **TGR:** When you say "close," what's close?**GM:** I think we're going to see some events this fall. The fiscal year-end for the United States is in October; the new fiscal year begins November 1. The fact the U.S. government can't keep up with the interest payments on its T-Bill debt is going to become well known. These problems on top of the derivative problems are like ticking time bombs; we don't know exactly when they're going to go off, but we know they must.Look at the banks; the banks have held all this money (TARP and economic stimulus) that was supposed to go back into the economy to help business owners, homeowners and generally stimulate the economic recovery. I say: **"What Recovery?"** None of that money got to where it was supposed to go. Why? The banks are selfishly holding the money to bail out their own rear ends because they have these derivative problems that haven't been solved. **TGR:** But you're on record saying that gold will get to $6,500 and silver will be in the hundreds per ounce eventually. These are pretty heady numbers even for an all-out economic collapse. **GM:** Yes, as we get to the mass-panic stage when the consequences show up in full force, this will drive the metals to their ultimate peaks for this cycle. There's so much fiat currency out there that will be chasing this tiny little sector called physical precious metals-and there's no room to receive it. In other words, there's not enough metal for everybody to have a part of the market. That will just drive prices into the stratosphere. I don't know how long it will last, but these problems aren't going to get resolved quickly. Nobody wants to see an all-out economic depression; but, if history teaches us anything, it's that depressions can be the catalyst to the real changes our country and world desperately needs. One of the things that must happen in order for this to occur is, we must abolish the Federal Reserve and get control of our country's money by putting ourselves back on some sort of gold and/or silver standard. For the past 39 years, we the people have allowed power-seeking politicians to run over us through the abuse of our fiat currency-the U.S. dollar. This activity has given us a false sense of prosperity and created the housing bubble, stock market bubble and now the biggest of all bubbles-the T-Bill bubble. Master idiot Greenspan was the architect.Politicians love fiat currencies and Keynesian Economics, which teach there is no need to back a currency with precious metals. Politicians don't like a gold, or silver, standard because it makes them accountable to the people. This is why Keynesian Economics is taught in all the schools. To afford all their debt schemes, they must have a fiat currency they can abuse at will-which is exactly what has happened in the U.S. for the past 39 years and why we find ourselves in such a tenuous situation. The financial consequences can be the catalyst for the real changes that must occur to send us into the next age of wonder and prosperity. How high are these metals going to go? It's anybody's guess; but, when you look back to the late 1970s that drive metals prices to their peaks in early 1980, it pales in comparison to what we're dealing with now. If you inflation-adjust-with real numbers not government-concocted nonsense-$875/oz. gold and $55/oz. silver in 1980, that $875 becomes $6,500 and $55 reaches into the hundreds. That's why I use those figures. I think gold will hit those targets before this is all said and done. It could go even higher depending on how bad the consequences are. **TGR:** Then we better start talking about gold stocks. You recently went to the Yukon and have since written an article about that play. **GM:** Yes, it's a very exciting situation; you can read the New Yukon Gold Rush at [www.321gold.com](http://www.ibtimes.com/) . The Yukon Klondike gold rush back in 1897 was one of the biggest gold rushes of all time and, since then, somewhere around 16-20 million ounces (Moz.) of gold has been taken out of the Dawson City area. That was mostly placer gold, which for people who don't know, is basically eroded gold that gets into the streams and rivers and flows to a spot where it piles up. Well, Dawson City is where this placer gold piled up.Geologists generally agree that in trying to determine how big the gold source is, they usually multiply whatever the placer gold is by 10. In this case, we would be looking at a gold source that is probably in the neighborhood of 200 Moz.For decades, people have been trying to find this source and have been mostly unsuccessful. There's a prospector named Shawn Ryan who's been doing a lot of prospecting up there, and he's suddenly received a lot of attention because two of the properties that he controlled and worked were vended into juniors that have had high-grade gold success. One of those, Underworld Resources Ltd., was bought by [Kinross Gold Corp. (TSX:K; NYSE:KGC)](http://www.ibtimes.com/) . The other, [Kaminak Gold Corporation (TSX.V:KAM)](http://www.ibtimes.com/) , is drilling its project and also is having great success. This is proving up the thesis that Shawn Ryan has discovered the source of all this placer gold. That's why I am optimistic that we're going to see a tremendous new gold rush up there. I think by next summer, you'll see a tremendous amount of money going into that ground looking for these big gold deposits. Underworld was in the 1-2 Moz. range. Kaminak is in the 2 Moz. range-and growing. How much bigger will they get? We don't know because there's a lot more work to be done, but these look like they are going to be very big discoveries. And, of course, that gets the attention of the mining world. I have been researching which companies have the best ground related to the signature of the White Gold camp and surrounding areas. I visited the area twice in the last two months and sense we are going to see a hoard of gold discoveries over the next five years and beyond. **TGR:** You mentioned Kaminak. Any others with promising ground in the White Gold camp?**GM:** I will give you another one called [Taku Gold Corp. (TSX.V:TAK; OTCBB:TAKUF)](http://www.ibtimes.com/) , which is trading at about $0.37 right now. It has one of the largest land positions in the White Gold camp. It's still up for debate whether this is the source of the placer gold; but, by looking at the maps and seeing where the streams and rivers flow, I would say it all flows toward Dawson City. The reason no one discovered it previously is because the White Gold camp is 90 km. away from Dawson City. The Dawson City area has the largest known occurrence of placer gold in the world, which tells you there's something going on there, this gold came from somewhere. Is it the White Gold camp? So far, we have some pretty good indications it could be; but more work is needed before that assessment can be finalized. **TGR:** We know you can't compromise your paid subscribers, but could you give us a couple of other small names that you like?**GM:** There will be a lot of companies. Shawn Ryan's been up there for 14 years doing soil samples, trenching-what is referred as "boots on the ground" geology. As Shawn says, these are the greatest clues you have to making a discovery. He gets out in the bush and does a lot of these soil samples at very aggressive numbers. Whereas some companies might do just a couple thousand samples, Shawn's doing 70,000, 80,000 and 90,000 samples on an area. That's why he's having success with his properties. Once the work has been done on the properties and he likes what he sees, he vends them into other juniors; they put the drill holes where Shawn shows them, and so far so good. Out of the 20,000 mining claims available in the White Gold camp, Shawn Ryan controls 12,000 of them. This is a guy we definitely want to get to know. I did a [radio interview](http://www.ibtimes.com/) with Shawn in my Yukon Gold report. If you haven't already, it's a must-listen-to interview. After you listen to it, I think you'll understand why you will want to invest with Shawn Ryan and his ground. **TGR:** What are some companies with Shawn Ryan ground?**GM:** Well, Shawn's still vending ground into new juniors. Some deals will be announced over the next several months, but it's no secret that [Stina Resources Ltd. (TSX.V:SQA)](http://www.ibtimes.com/) has a key piece of Shawn Ryan ground. **TGR:** Let's move to the Western U.S., where some recent discoveries have been made. Obviously, some of those were in Nevada, but other juniors have had gold exploration success in Idaho and Wyoming. Can you comment on what's happening there?**GM:** [Evolving Gold Corp. (TSX.V:EVG; Fkft:EV7)](http://www.ibtimes.com/) made the Rattlesnake Hills discovery, and I have followed it in my Insider Alert . After a big intercept of decent-grade gold, follow-up drilling this summer was also successful to some degree; but there still seem to be questions. The stock hasn't moved much, even though the company had some successful drilling because there are questions about the economics. All ore bodies are not created equal. It's not just about making a discovery; it's about making an economic discovery. Evolving Gold's an interesting story. Wyoming's not known for its gold occurrences, but that doesn't mean it can't happen.Idaho? There's gold in Idaho for sure. [Western Pacific Resources Corp. (TSX.V:WRP)](http://www.ibtimes.com/) , in particular, is on a trend that really extends from Nevada through the Idaho border. The company has the past-producing Mineral Gulch ([MG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MG&selected=MG)) ) mine and I've been out there on a site visit. It's very likely that Western Pacific can get not only MG back into production, but it's likely to grow with enough time and drilling. I think that could grow in a big way, and that's what's very interesting about being a Western Pacific shareholder-odds are very good that it will grow. **TGR:** Do you know what the resource is currently?**GM:** Pegasus Mining was the company that mined it in the 1990s. There's some new data coming out on Mineral Gulch that had been lost but was recently recovered. It appears the company now has the data, and it's going to be coming out with a new resource that should substantially add to the current resource. I don't know what that is yet, because it hasn't yet been made public. We will get the full report from Western Pacific after it crunches all this new data along with the historic numbers. But, in the existing pits, there are easily mineable ounces. The reason Pegasus shut down is because gold prices went very low at the end of the 1990s and it just couldn't make a go of it anymore. Fortunately, Western Pacific was able to get this ground.I like these scenarios where you have a past-producing mine that can be expanded from known resources. Even if those resources are only 300,000-500,000 oz., that's a start; that's cash flow. At $1,310 gold, we can make money on it and then use the profits to drill other areas and try to tie some of the pits together to form a sort of super pit. I think there's a lot more mineralization in this mountain, which more drilling can determine. You have a growing-ounces story in a rapidly rising [gold market](https://www.nasdaq.com/market-activity/commodities/GCCMX) that makes for good share appreciation. **TGR:** What about some junior silver plays?**GM:** I'll give you one, [Ethos Capital Corp. (TSX.V:ECC)](http://www.ibtimes.com/) . It's a Mexican story that will probably have a lot more properties vended into it; but for now, it's a start-up situation. It's run by Gary Freeman, whom I have had the good fortune to know for four or five years. I've had good success with Gary through [Pediment Gold Corp. (TSX:PEZ; OTCBB:PEZGF; FSE:P5E)](http://www.ibtimes.com/) .Ethos is a new deal for Gary. The company will start off with some silver carbonate replacement-type properties in Northern Mexico's silver belt-one of the largest silver-producing areas of the world. Carbonate replacement deposits, typically, contain high-grade silver-lead-zinc. The systems in this area are known to be very large and of very high grade. Once you get on to one, you follow it until you find the source of the mineralization; it's kind of like hitting the jackpot. Ethos Capital is starting out with two such properties; one is a little bit larger than the other, and the company is drilling now. We should get some results back soon. It's been drilling the smaller of the two projects-Corrales-and I think there's a good opportunity there. Ethos has a very tight share structure and it's very well managed.Another company onto one of these carbonate replacement systems in the area and in production is [Excellon Resources Inc. (TSX:EXN)](http://www.ibtimes.com/) . It keeps growing ounces and hopes to hit the mother lode. **TGR:** Any parting thoughts on the precious metals market?**GM:** Well, we're in a period where PM prices are breaking out to new highs again. Some people believe it won't last. I am not one of them. I believe gold and silver will have retracements from time to time, but nothing is going to stop these precious metals from going higher until the U.S.' economic problems are rectified. Most Americans are absolutely clueless about the desperate trouble their government is in. As more problems surface, the run into the PMs will only get bigger. Gold and silver are still dirt cheap compared to where they're going, and this bull market will go for many years. That makes a great opportunity in the mining stocks because it allows mining companies to go through the process of developing and reaching production. I've focused most of my Mining Speculator time on the exploration stories because that's where we get the biggest leverage. We follow the brightest geologists around, who make the discoveries that the majors come in and buy. That's where we make our big money. I believe owning physical precious metals and the right combination of PM mining stocks is the best way to protect yourself against the looming worldwide problems with fiat currencies.Greg McCoach is an entrepreneur who has successfully started and run several businesses in the past 23 years. For the last nine of these years, he has been involved with the precious metals industry as a bullion dealer, investor and newsletter writer ([Mining Speculator](http://www.ibtimes.com/)) and The Insider Alert). Greg is also the president of [AmeriGold](http://www.ibtimes.com/) , a gold bullion dealer. Greg's years of business experience and extensive personal contacts in the mining industry provide unique insights that have generated an impressive track record for The Mining Speculator since its inception in 2001. He also writes a weekly column for Gold World.Want to read more exclusive Gold Report interviews like this? [Sign up](http://www.ibtimes.com/) 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.ibtimes.com/) page. **DISCLOSURE:**1) Brian Sylvester of The Gold Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.2) The following companies mentioned in the interview are sponsors of The Gold Report : Evolving Gold, Western Pacific Resources, Ethos Capital and Pediment. 3) Greg McCoach: I personally and/or my family own shares of the following companies mentioned in this interview: Excellon, Ethos Capital, Western Pacific, Pediment, Taku Gold and Kaminak Gold. I personally and/or my family am paid by the following companies mentioned in this interview: None.Streetwise - [The Gold Report](http://www.ibtimes.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, their family members and 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. 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Stock Price 4 days before: 22.1476
Stock Price 2 days before: 22.2063
Stock Price 1 day before: 22.2543
Stock Price at release: 22.4152
Risk-Free Rate at release: 0.0014
| 22.78 |
Symbol: ODP
Security: The ODP Corporation
Related Stocks/Topics: Markets|COST|BBY
Title: What This Key Stock's Move Today Means for the Retail Sector
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-06 12:03:00
Article: As we've been discussing throughout the past six months, a range-bound market means you're likely better off moving in and out of certain stocks and sectors as they prove timely. Buy-and-hold appears dead for now, although few have the ability to profit from very short-term trades either. **Costco (Nasdaq: COST)** highlights the value of a "mid-term trade." In just six weeks, investors have made about +25% from this investment. Yet Wednesday's quarterly report from this retailer tells us it's time to "sell on the news." Whenever you see a stock make a solid move as Costco has, it leads you to wonder if business is trending well ahead of expectations. That's why it makes sense to hang on and see how quarterly results fare. I've noticed solid upward moves in four other retail pays I track; **Best Buy ([BBY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BBY&selected=BBY)) )** , **Leapfrog Enterprises ([LF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LF&selected=LF)) )** , **Office Depot (NYSE: ODP** ) and **Casual Male (Nasdaq: CMRG)** . Is business improving for these firms, or is the recent spike in Costco and these other companies' shares simply due to a re-rotation back into retail?Wednesday's dismal ADP jobs report, which is a precursor to Friday's monthly employment report from the Labor Department, should give pause. So the retail trade may be premature and it may be time to book profits in recent retail gainers. That's what investors are doing with Costco, which is pulling back -1.5% today after running from $60 to $65 in the second half of September.Costco's quarterly sales slightly lagged estimates (when you back out the impact of gas price changes), although per share profits were slightly better than analysts had expected. And judging by the numbers, the recent rally makes this stock now look fully valued. Thanks to the tepid [economy](http://investinganswers.com/term/economy-1517) , Costco's sales are likely to only rise +6% to +7% in the [fiscal year](http://investinganswers.com/term/fiscal-year-1316) that began last month. Profits are likely to grow at low double-digits. Yet shares trade for about 20 times projected fiscal 2011 profits and are really no bargain. **Action to Take -->** Whether it's the broader stock market or an individual stock, I'm always on the lookout for a sideways chart. When a stock is rising, buyers outnumber sellers. When a stock starts to move sideways, that's a sign that either sellers are stepping in or buyers are petering out. Either way, it often results in the next move being a downward one, as sellers eventually overwhelm buyers. I'm not predicting that for Costco specifically, but you may want to use this as a signal to take profits if you have secured a solid run in an investment.As noted above, select retail stocks have had a nice run, though it is unlikely they are reflecting improving consumer spending. On Wednesday and Thursday, a wide range of retailers will weigh in on how they fared in the back-to-school season. How the sector trades in response will be telling. If Costco is any indication, investor sentiment may be cooling and it may be wise to book any profits you've had on "mid-term trades" like this one. [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...P.S. -- There's an analyst with a track record you need to see. She has an 89% win rate -- remarkable for this market. And she just keeps picking winners. One of her recent picks shot up +18.2% in just 13 days. Go here for the details...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: 4.58629
Stock Price 2 days before: 4.50031
Stock Price 1 day before: 4.6486
Stock Price at release: 4.49
Risk-Free Rate at release: 0.0014
| 4.78 |
Symbol: ZUMZ
Security: Zumiez Inc.
Related Stocks/Topics: RTH|Markets|ANF|BKE|AEO
Title: Newly Released Data Makes This Sector Even More of a Long-Term Buy
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-07 06:48:00
Article: If you are a close watcher of retail stocks, you have every right to throw up your hands in exasperation. With all of the distress taking place among consumers, who would have guessed that the back-to-school season would be so good?Some retailers, such as **Abercrombie & Fitch ([ANF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ANF&selected=ANF)) )** and **Limited Brands ([LTD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LTD&selected=LTD)) )** , posted surprise double-digit gains in same store sales, while many others posted comps in the mid single-digits. Almost all of them were ahead of analysts' forecasts. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) -- David StermanDoes this mean that we should take all of the gloom and doom about consumers with a grain of salt? Yes. Does this mean that retail stocks have become a compelling buy? Yes. But not for the reasons you think, and only in the long-term context.It may look as if we're off to a strong rebound in retail spending. But one month's data does not a trend make. October sales could just as easily be lackluster. Instead, the real reason to like retail stocks is the tremendous amount of [earnings](http://investinganswers.com/term/earnings-1514) [leverage](http://investinganswers.com/term/leverage-61) they can garner from only modest sales growth. I covered this topic in early July when the **Merrill Lynch Retail HOLDRs [ETF](http://investinganswers.com/term/exchange-traded-fund-etf-805) ([RTH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RTH&selected=RTH)) )** moved to lows for the year. [Read: " [A Little goes a Long Way for this Sector](http://www.streetauthority.com/news/little-goes-long-way-sector-456335) "]Since then, that ETF has risen nearly +15% to almost $100 and is now close to the all-time high of $107 hit back in 2007. Trouble is, retail sales remain well below levels seen back then.Why the recent rally? Investors increasingly understand that retailers are now so lean and efficient that only a modest improvement in sales yields far more robust profit gains. Curiously, retail stocks, after a recent strong run, are flat this week even as sales numbers are surprisingly robust. Only **Abercrombie & Fitch** , **Zumiez (Nasdaq: ZUMZ)** , American **Eagle Outfitters ([AEO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AEO&selected=AEO)) )** and **The Buckle ([BKE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BKE&selected=BKE)) )** are big gainers in Thursday trading. (The Buckle's surge comes as negative sales comparisons were not as bad as had been feared). At this point, investors have more questions than answers. Was this sales spike due to back-to-school demand or a harbinger of more robust spending to come in the seasonally quieter next two months before December? Should we now assume that holiday spending will be very strong? Should investors jump in now, even after the sector has had a solid rebound? Truth is, we really don't know. Retail sales have been surprising to the upside and downside for a number of months. And through that time, no clear trend has been established. ****Action to Take --> As noted earlier, retail profits could hit record levels in the next few years as the industry's leading players now operate in an ultra-lean fashion. That makes them a long-term buy. But near-term results are likely to keep wobbling up and down. With myriad state layoffs expected to keep coming [See: " [12 States in Financial Distress](http://www.streetauthority.com/news/12-states-financial-distress-456588) "], any private-sector job creation is likely to be blunted. And as long as unemployment remains quite high, any retail euphoria needs to be kept in check.Keep an eye on that Retail HOLDRs ETF. It's proven wiser to buy it after steady pullbacks, and persistent concerns on the [economy](http://investinganswers.com/term/economy-1517) just might create the pullback that value investors crave.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) David 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: 21.1801
Stock Price 2 days before: 21.7226
Stock Price 1 day before: 22.3832
Stock Price at release: 23.6502
Risk-Free Rate at release: 0.0015
| 28.1634 |
Symbol: BKE
Security: The Buckle, Inc.
