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stringlengths 370
1.06M
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Symbol: CRESY
Security: Cresud S.A.C.I.F. y A.
Related Stocks/Topics: TGS|Markets|TS|TX|BMA|TEO|EDN|GGAL|IRS|YPF|PAM
Title: Argentina: Out of the Wilderness
Type: News
Publication: Emerging Money
Publication Author: Unknown
Date: 2010-10-20 06:02:00
Article: For nearly a decade, Argentina has been isolated from international capital markets after declaring the largest sovereign debt default in history. But now the country is re-emerging. **Presidential Politics** Next year’s presidential election looms large.The 2009 mid-term elections were a staggering defeat for the ruling Kirchnerista wing of the Peronist party, which has held power since 2003. Unless current president Cristina Kirchner and her husband, ex-president Nestor Kirchner can pull a rabbit out of a hat, they are on a fast track to political oblivion. But, in the context of ** [Argentine](http://emergingmoney.com/tag/argentina)** [politics](http://emergingmoney.com/tag/politics), 12 months is an eternity and the Kirchners have shown that they will do everything they can (and some things they can’t) to maintain power. Traditionally, Argentine politicians try to cling to power through social welfare rhetoric and runaway domestic spending, as well as high (and somewhat counterintuitive) tariffs on the country’s agricultural exports: [soybeans](http://www.emergingmoney.com/markets/soybeans-at-3-month-high/), beef, an emerging wine industry. These policies cause substantial fiscal gaps; we then see tactics such as Ms. Kirchner’s 2008 nationalization of the country’s pension fund system. That move, which she justified as a response to the global economic crisis aimed at protecting investors, was actually a move to gain access to funds that would cover debt payments coming due after the massive restructuring in 2005. While she got away with it legally, she paid a price in the 2009 elections. **Desperation tactics** Unfazed (or maybe fazed) she responded to the 2009 electoral disaster with a new law that obstructs media access for her critics, but squelching the message is not enough. Argentines have a history of taking protests to the streets, en masse, by banging pots and pans if they must. Seriously, it’s called Cacerolazo --and the last time it happened was, you guessed it, 2001! This year brought another desperation tactic: the seizure of Argentina’s central bank, accomplished through the sacking of an uncooperative president and his replacement by a Kirchner ally. Barring an unforeseen reversal, Mrs. Kirchner is poised to tap in to the bank’s $6.6 billion reserves in the same way she raided the pension funds. The new bank president has been confirmed, so Mrs. Kirchner’s victory appears to be complete. **Debt Swap** Less incendiary, but no less important, was the completion of the 2005 restructuring through a new debt swap with the approximately 24% of the country’s bondholders who rejected the 2005 terms. The general terms of the new offer were unveiled in mid-April; Argentina has since received requisite regulatory approvals from the four relevant markets of Italy, Luxembourg, Japan and the United States. Nestor Kirchner was unanimously elected as the first general secretary of the new Union of South American Nations (UNASUR). The organization was created in reaction to the perceived domination of the Organization of American States by U.S. governmental interests and is intended to strengthen cooperation between the 12 member states. This will include areas such as finance and energy, which are likely to have a direct impact on various Argentine [ADR](http://www.emergingmoney.com/?s=adr&searchsubmit=) s. **The risks and the opportunities** What is there to like with regard to investments in Argentina, given the foregoing?• The inflammatory tactics of a [likely] lame duck administration cannot change the fact that Argentina possesses a huge and diverse land mass. The country is not only one of the world’s leading producers of agricultural products, it is also rich in natural resources such as coal and gas. • Despite the meltdown in 2001-2002 and Ms. Kirchner’s brazen money grabs, the country’s private banking institutions are surprisingly resilient and remain strong.• An interesting geopolitical angle and risk area has recently emerged. Several U.K. firms are drilling exploratory wells within the territorial waters of the Falkland Islands and the reaction in Argentina has been heated. Now that at least one oil discovery has been reported, this could become even more contentious -- but it could also become the biggest new field since the North Sea.Those are just some of the storylines in play. Taken together, it all adds up to a period of extraordinary volatility ahead and, for those who understand recent history and ongoing political calculations, short-term investment opportunities. **ADRs in Argentina** The easiest ways to trade this market is through ADRs; as yet, there's no Argentina-specific ETF, and regional portfolios like [ILF](http://emergingmoney.com/tag/ILF) and [GML](http://emergingmoney.com/tag/GML) are hugely overweight Brazil and Mexico. Even [LATM](http://emergingmoney.com/tag/LATM) only allocates 1.1% of its holdings to Argentina. Big names include [steel makers](http://www.emergingmoney.com/markets/china-steel-duties-help-some-us-players/) Tenaris ([TS](http://emergingmoney.com/tag/TS))) and Ternium ([TX](http://emergingmoney.com/tag/TX))), which recently [resolved problems](http://www.emergingmoney.com/stocks-etfs/stocks/tx-venezuela-will-pay-its-overdue-debt-in-few-days/) surrounding its Venezuelan operations. Local oil major [YPF](http://emergingmoney.com/tag/YPF) has a world-class exploration portfolio to play with and has been the subject of [M&A rumors](http://www.emergingmoney.com/stocks-etfs/stocks/can-shanghai-control-prices-in-buenos-aires/) over the years. The country also boasts its share of large-cap telecom carriers ([NTL](http://emergingmoney.com/tag/NTL)) is the largest by U.S. market cap) and [relatively undiscovered banks](http://www.emergingmoney.com/stocks-etfs/stocks/latin-american-trading-call-whats-beaten-up-and-over-beaten/) like [BMA](http://emergingmoney.com/tag/BMA).
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: IRS
Security: IRSA Inversiones y Representaciones SA
Related Stocks/Topics: TGS|Markets|TS|CRESY|TX|BMA|TEO|EDN|GGAL|YPF|PAM
Title: Argentina: Out of the Wilderness
Type: News
Publication: Emerging Money
Publication Author: Unknown
Date: 2010-10-20 06:02:00
Article: For nearly a decade, Argentina has been isolated from international capital markets after declaring the largest sovereign debt default in history. But now the country is re-emerging. **Presidential Politics** Next year’s presidential election looms large.The 2009 mid-term elections were a staggering defeat for the ruling Kirchnerista wing of the Peronist party, which has held power since 2003. Unless current president Cristina Kirchner and her husband, ex-president Nestor Kirchner can pull a rabbit out of a hat, they are on a fast track to political oblivion. But, in the context of ** [Argentine](http://emergingmoney.com/tag/argentina)** [politics](http://emergingmoney.com/tag/politics), 12 months is an eternity and the Kirchners have shown that they will do everything they can (and some things they can’t) to maintain power. Traditionally, Argentine politicians try to cling to power through social welfare rhetoric and runaway domestic spending, as well as high (and somewhat counterintuitive) tariffs on the country’s agricultural exports: [soybeans](http://www.emergingmoney.com/markets/soybeans-at-3-month-high/), beef, an emerging wine industry. These policies cause substantial fiscal gaps; we then see tactics such as Ms. Kirchner’s 2008 nationalization of the country’s pension fund system. That move, which she justified as a response to the global economic crisis aimed at protecting investors, was actually a move to gain access to funds that would cover debt payments coming due after the massive restructuring in 2005. While she got away with it legally, she paid a price in the 2009 elections. **Desperation tactics** Unfazed (or maybe fazed) she responded to the 2009 electoral disaster with a new law that obstructs media access for her critics, but squelching the message is not enough. Argentines have a history of taking protests to the streets, en masse, by banging pots and pans if they must. Seriously, it’s called Cacerolazo --and the last time it happened was, you guessed it, 2001! This year brought another desperation tactic: the seizure of Argentina’s central bank, accomplished through the sacking of an uncooperative president and his replacement by a Kirchner ally. Barring an unforeseen reversal, Mrs. Kirchner is poised to tap in to the bank’s $6.6 billion reserves in the same way she raided the pension funds. The new bank president has been confirmed, so Mrs. Kirchner’s victory appears to be complete. **Debt Swap** Less incendiary, but no less important, was the completion of the 2005 restructuring through a new debt swap with the approximately 24% of the country’s bondholders who rejected the 2005 terms. The general terms of the new offer were unveiled in mid-April; Argentina has since received requisite regulatory approvals from the four relevant markets of Italy, Luxembourg, Japan and the United States. Nestor Kirchner was unanimously elected as the first general secretary of the new Union of South American Nations (UNASUR). The organization was created in reaction to the perceived domination of the Organization of American States by U.S. governmental interests and is intended to strengthen cooperation between the 12 member states. This will include areas such as finance and energy, which are likely to have a direct impact on various Argentine [ADR](http://www.emergingmoney.com/?s=adr&searchsubmit=) s. **The risks and the opportunities** What is there to like with regard to investments in Argentina, given the foregoing?• The inflammatory tactics of a [likely] lame duck administration cannot change the fact that Argentina possesses a huge and diverse land mass. The country is not only one of the world’s leading producers of agricultural products, it is also rich in natural resources such as coal and gas. • Despite the meltdown in 2001-2002 and Ms. Kirchner’s brazen money grabs, the country’s private banking institutions are surprisingly resilient and remain strong.• An interesting geopolitical angle and risk area has recently emerged. Several U.K. firms are drilling exploratory wells within the territorial waters of the Falkland Islands and the reaction in Argentina has been heated. Now that at least one oil discovery has been reported, this could become even more contentious -- but it could also become the biggest new field since the North Sea.Those are just some of the storylines in play. Taken together, it all adds up to a period of extraordinary volatility ahead and, for those who understand recent history and ongoing political calculations, short-term investment opportunities. **ADRs in Argentina** The easiest ways to trade this market is through ADRs; as yet, there's no Argentina-specific ETF, and regional portfolios like [ILF](http://emergingmoney.com/tag/ILF) and [GML](http://emergingmoney.com/tag/GML) are hugely overweight Brazil and Mexico. Even [LATM](http://emergingmoney.com/tag/LATM) only allocates 1.1% of its holdings to Argentina. Big names include [steel makers](http://www.emergingmoney.com/markets/china-steel-duties-help-some-us-players/) Tenaris ([TS](http://emergingmoney.com/tag/TS))) and Ternium ([TX](http://emergingmoney.com/tag/TX))), which recently [resolved problems](http://www.emergingmoney.com/stocks-etfs/stocks/tx-venezuela-will-pay-its-overdue-debt-in-few-days/) surrounding its Venezuelan operations. Local oil major [YPF](http://emergingmoney.com/tag/YPF) has a world-class exploration portfolio to play with and has been the subject of [M&A rumors](http://www.emergingmoney.com/stocks-etfs/stocks/can-shanghai-control-prices-in-buenos-aires/) over the years. The country also boasts its share of large-cap telecom carriers ([NTL](http://emergingmoney.com/tag/NTL)) is the largest by U.S. market cap) and [relatively undiscovered banks](http://www.emergingmoney.com/stocks-etfs/stocks/latin-american-trading-call-whats-beaten-up-and-over-beaten/) like [BMA](http://emergingmoney.com/tag/BMA).
Stock Price 4 days before: 14.2837
Stock Price 2 days before: 14.2261
Stock Price 1 day before: 14.1229
Stock Price at release: 14.0974
Risk-Free Rate at release: 0.0014
| 16.1503 |
Symbol: EDN
Security: Empresa Distribuidora y Comercializadora Norte SA
Related Stocks/Topics: TGS|Markets|TS|CRESY|TX|BMA|TEO|GGAL|IRS|YPF|PAM
Title: Argentina: Out of the Wilderness
Type: News
Publication: Emerging Money
Publication Author: Unknown
Date: 2010-10-20 06:02:00
Article: For nearly a decade, Argentina has been isolated from international capital markets after declaring the largest sovereign debt default in history. But now the country is re-emerging. **Presidential Politics** Next year’s presidential election looms large.The 2009 mid-term elections were a staggering defeat for the ruling Kirchnerista wing of the Peronist party, which has held power since 2003. Unless current president Cristina Kirchner and her husband, ex-president Nestor Kirchner can pull a rabbit out of a hat, they are on a fast track to political oblivion. But, in the context of ** [Argentine](http://emergingmoney.com/tag/argentina)** [politics](http://emergingmoney.com/tag/politics), 12 months is an eternity and the Kirchners have shown that they will do everything they can (and some things they can’t) to maintain power. Traditionally, Argentine politicians try to cling to power through social welfare rhetoric and runaway domestic spending, as well as high (and somewhat counterintuitive) tariffs on the country’s agricultural exports: [soybeans](http://www.emergingmoney.com/markets/soybeans-at-3-month-high/), beef, an emerging wine industry. These policies cause substantial fiscal gaps; we then see tactics such as Ms. Kirchner’s 2008 nationalization of the country’s pension fund system. That move, which she justified as a response to the global economic crisis aimed at protecting investors, was actually a move to gain access to funds that would cover debt payments coming due after the massive restructuring in 2005. While she got away with it legally, she paid a price in the 2009 elections. **Desperation tactics** Unfazed (or maybe fazed) she responded to the 2009 electoral disaster with a new law that obstructs media access for her critics, but squelching the message is not enough. Argentines have a history of taking protests to the streets, en masse, by banging pots and pans if they must. Seriously, it’s called Cacerolazo --and the last time it happened was, you guessed it, 2001! This year brought another desperation tactic: the seizure of Argentina’s central bank, accomplished through the sacking of an uncooperative president and his replacement by a Kirchner ally. Barring an unforeseen reversal, Mrs. Kirchner is poised to tap in to the bank’s $6.6 billion reserves in the same way she raided the pension funds. The new bank president has been confirmed, so Mrs. Kirchner’s victory appears to be complete. **Debt Swap** Less incendiary, but no less important, was the completion of the 2005 restructuring through a new debt swap with the approximately 24% of the country’s bondholders who rejected the 2005 terms. The general terms of the new offer were unveiled in mid-April; Argentina has since received requisite regulatory approvals from the four relevant markets of Italy, Luxembourg, Japan and the United States. Nestor Kirchner was unanimously elected as the first general secretary of the new Union of South American Nations (UNASUR). The organization was created in reaction to the perceived domination of the Organization of American States by U.S. governmental interests and is intended to strengthen cooperation between the 12 member states. This will include areas such as finance and energy, which are likely to have a direct impact on various Argentine [ADR](http://www.emergingmoney.com/?s=adr&searchsubmit=) s. **The risks and the opportunities** What is there to like with regard to investments in Argentina, given the foregoing?• The inflammatory tactics of a [likely] lame duck administration cannot change the fact that Argentina possesses a huge and diverse land mass. The country is not only one of the world’s leading producers of agricultural products, it is also rich in natural resources such as coal and gas. • Despite the meltdown in 2001-2002 and Ms. Kirchner’s brazen money grabs, the country’s private banking institutions are surprisingly resilient and remain strong.• An interesting geopolitical angle and risk area has recently emerged. Several U.K. firms are drilling exploratory wells within the territorial waters of the Falkland Islands and the reaction in Argentina has been heated. Now that at least one oil discovery has been reported, this could become even more contentious -- but it could also become the biggest new field since the North Sea.Those are just some of the storylines in play. Taken together, it all adds up to a period of extraordinary volatility ahead and, for those who understand recent history and ongoing political calculations, short-term investment opportunities. **ADRs in Argentina** The easiest ways to trade this market is through ADRs; as yet, there's no Argentina-specific ETF, and regional portfolios like [ILF](http://emergingmoney.com/tag/ILF) and [GML](http://emergingmoney.com/tag/GML) are hugely overweight Brazil and Mexico. Even [LATM](http://emergingmoney.com/tag/LATM) only allocates 1.1% of its holdings to Argentina. Big names include [steel makers](http://www.emergingmoney.com/markets/china-steel-duties-help-some-us-players/) Tenaris ([TS](http://emergingmoney.com/tag/TS))) and Ternium ([TX](http://emergingmoney.com/tag/TX))), which recently [resolved problems](http://www.emergingmoney.com/stocks-etfs/stocks/tx-venezuela-will-pay-its-overdue-debt-in-few-days/) surrounding its Venezuelan operations. Local oil major [YPF](http://emergingmoney.com/tag/YPF) has a world-class exploration portfolio to play with and has been the subject of [M&A rumors](http://www.emergingmoney.com/stocks-etfs/stocks/can-shanghai-control-prices-in-buenos-aires/) over the years. The country also boasts its share of large-cap telecom carriers ([NTL](http://emergingmoney.com/tag/NTL)) is the largest by U.S. market cap) and [relatively undiscovered banks](http://www.emergingmoney.com/stocks-etfs/stocks/latin-american-trading-call-whats-beaten-up-and-over-beaten/) like [BMA](http://emergingmoney.com/tag/BMA).
Stock Price 4 days before: 9.09663
Stock Price 2 days before: 9.09679
Stock Price 1 day before: 9.4223
Stock Price at release: 9.62532
Risk-Free Rate at release: 0.0014
| 10.2212 |
Symbol: MFA
Security: MFA Financial, Inc.
Related Stocks/Topics: Personal Finance|SDY
Title: Your Kids Need These Investments
Type: News
Publication: The Motley Fool
Publication Author: Unknown
Date: 2010-10-20 09:05:00
Article: With the threat of [six-figure college costs](http://www.fool.com/investing/general/2010/09/22/6-stocks-to-get-your-kids-through-college.aspx) looming in the future, smart parents get as early a start on saving for their children's education as they can. But rather than looking to a single type of college savings account as the only way to save, you'll do far better taking a broader approach to setting money aside for future educational expenses. **Going through the choices** Over the past month, I've written a lot about how 529 college savings plan are a vital ingredient of a successful investing plan for parents aiming to pay all or part of their children's college costs. With significant tax breaks that include tax-free income on the money you use to pay for college, [529 plans](http://www.fool.com/how-to-invest/personal-finance/savings/2010/09/29/the-smart-solution-for-college-savings.aspx) offer unparalleled benefits to parents. With dozens of plans offering a wide variety of mutual funds and [ETFs](http://www.fool.com/investing/etf/2010/10/06/the-best-use-ever-for-these-simple-investments.aspx) , you can generally find investments that will help you create a core portfolio for your college saving. But 529 plans aren't perfect. [Investment limitations and high costs](http://www.fool.com/how-to-invest/personal-finance/savings/2010/10/13/dont-make-these-4-money-mistakes.aspx) for some plans have made some college savers question whether 529 plans are really worth the hassle. Rather than giving up on 529 plans entirely, though, the better answer is to incorporate alternatives with a good 529 plan to create the best overall saving strategy. **Understanding the alternatives** Parents have two reasonable choices beyond 529 plans to save for college. The first is the Coverdell Education Savings Account or ESA. If 529 plans are like employer-sponsored 401(k) retirement plan accounts, then Coverdell ESAs are like IRAs. Unlike 529 plans, Coverdell ESAs have almost no restrictions on what investments you can make. You can open a Coverdell ESA with most brokers, giving you the full range of stocks, bonds, funds, and even some more exotic investments. And like 529 plans, the income from Coverdell ESAs is tax-free when you use it for educational expenses.The other option is to set up a [custodial account](http://www.fool.com/how-to-invest/broker/2010/03/09/this-could-save-your-familys-future.aspx) . Differences in state law make the rules for custodial accounts slightly different from place to place, but the general idea is that you can open an account in a child's name and manage that money in whatever investments you see fit.Both of these alternatives have enough drawbacks, however, that you wouldn't want to use them as your sole college savings vehicles. Coverdell ESAs currently have a yearly contribution limit of just $2,000, and unless Congress acts, that limit will fall to just $500 in 2011. With custodial accounts, you're legally obligated to turn the money in the account over to your child at the age of majority, which is typically 21. Financial aid treats custodial accounts as available for the child's contribution to educational expenses, which can lower the amount of outside support your child receives. There's also no tax deferral for investments in a custodial account, although your child's lower tax rate may apply for part of the income the account generates. **A healthy mix** With all those pros and cons in mind, here's a three-part approach toward building a well-balanced college savings strategy: - Use low-cost 529 plans for core assets. Plans that offer index funds or ETFs are the easiest way to implement a solid [asset allocation](http://www.fool.com/retirement/assetallocation/introduction-to-asset-allocation.aspx) strategy based on your child's age and your investing temperament. - With the limited contributions allowed for a Coverdell ESA, invest in high-risk, high-reward individual stocks. For instance, fellow Fool Jordan DiPietro recently highlighted real estate investment trust **RAIT Financial** (NYSE: [RAS](http://caps.fool.com/Ticker/RAS.aspx) ) and Chinese online jeweler **Fuqi International** (Nasdaq: [FUQI](http://caps.fool.com/Ticker/FUQI.aspx) ) as [good candidates to rise strongly](http://www.fool.com/investing/high-growth/2010/10/14/double-down-on-these-home-run-hopefuls.aspx) from recent selling pressure. A similar high-risk play is **Crown Media** (Nasdaq: [CRWN](http://caps.fool.com/Ticker/CRWN.aspx) ) , which Jim Royal called out as a [potential takeover candidate](http://www.fool.com/investing/general/2010/10/12/this-stock-could-be-an-easy-double.aspx) . - If you're comfortable using a custodial account, use it to take advantage of your child's favorable low tax rates. For instance, even with modest amounts in a custodial account, [high-yield dividend plays](http://www.fool.com/investing/general/2010/10/15/10-dividend-stocks-for-the-next-decade-and-beyond.aspx)**Anworth Mortgage Asset** (NYSE: [ANH](http://caps.fool.com/Ticker/ANH.aspx) ) , **MFA Financial** (NYSE: [MFA](http://caps.fool.com/Ticker/MFA.aspx) ) , and **Linn Energy** (Nasdaq: [LINE](http://caps.fool.com/Ticker/LINE.aspx) ) can generate enough income to generate the $950 in investment income a child can earn tax-free. If you're more conservative, look into the dividend ETF **SPDR S&P Dividend** (NYSE: [SDY](http://caps.fool.com/Ticker/SDY.aspx) ) , which invests in stocks with long histories of making payouts to investors. 529 plans are a great way to save for college, but they aren't the only answer. By using custodial accounts and Coverdell ESAs as supplements to a 529 plan, you can get the best of all worlds. That's something your kids will thank you for -- eventually.Stay tuned as Dan wraps up his series on saving and paying for college next Wednesday.
Stock Price 4 days before: 24.6188
Stock Price 2 days before: 7.62613
Stock Price 1 day before: 7.72
Stock Price at release: 7.85644
Risk-Free Rate at release: 0.0014
| 9.23688 |
Symbol: ODP
Security: The ODP Corporation
Related Stocks/Topics: Markets
Title: Half-Off Stocks You Can't Afford to Ignore
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-20 12:06:00
Article: September and October sure have been kind to investors, with the major indices up more than +10% and some individual stocks up +30% to 40% since late August.Back then, it was easy to spot bargains after a summer swoon. Nowadays, it's getting harder to find stocks that represent a true bargain, so you'll have to dig deeper. That's why it pays to look at the stocks that have missed out on this rally. I went looking for stocks that trade for less than half of their 52-week high. I call them the "half-off" crowd. Let's go shopping.I recently profiled **Office Depot ([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) )** , which is starting to look like a niceturnaround play. [ [Read my take here](http://www.streetauthority.com/news/insiders-are-scooping-these-3-retail-stocks-456549) ]Office Depot has been beaten to a pulp by rival **Staples (Nasdaq: SPLS)** for more than a decade, but management now appears to understand how to more effectively compete by improving the merchandising mix, cutting unnecessaryoverhead and conducting more targeted and effective marketing. Those efforts are not yet hitting the [income statement](http://investinganswers.com/term/income-statement-1104) , but should in the coming quarters. Investors will hear about management's latest efforts when the retailer delivers quarterly results next Wednesday, October 27.I also remain quite bullish on **DG FastChannel (Nasdaq: DGIT)** , which looks very oversold, [as I noted recently](http://www.streetauthority.com/news/short-term-woes-create-compelling-value-industry-leader-456508) . Shares have rebounded +20% to $20 since then, but I still think $30 is a realistic target price as investors realize that the company's [business model](http://investinganswers.com/term/business-model-584) is dented, but not broken. That's +50% upside from here.It takes time for businesses to regain momentum, but all the pieces are in place. DG FastChannel has a vast and hard-to-steal customer base, more than $200 million invested in its technology platform, and is still well-positioned to capitalize on the changing broadcast media landscape. **Cenveo ([CVO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CVO&selected=CVO)) )**This is a good company in a bad industry -- printing. The company offers a full range of commercial printing services, including envelopes, labels and business documents, and has developed a comprehensive suite of services and products. But the still-weakeconomy has led to a slowdown in demand across the industry, with several players being forced into bankruptcy. Despite a hefty $1.3 billion [debt load](http://investinganswers.com/term/debt-load-1901) , Cenveo is still generating strong [cash flow](http://investinganswers.com/term/cash-flow-1175) . As the [economy](http://investinganswers.com/term/economy-1517) picks up, [free cash flow](http://investinganswers.com/term/free-cash-flow-1000) should rebound north of the $100 million mark, where it stood in 2008. The company's market cap value of just $337 million severely discounts that cash flow potential, due to that high debt load. As the economy rebounds and any debt concerns recede, the company should trade up to at least six or seven times that $100 million free cash flow target, implying a potential double -- or more -- from current levels. **Alvarion (Nasdaq: ALVR)**This company sells telecom network equipment that provides superfast data transmission speeds known as 4G. Telecom operators around the world have started to heavily invest in network upgrades, and Alvarion has secured an impressive slate of contracts. But the company was hard-pressed to make profits from those sales.Impatient investors grew tired of waiting for profits and shares have fallen from $14 to $2 since late 2007. At this point, the company's [market value](http://investinganswers.com/term/market-value-779) of $133 million is not far above Alvarion's net cash holdings of $91 million. But all is not lost. Recent contract wins in India and Canada should help sales rise +10% next year and help the company move back into profitability. Shares tend to trade on contract announcements, and with shares likely at a bottom, any new announcements couldyield quick gains. **Action to Take -->** These stocks are selling at a steep discount to recent highs thanks to their own missteps. Yet each has a considerable track record, and their problems are fixable. Track their comments on the upcoming slate of conference calls for signs of progress. These are the kinds of stocks to buy when improvements have begun. By the time those improvements have fully taken hold, shares will no longer be so cheap.[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: 4.76334
Stock Price 2 days before: 4.89764
Stock Price 1 day before: 4.83364
Stock Price at release: 4.66354
Risk-Free Rate at release: 0.0014
| 4.65429 |
Symbol: SD
Security: SandRidge Energy, Inc.
Related Stocks/Topics: FTEK|Markets|M|XOM|COP|LNG|PUDA|CVX|ASH
Title: Frank Curzio: Size Matters
Type: News
Publication: International Business Times
Publication Author: Unknown
Date: 2010-10-21 03:49:00
Article: Frank Curzio may focus on small-cap companies, but the Penny Stock Specialist editor understands the importance of a big-picture view when it comes to investments of any size. In this exclusive interview with The Energy Report, Frank presents some promising oil, natural gas and coal stocks with caveat emptor-"volatile markets demand extra attention."**The Energy Report:** Frank, as editor of Penny Stock Specialist, you cover a number of stocks trading under $10. But you recently wrote a report on [Exxon Mobil Corp. ( ](http://www.theenergyreport.com/pub/co/1406) [XOM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=XOM&selected=XOM) ) and its competitors for Growth Stock Wire. So, tell us what you specialize in. **Frank Curzio:** I specialize in small-cap stocks, but it's very important to look at the big picture-the macro view-to get a good read on smaller companies. For example, most analysts are now lowering estimates on Exxon due to lower natural gas prices following its recent acquisition of [XTO Energy Inc. (NYSE:XTO)](http://www.theenergyreport.com/pub/co/1550) . We have an enormous amount of natural gas in the U.S.-enough to supply consumers for more than 100 years. And producers continue to drill. Just knowing that information through looking at some larger-cap companies makes me a little nervous recommending smaller-cap natural gas companies. As for Exxon, it's trading over 10 times next year's earnings-a little more than 2% yield. I'd rather buy [Chevron Corporation ( ](http://www.theenergyreport.com/pub/co/777) [CVX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CVX&selected=CVX) ) or [ConocoPhillips ( ](http://www.theenergyreport.com/pub/co/646) [COP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=COP&selected=COP) ) . They trade at a lower multiple, pay a higher yield and, actually, are growing faster than Exxon. **TER:** Speaking of Chevron, its margins are pretty substantial with oil around $80/barrel. It's going to use some money to buy back shares starting in the fourth quarter. Chevron's one of a number of companies that has announced stock-repurchase programs in recent months. Do these buyback programs form an investment thesis among oil companies?**FC:** Not for all oil companies. Exxon buys stock back every single quarter. In fact, it bought back $8 billion worth when the stock traded at $95, which was its all-time high in 2008. Some companies announce buybacks and don't follow through on them. Companies also use those buybacks to enhance earnings. For example, Exxon's buybacks last quarter was one reason the company beat analysts' estimates. Chevron is announcing a new buyback. So, I think that's a good thing. I think management has this one right and I think Chevron's cheap. Hopefully, management will buy some of that stock down at these levels.However, I'd rather see oil companies use cash to raise their dividends, especially if I'm a shareholder because that's what The Street is craving. That's why Microsoft jumped on rumors about its special dividend. The market's really craving yields right now. Instead of buybacks, which can be announced and take place anytime over a two-year span-and sometimes just expire-I'd rather see companies increase the dividend. That has an immediate impact on the stock. As a shareholder, you'll probably see a lot of those energy companies go higher if they raise dividends. **TER:** Are there some names out there that recently upped their dividends that you believe are better buys as a result? **FC:** They're not necessarily better buys. I think the valuations will stay the same but interest rates are very low right now. It's very difficult to find yield. For retiring people, it's one of the most difficult environments ever. I'm more of a younger guy, so it doesn't really hurt me as much. So, from a stock point of view, it's not necessarily that the fundamentals are going to be that much better; but I think the multiples will go higher. And they'll deserve that higher multiple because there's a lot of cash-particularly in the bond market right now that wants to come into the stock market.You're going to see dividend yields rise and money will flow into some of these stocks. Again, Microsoft is a good example. A lot of the staples continue to raise their dividends even though their margins aren't as high. You see them raise those dividends, and money is flowing into these stocks. So, from a valuation standpoint, it's not so much that investors are saying: "Hey, I want to invest in that." But you're going to see the stock move higher because people are just craving yields and they're willing to pay up for those yields. **TER:** Are there some oil and gas (O&G) names that have started a dividend or upped dividends?**FC:** Other than Chevron, we've seen a lot of large-cap oil companies buy back stock for a while now. But you're going to see that from a lot of the large caps. The mid caps are really focused on growth, so they're putting their money into more exploration. So, from a large-cap perspective, it's Chevron, Conoco and Exxon; but again, Exxon's been doing this for a while. And I really wouldn't use that as an indicator to buy Exxon. **TER:** Oil's down to $80/barrel today, and $80 oil isn't overly flashy. It is, however, providing healthy margins for low-cost producers and relatively good margins even for mid- to high-cost producers. What sort of general oil investing advice are you giving your readers right now? **FC:** Oil provided healthy margins at more than $80/barrel; we'll see if it can resume-and maintain-those levels after China's interest-rate hike yesterday. Again, it's a question of how long we can stay the re. Fundamentally, we're seeing drawdowns in inventory based on the latest data. That's a positive. And strong manufacturing data from the U.S. and China-the two biggest oil-consuming nations-is another positive.High oil prices don't matter if the dollar rises. The USD has been collapsing from quantitative easing 2 (QE2). I think the government's going to come in with more, which is why we were seeing a real surge in commodities. But the USD gained on China's rate move, so we're now seeing an oil price pullback off prior eight-week highs. Investors should definitely pay attention to the dollar. **TER:** So, you're saying a high dollar means higher costs. **FC:** No, not higher costs. A higher dollar is not good for commodities in terms of price movement. When the dollar rebounds, you see commodities come down, as we've just seen with China's rate hike. Prior to that, commodities were on fire with gold reaching new all-time highs repeatedly over the course of a few weeks, silver hitting a 30-year high and copper really surging. You saw that push oil higher, too. It had really moved up over the last several weeks before China upped interest rates, which drove oil prices down 2% yesterday. So, again, I'd definitely pay attention to the dollar. **TER:** Can you give us a few exploration and production (E&P) names you're following in Penny Stock Specialist currently?**FC:** Sure. One company, [Magellan Petroleum Corp. ( ](http://www.theenergyreport.com/pub/co/2291) [MPET](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MPET&selected=MPET) ) , is a small oil and gas play with a market cap of about $100 million ([M](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=M&selected=M)) ), $33M and no debt. It's nice to see a micro-cap O&G company that has very little debt and a lot of cash. Bill Hastings is the CEO. He took the job in 2008 and, since then, the stock's been on fire. Bill is a 30-year veteran of the industry who's led oil teams of more than 1,000 people. He can work anywhere he wants and make a ton of money. But he decided to become CEO of this tiny oil company. When I met him at a meeting, I asked him why, because I'm familiar with this company. My late dad followed the company for about 20 years as a portfolio manager. His name was also Frank Curzio. He was on CNBC and quoted often in major financial newspapers. When I asked Bill why he took the company over, he said his dream was to start an oil company from the bottom and build it up into a mid-cap company. It's something I love to hear, because he wasn't just there for the money-he was there for the long term.As soon as Bill became CEO, he decided to sell non-core assets and put his cash to work buying properties in Montana and the Bakken Shale. Magellan also signed an agreement with the largest methanol producer in the world- [Methanex Corp. (NASDAQ:MEOH; TSX:MX; SSE:METHANEX)](http://www.theenergyreport.com/pub/co/3101) -to operate an Australian plant to supply China with methanol. So, it's a long-term plan that won't materialize for another two to four years. But I really like the direction in which the company is going. From a fundamental point of view, I believe Magellan is worth more than $4 based on its assets, cash on hand and gas sold to its customers. I would buy it under $2/share; today it's trading around $1.98. **TER:** In your newsletter, you likened Bill Hastings taking this position to that of the Yankees' starting shortstop going into the minors. **FC:** Yes. Though I've been familiar with Magellan for a long time, it really had been off my radar up until the point I saw Bill come to the company. So, I did a little research and discovered the guy had been in the business for 30 years. When you're in the oil business for 30 years, you can work behind a desk for any oil major you want and make a high, six-figure salary. This guy is getting his hands dirty again going with this small cap. He's a humble guy, a good CEO and he reports news whether it's good or bad. I love that. We have clarity on the company, something we didn't have in the past. **TER:** What's the catalyst for growth?**FC:** I base its catalyst for growth on the simple fact that it's the Bakken Shale-one of the large shale areas. A lot of the large caps are getting in. Longer term, Magellan plans on selling to China, which is a huge market for methanol. And the plant's Australian location provides a direct route to China, which is great. **TER:** What other E&Ps do you like?**FC:** Another company, [SandRidge Energy, Inc. ( ](http://www.theenergyreport.com/pub/co/2555) [SD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SD&selected=SD) ) , which has been all over the place, just announced a takeover that pushed the stock down a lot; but the stock's come roaring back. I believe it was trading at $35/share not long ago, and it went all the way down to $4. Now, it's about up to $6. It's a great play due to its [Arena Resources Inc. (NYSE:ARD)](http://www.theenergyreport.com/pub/co/1641) takeover, which will provide two revenue streams from natural gas and oil. And its high debt position won't be a concern going forward. I like the company and think it can turn around. SandRidge reminds me of [Ashland Inc. ( ](http://www.theenergyreport.com/pub/co/3054) [ASH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ASH&selected=ASH) ) , a chemical company that really got beat up in late 2008. It went from $50/share to $7, and then $6 after announcing a major acquisition. We were able to pick it up when it went all the way down to $5. It was risky at the time but had no short-term debt concerns. Once the synergies of this deal are realized, the stock is going to take off. Today it's $50. **TER:** Something you do that many analysts are hesitant about is cover companies that operate in China, some of which list in the U.S. but are primarily China-based. How do you determine which of these companies to write about?**FC:** I just came back from a 10-day trip to China in August where I visited all the usual places-Hong Kong, Shanghai and Beijing; but I wanted to get a better picture of China, so I visited Shenzhen and Xian. I can tell you firsthand that the growth there is absolutely phenomenal. Wages are rising and jobs aren't leaving China-they're moving inland. That's creating a rising middle class and a huge wave of construction wherein builders work around the clock. So, I think you should have exposure to that economy.In terms of finding stocks there, you really have to be careful in the small-cap space. China is a conservative nation that's not nearly as leveraged as the U.S. So you're going to see strong balance sheets for most of these companies. But I want to see strong growth on both the top and bottom line. Where possible, I want to see the insider buying that reduces downside risk (if key insiders are buying at current levels). I also look for experienced management-that's where I start. China is a much different economy; it's kind of like the U.S. in the '40s and '50s. **TER:** But are you looking for a certain multiple threshold? Are you looking for cash flow? **FC:** Well, you're going to see strong cash flow and fundamentals. Many Chinese companies have these qualities. But I think you have to look a little deeper to ascertain where else the company has exposure. You have to look at what's driving its growth (e.g., stock price moves over the prior 12 months) to see where it went down. You're not going to see charts that go straight up over those 12 months. Small caps, particularly, are all over the place. If you see the stock rise or fall 20%, find out why. Is it because of earnings? If it is, you can go back to the [earnings conference call](https://www.nasdaq.com/market-activity/earnings) on the company's website to identify what investors want to see in the company.With Chinese companies, you really have to go that extra mile. You can access free conference call transcripts on Reuters and other sites. But you really have to do a little bit more digging; the fundamentals are positive, so you need to make sure they're as accurate as possible. Hopefully, you can find a company that is audited by one of the Big 4 firms. Some are; some aren't. Those are the steps I take to determine if a company's share price can go a lot higher. **TER:** What about oil versus gas in China? Natural gas prices are certainly higher there. But there's not enough to go around, so it's importing liquefied natural gas ([LNG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LNG&selected=LNG)) ). Is that a game changer for Chinese and American O&G plays?**FC:** It does change the game a little bit. I would go into the natural gas sector in China quicker than I would here in the U.S. because we have a ton of supply. But I really look at fundamentals. **TER:** What are some Chinese companies that you like?**FC:** One company I really like is called [Puda Coal Inc. ( ](http://www.theaureport.com/pub/co/2859) [PUDA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PUDA&selected=PUDA) ) . China uses massive amounts of coal; in fact, coal provides more than 70% of China's energy needs. I'm sure many of your readers know that about China, but what they don't know is that China sees more mining deaths than any other place in the world. Most of these deaths come from small mines operated by underground millionaires who don't bother with safety inspections. The government is cracking down on these small coal mines by forcing sales of their mines to larger players. The government calls these companies "consolidators," of which Puda Coal is one. It's able to buy these mines at $0.30 on the dollar. Earnings from these mines won't hit Puda's bottom line for another six to nine months. In the meantime, Puda's normal coal-washing operations are on fire. The company beat its last-quarter earnings by about 50%. And, over the last 12 months, Puda was able to generate $260M in sales from its coal-washing business alone. Going forward, half of its revenues will come from coal mining-which provides much, much higher profit margins. Puda Coal is an incredible, under-the-radar play; and I think its earnings will more than double once mining operations are up and running next year. **TER:** That's fantastic. What about some other Chinese plays?**FC:** One company I like is [Fuel Tech, Inc. ( ](http://www.theenergyreport.com/pub/co/2722) [FTEK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FTEK&selected=FTEK) ) , which makes fuel technology to reduce emissions in its coal-fired plants. The company has small operations in China that are expanding rapidly. Its earnings last quarter were very strong; Fuel Tech is a great company, and it's been doing quite well lately. **TER:** Do you have some parting thoughts on the oil and gas sector in general?**FC:** I mentioned a lot of companies today. Investors just need to be patient with entry points. When the S&P 500 goes down 6% in August and up 8%-9% in September, you're going to see massive fluctuations no matter what a stock's fundamentals look like. So, if you're going to buy a lot of these stocks, definitely use stop losses and be patient on your entries. You might not see wide fluctuations in the large-cap space, but small caps could see 15%-20% price movements over the next 12 to 18 months. Be patient, and scale into these positions.Frank Curzio is the editor of [Penny Stock Specialist](http://www.stansberryresearch.com/pub/pst/)-an investment advisory that focuses on stocks trading under $10-and its exclusive [Phase 1 Investor](http://www.stansberryresearch.com/pub/dil/) advisory. With more than 15 years of investing experience, Frank is the latest addition to the Stansberry and Associates team. Before joining Stansberry, Frank wrote a newsletter on under-$10 stocks for The Street. He's also been a guest on various programs, including Fox Business News and CNBC's The Kudlow Report and The Call and is a featured guest on CNN Radio. He's also been quoted in financial publications-both online and off-and has enjoyed numerous mentions on Jim Cramer's Mad Money. Frank's "S&A Investor Radio" is one of the most widely followed financial broadcasts in the country, and his investment strategies-value, growth, top-down and technical analysis-have regularly produced 200%-500% winners for his subscribers over the past 15 years.Want to read more exclusive Energy Report interviews like this? [Sign up](http://www.theenergyreport.com/cs/user/print/htdocs/38) for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our [Expert Insights](http://www.theenergyreport.com/pub/htdocs/exclusive.html) page. **DISCLOSURE:**1) Brian Sylvester of The Energy Report conducted this interview. He personally and/or his family own 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) Frank Curzio: 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. Streetwise - [The Energy Report](http://www.theenergyreport.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 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]](mailto:[email protected])
Stock Price 4 days before: 5.3722
Stock Price 2 days before: 5.51482
Stock Price 1 day before: 5.25399
Stock Price at release: 5.38221
Risk-Free Rate at release: 0.0013
| 5.25 |
Symbol: CSIQ
Security: Canadian Solar Inc.
Related Stocks/Topics: Markets|TAN
Title: Why China’s Solar Sector Will Suffer Under Currency Tensions
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-10-21 05:57:00
Article: ** [Jim Trippon](http://www.chinastockdigest.com/) submits:**One of China's star stock sectors is under fire and unlikely to emerge unhurt in the long run.The Chinese green energy sector had been a top performer until this weekend. But politics got in the way. The sector has fallen victim to currency politics between Washington and Beijing. On Friday, the U.S. Treasury was due to report on whether it would investigate China for being a "currency manipulator". The Obama administration is under heavy pressure to deal with complaints about job losses to China as mid-term elections approach. But to the surprise of some, Treasury Secretary Tim Geithner took a soft line with Beijing.The Treasury delayed the release of a report on whether China "manipulates" its currency. Noting that the yuan has climbed more than 1 percent a month since Sept. 2nd, Geithner relented. The Treasury said this pace, "if sustained...would help correct" what the U.S. considers an undervalued currency.Geithner had warned that branding China a manipulator wouldn't accomplish anything. In fact the consequences of such a label could worsen the currency wars that are brewing among many nations - not just between China and the U.S.But, the U.S. did not let trade tensions pass without firing a shot across China's bow. In a good cop/bad cop routine, the U.S. aimed its ire at China's much vaunted green energy sector. **Shooting Down China's Star** For more than a month, the Obama administration has come under pressure from the United Steel Workers to crack down on Chinese green technology products. The USW accuses China of blocking access to materials used in green technologies, illegally linking subsidies to export sales, curbing imports and demanding that foreign investors hand over technology secrets. The USW also accused China of providing more than $216 billion worth of subsidies to green tech makers. The union charges that Chinese subsidies amount to "more than twice as much as the U.S. spent in the sector, and nearly half of the total 'green' stimulus spent worldwide".With America's green energy industry lagging, Obama acted. U.S. Trade Representative Ron Kirk took up the complaint. It alleges that China's policies have caused the annual U.S. trade deficit in green-technology goods. It accuses China of being the top contributor to the U.S. global trade deficit in the sector. China denies the allegation, calling it groundless and irresponsible.The U.S. decision caused steep losses in the Chinese solar sector.Now that China's green energy sector has become embroiled in the currency wars, shares should be affected for some time to come. Investors will be wary of a sector that could be hit at any time by trade sanctions or other measures.What's Next?The U.S. plans to pressure Beijing to continue edging the value of the yuan upward. America also expects to have allies at a meeting of foreign ministers from the Group of 20 nations next week in South Korea, and at a summit there in November. As I've mentioned before, there is a danger of a currency war.The U.S. isn't alone in feeling that China has undervalued its currency. Several other countries including Japan and Brazil have taken measures to drive the values of their currencies down. The U.S. policy of "quantitative easing", better known as printing money, is another strategy to weaken to greenback, making U.S. exports more competitive.As for green energy stocks, the timing of the two U.S. actions suggests currency tensions and Chinese green stocks are now linked. Sorting out a new global of regime currency valuation won't be easy. And it won't be quick. For the time being, we can expect China's solar stocks to linger under a cloud of currency tensions. **Disclosure:** No positionsSee also [BHP Ore Production Could Drive Gains](http://seekingalpha.com/article/233900-bhp-ore-production-could-drive-gains?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 15.4695
Stock Price 2 days before: 15.5033
Stock Price 1 day before: 14.9792
Stock Price at release: 15.262
Risk-Free Rate at release: 0.0013
| 14.6148 |
Symbol: JKS
Security: JinkoSolar Holding Co., Ltd.
Related Stocks/Topics: HTHT|Markets
Title: China New Borun: Born to Run or Destined to Fall?