Related Stocks/Topics: RTH|Markets|ZUMZ|ANF|AEO
Title: Newly Released Data Makes This Sector Even More of a Long-Term Buy
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-07 06:48:00
Article: If you are a close watcher of retail stocks, you have every right to throw up your hands in exasperation. With all of the distress taking place among consumers, who would have guessed that the back-to-school season would be so good?Some retailers, such as **Abercrombie & Fitch ([ANF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ANF&selected=ANF)) )** and **Limited Brands ([LTD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LTD&selected=LTD)) )** , posted surprise double-digit gains in same store sales, while many others posted comps in the mid single-digits. Almost all of them were ahead of analysts' forecasts. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) -- David StermanDoes this mean that we should take all of the gloom and doom about consumers with a grain of salt? Yes. Does this mean that retail stocks have become a compelling buy? Yes. But not for the reasons you think, and only in the long-term context.It may look as if we're off to a strong rebound in retail spending. But one month's data does not a trend make. October sales could just as easily be lackluster. Instead, the real reason to like retail stocks is the tremendous amount of [earnings](http://investinganswers.com/term/earnings-1514) [leverage](http://investinganswers.com/term/leverage-61) they can garner from only modest sales growth. I covered this topic in early July when the **Merrill Lynch Retail HOLDRs [ETF](http://investinganswers.com/term/exchange-traded-fund-etf-805) ([RTH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RTH&selected=RTH)) )** moved to lows for the year. [Read: " [A Little goes a Long Way for this Sector](http://www.streetauthority.com/news/little-goes-long-way-sector-456335) "]Since then, that ETF has risen nearly +15% to almost $100 and is now close to the all-time high of $107 hit back in 2007. Trouble is, retail sales remain well below levels seen back then.Why the recent rally? Investors increasingly understand that retailers are now so lean and efficient that only a modest improvement in sales yields far more robust profit gains. Curiously, retail stocks, after a recent strong run, are flat this week even as sales numbers are surprisingly robust. Only **Abercrombie & Fitch** , **Zumiez (Nasdaq: ZUMZ)** , American **Eagle Outfitters ([AEO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AEO&selected=AEO)) )** and **The Buckle ([BKE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BKE&selected=BKE)) )** are big gainers in Thursday trading. (The Buckle's surge comes as negative sales comparisons were not as bad as had been feared). At this point, investors have more questions than answers. Was this sales spike due to back-to-school demand or a harbinger of more robust spending to come in the seasonally quieter next two months before December? Should we now assume that holiday spending will be very strong? Should investors jump in now, even after the sector has had a solid rebound? Truth is, we really don't know. Retail sales have been surprising to the upside and downside for a number of months. And through that time, no clear trend has been established. ****Action to Take --> As noted earlier, retail profits could hit record levels in the next few years as the industry's leading players now operate in an ultra-lean fashion. That makes them a long-term buy. But near-term results are likely to keep wobbling up and down. With myriad state layoffs expected to keep coming [See: " [12 States in Financial Distress](http://www.streetauthority.com/news/12-states-financial-distress-456588) "], any private-sector job creation is likely to be blunted. And as long as unemployment remains quite high, any retail euphoria needs to be kept in check.Keep an eye on that Retail HOLDRs ETF. It's proven wiser to buy it after steady pullbacks, and persistent concerns on the [economy](http://investinganswers.com/term/economy-1517) just might create the pullback that value investors crave.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) David 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: 26.4056
Stock Price 2 days before: 26.7096
Stock Price 1 day before: 26.4812
Stock Price at release: 27.8995
Risk-Free Rate at release: 0.0015
| 33.772 |
Symbol: IMOS
Security: ChipMOS TECHNOLOGIES INC.
Related Stocks/Topics: TSEM|Markets|MGIC|WSTL
Title: 8 Technology Penny Stocks to Buy Now
Type: News
Publication: Louis Navellier
Publication Author: Unknown
Date: 2010-10-07 10:44:00
Article: [Penny stock investing](http://www.investorplace.com/category/hot-topics/penny-stocks) doesn't have to be a crap shoot on long-shot stocks. Done well, penny stocks can be a great way to diversify your portfolio and really amp up your investment profits. While penny stock investing can be risky, it can also be very rewarding.I recommend finding bargain penny stocks traded on major exchanges, for no less than $1 a share and with a proven track record. These penny stock investments should show significant earnings growth and strong buying pressure behind shares, increasing the likelihood that these stocks will be on the way up in the very near future. Here are eight low-priced technology stocks that fit this description. All have fared very well in 2010 and could make profitable additions to your portfolio going forward. **T****ower Semiconductor ([TSEM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSEM&selected=TSEM)) )****Tower Semiconductor** (NASDAQ: [TSEM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSEM&selected=TSEM) ) is an independent foundry involved with the manufacture of semiconductors. Tower's products are commonly used in consumer electronics, personal computers, automobiles and medical device products. Year-to-date, TSEM has climbed 42.3%. Even better for shareholders, the tech stock has jumped 53.3% over the past 12 months. Trading at $1.38, TSEM is a very affordable tech stock to buy at the moment. **Wave Systems ([WAVX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WAVX&selected=WAVX)) )****Wave Systems** (NASDAQ: [WAVX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WAVX&selected=WAVX) ) produces products for hardware-based digital security. These products are normally used in identity protection, data security, digital signatures, electronic transaction integrity and network security. Since last October, WAVX has skyrocketed 173.5%. Wave has a market cap of just $183 million, but is a penny stock worth a closer look based on its recent performance. **Zix ([ZIXI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ZIXI&selected=ZIXI)) )**Headquartered in Dallas, **Zix** (NASDAQ: [ZIXI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ZIXI&selected=ZIXI) ) is an e-mail encryption service. Its service is used in the health care, financial services, insurance and government sectors. Year-to-date, ZIXI stock has jumped 60.8%. The rally is part of a larger trend, in which the stock is up 37.5% over the past five years. Last quarter, Zix reported a net profit margin of 16.4%. Trading at $2.75, ZIXI is an inexpensive stock worth buying, based on its short-term and long-term performance. **Microtune (TUNE** )**Microtune** (NASDAQ: [TUNE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TUNE&selected=TUNE) ) is known for its receiver solutions for cable, automotive entertainment electronics and digital television markets. TUNE has had an up-and-down 2010, but thanks to a strong September showing, is up 28.1% year-to-date. In September, the stock climbed 27.2%, thanks in part to the announcement by Zoran ([ZRAN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ZRAN&selected=ZRAN)) ) that it was planning on purchasing Microtune for $166 million. TUNE stock currently trades at $2.89. **Westell Technologies ([WSTL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WSTL&selected=WSTL)) )**Based in Illinois, **Westell Technologies** (NASDAQ: [WSTL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WSTL&selected=WSTL) ) is a holding company divided into the following segments: customer network solutions equipment, outside plant systems equipment and conference plus services. Its subsidiary Westell provides telecommunications products to telephone companies. Year-to-date, WSTL stock is up 90.8%, and the penny stock reported a net profit margin of 11.2% in its last income statement. Finally, WSTL has outperformed earnings estimates for three consecutive quarters, making it a penny stock worth buying. **ChipMOS Technologies ([IMOS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IMOS&selected=IMOS)) )****ChipMOS Technologies** (NASDAQ: [IMOS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IMOS&selected=IMOS) ) provides its clients back-end testing services, including engineering testing, wafer probing and final testing of memory and logic/mixed-signal semiconductors. Since January, the penny stock has gained 94.4%, compared to small gains by the broader markets. Earlier in the year, the stock was trading at just 60 cents a share, and now trades at $1.37. A strong showing in September shows that this is an affordable stock worth scooping up. **RAE Systems ([RAE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RAE&selected=RAE)) )****RAE Systems** (AMEX: [RAE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RAE&selected=RAE) ) develops and manufactures multi-sensor chemical and radiation monitors as well as wireless networks. RAE saw a huge increase in mid-September, and the stock is up 43.6% year-to-date. The stock spike occurred after it was announced that the penny stock would be acquired by a subsidiary of Battery Ventures. A quarterly revenue growth year-over-year of 17% is another reason to buy this tech stock. **Magic Software Enterprises ([MGIC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MGIC&selected=MGIC)) )****Magic Software Enterprises** (NASDAQ: [MGIC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MGIC&selected=MGIC) ) develops, markets, sells and supports an application platform for its clients across the globe. Over the past 12 months, MGIC stock has climbed an impressive 46.9%. The biggest jump for the stock came in March when the company signed two new partners in Germany. Over the past five years, MGIC stock is up nearly 58%, proving that this penny stock has been valuable in the long run. **Top 5 Stocks for the 4th Quarter Surge**. Louis Navellier details five stocks set to deliver record earnings and jump 30%-50% in the next 90 days as the big money piles in. [Get their names online here,](http://www.investorplace.com/order/?sid=FG4146) including Louis' buy-below and target prices.
Stock Price 4 days before: 1.2908
Stock Price 2 days before: 1.30886
Stock Price 1 day before: 1.39512
Stock Price at release: 1.48319
Risk-Free Rate at release: 0.0015
| 1.35945 |
Symbol: MGIC
Security: Magic Software Enterprises Ltd.
Related Stocks/Topics: TSEM|Markets|IMOS|WSTL
Title: 8 Technology Penny Stocks to Buy Now
Type: News
Publication: Louis Navellier
Publication Author: Unknown
Date: 2010-10-07 10:44:00
Article: [Penny stock investing](http://www.investorplace.com/category/hot-topics/penny-stocks) doesn't have to be a crap shoot on long-shot stocks. Done well, penny stocks can be a great way to diversify your portfolio and really amp up your investment profits. While penny stock investing can be risky, it can also be very rewarding.I recommend finding bargain penny stocks traded on major exchanges, for no less than $1 a share and with a proven track record. These penny stock investments should show significant earnings growth and strong buying pressure behind shares, increasing the likelihood that these stocks will be on the way up in the very near future. Here are eight low-priced technology stocks that fit this description. All have fared very well in 2010 and could make profitable additions to your portfolio going forward. **T****ower Semiconductor ([TSEM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSEM&selected=TSEM)) )****Tower Semiconductor** (NASDAQ: [TSEM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSEM&selected=TSEM) ) is an independent foundry involved with the manufacture of semiconductors. Tower's products are commonly used in consumer electronics, personal computers, automobiles and medical device products. Year-to-date, TSEM has climbed 42.3%. Even better for shareholders, the tech stock has jumped 53.3% over the past 12 months. Trading at $1.38, TSEM is a very affordable tech stock to buy at the moment. **Wave Systems ([WAVX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WAVX&selected=WAVX)) )****Wave Systems** (NASDAQ: [WAVX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WAVX&selected=WAVX) ) produces products for hardware-based digital security. These products are normally used in identity protection, data security, digital signatures, electronic transaction integrity and network security. Since last October, WAVX has skyrocketed 173.5%. Wave has a market cap of just $183 million, but is a penny stock worth a closer look based on its recent performance. **Zix ([ZIXI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ZIXI&selected=ZIXI)) )**Headquartered in Dallas, **Zix** (NASDAQ: [ZIXI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ZIXI&selected=ZIXI) ) is an e-mail encryption service. Its service is used in the health care, financial services, insurance and government sectors. Year-to-date, ZIXI stock has jumped 60.8%. The rally is part of a larger trend, in which the stock is up 37.5% over the past five years. Last quarter, Zix reported a net profit margin of 16.4%. Trading at $2.75, ZIXI is an inexpensive stock worth buying, based on its short-term and long-term performance. **Microtune (TUNE** )**Microtune** (NASDAQ: [TUNE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TUNE&selected=TUNE) ) is known for its receiver solutions for cable, automotive entertainment electronics and digital television markets. TUNE has had an up-and-down 2010, but thanks to a strong September showing, is up 28.1% year-to-date. In September, the stock climbed 27.2%, thanks in part to the announcement by Zoran ([ZRAN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ZRAN&selected=ZRAN)) ) that it was planning on purchasing Microtune for $166 million. TUNE stock currently trades at $2.89. **Westell Technologies ([WSTL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WSTL&selected=WSTL)) )**Based in Illinois, **Westell Technologies** (NASDAQ: [WSTL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WSTL&selected=WSTL) ) is a holding company divided into the following segments: customer network solutions equipment, outside plant systems equipment and conference plus services. Its subsidiary Westell provides telecommunications products to telephone companies. Year-to-date, WSTL stock is up 90.8%, and the penny stock reported a net profit margin of 11.2% in its last income statement. Finally, WSTL has outperformed earnings estimates for three consecutive quarters, making it a penny stock worth buying. **ChipMOS Technologies ([IMOS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IMOS&selected=IMOS)) )****ChipMOS Technologies** (NASDAQ: [IMOS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IMOS&selected=IMOS) ) provides its clients back-end testing services, including engineering testing, wafer probing and final testing of memory and logic/mixed-signal semiconductors. Since January, the penny stock has gained 94.4%, compared to small gains by the broader markets. Earlier in the year, the stock was trading at just 60 cents a share, and now trades at $1.37. A strong showing in September shows that this is an affordable stock worth scooping up. **RAE Systems ([RAE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RAE&selected=RAE)) )****RAE Systems** (AMEX: [RAE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RAE&selected=RAE) ) develops and manufactures multi-sensor chemical and radiation monitors as well as wireless networks. RAE saw a huge increase in mid-September, and the stock is up 43.6% year-to-date. The stock spike occurred after it was announced that the penny stock would be acquired by a subsidiary of Battery Ventures. A quarterly revenue growth year-over-year of 17% is another reason to buy this tech stock. **Magic Software Enterprises ([MGIC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MGIC&selected=MGIC)) )****Magic Software Enterprises** (NASDAQ: [MGIC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MGIC&selected=MGIC) ) develops, markets, sells and supports an application platform for its clients across the globe. Over the past 12 months, MGIC stock has climbed an impressive 46.9%. The biggest jump for the stock came in March when the company signed two new partners in Germany. Over the past five years, MGIC stock is up nearly 58%, proving that this penny stock has been valuable in the long run. **Top 5 Stocks for the 4th Quarter Surge**. Louis Navellier details five stocks set to deliver record earnings and jump 30%-50% in the next 90 days as the big money piles in. [Get their names online here,](http://www.investorplace.com/order/?sid=FG4146) including Louis' buy-below and target prices.
Stock Price 4 days before: 2.56
Stock Price 2 days before: 2.57077
Stock Price 1 day before: 2.60053
Stock Price at release: 2.59534
Risk-Free Rate at release: 0.0015
| 3.34932 |
Symbol: ODP
Security: The ODP Corporation
Related Stocks/Topics: Markets|WMT|SMB|SCSC
Title: 3 Stocks for the Small Business Rebound
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-08 02:38:00
Article: Voters across the political spectrum can agree on at least one thing: the long-term health of the U.S. [economy](http://investinganswers.com/term/economy-1517) absolutely depends on jobs being created by the private sector. So Friday's report that 64,000 private sector jobs were created is a hopeful sign, though clearly not enough.The chart below shows the depth of pain being experienced by small businesses. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) -- David StermanBut even as Friday's jobs report may not yet signal a big upturn in hiring, a few other items in the news on Friday suggest that the private sector may create higher amounts of new jobs in the months ahead.First, the Treasury Department has just announced plans to provide states with $1.5 billion to help promote small business job creation. States have to prove that the funds are being matched with much higher levels of bank lending, so the whole economic boost is hoped to be closer to $15 billion. And just last week, the Small Business Jobs Act went into effect, creating a $30 billion small business lending fund for community banks and offering tax cuts for small businesses.Those efforts may help a trend that is already underway, if little-known **ScanSource (Nasdaq: SCSC)** is any indication. This company sells a range of telephone, barcode scanning and point-of-sale equipment to small and medium-sized businesses. Large companies buy these wares direct from the manufacturer. Thousands of smaller companies need to go through middlemen like ScanSource. At the end of every quarter, the company discusses recent sales trends -- and right now, business is doing quite well.Sales in the first fiscal quarter rose to around $625 million from $488 million a year ago, well ahead of the $567 million consensus forecast. That's pushing shares up +7%, close to a 52-week high, which makes me hesitant to recommend shares of ScanSource in particular. But it's a clear sign that other companies selling into the small and mid-sized business ([SMB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SMB&selected=SMB)) ) sector have increasing reason to cheer. Here are three names I like as SMB plays: **Office Depot ([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) )**The tough economic environment has been brutal for this office supply chain. Adding insult, rival **Staples (Nasdaq: SPLS)** has been a far more nimble player, stealing away [market share](http://investinganswers.com/term/market-share-778) . Office Depot's stock has fallen from $35 in 2006 to a recent $4.50, but as I noted recently, that seems like too deep of a punishment. [ [Read more on why I like Office Depot here](http://www.streetauthority.com/news/insiders-are-scooping-these-3-retail-stocks-456549) ]Make no mistake, Office Depot has its work cut out for it. The retailer needs to further pare debt, figure out a way to retake market share, even as firms like **Walmart ([WMT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WMT&selected=WMT)) )** step onto its turf, and weather the effects of the downbeat economies in Florida and California, where the store base is heavily concentrated. But I'm heartened by recent insider buying, improving [working capital](http://investinganswers.com/term/working-capital-869) metrics, very cheap valuations and, as noted above, a possible strengthening in the SMB sector. And as [I noted in this article](http://%20http//www.streetauthority.com/news/little-goes-long-way-sector-456335) , retailers only need to show modest sales gains to post outsized [cash flow](http://investinganswers.com/term/cash-flow-1175) gains. **Mitel Networks (Nasdaq: MITL)**This $14 [IPO](http://investinganswers.com/term/initial-public-offering-ipo-1076) is now a $6 busted [IPO](http://investinganswers.com/term/going-public-456) . Shares are now quite cheap, trading for less than seven times projected fiscal (April) 2012 profits. The dead-on-arrival IPO came public in the wrong year, as it's a play on the SMB sector, which up until now, has been in a funk. Mitel sells phone systems and usually sees demand when companies are hiring, with new desk set-ups. But even with sales at depressed levels, Mitel can still be counted on to earn $0.75 to $0.90 a share. If SMB spending really picks up, per share profits could exceed $1. **Vistaprint (Nasdaq: VPRT)**The big slowdown in SMB spending really hurt this company, which provides printing and marketing services to companies that are too small to handle their printing needs on an in-house basis. Shares plunged in early August, which looked to me to be a severe over-reaction. [Read: [Panic Selling](http://investinganswers.com/term/panic-selling-612) Creates Potential for +35% Gains . . . At Least]Analysts at Kaufman Bros. see shares rebounding back from a recent $37 to $50 as the company's sales problems this summer prove to be short-lived. "Vistaprint is currently facing a perfect storm, with small business weakness, adverse (foreign exchange) impact and recent execution issues. We note that all these factors are temporary, and should reverse themselves in the future," notes Kaufman's analysts. They predict that shares, which currently trade for 13 times next year's profits, will trade up to a price-to-earnings (P/E) multiple of 20 once these near-term concerns abate. **Action to Take -->** Spending at small businesses is likely to rebound only slowly into 2011 and perhaps more robustly into 2012. But investors need to look ahead, and these stocks could start to appreciate handsomely, simply on the expectation that SMB spending will eventually rebound -- and the three stocks I mentioned above are good places to start.[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 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: 4.52388
Stock Price 2 days before: 4.52351
Stock Price 1 day before: 4.53436
Stock Price at release: 4.45608
Risk-Free Rate at release: 0.0014
| 4.69368 |
Symbol: SCSC
Security: ScanSource, Inc.