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-10-21 06:54:00
Article: ** [Alfred Little](http://labemp.wordpress.com/) submits:****China New Borun Corporation****([BORN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BORN&selected=BORN)) )** priced its IPO on June 11, 2010 at $7 per share. The stock subsequently fell as low as $4.93 and then more than quadrupled in price to as high as $20.50 last week, making it arguably the top performing IPO of 2010 so far, outperforming JinkoSolar ([JKS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JKS&selected=JKS)) ), SouFun Holdings ([SFUN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SFUN&selected=SFUN)) ), Hisoft Technology ([HSFT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HSFT&selected=HSFT)) ), Charm Communications ([CHRM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CHRM&selected=CHRM)) ), and China Lodging Group ([HTHT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HTHT&selected=HTHT)) ) among others.BORN's Chairman and CEO Mr. Jinmiao Wang first got into the edible alcohol business in 2004. BORN's first production line was completed in 2006 and its Daqing newest production line was completed in 2009. Both new production lines were designed by Guangdong Zhongke New Energy Science and Technology Co., Ltd. ( 广东中科天元新能源科技有限公司 ). In fact, BORN CEO Wang does not have very strong knowledge or experience in the edible alcohol industry. Wang's previous business experience was in the sea salt mining industry. So d espite its fabulous debut, as I will show below, there are serious problems with BORN.Industry experts I consulted in China believe BORN's historical and current gross profit margins are exaggerated by more than 3X. Earnings per share are exaggerated by 4-5X. Three key facts support this view:1. **Outdated Technology** - Contrary to BORN's claims in its SEC filings, its wet process production technology is outdated, inefficient and environmentally unfriendly due to its over-reliance on toxic chemical solutions and resulting large volumes of waste water production.Today, all efficient plants use an industry standard semi-dry technology that is much more energy efficient, requires lower capital investment and dramatically reduces pollution. I could find no major producers, other than BORN, using wet process production technology.To resolve its inefficiency, BORN's CEO and CTO Mr. Wei Qi (who used to work for Shandong Jiujiu edible alcohol, a company that went bankrupt a couple of years ago due to poor performance) decided to upgrade the technology in both plants to the semi-dry method. BORN's Daqing plant began being upgraded in July, 2010. BORN's Shandong plant is just starting upgrades. According to industry sources, BORN contracted all the upgrades to Henan Sheng Wantongtong Machine Manufacture Corp., Ltd. ( 河南省万通通机械制造有限公司 ) ******Understated Raw Material Pricing** Dividing 4,150 by 2.98 shows BORN paid RMB 1,393 per ton of corn purchased in Q1. Using the same calculation BORN's average corn cost for the second quarter was RMB 1,406. BORN stated it bought all its corn for both plants in Heilongjiang province.Table 1 (below) shows the historical market price of corn in Heilongjiang in Q1 was RMB 1,398. This is consistent with the average price BORN reported paying. **Table 1 - Heilongjiang corn price trend** Table 2 (below) shows the historical market price of corn for reference in Shandong, which is substantially higher, and explains BORN's decision to purchase corn in Heilongjiang and ship it to Shandong. **Table 2 - Shandong corn price trend** However, BORN incurs substantial cost packaging and shipping corn from Heilongjiang to its plant in Shandong. Based on price quotes I obtained from three railway shipping companies, the average price from Daqing to Shouguang, including packaging, loading, unloading and rail transport charge is RMB 200-240 per ton. BORN's Shandong plant's capacity of 160,000 is approximately 61% of BORN 260,000 total capacity and therefore consumes approximately 61% of BORN's total corn supply.Taking 61% of the conservative estimate of RMB 200 per ton shipping cost results in an additional RMB 122 per ton to BORN's reported Q1 and Q2 corn cost **. Therefore I estimate BORN's true per ton cost of corn was at least RMB 1,515 in Q1 and RMB 1,528 in Q2, resulting in an increase of cost of goods of RMB 122 X 2.98 X 60,700 tons of alcohol sold = RMB 22,068,092 for Q1 and RMB 122 X 2.98 X 65,410 tons of alcohol sold = RMB 23,780,460 for Q2. ** 3. **Overstated Corn Germ by-product sales** - Neither of BORN's plants are extracting and selling significant quantities of corn germ by-product according to the expert consultant I hired from a competitor in Jilin who visited both plants. The expert found that the corn germ extraction facilities were not operational nor had they been used in quite some time due to high energy costs and pollution problems.Additionally, analysis of the fat content of the DDGS by-product BORN sells shows it contains 8-10% fat indicating the high fat corn germ was not extracted, whereas DDGS after corn germ is extracted contains only 3-4% fat.Accordingly, BORN's 8-10% fat DDGS selling prices in Q1 of RMB 1,789 and Q2 of RMB 1,767 disclosed in its SEC filings are consistent with local published selling prices in its primary markets (see Table 3 below). **Table 3 - DDGS price trend** However, as a result of BORN not extracting any significant amounts of corn germ from its DDGS, its claim of Q1 sales of RMB 42.78 million and Q2 RMB 51.38 million corn germ are impossible. ******Based on 1-3 above, I will now calculate adjusted Gross Margin and Net Income for BORN:** For Q1 and Q2, I deducted RMB 42,783,160 and RMB 51,381,930, respectively, of fabricated corn germ sales from BORN's reported total sales of RMB 388,768,417 and RMB 432,469,590 to get adjusted sales of RMB 345,985,257 and RMB 381,087,660.For Q1 and Q2, I add RMB 22,068,092 and RMB 23,780,460, respectively, of omitted shipping costs to BORN's reported total COGS of RMB 301,674,443 and RMB 330,324,880 to get adjusted COGS of RMB 323,742,535 and RMB 354,105,340.Deducting adjusted COGS from adjusted sales results in adjusted Q1 and Q2 gross profits of RMB 22,242,722 and RMB 26,982,320, respectively. **For Q1 and Q2 the adjusted gross profit margins are therefore 6.43% and 7.08% versus 22.4% and 23.6% BORN reported in its SEC filings. **Based on these adjustments, BORN's pre-tax income for Q1 and Q2 should be RMB 13,939,058 and RMB 13,675,440, respectively. BORN is fully taxed at 25% resulting in adjusted Q1 and Q2 net income of RMB 10,454,294 and RMB 10,256,580.Setting aside the earnings distributed to preferred shareholders and dividing by the weighted average 14,847,811 and 17,238,402 ADS shares outstanding in Q1 and Q2, respectively, results in earnings per share of RMB 0.70 and RMB 0.60. Converting earnings per share from RMB to USD at the average exchange rate during each period **results in $0.10 and $0.09 EPS in Q1 and Q2, respectively, compared to $0.43 and $0.46 BORN reported in its SEC filings. ** **Going forward, BORN faces two additional challenges:****** - **Lack of high quality customer base -** BORN is in a rapid expansion stage. Yet all of BORN's current customers are small and medium sized "baijiu" producers in Heilongjiang and Shandong province. Surprisingly, even though BORN claimed to be the second largest edible alcohol producer in China it has yet to sell products to any top tier "baijiu" producers. BORN nevertheless claims it will utilize its added capacity to target major "baijiu" producers, but it is hard to imagine it can enter this market easily since it has not succeeded to date generating sales to large producers such as Moutai (SHE: 600519, Luzhou Laojiao (SHE: 000568) and Wuliangye (SHE: 000858). Future capacity utilization could therefore be constrained. - ******Questionable legal restructuring** - BORN's legal restructuring was very aggressive. The company took a series of complicated steps to complete its offshore reorganization. The "circular 10" or so called "M&A" rules issued by the Chinese government on September 8, 2006 require PRC citizens who intend to set up offshore entities and use them to acquire domestic entities to get approval from MOFCOM (Ministry of Commerce). If PRC citizens intend to apply for foreign listing of newly setup offshore entities they need to get CSRC (China Securities Regulatory Commission) approvals. BORN's Chairman and CEO somehow obtained a foreign citizenship for his mother and used his mother's identity to set up the offshore entity. BORN's PRC counsel, B&D Law, claims "M&A" rules don't apply to this type of arrangement. However, all reputable Chinese counsels I have consulted would never approve this type of legal restructuring. It is very risky since the CEO's mother is his direct relative. CSRC and MOFCOM could someday deem this restructuring a brazen violation of "M&A" rules. **Conclusion:** Obviously I have serious concerns about BORN's past and present financials. In the best case scenario, o nce BORN completes costly upgrades of its production method its gross margins could rise up from today's miserable 7% toward the 11%-16% industry average gross margin , but of course nowhere near the fanciful 22-23% gross margins they have reported to investors.I think BORN is yet another lesson to U.S. investors who rely solely upon a company's SEC filings and press releases for making investment decisions. Investors need access to industry experts in China to properly evaluate a company like BORN. **Data source: [FeedOnline.cn](http://feedonline.cn/)****Disclosure:** No positionsSee also [Digging Into Rare Earth Investments: Behind the Sudden Surge in Popularity](http://seekingalpha.com/article/233623-digging-into-rare-earth-investments-behind-the-sudden-surge-in-popularity?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 30.1229
Stock Price 2 days before: 28.8628
Stock Price 1 day before: 28.0601
Stock Price at release: 28.9867
Risk-Free Rate at release: 0.0013
| 26.0181 |
Symbol: IRS
Security: IRSA Inversiones y Representaciones SA
Related Stocks/Topics: TGS|Markets|ILF|PIE|GOL|TEO|BMA|APA|YPF
Title: ETFs and ADR(stocks) ideas for Argentina
Type: News
Publication: Emerging Money
Publication Author: Unknown
Date: 2010-10-21 07:38:00
Article: While there is no pure [ETF](http://www.emergingmoney.com/?s=etf&searchsubmit=) play for [Argentina](http://emergingmoney.com/tag/Argentina), there are at least two that offer various blends of stocks from [Argentina](http://www.emergingmoney.com/markets/argentina-economic-momentum-is-solid/), Brazil, Chile, China and others: PIE and ILF.The iShares S&P Latin America 40 Index Fund ** [ILF](http://emergingmoney.com/tag/ilf)** reflects results that correspond closely to the performance, before fees and expenses, of the S&P Latin America 40 index. The fund typically invests at least 90% of assets in securities of the underlying index and in depositary receipts representing securities of the underlying index. The underlying index is comprised of selected equities trading on the exchanges of five Latin American countries. The ETF includes highly-liquid securities from major economic sectors of the ** [Mexican](http://emergingmoney.com/tag/Mexico)** and South American equity markets. The fund is non-diversified. [Image](http://data.moneycentral.msn.com/scripts/chrtsrv.dll?Symbol=ILF&C1=1&C2=&C3=1&C4=3C9=1&Width=352&Height=184&legend=0&banner=2) The PowerShares DWA Emerging Markets Technical Leaders fund (** [PIE](http://emergingmoney.com/tag/pie)**, [quote](http://www.emergingmoney.com/wp-content/themes/pixeled/quotes.php?s=pie&x=0&y=0)) generally reflects price and yield performance of the index called the Dorsey Wright [Emerging Markets](http://www.emergingmoney.com/markets/) Technical Leaders index. The fund typically invests at least 90% of total assets in the stocks that comprise the underlying indexes, [ADR](http://www.emergingmoney.com/?s=adr&searchsubmit=) s and GDRs based on the stocks in the underlying index.It invests at least 80% of total assets in securities of emerging economies within Dorsey Wright & Associates' classification definition, excluding companies listed on a U.S. stock exchange. The fund is non-diversified and options are not available for this security. [Image](http://data.moneycentral.msn.com/scripts/chrtsrv.dll?Symbol=pie&C1=1&C2=&C3=1&C4=3C9=1&Width=352&Height=184&legend=0&banner=2) Without an Argentina-specific ETF, it might be worth looking at individual stocks trading on the New York Stock Exchange as ADRs. But which sectors are represented here? Our screens picked up several key industry groups that are either based in ** [Argentina](http://emergingmoney.com/tag/argentina)** or doing a lot of business there. All have ADRs that are relatively liquid. ** [](http://www.emergingmoney.com/?s=airline&searchsubmit=)**** [Airlines](http://www.emergingmoney.com/?s=airline&searchsubmit=)**: ** [GOL](http://emergingmoney.com/tag/gol)** , [LFL](http://emergingmoney.com/tag/lfl) -- [in-depth](http://www.emergingmoney.com/picks/trading-argentina-the-airlines/) [Banking](http://www.emergingmoney.com/?s=bank&searchsubmit=): ** [BFR](http://emergingmoney.com/tag/bfr)** , ** [BMA](http://emergingmoney.com/tag/bma)** -- [in-depth](http://www.emergingmoney.com/picks/trading-argentina-banks/)[Beverages](http://www.emergingmoney.com/?s=beer&searchsubmit=): ** [ABV](http://emergingmoney.com/tag/abv)** -- [in depth](http://www.emergingmoney.com/stocks-etfs/stocks/trading-argentina-beverages/)[Communications](http://www.emergingmoney.com/?s=telecom&searchsubmit=): ** [AMV](http://emergingmoney.com/tag/amv)**, ** [TEO](http://emergingmoney.com/tag/teo)**, ** [NIHD](http://emergingmoney.com/tag/nihd)** -- [in-depth](http://www.emergingmoney.com/picks/trading-argentina-communications/)[Energy](http://www.emergingmoney.com/?s=oil&searchsubmit=): ** [TGS](http://emergingmoney.com/tag/tgs)** , ** [APA](http://emergingmoney.com/tag/apa)** , ** [YPF](http://emergingmoney.com/tag/ypf)** -- [in-depth](http://www.emergingmoney.com/picks/trading-argentina-energy/)** [Real Estate](http://www.emergingmoney.com/?s=estate&searchsubmit=)**: ** [IRS](http://emergingmoney.com/tag/IRS)** - [in-deptth](http://www.emergingmoney.com/picks/trading-argentina-real-estate/) Note that several of these stocks (GOL, LFL, ABV, AMV, NIHD and the U.S.-based APA) support relatively liquid [options](http://emergingmoney.com/tag/options) trading. The rest do not.
Stock Price 4 days before: 14.2307
Stock Price 2 days before: 14.1229
Stock Price 1 day before: 14.0974
Stock Price at release: 14.1961
Risk-Free Rate at release: 0.0013
| 15.9442 |
Symbol: JBLU
Security: JetBlue Airways Corporation
Related Stocks/Topics: UAL|Markets|AMR|DAL
Title: Bulls refuse to take off with airlines
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-10-22 03:20:00
Article: Airlines have been flying high on strong earnings, but many option traders aren't on board.optionMONSTER's tracking systems have been detecting heavy call selling and put buying in the sector, reflecting a generally skeptical attitude by traders. [DAL](http://www.optionmonster.com/cms/commentary/images/dalpre102210.png) Delta Air Lines got the earnings season off to a bullish start on Wednesday by crushing analysts' forecasts and indicating that fares were climbing. That marked a positive change for an industry plagued by decades of price deflation, overcapacity, and perennial losses.The stock leapt 12 percent on the news, followed by a 4 percent gain the next day. US Airways and AMR, the parent of American Airlines, also beat earnings estimates.Delta was the busiest name in the option market, fueled by heavy put activity. One investor bought back a short position in the January 10 and 9 calls while selling the January 12.50s, indicating that he or she sees only limited risk of the shares falling.Also noteworthy, investors aggressively sold the November 13 and November 12 calls, betting that Delta will drop or remain little-changed through expiration on Nov. 19.United Continental saw heavy call selling as well, most of which occurred after the stock traded over $28 for the first time since March 2008 and then reversed lower. Similar trades occurred in AMR's December 8 and November 7 calls, although volume was below open interest in both. That means positions had been opened previously, so yesterday's activity may have resulted from the earlier trades being closed as well as new positions being opened. Regardless, the selling reflects a belief that AMR has limited ability to rally from current levels.JetBlue Airways also tried to break to a new 52-week high this week before traders began selling calls. More than 7,700 January 6 calls were sold versus open interest of 2,218 contracts, indicating a strong belief that the stock will remain grounded into the New Year.More than 126,000 option contracts traded in the industry yesterday, which is more than twice the average daily volume.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 6.59901
Stock Price 2 days before: 6.61172
Stock Price 1 day before: 7.1992
Stock Price at release: 6.70539
Risk-Free Rate at release: 0.0013
| 6.73389 |
Symbol: CENX
Security: Century Aluminum Company
Related Stocks/Topics: JBHT|Markets|F|AA|AMR|UAL|DAL
Title: 4 Industries Profiting from Deflation
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-22 12:34:00
Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photoDeflation has become a central concern these days. The Federal Reserve sweats the notion of falling prices across theeconomy , as it tends shrink asset values even as debts against those assets remain constant. And companies hate [deflation](http://investinganswers.com/term/deflation-1160) , because it usually signals weakening revenue, margins and profits. For many firms, it's simply impossible to even think about raising prices. But in a few industries, pricing power has come back, and investors may be underestimating the futureearnings power that can result. **Fewer planes means more pricing power** When the airlines experienced the turbulence of 2008, they took a lot of planes out ofcommission . And as soon as theeconomy rebounded and demand for air travel started to build, many assumed that the airlines would simply bring all those mothballed planes back on line. It hasn't happened. Instead, airlines saw this as an opportunity to not shoot themselves in the foot, which they had done every time before.A quick glance at **Delta 's ([DAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DAL&selected=DAL)) )** recent quarterly results spells out the benefits of restrained capacity. The nation's largest carrier boosted the number of planes in service by 2%, but demand was more robust than last summer, helpingDelta to boost revenue per passenger from $12.22 per mile flown to $14.22 -- a +16% jump.The payoff: Analysts at Bank of America note that the publicly-traded U.S.-based airlines likely earned a record $2.4 billion in the third quarter, up from a $260 million loss last year. Industry laggard **AMR ([AMR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMR&selected=AMR)) )** even managed to post its first quarterly profit in two years thanks to surging yields and slower-to-rise costs.Industry watchers expect airline carriers to only slowly add more planes back into the service, below the rate that would lead to price wars. American Express just issued a report predicting that tight supply will enable airfares to rise another +2% to +6% in the United States next year, and +5% to +10% in the rest of the world. That's a real positive forDelta , AMR and **United Continental ([UAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UAL&selected=UAL)) )** , as these carriers are most heavily exposed to international travel. The weak dollar may impede some Americans from traveling abroad, but could trigger a fresh surge of foreign tourism to the U.S. **Fewer discounts mean higher prices** Auto makers are also benefiting from restrained supply to help firm prices. Advertised prices for new cars and trucks are rising only modestly, but auto makers are finally able to stop the rebate game, which often took $1,000 to $2,000 off of the listed price. They can afford to do that since many auto plants were shuttered during the downturn, and few will be re-opened. Domestic auto plants are now producing two million fewer cars than a few years ago, and similar cutbacks have been made in Europe. Even as industry sales still remain in a funk, pricing power is already in evidence. Goldman Sachs expects U.S. auto and truck sales to be around 11.5 million this year, well below the 17 million unit levels seen back in 2006 and 2007. Yet they expect that figure to rebound to 13 million next year, 14 million in 2012 and 15 million in 2013. As long as the auto makers expand output at levels in line or below industry sales, they should see continued improvements in pricing power.As an example, **Ford Motor ([F](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=F&selected=F)) )** has produced about -10% fewer vehicles in the third quarter than the second quarter. That means fewer cars will pile up on dealers' lots, and Ford will not need to resort to profit-sapping rebates to move the metal. We're typically bombarded with year-end closeout specials from car dealers in September and October, but that's not happening as much this time around, as inventories remain quite lean. **Reversing the freight pricing trend** When economic activity slowed, major publicly-traded trucking firms such as Arkansas Best, Con-Way, J.B. Hunt, Knight Transportation, and Heartland Express had to take a number of trucks out of service. Nowadays, demand for freight carriers is increasing, and thanks to better control of supply, these firms are finally able to push through some badly-needed price increases. As Dahlman Rose's Jason Seidl recently wrote, "the industry, whose recovery has lagged that of other modes of transportation, is experiencing a gradual return of pricing power, resulting from dwindling capacity and improved demand."As this is a business with high fixed costs, moderate revenue growth can lead to much faster profit growth. For example, **J.B. Hunt (Nasdaq: JBHT)** is expected to boost sales +12% next year (half from volume increases, half from price increases), though per share profits are expected to rise +28%. **Arkansas Best (Nasdaq: ABFS)** is expected to swing from a $1.31 a share loss in 2010 to a $0.67 per share profit next year. **Alcoa's upturn** Sometimes, an industry giant can set the tone for a whole industry. **Alcoa ([AA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AA&selected=AA)) )** , one of the world's largest aluminum producers, has severely reduced output, and management insists that the company will be slow to rebuild output when the industry rebounds. It helps that Chinese aluminum producers are cutting output. I discussed Alcoa's newfound discipline in [this recent article](http://www.streetauthority.com/a/best-rebound-play-dow-456573) . Alcoa's management discussed the improving industry dynamics in great detail on its recent conference call. Other industry players such as **Century Aluminum (Nasdaq: CENX)** stand to benefit from Alcoa's leadership on the supply front. Then again, that's bad news for companies like **Noranda Aluminum ([NOR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NOR&selected=NOR)) )** and **Kaiser Aluminum (Nasdaq: KASU)** , which count on cheap prices to boost their profit margins on manufactured aluminum goods. **Action to Take -->** Many of these supply-induced pricing gains are impressive enough in a weakeconomy . They'll look even more impressive when theeconomy rebounds, as long as supply growth lags demand growth. These sectors have already posted decent gains, but investors are likely under-estimating their impressiveearnings power when theeconomy is back in growth mode.Of the companies mentioned here, Ford Motor, Aloca, AMR (because it's much cheaper than the other airline stocks) and Arkansas Best are my favorite names to consider.[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: 13.8516
Stock Price 2 days before: 13.4412
Stock Price 1 day before: 13.034
Stock Price at release: 13.12
Risk-Free Rate at release: 0.0013
| 14.3055 |
Symbol: ODP
Security: The ODP Corporation
Related Stocks/Topics: Markets|GE|SOHU|MHO
Title: Opening View: DJIA Futures Rise after G-20 Meeting
Type: News
Publication: Schaeffer
Publication Author: Unknown
Date: 2010-10-25 07:55:00
Article: The Dow Jones Industrial Average (DJIA) extended its fall rally to three weeks in a row last week, despite the blue chip barometer faltering on Friday ahead of the Group of 20 (G-20) finance ministers meeting. However, with G-20 officials agreeing to avoid currency devaluations, bulls appear to have returned to Wall Street. Specifically, futures on the DJIA and the S&P 500 Index (SPX) are trading roughly 65 points and 8.5 points above fair value, respectively. The Dow continues to battle short-term resistance at the 11,150 level, though support is firming in the 11,100 area. The DJIA is also staring up at the round-number 11,200 level, and its 2010 high at 11,258.01. The SPX, meanwhile, has short-term support at 1,180, with resistance in the 1,190-1,195 region.On the earnings front, RadioShack Corp. ([RSH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RSH&selected=RSH)) ) reported that its third-quarter profit rose 23% to $46 million, or 37 cents per share, as sales added 6.5% to $1.05 billion. Same-store sales rose 6.2%. Analysts were looking for earnings of 35 cents per share on sales of $1.03 billion. Elsewhere, Office Depot ([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) ) said that Chairman and CEO Steve Odland will resign on Nov. 1. Neil Austrian will serve as interim CEO and chairman while the board searches for a replacement. The company also said that it expects third-quarter earnings of 3 cents per share on revenue of $2.9 billion. The consensus is currently expecting a third-quarter loss of 2 cents per share on revenue of $2.9 billion.Finally, General Electric Co. ([GE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GE&selected=GE)) ) won a $750 million contract to expand an electric power station in Andhra Pradesh, India. The deal includes the sale of six Frame 9FA gas turbines, three D-11 steam turbines, training, and long-term services. "This will represent the largest gas turbine combined-cycle project in India's history and will help the country meet its continuing demand for reliable electricity to support its rapidly growing economy," GE said. **Earnings Preview** On the earnings front, M/I Homes Inc. ([MHO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MHO&selected=MHO)) ), Sohu.com Inc. ([SOHU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SOHU&selected=SOHU)) ), Atheros Communications Inc. (ATHR), SL Green Realty Corp. (SLG), and Texas Instruments Inc. (TXN) will release their quarterly reports today. Keep your browser at ** [SchaeffersResearch.com](http://www.schaeffersresearch.com/)** for more news as it breaks. **Economic Calendar** September's existing home sales arrive today, while the Case-Shiller home price index for August and October's consumer confidence index are on tap for tomorrow. On Wednesday, September's durable goods orders, September's new home sales, and the weekly report on U.S. petroleum supplies are slated for release. Thursday offers up the usual report on weekly initial jobless claims, while Friday rounds out the week with an advance look at third-quarter gross domestic product, October's Chicago purchasing managers' index, and the final reading for the October University of Michigan consumer sentiment index. **Market Statistics** Equity option activity on the Chicago Board Options Exchange (CBOE) saw 967,911 call contracts traded on Friday, compared to 669,035 put contracts. The resultant single-session put/call ratio arrived at 0.69, while the 21-day moving average rose to 0.60. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/101025ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/101025ov2.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/2010/101025ov3.gif)**Overseas Trading** Overseas trading is in solid shape this morning, with eight of the 10 foreign indexes that we track in positive territory. The cumulative average return on the collective stands at a gain of 0.56%. Expectations for additional quantitative easing from the U.S. Federal Reserve and high hopes for strong quarterly corporate earnings provided lift for Asia, with traders finally returning to the table in the wake of the G-20 meeting. However, strength in the Japanese yen forced exporters lower. Across the pond in Europe, strong earnings and soaring metals prices are providing a bullish bias across the region. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/101025ov4.gif)**Currencies and Commodities** With the G-20 meeting failing to come up with any firm policies or resolutions, the U.S. dollar resumed its decline versus most of its foreign competitors. The Japanese yen proved especially strong, rallying to a fresh 15-year zenith versus the greenback. At last check, the U.S. Dollar Index was down 0.76% at 76.89. Both gold and crude futures received a boost from the falling dollar, with gold jumping $18.40 to $1,343.50 an ounce in London, while the December crude contract has soared 88 cents to $82.57 per barrel in electronic trading. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/101025ov5.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/2010/101025ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/101025ov7.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: 4.73655
Stock Price 2 days before: 4.65711
Stock Price 1 day before: 4.83671
Stock Price at release: 5.2
Risk-Free Rate at release: 0.0013
| 4.72 |
Symbol: SOHU
Security: Sohu.com Limited
Related Stocks/Topics: ODP|Markets|GE|MHO
Title: Opening View: DJIA Futures Rise after G-20 Meeting
Type: News
Publication: Schaeffer
Publication Author: Unknown
Date: 2010-10-25 07:55:00
Article: The Dow Jones Industrial Average (DJIA) extended its fall rally to three weeks in a row last week, despite the blue chip barometer faltering on Friday ahead of the Group of 20 (G-20) finance ministers meeting. However, with G-20 officials agreeing to avoid currency devaluations, bulls appear to have returned to Wall Street. Specifically, futures on the DJIA and the S&P 500 Index (SPX) are trading roughly 65 points and 8.5 points above fair value, respectively. The Dow continues to battle short-term resistance at the 11,150 level, though support is firming in the 11,100 area. The DJIA is also staring up at the round-number 11,200 level, and its 2010 high at 11,258.01. The SPX, meanwhile, has short-term support at 1,180, with resistance in the 1,190-1,195 region.On the earnings front, RadioShack Corp. ([RSH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RSH&selected=RSH)) ) reported that its third-quarter profit rose 23% to $46 million, or 37 cents per share, as sales added 6.5% to $1.05 billion. Same-store sales rose 6.2%. Analysts were looking for earnings of 35 cents per share on sales of $1.03 billion. Elsewhere, Office Depot ([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) ) said that Chairman and CEO Steve Odland will resign on Nov. 1. Neil Austrian will serve as interim CEO and chairman while the board searches for a replacement. The company also said that it expects third-quarter earnings of 3 cents per share on revenue of $2.9 billion. The consensus is currently expecting a third-quarter loss of 2 cents per share on revenue of $2.9 billion.Finally, General Electric Co. ([GE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GE&selected=GE)) ) won a $750 million contract to expand an electric power station in Andhra Pradesh, India. The deal includes the sale of six Frame 9FA gas turbines, three D-11 steam turbines, training, and long-term services. "This will represent the largest gas turbine combined-cycle project in India's history and will help the country meet its continuing demand for reliable electricity to support its rapidly growing economy," GE said. **Earnings Preview** On the earnings front, M/I Homes Inc. ([MHO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MHO&selected=MHO)) ), Sohu.com Inc. ([SOHU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SOHU&selected=SOHU)) ), Atheros Communications Inc. (ATHR), SL Green Realty Corp. (SLG), and Texas Instruments Inc. (TXN) will release their quarterly reports today. Keep your browser at ** [SchaeffersResearch.com](http://www.schaeffersresearch.com/)** for more news as it breaks. **Economic Calendar** September's existing home sales arrive today, while the Case-Shiller home price index for August and October's consumer confidence index are on tap for tomorrow. On Wednesday, September's durable goods orders, September's new home sales, and the weekly report on U.S. petroleum supplies are slated for release. Thursday offers up the usual report on weekly initial jobless claims, while Friday rounds out the week with an advance look at third-quarter gross domestic product, October's Chicago purchasing managers' index, and the final reading for the October University of Michigan consumer sentiment index. **Market Statistics** Equity option activity on the Chicago Board Options Exchange (CBOE) saw 967,911 call contracts traded on Friday, compared to 669,035 put contracts. The resultant single-session put/call ratio arrived at 0.69, while the 21-day moving average rose to 0.60. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/101025ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/101025ov2.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/2010/101025ov3.gif)**Overseas Trading** Overseas trading is in solid shape this morning, with eight of the 10 foreign indexes that we track in positive territory. The cumulative average return on the collective stands at a gain of 0.56%. Expectations for additional quantitative easing from the U.S. Federal Reserve and high hopes for strong quarterly corporate earnings provided lift for Asia, with traders finally returning to the table in the wake of the G-20 meeting. However, strength in the Japanese yen forced exporters lower. Across the pond in Europe, strong earnings and soaring metals prices are providing a bullish bias across the region. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/101025ov4.gif)**Currencies and Commodities** With the G-20 meeting failing to come up with any firm policies or resolutions, the U.S. dollar resumed its decline versus most of its foreign competitors. The Japanese yen proved especially strong, rallying to a fresh 15-year zenith versus the greenback. At last check, the U.S. Dollar Index was down 0.76% at 76.89. Both gold and crude futures received a boost from the falling dollar, with gold jumping $18.40 to $1,343.50 an ounce in London, while the December crude contract has soared 88 cents to $82.57 per barrel in electronic trading. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/101025ov5.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/2010/101025ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/101025ov7.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: 60.6431
Stock Price 2 days before: 67.6911
Stock Price 1 day before: 69.1031
Stock Price at release: 69.1034
Risk-Free Rate at release: 0.0013
| 73.5482 |
Symbol: SVM
Security: Silvercorp Metals Inc.
Related Stocks/Topics: GFI|Markets|SCCO|HL|AEM
Title: Precious Metal Stocks - 6 Top Picks
Type: News
Publication: Learning Markets
Publication Author: Unknown
Date: 2010-10-25 07:58:00
Article:
Stock Price 4 days before: 8.97963
Stock Price 2 days before: 8.61528
Stock Price 1 day before: 8.8542
Stock Price at release: 8.86984
Risk-Free Rate at release: 0.0013
| 12.4396 |
Symbol: ODP
Security: The ODP Corporation
Related Stocks/Topics: Markets|BP|AGO|UNG|SLV|GOOG|LVS|IVZ|USO|NVS|GDX|CTV|GLD
Title: Mid-Day Update: Stocks Solidly Higher as New Housing Data Adds to Positive Sentiment
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-10-25 12:18:00
Article: Here's where markets stand at mid-day:-NYSE up 43.89 (+0.58%) to 7,566.80-DJIA up 68.91 (+0.62%) to 11,201.47-S&P 500 up 6.28 (+0.54%) to 1,189.47-Nasdaq up 17.50 (+0.71%) to 2,496.93GLOBAL SENTIMENTHang Seng up 0.47%Nikkei down 0.27%FTSE up 0.18%MID-DAY NYSE INDEX WATCHNYSE Energy up 0.64% at 11,271.33NYSE Financial down 0.05% at 4,788.84NYSE Health Care up 0.65% at 6,527.40NYSE Arca Tech 100 up 0.87% at 1,006.68UPSIDE MOVERS(+) C (+1.6%) added to Conviction Buy list at Goldman.(+) LDK (+5.9%) inks deal with BYD Company.(+) XING (+2.3%) files with SEC regarding buyout of Qiao Xing Mobile Communication.(+) GIW (+51.7%) sold for $9.50 per share to Community Bank System. (+) SOHU (+15.5%) beats estimates, guides above Street.(+) GE (+1.0%) inks contract in India.(+) CYOU (+5.1%) beats with record Q3 results, guides for Q4 beat.(+) ODP (+6.7%) says CEO resigning(+) ATHN (+2.0%) downgraded.(+) HD (+0.03%) downgraded.(+) ARNA (+3.1%) down as FDA can't approve Lorcaserin NDA.DOWNSIDE MOVERS(-) FWLT (-4.8%) says CEO leaving.(-) MSFT (-0.3%) downgraded.(-) DSPG (-6.1%) beats with EPS, guides for revenue miss.(-) RSH (-7.5%) beats Q3 expectations.MARKET DIRECTIONStocks are broadly higher at mid-day after positive housing data adds to positive sentiment from the G-20 Summit over the weekend amid a continuing steam of relatively upbeat earnings reports.In the latest round of economic data, the National Association of Realtors said sales of existing homes climbed 10% in September--the second month of gains in a row--MarketWatch reported. Sales last month rose 10% to a seasonally adjusted annual rate of 4.53 million, from a downwardly revised 4.12 million in August, the report said.Home sales have declined 37.5% from their peak annual rate of 7.25 million sales in September 2005 but are up compared with July's rate of 3.84 million sales, the lowest in 15 years.Also, the G-20's joint communique Saturday buoyed investors. It said a global economic recovery is underway but uneven, and warned of the need to move toward more "market-determined" currency exchange rates, according to news reports. In company news, Novartis' ([NVS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NVS&selected=NVS)) ) Menveo vaccine prompted an immune response to four strains of a disease that causes meningitis, Bloomberg reported, citing a study. The finding potentially shows there could be protection against brain and spinal cord infections, the report said. The vaccine met goals set for a late-stage study in infant meningococcal disease, the report said.Arena Pharmaceuticals Inc ([ARNA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ARNA&selected=ARNA)) ) is on the rise after CEO Jack Lief said he sees a way forward to gain FDA approval for the company's diet drug Lorcaserin. Over the weekend, Arena said that the FDA rejected the drug amid safety concerns, particularly regarding its cancer risk. Still, in a conference call, Lief said that Arena will continue to work for ways to get the drug on the market.Privacy regulators in Italy ordered Google ([GOOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GOOG&selected=GOOG)) ) to ensure its Street View photo-collecting automobiles are clearly marked and that their itineraries are publicized, Reuters reported. Google must publish three days in advance in which locality, including which area of a large city, the cars will be operating. The report is the latest in a saga for the Internet search giant, which has faced privacy concerns over its Google Maps service in several European countries over the past year.Las Vegas Sands ([LVS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LVS&selected=LVS)) ) is up after Barron's says it may gain as the gaming market expands in Singapore. LVS recently opened the Marina Bay Sands casino in Singapore.Harman International ([HAR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HAR&selected=HAR)) ) is higher after it says it plans to invest another $100 million to bolster its manufacturing and research capabilities in the People's Republic of China. It will partner with the northern city of Dandong to create two new manufacturing operations with a total joint investment of some $50 million. BP ([BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP)) ) said Monday it has agreed to sell interests in four mature producing deepwater oil and gas fields in the Gulf of Mexico to Marubeni Oil & Gas for $650 million in cash. BP acquired the interests in the fields - Magnolia, Merganser, Nansen and Zia - from Devon Energy earlier in 2010 as part of a wider acquisition of assets in the Gulf of Mexico, Brazil and Azerbaijan, the oil giant said. Dependent on regulatory approval, the parties anticipate to complete the deal in early 2011.Shares of Assured Guaranty ([AGO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AGO&selected=AGO)) ) are sharply lower after Standard & Poor's removed its AAA rating on Monday and assigned the bond insurer a rating of AA-plus, Reuters reported. S&P gave Assured a stable outlook and cited a depleted demand for bond insurance, the report said.CommScope Inc. ([CTV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CTV&selected=CTV)) ) is sharply higher on news the telecommunications equipment manufacturer said it is in talks to be bought out by the Carlyle Group. The private equity group may by all outstanding shares in CommScope for $31.50 a share, marking a 36% premium over the company's closing price Friday.Office Depot Inc ([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) ) is higher on news that CEO Steve Odland will step down next month after settling improper disclosure charges with the SEC last week. Meanwhile, the office supply retailer also posted preliminary third quarter results that exceeded analysts' expectations. The company will be reporting its full results Wednesday.In the latest earnings news:--RadioShack ([RSH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RSH&selected=RSH)) ) reported Q3 EPS of $0.37 per share, two cents ahead of the Street view. Sales were $1.05 billion, vs. expectations of $1.03 billion. --Invesco ([IVZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IVZ&selected=IVZ)) ) reported Q3 adjusted EPS of $0.39, ahead of the Street view of $0.35 per share. Revenue was $953 million, vs. expectations of $966 million.--DSP Group ([DSPG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DSPG&selected=DSPG)) ) reported Q3 revs of $65.1 million, in line with the analyst view on Thomson Reuters. EPS was $0.27, vs. expectations of $0.20 per share. For 2010, the company is guiding for revenue in the range of $222 to $226 million, vs. Street expectations of $239 million.--Sykes ([SYKE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SYKE&selected=SYKE)) ) expects preliminary Q3 revenue in the range of $304 to $306 million, up from a prior guidance range of $296 to $301 million and better than the analyst consensus of $297 million on Thomson Reuters.Commodities are higher as December gold contracts are up $13, or 0.97%, to $1,338 an ounce while December crude contacts are up 1.04%, or $0.86, at $82.55 a barrel.In energy ETFs, the United States Oil Fund ([USO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=USO&selected=USO)) ) is up 0.42% to $35.64 and the United States Natural Gas fund ([UNG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UNG&selected=UNG)) ) is down 2.23% to $5.21. In precious metal ETFs, the SPDR Gold Trust ([GLD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GLD&selected=GLD)) ) is up 0.76% to $130.71. Market Vectors Gold Miners ([GDX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GDX&selected=GDX)) ) is up 1.53% to $55.73. iShares Silver Trust ([SLV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLV&selected=SLV)) ) is up 1.23% to $23.04. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
Stock Price 4 days before: 4.74926
Stock Price 2 days before: 4.65711
Stock Price 1 day before: 4.83671
Stock Price at release: 5.04632
Risk-Free Rate at release: 0.0013
| 4.60905 |
Symbol: ODP
Security: The ODP Corporation
Related Stocks/Topics: Markets|BP|AGO|UNG|SLV|GOOG|LVS|IVZ|USO|NVS|GDX|CTV|GLD
Title: Stocks Higher in Mid-Day Trading as Investors Eye Housing Data, G-20, Earnings
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-10-25 12:27:00
Article: Stocks are broadly higher at mid-day after positive housing data adds to positive sentiment from the G-20 Summit over the weekend amid a continuing steam of relatively upbeat earnings reports.In the latest round of economic data, the National Association of Realtors said sales of existing homes climbed 10% in September--the second month of gains in a row--MarketWatch reported. Sales last month rose 10% to a seasonally adjusted annual rate of 4.53 million, from a downwardly revised 4.12 million in August, the report said. Home sales have declined 37.5% from their peak annual rate of 7.25 million sales in September 2005 but are up compared with July's rate of 3.84 million sales, the lowest in 15 years.Also, the G-20's joint communique Saturday buoyed investors. It said a global economic recovery is underway but uneven, and warned of the need to move toward more "market-determined" currency exchange rates, according to news reports.In company news, Novartis' ([NVS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NVS&selected=NVS)) ) Menveo vaccine prompted an immune response to four strains of a disease that causes meningitis, Bloomberg reported, citing a study. The finding potentially shows there could be protection against brain and spinal cord infections, the report said. The vaccine met goals set for a late-stage study in infant meningococcal disease, the report said.Arena Pharmaceuticals Inc ([ARNA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ARNA&selected=ARNA)) ) is on the rise after CEO Jack Lief said he sees a way forward to gain FDA approval for the company's diet drug Lorcaserin. Over the weekend, Arena said that the FDA rejected the drug amid safety concerns, particularly regarding its cancer risk. Still, in a conference call, Lief said that Arena will continue to work for ways to get the drug on the market.Privacy regulators in Italy ordered Google ([GOOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GOOG&selected=GOOG)) ) to ensure its Street View photo-collecting automobiles are clearly marked and that their itineraries are publicized, Reuters reported. Google must publish three days in advance in which locality, including which area of a large city, the cars will be operating. The report is the latest in a saga for the Internet search giant, which has faced privacy concerns over its Google Maps service in several European countries over the past year. Las Vegas Sands ([LVS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LVS&selected=LVS)) ) is up after Barron's says it may gain as the gaming market expands in Singapore. LVS recently opened the Marina Bay Sands casino in Singapore.Harman International ([HAR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HAR&selected=HAR)) ) is higher after it says it plans to invest another $100 million to bolster its manufacturing and research capabilities in the People's Republic of China. It will partner with the northern city of Dandong to create two new manufacturing operations with a total joint investment of some $50 million.BP ([BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP)) ) said Monday it has agreed to sell interests in four mature producing deepwater oil and gas fields in the Gulf of Mexico to Marubeni Oil & Gas for $650 million in cash. BP acquired the interests in the fields - Magnolia, Merganser, Nansen and Zia - from Devon Energy earlier in 2010 as part of a wider acquisition of assets in the Gulf of Mexico, Brazil and Azerbaijan, the oil giant said. Dependent on regulatory approval, the parties anticipate to complete the deal in early 2011.Shares of Assured Guaranty ([AGO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AGO&selected=AGO)) ) are sharply lower after Standard & Poor's removed its AAA rating on Monday and assigned the bond insurer a rating of AA-plus, Reuters reported. S&P gave Assured a stable outlook and cited a depleted demand for bond insurance, the report said.CommScope Inc. ([CTV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CTV&selected=CTV)) ) is sharply higher on news the telecommunications equipment manufacturer said it is in talks to be bought out by the Carlyle Group. The private equity group may by all outstanding shares in CommScope for $31.50 a share, marking a 36% premium over the company's closing price Friday. Office Depot Inc ([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) ) is higher on news that CEO Steve Odland will step down next month after settling improper disclosure charges with the SEC last week. Meanwhile, the office supply retailer also posted preliminary third quarter results that exceeded analysts' expectations. The company will be reporting its full results Wednesday.In the latest earnings news:--RadioShack ([RSH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RSH&selected=RSH)) ) reported Q3 EPS of $0.37 per share, two cents ahead of the Street view. Sales were $1.05 billion, vs. expectations of $1.03 billion.--Invesco ([IVZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IVZ&selected=IVZ)) ) reported Q3 adjusted EPS of $0.39, ahead of the Street view of $0.35 per share. Revenue was $953 million, vs. expectations of $966 million.--DSP Group ([DSPG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DSPG&selected=DSPG)) ) reported Q3 revs of $65.1 million, in line with the analyst view on Thomson Reuters. EPS was $0.27, vs. expectations of $0.20 per share. For 2010, the company is guiding for revenue in the range of $222 to $226 million, vs. Street expectations of $239 million.--Sykes ([SYKE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SYKE&selected=SYKE)) ) expects preliminary Q3 revenue in the range of $304 to $306 million, up from a prior guidance range of $296 to $301 million and better than the analyst consensus of $297 million on Thomson Reuters. Commodities are higher as December gold contracts are up $13, or 0.97%, to $1,338 an ounce while December crude contacts are up 1.04%, or $0.86, at $82.55 a barrel.In energy ETFs, the United States Oil Fund ([USO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=USO&selected=USO)) ) is up 0.42% to $35.64 and the United States Natural Gas fund ([UNG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UNG&selected=UNG)) ) is down 2.23% to $5.21.In precious metal ETFs, the SPDR Gold Trust ([GLD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GLD&selected=GLD)) ) is up 0.76% to $130.71. Market Vectors Gold Miners ([GDX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GDX&selected=GDX)) ) is up 1.53% to $55.73. iShares Silver Trust ([SLV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLV&selected=SLV)) ) is up 1.23% to $23.04. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
Stock Price 4 days before: 4.76368
Stock Price 2 days before: 4.65711
Stock Price 1 day before: 4.83671
Stock Price at release: 5.04632
Risk-Free Rate at release: 0.0013
| 4.60684 |
Symbol: AMTD
Security: AMTD IDEA Group
Related Stocks/Topics: Markets
Title: New Dividend Stock Added to Database (AMTD)
Type: News
Publication: Dividend.com
Publication Author: Unknown
Date: 2010-10-26 08:02:00
Article: We are adding shares of TD Ameritrade([AMTD](http://www.dividend.com/dividend-stocks/financial/investment-brokerage-national/amtd-td-ameritrade/)) ) to our database of nearly 1600 dividend-paying stocks. [(more…)](http://www.dividend.com/blog/?p=25990#more-25990) Created by Dividend.com
Stock Price 4 days before: 16.7737
Stock Price 2 days before: 16.7739
Stock Price 1 day before: 16.7764
Stock Price at release: 16.3597
Risk-Free Rate at release: 0.0014
| 17.3012 |
Symbol: FDP
Security: Fresh Del Monte Produce Inc.
Related Stocks/Topics: KR|Markets|WMT
Title: Chiquita (NYSE: CQB) Looks to Harvest Fresh Growth
Type: News
Publication: Wyatt Investment Research
Publication Author: Unknown
Date: 2010-10-26 11:10:00
Article: With seasonal apples virtually everywhere here in Vermont it's almost impossible not to think about the importance of fresh fruit in our diets. Of course, as an independent investor I spend as much time considering potential ways to profit from the fresh food movement as I do putting together recipes that feature these tasty treats.I've recently turned my attention toward consumer staples companies that may get a boost from the fresh food movement. Cruise down the supermarket produce aisles and check out the fruit prices. Whether you're at a **Walmart ([WMT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WMT&selected=WMT)) ),****Safeway****([SWY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SWY&selected=SWY)) )** or **Kroger ([KR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KR&selected=KR)) ),** value shoppers are likely to notice one thing - bananas are the cheapest fruit on the shelves. They are ridiculously cheap.Value shoppers and value investors alike may want to take a closer look at one small cap stock that has the potential for growth - whether banana prices go up or not. If recent announcements from **Chiquita Brands ([CQB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CQB&selected=CQB)) )** prove accurate, there could be a fresh outlook for this consumer goods small-cap stock. ***Few companies have such an iconic logo as Miss Chiquita - in fact she's been around since 1944 as the marketing symbol for the world's first brand of bananas. For years, she was an animated face in the company's TV commercials.While Miss Chiquita has changed over the years, so too has the company. Chiquita traces its roots to fruit-trading seafarers in the 1870s. But despite its storied history, well-recognized name and popular marketing logo, the company has remained a small-cap stock - it even faced a Chapter 11 restructuring in 2001.Chiquita is no longer just bananas. The company's product lineup has evolved over time to include fresh salads (under the Fresh Express name), along with fruit snacks and smoothies. In 2009, bananas accounted for 72 percent of its operating income, with salads and healthy snacks making up 25 percent and other products rounding out the remaining 3 percent. Just four years earlier, bananas accounted for 98 percent of operating income. If you want fresh fruit but carefully control your food budget, bananas are a great buy. That's great for consumers, but challenging for producers. Pricing pressures have kept a chain around the share price of Chiquita and some of its competitors - including **Dole Food (Nasdaq: DOLE)** and **Fresh Del Monte Produce ([FDP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FDP&selected=FDP)) ).** Of the three, Chiquita represents the best opportunity for investors right now. ***When the company reported earnings per share of $1.40 for the second quarter it easily beat estimates of $1.10. However, Chiquita also cut its revenue prediction for the year to a slight contraction from previous guidance of 3 to 5 percent growth.The company said the recession was still a factor, but it clearly suffered on European currency exchange rates due to the weak U.S. dollar. Still the share price is up 8 percent in the past three months, despite being down 20 percent year-to-date.Chiquita primarily harvests its bananas from Central America and the Caribbean. Weather and other factors have not hurt the region this year so banana production is up. In fact, Costa Rica reports that its 2010 banana harvest is up 18 percent as compared to 2009. Guatemala, on the other hand, is expecting a similar decrease in production this year due to recent rains.But pricing pressure is still a challenge. It's not just the Caribbean region's growers who are feeling the pinch. Australia is another of the world's leading producers and a growers' group recently told the Australian Broadcasting Co. that its members can't survive when the retail price is below the cost of production. You don't need to be a financial analyst to figure out that business model isn't sustainable. So Chiquita is angling into other products which offer higher profit margins, such as salads and smoothies. In a major recent announcement the company unveiled its new FreshRinse salad wash. According to the [Wall Street Journal](http://online.wsj.com/article/SB10001424052748704300604575554531108547278.html?ru=yahoo&mod=yahoo_hs) the new wash "... killed substantially more Salmonella, Listeria monocytogenes and E. coli 0157:H7 organisms than chlorine washes ... "While the new product hasn't received a stamp of approval from the medical world just yet, the potential impact to Chiquita's bottom line could be big if everything the company claims is true. ***Chiquita has also made progress paying down long-term debt, and operating margins were up nicely in the first half of the year to 11.7 percent from 4.2 percent in 2009. Net income has grown an average of 10.5 percent from 2004 to 2009, while earnings have grown an average of 8.7 percent over the same period.Three analysts who follow Chiquita call the stock a strong buy, and I'm throwing my hat in the ring with them. Bad weather and a weak dollar aside, it appears that Chiquita is making a stronger comeback than some of its fruit and veggie competitors.The stock bottomed out under $5 back in the spring of 2009 and has rebounded nicely to close above resistance at the $14 level. Look for it to target $20, just above its 52-week high. As a final note of interest, the first-ever world banana summit will take place Nov. 5-6 in the Philippines during the Davao Trade Expo. This event will provide insights into the industry, challenges that it's facing and also opportunities. Check it out at: [http://www.davaotradeexpo.com/](http://www.davaotradeexpo.com/) Let me know what you think about Chiquita, or any other companies that have a foothold in the fresh food movement. My address is: [[email protected]](mailto:[email protected])
Stock Price 4 days before: 21.9784
Stock Price 2 days before: 22.058
Stock Price 1 day before: 22.0029
Stock Price at release: 21.9875
Risk-Free Rate at release: 0.0014
| 22.1636 |
Symbol: MLP
Security: Maui Land & Pineapple Company, Inc.