Related Stocks/Topics: ODP|Markets|WMT|SMB
Title: 3 Stocks for the Small Business Rebound
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-08 02:38:00
Article: Voters across the political spectrum can agree on at least one thing: the long-term health of the U.S. [economy](http://investinganswers.com/term/economy-1517) absolutely depends on jobs being created by the private sector. So Friday's report that 64,000 private sector jobs were created is a hopeful sign, though clearly not enough.The chart below shows the depth of pain being experienced by small businesses. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) -- David StermanBut even as Friday's jobs report may not yet signal a big upturn in hiring, a few other items in the news on Friday suggest that the private sector may create higher amounts of new jobs in the months ahead.First, the Treasury Department has just announced plans to provide states with $1.5 billion to help promote small business job creation. States have to prove that the funds are being matched with much higher levels of bank lending, so the whole economic boost is hoped to be closer to $15 billion. And just last week, the Small Business Jobs Act went into effect, creating a $30 billion small business lending fund for community banks and offering tax cuts for small businesses.Those efforts may help a trend that is already underway, if little-known **ScanSource (Nasdaq: SCSC)** is any indication. This company sells a range of telephone, barcode scanning and point-of-sale equipment to small and medium-sized businesses. Large companies buy these wares direct from the manufacturer. Thousands of smaller companies need to go through middlemen like ScanSource. At the end of every quarter, the company discusses recent sales trends -- and right now, business is doing quite well.Sales in the first fiscal quarter rose to around $625 million from $488 million a year ago, well ahead of the $567 million consensus forecast. That's pushing shares up +7%, close to a 52-week high, which makes me hesitant to recommend shares of ScanSource in particular. But it's a clear sign that other companies selling into the small and mid-sized business ([SMB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SMB&selected=SMB)) ) sector have increasing reason to cheer. Here are three names I like as SMB plays: **Office Depot ([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) )**The tough economic environment has been brutal for this office supply chain. Adding insult, rival **Staples (Nasdaq: SPLS)** has been a far more nimble player, stealing away [market share](http://investinganswers.com/term/market-share-778) . Office Depot's stock has fallen from $35 in 2006 to a recent $4.50, but as I noted recently, that seems like too deep of a punishment. [ [Read more on why I like Office Depot here](http://www.streetauthority.com/news/insiders-are-scooping-these-3-retail-stocks-456549) ]Make no mistake, Office Depot has its work cut out for it. The retailer needs to further pare debt, figure out a way to retake market share, even as firms like **Walmart ([WMT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WMT&selected=WMT)) )** step onto its turf, and weather the effects of the downbeat economies in Florida and California, where the store base is heavily concentrated. But I'm heartened by recent insider buying, improving [working capital](http://investinganswers.com/term/working-capital-869) metrics, very cheap valuations and, as noted above, a possible strengthening in the SMB sector. And as [I noted in this article](http://%20http//www.streetauthority.com/news/little-goes-long-way-sector-456335) , retailers only need to show modest sales gains to post outsized [cash flow](http://investinganswers.com/term/cash-flow-1175) gains. **Mitel Networks (Nasdaq: MITL)**This $14 [IPO](http://investinganswers.com/term/initial-public-offering-ipo-1076) is now a $6 busted [IPO](http://investinganswers.com/term/going-public-456) . Shares are now quite cheap, trading for less than seven times projected fiscal (April) 2012 profits. The dead-on-arrival IPO came public in the wrong year, as it's a play on the SMB sector, which up until now, has been in a funk. Mitel sells phone systems and usually sees demand when companies are hiring, with new desk set-ups. But even with sales at depressed levels, Mitel can still be counted on to earn $0.75 to $0.90 a share. If SMB spending really picks up, per share profits could exceed $1. **Vistaprint (Nasdaq: VPRT)**The big slowdown in SMB spending really hurt this company, which provides printing and marketing services to companies that are too small to handle their printing needs on an in-house basis. Shares plunged in early August, which looked to me to be a severe over-reaction. [Read: [Panic Selling](http://investinganswers.com/term/panic-selling-612) Creates Potential for +35% Gains . . . At Least]Analysts at Kaufman Bros. see shares rebounding back from a recent $37 to $50 as the company's sales problems this summer prove to be short-lived. "Vistaprint is currently facing a perfect storm, with small business weakness, adverse (foreign exchange) impact and recent execution issues. We note that all these factors are temporary, and should reverse themselves in the future," notes Kaufman's analysts. They predict that shares, which currently trade for 13 times next year's profits, will trade up to a price-to-earnings (P/E) multiple of 20 once these near-term concerns abate. **Action to Take -->** Spending at small businesses is likely to rebound only slowly into 2011 and perhaps more robustly into 2012. But investors need to look ahead, and these stocks could start to appreciate handsomely, simply on the expectation that SMB spending will eventually rebound -- and the three stocks I mentioned above are good places to start.[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 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: 28.0417
Stock Price 2 days before: 28.891
Stock Price 1 day before: 28.0913
Stock Price at release: 30.5497
Risk-Free Rate at release: 0.0014
| 29.8211 |
Symbol: FDP
Security: Fresh Del Monte Produce Inc.
Related Stocks/Topics: Markets
Title: Family Dollar Downgraded to "Market Perform" at Wells Fargo (FDO)
Type: News
Publication: Dividend.com
Publication Author: Unknown
Date: 2010-10-08 08:51:00
Article: Discount retailer Family Dollar Stores, Inc.([FDO](http://www.dividend.com/dividend-stocks/services/discount-variety-stores/fdo-family-dollars-stores/)) ) on Friday saw its rating and valuation range cut by analysts at Wells Fargo.The firm downgraded FDO from "Outperform" to "Market Perform" and lowered its Valuation Range from $48-$52 to $47-$51. Family Dollar stock closed at $46.27 on Thursday. A Wells Fargo analyst commented, "We are bullish on the dollar store sector in general which will likely take additional share from the drug store, convenience, and grocery channels. In our view, however, this opportunity is already well understood by the Street and reflected in FDO's current stock price. We believe the company will need to deliver very strong financial results to drive stock outperformance from here."Family Dollar shares fell 30 cents, or -0.7%, in premarket trading Friday. **The Bottom Line** Shares of FDO have a 1.34% dividend yield, based on last night's closing stock price of $46.27. The stock has technical support in the $42 price area. The shares are trading near all-time highs and have little in the way of overhead resistance.Family Dollar Stores, Inc.([FDO](http://www.dividend.com/dividend-stocks/services/discount-variety-stores/fdo-family-dollars-stores/)) ) 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: 21.717
Stock Price 2 days before: 21.8102
Stock Price 1 day before: 21.9714
Stock Price at release: 21.8282
Risk-Free Rate at release: 0.0014
| 22.3032 |
Symbol: ZUMZ
Security: Zumiez Inc.
Related Stocks/Topics: Markets|BKE
Title: Shopping for a Bargain in Premium Apparel
Type: News
Publication: Wyatt Investment Research
Publication Author: Unknown
Date: 2010-10-08 10:58:00
Article: Have you seen the new movie "The Social Network" yet? It's a look at how Harvard dropout Mark Zuckerberg built Facebook into the phenomenon that it has become in just a few short years. Facebook remains privately held, so only Zuckerberg and his closest associates reap the profits as the company adds users.But the movie serves as a jumping-off point for profitable investing strategies arising from the youth culture. As a [Forbes blog](http://www.forbes.com/2010/09/22/google-cisco-disney-intelligent-investing-microsoft_3.html) recently noted, there are several hot stocks that are tied to the trendy social networking boom. Gen-Xers are especially interested in looking good (let's face it, who isn't!), and staying current with the latest fashion trends. And those trend-setting millennials often share a kindred spirit with those of us looking at small-caps. They look below the surface of the big chains for the hippest fashions, the stuff that shoppers don't find in Abercrombie & Fitch, Old Navy or Gap stores.The release of September retail sales brought better-than-expected numbers for a few retailers and apparel makers that I'm watching. With the holidays rapidly approaching, this back-to-school sales report could help show us if consumers are feeling a little more confident about the economy and are willing to spend again.Let's start with **Buckle Inc. ([BKE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BKE&selected=BKE)) )** , which has 421 stores in 41 states. Same-store sales rose a surprising 3 percent, much better than the 4.7 percent drop that analysts were expecting. Buckle's stock was up double-digits after the report, but investors sometimes have very short attention spans.Back in September, Buckle's stock sank 8% because of a dividend disappointment. Just a few weeks ago, the company kept its quarterly dividend at 20 cents, and did not commit to paying out a special dividend that was announced around the same time in 2009. Still, the company is sitting on about $93 million in cash, so it could announce another special payout soon. Shares hit a 52-week low of $23 in late August, and the stock is struggling to rebound.Another teen-focused retailer, **Hot Topic (Nasdaq: HOTT)** said its monthly same-store sales fell 2.5 percent. That was better than the 3.5 percent drop that analysts expected. The company is paying a $0.07 dividend on November 1 to shareholders of record on October 18. **The Wet Seal (Nasdaq: WTSLA)** , which has 500 stores in 47 states, just said it's expecting higher-than-expected third-quarter earnings, at the high end of its guidance of a range of a penny to 3 pennies a share. Analyst expectations were smack-dab in the middle, at 2 cents.The September retail report also brings **Zumiez (Nasdaq: ZUMZ)** to our attention. Monthly same-store sales were up a robust 17 percent and the company, which focuses on active-lifestyle apparel, increased its earnings per share guidance from $0.25 - $0.27, to $0.28 - $0.30.With **Pacific Sunwear (Nasdaq: PSUN)** , which operates 900 stores across the U.S., analysts have mostly taken a wait-and-see attitude. Most rate the Southern California-based teen retailer a hold.This brings us back to the Forbes blog I mentioned - and to a small-cap apparel maker that I really like. The company is **Joe's Jeans (Nasdaq: JOEZ).** If you're under 30, think like a millennial, or have kids, there's a good chance that you know about Joe's. The company's body-hugging jeans and other premium apparel are sold at some 1,200 U.S. stores.A year ago, shares of Joe's were selling for less than 70 cents, and today they're sticking around $2. The stock could still prove to be a bargain if the company keeps turning out the stuff that teens and college kids crave. What sets Joe's apart from other companies catering to the youth market is its marketing strategy. Joe's uses social media in ways that few of its competitors are, and with the onset of the Facebook generation, networking and apparel go hand-in-hand.Only a few analysts are covering Joe's, and one has it as a buy, the other as a strong buy.Why do I think Joe's Jeans is undervalued? Take a look at some of the key metrics. Sales have grown year-over-year by 37%. It carries a forward earnings multiple of 20. It has turned a profit for the past three years. And it has already generated a one-year return of 193% for savvy investors.One other interesting tidbit: Joe's is opening its own branded stores, so fans can shop for The Jeans, The T, The Pant, The Shoe, The Bag, The Belt and The Shirt in one place. Two Joe's stores opened in Philadelphia and Southern California in the last two months. While there are no promises that it'll catch fire like Apple's retail storefronts did, it's an interesting move for Joe's - especially at a time when shopping venues are begging for tenants to fill vacant space.This interesting little company is one to keep an eye on, and shares have the potential to leap higher as more Gen-Xers jump into the company's jeans. A full analysis of Joe's Jeans is included in a Special Report that I've prepared on three recent additions to the Russell Small Cap Index - a small cap compendium of hidden gems just waiting to be unearthed by savvy investors. The Special Report is available by [clicking here](http://pro.smallcapinvestor.com/landing/top52010/scilandtop5rylesci.htm) and signing up for a risk-free trial subscription to Small Cap Investor PRO .Joe's Jeans reports earnings next week - I'll be covering the announcement for subscribers to Small Cap Investor PRO . Let me know what you think of Joe's Jeans, and my Russell Special Report, by sending an email to [[email protected]](mailto:[email protected])
Stock Price 4 days before: 21.3797
Stock Price 2 days before: 22.2621
Stock Price 1 day before: 24.2976
Stock Price at release: 24.9623
Risk-Free Rate at release: 0.0014
| 28.1634 |
Symbol: BKE
Security: The Buckle, Inc.
Related Stocks/Topics: ZUMZ|Markets
Title: Shopping for a Bargain in Premium Apparel
Type: News
Publication: Wyatt Investment Research
Publication Author: Unknown
Date: 2010-10-08 10:58:00
Article: Have you seen the new movie "The Social Network" yet? It's a look at how Harvard dropout Mark Zuckerberg built Facebook into the phenomenon that it has become in just a few short years. Facebook remains privately held, so only Zuckerberg and his closest associates reap the profits as the company adds users.But the movie serves as a jumping-off point for profitable investing strategies arising from the youth culture. As a [Forbes blog](http://www.forbes.com/2010/09/22/google-cisco-disney-intelligent-investing-microsoft_3.html) recently noted, there are several hot stocks that are tied to the trendy social networking boom. Gen-Xers are especially interested in looking good (let's face it, who isn't!), and staying current with the latest fashion trends. And those trend-setting millennials often share a kindred spirit with those of us looking at small-caps. They look below the surface of the big chains for the hippest fashions, the stuff that shoppers don't find in Abercrombie & Fitch, Old Navy or Gap stores.The release of September retail sales brought better-than-expected numbers for a few retailers and apparel makers that I'm watching. With the holidays rapidly approaching, this back-to-school sales report could help show us if consumers are feeling a little more confident about the economy and are willing to spend again.Let's start with **Buckle Inc. ([BKE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BKE&selected=BKE)) )** , which has 421 stores in 41 states. Same-store sales rose a surprising 3 percent, much better than the 4.7 percent drop that analysts were expecting. Buckle's stock was up double-digits after the report, but investors sometimes have very short attention spans.Back in September, Buckle's stock sank 8% because of a dividend disappointment. Just a few weeks ago, the company kept its quarterly dividend at 20 cents, and did not commit to paying out a special dividend that was announced around the same time in 2009. Still, the company is sitting on about $93 million in cash, so it could announce another special payout soon. Shares hit a 52-week low of $23 in late August, and the stock is struggling to rebound.Another teen-focused retailer, **Hot Topic (Nasdaq: HOTT)** said its monthly same-store sales fell 2.5 percent. That was better than the 3.5 percent drop that analysts expected. The company is paying a $0.07 dividend on November 1 to shareholders of record on October 18. **The Wet Seal (Nasdaq: WTSLA)** , which has 500 stores in 47 states, just said it's expecting higher-than-expected third-quarter earnings, at the high end of its guidance of a range of a penny to 3 pennies a share. Analyst expectations were smack-dab in the middle, at 2 cents.The September retail report also brings **Zumiez (Nasdaq: ZUMZ)** to our attention. Monthly same-store sales were up a robust 17 percent and the company, which focuses on active-lifestyle apparel, increased its earnings per share guidance from $0.25 - $0.27, to $0.28 - $0.30.With **Pacific Sunwear (Nasdaq: PSUN)** , which operates 900 stores across the U.S., analysts have mostly taken a wait-and-see attitude. Most rate the Southern California-based teen retailer a hold.This brings us back to the Forbes blog I mentioned - and to a small-cap apparel maker that I really like. The company is **Joe's Jeans (Nasdaq: JOEZ).** If you're under 30, think like a millennial, or have kids, there's a good chance that you know about Joe's. The company's body-hugging jeans and other premium apparel are sold at some 1,200 U.S. stores.A year ago, shares of Joe's were selling for less than 70 cents, and today they're sticking around $2. The stock could still prove to be a bargain if the company keeps turning out the stuff that teens and college kids crave. What sets Joe's apart from other companies catering to the youth market is its marketing strategy. Joe's uses social media in ways that few of its competitors are, and with the onset of the Facebook generation, networking and apparel go hand-in-hand.Only a few analysts are covering Joe's, and one has it as a buy, the other as a strong buy.Why do I think Joe's Jeans is undervalued? Take a look at some of the key metrics. Sales have grown year-over-year by 37%. It carries a forward earnings multiple of 20. It has turned a profit for the past three years. And it has already generated a one-year return of 193% for savvy investors.One other interesting tidbit: Joe's is opening its own branded stores, so fans can shop for The Jeans, The T, The Pant, The Shoe, The Bag, The Belt and The Shirt in one place. Two Joe's stores opened in Philadelphia and Southern California in the last two months. While there are no promises that it'll catch fire like Apple's retail storefronts did, it's an interesting move for Joe's - especially at a time when shopping venues are begging for tenants to fill vacant space.This interesting little company is one to keep an eye on, and shares have the potential to leap higher as more Gen-Xers jump into the company's jeans. A full analysis of Joe's Jeans is included in a Special Report that I've prepared on three recent additions to the Russell Small Cap Index - a small cap compendium of hidden gems just waiting to be unearthed by savvy investors. The Special Report is available by [clicking here](http://pro.smallcapinvestor.com/landing/top52010/scilandtop5rylesci.htm) and signing up for a risk-free trial subscription to Small Cap Investor PRO .Joe's Jeans reports earnings next week - I'll be covering the announcement for subscribers to Small Cap Investor PRO . Let me know what you think of Joe's Jeans, and my Russell Special Report, by sending an email to [[email protected]](mailto:[email protected])
Stock Price 4 days before: 26.3563
Stock Price 2 days before: 26.3118
Stock Price 1 day before: 29.2583
Stock Price at release: 30.2332
Risk-Free Rate at release: 0.0014
| 33.772 |
Symbol: SBH
Security: Sally Beauty Holdings, Inc.
Related Stocks/Topics: ROST|Markets|DLTR|AAP|OLN|DEO|AZO
Title: What Buffett Says About Diversification Will Shock You
Type: News
Publication: Unknown
Publication Author: Unknown
Date: 2010-10-10 04:31:00
Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photoWorking for StreetAuthority, I do a lot of different things. In the course of a day, I may be writing an article... editing a newsletter... discussing potential picks with our staff... researching the next investing hotspot... even going over article ideas with [Bob Bogda](http://www.streetauthority.com/users/bob-bogda) , our managing editor.And with so much going on, I actually find myself a little frazzled as the day goes on.To combat this, I've started getting to work about an hour earlier than the rest of the staff. I don't do this to show off, but found I can do more in that one hour (when I can simply focus on one task without distraction) than I could in two hours when the rest of the staff has the office buzzing.Turning off the background noise allowed me to simplify things -- and get better results.What does this have to do with investing? A ton. **Whydiversification is like drinking from a fire hose** Sometimes the investing waters are as clear as mud to retail investors. After all, there are literally thousands of potential plays out there. You could try to play a rebound in the automakers. You could day-trade the banks. You could stick with index funds and ride out any storm. You could even try to find companies that are simply undervalued and will rebound once the market notices.But the problem is that there are too many options -- it's like trying to drink from a fire hose. Too many choices make it hard to nail down the one investment that will make your portfolio a winner.Instead, like I do every morning by getting an early start, I think successful investors need to turn off the distractions and focus their attention on a small group of the best ideas... drink from a glass, instead of a fire hose.By shrinking your portfolio, you'll find: - It's easier to stay on top of your investments -- If you have a portfolio of 50 stocks, how well can you pay attention to each one? Even if you read up on each one just an hour each week, you'd have a full-time job (plus 10 hours of overtime) just to give each its due.And with this market, it's more important than ever to watch your holdings. Instead, a portfolio of just 10-12 of your best picks would need significantly less time to track each week and you'll likely sleep better at night knowing you've done your homework. (bullet) Better portfolio performance -- Which do you think would average higher on a test: an entire class full of students, or a handful of the smartest students as picked by the teacher?The answer is obvious... and it's the same with your portfolio.Look through your holdings. If you have upwards of 30, 40, even 50 holdings or more, I bet you'll find some that you think are simply "OK." It wouldn't even surprise me if you have some you don't even like but simply haven't sold yet.Instead, what if you culled down your portfolio to just your favorite picks? Wouldn't your portfolio be in much better shape going forward? You'd have the cream of the crop, instead of the entire field. Remember, it's hard to outperform the market if your portfolio is the market. - That you're not alone in trimming down your portfolio -- Warren Buffett's **Berkshire Hathaway (NYSE: BRK-B)** holds just 37 positions. That's a lot for an individual investor, but for a company with billions of dollars at its disposal, it's surprisingly few. On top of that, in the past 25 years, Berkshire's top five holdings have made up an average of 73% of its portfolio. Buffett is simply a proponent for positioning a portfolio to take advantage of the best picks. He's even gone as far as saying: "If it's your game, [diversification](http://investinganswers.com/term/diversification-342) doesn't make sense. It's crazy to put money into your 20th choice rather than your 1st choice. It's the 'LeBron James' analogy. If you have LeBron James on your team, don't take him out of the game just to make room for someone else."If the world's greatest investor is following this approach, shouldn't other investors?**That's what I'm doing with $100,000**Warren Buffett's school of thought is one of the main tenets of my [Stock of the Month](http://web.streetauthority.com/m/som/j/0910-analyst-sample-sa.asp?TC=SMA628) newsletter, and its $100,000 real-money portfolio. Think about it -- our [economy](http://investinganswers.com/term/economy-1517) and the markets still continue to run hot and cold. Investors are still skittish about unemployment, interest rates, housing... the list goes on.But no matter what's happening, there are always some stocks doing well. And if you focus on a select group of your best picks, you can profit.Companies that cater to tougher economic times have done well. **Ross Stores (Nasdaq: ROST)** is up +121% since 2008... **Dollar Tree (Nasdaq: DLTR)** is up +182%. Auto-parts stores (critical, as drivers are keeping cars longer) are the same story: **Advance Auto Parts ([AAP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AAP&selected=AAP)) )** is up +57%... **AutoZone ([AZO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AZO&selected=AZO)) )** is up +90%. One of the best performers in my newsletter, **Olin Corp. ([OLN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OLN&selected=OLN)) )** gained +58% in about a year before I closed the position. **Sally Beauty Supply ([SBH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SBH&selected=SBH)) )** had the same return. Liquor distributor **Diageo ([DEO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DEO&selected=DEO)) )** gained +34%. And these returns have been during what can at best be described as a "rocky" environment.[I'm very open with my closed [Stock of the Month](http://web.streetauthority.com/m/som/j/0910-analyst-sample-sa.asp?TC=SMA628) positions. [You can view them all here](http://web.streetauthority.com/som/port/closed/som.htm) .]**Action to Take -->** I understand that years of conditioning has led millions of investors to think diversification is crucial to success. And it is, if you want to simply match the market. But that's not what I, nor Warren Buffett, want to do. I doubt you do either.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- Amy CalistriA graduate of both Columbia University and The University of Texas, Amy's experience includes managing $5 million in trust funds, economic consulting and financial risk management. Read more... Disclosure: Neither Amy Calistri 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: 11.2024
Stock Price 2 days before: 11.2809
Stock Price 1 day before: 11.3916
Stock Price at release: 11.347
Risk-Free Rate at release: 0.0014
| 12.7764 |
Symbol: GCI
Security: Gannett Co., Inc.
Related Stocks/Topics: Markets
Title: Bulls target Gannett before earnings
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-10-11 01:13:00
Article: Gannett is ripping higher, and traders are looking for more upside ahead of the company's earnings report at the end of this week.Our Heat Seeker tracking system detected a surge of call buying in the heavily shorted newspaper company, best known for publishing USA Today. Overall option volume in the name is 9 times greater than average, with calls accounting for a bullish 85 percent of the activity. [GCI ](http://www.optionmonster.com/cms/commentary/images/gci1011.png) The October 13s were the most active strike, changing hands 7,052 times against open interest of 1,588 contracts. Most of the trades went for $0.45, but the price of those calls more than doubled to over $1 by the end of the session.GCI closed Friday up 8.02 percent to $13.60. It lost about one-third of its value between late April and late August but has found support around $12 since then. The company has been struggling with a long-term decline in newspaper readership but more recently has showed signs of recovery as advertising rebounds.Short interest represented a hefty 14 percent of the float as of mid-September, so forced buying could also propel the shares higher. Friday's call buying may result from new investors looking to get long or from bears hedging their bets against the stock.The next scheduled event that could serve as a potential catalyst for GCI is the release of third-quarter earnings before the market opens on Friday.(A version of this post appeared on InsideOptions on Friday. Chart courtesy of tradeMONSTER.) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 12.4947
Stock Price 2 days before: 13.6377
Stock Price 1 day before: 13.5879
Stock Price at release: 13.588
Risk-Free Rate at release: 0.0014
| 12.6616 |
Symbol: CSIQ
Security: Canadian Solar Inc.
Related Stocks/Topics: GPN|Markets|INTC|IMGN|GOOG|JPM|NVS
Title: Opening View: DJIA Looks to Solidify Hold on 11K as Earnings Season Ramps Up
Type: News
Publication: Schaeffer
Publication Author: Unknown
Date: 2010-10-11 07:56:00
Article: After closing above the 11,000 level for the first time since May, the Dow Jones Industrial Average (DJIA) appears to be headed higher once again this morning. In fact, futures on the DJIA and the S&P 500 Index (SPX) are trading roughly 19 points and 2 points above fair value, respectively. With the first full week of third-quarter earnings season upon us, Wall Street is turning its attention to corporate quarterly reports. While there are no major reports slated for today, Intel Corp. ([INTC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INTC&selected=INTC)) ), JPMorgan Chase & Co. ([JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM)) ), and Google Inc. ([GOOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GOOG&selected=GOOG)) ) are just a few of the heavy hitters preparing to step into the limelight later this week. Looking at technical levels, the DJIA has tentative support at 11,000, with more solid footing at 10,900. Resistance could emerge near 11,150. As for the SPX, 1,170 could emerge as a ceiling, with 1,150 providing key support.In equity news, LDK Solar Co., ([LDK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LDK&selected=LDK)) ) lifted its third-quarter revenue shipments estimates. The company now expects revenue of $610 million to $640 million, versus its prior view for $570 million to $600 million. Wall Street is looking for $568.3 million in revenue for the quarter. Wafer shipments should total 550 megawatts to 570 megawatts, the company said, compared with its previous estimate of 520 megawatts to 550 megawatts. Module shipments, meanwhile, should reach 80 megawatts to 90 megawatts, above prior guidance for 75 megawatts to 85 megawatts. Also in the solar sector, Canadian Solar Inc., ([CSIQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CSIQ&selected=CSIQ)) ) named Andrew Chen as chief financial officer. The company also affirmed its third-quarter and 2010 outlooks. For the quarter, CSIQ said that it would ship 190 megawatts to 200 megawatts at a gross-profit margin of 14.5% to 15.5%. For fiscal 2010, Canadian Solar estimates that shipments reached the middle to the high end of its earlier estimate of 700 megawatts to 800 megawatts.Finally, ImmunoGen Inc. ([IMGN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IMGN&selected=IMGN)) ) said it expects to report a net loss of between $60 million and $64 million for the fiscal year. The firm also announced that Novartis AG ([NVS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NVS&selected=NVS)) ) will pay it $45 million, with potential milestone and royalty payments, to license its targeted antibody payload technology. Separately, IMGN said that an early-stage clinical trial of its lorvotuzumab mertansine anticancer compound showed encouraging early data, with 29% of patients showing a reduction of tumor volume and 22% showing no discernible increase. **Earnings Preview** On the earnings front, Global Payments Inc. ([GPN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GPN&selected=GPN)) ) will release its quarterly 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 today, while the Fed's Federal Open Market Committee will release the minutes of its most recent meeting on Tuesday. On Wednesday, we'll get September import and export data, and the Treasury's budget numbers for September. Weekly initial jobless claims and the weekly report on U.S. petroleum supplies arrive on Thursday, along with the September producer price index and the August trade balance. Friday will be busy once again, with the September consumer price index, retail sales, the New York Fed's Empire State manufacturing index, and the University of Michigan's consumer sentiment index for October. **Market Statistics** Equity option activity on the CBOE saw 1,325,149 call contracts traded on Friday, compared to 817,937 put contracts. The resultant single-session put/call ratio arrived at 0.62, while the 21-day moving average held at 0.59. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/101011ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/101011ov2.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/2010/101011ov3.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 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 0.33%. Led by metals and mining stocks, Asian markets finished mostly higher, though Japan slipped roughly 1% as the yen continued to appreciate versus the U.S. dollar. In Hong Kong and mainland China, regional indexes rallied despite a Reuters report that China lifted banks' reserve requirements by half-a-percentage point to 17.5%. Across the pond in Europe, regional indexes rallied on hopes that the U.S. Federal Reserve and other central banks would step in to provide lift for the global economy. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/101011ov4.gif)**Currencies and Commodities** The U.S. dollar is treading water versus its major foreign competitors, as questions continue to surface regarding the future of U.S. monetary policy. With the greenback weakening versus the yen, and rising against the euro, the U.S. Dollar Index has added a mere 0.08% to trade at 77.25. Meanwhile, gold futures are trading modestly higher in London, adding $3.50 to $1,348.80 an ounce. Finally, crude futures are headed lower, slipping 20 cents to $82.46 per barrel. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/101011ov5.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/2010/101011ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/101011ov7.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: 15.3
Stock Price 2 days before: 15.377
Stock Price 1 day before: 15.7219
Stock Price at release: 15.8352
Risk-Free Rate at release: 0.0014
| 15.8916 |
Symbol: DIN
Security: Dine Brands Global, Inc.
Related Stocks/Topics: DLTR|Markets|DELL|BP|MSFT|UNG|SLV|BMY|JAZZ|NYT|GOOG|CRL|USO|NVS|GDX|GLD
Title: Mid-Day Update: Stocks Modestly Higher as Investors Look Ahead to Tomorrow's Fed Minutes
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-10-11 12:25:00
Article: Here's where markets stand at mid-day:-NYSE up 6.92 (+0.09%) to 7,485.34-DJIA up 12.48 (+0.11%) to 11,018.96-S&P 500 up 1.83 (+0.16%) to 1,166.98-Nasdaq up 7.91 (+0.33%) to 2,409.82GLOBAL SENTIMENTHang Seng up 1.15%Nikkei down 0.99%FTSE up 0.26%MID-DAY NYSE INDEX WATCHNYSE Energy up 0.20% at 11,198.04NYSE Financial down 0.04% at 4,796.06NYSE Health Care up 0.14% at 6,452.04NYSE Arca Tech 100 up 0.26% at 972.85UPSIDE MOVERS(+) NOK (+0.8%) rolls out new smartphone.(+) HRBN (+18.2%) gets $24 per share offer to go private.(+) LDK (+16.8%) boosts revenue view.(+) IMGN (+5.2%) reports encouraging clinical data for Lorvotuzumab Mertansine, raises cash guidance. (+) POT (+0.9%) reportedly working on breakup plan to ward off BHP Billitonbid.(+) SOLF (+5.4%) inks new contract.(+) EXEL (+2.8%) inks deal with Bristol-Myers ([BMY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BMY&selected=BMY)) ).(+) RVSN (+5.9%) inks deal with Microsoft ([MSFT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MSFT&selected=MSFT)) ).(+) BRCM (+3.2%) upgraded.(+) JAZZ (+4.9%) says FDA declines fibromyalgia drug.DOWNSIDE MOVERS(-) ALXA (-55.5%) tumbles as FDA says Adusuve not ready for approval.(-) VQ (-14.6%) cuts production.(-) CKSW (-4.7%) guides for revenue miss.MARKET DIRECTIONStocks are modestly higher in mid-day trading in a relatively quiet day due to the Columbus Day holiday closing Federal offices and bond trading. With no economic data due for the day, investors are left to take stock of the Dow's Friday closing above 11,000. Investors will be looking to the Federal Reserve Open Market Committee meeting minutes which will be released at 2pm EST Tuesday. There is a growing sense among Fed observers that the central bank will announce additional monetary stimulus following relatively disappointing employment numbers released last week.Deal news topped investor interest to begin the week.Gymboree ([GYMB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GYMB&selected=GYMB)) ) is trading sharply higher on news the company will be bought for $65.40 per share in cash by Bain Capital. The deal is valued at $1.8 billion. Under the deal, Gymboree shareholders will get $65.40 in cash for each share held. The makes the price a premium of 23.5 percent to the stock's Friday closing price.Also, retailer Dollar Tree ([DLTR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DLTR&selected=DLTR)) ) announced that it has signed a definitive agreement to purchase the assets of Canada's Dollar Giant Store in Dollar Tree's first expansion of its retail operations outside of the United States, according to a company statement. According to the detail, Dollar Tree will acquire 85 Dollar Giant stores including substantially all assets, inventory, leasehold rights and intellectual property for approximately $52 million (CAD) in cash, the statement said.DineEquity Inc ([DIN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DIN&selected=DIN)) ) is on the rise after it said it will sell 36 company-owned Applebee's Neighborhood Grill & Bar restaurants to Mid River Restaurants LLC for about $26 million after tax. The restaurant group which also operates IHOP expects the deal to close by the fourth quarter. The restaurants sold are based in Virginia, Missouri, and Illinois.In other Monday news, Microsoft Corp., ([MSFT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MSFT&selected=MSFT)) ) unveiled nine phone handsets that will run the Windows Phone 7 and will be available during the holiday season in Europe, North American and the Asia-Pacific region, according to a statement from the company. The phones are being made by HTC Corp. Dell Inc. ([DELL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DELL&selected=DELL)) ), Samsung Electronics and LG Electronics. The software on the phone arranges activities into tiles that update with new information, Bloomberg reported. Meanwhile, Google ([GOOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GOOG&selected=GOOG)) ) shares are higher following news the Internet search company has been experimenting with a car that drives itself. The company said its automated cars use video cameras, radar sensors and a laser range finder to "see" other traffic, according to the blog. "This is all made possible by Google's data centers, which can process the enormous amounts of information gathered by our cars when mapping their terrain," the company said.Elsewhere in the market, Afinitor, a kidney cancer drug made by Novartis AG ([NVS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NVS&selected=NVS)) ), did not meet the intended goal of a late-stage clinical trial, Bloomberg reported, citing researchers. The drug, combine with the company's Sandostatin drug, did not stop neuroendocrine tumors from growing, the report said.Shares of Jazz Pharmaceuticals, Inc. ([JAZZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JAZZ&selected=JAZZ)) ) are higher despite an announcement that the U.S. Food and Drug Administration (FDA) has sent the company a complete response letter ([CRL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CRL&selected=CRL)) ) regarding the company's New Drug Application (NDA) for JZP-6 (sodium oxybate) for the treatment of fibromyalgia.ATP Oil & Gas Corp. ([ATPG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ATPG&selected=ATPG)) ) said one of its deepwater wells in the Gulf of Mexico has begun producing at better-than-expected levels, reported Reuters. ATP said that its Mississippi Canyon 941 no. 3 well had made a production rate of over 7,000 barrels of oil a day, reported Reuters. In August, ATP had posted a worse-than-expected Q2 loss and said there would be project delays because of the drilling moratorium put in place by the federal; government following the BP Plc ([BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP)) ) oil spill earlier in the year.The New York Times Co. ([NYT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NYT&selected=NYT)) ) has made a strong advance following a report ahead of Q3 earnings that print advertising declines have been shrinking while digital revenue is posting double-digit growth after falling during the recession. Commodities are mixed as December gold contracts rose $4, or 0.28%, to $1,349 an ounce while November crude contacts are down 0.32%, or $0.23, at $82.43 a barrel.In energy ETFs, the United States Oil Fund ([USO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=USO&selected=USO)) ) is down $0.22, or 0.61% to $35.93 and the United States Natural Gas fund ([UNG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UNG&selected=UNG)) ) is down 0.70% to $5.79.In precious metal ETFs, the SPDR Gold Trust ([GLD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GLD&selected=GLD)) ) is up 0.11% to $131.81. Market Vectors Gold Miners ([GDX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GDX&selected=GDX)) ) is down 0.72% to $56.87. iShares Silver Trust ([SLV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLV&selected=SLV)) ) is down 0.09% to $22.71. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
Stock Price 4 days before: 46.1087
Stock Price 2 days before: 46.7307
Stock Price 1 day before: 46.872
Stock Price at release: 48.3398
Risk-Free Rate at release: 0.0014
| 50.4273 |
Symbol: DIN
Security: Dine Brands Global, Inc.