Related Stocks/Topics: WMB|Markets|CHK|EPD
Title: The Enormous Potential of the Much Awaited Chesapeake Midstream Partners LP IPO
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-10-27 03:42:00
Article: As I noted in [Reaching for Yields with MLPs](http://www.investingdaily.com/tes/17394/reaching-for-yields-with-mlps.html) , few investments are better than a master limited partnership (([MLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MLP&selected=MLP)) )) with a long history of consistently boosting its distributions to unitholders. Steady Eddies such as Enterprise Products Partners LP ([EPD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPD&selected=EPD)) ) have generated enormous wealth for unitholders over the long term.But older MLPs don't necessarily offer the best distribution growth potential. In many cases, MLPs grow distributions at the fastest rate in their first two years as public companies. And there's nothing like rapid growth in distributions to drive strong price appreciation and total returns. For example, in Williams Partners LP's ([WPZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WPZ&selected=WPZ)) ) first two years as a public company, the firm boosted its quarterly payout from $0.35 to $0.575, thanks to a series of asset drop-downs from its general partner, Williams Companies ([WMB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WMB&selected=WMB)) ). These deals helped the stock soar 80 percent from the close on its first full day of trading.Sunoco Logistics Partners LP ([SXL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SXL&selected=SXL)) ) enjoyed a similar pop. The refined-products pipeline giant increased its payout 23 percent in its first eight quarters as a public company, and the stock soared 100 percent. It pays to keep a close eye on initial public offerings ((IPO)).Because distribution growth attracts investors, most MLPs are set up to generate rapid growth in their early years. Of course, not all MLP IPOs are winners: The investment landscape is littered with the wreckage of small MLPs that never managed to establish a sustainable business model or reach critical mass. Others expanded too quickly and took on too much leverage and commodity risk; many of the worst offenders got crushed during the 2007-09 bear market.As with any MLP, the key is to look at the underlying business and the likely growth avenues. Here's a look at the prospects for one of biggest MLP IPOs in 2010. **Initial Take** Chesapeake Midstream Partners LP ([CHKM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CHKM&selected=CHKM)) ) was the most anticipated MLP IPO in recent memory, primarily because the MLP's general partner ((GP)), Chesapeake Energy Corp ([CHK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CHK&selected=CHK)) ), is one of the largest independent exploration and production (E&P) firms operating in U.S. unconventional natural gas and oil fields. CEO Aubrey McClendon has talked about taking a midstream gas MLP public for years, so investors have awaited this IPO for some time. The 2008-09 financial crisis temporarily shelved plans for an IPO of Chesapeake Energy's midstream division, but improved credit conditions and solid demand for MLPs prompted the company to file its first registration statement for Chesapeake Midstream in February.McClendon and his team appear to have picked an opportune time for the IPO; the units commanded prices at the top end of the projected range, suggesting strong demand from institutional investors. And since the IPO at $21, the units have climbed to $25, indicating that the secondary market is also interested in the new MLP.Fundamentals support the market's enthusiastic reception of Chesapeake Midstream; the new IPO offers lower-than-average business risk and superior growth potential. **A Strong, Growth-Oriented GP** The GP manages the day-to-day operations of an MLP's assets and makes key decisions on acquisitions and organic expansion projects. Investing in an MLP whose GP doesn't have unitholders' best interests in mind often entails its fair share of pain. Fees paid to the GP called incentive distribution rights ((IDR)) underscore point: High IDRs can make it tougher for the MLP to raise capital for future growth prospects. (I discuss GPs and IDRs at length in [Strong Parents Make Healthy MLPs](http://www.investingdaily.com/pf/16841/strong-parents-make-healthy-mlps.html) ).Here are a few questions to ask when evaluating an MLP's GP. - **Is the GP wholly owned by a private-equity firm?** Private-equity firms often hold GP assets for a relatively short time and may look to sell at an opportune time. - **Is the GP an operating company with assets suitable for drop-down transactions?** In drop-down deals the GP sells assets such as pipelines or gas-processing facilities directly to the MLP. Drop-downs are usually highly accretive to cash flow and allow the MLP to immediately boost its distribution payouts. - **What is the IDR structure and in which tier is the MLP?** As noted earlier, IDRs are a fee paid by the limited partners ((LP)) in an MLP (for the most part, that's us) to the GP. IDRs are usually related to the size of the distributions paid to LP unitholders; the GP's take typically rises as distributions increase. Such a structure incentivizes the GP to grow the business, but high IDR payments early in an MLP's life can stunt its growth. - **What is the GP's ownership stake in the MLP?** GPs often own a significant proportion of the MLP's limited partnership interests when the MLP is first listed. Over time, the GP usually sells off its LP stake to raise capital. That being said, GPs that retain a significant stake in the LP are usually more sensitive to unitholders' interests. - **Is the GP in a position to help the MLP when credit markets weaken?** This was a key question to ask in 2008-09. Some GPs shored up the finances of the MLPs they sponsored by temporarily suspending IDR payments, providing direct loans or offering some sort of guarantee that the distribution wouldn't be cut. - **How experienced is GP's management team?** This is the most basic question investors can ask of any company. An experienced management team like the ones in place at Enterprise Products Partners LP ([EPD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPD&selected=EPD)) ), Kinder Morgan Energy Partners LP ([KMP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KMP&selected=KMP)) ) and Linn Energy LLC ([LINE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LINE&selected=LINE)) ) is preferable. On all of these points, Chesapeake Midstream and its GP score well.Chesapeake Midstream owns nearly 3,000 miles of gathering pipelines in two key regions: the Barnett Shale around Fort Worth, Texas and an area collectively known as the Mid-Continent that includes the Permian Basin, Anadarko and Granite Wash plays.These assets are small-diameter pipelines that connect individual gas (or oil) wells to processing facilities and, ultimately, the interstate pipeline network. In addition to gas gathering, Chesapeake Midstream also provides ancillary services such as compression and treating. The latter process involves removing carbon dioxide from raw natural gas.Chesapeake Energy drills actively in all of these regions. The company has spent north of $1.5 billion on midstream energy assets over the past few years because it needs gathering, treating and compression capacity to transport the gas, natural gas liquids ((NGL)) and oil it produces. Because these assets are integral to Chesapeake Energy's operations, the GP is incentivized to ensure that Chesapeake Midstream remains healthy. Chesapeake Energy's motivation for spinning off these midstream assets is clear. First, holding these assets in an MLP structure is far more tax efficient. Second, the IPO brought Chesapeake Energy a substantial influx of capital, funds the firm can use to grow production. Meanwhile, capital raised by Chesapeake Midstream can be used to build out additional infrastructure to support Chesapeake Energy's drilling operations.Drop-down transactions should drive distribution growth at Chesapeake Midstream over the next few years. The MLP's portfolio doesn't include Chesapeake Energy's extensive midstream assets in the Marcellus Shale of Appalachia, the Haynesville Shale of Louisiana and East Texas, and the Fayetteville Shale in Arkansas, among other regions. The gathering system owned by Chesapeake Midstream serves about 3,500 natural gas wells that produce about 1.532 billion cubic feet of gas equivalent per day, but Chesapeake has stakes in over 40,000 wells whose daily output amounts to 2.6 billion cubic feet of gas.And this growth forecast isn't idle speculation. Management anticipates as many as two drop-down transactions of $250 to $500 million worth of assets in each year going forward.With around $750 million available on its credit facility and the potential to raise low-cost cash in the debt markets, Chesapeake Midstream should have no trouble financing deals of that size. And as part of the partnership agreements, Chesapeake Midstream has the right of first refusal on any midstream assets that Chesapeake Energy chooses to sell.Some analysts have expressed concern about Chesapeake Energy's debt load and subpar credit rating, questioning whether depressed natural gas prices will constrain the GP's ability to secure financing. These fears are largely unfounded. Chesapeake Energy has set a goal of working its way back to an investment-grade credit rating. Actions speak louder than words, but the bond markets appear to be putting faith in the company.Source: BloombergThis graph tracks the price of Chesapeake Energy 6 7/8% due Nov. 15, 2020 (CUSIP: 165167BUO). As you can see, these bonds have appreciated steadily to the point that the current yield stands at roughly 6 percent, about 330 basis points (3.3 percent) above the current yield on a 10-year U.S. Treasury note. A year ago this spread was more than 480 basis points. Falling spreads to Treasuries is a sign of improving sentiment. Although the Chesapeake Energy's bonds still don't command a yield spread that's typical of investment-grade credits, the trend is heading in the right direction--even if natural gas prices aren't cooperating.In addition, Chesapeake Energy has partnered with major international oil companies on many of its key fields, a move that significantly reduces the out-of-pocket investment required to develop the plays.Chesapeake Energy's acreage in the Barnett Shale is far and away the single most important source of volumes for Chesapeake Midstream. These properties are developed as part of a joint venture ((JV)) with Total ([TOT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TOT&selected=TOT)) ). Under the terms of the deal, Chesapeake Energy sold Total a 25 percent stake in its Barnett Shale interests in exchange for $800 million cash and an agreement that Total will fund $1.45 billion worth of future drilling and completion expenses in the field. In other words, Chesapeake got cash and what amounts to a free ride on most of its expenses through 2012.Given the backing of a giant like France-based Total, worries about Chesapeake's ability to fund drilling in the Barnett Shale are vastly overblown. Finally, Chesapeake Energy has maintained a 41.5 percent ownership stake in Chesapeake Midstream, further aligning the GP's interests with unitholders. **Asset Risk and Commodity Exposure** The [natural gas gathering and processing business](http://www.investingdaily.com/mlp/17868/upside-for-gp-mlps.html) tends to entail significant exposure to commodity prices. Typically, gathering is sensitive to drilling activity; the more wells being drilled in an area, the greater the demand for new well hook-ups. Gatherers often earn a fee for hooking up new wells to their systems and are remunerated based on the amount of gas transported. Robust drilling activity translates into strong resultsFrenzied drilling in key U.S. shale plays despite low gas prices reflects superior economics in certain plays and the urgent need to secure leaseholds through production. But activity in these fields should pull back a bit in coming months. Aubrey McClendon noted in Chesapeake Energy's second-quarter conference call that the firm would focus on drilling in liquids-rich plays until the price of gas recovers to more than $6 per million British thermal units.All of these developments at the GP level won't affect on Chesapeake Midstream's ability to pay distributions. Roughly three-quarters of the MLP's cash flows will come from its gathering operations in the Barnett Shale. These volumes are covered under long-term gathering agreements signed with the Chesapeake Energy-Total JV. Here are some of the key terms. - A fixed fee for every 1,000 cubic feet of gas gathered and treated from the Barnett Shale acreage. At the beginning of every year, this fee automatically increases 2 to 2.5 percent. - The JV has agreed to dedicate all gas produced from existing and future wells in the Barnett Shale to Chesapeake Midstream. - The JV has agreed to minimum volume commitments through mid-2019, and these commitments increase by 3 percent every year. In other words, the MLP will receive a certain contractually guaranteed minimum whether or not the gathering system is used. Not only will this minimum increase, but the volume-based fee will rise each year. The remaining 25 percent of cash flow come from Chesapeake Energy's Mid-Continent operations. This gathering agreement resembles the one covering the Barnett Shale, with one notable exception: No minimum volume is set.This omission is less of an issue in the Mid-Continent, an NGL- and oil-rich region where Chesapeake Energy likely will increase its output to take advantage of superior economics. **Distribution Growth Potential** Chesapeake Midstream **** has yet to announce its first quarterly distribution. **** But the MLP indicated that it would pay distributions equal to about $0.3375 per unit per quarter ($1.35 per year). This is the minimum quarterly payout set forth in the registration statement. The first payment would be prorated because the MLP will be publicly traded for only two months in the third quarter. Expect the partial third-quarter distribution to be around $0.225 per unit. Based on the current price and an annualized payout of $1.35, units of Chesapeake Midstream yield roughly 5.5 percent.Note that most brokers' websites and sites like Yahoo! Finance won't display the correct yield until the MLP declares a full quarterly distribution.To forecast potential distribution growth, let's examine the MLP's IDR Tier structure, listed below: - **Tier 1:** 98 percent to MLP holders and 2 percent to the GP, up to $1.55 per unit; - **Tier 2:** 85 percent to MLP holders and 15 percent to the GP, between $1.55 and $1.69; - **Tier 3:** 75 percent to MLP holders and 25 percent to the GP, between $1.69 and $2.03; and - **Tier 4:** 50 percent to MLP and 50 percent to the GP, above $2.03. To start, Chesapeake Midstream will be in the Tier 1 threshold, meaning that 98 percent of any distribution goes to the holders of the LP units. This scaled structure, which requires less growth in total cash flows to boost the payout to unitholders, often enables new MLPs to grow their payouts at a faster rate than mature rivals as it takes less growth in total cash flows to produce a rise in the payout to LP unitholders.And the GP is incentivized to grow distributions as quickly and sustainably possible; the higher the distributions paid to unitholders, the higher the percentage received by the GP.An example will flesh this idea out more clearly. Williams Partners LP offered a similar value proposition when it went public in 2005. The GP, Williams Companies, owned a large number of assets appropriate for drop-down transactions. The MLP hit the top end of its Tier 1 payout in two quarters, exceeded its Tier 2 payout in a year and hit its Tier 3 payout just two years after the IPO. Although it's by no means a sure thing, Chesapeake Midstream could enjoy a similar growth rate, assuming that the GP drops down about $500 million in assets each year. If Chesapeake Energy sticks to its word, the MLP could pay out $0.3875 per quarter by mid-2011 and $0.4225 per quarter in early 201--an annualized growth rate of roughly 15 percent.Chesapeake Midstream likely will end 2010 with an annualized yield of about 5.5 percent, less than the 6.2 percent average of the benchmark Alerian MLP Index. However, a lower-than-average yield is justified by fee-based gathering contracts that limit exposure to commodity prices. The potential for the distribution to grow at a double-digit rate also mitigates a lower yield. **Disclosure:** No positionsSee also [Contango ORE: An Intelligent Gold and Rare Earth Speculation?](http://seekingalpha.com/article/236083-contango-ore-an-intelligent-gold-and-rare-earth-speculation?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 4.47098
Stock Price 2 days before: 4.47325
Stock Price 1 day before: 4.43025
Stock Price at release: 4.65954
Risk-Free Rate at release: 0.0014
| 4.16145 |
Symbol: JBLU
Security: JetBlue Airways Corporation
Related Stocks/Topics: Markets
Title: Trade of the Day – JetBlue Airways Corporation (JBLU)
Type: News
Publication: Unknown
Publication Author: Unknown
Date: 2010-10-27 04:49:00
Article: **JetBlue Airways Corporation** (NASDAQ: [JBLU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=jblu&selected=jblu) ) **-** This airline provides passenger air transportation services in the United States operating 600 daily flights to 60 destinations in 20 states and Puerto Rico and 11 other countries.Since April JBLU has been consolidating within a rectangle with support at $5.40 and resistance at $6.80. Last week the stock broke from the rectangle on high volume. The stochastic indicator flashed a buy signal that was preceded by six weeks of unusually heavy buying. The target for JBLU is $8.30.If you have questions or comments for Sam Collins, please e-mail him at [[email protected]](mailto:[email protected]) .[JBLU Stock Chart](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)[Trade of the Day Chart Key](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)
Stock Price 4 days before: 6.83506
Stock Price 2 days before: 6.99321
Stock Price 1 day before: 7.02795
Stock Price at release: 7.15693
Risk-Free Rate at release: 0.0014
| 6.86485 |
Symbol: NRC
Security: National Research Corporation
Related Stocks/Topics: Unknown
Title: Geordie Mark: Uranium and Mining Stocks Recovering
Type: News
Publication: International Business Times
Publication Author: Unknown
Date: 2010-10-28 03:55:00
Article: Uranium has been radioactive for investors who have stayed away in droves since the metal crashed into a prolonged slide beginning in early 2007. Now in a cautious recovery mode from multi-year lows, Haywood Securities Senior Analyst Geordie Mark says a rising uranium price is the driver for select mining companies. In this exclusive interview with The Energy Report, Geordie discusses uranium demand and brings some specific ideas to the table for investors. **The Energy Report:** Between the first quarter of 2009 and the first half of 2010, uranium tested $40 on the downside about three times. Has it found solid support? Also, what minimum level does it need to maintain for companies to be profitable? **Geordie Mark:** That's a very good question. Certainly it has had a lot of technical support at $40 with a lot of buying strength coming in at that level. I'd say there's been even more buying strength recently. So that's a lot of strength. For the ultimate strength of investment health of this sector, I think we're looking at numbers north of $65. In fact, it would probably have to be higher than that to warrant risking venture capital for exploration. Also, you need to see higher prices for investment in large-scale, leveraged development-stage projects. Spot is now around $52, and we see positive movement there in terms of pricing with the long-term price at $60. **TER:** You see positive movement, but it sounds like mining uranium is risky now. Is that right?**GM:** Yes, mining does have technical risk. That's correct. As part of an offset to that, the projects we see going into production, certainly over the next year or so, are the lower-cost projects involving lower capital expenditure for development. Those are called in-situ recovery operations and they have a low-cost basis. So you're looking at cash costs of $30 per pound or less. They are the ones that can accommodate the current commodity price, but not the larger-scale projects requiring significant injection of capital. That's why we've seen delays in that development pipeline; $40 spot prices make it difficult to justify large, higher-cost projects. However, in our view, we do need those larger projects to sustain increasing demand. **TER:** On a percentage basis, why has uranium lagged other metals? What market pressures have put downward pressure on the metal?**GM:** Well, this year and late last year we actually saw a significant increase in production-probably larger than anticipated-out of Kazakhstan, which had a massive run from about 19 million pounds (Mlb.) in 2008 to about 36 Mlb. of production in 2009. With that continuing, we expect +40 Mlb. this year. That really put a blanket on the uranium price for the first seven months of 2010 and moved it down to lows close to $40. But over the last few months, we have seen a 20% increase in the spot price.From the low $40s to today, where it's about $52, we've seen an increase and a recovery in the price that has been a response to production shortfalls from some of the larger mines. For instance, both the Ranger uranium mine operated by [Energy Resources of Australia Ltd. (ASX:ERA)](http://www.ibtimes.com/) and [BHP Billiton Ltd.'s (NYSE:BHP; OTCPK:BHPLF)](http://www.ibtimes.com/) Olympic Dam experienced production shortfalls. These miners have had to buy material on the market to meet contracts. So production shortfalls have offset some of the production expansion coming out of Kazakhstan. We're seeing that balance swing a little bit more to the demand side in 2010. **TER:** Are there any companies in your universe that are involved in the Kazakhstan projects?**GM:** None in our universe. Obviously, the main one there is [Uranium One Inc. ( ](http://www.ibtimes.com/) [UUU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UUU&selected=UUU) ) . [Cameco Corp. (NYSE:CCJ; TSX:CCO)](http://www.ibtimes.com/) and [AREVA (PAR:CEI)](http://www.ibtimes.com/) have operations there also, but we don't cover those formally. **TER:** Geordie, you explained how Kazakhstan production put a blanket on the price of uranium and dropped it down to about $40, and that it has now rebounded to $52 due to expected production shortfalls in Australia and elsewhere. Going forward, would you expect to see big price swings when one mine increases production and another decreases it? **GM:** Broadly speaking, we see nearer-term market equilibrium with buying strength coming out of China as it builds strategic working inventory for future nuclear requirements. So that buying strength provides underlying support if larger projects were to produce more than expected. Alternatively, pricing pressure could be experienced more so if there were appreciable production shortfalls. **TER:** So if one major mine increases production, it could more than satisfy the demand here?**GM:** Well the point, in terms of Kazakhstan, is that it has multiple smaller-scale mines rather than one big mine. The large-scale mines that could have a significant or material impact just by themselves, such as Cameco's Cigar Lake, could furnish significant amounts of material on the market. But while Cameco is thinking that Cigar Lake will come into play, ramp-up and begin production in 2013, it's not really going to make a material impact until about 2017. So we think there's certainly some pricing pressure coming around 2012-2013. **TER:** What's going to drive capital into this market?**GM:** Ultimately, I think prices are expected to increase right along with demand. However, in terms of one of the components of the uranium sector, the nuclear sector will drive the material and incremental change in demand through the number of reactors that have gone into construction over the last 24 months.In the last two years, the number of reactors that have entered into construction has increased 61%. Also over that time period, there's been a 54% increase in the number of reactors planned and a 45% increase in the number of reactors proposed. These are largely in non-OECD (Organization for Economic Cooperation and Development) countries, so we're looking outside North America. We're also getting something of a sea change in views on existing reactor fleets, certainly from Europe, where we're seeing policy changes to extend reactor fleet lives. So we're seeing new demand, but we're also seeing extension of demand from existing reactor fleets in countries in Europe, including Germany, Sweden and Belgium. Also, the UK is looking at additional reactors. So significant changes in demand are taking place, but it does take a long time to get a project through the development curve. Therefore, we think there are opportunities for the development projects that can reach production in the next two, three or four years. **TER:** Geordie, how does an investor play these ideas, and why?**GM:** Our view at Haywood is based on increasing demand and our belief that commodity prices are going to increase. Our estimation is that, of all the companies, [Uranium Participation Corp. (TSX:U)](http://www.ibtimes.com/) has the best correlation to changes in uranium price. It is unlevered, so it does trade quite closely to uranium price changes. There's a strong relationship there-that's the rationale. In an increasing commodity price environment, the value of the inventory held by Uranium Participation increases. **TER:** So the fund is correlated with the uranium price?**GM:** Exactly. The value of the company, then, is based largely on two things. One is the value of the inventory, which is obviously commodity-price driven. And two is a market sentiment component-where the market thinks the direction of the commodity price is going. **TER:** Other ideas?**GM:** [Paladin Energy Ltd. (TSX:PDN; ASX:PDN)](http://www.ibtimes.com/) is the only uranium producer out there globally that isn't related to a major company or partnered with a utility. So there aren't any relationships there. It's got a good production growth profile in our view. We think the company will grow something on the order of 6.8 Mlb. this year, and then go beyond that to maybe 8.3 Mlb. next year. Paladin's got a good track record, in terms of bringing mines on, and a good growth trajectory at its African mines. [Strateco Resources Inc. (TSX:RSC)](http://www.ibtimes.com/) has the Matoush deposit, which in our view is very attractive-20 million pounds of almost 0.6% uranium. Those are high grades; and it is probably the most advanced development-stage project in Canada outside of AREVA and Cameco. There is also resource expansion potential. CEO Guy Hébert is doing a good job in trying to migrate through the permitting process. It's a nice scale of resource, and I think it's attractive with good growth potential. **TER:** I understand that will be the first uranium production license issued by the Canadian Nuclear Safety Commission ([CNSC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CNSC&selected=CNSC)) ) in 25 years. Has that license been issued; and, if so, what's the significance of it being the first one in 25 years?**GM:** Well, it hasn't been issued. We think Strateco is the most advanced along in the permitting path. Obviously, it would be a huge shot in the arm, in terms of meeting the very high standards that the regulators provide in Canada, and would speak volumes about management. **TER:** On [Bannerman Resources Limited (TSX:BAN; ASX:BMN)](http://www.ibtimes.com/) , you have a target price that would give an investor about 200% return on investment from today's levels. What's the driver here?**GM:** Bannerman has the Etango Project in Namibia, which is very large with more than 160 Mlb. Effectively, it's the most leveraged play we have under coverage in the uranium sector; so it does have the upside. It's a great country and a handsome resource, but it would be one of the more expensive producers in our coverage universe. We see significant appreciation in the uranium price over the next few years, implying a significant return for Bannerman. **TER:** Do weak currencies in Australia and other uranium-producing countries portend risk for investors?**GM:** Yes, currency exposure is obviously a risk on margin. But it can also be an opportunity, in terms of having lower-cost production due to operations being based in a country with a weaker currency. So it definitely depends on whether you're able to hedge some of your costs in that currency. But yes, I think we've seen that over the last month or so given the changes in the relative strength of currencies against the U.S. dollar. You do get a gain or atrophy in margins. That works for any commodity. **TER:** You've got very favorable upside on [Ur-Energy Inc. (NYSE:URG; TSX:URE)](http://www.ibtimes.com/) . How is that one interesting for you?**GM:** Ur-Energy, and let's bring [Uranerz Energy Corporation (TSX:URZ; NYSE.A:URZ)](http://www.ibtimes.com/) into the fold here just for a second. They hold two of the in-situ recovery projects in Wyoming that we believe have a good likelihood of wining permitting approval from the Nuclear Regulatory Commission ([NRC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NRC&selected=NRC)) ). We're looking at that to come to fruition, probably this quarter.When we came into the uranium sector three years ago, we looked at where we thought the next uranium producers were going to come from-and we didn't have to look far. In fact, we thought they'd all come from the U.S. The first new production in the world is expected to come from [Uranium Energy Corp (NYSE.A:UEC)](http://www.ibtimes.com/) , which we think will commence sometime in the next four weeks. That's in Texas. After that, I think Uranerz and Ur-Energy will be, due to the small capex and lower operating cost for the projects. Back to Ur-Energy, specifically, it has some very handsome projects in its Lost Creek and Lost Soldier deposits, and we think the company has a very good cash position to get it very close to production without having to raise additional equity. So, good projects, great technical team, good cash position-that's why we like Ur-Energy. Same thing goes for Uranerz at Wyoming's Powder River Basin. It also has a very good management team. **TER:** Given the demand you outlined, regarding a sea change in coming uranium demand, is there a first-mover advantage for UEC in taking market share or better pricing?**GM:** UEC, potentially, could gain better pricing. I think if the company could show, technically, that it could bring things into production and reach milestones, it would get first-mover status. That will help it going forward. UEC's technical team has a lot of history in Texas, and it's been able to do this many times in terms of bringing operations into production. So, absolutely, it has a very good track record with its technical team, and we're looking forward to seeing what UEC does. **TER:** You've got a nice 30% upside target price on [Extract Resources Ltd. (TSX:EXT; ASX:EXT)](http://www.ibtimes.com/) . What is driving that?**GM:** Well, Extract's been an outstanding company to follow for the last few years due to its discovery of Rössing South deposit in Namibia. That, in our view, is one of the best discoveries in the uranium sector in the last 30 years. It's a massive resource, with +300 Mlb., and it is 6 km. away from the existing mine operated by [Rio Tinto Ltd. ( ](http://www.ibtimes.com/) [RIO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RIO&selected=RIO) ) . So Extract has proximity to existing facilities and existing infrastructure in Namibia-the fourth largest uranium producer that has been producing uranium for more than 30 years. The company will have its feasibility study completed by the end of the year. So we think it's in a very good position there to go forward. **TER:** You also follow [Denison Mines Corp. (TSX:DML; NYSE.A:DNN)](http://www.ibtimes.com/) , which has had a good run-up during the past year. **GM:** I think there's a little bit of market expectation running in there behind the spot price movement, but also a release on the Phoenix Zone resource somewhere on the order of 50-70 Mlb. The company's looking to release that resource in November. With increases in the spot price, we see particular potential for Denison to have significant changes in cash flow. I think there is a lot of interest in its very attractive deposit at Wheeler River in Athabasca, Saskatchewan, Canada. The company's had some outstanding results so far in its drilling program. **TER:** Are there some new uranium miners out there we haven't discussed that really excite you?**GM:** We certainly track exploration-stage companies that we don't cover formally, and we have them in our Junior Exploration Report. For instance, last quarter we published a report that included [Rockgate Capital Corp. (TSX:RGT)](http://www.ibtimes.com/) and [Southern Andes Energy Inc. ( ](http://www.ibtimes.com/) [SUR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SUR&selected=SUR) ) , formerly Solex Resources Corp., which has Peruvian assets. South America seems to be heating up in terms of exploration. Rockgate is another African exploration-/development-stage asset based in the Republic of Mali that we're following quite closely. **TER:** Are these interesting because of the geographical regions or because you have a better understanding of the actual resource or potential resource they're looking at? **GM:** Well, we couple everything in there; but, ultimately, you have to have something in the ground that looks interesting as a resource. Then you look at the environment-both the political and economic environment. But certainly the resource is first. You have to look at the geological potential of a project initially. **TER:** Geordie, who are your buy-side clients? Are they small-, mid- or large-cap mutual funds? Who are they mainly?**GM:** Our clients represent a whole range-small cap all the way up to very large. Their requirements relate to different investment objectives, of course, and to different sized companies within the uranium sector. **TER:** Thank you.Dr. Geordie Mark, a research analyst with [Haywood Securities](http://www.ibtimes.com/) , focuses principally on uranium companies involved in exploration, development and production. He joined Haywood Securities from the junior exploration sector, where he was vice president of exploration for Cash Minerals, which concentrated on uranium and iron oxide-copper-gold targets across Canada. Immediately prior to joining the exploration industry full-time, Dr. Mark lectured in economic geology at Monash University, Australia and served as an industry consultant. He completed his PhD in geology in 1998 at James Cook University's Economic Geology Research Unit in Australia, specializing in aqueous geochemistry and igneous petrology applied to ore-forming systems.Want to read more exclusive Energy 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.) George Mack and Karen Roche of The Energy Report conducted this interview. They personally and/or their families 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: Strateco Resources, Uranium Energy Corp. and Uranerz.3.) Geordie Mark: I personally and/or my family own shares of the following companies mentioned in this interview: Paladin and Uranium Participation Corp. I personally and/or my family are paid by the following companies: None.Streetwise - [The Energy 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 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/)