Related Stocks/Topics: DLTR|Markets|DELL|BP|MSFT|UNG|SLV|JAZZ|NYT|GOOG|CRL|USO|NVS|GDX|GLD
Title: U.S. Indexes Trade Modestly Higher, Extending Friday's Gains; Deals Top Market News
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-10-11 12:28:00
Article: Stocks are modestly higher in mid-day trading in a relatively quiet day due to the Columbus Day holiday closing Federal offices and bond trading. With no economic data due for the day, investors are left to take stock of the Dow's Friday closing above 11,000.Investors will be looking to the Federal Reserve Open Market Committee meeting minutes which will be released at 2pm EST Tuesday. There is a growing sense among Fed observers that the central bank will announce additional monetary stimulus following relatively disappointing employment numbers released last week. Deal news topped investor interest to begin the week.Gymboree ([GYMB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GYMB&selected=GYMB)) ) is trading sharply higher on news the company will be bought for $65.40 per share in cash by Bain Capital. The deal is valued at $1.8 billion. Under the deal, Gymboree shareholders will get $65.40 in cash for each share held. The makes the price a premium of 23.5 percent to the stock's Friday closing price.Also, retailer Dollar Tree ([DLTR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DLTR&selected=DLTR)) ) announced that it has signed a definitive agreement to purchase the assets of Canada's Dollar Giant Store in Dollar Tree's first expansion of its retail operations outside of the United States, according to a company statement. According to the detail, Dollar Tree will acquire 85 Dollar Giant stores including substantially all assets, inventory, leasehold rights and intellectual property for approximately $52 million (CAD) in cash, the statement said.DineEquity Inc ([DIN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DIN&selected=DIN)) ) is on the rise after it said it will sell 36 company-owned Applebee's Neighborhood Grill & Bar restaurants to Mid River Restaurants LLC for about $26 million after tax. The restaurant group which also operates IHOP expects the deal to close by the fourth quarter. The restaurants sold are based in Virginia, Missouri, and Illinois.In other Monday news, Microsoft Corp., ([MSFT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MSFT&selected=MSFT)) ) unveiled nine phone handsets that will run the Windows Phone 7 and will be available during the holiday season in Europe, North American and the Asia-Pacific region, according to a statement from the company. The phones are being made by HTC Corp. Dell Inc. ([DELL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DELL&selected=DELL)) ), Samsung Electronics and LG Electronics. The software on the phone arranges activities into tiles that update with new information, Bloomberg reported.Meanwhile, Google ([GOOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GOOG&selected=GOOG)) ) shares are higher following news the Internet search company has been experimenting with a car that drives itself. The company said its automated cars use video cameras, radar sensors and a laser range finder to "see" other traffic, according to the blog. "This is all made possible by Google's data centers, which can process the enormous amounts of information gathered by our cars when mapping their terrain," the company said. Elsewhere in the market, Afinitor, a kidney cancer drug made by Novartis AG ([NVS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NVS&selected=NVS)) ), did not meet the intended goal of a late-stage clinical trial, Bloomberg reported, citing researchers. The drug, combine with the company's Sandostatin drug, did not stop neuroendocrine tumors from growing, the report said.Shares of Jazz Pharmaceuticals, Inc. ([JAZZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JAZZ&selected=JAZZ)) ) are higher despite an announcement that the U.S. Food and Drug Administration (FDA) has sent the company a complete response letter ([CRL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CRL&selected=CRL)) ) regarding the company's New Drug Application (NDA) for JZP-6 (sodium oxybate) for the treatment of fibromyalgia.ATP Oil & Gas Corp. ([ATPG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ATPG&selected=ATPG)) ) said one of its deepwater wells in the Gulf of Mexico has begun producing at better-than-expected levels, reported Reuters. ATP said that its Mississippi Canyon 941 no. 3 well had made a production rate of over 7,000 barrels of oil a day, reported Reuters. In August, ATP had posted a worse-than-expected Q2 loss and said there would be project delays because of the drilling moratorium put in place by the federal; government following the BP Plc ([BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP)) ) oil spill earlier in the year.The New York Times Co. ([NYT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NYT&selected=NYT)) ) has made a strong advance following a report ahead of Q3 earnings that print advertising declines have been shrinking while digital revenue is posting double-digit growth after falling during the recession.Commodities are mixed as December gold contracts rose $4, or 0.28%, to $1,349 an ounce while November crude contacts are down 0.32%, or $0.23, at $82.43 a barrel. In energy ETFs, the United States Oil Fund ([USO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=USO&selected=USO)) ) is down $0.22, or 0.61% to $35.93 and the United States Natural Gas fund ([UNG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UNG&selected=UNG)) ) is down 0.70% to $5.79.In precious metal ETFs, the SPDR Gold Trust ([GLD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GLD&selected=GLD)) ) is up 0.11% to $131.81. Market Vectors Gold Miners ([GDX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GDX&selected=GDX)) ) is down 0.72% to $56.87. iShares Silver Trust ([SLV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLV&selected=SLV)) ) is down 0.09% to $22.71. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
Stock Price 4 days before: 46.1098
Stock Price 2 days before: 46.7307
Stock Price 1 day before: 46.872
Stock Price at release: 48.3119
Risk-Free Rate at release: 0.0014
| 50.4197 |
Symbol: LNN
Security: Lindsay Corporation
Related Stocks/Topics: Markets|DE|TSN|PPC
Title: Surging Commodities Have Created a Window of Opportunity
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-12 03:02:00
Article: Thanks to a confluence of events, prices for corn, soybeans and wheat have been surging recently. And that has set agricultural equipment stocks afire. Shares of irrigation equipment maker **Lindsay Manufacturing ([LNN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LNN&selected=LNN)) )** have surged more than +10% since last Thursday, while **Deere ([DE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DE&selected=DE)) )** has made a similar move since last Monday. The same can be said for many other sector names, a number of which now sport price-to-earnings (P/E) ratios that are starting to get frothy.It may be too late to make a quick hit on this farm belt trade, but another sector has suddenly become very attractive simply because these commodities are seeing a surge in prices. I'm talking about the major producers of chicken, beef and pork. Their costs just went up, and their shares just went down. Yet viewed in the context of traditional long-term [earnings](http://investinganswers.com/term/earnings-1514) power, these stocks are suddenly quite cheap. To fatten up livestock, farmers buy up massive amounts of corn and soybeans, which often account for a big chunk of operating expenses. But these "protein" producers have little control over revenue, even as their expenses rise and fall. The supply of animals on the market controls pricing, which is dictated by supply and demand on global markets. So with expenses rising and those costs unable to pass through, profit forecasts are falling.For example, back in July analysts thought poultry producer **Sanderson Farms (Nasdaq: SAFM)** would earn $6 a share next year. Now they think profits will be at least 20% below that view.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) -- David StermanBut Sanderson's profit forecasts are dropping for another reason as well: the nation's production of chicken and other poultry is set to rise +3% next year, according to the U.S.D.A. And rising supplies usually means falling prices in this industry. Yet that's not the case for beef and pork, as those producers have shown a great deal of discipline by culling herds. Fewer hogs and cattle coming to market next year mean that prices should rise, according to the USDA's World Agricultural Supply and Demand Estimates (WASDE) surveys. By this time next year, global beef production should be -4% lower. (Pork production is slumping now, but is expected to rebound by the second half of 2011.) So if expenses are rising for all protein producers but the revenue pictures are diverging, investors need to be selective. Smithfield Foods, which focuses solely on the pork market, is looking increasingly attractive, as the company should benefit from surging pork prices. Goldman Sachs expects hog prices to rise +25% to +30% next year, which should be more than enough to offset rising feed costs. If feed costs pull back to historical levels, then earnings could really take off. After a recent pullback, shares of Smithfield Foods trade for less than 10 times projected 2011 profits. **A long-term shot at poultry** Even as poultry producers are struggling from near-term expense hikes, their shares are setting up for a long-term buy. That's because these stocks tend to rise and fall in conjunction with earnings forecasts. Those forecasts have been cut lately, and shares of Sanderson, **Tyson ([TSN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSN&selected=TSN)) )** and **Pilgrim's Pride ([PPC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PPC&selected=PPC)) )** now trade closer to their 52-week low than their 52-week high. Yet estimates should soon hit a bottom -- and so should share prices.Looking into 2011, other factors are conspiring to take profit forecasts back up. For example, poultry exports to China and Russia are finally starting to rebound after recent embargoes were lifted. And poultry producers have a much greater ability than pork and beef producers to alter industry supply dynamics, as it takes much longer to fatten a hog or cow. As a result, poultry production is likely to peak in the first half of 2011 and start dropping from there as farmers realize lower prices and move to bring supply back in line with demand.Shares of the major poultry producers are trading for around eight times next year's downwardly revised 2011 profit forecasts. An expansion of the multiple to around 10, coupled with an eventualuptick in forecasts, should set the stage for meaningful upside -- once this current round of rising feed costs have been cycled through to the investment community. **Action to Take -->** Smithfield's pork focus makes its shares attractive right now. Investors need to show more finesse with the poultry stocks, however. Wait until quarterly results are out and lagging analysts finally reduce their estimates. Once that happens, forward estimates are likely to find a floor -- as are share prices. As estimates start to rebound in ensuing months, shares are likely to rebound at an even more robust clip as the [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) multiple expands.[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 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...P.S. -- For the past few weeks we've been telling you about some of the hottest investment opportunities for 2011. From tiny nuclear power plants that can be buried in your lawn, to revolutionary pain killers made from cobra venom, we're convinced the companies behind these products will soar in the coming year. To get briefed on these opportunities, and several others that we think could return many times your money, please read this memo.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: 43.4728
Stock Price 2 days before: 46.0913
Stock Price 1 day before: 46.1574
Stock Price at release: 48.6764
Risk-Free Rate at release: 0.0014
| 63.9898 |
Symbol: PZZA
Security: Papa John's International, Inc.
Related Stocks/Topics: DPZ|Markets|YUM
Title: Invest In America's Love Affair With Pizza
Type: News
Publication: Wyatt Investment Research
Publication Author: Unknown
Date: 2010-10-12 10:26:00
Article: The recession took away America's appetite for eating out. Yet it seems like the one affordable luxury for many families watching their pennies is pizza. A favorite for both young and old, pizza parlors have tried to keep their prices under control so that a family of four can enjoy a meal for around 20 bucks.Many restaurants suffered greatly during the economic downturn. But for the most part the bigger pizza chains pulled through - often by way of discounting through coupons and plenty of in-your-face advertising.. One of the larger U.S. chains, Pizza Hut, is owned by international conglomerate **Yum! Brands ([YUM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=YUM&selected=YUM)) )** . But two of the bigger and best-known pizza purveyors are actually small-cap stocks: **Domino's Pizza ([DPZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DPZ&selected=DPZ)) )** and **Papa John's International (Nasdaq: PZZA)** .Let's put personal taste preferences aside and check out these stocks. Even though both remained profitable during the recession, one of them might turn out to be especially tasty for investors. ***Weighing heavily on the pizza profit picture are commodities, such as wheat for the flour, and dairy for the cheese. Both companies have profit margins around 5 percent. Interestingly, Papa John's keeps store costs under control by operating a cooperative to help the franchisees buy their cheese and other supplies at lower prices.For decades, pizza meant locally owned neighborhood joints that, if successful, opened multiple outlets within a single market. That's not the case anymore. Along came Domino's, which has some 9,000 locations worldwide, and is three times the size of Papa John's."Papa John" Schnatter, founder and television face of his namesake chain, owns more than 20 percent of his company, which went public in 1993. Domino's was privately held for many years by the Monaghan family, and began selling stock in 2004. Both stocks have shown healthy improvement this year with Domino's the top dog posting a 70 percent gain versus 16 percent for Papa John's. Both stocks have outperformed their industry. The Dow Jones restaurant stock index is up 24 percent year-to-date, about four times more than the S&P 500 and more than double the gains of the S&P Small-cap 600***Watch any sports event, especially NASCAR and the NFL, and Papa John Schnatter's face is bound to pop up on commercials as he tools around in his classic Camaro delivering pizzas. The chain, which was a big sponsor during last February's Super Bowl, has other links to pro football - including a tie-in for the NBC Sunday night games and designation as the "official" pizza at some of the stadiums.That visibility has impressed analysts. A [Wall Street Journal](http://blogs.wsj.com/marketbeat/2010/09/09/are-you-ready-for-some-football-stocks-for-tonights-kickoff/) blog noted recently that Brad Ludington of KeyBanc Capital Markets, who has a buy rating on Papa John's, thinks that football season might help give the stock a short-term boost. Indeed, since the NFL season started, Papa John's stock is up about 7.5 percent.Of the six analysts surveyed by Thomson Reuters two rate Papa John's a strong buy, one has it a buy and three call it a hold. For Domino's, four of 13 say it's a strong buy, one has it a buy and the rest are at hold. ***The recession cut deep into the restaurant sector, and now there's a wave of consolidation going on. Burger King, CKE Restaurants (Carl's Jr. and Hardee's) and Landry's, to name a few, were taken private, and Arbys bought out struggling Wendy's. One name that keeps popping up as a takeover target is Papa John's.Following the Burger King buy-out, speculation surrounding "who is next" began to surface. Analyst Steve West of Stifel Nicolaus told Reuters that Papa John's was among the companies that he thought was on the acquisition short list.A [Forbes](http://blogs.forbes.com/steveschaefer/2010/09/16/whats-on-the-menu-for-restaurant-takeovers/) columnist noted that S&P's Valuation and Risk Strategies Team placed Papa John's among a half-dozen potential targets based on its 'discounted' stock and expectation for growing earings. The stock was trading at a discount to the 16.6-times earnings multiple of the consumer discretionary sector.Papa John's is expected to grow earnings per share by 20 percent this year, to $1.81 per share, and 16 percent next year, to $2.09 per share.Chances are that founder Schnatter isn't going to give up control of the chain that he founded in the back of his father's tavern in Jeffersonville, Ind., some 27 years ago. But whether the company is a buyout target or not the stock appears to have upside potential. And if the economic recovery surprises everyone and really catches fire, investors in Papa John's aren't likely to get burned. Papa John's reports earnings on November 3 rd . For a primer on how to buy and sell stocks during earnings season I'm pleased to offer you a special video from Wyatt Investment Research's Jason Cimpl. As the Editor of Trademaster Daily Stock Alerts , Jason's always watching the market and directing his subscribers to buy and sell the right stocks at the right time. Check out his free video by [clicking here.](http://www.trademasterstocks.com/videoreport/)
Stock Price 4 days before: 26.725
Stock Price 2 days before: 27.1246
Stock Price 1 day before: 27.1231
Stock Price at release: 27.0913
Risk-Free Rate at release: 0.0014
| 25.9183 |
Symbol: ODP
Security: The ODP Corporation
Related Stocks/Topics: Unknown
Title: Mid-Day Update: Stocks Trading Broadly Higher Following Yesterday's Fed, Earnings News
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-10-13 12:32:00
Article: Here's where markets stand at mid-day:-NYSE up 84.36 (+1.13%) to 7,573.32-DJIA up 106.37 (+0.97%) to 11,126.77-S&P 500 up 10.46 (+0.89%) to 1,180.13-Nasdaq up 25.09 (+1.04%) to 2,442.99GLOBAL SENTIMENTHang Seng up 1.45%Nikkei up 0.16%FTSE up 1.51%MID-DAY NYSE INDEX WATCHNYSE Energy up 1.16% at 11,297.43NYSE Financial up 0.97% at 4,868.22NYSE Health Care up 0.75% at 6,522.23NYSE Arca Tech 100 up 0.9% at 986.55UPSIDE MOVERS(+) AAPL (+0.96%) continues bullish run through $300.(+) ALU (+2.2%) upgraded.(+) PCLN (+2.5%) upgraded.(+) CRM (+2.5%) announces expanded alliance with Veeva Systems.(+) CTDC (+0.4%) ends plans to buy China Technology Solar Power.(+) SIRI (+5.6%) to sell notes, reports more than 334,000 subscribers in Q3. (+) ALKS (+1.0%) gets FDA approval for Vivitrol.(+) EXFO (+8.6%) gets follow-on order.DOWNSIDE MOVERS(-) MGM (-8.7%) downgraded; issued preliminary results and plans to sell shares.(-) MTW (-3.4%) earnings miss estimates.(-) IGTE (-4.7%) beats with Q3 results.(-) NLST (-2.1%) gains on U.S. patent.(-) INTC (-0.6%) beats with results.(-) JPM (-0.26%) beats with results.MARKET DIRECTIONStocks are broadly higher at mid-day as investors cheer yesterday's and today's litany of good news. Global stocks found support in the latest Fed meeting minutes issued Tuesday afternoon, which signaled additional quantitative easing ahead. Positive earnings news from Intel ([INTC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INTC&selected=INTC)) ) post-bell yesterday, and JPMorgan Chase ([JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM)) ) this morning have also provided lift.In company news, Apple ([AAPL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AAPL&selected=AAPL)) ) shares hit the $300 mark for the first time and a new 52-week high of $301.72, while the Wall Street Journal reports that the company is making a version of its iPhone model for Verizon Communications ([VZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VZ&selected=VZ)) ) to sell. The network is already testing its systems to see if it can handle the subsequent data load, the WSJ reported, citing people familiar with the matter.Shares of Pfizer ([PFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PFE&selected=PFE)) ) are still higher on news the company's antidepressant reboxetine is no more effective than a placebo in the treatment of symptoms of depression, according to a recent study. Researchers at the German Institute for Quality and Efficiency in Health Care concluded that previous studies overestimated the drug's benefit by 115%, Bloomberg reported.Clearwire Corp ([CLWR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CLWR&selected=CLWR)) ) is higher as it looks to raise between $2.5 billion and $5.0 billion in a wireless spectrum auction. Analysts expect high interest from major telecommunications groups, including AT&T Inc ([T](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=T&selected=T)) ), Verizon Communications Inc ([VZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VZ&selected=VZ)) ), Sprint Nextel Corp ([S](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=S&selected=S)) ), and Time Warner Cable Inc ([TWC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TWC&selected=TWC)) ). The auction process will be held behind closed doors. Meanwhile, Verizon and AT&T may be required by U.S. regulators to start alerting their mobile phone customers who are about to go over their monthly limits and trigger higher service charges, Bloomberg reported. The Federal Communications Commission is set to propose rules tomorrow and could have a final vote in the next few months, the report said, citing and interview with Chairman Julius Genachowski.Wal-Mart Stores ([WMT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WMT&selected=WMT)) ) will see better sales at its U.S. stores in the fourth quarter because of efforts the company is making to renew its focus on lower prices, the company's chief executive officer said, as reported by Reuters."I expect to see positive sales results in this fourth quarter," CEO Mike Duke said, according to Reuters, citing comments at the company's annual meeting. Sales at stores open for at least one year have fallen in each of the past five quarters, the report said.Chesapeake Energy ([CHK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CHK&selected=CHK)) ) said that its Chief Financial Officer Marcus C. Rowland is leaving the company after 18 years to join another company, Franc Tech, as president. The announcement came ahead of the company's annual analyst meeting, Reuters noted.Great Atlantic & Pacific Tea Co Inc. ([GAP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GAP&selected=GAP)) ) is plunging amid reports that the supermarket group is looking to restructure itself in an attempt to cut debt. A&P is talking with a number of investment banks on how to tackle its $1 billion debt load, including $157 billion in convertible bonds due in June 2011, according to the Wall Street Journal. Intel ([INTC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INTC&selected=INTC)) ) is lower following yesterday's Q3 earnings report that revealed the company had revenue of $11.1 billion, better than the analyst mean of $10.99 billion on Thomson Reuters. EPS was $0.52 per share, two cents ahead of the Street view. For Q4, the company is guiding for revs of $11.4 billion, plus or minus $400 million. The Street is at $11.31 billion.JPMorgan Chase ([JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM)) ) cut its third-quarter compensation for employees of its investment bank by 31% compared to last quarter because the company's revenue decline, Bloomberg reported. The financial services firm reported Q3 earnings of $1.01 per share, better than the analyst mean of $0.90 per share on Thomson Reuters. Revenue was $24.3 billion, about in line with the Street view of $24.6 billion. Still, revenue was off by 11% compared to a year ago.Qualcomm Inc ([QCOM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=QCOM&selected=QCOM)) ) is on the rise after the wireless phone chip maker declared a quarterly dividend, and also bought out iSkoot Technologies Inc. Details of the buyout of iSkoot were not disclosed.Office Depot, Inc. ([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) ) says it is currently in negotiations to sell its existing Office Depot (Israel) Ltd. business to New Hamashbir Lazarchan, Ltd. for proceeds of $47 million, less outstanding debt at time of closing, and the subsequent licensing of certain trade names and intellectual property rights.Commodities are higher. December gold contracts are up $24, or 1.78%, to $1,371 an ounce while November crude contacts are up 2.02%, or $1.67, at $83.35 a barrel. In energy ETFs, the United States Oil Fund ([USO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=USO&selected=USO)) ) is up 1.8% to $36.29 and the United States Natural Gas fund ([UNG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UNG&selected=UNG)) ) is up 3.27% to $6.In precious metal ETFs, the SPDR Gold Trust ([GLD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GLD&selected=GLD)) ) is up 1.42% to $133.84. Market Vectors Gold Miners ([GDX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GDX&selected=GDX)) ) is up 2.31% to $58.49. iShares Silver Trust ([SLV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLV&selected=SLV)) ) is up 1.97% to $23.29. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
Stock Price 4 days before: 4.56938
Stock Price 2 days before: 4.74632
Stock Price 1 day before: 4.9579