Stock Price 4 days before: 25.3797
Stock Price 2 days before: 25.4799
Stock Price 1 day before: 25.2604
Stock Price at release: 25.1123
Risk-Free Rate at release: 0.0014
| 25.2479 |
Symbol: NR
Security: Newpark Resources, Inc.
Related Stocks/Topics: Markets|GNW|AXTI|CSTR
Title: Today's Earnings Movers: TNAV, MWW, CSTR, GMO, AXTI Higher; NR, NUVA, AMAG, OSTK, GWW Lower
Type: News
Publication: StreetInsider.com
Publication Author: Unknown
Date: 2010-10-29 02:28:00
Article: Below is a run-down of today's top 5 earnings movers, higher and lower, according to data at StreetInsider.com's [EPS Central](http://www.streetinsider.com/portal.php?id=5&ec_sort=todays_move) :**HIGHER:** - TeleNav (Nasdaq: TNAV) 28% HIGHER; reports Q1 EPS of $0.29, 7 cents better than the analyst estimate of $0.22. Revenue for the quarter was $51.1 million, which compares to the estimate of $48.86 million. Sees Q2 EPS in range of 15c - 17c, vs. estimate of 13. See Q2 sales of $45M - $47M, vs. estimate of $44.7M. Sees FY11 EPS in range of 70c - 78c, vs. consensus of 62c. Sees FY11 sales of $187M - $192M, vs. estimate of $183M. - Monster Worldwide ([MWW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MWW&selected=MWW)) ) 27% HIGHER; reports Q3 EPS of $0.02, 1 cents better than the analyst estimate of $0.01. Revenue for the quarter was $229 million, which compares to the estimate of $226.54 million. - Coinstar (Nasdaq: CSTR) 25% HIGHER; reports Q3 EPS of $0.66, 16 cents better than the analyst estimate of $0.50. Revenue for the quarter was $380.2 million, which compares to the estimate of $381.8 million. Sees FY11 EPS of $3.00-$3.50, versus the consensus of $2.84 - General Moly, Inc. ([GMO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GMO&selected=GMO)) ) 17% HIGHER; reports Q3 loss of $0.09, versus the analyst estimate of ($0.04). Revenue for the quarter was $ million, compared to $ million in Q309. - AXT Inc. (Nasdaq: AXTI) 17% HIGHER; Revenue for the third quarter of 2010 was $26.8 million, compared with $23.2 million in the second quarter of 2010, and $16.8 million in the third quarter of 2009. Net income in the third quarter of 2010 was $5.6 million or $0.17 per diluted share compared with net income of $5.5 million or $0.17 per diluted share in the second quarter of 2010, and with a net income of $2.1 million or $0.07 per diluted share in the third quarter of 2009. **LOWER** - Newpark Res ([NR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NR&selected=NR)) ) 30% LOWER; reports Q3 EPS of $0.09, 2 cents below the analyst estimate of $0.11. Revenue for the quarter was $179.3 million, which compares to the estimate of $187.51 million. - NuVasive (Nasdaq: NUVA) 28% LOWER; reports Q3 EPS of $0.46, 4 cents better than the analyst estimate of $0.42. Revenue for the quarter was $120.3 million, which compares to the estimate of $122.30 million. Cuts FY10 EPS from $1.50 - $1.60 to $1.42 - $1.45, versus the consensus of $1.54. Cuts FY10 sales from $485 - $495 million to $470 - $475 million, versus $488 million consensus. - AMAG Pharma (Nasdaq: AMAG) 17% LOWER; reports a Q3 loss of $0.81, 28 cents better than the analyst estimate of -$1.09. Revenue for the quarter was $16.9 million, which compares to the estimate of $20.43 million. - Overstock.com Inc. (Nasdaq: OSTK) 15% LOWER; reports Q3 GAAP loss of $0.15, vs. the analyst estimate of ($0.03). The company reported a loss of 6c during the same quarter last year. Revenue for the quarter was $245.4 million, which compares to the estimate of $244.50 million. - Genworth Financial ([GNW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GNW&selected=GNW)) ) 9% LOWER; reports Q3 EPS of $0.25, even with the analyst estimate of $0.25. Revenue for the quarter was $2.67 billion, which compares to the estimate of $2.54 billion.
Stock Price 4 days before: 8.36875
Stock Price 2 days before: 8.45816
Stock Price 1 day before: 8.4916
Stock Price at release: 7.26728
Risk-Free Rate at release: 0.0014
| 5.74285 |
Symbol: B
Security: Barnes Group Inc.
Related Stocks/Topics: A|Markets
Title: Lear Capital: Too Late To Buy Gold? Take the Quiz!
Type: News
Publication: International Business Times
Publication Author: Unknown
Date: 2010-10-29 03:29:00
Article: for sure [email price alert](http://www.ibtimes.com/) [ B](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=B&selected=B) [ A](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=A&selected=A) [Wall Street Journal](http://www.ibtimes.com/)
Stock Price 4 days before: 18.6357
Stock Price 2 days before: 18.5116
Stock Price 1 day before: 18.7586
Stock Price at release: 18.0746
Risk-Free Rate at release: 0.0014
| 19.0549 |
Symbol: INFN
Security: Infinera Corporation
Related Stocks/Topics: Markets
Title: Which of These Small Caps Will Rebound in November?
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-10-29 03:44:00
Article: At the end of every quarter, I like to look back over recent market laggards. Most of the stocks that took a recent deep hit are likely to stay depressed, but some are the victim of investor over-reaction and poised for a rebound.With that in mind, let's look at the five worst-performing small caps during the past month. All of these stocks are in the [Russell 2000 Index](http://investinganswers.com/term/russell-2000-index-369) of small caps, and each sport a [market value](http://investinganswers.com/term/market-value-779) of at least $300 million. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) -- David Sterman** Savient Pharmaceuticals (Nasdaq: SVNT)**This biotech soared +83% in the third quarter. Roughly a third of that gain came on just one day in September when it received FDA approval for Krystexxa, a gout drug which targets patients for which other gout treatments have proven ineffective. Some analysts think Krystexxa represents $200-250 million in annual sales, while others peg it as a $750 million annual revenue opportunity. Global Hunter Securities figures the market niche is roughly $400 million. Savient announced back in May that it would put itself up for sale, and the FDA nod in September made it that much more attractive.But earlier this week the company announced that a few potential buyers had decided to pass on an acquisition, and the company took itself off the block. Analysts believe the company's stock had simply become too expensive, sporting a market value of $1.4 billion. That figure now stands at $800 million. All of the sudden, this stock is now more reasonably priced for a deal. So those potential bidders could well return to the table with an offer of around $18 -- roughly +50% above the current price, but -20% lower than where the stock traded just last week. With FDA approval already in hand, and the gout treatment market increasing in size, shares now look quite attractive -- with or without a deal.But a word of caution: If a buyer doesn't emerge in the next six months, Savient may need to raise more cash to launch Krystexxa commercially. And that's never a good thing for shares. **Coldwater Creek (Nasdaq: CWTR)**Retailers generally report that same store sales rose or fell by a few percentage points compared to a year earlier. But when this retailer of women's apparel and jewelry announced that same stores fell a whopping -20% in its fiscal third quarter ended October, investors ditched the stock, sending shares down more than -30% on October 19. You can't pin all the sales weakness on the company. Women's apparel sales are apparently slumping at other retailers as well. Yet Coldwater Creek's shortfall is likely toyield collateral damage. The retailer needs to sharply discount now-bloated inventories while figuring out a way to regain its merchandising touch. And the timing is lousy, heading into the all-important holiday shopping season. This stock is now quite cheap, trading at less than 0.3 times trailing sales, but is unlikely to rebound anytime soon. **Infinera (Nasdaq: INFN)**This maker of optical networking chips reported very robust third-quarter results in the middle of October, but management said fourth quarter results would not be nearly as impressive.Suddenly, a stock that had risen from $8 to $12 over the summer was once again an $8 stock. The reason for the downbeat view: major customers have finished recent network upgrades and wouldn't need many more of Infinera's chips in the near-term. Of further concern, the company had been signing up an average of four new major customers from the third quarter of 2008 to the first quarter of 2010, according to Goldman Sachs. Yet in the past two quarters, that figure has slumped to one and two, respectively. And that means sales will likely be pressured for at least a few more quarters until the company can secure more new customer wins.Citigroup's Kevin Dennean remains as a lonely [bull](http://investinganswers.com/term/bull-1772) on the stock, sticking by his "Buy" rating. His recently lowered target price of $13.50 represents more than +50% upside from current levels. But even Dennean concedes that there are few positive catalysts in the near-term. This is a stock to re-visit this winter when fourth quarter results are announced and 2011 guidance is issued.Earlier this week's Infinera's rival, **Oclaro (Nasdaq: OCLR)** issued similarly tepid fourth quarter guidance, and shares also look like dead money in the near-term. **Dex One (Nasdaq: DEXO)**A large [debt load](http://investinganswers.com/term/debt-load-1901) continues to scare off investors at this publisher. I noted back in August that caution was warranted, and that notion still applies. [Read: " [4 Rebound Stocks Worth a Closer Look](http://www.streetauthority.com/a/4-rebound-stocks-worth-closer-look-456501) "] But it's still worth listening to the company's November 9 conference call. If [cash flow](http://investinganswers.com/term/cash-flow-1175) is holding up better than some investors fear, then this stock would start to look like a deep value play. **Action to Take -->** Of the stocks profiled here, Savient Pharma looks to be the most appealing, regardless of whether or not a suitor re-emerges.Dex One's recent fall indicates that recent quarterly trends are weak. But if management can point to robust cash flow on the upcoming conference call, then shares, which have fallen nearly -80% this year, could see new life. But before jumping in, listen for management commentary about any near-term debt obligations.[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: 8.24049
Stock Price 2 days before: 8.2842
Stock Price 1 day before: 8.46901
Stock Price at release: 8.2903
Risk-Free Rate at release: 0.0014
| 8.39281 |
Symbol: AMTD
Security: AMTD IDEA Group
Related Stocks/Topics: COF|Markets|SCHW|ALL|MSFT|BBY|NFLX|SBUX|JPM|TZOO|C
Title: Vertro: A Potential 10-Bagger
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-10-31 04:39:00
Article: ** [John Gilliam](http://www.pointclearstrategiccapital.com/) submits:**In April of 2004, a small company called Travelzoo (Nasdaq: TZOO) had a number of investors who started pushing a concept - buy shares of TZOO, subscribe to their email travel specials newsletter (give them your email address) and then get as many of your friends and associates as possible to buy the stock and subscribe to the newsletter too. It was a grass roots marketing twist on the old Peter Lynch concept of investing where you shop and shopping where you invest.Travelzoo's business model was driven by the distribution of travel discounts and specials through email newsletters, so the company was able to charge travel suppliers higher rates when they had more subscribers. The concept apparently worked, as the number of subscribers increased significantly and TZOO reported sequential revenue gains of 11% for the first quarter this movement began (Q2 2004) and then 32% the next quarter (Q3 2004). The movement was quite effective and rewarding for those who participated. The stock had an even greater trajectory, moving from the $7 - $8 range in March to over $20 per share over the next few months as it became apparent that TZOO's growth was starting to accelerate. What happened after that is debatable, but most agree that a short squeeze became the primary driver of TZOO's stock for the rest of 2004, with the stock moving to over $100 per share towards the end of the fourth quarter.What is often overlooked- or at least marginalized- is the impact that the huge spike in subscribers and revenue likely had on the stock and the effect of new retail buyers showing up daily to buy more shares while the short sellers were scrambling to cover their positions. At a minimum, the 32% sequential growth TZOO reported in Q3 of that year added fuel to a fire that needed very little. It seemed to start the "snowball effect' - the more the stock moved up, the more consumers/investors became aware of the company, the more people that bought the stock and subscribed to the newsletter, the more that TZOO could charge to an ever increasing stable of advertisers, the more revenue TZOO reported... and so on.It is really quite amazing what transpired in less than a calendar year, where investors who bought into the concept early enough could have made 20x their money in TZOO stock and even the late-comers (TZOO was still trading in the teens in June) had the chance to make 5x or 6x their money in six months. All of this for a tiny company based in New York that had 42 employees, a single digit stock that traded less than 30,000 shares per day and earned essentially all of its revenue in a business that seemed to have very few barriers to entry.Vertro (Nasdaq: VTRO) is a small company that appears to be benefiting from a nascent "buy the stock / use the service" movement, much like the message board-driven movement that began with Travelzoo shareholders in 2004. The similarities between Travelzoo in March of 2004 and Vertro in October of 2010 are striking:While Vertro does not have quite as many shares sold short as Travelzoo reportedly had prior to its run, it actually carries a higher short ratio given the extraordinarily low trading volume in its shares. The short interest could be covered in about seven trading days at current volumes. This is really not all that surprising though, considering how far off mainstream investors' radar screens Vertro is currently. How could a company with the potential of Vertro - increasingly strong reported results, cash equal to 1/3 of market cap in the bank, very high margins and seemingly (per recent PR's) on the verge of a major growth spurt - remain so far below investor's radar? Quite simply, it is due to guilt by association. Not enough time has passed since Vertro was a division of a company called Miva. In fact, if you visit the Motley Fool website and type in the stock symbol for Vertro ([VTRO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VTRO&selected=VTRO)) ), you will get the current stock quote for Vertro, but it is still listed as "Miva". Miva has the ignominious misfortune of being known as the company who pursued the same business model (Pay Per Click Advertising - PPC) that made Google (Nasdaq: GOOG) into one of the world's largest / most powerful companies, but failed to turn a profit and managed to miss revenue targets year after year.Even worse, Miva was in the PPC advertising business BEFORE Google but never could put the pieces together to make it consistently profitable. When the current Vertro management took the reigns at Miva, they set out to dump the red ink gushing from Miva's PPC business and focus on a division within the company called Miva Direct (now ALOT.com) that actually made money. That division marketed value-added toolbars, home pages and desktop search functionality that was monetized through a partnership with Google. The business that became ALOT.com was an extraordinary business: It did over $40 million in revenue when management first took over, turned out 95% or better margins that could be run with signficantly fewer employees, less risk, less capital, etc.It was adding over $5 million per year to Miva's bottom line, but the Miva PPC business was losing money faster than ALOT.com could make it. It took existing management almost two years to jettison Miva and near the end it was taking so much cash to keep it afloat that it almost strangled the ALOT.com business, which declined by about 40% as a result of the cash drain necessary to prop up the Miva PPC business. The sale of the Miva PPC business and the Miva name was completed in late March of 2009 for $10 million in cash to Adknowledge. The company formerly known as Miva became Vertro and the sale proceeds left enough for management to slowly rebuild the ALOT.com business while working through the many legacy issues from the Miva business. The process took about 18 months and has only recently been completed.Vertro's ALOT.com business has evolved to the point where it has now been GAAP profitable for three straight quarters (will likely be four straight when they report in a couple of weeks) and we believe that Q4 2010 will see the business climb back to the $10 million + revenue range in a quarter where opex will actually DECREASE from Q1 , Q2 and Q3 levels. While there are some idiosyncracies about this business and the timing and flow of traffic and revenue, we believe that the results for Q4 will herald a new period of growth for Vertro. The company has now achieved a critical mass of toolbar/home page users that should allow it to easily cover all the fixed operating costs of running this business each quarter. It should also generate enough revenue to begin spending more on advertising to attract new users for its Alot toolbars and HomePage. Thus, we believe that the company can grow revenue by 20% or more per year. It can do so by increasing its ad spend around 15-20% per year while maintaining non-advertising opex at existing levels or only fractionally higher.The premise of the Alot.com business is very simple and easy to understand. The company makes money when consumers click on the ads provided by Google (or Yahoo ([YHOO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=YHOO&selected=YHOO)) )/ Bing ([MSFT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MSFT&selected=MSFT)) ) for certain searches) while using the Alot applications. If a consumer is searching for something, for instance, if they want to open an account to trade stocks online, they might enter the term "online stock broker" into the search box on their Alot toolbar or homepage. The search is powered by Google and returns the same websites and ads that would appear if the search had been conducted from the Google homepage. There will be website links at the top and on the sides of the page that are "paid links" that are placed by advertisers who bid in an auction type format to have their ad at the top of Google results for that given search term. When a searcher/consumer clicks on that ad/link to the company's website, the advertiser/company pays the amount it bid per click to Google. Google will in turn pay some percentage of that revenue to Alot.com/Vertro. While this percentage is not disclosed, we have determined from a number of evidentiary sources that the amount is approximately 80%. So it is basically a split where Google keeps 20% and pays the remaining 80% of the revenue to Vertro. The company's motto is - "We make the internet easy". Alot offers customizable toolbars, buttons and what is arguably the best and most user friendly customizable home page available. The buttons can be used to allow a consumer to interact with their favorite apps (Facebook, Email, MySpace, Hulu, etc.) without leaving the web page they are on and it allows them to use many unique Alot apps (ALOT Radio Player, "To Do" list, Stock Quotes, scrolling news feeds from the Wall Street Journal, BusinessWeek, Fast Company, CNN, Fox News, literally hundreds of options) in a format that is easy to access and interact with. The ALOT Home page setup is remarkably simple and allows any consumer to have just about everything they use online just one click away from their start page with less than a five minute initial setup that allows a user to just click, drag and drop the content of their choice where they want it on their own home page.Vertro's business model is to acquire toolbar/home page users at an average customer acquisition cost of around $1 who will use the search service enough to generate $1.50 - $1.60 in revenue over the time that they keep the toolbar installed. Due to the time it took to complete the sale of Miva and the management focus and resources necessary to work through all the Miva issues remaining (shuttering European offices, unraveling currency hedge transactions, sub leasing office space, dealing with Nasdaq listing issues and other issues finally resolved over the last few months), Vertro management has only had a short time to focus on improving the fundamentals of the business. In this very short time, they have already been able to achieve greater efficiencies in ad buying, increased conversion ratios and improved customer retention.Now that management can focus its entire attention on growing Vertro (instead of undoing the last vestiges of Miva), we expect to see a number of initiatives that can potentially allow Vertro to acquire customers at even lower rates, offer those customers greater valued added applications so that they will continue to use the toolbar/home page longer and simply find more ways to keep their existing customers "engaged" so they will not just keep the toolbar, but use it on a regular basis for their searching.We believe these are very attainable goals and note that $1.60 of search revenue over the lifetime of a toolbar user seems very, very low. That is only four clicks on an average ad over the time that a user has the toolbar installed if you apply Google's average cost per click of around 50 cents and take Vertro's estimated 80% revenue share. If the company has achieved profitability with a model that seeks to earn search revenue of $1.60 over the life of each user, how profitable will they be if they can find a way to average one more click per user? Based on the averages, that would equate to a 20% increase in revenue for Vertro on the same expense base, which would scale earnings per share by more than 100%.While noting what an enormous difference it would make to Vertro's bottom line if they could incease that average by 20% or 25% without increasing their cost structure, we have to also consider the possibility that they could come up with a way to keep toolbar users even more engaged - where they might use the search function on a more regular basis (ie more than four or five clicks over their installed lifetime). Should they succeed, Vertro could begin posting annual profits that exceed its current cash adjusted market cap. We believe that Vertro is actually a better candidate for long term stock price appreciation based on an influx of consumer/investors who "buy the stock / use the service" than Travelzoo. However, we note that Travelzoo still trades at about a 500% premium to where it traded before it started its meteoric rise in 2004. At that time, Travelzoo was valued at approximately $15 per subscriber, so the thinking was that each new subscriber to the "buy TZOO stock, subscribe to its newsletter" program added $15 or more in value for Travelzoo. As the stock increased in value, it was easy to argue that this incremental value increased as the company became better able to monetize its growing subscriber base as new advertisers came on board to gain exposure to the rapidly growing stable of subscribers. As more investors signed up for the TZOO newsletter and bought the stock, the stock moved higher and the value per subscriber (market cap divided by the number of subscribers) kept climbing and there became an increasingly more tenuous relationship between the number of new subscribers and the actual value that a new email address in the newsletter database added for Travelzoo. This metric evenutally surpassed $200 per subscriber. Of course, that was not a sustainable valuation and we eventually saw this metric decline to more realistic levels and settle in its current $20 - $30 per subscriber valuation range (based on the range of the last couple of quarters).In our estimation, Vertro is a superior candidate for a "buy the stock / use the service" approach because there is a more tangible connection between the value of each new consumer/investor and the value of the company, as each new user will generate actual revenue in real time based on how often they use the Alot toolbar/Home Page for searching and shopping online. Each of these free (Vertro has no customer acquistion cost for these users recruited by other consumer/investors) toolbar/homepage users will have a vested interest in seeing Vertro earn more revenue. They will be more likely to remember to use the Alot toolbar for all of their searching and online shopping or adopt the ALOT home page as their default starting point.Additionally, the types of search queries performed by these consumer/investors are more likely to be among the higher search revenue generating verticals than a typical toolbar user acquired through the Vertro marketing machine. Investors are among the most coveted (by advertisers) of consumers, due to their propensity to consume high margin financial services, which is reflected in the rates advertisers are willing to pay to reach them. This is why many large, well-financed companies will pay among the highest of pay per click fees to be at the top of searches that are likely to be queried by investors.Such search queries that include terms like insurance, stock broker, online banking, tax attorney, credit cards, mortgage rates, refinancing, etc. are competitvely bid very high by firms like Geico, Allstate ([ALL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ALL&selected=ALL)) ), E*trade ([ETFC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ETFC&selected=ETFC)) ), Schwab ([SCHW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SCHW&selected=SCHW)) ), Ameritrade ([AMTD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMTD&selected=AMTD)) ), Capital One ([COF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=COF&selected=COF)) ), JP Morgan Chase ([JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM)) ) and Citgroup ([C](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=C&selected=C)) ). These firms routinely pay rates of more than $20 per click to have their ad at the top of the search results. Thus, when a new consumer/investor buys Vertro stock and starts to use the ALOT.com toolbar or HomePage to do his searching and shopping online, he could generate ACTUAL REVENUE to Vertro of $20 - $30 just by clicking two or three of the ads the first time he decides to shop his auto insurance, compare discount stock