Stock Price at release: 5.17519
Risk-Free Rate at release: 0.0014
| 4.56 |
Symbol: ODP
Security: The ODP Corporation
Related Stocks/Topics: Unknown
Title: Stocks Higher in Mid-Day Trading as Earnings Swings Into Full Gear; Intel, JPMorgan Lower
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-10-13 12:41:00
Article: Stocks are broadly higher at mid-day as investors cheer yesterday's and today's litany of good news. Global stocks found support in the latest Fed meeting minutes issued Tuesday afternoon, which signaled additional quantitative easing ahead. Positive earnings news from Intel ([INTC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INTC&selected=INTC)) ) post-bell yesterday, and JPMorgan Chase ([JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM)) ) this morning have also provided lift.In company news, Apple ([AAPL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AAPL&selected=AAPL)) ) shares hit the $300 mark for the first time and a new 52-week high of $301.72, while the Wall Street Journal reports that the company is making a version of its iPhone model for Verizon Communications ([VZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VZ&selected=VZ)) ) to sell. The network is already testing its systems to see if it can handle the subsequent data load, the WSJ reported, citing people familiar with the matter. Shares of Pfizer ([PFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PFE&selected=PFE)) ) are still higher on news the company's antidepressant reboxetine is no more effective than a placebo in the treatment of symptoms of depression, according to a recent study. Researchers at the German Institute for Quality and Efficiency in Health Care concluded that previous studies overestimated the drug's benefit by 115%, Bloomberg reported.Clearwire Corp ([CLWR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CLWR&selected=CLWR)) ) is higher as it looks to raise between $2.5 billion and $5.0 billion in a wireless spectrum auction. Analysts expect high interest from major telecommunications groups, including AT&T Inc ([T](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=T&selected=T)) ), Verizon Communications Inc ([VZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VZ&selected=VZ)) ), Sprint Nextel Corp ([S](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=S&selected=S)) ), and Time Warner Cable Inc ([TWC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TWC&selected=TWC)) ). The auction process will be held behind closed doors.Meanwhile, Verizon and AT&T may be required by U.S. regulators to start alerting their mobile phone customers who are about to go over their monthly limits and trigger higher service charges, Bloomberg reported. The Federal Communications Commission is set to propose rules tomorrow and could have a final vote in the next few months, the report said, citing and interview with Chairman Julius Genachowski.Wal-Mart Stores ([WMT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WMT&selected=WMT)) ) will see better sales at its U.S. stores in the fourth quarter because of efforts the company is making to renew its focus on lower prices, the company's chief executive officer said, as reported by Reuters."I expect to see positive sales results in this fourth quarter," CEO Mike Duke said, according to Reuters, citing comments at the company's annual meeting. Sales at stores open for at least one year have fallen in each of the past five quarters, the report said. Chesapeake Energy ([CHK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CHK&selected=CHK)) ) said that its Chief Financial Officer Marcus C. Rowland is leaving the company after 18 years to join another company, Franc Tech, as president. The announcement came ahead of the company's annual analyst meeting, Reuters noted.Great Atlantic & Pacific Tea Co Inc. ([GAP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GAP&selected=GAP)) ) is plunging amid reports that the supermarket group is looking to restructure itself in an attempt to cut debt. A&P is talking with a number of investment banks on how to tackle its $1 billion debt load, including $157 billion in convertible bonds due in June 2011, according to the Wall Street Journal.Intel ([INTC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INTC&selected=INTC)) ) is lower following yesterday's Q3 earnings report that revealed the company had revenue of $11.1 billion, better than the analyst mean of $10.99 billion on Thomson Reuters. EPS was $0.52 per share, two cents ahead of the Street view. For Q4, the company is guiding for revs of $11.4 billion, plus or minus $400 million. The Street is at $11.31 billion.JPMorgan Chase ([JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM)) ) cut its third-quarter compensation for employees of its investment bank by 31% compared to last quarter because the company's revenue decline, Bloomberg reported. The financial services firm reported Q3 earnings of $1.01 per share, better than the analyst mean of $0.90 per share on Thomson Reuters. Revenue was $24.3 billion, about in line with the Street view of $24.6 billion. Still, revenue was off by 11% compared to a year ago.Qualcomm Inc ([QCOM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=QCOM&selected=QCOM)) ) is on the rise after the wireless phone chip maker declared a quarterly dividend, and also bought out iSkoot Technologies Inc. Details of the buyout of iSkoot were not disclosed. Office Depot, Inc. ([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) ) says it is currently in negotiations to sell its existing Office Depot (Israel) Ltd. business to New Hamashbir Lazarchan, Ltd. for proceeds of $47 million, less outstanding debt at time of closing, and the subsequent licensing of certain trade names and intellectual property rights.Commodities are higher. December gold contracts are up $24, or 1.78%, to $1,371 an ounce while November crude contacts are up 2.02%, or $1.67, at $83.35 a barrel.In energy ETFs, the United States Oil Fund ([USO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=USO&selected=USO)) ) is up 1.8% to $36.29 and the United States Natural Gas fund ([UNG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UNG&selected=UNG)) ) is up 3.27% to $6.In precious metal ETFs, the SPDR Gold Trust ([GLD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GLD&selected=GLD)) ) is up 1.42% to $133.84. Market Vectors Gold Miners ([GDX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GDX&selected=GDX)) ) is up 2.31% to $58.49. iShares Silver Trust ([SLV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLV&selected=SLV)) ) is up 1.97% to $23.29. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
Stock Price 4 days before: 4.56938
Stock Price 2 days before: 4.76
Stock Price 1 day before: 4.95804
Stock Price at release: 5.16882
Risk-Free Rate at release: 0.0014
| 4.52717 |
Symbol: IPI
Security: Intrepid Potash, Inc.
Related Stocks/Topics: Markets|BHP|MOS
Title: Fundamentals still favor Potash stocks
Type: News
Publication: Emerging Money
Publication Author: Unknown
Date: 2010-10-14 11:43:00
Article: Regional brokers now believe [potash](http://www.emergingmoney.com/tag/POT) could be worth over $500 a ton by 2015 as demand from Asia expands. This is naturally supportive for POT and the rest of the group. [Australia](http://www.emergingmoney.com/?s=australia&searchsubmit=) and New Zealand Banking Group issued a note alerting clients to the prospect that potash -- a key component of high-yield fertilizers -- could hop 56% from its currently depressed $320 a ton over the next five years.With no new potash supplies coming online before that point, rising demand from China and India could give producers like POT significant pricing power in the next few years. If so, ** [POT](http://emergingmoneycom/tag/POT)** is almost certainly worth more than the $130 a share that miner BHP Billiton [BHP](http://emergingmoney.com/tag/BHP) has offered to buy the company outright. [Image](http://data.moneycentral.msn.com/scripts/chrtsrv.dll?Symbol=pot&C1=1&C2=&C3=1&C4=3C9=1&Width=352&Height=184&legend=0&banner=2) This is also good news for smaller producers: ** [MOS](http://emergingmoney.com/tag/MOS)**, ** [AGU](http://emergingmoney.com/tag/AGU)**, ** [IPI](http://emergingmoney.com/tag/IPI)** and the rest. This is why we have been so active in alerting investors to the potash trade -- well ahead of the POT merger buzz. The underlying prices are going higher, the supply/demand dynamics are fine. Price increases are going through. Potash is king. ** [Sinochem still looking for a piece of POT](http://www.emergingmoney.com/stocks-etfs/stocks/sinochem-still-looking-for-a-piece-of-pot/)**The gigantic Chinese chemical producer Sinochem is still looking for ways to get direct ownership of at least a strategic share of PotashCorp, the world’s biggest potash miner.Sinochem has reportedly moved beyond simply consulting with HSBC to bring Deutsche Bank and Citigroup onto its advisory team as it prepares for a possible hostile bid for ** [POT](http://emergingmoney.com/tag/POT)**.China buys roughly 7% of POT’s output and has no major native potash supplies of its own.Although Chinese interests have reportedly been directed to investigate ways to block or counter BHP Billiton’s ** [BHP](http://emergingmoney.com/tag/BHP)** $39 billion offer for POT, a full rival bid may be unlikely. Canadian regulators have expressed doubts that they would allow the world’s leading potash deposits to go to a non-allied nation.
Stock Price 4 days before: 29.1088
Stock Price 2 days before: 29.4775
Stock Price 1 day before: 30.8735
Stock Price at release: 30.6521
Risk-Free Rate at release: 0.0015
| 31.656 |
Symbol: ADTN
Security: ADTRAN Holdings, Inc.
Related Stocks/Topics: CVLT|Markets|GEN|INTC|WEN|HUN|NTCT|CIEN|AMR|AMAT|JBLU|LRCX|STX
Title: These 5 Undervalued Stocks are Screaming "Takeover"
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-15 02:04:00
Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photo"Strike while the iron is hot," is the new catchphrase in Private Equity (PE) circles. Conditions are perfectly in place to do deals, and you can expect to hear of many more this winter. Just this week, **Yahoo! (Nasdaq: YHOO)** , **Wendy's/Arby's ([WEN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WEN&selected=WEN)) )** and **Seagate ([STX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=STX&selected=STX)) )** are surging on word that PE investors are sniffing around. This frenzy of potential deal-making comes as many public companies are cash-rich but undervalued. [See: " [This Sector's Mountain of Cash Could Soon Line Your Pocket](http://www.streetauthority.com/a/sectors-mountain-cash-could-soon-line-your-pocket-456571) "]To pull off a deal the size of Yahoo! is no mean feat. The company's [market value](http://investinganswers.com/term/market-value-779) already exceeds $20 billion. Seagate, which is now valued at around $6 billion, is typically more in line with an ideal size for PE investors, several of whom got burned in the last decade from deals that were simply too large to digest. PE firms also made the mistake back then of ignoring balance sheets, instead identifying debt-laden targets upon which they heaped even more debt. These days, PE buyers prefer to see lots of cash on the books so they can easily talk a bank into lending them the money to finance a deal. With interest rates quite low, theeconomics of deal-making are very compelling.These PE firms hope to take companies private while they're cheap and then bring them public (or find another buyer) when valuations improve. But buyers beware: by the time that a company goes public again, debt levels can be alarmingly high. For example, **Hertz Global Holdings ([HTZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HTZ&selected=HTZ)) )** was taken private in 2003 and then brought back public in 2006 through an [IPO](http://investinganswers.com/term/initial-public-offering-ipo-1076) . Shares plunged below $5 in 2008 when a massive [debt load](http://investinganswers.com/term/debt-load-1901) suddenly became a scary prospect in an economic downturn.To be sure, many potential PE candidates have already surged and would be risky to buy at this point. Names such as **CommVault (Nasdaq: CVLT)** , **Isilion Systems (Nasdaq: ISLN)** and **NetScout Systems (Nasdaq: NTCT)** have already seen considerable [buyout](http://investinganswers.com/term/buyout-949) buzz.With all that in mind, here is a quick list of five companies that appear to be attractive targets for the PE crowd, yet still appear undervalued. **1. ****Symantec (Nasdaq: SYMC)** -- Shares of this data security and storage vendor started to rebound after **Intel (Nasdaq: INTC)** bought rival **McAfee ([MFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MFE&selected=MFE)) )** . My colleague Ryan Fuhrmann made a clear case for considerable upside for shareholders, if a PE offer emerged. [ [Read Ryan's take here](http://www.streetauthority.com/a/60-upside-takeover-target-456612) ]**2. ****Integrated Silicon Solutions (Nasdaq: ISSI)** -- This company checks all the boxes that PE firms look for. It sports a reasonable $236 million market value, has roughly $90 million in net cash, is nicely profitable -- trading at less than six timesearnings , and is utterly unloved. Semiconductor stocks are far out of favor right now, and this maker of embedded chips that go into a wide range of applications could be acquired and combined with another PE holding to make a larger chip company. **3. ****Novellus Systems (Nasdaq: NVLS)** -- This company, along with **Lam Research (Nasdaq: LRCX)** , trails behind industry leader **Applied Materials (Nasdaq: AMAT)** in the market for semiconductor manufacturing equipment. They all toil in a highly [cyclical industry](http://investinganswers.com/term/cyclical-industry-356) , which means they are occasionally stuck with low price-to-earnings (P/E) ratios-- right now they all trade for less than 10 times next year's projected profits. Yet these types of stocks are often attractive to PE firms that can buy them, extract the cash, and take them public again when the sector is back in vogue. **4. Huntsman Corp. ([HUN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HUN&selected=HUN)) )** -- This chemicals maker routinely traded in the high teens and the low $20s prior to the financial crisis and now trades for around $12. As [I noted in this article](http://www.streetauthority.com/a/botched-deal-could-lead-big-gains-456113) , a buyer was prepared to pay $28 a share in 2007 before financing dried up.The chemicals business is highly cyclical, and Huntsman's profits are just starting to rebound. The company is likely to earn $0.50 a share this year and perhaps twice as much next year. But PE buyers will note that [EPS](http://investinganswers.com/term/earnings-share-eps-1003) exceeded $2 in 2008, when economic conditions were better. Shares trade for just six times that peak cycle profit. Of course, Huntsman still carries a lot of debt, even as it has built up a heftyload of cash, so PE buyers would likely use Huntsman's $1 billion in annual [free cash flow](http://investinganswers.com/term/free-cash-flow-1000) to help secure financing for the deal. **5. Ciena (Nasdaq: CIEN)** -- When **Tyco International ([TYC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TYC&selected=TYC)) )** announced plans in July to acquire **ADC Telecom (Nasdaq: ADCT)** , investors quickly surveyed the landscape to see what rivals may be up for sale. **ADTRAN (Nasdaq: ADTN)** seemed to some as the most obvious target, and its shares have risen about +20% since then. But I think Ciena is more likely to find interest. That's because Ciena was able to pick up Nortel's telecom equipment business at a cheap price in bankruptcy court earlier in 2010, and now has an even broader product platform and deeper array of customers.That newfound heft should help Ciena to secure rising [market share](http://investinganswers.com/term/market-share-778) in the telecom equipment market, whose demise has been greatly exaggerated. Europe now represents 35% of sales for Ciena, which currently represents a drag but will be a tailwind when the Europeaneconomy rebounds and European telecom service providers need to catch up on lagging infrastructure investments. **Action to Take -->** This list could go on and other names such as **JetBlue (Nasdaq: JBLU)** , **AMR ([AMR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMR&selected=AMR)) )** , **Weatherford Industries ([WFT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WFT&selected=WFT)) )** , **Blue Coat Systems (Nasdaq: BCSI)** -- all are digestibly-sized and operate in consolidating industries. Of course, many of these deals will never happen, so you should buy these stocks for their fundamentals, and not because you expect a buyout offer to emerge. But make no mistake, the PE buyout frenzy is clearly underway and will remain in place as long as borrowing costs and current equity valuations are low.[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... P.S. -- For the past few weeks we've been telling you about some of the hottest investment opportunities for 2011. From tiny nuclear power plants that can be buried in your lawn, to revolutionary pain killers made from cobra venom, we're convinced the companies behind these products will soar in the coming year. To get briefed on these opportunities, and several others that we think could return many times your money, please read this memo.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: 35.2599
Stock Price 2 days before: 37.017
Stock Price 1 day before: 33.3702
Stock Price at release: 32.9978
Risk-Free Rate at release: 0.0014
| 31.823 |
Symbol: JBLU
Security: JetBlue Airways Corporation
Related Stocks/Topics: CVLT|Markets|ADTN|GEN|INTC|WEN|HUN|NTCT|CIEN|AMR|AMAT|LRCX|STX
Title: These 5 Undervalued Stocks are Screaming "Takeover"
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-15 02:04:00
Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photo"Strike while the iron is hot," is the new catchphrase in Private Equity (PE) circles. Conditions are perfectly in place to do deals, and you can expect to hear of many more this winter. Just this week, **Yahoo! (Nasdaq: YHOO)** , **Wendy's/Arby's ([WEN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WEN&selected=WEN)) )** and **Seagate ([STX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=STX&selected=STX)) )** are surging on word that PE investors are sniffing around. This frenzy of potential deal-making comes as many public companies are cash-rich but undervalued. [See: " [This Sector's Mountain of Cash Could Soon Line Your Pocket](http://www.streetauthority.com/a/sectors-mountain-cash-could-soon-line-your-pocket-456571) "]To pull off a deal the size of Yahoo! is no mean feat. The company's [market value](http://investinganswers.com/term/market-value-779) already exceeds $20 billion. Seagate, which is now valued at around $6 billion, is typically more in line with an ideal size for PE investors, several of whom got burned in the last decade from deals that were simply too large to digest. PE firms also made the mistake back then of ignoring balance sheets, instead identifying debt-laden targets upon which they heaped even more debt. These days, PE buyers prefer to see lots of cash on the books so they can easily talk a bank into lending them the money to finance a deal. With interest rates quite low, theeconomics of deal-making are very compelling.These PE firms hope to take companies private while they're cheap and then bring them public (or find another buyer) when valuations improve. But buyers beware: by the time that a company goes public again, debt levels can be alarmingly high. For example, **Hertz Global Holdings ([HTZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HTZ&selected=HTZ)) )** was taken private in 2003 and then brought back public in 2006 through an [IPO](http://investinganswers.com/term/initial-public-offering-ipo-1076) . Shares plunged below $5 in 2008 when a massive [debt load](http://investinganswers.com/term/debt-load-1901) suddenly became a scary prospect in an economic downturn.To be sure, many potential PE candidates have already surged and would be risky to buy at this point. Names such as **CommVault (Nasdaq: CVLT)** , **Isilion Systems (Nasdaq: ISLN)** and **NetScout Systems (Nasdaq: NTCT)** have already seen considerable [buyout](http://investinganswers.com/term/buyout-949) buzz.With all that in mind, here is a quick list of five companies that appear to be attractive targets for the PE crowd, yet still appear undervalued. **1. ****Symantec (Nasdaq: SYMC)** -- Shares of this data security and storage vendor started to rebound after **Intel (Nasdaq: INTC)** bought rival **McAfee ([MFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MFE&selected=MFE)) )** . My colleague Ryan Fuhrmann made a clear case for considerable upside for shareholders, if a PE offer emerged. [ [Read Ryan's take here](http://www.streetauthority.com/a/60-upside-takeover-target-456612) ]**2. ****Integrated Silicon Solutions (Nasdaq: ISSI)** -- This company checks all the boxes that PE firms look for. It sports a reasonable $236 million market value, has roughly $90 million in net cash, is nicely profitable -- trading at less than six timesearnings , and is utterly unloved. Semiconductor stocks are far out of favor right now, and this maker of embedded chips that go into a wide range of applications could be acquired and combined with another PE holding to make a larger chip company. **3. ****Novellus Systems (Nasdaq: NVLS)** -- This company, along with **Lam Research (Nasdaq: LRCX)** , trails behind industry leader **Applied Materials (Nasdaq: AMAT)** in the market for semiconductor manufacturing equipment. They all toil in a highly [cyclical industry](http://investinganswers.com/term/cyclical-industry-356) , which means they are occasionally stuck with low price-to-earnings (P/E) ratios-- right now they all trade for less than 10 times next year's projected profits. Yet these types of stocks are often attractive to PE firms that can buy them, extract the cash, and take them public again when the sector is back in vogue. **4. Huntsman Corp. ([HUN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HUN&selected=HUN)) )** -- This chemicals maker routinely traded in the high teens and the low $20s prior to the financial crisis and now trades for around $12. As [I noted in this article](http://www.streetauthority.com/a/botched-deal-could-lead-big-gains-456113) , a buyer was prepared to pay $28 a share in 2007 before financing dried up.The chemicals business is highly cyclical, and Huntsman's profits are just starting to rebound. The company is likely to earn $0.50 a share this year and perhaps twice as much next year. But PE buyers will note that [EPS](http://investinganswers.com/term/earnings-share-eps-1003) exceeded $2 in 2008, when economic conditions were better. Shares trade for just six times that peak cycle profit. Of course, Huntsman still carries a lot of debt, even as it has built up a heftyload of cash, so PE buyers would likely use Huntsman's $1 billion in annual [free cash flow](http://investinganswers.com/term/free-cash-flow-1000) to help secure financing for the deal. **5. Ciena (Nasdaq: CIEN)** -- When **Tyco International ([TYC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TYC&selected=TYC)) )** announced plans in July to acquire **ADC Telecom (Nasdaq: ADCT)** , investors quickly surveyed the landscape to see what rivals may be up for sale. **ADTRAN (Nasdaq: ADTN)** seemed to some as the most obvious target, and its shares have risen about +20% since then. But I think Ciena is more likely to find interest. That's because Ciena was able to pick up Nortel's telecom equipment business at a cheap price in bankruptcy court earlier in 2010, and now has an even broader product platform and deeper array of customers.That newfound heft should help Ciena to secure rising [market share](http://investinganswers.com/term/market-share-778) in the telecom equipment market, whose demise has been greatly exaggerated. Europe now represents 35% of sales for Ciena, which currently represents a drag but will be a tailwind when the Europeaneconomy rebounds and European telecom service providers need to catch up on lagging infrastructure investments. **Action to Take -->** This list could go on and other names such as **JetBlue (Nasdaq: JBLU)** , **AMR ([AMR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMR&selected=AMR)) )** , **Weatherford Industries ([WFT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WFT&selected=WFT)) )** , **Blue Coat Systems (Nasdaq: BCSI)** -- all are digestibly-sized and operate in consolidating industries. Of course, many of these deals will never happen, so you should buy these stocks for their fundamentals, and not because you expect a buyout offer to emerge. But make no mistake, the PE buyout frenzy is clearly underway and will remain in place as long as borrowing costs and current equity valuations are low.[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... P.S. -- For the past few weeks we've been telling you about some of the hottest investment opportunities for 2011. From tiny nuclear power plants that can be buried in your lawn, to revolutionary pain killers made from cobra venom, we're convinced the companies behind these products will soar in the coming year. To get briefed on these opportunities, and several others that we think could return many times your money, please read this memo.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: 6.7223
Stock Price 2 days before: 6.57418
Stock Price 1 day before: 6.6236
Stock Price at release: 6.63429
Risk-Free Rate at release: 0.0014
| 6.8314 |
Symbol: NTCT
Security: NetScout Systems, Inc.