broker offerings or shop rates to refinance his mortgage.Given that Vertro/ALOT has built a base of users that generate enough revenue to cover its small fixed expense base, one could argue that each dollar of revenue that is generated by one of these new consumer/investors goes straight to the bottom line. If that same consumer/investor uses the ALOT.com toolbar / HomePage every day for all this searching and shopping online, he could literally generate hundreds or even thousands of dollars in revenue for Vertro over his lifetime. Each use of the search services generates CASH that is paid by Google to Vertro at the end of each month versus the theoretical increase in value for an incremental Travelzoo newsletter subscriber. We also believe this business model makes Vertro an extraordinary example of a new and improved version of the Lynch concept of investing where you shop and shopping where you invest. Whereas, Lynch might suggest you invest in Starbucks ([SBUX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SBUX&selected=SBUX)) ) because you buy your coffee there or that you shop at Best Buy ([BBY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BBY&selected=BBY)) ) because you own their stock, Vertro's unique business model allows an investor to enhance his company's bottom line merely by SHOPPING there.At Starbucks, you need to actually BUY the $4.50 cup of coffee to help the company's bottom line. At Best Buy you need to PURCHASE a $500 - $600 laptop computer to generate $4 - $10 in profit for the company. A Vertro shareholder using the ALOT.com toolbar/homepage can generate more than that $4 - $10 for Vertro by using his ALOT toolbar or HomePage to search/shop for a laptop computer, when he visits several of the advertiser's sites before deciding which one to buy from. Thus, a consumer/investor can add substantial incremental revenue for Vertro just by using the ALOT toolbar and/or HomePage for all of his searching and online shopping.The concept of buy the stock / use the service started as a spark and eventually became an enormous blaze for Travelzoo. It would be difficult to counter the assertion that the combination of this consumer buy-in and the short squeeze actually had a large substantive impact on Travelzoo's prospects, with the best evidence being the huge spike in the number of users, advertisers, revenue and profits that occurred during this period. This would probably not have occurred in the absence of the buy-in and the buzz that surrounded it. Additionally, the company was able to float a private placement of stock that generated enough cash to keep the company's coffers full through any slow periods that materialzed over the next few years.It appears that a similar movement may be ramping up with Vertro as we see more message board chatter, recent management indications of large increases in toobar users / revenue with lower average customer acquisition costs and increased stock trading volume with smaller lots.We recognize that it would be a stretch to suggest that any stock is going to increase 20-fold in less than a year as Travelzoo did in 2004. It would be a stretch even to say that another company could experience the full blown impact that we saw with Travelzoo, where the attention of millions of investors was captured for a time. We do believe that a grass roots/viral investor movement seeking to add a few thousand toolbar users could snowball, take on a life of its own and result in exponential gains for holders of a small company like Vertro's stock. However, we do not believe that is necessary for investors in Vertro shares to be rewarded substantially. We believe that the Vertro story is going to start being "discovered" by more retail and institutional investors over the next few months, just as Vertro's leverage and ability to scale earnings becomes evident in its reported results each quarter. As that plays out, it is difficult to imagine a scenario that would allow it to continue to trade at single digit multiples of its earnings. Investors able to build a position in the current trading range ($2.85 - $3.15 over the last few trading days) could score a "10 bagger" over the next 12 - 18 months as the stock moves higher based simply on its reported results and improved investor awareness of the story. We believe that Vertro is entering a growth phase that will begin to be evidenced by results in the current quarter (Q4 2010), where we expect that the company will achieve $10 million in revenue for the first time since becoming a standalone company. We believe Vertro will be able to scale rapidly moving forward now, with percentage increases in opex much smaller than the percentage increases in earnings that will result. Our earnings target for 2011 is $1.02 per share based on 6,830,000 shares outstanding and the following assumptions:Revenue Non Ad Opex AdvertisingQ1 2011 $10,100,000 $2,700,000 $6,000,000Q2 2011 $10,650,000 $2,700,000 $6,700,000Q3 2011 $11,342,250 $2,700,000 $7,000,000Q4 2011 $11,909,363 $2,700,000 $6,500,000Totals = $44,001,613 $10,800,000 $26,200,000Total 2011 Opex = $37,000,000Total 2011 Profit = $7,001,613 or $1.02 per shareIn the same way that stocks receiving much favorable attention from Wall Street analysts and main street investors can experience a valuation disconnect (ie P/E ratios of 100x for stocks growing at 30 - 40% per year) while they remain in favor, stocks that are either out of favor with Wall Street analysts or undiscovered by main street can experience a valuation disconnect going the other way. We believe that is the current situation with Vertro, where retail analyst coverage is nonexistent and most investors are unaware that the company even exists.The result is a stock that it is only trading at 3x 2011 earnings even though it is solidly profitable and should grow earnings by 100% or more over the next 12 months. We believe this is an extreme example of a valuation disconnect. We expect that investors will soon bid the shares up to a valuation more in line with what should be expected for a company with 96% margins, a highly predictable and disciplined cost structure and the ability to produce double digit revenue growth for the next couple of years while producing triple digit percentage earnings per share growth.Given the valuations accorded other consumer-oriented stocks that have shown exponential growth potential like Netflix ([NFLX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NFLX&selected=NFLX)) ) and Open Table ([OPEN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OPEN&selected=OPEN)) ), we do not think it unreasonable that a stock with these characteristics could be trading at 25 - 30x 2011 earnings over the next 12 months, giving us our ten bagger without the necessity of a Travelzoo type scenario. On the other hand, given that there are only 2.9 million shares in the public float and that it has averaged trading only about 13,000 shares per day, any uptick in demand could trigger a "snowball effect" that attracts even greater investor attention to the story and accelerates the grass roots "buy the stock / use the service" movement similar to the Travelzoo shareholders' experience. **Disclosure:** Long VTRO, Long GOOGSee also [James O'Shaughnessy's 5 Minute Mechanical Investing Strategy](http://seekingalpha.com/article/236778-james-oshaughnessy-s-5-minute-mechanical-investing-strategy?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 16.6565
Stock Price 2 days before: 16.9293
Stock Price 1 day before: 17.0867
Stock Price at release: 17.1185
Risk-Free Rate at release: 0.0014
| 16.8624 |
Symbol: AMTD
Security: AMTD IDEA Group
Related Stocks/Topics: COF|Markets|SCHW|ALL|MSFT|BBY|NFLX|SBUX|GOOG|JPM|TZOO|C
Title: Is Vertro the Next Travelzoo?
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-10-31 04:39:00
Article: ** [John Gilliam](http://www.pointclearstrategiccapital.com/) submits:**In April of 2004, a small company called Travelzoo (Nasdaq: TZOO) had a number of investors who started pushing a concept - buy shares of TZOO, subscribe to their email travel specials newsletter (give them your email address) and then get as many of your friends and associates as possible to buy the stock and subscribe to the newsletter too. It was a grass roots marketing twist on the old Peter Lynch concept of investing where you shop and shopping where you invest.Travelzoo's business model was driven by the distribution of travel discounts and specials through email newsletters, so the company was able to charge travel suppliers higher rates when they had more subscribers. The concept apparently worked, as the number of subscribers increased significantly and TZOO reported sequential revenue gains of 11% for the first quarter this movement began (Q2 2004) and then 32% the next quarter (Q3 2004). The movement was quite effective and rewarding for those who participated. The stock had an even greater trajectory, moving from the $7 - $8 range in March to over $20 per share over the next few months as it became apparent that TZOO's growth was starting to accelerate. What happened after that is debatable, but most agree that a short squeeze became the primary driver of TZOO's stock for the rest of 2004, with the stock moving to over $100 per share towards the end of the fourth quarter.What is often overlooked- or at least marginalized- is the impact that the huge spike in subscribers and revenue likely had on the stock and the effect of new retail buyers showing up daily to buy more shares while the short sellers were scrambling to cover their positions. At a minimum, the 32% sequential growth TZOO reported in Q3 of that year added fuel to a fire that needed very little. It seemed to start the "snowball effect' - the more the stock moved up, the more consumers/investors became aware of the company, the more people that bought the stock and subscribed to the newsletter, the more that TZOO could charge to an ever increasing stable of advertisers, the more revenue TZOO reported... and so on.It is really quite amazing what transpired in less than a calendar year, where investors who bought into the concept early enough could have made 20x their money in TZOO stock and even the late-comers (TZOO was still trading in the teens in June) had the chance to make 5x or 6x their money in six months. All of this for a tiny company based in New York that had 42 employees, a single digit stock that traded less than 30,000 shares per day and earned essentially all of its revenue in a business that seemed to have very few barriers to entry.Vertro (Nasdaq: VTRO) is a small company that appears to be benefiting from a nascent "buy the stock / use the service" movement, much like the message board-driven movement that began with Travelzoo shareholders in 2004. The similarities between Travelzoo in March of 2004 and Vertro in October of 2010 are striking:While Vertro does not have quite as many shares sold short as Travelzoo reportedly had prior to its run, it actually carries a higher short ratio given the extraordinarily low trading volume in its shares. The short interest could be covered in about seven trading days at current volumes. This is really not all that surprising though, considering how far off mainstream investors' radar screens Vertro is currently. How could a company with the potential of Vertro - increasingly strong reported results, cash equal to 1/3 of market cap in the bank, very high margins and seemingly (per recent PR's) on the verge of a major growth spurt - remain so far below investor's radar? Quite simply, it is due to guilt by association. Not enough time has passed since Vertro was a division of a company called Miva. In fact, if you visit the Motley Fool website and type in the stock symbol for Vertro ([VTRO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VTRO&selected=VTRO)) ), you will get the current stock quote for Vertro, but it is still listed as "Miva". Miva has the ignominious misfortune of being known as the company who pursued the same business model (Pay Per Click Advertising - PPC) that made Google (Nasdaq: GOOG) into one of the world's largest / most powerful companies, but failed to turn a profit and managed to miss revenue targets year after year.Even worse, Miva was in the PPC advertising business BEFORE Google but never could put the pieces together to make it consistently profitable. When the current Vertro management took the reigns at Miva, they set out to dump the red ink gushing from Miva's PPC business and focus on a division within the company called Miva Direct (now ALOT.com) that actually made money. That division marketed value-added toolbars, home pages and desktop search functionality that was monetized through a partnership with Google. The business that became ALOT.com was an extraordinary business: It did over $40 million in revenue when management first took over, turned out 95% or better margins that could be run with signficantly fewer employees, less risk, less capital, etc.It was adding over $5 million per year to Miva's bottom line, but the Miva PPC business was losing money faster than ALOT.com could make it. It took existing management almost two years to jettison Miva and near the end it was taking so much cash to keep it afloat that it almost strangled the ALOT.com business, which declined by about 40% as a result of the cash drain necessary to prop up the Miva PPC business. The sale of the Miva PPC business and the Miva name was completed in late March of 2009 for $10 million in cash to Adknowledge. The company formerly known as Miva became Vertro and the sale proceeds left enough for management to slowly rebuild the ALOT.com business while working through the many legacy issues from the Miva business. The process took about 18 months and has only recently been completed.Vertro's ALOT.com business has evolved to the point where it has now been GAAP profitable for three straight quarters (will likely be four straight when they report in a couple of weeks) and we believe that Q4 2010 will see the business climb back to the $10 million + revenue range in a quarter where opex will actually DECREASE from Q1 , Q2 and Q3 levels. While there are some idiosyncracies about this business and the timing and flow of traffic and revenue, we believe that the results for Q4 will herald a new period of growth for Vertro. The company has now achieved a critical mass of toolbar/home page users that should allow it to easily cover all the fixed operating costs of running this business each quarter. It should also generate enough revenue to begin spending more on advertising to attract new users for its Alot toolbars and HomePage. Thus, we believe that the company can grow revenue by 20% or more per year. It can do so by increasing its ad spend around 15-20% per year while maintaining non-advertising opex at existing levels or only fractionally higher.The premise of the Alot.com business is very simple and easy to understand. The company makes money when consumers click on the ads provided by Google (or Yahoo ([YHOO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=YHOO&selected=YHOO)) )/ Bing ([MSFT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MSFT&selected=MSFT)) ) for certain searches) while using the Alot applications. If a consumer is searching for something, for instance, if they want to open an account to trade stocks online, they might enter the term "online stock broker" into the search box on their Alot toolbar or homepage. The search is powered by Google and returns the same websites and ads that would appear if the search had been conducted from the Google homepage. There will be website links at the top and on the sides of the page that are "paid links" that are placed by advertisers who bid in an auction type format to have their ad at the top of Google results for that given search term. When a searcher/consumer clicks on that ad/link to the company's website, the advertiser/company pays the amount it bid per click to Google. Google will in turn pay some percentage of that revenue to Alot.com/Vertro. While this percentage is not disclosed, we have determined from a number of evidentiary sources that the amount is approximately 80%. So it is basically a split where Google keeps 20% and pays the remaining 80% of the revenue to Vertro. The company's motto is - "We make the internet easy". Alot offers customizable toolbars, buttons and what is arguably the best and most user friendly customizable home page available. The buttons can be used to allow a consumer to interact with their favorite apps (Facebook, Email, MySpace, Hulu, etc.) without leaving the web page they are on and it allows them to use many unique Alot apps (ALOT Radio Player, "To Do" list, Stock Quotes, scrolling news feeds from the Wall Street Journal, BusinessWeek, Fast Company, CNN, Fox News, literally hundreds of options) in a format that is easy to access and interact with. The ALOT Home page setup is remarkably simple and allows any consumer to have just about everything they use online just one click away from their start page with less than a five minute initial setup that allows a user to just click, drag and drop the content of their choice where they want it on their own home page.Vertro's business model is to acquire toolbar/home page users at an average customer acquisition cost of around $1 who will use the search service enough to generate $1.50 - $1.60 in revenue over the time that they keep the toolbar installed. Due to the time it took to complete the sale of Miva and the management focus and resources necessary to work through all the Miva issues remaining (shuttering European offices, unraveling currency hedge transactions, sub leasing office space, dealing with Nasdaq listing issues and other issues finally resolved over the last few months), Vertro management has only had a short time to focus on improving the fundamentals of the business. In this very short time, they have already been able to achieve greater efficiencies in ad buying, increased conversion ratios and improved customer retention.Now that management can focus its entire attention on growing Vertro (instead of undoing the last vestiges of Miva), we expect to see a number of initiatives that can potentially allow Vertro to acquire customers at even lower rates, offer those customers greater valued added applications so that they will continue to use the toolbar/home page longer and simply find more ways to keep their existing customers "engaged" so they will not just keep the toolbar, but use it on a regular basis for their searching.We believe these are very attainable goals and note that $1.60 of search revenue over the lifetime of a toolbar user seems very, very low. That is only four clicks on an average ad over the time that a user has the toolbar installed if you apply Google's average cost per click of around 50 cents and take Vertro's estimated 80% revenue share. If the company has achieved profitability with a model that seeks to earn search revenue of $1.60 over the life of each user, how profitable will they be if they can find a way to average one more click per user? Based on the averages, that would equate to a 20% increase in revenue for Vertro on the same expense base, which would scale earnings per share by more than 100%.While noting what an enormous difference it would make to Vertro's bottom line if they could incease that average by 20% or 25% without increasing their cost structure, we have to also consider the possibility that they could come up with a way to keep toolbar users even more engaged - where they might use the search function on a more regular basis (ie more than four or five clicks over their installed lifetime). Should they succeed, Vertro could begin posting annual profits that exceed its current cash adjusted market cap. We believe that Vertro is actually a better candidate for long term stock price appreciation based on an influx of consumer/investors who "buy the stock / use the service" than Travelzoo. However, we note that Travelzoo still trades at about a 500% premium to where it traded before it started its meteoric rise in 2004. At that time, Travelzoo was valued at approximately $15 per subscriber, so the thinking was that each new subscriber to the "buy TZOO stock, subscribe to its newsletter" program added $15 or more in value for Travelzoo. As the stock increased in value, it was easy to argue that this incremental value increased as the company became better able to monetize its growing subscriber base as new advertisers came on board to gain exposure to the rapidly growing stable of subscribers. As more investors signed up for the TZOO newsletter and bought the stock, the stock moved higher and the value per subscriber (market cap divided by the number of subscribers) kept climbing and there became an increasingly more tenuous relationship between the number of new subscribers and the actual value that a new email address in the newsletter database added for Travelzoo. This metric evenutally surpassed $200 per subscriber. Of course, that was not a sustainable valuation and we eventually saw this metric decline to more realistic levels and settle in its current $20 - $30 per subscriber valuation range (based on the range of the last couple of quarters).In our estimation, Vertro is a superior candidate for a "buy the stock / use the service" approach because there is a more tangible connection between the value of each new consumer/investor and the value of the company, as each new user will generate actual revenue in real time based on how often they use the Alot toolbar/Home Page for searching and shopping online. Each of these free (Vertro has no customer acquistion cost for these users recruited by other consumer/investors) toolbar/homepage users will have a vested interest in seeing Vertro earn more revenue. They will be more likely to remember to use the Alot toolbar for all of their searching and online shopping or adopt the ALOT home page as their default starting point.Additionally, the types of search queries performed by these consumer/investors are more likely to be among the higher search revenue generating verticals than a typical toolbar user acquired through the Vertro marketing machine. Investors are among the most coveted (by advertisers) of consumers, due to their propensity to consume high margin financial services, which is reflected in the rates advertisers are willing to pay to reach them. This is why many large, well-financed companies will pay among the highest of pay per click fees to be at the top of searches that are likely to be queried by investors.Such search queries that include terms like insurance, stock broker, online banking, tax attorney, credit cards, mortgage rates, refinancing, etc. are competitvely bid very high by firms like Geico, Allstate ([ALL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ALL&selected=ALL)) ), E*trade ([ETFC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ETFC&selected=ETFC)) ), Schwab ([SCHW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SCHW&selected=SCHW)) ), Ameritrade ([AMTD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMTD&selected=AMTD)) ), Capital One ([COF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=COF&selected=COF)) ), JP Morgan Chase ([JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM)) ) and Citgroup ([C](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=C&selected=C)) ). These firms routinely pay rates of more than $20 per click to have their ad at the top of the search results. Thus, when a new consumer/investor buys Vertro stock and starts to use the ALOT.com toolbar or HomePage to do his searching and shopping online, he could generate ACTUAL REVENUE to Vertro of $20 - $30 just by clicking two or three of the ads the first time he decides to shop his auto insurance, compare discount stock broker offerings or shop rates to refinance his mortgage.Given that Vertro/ALOT has built a base of users that generate enough revenue to cover its small fixed expense base, one could argue that each dollar of revenue that is generated by one of these new consumer/investors goes straight to the bottom line. If that same consumer/investor uses the ALOT.com toolbar / HomePage every day for all this searching and shopping online, he could literally generate hundreds or even thousands of dollars in revenue for Vertro over his lifetime. Each use of the search services generates CASH that is paid by Google to Vertro at the end of each month versus the theoretical increase in value for an incremental Travelzoo newsletter subscriber. We also believe this business model makes Vertro an extraordinary example of a new and improved version of the Lynch concept of investing where you shop and shopping where you invest. Whereas, Lynch might suggest you invest in Starbucks ([SBUX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SBUX&selected=SBUX)) ) because you buy your coffee there or that you shop at Best Buy ([BBY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BBY&selected=BBY)) ) because you own their stock, Vertro's unique business model allows an investor to enhance his company's bottom line merely by SHOPPING there.At Starbucks, you need to actually BUY the $4.50 cup of coffee to help the company's bottom line. At Best Buy you need to PURCHASE a $500 - $600 laptop computer to generate $4 - $10 in profit for the company. A Vertro shareholder using the ALOT.com toolbar/homepage can generate more than that $4 - $10 for Vertro by using his ALOT toolbar or HomePage to search/shop for a laptop computer, when he visits several of the advertiser's sites before deciding which one to buy from. Thus, a consumer/investor can add substantial incremental revenue for Vertro just by using the ALOT toolbar and/or HomePage for all of his searching and online shopping.The concept of buy the stock / use the service started as a spark and eventually became an enormous blaze for Travelzoo. It would be difficult to counter the assertion that the combination of this consumer buy-in and the short squeeze actually had a large substantive impact on Travelzoo's prospects, with the best evidence being the huge spike in the number of users, advertisers, revenue and profits that occurred during this period. This would probably not have occurred in the absence of the buy-in and the buzz that surrounded it. Additionally, the company was able to float a private placement of stock that generated enough cash to keep the company's coffers full through any slow periods that materialzed over the next few years.It appears that a similar movement may be ramping up with Vertro as we see more message board chatter, recent management indications of large increases in toobar users / revenue with lower average customer acquisition costs and increased stock trading volume with smaller lots.We recognize that it would be a stretch to suggest that any stock is going to increase 20-fold in less than a year as Travelzoo did in 2004. It would be a stretch even to say that another company could experience the full blown impact that we saw with Travelzoo, where the attention of millions of investors was captured for a time. We do believe that a grass roots/viral investor movement seeking to add a few thousand toolbar users could snowball, take on a life of its own and result in exponential gains for holders of a small company like Vertro's stock. However, we do not believe that is necessary for investors in Vertro shares to be rewarded substantially. We believe that the Vertro story is going to start being "discovered" by more retail and institutional investors over the next few months, just as Vertro's leverage and ability to scale earnings becomes evident in its reported results each quarter. As that plays out, it is difficult to imagine a scenario that would allow it to continue to trade at single digit multiples of its earnings. Investors able to build a position in the current trading range ($2.85 - $3.15 over the last few trading days) could score a "10 bagger" over the next 12 - 18 months as the stock moves higher based simply on its reported results and improved investor awareness of the story. We believe that Vertro is entering a growth phase that will begin to be evidenced by results in the current quarter (Q4 2010), where we expect that the company will achieve $10 million in revenue for the first time since becoming a standalone company. We believe Vertro will be able to scale rapidly moving forward now, with percentage increases in opex much smaller than the percentage increases in earnings that will result. Our earnings target for 2011 is $1.02 per share based on 6,830,000 shares outstanding and the following assumptions:Revenue Non Ad Opex AdvertisingQ1 2011 $10,100,000 $2,700,000 $6,000,000Q2 2011 $10,650,000 $2,700,000 $6,700,000Q3 2011 $11,342,250 $2,700,000 $7,000,000Q4 2011 $11,909,363 $2,700,000 $6,500,000Totals = $44,001,613 $10,800,000 $26,200,000Total 2011 Opex = $37,000,000Total 2011 Profit = $7,001,613 or $1.02 per shareIn the same way that stocks receiving much favorable attention from Wall Street analysts and main street investors can experience a valuation disconnect (ie P/E ratios of 100x for stocks growing at 30 - 40% per year) while they remain in favor, stocks that are either out of favor with Wall Street analysts or undiscovered by main street can experience a valuation disconnect going the other way. We believe that is the current situation with Vertro, where retail analyst coverage is nonexistent and most investors are unaware that the company even exists.The result is a stock that it is only trading at 3x 2011 earnings even though it is solidly profitable and should grow earnings by 100% or more over the next 12 months. We believe this is an extreme example of a valuation disconnect. We expect that investors will soon bid the shares up to a valuation more in line with what should be expected for a company with 96% margins, a highly predictable and disciplined cost structure and the ability to produce double digit revenue growth for the next couple of years while producing triple digit percentage earnings per share growth.Given the valuations accorded other consumer-oriented stocks that have shown exponential growth potential like Netflix ([NFLX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NFLX&selected=NFLX)) ) and Open Table ([OPEN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OPEN&selected=OPEN)) ),we do not think it unreasonable that a stock with these characteristics could be trading at 25 - 30x 2011 earnings over the next 12 months, giving us our ten bagger without the necessity of a Travelzoo type scenario. On the other hand, given that there are only 2.9 million shares in the public float and that it has averaged trading only about 13,000 shares per day, any uptick in demand could trigger a "snowball effect" that attracts even greater investor attention to the story and accelerates the grass roots "buy the stock / use the service" movement similar to the Travelzoo shareholders' experience. **Disclosure:** Long VTRO, Long GOOGSee also [Marty Whitman: Great Stock Picker, Wrong on Diversification](http://seekingalpha.com/article/233654-marty-whitman-great-stock-picker-wrong-on-diversification?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 16.6565
Stock Price 2 days before: 16.9293
Stock Price 1 day before: 17.0867
Stock Price at release: 17.1185
Risk-Free Rate at release: 0.0014
| 16.8624 |
Symbol: CASH
Security: Pathward Financial, Inc.