Related Stocks/Topics: CVLT|Markets|ADTN|GEN|INTC|WEN|HUN|CIEN|AMR|AMAT|JBLU|LRCX|STX
Title: These 5 Undervalued Stocks are Screaming "Takeover"
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-15 02:04:00
Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photo"Strike while the iron is hot," is the new catchphrase in Private Equity (PE) circles. Conditions are perfectly in place to do deals, and you can expect to hear of many more this winter. Just this week, **Yahoo! (Nasdaq: YHOO)** , **Wendy's/Arby's ([WEN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WEN&selected=WEN)) )** and **Seagate ([STX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=STX&selected=STX)) )** are surging on word that PE investors are sniffing around. This frenzy of potential deal-making comes as many public companies are cash-rich but undervalued. [See: " [This Sector's Mountain of Cash Could Soon Line Your Pocket](http://www.streetauthority.com/a/sectors-mountain-cash-could-soon-line-your-pocket-456571) "]To pull off a deal the size of Yahoo! is no mean feat. The company's [market value](http://investinganswers.com/term/market-value-779) already exceeds $20 billion. Seagate, which is now valued at around $6 billion, is typically more in line with an ideal size for PE investors, several of whom got burned in the last decade from deals that were simply too large to digest. PE firms also made the mistake back then of ignoring balance sheets, instead identifying debt-laden targets upon which they heaped even more debt. These days, PE buyers prefer to see lots of cash on the books so they can easily talk a bank into lending them the money to finance a deal. With interest rates quite low, theeconomics of deal-making are very compelling.These PE firms hope to take companies private while they're cheap and then bring them public (or find another buyer) when valuations improve. But buyers beware: by the time that a company goes public again, debt levels can be alarmingly high. For example, **Hertz Global Holdings ([HTZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HTZ&selected=HTZ)) )** was taken private in 2003 and then brought back public in 2006 through an [IPO](http://investinganswers.com/term/initial-public-offering-ipo-1076) . Shares plunged below $5 in 2008 when a massive [debt load](http://investinganswers.com/term/debt-load-1901) suddenly became a scary prospect in an economic downturn.To be sure, many potential PE candidates have already surged and would be risky to buy at this point. Names such as **CommVault (Nasdaq: CVLT)** , **Isilion Systems (Nasdaq: ISLN)** and **NetScout Systems (Nasdaq: NTCT)** have already seen considerable [buyout](http://investinganswers.com/term/buyout-949) buzz.With all that in mind, here is a quick list of five companies that appear to be attractive targets for the PE crowd, yet still appear undervalued. **1. ****Symantec (Nasdaq: SYMC)** -- Shares of this data security and storage vendor started to rebound after **Intel (Nasdaq: INTC)** bought rival **McAfee ([MFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MFE&selected=MFE)) )** . My colleague Ryan Fuhrmann made a clear case for considerable upside for shareholders, if a PE offer emerged. [ [Read Ryan's take here](http://www.streetauthority.com/a/60-upside-takeover-target-456612) ]**2. ****Integrated Silicon Solutions (Nasdaq: ISSI)** -- This company checks all the boxes that PE firms look for. It sports a reasonable $236 million market value, has roughly $90 million in net cash, is nicely profitable -- trading at less than six timesearnings , and is utterly unloved. Semiconductor stocks are far out of favor right now, and this maker of embedded chips that go into a wide range of applications could be acquired and combined with another PE holding to make a larger chip company. **3. ****Novellus Systems (Nasdaq: NVLS)** -- This company, along with **Lam Research (Nasdaq: LRCX)** , trails behind industry leader **Applied Materials (Nasdaq: AMAT)** in the market for semiconductor manufacturing equipment. They all toil in a highly [cyclical industry](http://investinganswers.com/term/cyclical-industry-356) , which means they are occasionally stuck with low price-to-earnings (P/E) ratios-- right now they all trade for less than 10 times next year's projected profits. Yet these types of stocks are often attractive to PE firms that can buy them, extract the cash, and take them public again when the sector is back in vogue. **4. Huntsman Corp. ([HUN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HUN&selected=HUN)) )** -- This chemicals maker routinely traded in the high teens and the low $20s prior to the financial crisis and now trades for around $12. As [I noted in this article](http://www.streetauthority.com/a/botched-deal-could-lead-big-gains-456113) , a buyer was prepared to pay $28 a share in 2007 before financing dried up.The chemicals business is highly cyclical, and Huntsman's profits are just starting to rebound. The company is likely to earn $0.50 a share this year and perhaps twice as much next year. But PE buyers will note that [EPS](http://investinganswers.com/term/earnings-share-eps-1003) exceeded $2 in 2008, when economic conditions were better. Shares trade for just six times that peak cycle profit. Of course, Huntsman still carries a lot of debt, even as it has built up a heftyload of cash, so PE buyers would likely use Huntsman's $1 billion in annual [free cash flow](http://investinganswers.com/term/free-cash-flow-1000) to help secure financing for the deal. **5. Ciena (Nasdaq: CIEN)** -- When **Tyco International ([TYC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TYC&selected=TYC)) )** announced plans in July to acquire **ADC Telecom (Nasdaq: ADCT)** , investors quickly surveyed the landscape to see what rivals may be up for sale. **ADTRAN (Nasdaq: ADTN)** seemed to some as the most obvious target, and its shares have risen about +20% since then. But I think Ciena is more likely to find interest. That's because Ciena was able to pick up Nortel's telecom equipment business at a cheap price in bankruptcy court earlier in 2010, and now has an even broader product platform and deeper array of customers.That newfound heft should help Ciena to secure rising [market share](http://investinganswers.com/term/market-share-778) in the telecom equipment market, whose demise has been greatly exaggerated. Europe now represents 35% of sales for Ciena, which currently represents a drag but will be a tailwind when the Europeaneconomy rebounds and European telecom service providers need to catch up on lagging infrastructure investments. **Action to Take -->** This list could go on and other names such as **JetBlue (Nasdaq: JBLU)** , **AMR ([AMR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMR&selected=AMR)) )** , **Weatherford Industries ([WFT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WFT&selected=WFT)) )** , **Blue Coat Systems (Nasdaq: BCSI)** -- all are digestibly-sized and operate in consolidating industries. Of course, many of these deals will never happen, so you should buy these stocks for their fundamentals, and not because you expect a buyout offer to emerge. But make no mistake, the PE buyout frenzy is clearly underway and will remain in place as long as borrowing costs and current equity valuations are low.[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... P.S. -- For the past few weeks we've been telling you about some of the hottest investment opportunities for 2011. From tiny nuclear power plants that can be buried in your lawn, to revolutionary pain killers made from cobra venom, we're convinced the companies behind these products will soar in the coming year. To get briefed on these opportunities, and several others that we think could return many times your money, please read this memo.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: 20.7583
Stock Price 2 days before: 21.385
Stock Price 1 day before: 21.5203
Stock Price at release: 21.7337
Risk-Free Rate at release: 0.0014
| 22.8514 |
Symbol: PBI
Security: Pitney Bowes Inc.
Related Stocks/Topics: Markets
Title: Bears send Pitney Bowes a message
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-10-15 07:20:00
Article: The bears are back in Pitney Bowes.The debt-laden maker of postal meters and other snail-mail paraphernalia has been in a downtrend for years as business shifts to the Internet. It plunged 16 percent on Aug. 3 after earnings missed forecasts and management slashed full-year guidance. [PBI](http://www.optionmonster.com/cms/commentary/images/pbipre1015.png) The shares bottomed out around $19 in late August and then rebounded back above $22 by Wednesday's close. Yesterday, however, there was selling out of the gate and PBI fell 2.38 percent to $21.77. The big options trade was a bearish put roll. The investor sold 2,576 October 25 puts for $2.92 against existing open interest and bought an equal number of January 25 puts for $3.42, gaining an additional three months of downside exposure for $0.50.The strategy was somewhat unusual because they're using in-the-money contracts, which will track the movement of PBI shares almost dollar-for-dollar. Usually investors use out-of-the money contracts to hedge long positions in a stock, so Thursday's trade may have been the work of a trader using options instead of a short sale on the equity.The transaction appeared after the stock hit resistance around the same $22 area that had been support in June and July, indicating a bearish trend remains in place. PBI's next earnings report is scheduled for after the bell on Nov. 2.An investor also bought 2,000 January 25 calls for $0.15 yesterday in a separate trade. Total option volume in PBI was 11 times greater than average.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 22.0182
Stock Price 2 days before: 22.2441
Stock Price 1 day before: 22.3077
Stock Price at release: 21.9178
Risk-Free Rate at release: 0.0014
| 38.363 |
Symbol: GCI
Security: Gannett Co., Inc.
Related Stocks/Topics: GE|Markets|AMD|GOOG|INFY
Title: Opening View: U.S. Stock Futures Mixed; Google Poised to Lead Tech Sector
Type: News
Publication: Schaeffer
Publication Author: Unknown
Date: 2010-10-15 07:50:00
Article: The Dow Jones Industrial Average (DJIA) snapped a four-session winning streak yesterday, as a surprise rise in jobless claims and a growing foreclosure crisis weighed heavily on investors. Heading into the open this morning, futures on the DJIA and S&P 500 Index (SPX) are trading 5.6 points below and roughly 1 point above fair value. However, the tech sector is shining, with the Nasdaq-100 trading about 10.6 points above fair value in the wake of strong earnings reports from Google Inc. ([GOOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GOOG&selected=GOOG)) ) and Advanced Micro Devices Inc. ([AMD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMD&selected=AMD)) ). As for technical levels, look for resistance at 11,150 and support at 11,000 for the DJIA, while the SPX remains between the 1,185 and 1,165 levels. By the time Opening View is published this morning, traders will also have had a chance to digest a morning speech by Federal Reserve Chairman Ben Bernanke on monetary policy.In earnings news, General Electric Co. ([GE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GE&selected=GE)) ) has slipped nearly 3% in premarket trading, after reporting that its third-quarter net earnings were $2.06 billion, or 18 cents per share. On a continuing operations basis, GE earned 29 cents per share. Revenue fell 5% to $35.89 billion. Analysts were expecting third-quarter earnings of 27 cents per share on sales of $37.43 billion. Shares of Google Inc. ([GOOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GOOG&selected=GOOG)) ) have rallied nearly 9% in electronic trading this morning, as traders react to last night's quarterly earnings report. Specifically, Google announced that its [third-quarter net income](http://www.schaeffersresearch.com/commentary/content/google+inc+amd+gain+ground+after+hours+on+well-received+earnings/trading_floor_blog.aspx?blogid=102898) rose to $2.17 billion, or $6.72 per share, as net revenue rose to $5.5 billion. Excluding one-time items, Google said earnings were $7.64 per share. Analysts were expecting a profit of $6.69 per share on $5.3 billion in net revenue.Advanced Micro Devices Inc. ([AMD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMD&selected=AMD)) ) is trading about 4.5% higher ahead of the open, after the company reported a [third-quarter loss](http://www.schaeffersresearch.com/commentary/content/google+inc+amd+gain+ground+after+hours+on+well-received+earnings/trading_floor_blog.aspx?blogid=102898) of $118 million, or 17 cents per share, with revenue rising to $1.62 billion. On an adjusted basis, earnings came in at 15 cents per share. Wall Street was looking for earnings of 6 cents per share on revenue of $1.6 billion. For the current quarter, AMD said it expects revenue to be flat sequentially. **Earnings Preview** On the earnings front, Gannett Co. Inc. ([GCI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GCI&selected=GCI)) ), Infosys Technologies Limited ([INFY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INFY&selected=INFY)) ), and Mattel Inc. (MAT) will release their quarterly reports today. Keep your browser at ** [SchaeffersResearch.com](http://www.schaeffersresearch.com/)** for more news as it breaks. **Economic Calendar** The economic calendar will be busy once again today, with September's consumer price index, retail sales, the New York Fed's Empire State manufacturing index, and the University of Michigan's consumer sentiment index for October. **Market Statistics** Equity option activity on the CBOE saw 1,951,991 call contracts traded on Thursday, compared to 1,142,387 put contracts. The resultant single-session put/call ratio arrived at 0.59, while the 21-day moving average held at 0.58. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/101015ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/101015ov2.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/2010/101015ov3.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 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 loss of 0.04%. Most Asian markets finished lower on Thursday, though mainland China bucked the downtrend to extend its current winning streak to seven days in a row. Meanwhile, European stocks were cautiously higher, after Eurostat reported that consumer price inflation in the euro zone rose to 1.8% in September from 1.6% in August. The rate remains below the European Central Bank's target of 2%. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/101015ov4.gif)**Currencies and Commodities** The U.S. dollar has risen off yesterday's lows, but the greenback remains dogged by most of its foreign competitors. Heading into the weekend, the U.S. Dollar Index is hovering just above a fresh annual low near the 76 level. Commodities are not quite as enthusiastic about the dollar's decline today as they were on Thursday, however. Gold futures, for instance, are up a mere $1.10 at $1,378.70 an ounce. What's more, crude futures have actually declined 8 cents to $83.28 per barrel. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/101015ov5.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/2010/101015ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/101015ov7.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: 13.588
Stock Price 2 days before: 13.8852
Stock Price 1 day before: 14.073
Stock Price at release: 14.3213
Risk-Free Rate at release: 0.0014
| 12.7104 |
Symbol: SCSC
Security: ScanSource, Inc.
Related Stocks/Topics: Markets|WMT|EPS
Title: 4 Small Cap Turnarounds with Big Upside
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-17 03:34:00
Article: The economic slowdown of 2008 and 2009 was especially unkind to stocks of smaller companies. Their shares were the first to be sold off when investors panicked, and many of them remain out of favor while economic concerns persist. Indeed many small caps may be well off of their 52-week lows, but remain far from highs seen just a few years ago.Here's a look at four companies that are moving in the right direction. If theeconomy can start to improve in 2011, these stocks may see their shares move back to the peaks of a few years ago. **1. Intermec ([IN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IN&selected=IN)) )** ($756 million market cap.) -- This maker of barcode systems had a steady-as-she-goes business until the economic storm hit. Annual sales routinely came in around $800 to $900 million, and from 2005 to 2008, its shares traded in the $20 to $30 range. The economic slowdown led to a -26% plunge in sales in 2009, and shares now trade for around $12.But signs are emerging that sales may finally start to rebound in coming quarters. We got the first sign last week, when barcode distributor **ScanSource (Nasdaq: SCSC)** noted that September quarter sales had surged. That was a sure sign that small and medium-sized businesses were finally starting to invest in new equipment. Equally important, Intermec is set to embark on a new product cycle, with plans to release a raft of new profits in the fourth quarter of 2010 and the first quarter of 2011.You'll know that Intermec's sales are on the mend when retailers start to step up spending again on warehouse automation. Many retailers have been conserving cash in the face of anemic sales. Yet lower expenses are once again leading to rising retail profits, and many of them are long past due in terms of investments in the warehouse inventory monitoring tools that are Intermec's specialty. If you exclude the company's $3.60 a share in net cash, shares of Intermec trade for just 0.75 times projected 2010 sales, well less than the multiple of two that shares used to garner.As a final kicker, Intermec holds dozens of patents in the area of radio frequency ID (RFID), which some believe may eventually supplant bar code readers. That hasn't happened yet, but if it does, Intermec would reap ample royalties. **2. Christopher & Banks ([CBK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBK&selected=CBK)) )** ($242 million market cap.) -- Sticking with the retail theme, this purveyor of women's business casual clothing developed a strong customer base when the [economy](http://investinganswers.com/term/economy-1517) was strong. Sales rose at a steady +10% to +15% annual clip from 2003 through 2007, pushing total revenue past the $500 million mark and per share profits close to $1. That helped to push shares to almost $30 by 2006 as investors saw the company as a steady growth vehicle with ample room for expansion. Since then, the tight economy has led many women to make-do to with their existing wardrobes, yet as we all know, clothes eventually wear out from usage. So at some point, same-store sales should rebound for Christopher & Banks, which still has a strong reputation in its niche. Right now, though, the retailer is going through a tough stretch, as its summer assortment of new clothes apparently missed the mark with consumers. Shares have fallen from $11 in late April to a recent $7, a far cry from that $30 peak in 2006.Could a turn be at hand? Sterne Agee's Margaret Whitfield notes that a "positive response was noted to new September merchandise with fall colors and versatile items resonating with consumers." She notes that shares are too cheap, with $3 in net cash and price-to-sales ratio below 0.5. She predicts shares will move back up $11 once Christopher & Banks is able to show a better merchandising touch. That could happen soon, if those September impressions are any guide.Longer-term, shares have the potential to move well above that $11 target price. That's because CEO Lorna Nagler, who took the reins in 2007, has worked to streamline many aspects of the retailer's operations. Highlights include a $15 million investment in new technology, $20 million in cost reductions and more targeted promotions. Those improvements are being masked by still-weak sales but should be in evidence once employment picks up and shoppers file back into stores. **3. Exide Technologies (Nasdaq: XIDE)** ($417 million market cap.) -- This battery-maker was dealt a severe blow when **Walmart ([WMT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WMT&selected=WMT)) )** opted to stop using its batteries in the auto department. Sales, which would have grown nicely in fiscal (March) 2011, instead will likely be just flat.Yet a new technology should give a boost to sales in coming years. An increasing number of new cars are expected to be sold with stop-start technology which saves fuel when a car is temporarily stopped. To cycle an engine on and off many times over the course of a day, and to keep the air-conditioning and other items running when the engine is off, means that more robust batteries will be needed. As an added kicker to growth, the company has entered the South American market with a recent office being opened in Brazil. That's the fastest-growing car market in the world, outside of China. And don't worry about the lost Walmart business. Exide concluded that profit margins were too low on that contract and were dragging down the company's pricing power with other customers that demanded similar pricing. Management is now focused on generating the most robust gross margins possible. Gross margins have risen from 16% in 2008 to 20% in 2010, and should exceed 21% by next year. That's why a +7% jump in sales next year is expected to lead to a +150% jump in profits. Further sales gains in subsequent years, should propel [earnings per share ( ](http://investinganswers.com/term/earnings-share-eps-1003) [EPS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPS&selected=EPS) ) growth at an even higher clip. **4. Zoltek (Nasdaq: ZOLT)** ($343 million market cap.) -- Thanks to its light weight and high strength, carbon fiber has long been eyed as a great replacement material for heavier steel and less-strong aluminum. But its high price meant that it was only suitable for advanced applications. And many of those advanced applications made less sense in tough economic times. That was bad news for this company, which had embarked on a major capacity expansion just as the economic crisis hit. The new higher level of [overhead](http://investinganswers.com/term/overhead-799) turned a $0.22 per share profit in fiscal (September) 2008 to a $0.12 per share loss in 2009, as sales fell -25%. What was once a $45 stock back in 2007 -- is now a $10 stock.The good news: signs are emerging that demand may finally start to rebound in coming quarters, leading analysts to predict that sales will rise +26% in the [fiscal year](http://investinganswers.com/term/fiscal-year-1316) that just began, to $178 million. Even better news: the 2008 capacity expansion means Zoltek can produce $300 million worth of carbon fiber with minimal further investment. That should eventually lead to 30% gross margins and 20% EBITDA margins. Zoltek's near-term results are likely to be lackluster, so these shares may not start rebounding until we move into 2011. **Action to Take -->** Even as the market has rebounded sharply after the 2008 economic crisis, many individual stocks remain well below pre-recession levels. These companies did just fine when the economy was more robust. As the economy rebounds, these shares should post outsized gains.[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...P.S. -- For the past few weeks we've been telling you about some of the hottest investment opportunities for 2011. From tiny nuclear power plants that can be buried in your lawn, to revolutionary pain killers made from cobra venom, we're convinced the companies behind these products will soar in the coming year. To get briefed on these opportunities, and several others that we think could return many times your money, please read this memo.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: 30.9455
Stock Price 2 days before: 31.9799
Stock Price 1 day before: 31.5247
Stock Price at release: 31.5069
Risk-Free Rate at release: 0.0014
| 28.5492 |
Symbol: GCI
Security: Gannett Co., Inc.
Related Stocks/Topics: Unknown
Title: 5 Fatal Mistakes Value Investors Make
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-18 01:06:00
Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photoValue stocks have long been regarded as safer investments than growth stocks. They tend to sport lower valuations and are often dogged by low expectations. So any stumbles can be taken in stride. But investors need to do their homework before pouncing on avalue stock too quickly. A little digging may reveal more insights that take the shine off of any value play. Here are some key items to watch out for. **1. When losses sinkbook value .** Investors tend to take a shine to stocks that are trading at less than [book value](http://investinganswers.com/term/book-value-1080) (which means that the company's [market value](http://investinganswers.com/term/market-value-779) is less than shareholder's equity -- found on the bottom of the balance sheet). Trouble is, if that company is losing money, or taking major write-offs, then shareholder's equity is likely to erode. To be safe, look for "below book" stocks that are actually profitable, so shareholder's equity (book value) will keep rising. (For further reading on "below book" stocks, [check out this article](http://www.streetauthority.com/a/3-deep-value-stocks-major-upside-456491) )**2.Cash flow that never becomes cash.** Analysts will often tout certain stocks that appear cheap on the basis of their [cash flow](http://investinganswers.com/term/cash-flow-1175) . Indeed cash flow can be a very good metric, as it proves that a company can generate ample excess returns from operations. And while a company is growing at fast clip, it makes sense for management to re-invest that cash flow back into the business.Yet some companies seem perpetually stuck in that mode, always pushing the money into the business in order to keep up with competition. So that cash flow never translates into rising cash levels. For example, solar panel maker **SunPower (Nasdaq: SPWRA)** consistently generates positive operating cash flow, but heavy investments mean that [free cash flow](http://investinganswers.com/term/free-cash-flow-1000) is always negative. That has forced the company to repeatedly sell more shares to stay afloat, diluting the stake of existing shareholders. **3. An uncertaindividend yield .** Dividend stocks are often seen as value stocks. Their high yields provide an attractive source of income even if their shares have limited [capital appreciation](http://investinganswers.com/term/capital-appreciation-1006) potential. But many investors mistakenly buy stocks with unusually high dividend yields. And extremely high yields -- in excess of 10%, for example -- can be a sign that thedividend will need to be cut. At the depths of the economic crisis, media firm **Gannett ([GCI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GCI&selected=GCI)) )** offered a $1.42 annualdividend , even as its stock moved below $7, implying a [dividend yield](http://investinganswers.com/term/dividend-yield-361) in excess of 20%. Management soon had to cut thedividend by 90%, anddividend chasers that didn't see it coming were burned. So it's important to see how operations are faring. If business has just turned south, a seemingly attractivedividend may be at risk. **4. The lowP/E trap.** Stocks with low price-to-earnings (P/E) ratios often represent the best value. But only ifearnings are flat or rising. Yet some investors buy low [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) stocks without noticing thatearnings are in the midst of a long-term decline. Internet access provider **Earthlink (Nasdaq: ELNK)** might have looked awfully tempting last year, when its shares traded for around $7 and [earnings per share ( ](http://investinganswers.com/term/earnings-share-eps-1003) [EPS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPS&selected=EPS) ) looked set to come in above $2.50. That translated to a P/E ratio below three. But remember, as a new investor, you're paying for futureearnings . And in Earthlink's case, profits are sinking fast as it loses customers. Sales are likely to fall -18% this year and another -15% next year. [EPS](http://investinganswers.com/term/earnings-share-eps-1003) is likely to be less than $1 this year, and could fall to $0.50 by 2012. Shares now trade for a richer 17 times that 2012 profit forecast, and that's no bargain. **5.Overvalued assets on thebalance sheet .** This is a twist on the first item noted in this article, that book value should be taken with a grain of salt. Many companies carry assets on their books that don't necessarily relate to actual real world values. Some investors like to cite department store retailer **Dillard's ([DDS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DDS&selected=DDS)) )** as a compelling value play, as the company is valued at $1.8 billion, but the value of its realestate holdings is $2.7 billion -- +50% higher. Yet it's unreasonable to assume that the company would find any buyers paying full value for its realestate while the world is awash in unused retail space. If theeconomy sharply improves, and many empty retail stores are re-occupied, then Dillard's would likely get moreappreciation for its realestate . But not right now. **Action to Take -->** "Stocks are cheap for a reason" is a tried-and-true investing axiom. So when you come across avalue stock , look for reasons against the stock, not for it. If you can't find any major problems among the financial statements or with investor assumptions about the future, then the [Value stock](http://investinganswers.com/term/value-stock-1427) is likely to prove rewarding.[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: 14.0843
Stock Price 2 days before: 12.9477
Stock Price 1 day before: 12.6962
Stock Price at release: 12.6815
Risk-Free Rate at release: 0.0014
| 12.5137 |
Symbol: CNSL
Security: Consolidated Communications Holdings, Inc.
Related Stocks/Topics: Markets|OHI|SKT
Title: 5 Dividend Paying Stocks Experiencing Growth
Type: News
Publication: Learning Markets
Publication Author: Unknown
Date: 2010-10-18 04:41:00
Article:
Stock Price 4 days before: 18.6936
Stock Price 2 days before: 18.7227
Stock Price 1 day before: 18.6744
Stock Price at release: 18.6619
Risk-Free Rate at release: 0.0014
| 18.367 |
Symbol: EGHT
Security: 8x8, Inc.
Related Stocks/Topics: Markets
Title: $10 Stocks Breaking Out
Type: News
Publication: Learning Markets
Publication Author: Unknown
Date: 2010-10-19 02:10:00
Article:
Stock Price 4 days before: 2.23798
Stock Price 2 days before: 2.27705
Stock Price 1 day before: 2.27827
Stock Price at release: 2.41135
Risk-Free Rate at release: 0.0014
| 3.09344 |
Symbol: IMOS
Security: ChipMOS TECHNOLOGIES INC.
Related Stocks/Topics: Markets|TSEM|CAMT|INTT
Title: 6 Tech Penny Stocks to Buy Now
Type: News
Publication: Louis Navellier
Publication Author: Unknown
Date: 2010-10-19 07:37:00
Article: Penny stock investing can be a great way to diversify one's portfolio during tough economic times. However, penny stock investing can be very risky if an investor doesn't perform the proper amount of research. When looking for the right penny stock buy, it is important to focus on strong earnings and momentum behind shares.That being said, here are six tech penny stocks that have fared very well in 2010 thus far. inTest ([INTT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INTT&selected=INTT)) )**inTest** (NASDAQ: [INTT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INTT&selected=INTT) ) is a designer, manufacturer and marketer of mechanical, thermal and electrical products used by semiconductor manufacturers. INTT works supplies products globally, and some of its high-profile clients include **Northrop Grumman** (NYSE: [NOC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NOC&selected=NOC) ) and **Texas Instruments** (NYSE: [TXN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TXN&selected=TXN) ). Over the past 12 months, INTT stock has skyrocketed 440%, compared to gains of 10% and 13% for the Dow Jones and NASDAQ. The penny stock also posted a quarterly revenue growth of 227% year-over-year in its last income statement. INTT's biggest jump came last April, when the stock climbed 107% in one month.ChipMOS Technologies ([IMOS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IMOS&selected=IMOS)) )**ChipMOS Technologies** (NASDAQ: [IMOS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IMOS&selected=IMOS) ) is a holding company that provides a range of back-end testing services for its clients. Some of these services include wafer probing, engineering testing, final testing of memory and logic/mixed-signal semiconductors. Year-to-date, IMOS has gained 100%, vastly outperforming the broader markets. With a stock price of $1.43, this penny stock is certainly affordable, and is trading well above its 52-week low of 60 cents a share. Last week, IMOS reported revenue of $48.3 million for the quarter, an increase of 31.2% from September 2009.Tower Semiconductor ([TSEM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSEM&selected=TSEM)) ) Based in Israel, **Tower Semiconductor** (NASDAQ: [TSEM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSEM&selected=TSEM) ) is an independent specialty foundry that manufactures semiconductors. Since January, Tower's stock has jumped 48.5%. Analysts are hopeful for this penny stock and have raised earnings estimates one cent to 16 cents a share this quarter after an actual EPS of 15 cents a share last quarter. Finally, company officials have been pleased by Tower's quarterly revenue growth of 108% year-over-year.Camtek ([CAMT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CAMT&selected=CAMT)) )**Camtek** (NASDAQ: [CAMT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CAMT&selected=CAMT) ) designs, develops, manufactures, and markets automated optical inspection systems and related products. Over 12 months, Camtek stock has gained 67.7%, compared to smaller gains by the broader markets. Experts are starting to predict growth for this penny stock as well, as earnings estimates were raised by a cent this quarter. A quarterly revenue growth of 66.3% year-over-year is another sign pointing to Camtek as a penny stock to buy.Microtune (TUNE)**Microtune** (NASDAQ: [TUNE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TUNE&selected=TUNE) ) designs and markets receiver solutions for cable and automotive entertainment electronics and digital television markets. Since last October, TUNE stock is up 55.1%. The penny stock saw a big gain in September, and TUNE has gained 27.2% since Sept. 1. With a stock price of $2.90, Microtune is just 15 cents removed from its 52-week high. Finally, TUNE has outperformed earnings estimates the two previous quarters. FSI International ([FSII](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FSII&selected=FSII)) ) FSI International . (NASDAQ: [FSII](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FSII&selected=FSII) ) designs, manufactures, markets and supports equipment used in the production of microelectronics. In the past calendar year, FSII has jumped 96.2%, compared to smaller gains by the broader markets. In its last income statement, the penny stock reported a net profit margin of 20.5%, which certainly has company officials pleased. FSII has outperformed earnings estimates three of the last four quarters, another reason why this penny stock should be on your buy list.As of this writing, Louis Navellier did not own a position in any of the stocks named here.
Stock Price 4 days before: 1.47422
Stock Price 2 days before: 1.39138
Stock Price 1 day before: 1.39
Stock Price at release: 1.36454
Risk-Free Rate at release: 0.0014
| 1.41491 |
Symbol: GCI
Security: Gannett Co., Inc.
Related Stocks/Topics: GOOG|Markets|MSFT
Title: Yahoo! (YHOO) Set to Report Q3, But Investors Want Answers On a Possible Takeover and Alibaba Stake
Type: News
Publication: StreetInsider.com
Publication Author: Unknown
Date: 2010-10-19 12:12:00
Article: Shares of Yahoo! (Nasdaq: YHOO) are trading lower ahead of the company's third quarter earnings report, expected out after the market closes today. Shares are down1.48% to $15.69 in early trading.The company is expected to report an EPS of $0.15 on revs of $1.13 billion. Last quarter, Yahoo! posted an EPS of $0.15 on revs of $1.6 billion, both topping views. Last year, the company had a Q309 EPS of $0.15, $1.58 billion, which blew out the Street consensus. Shares of the company have traded just about flat through the quarter, finishing about 0.6% higher at the end of September. The stock is currently down 8.2% on the year.For a simple valuation, shares of Yahoo are trading at a forward P/E of 20.9x FY11 EPS estimates, compared to 14x for AOL LLC ([AOL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AOL&selected=AOL)) ), and 19.5x for Google (Nasdaq: GOOG).Data from Bloomberg shows that 15 analysts have a Buy rating on the shares, 21 have a Hold, and one suggests to Sell. The analyst price target consensus is $18.10, with a high of $21.00 and a low of $13.25.Analyst Ratings Through the QuarterIn early July, Needham & Company pasted a Buy rating on the shares, with a $20 price target. The move boosted shares above $15 on the day.ThinkEquity also upgraded the shares from Hold to Buy in July. In August, Well Fargo started the shares with a Market Perform rating an $15 - $16 valuation range.Southridge Research started the company with a Market Perform rating and $15 price target.Also in August, Wedbush started the shares are Underperform, with a $13.25 price target. Notably, they referred to the company as YaWho? They see Yahoo! reporting an EPS of $0.15 on $1.12 billion in revs.Finally, at the end of September, Gleacher & Co. started Yahoo! at Neutral. [The stock has an attractive valuation](http://www.streetinsider.com/New+Coverage/Gleacher+%26+Co.+Resumes+Coverage+on+Yahoo!+%28YHOO%29+with+a+Neutral%3B+Right+Strategy+%26+Product+Portfolio+But+Turnaround+Takes+Time/6001184.html) , said Gleacher, but they were on the sidelines until more demonstrable signs of execution surface.SummaryBGC Partners sees Yahoo! posting an EPS of $0.16 on revs of $1.6 billion. Their revenue estimate is based on 1.5% Y/Y growth. They are confident that Yahoo! will produce earnings growth, based on tighter controls and reduced costs with Microsoft (Nasdaq: MSFT) powering their search business. Display revs should show a modest sequential growth of 1.5%, and a Y/Y increase of 19%. They see third quarter search revs of $300 million, as revs in the segment have been slowly declining from $399 million in Q210 to $331 million last quarter. BGC has a Hold rating on the shares with a price target of $16.25. [According to a note Monday](http://www.streetinsider.com/Analyst+Comments/Needham+%26+Company+Maintains+a+Buy+on+Yahoo!+%28YHOO%29%3B+Expecting+An+Encouraging+3Q10+Earnings+Report/6036084.html) , Needham & Company is maintaining their Buy rating on Yahoo!, with a $20 price target, and are expecting an encouraging earnings report. Gains should be driven by recent search market share gains, recent strengthening in the display ad market, continued margin expansion, and share repurchases.Citi is looking for Yahoo to post an EPS of $0.17 on revs of $1.6 billion. Citi believes that revenue estimates are reasonable following channel checks, with no big variations expected.Some big moves were made for the company over the last few months as well, with a $3 billion stock buyback plan kicking off the quarter, a partnership formed with Gannett ([GCI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GCI&selected=GCI)) ) to localize advertising, and their HotJobs! Segment was sold to Monster ([MWW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MWW&selected=MWW)) ) for $225 million, while Yahoo! retained Monster as its exclusive provider of career and job content on the Yahoo! homepage in the U.S. and Canada.With Apple, Google, and IBM (among others) have all beat expectations handily this quarter, investors may now be expecting a **great** quarter from the company, as good may just not be good enough.While it will be important for Yahoo! to post solid results, there will be two big topics investors will be clamoring for info on. One is the recent reports suggesting that AOL ([AOL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AOL&selected=AOL)) ) is teaming with private equity firms to buy Yahoo!. The other is its 39 percent Alibaba stake. Analysts have said the stake could be worth up to $11 billion, are see the company monetizing it although the CEO denied recent sale speculation. Yahoo! Inc. is expected to release their Q310 earnings on Tuesday, October 19, 2010, at approximately 4:00pm EDT.
Stock Price 4 days before: 12.9592
Stock Price 2 days before: 12.6962
Stock Price 1 day before: 12.5991
Stock Price at release: 12.3069
Risk-Free Rate at release: 0.0014
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