Related Stocks/Topics: VRA|Markets|BOX|PACB
Title: The Secret Way to Play IPOs
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-11-01 05:56:00
Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photoA surging stock market has brought a smile to the face of investment bankers. They've suddenly found a much more receptive environment for new initial public offerings (IPOs), with 16 deals of at least $100 million being pulled off in October -- the best month for IPOs this year. And the pipeline of fresh offerings is starting to fill, which means that the whole fourth quarter could prove to be a very active period for IPOs. Notably, nearly half of October's IPOs were based in China, though that proportion should diminish in coming months. Yet a word of caution about China-based IPOs: These companies tend to disappoint investors after a quarter or two, either by missing expectations that were too high, or meeting those expectations and then quickly doing a [secondary offering](http://investinganswers.com/term/secondary-offering-1773) to raise yet more money.In a moment, we'll look at October's crop to find the best ideas, but we should first recall the " [quiet period](http://investinganswers.com/term/quiet-period-1765) " play, and how you can profit from it. After a company is taken public, its underwriters are forbidden from writing about it for a period 25 business days. But when their mouths are unzipped, they often gush, giving the stock a fresh bounce. So many investors like to find attractive-looking new companies and buy shares soon before the quiet period ends.Generally speaking, analysts will only speak cautiously of a fresh stock if it has already had a strong run since the [IPO](http://investinganswers.com/term/initial-public-offering-ipo-1076) . So looking at the table below, **China Cache (Nasdaq: CCIH)** , **TAL Education ([XRS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=XRS&selected=XRS)) )** , and **Vera Bradley ([VRA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VRA&selected=VRA)) )** are unlikely to see much of a push from analysts. (The analyst bounce can only come from IPOs that were brought public by large, reputable underwriters, which applies to all the names on this list).[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) -- David Sterman** China Ming Yang Wind Power (Nasdaq: MY)** is the classic slow-to-build [IPO](http://investinganswers.com/term/going-public-456) . The company's efforts to sell the deal were apparently underwhelming (as can be the case with many China-based IPOs, where management's English-language proficiency is not up to snuff yet). Yet this is precisely the kind of business for which analysts gush as soon as they can. First, the company is seen as a technology innovator. Second, it has a large and growing [backlog](http://investinganswers.com/term/backlog-866) . And third, the Chinese government's support of clean energy firms -- especially those that have a solid shot of cracking export markets -- means that demand should stay robust. But be ready to move quickly if the stock gets a solid bounce from analysts. That's because many rivals are lining up to go public as well, and this industry may soon suffer from too many newly-capitalized firms that all rush to add capacity at the same time with their IPO proceeds. And higher industry capacity often spells price wars -- not a good thing for Ming Yang, which has yet to even show a full-year profit and may never generate anything more than tiny profit margins once competition really builds. So this may be more of a good trade rather than a good investment. The quiet period for this stock ends this coming Friday, so you've got a relatively small window to try and play the "quiet period" bounce.In a similar vein, **Global Education & Technology (Nasdaq: GEDU)** may get an analyst-led pop in mid-November. But this education firm, along with its other China/education peers, looks awfully expensive based on traditional metrics and would need to be a good bit cheaper to be found fundamentally attractive for long-term investors. **The Thanksgiving IPO bouncers** Later this month, we'll see analyst coverage possibly boost more recent IPOs. For example, **NetSpend (Nasdaq: NTSP)** , which StreetAuthority contributor Tom Taulli wrote about, has quickly become a force in the prepaid debit card market. [ [Read Tom's article here](http://www.streetauthority.com/node/456699) ] As long as analysts are willing to overlook the taint associated with troubled financial firm **Meta Financial (Nasdaq: CASH)** , you can expect to see quite bullish reports.Soon after Thanksgiving, analysts will weigh-in on **Pacific Biosciences (Nasdaq: PACB)** and **Examworks (Nasdaq: EXAM)** . The former is a speculative but intriguing play on the ability to rapidly sequence DNA -- the company has a strong technology base, but also strong rivals. The latter is a solid, experienced firm in anti-fraud efforts. Both of these stocks should receive glowing analyst coverage.The month's last IPO, **SeaCube Container ([BOX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BOX&selected=BOX)) )** , is arguably the best value play of the whole group. The company's fully-rented fleet of specialized shipping containers means that [cash flow](http://investinganswers.com/term/cash-flow-1175) is robust and more than ample to cover the company's still-high [debt load](http://investinganswers.com/term/debt-load-1901) . SeaCube's bankers thought they could get $16 a share in the IPO, but had to cut that price to $10. Investors are shunning most shipping-related stocks, but this one may have been unfairly tarnished, as it has a more solid [business model](http://investinganswers.com/term/business-model-584) than firms like **DryShips (Nasdaq: DRYS)** . At this lower price, analysts are likely to note that shares sport a single-digit price-to-earnings ([P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459)) ) multiple, and that SeaCube could eventually offer a [dividend](http://investinganswers.com/term/dividend-1304) equating to a 7% or 8%yield , once debt levels start to come down. **Action to Take -->** The coming weeks will be an interesting test for the IPO market. If these stocks get the "analyst bounce" that I expect, then yet-to-be-priced deals will start to be seen as post-quiet plays. This was a wining approach in the 1990s and again in the middle of the last decade, and could become so once again in coming weeks.[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...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: 13.4571
Stock Price 2 days before: 12.8032
Stock Price 1 day before: 13.0402
Stock Price at release: 13.0467
Risk-Free Rate at release: 0.0014
| 13.1485 |
Symbol: PACB
Security: Pacific Biosciences of California, Inc.
Related Stocks/Topics: VRA|Markets|BOX|CASH
Title: The Secret Way to Play IPOs
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-11-01 05:56:00
Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photoA surging stock market has brought a smile to the face of investment bankers. They've suddenly found a much more receptive environment for new initial public offerings (IPOs), with 16 deals of at least $100 million being pulled off in October -- the best month for IPOs this year. And the pipeline of fresh offerings is starting to fill, which means that the whole fourth quarter could prove to be a very active period for IPOs. Notably, nearly half of October's IPOs were based in China, though that proportion should diminish in coming months. Yet a word of caution about China-based IPOs: These companies tend to disappoint investors after a quarter or two, either by missing expectations that were too high, or meeting those expectations and then quickly doing a [secondary offering](http://investinganswers.com/term/secondary-offering-1773) to raise yet more money.In a moment, we'll look at October's crop to find the best ideas, but we should first recall the " [quiet period](http://investinganswers.com/term/quiet-period-1765) " play, and how you can profit from it. After a company is taken public, its underwriters are forbidden from writing about it for a period 25 business days. But when their mouths are unzipped, they often gush, giving the stock a fresh bounce. So many investors like to find attractive-looking new companies and buy shares soon before the quiet period ends.Generally speaking, analysts will only speak cautiously of a fresh stock if it has already had a strong run since the [IPO](http://investinganswers.com/term/initial-public-offering-ipo-1076) . So looking at the table below, **China Cache (Nasdaq: CCIH)** , **TAL Education ([XRS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=XRS&selected=XRS)) )** , and **Vera Bradley ([VRA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VRA&selected=VRA)) )** are unlikely to see much of a push from analysts. (The analyst bounce can only come from IPOs that were brought public by large, reputable underwriters, which applies to all the names on this list).[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) -- David Sterman** China Ming Yang Wind Power (Nasdaq: MY)** is the classic slow-to-build [IPO](http://investinganswers.com/term/going-public-456) . The company's efforts to sell the deal were apparently underwhelming (as can be the case with many China-based IPOs, where management's English-language proficiency is not up to snuff yet). Yet this is precisely the kind of business for which analysts gush as soon as they can. First, the company is seen as a technology innovator. Second, it has a large and growing [backlog](http://investinganswers.com/term/backlog-866) . And third, the Chinese government's support of clean energy firms -- especially those that have a solid shot of cracking export markets -- means that demand should stay robust. But be ready to move quickly if the stock gets a solid bounce from analysts. That's because many rivals are lining up to go public as well, and this industry may soon suffer from too many newly-capitalized firms that all rush to add capacity at the same time with their IPO proceeds. And higher industry capacity often spells price wars -- not a good thing for Ming Yang, which has yet to even show a full-year profit and may never generate anything more than tiny profit margins once competition really builds. So this may be more of a good trade rather than a good investment. The quiet period for this stock ends this coming Friday, so you've got a relatively small window to try and play the "quiet period" bounce.In a similar vein, **Global Education & Technology (Nasdaq: GEDU)** may get an analyst-led pop in mid-November. But this education firm, along with its other China/education peers, looks awfully expensive based on traditional metrics and would need to be a good bit cheaper to be found fundamentally attractive for long-term investors. **The Thanksgiving IPO bouncers** Later this month, we'll see analyst coverage possibly boost more recent IPOs. For example, **NetSpend (Nasdaq: NTSP)** , which StreetAuthority contributor Tom Taulli wrote about, has quickly become a force in the prepaid debit card market. [ [Read Tom's article here](http://www.streetauthority.com/node/456699) ] As long as analysts are willing to overlook the taint associated with troubled financial firm **Meta Financial (Nasdaq: CASH)** , you can expect to see quite bullish reports.Soon after Thanksgiving, analysts will weigh-in on **Pacific Biosciences (Nasdaq: PACB)** and **Examworks (Nasdaq: EXAM)** . The former is a speculative but intriguing play on the ability to rapidly sequence DNA -- the company has a strong technology base, but also strong rivals. The latter is a solid, experienced firm in anti-fraud efforts. Both of these stocks should receive glowing analyst coverage.The month's last IPO, **SeaCube Container ([BOX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BOX&selected=BOX)) )** , is arguably the best value play of the whole group. The company's fully-rented fleet of specialized shipping containers means that [cash flow](http://investinganswers.com/term/cash-flow-1175) is robust and more than ample to cover the company's still-high [debt load](http://investinganswers.com/term/debt-load-1901) . SeaCube's bankers thought they could get $16 a share in the IPO, but had to cut that price to $10. Investors are shunning most shipping-related stocks, but this one may have been unfairly tarnished, as it has a more solid [business model](http://investinganswers.com/term/business-model-584) than firms like **DryShips (Nasdaq: DRYS)** . At this lower price, analysts are likely to note that shares sport a single-digit price-to-earnings ([P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459)) ) multiple, and that SeaCube could eventually offer a [dividend](http://investinganswers.com/term/dividend-1304) equating to a 7% or 8%yield , once debt levels start to come down. **Action to Take -->** The coming weeks will be an interesting test for the IPO market. If these stocks get the "analyst bounce" that I expect, then yet-to-be-priced deals will start to be seen as post-quiet plays. This was a wining approach in the 1990s and again in the middle of the last decade, and could become so once again in coming weeks.[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...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: 16.0802
Stock Price 2 days before: 16.8176
Stock Price 1 day before: 17.0819
Stock Price at release: 17.0908
Risk-Free Rate at release: 0.0014
| 12.5062 |
Symbol: SVM
Security: Silvercorp Metals Inc.
Related Stocks/Topics: Markets
Title: My Top Silver Play in the Market Right Now
Type: News
Publication: Mike Turner
Publication Author: Unknown
Date: 2010-11-01 11:15:00
Article: An historic [Federal Open Market Committee (FOMC)](http://investinganswers.com/term/federal-open-market-committee-fomc-1197) meeting is being held this week. The results of that meeting could have a significant impact on what the market does for the month of November and beyond.We get the results of the meeting Wednesday afternoon, but the Federal Reserve has telegraphed it intends to put a lot of money into the market. Estimates range between $500 billion and $1 trillion. This is real money, although it is created out of thin air and should have a major impact on the market. With [the Fed](http://investinganswers.com/term/federal-reserve-bank-1789) 's QE2 ("quantitative easing", part two), the results of the mid-term elections and the jobs report this week, the market could see a lot of volatility. I suspect most of it will be to the upside.My top silver trade for this week is **Silvercorp Metals ([SVM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SVM&selected=SVM)) )** . [To learn more how to get my free trading picks each week before the market opens, [go here](http://web.streetauthority.com/subscribe-tow.asp?TP=834) .]If my forecast charts are correct and if the Fed continues to "juice" the market with hundreds of billions of dollars, then the odds are high that precious metals stocks will do well. And SVM is my top silver play in this market right now.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) The technicals for are equally promising. Below are some specific technical observations for SVM:The fundamentals for Silvercorp Metals are strong. The fundamentals that had the largest impact on my systems include: - The growth rate for total sales for the most recent quarter compared with the same quarter a year ago was +62.7%. This compares to the gold and silver industry's growth rate of +29.9%. The S&P 500's average growth rate for the same period was +9.9%. - The total sales growth for the trailing 12 months compared with a year ago is +61.3%. The S&P 500's average growth rate during this time period is +9.10%. - [Earnings](http://investinganswers.com/term/earnings-1514) growth for the most recent quarter compared with a year ago is +85.3%. By comparison, the industry average is +16.69% and the S&P 500's growth rate is +27.7%. - Earnings have grown +301.8% in the previous 12 months compared to a year ago. - SVM's [price-to-earnings ratio (P/E)](http://investinganswers.com/term/price-earnings-ratio-pe-459) of 34.2 makes it undervalued compared to its peers. The technicals for are equally promising. Below are some specific technical observations for SVM: - SVM trades in zone 2 and could be looking to trend higher. - The average daily volume has been increasing for the last few months on increasing share price, which can be a good sign that momentum is building in this stock. - [Institutional ownership](http://investinganswers.com/term/institutional-ownership-975) for this equity is about 25%. This is just below my sweet-spot range of +30% to +60%, but +25% is still very good. It often means that this is a good sign the large institutions have vetted this stock and believe it is a valuable component of their investment portfolios. I tend to believe that if the big institutions hold shares of a company, the future share-price trend is more likely to move higher. **Action to Take -->** Based on the analysis above, I think SVM is a good trade to put on now with a [limit order](http://investinganswers.com/term/limit-order-1215) at $9.40 and an initial stop loss at $7.82. If the trade reaches my target price of $14.00, traders would see a profit of close to +50%. [Image](http://www.streetauthority.com/images/tow/mike-turner-signature.gif)-- Mike TurnerA published author on the subject of trading, Mike Turner's proprietary trading system has led him to a spectacular long-term success rate. Mike is founder of a money-management... Read more.Disclosure: Neither Mike Turner 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: 9.07773
Stock Price 2 days before: 9.35178
Stock Price 1 day before: 9.4721
Stock Price at release: 9.56679
Risk-Free Rate at release: 0.0014
| 12.667 |
Symbol: IRS
Security: IRSA Inversiones y Representaciones SA
Related Stocks/Topics: Personal Finance
Title: Real Estate ADR in Argentina: IRS
Type: News
Publication: Emerging Money
Publication Author: Unknown
Date: 2010-11-02 05:26:00
Article: With no real retailer ADRs to speak of, the best way to get exposure to [Argentina](http://emergingmoney.com/tag/Argentina)'s shoppers is probably via [shares of IRS](http://www.emergingmoney.com/stocks-etfs/stocks/trading-argentina-real-estate/), which runs 10 Argentine malls as well as several other real estate ventures. ** [IRS](http://emergingmoney.com/tag/tgs)**: IRSA Inversiones y Representaciones is a leading shopping center owner and operator across Argentina and should be considered a small-cap growth play. Think of it like a type of diversified commercial REIT. [Image](http://data.moneycentral.msn.com/scripts/chrtsrv.dll?Symbol=irs&C1=1&C2=&C3=1&C4=3C9=1&Width=352&Height=184&legend=0&banner=2) IRS seems valued at a serious discount with a PEG value of 0.4449 and a PE of 5.784 -- both of which are among the lowest in the industry. Net margin is a strong 46.05% and debt to capital ratio is in line at 35.53%. Operating profits are 5.89 times as large as interest payments, so the company should have little difficulty repaying its current debt obligations. Short interest is a minuscule 0.1% and institutions hold 20.83% of the float. **Bottom line:** IRS seems to consolidating into a wedge pattern. With no options available, a stock play is the only trade. Watch to see which way price breaks out from the wedge. If it breaks down, consider waiting for a test of support around the 13 handle. Also note that the stock just hit a 52-week high of $15 and has pulled back 6.4% into its current sideways channel. **Bottom line:** This small-cap stock just has too much risk with virtually no ADR volume.
Stock Price 4 days before: 14.7265
Stock Price 2 days before: 15.4289
Stock Price 1 day before: 15.4326
Stock Price at release: 15.3376
Risk-Free Rate at release: 0.0013
| 15.9836 |
Symbol: DIN
Security: Dine Brands Global, Inc.
Related Stocks/Topics: CLX|Markets|PFE|ADM|THC
Title: Opening View: DJIA Futures Sharply Higher as Voters Head to the Polls
Type: News
Publication: Schaeffer
Publication Author: Unknown
Date: 2010-11-02 07:59:00
Article: The Dow Jones Industrial Average (DJIA) made a run at its 2010 highs near 11,250 on Monday, as Wall Street cheered better-than-expected Chinese and domestic manufacturing data. Gains were held in check, however, as traders were unwilling to take a stand ahead of today's midterm elections and Wednesday's Federal Open Market Committee statement on monetary policy. Market bulls are determined, however, and with voters heading to the polls, futures on the DJIA and the S&P 500 Index (SPX) are trading roughly 64 points and 8.9 points above fair value, respectively. Traders should keep a close eye on support at 11,050 and resistance near 11,250 for the Dow, while the SPX should continue to trade between 1,180 and 1,195.In earnings news, Pfizer Inc. ([PFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PFE&selected=PFE)) ) said that its third-quarter net income fell 70% to $866 million, or 11 cents per share, from $2.9 billion, or 43 cents per share, in the year-ago period. Adjusted earnings rose to 54 cents per share, as revenue increased to $16.2 billion. Wall Street analysts expected PFE to earn 51 cents per share, on revenue of $16.8 billion. For 2010, the company now expects adjusted earnings ranging from $2.17 per share to $2.22 per share, versus the consensus estimate for $2.21 per share for 2010. Elsewhere, Archer Daniels Midland Co. ([ADM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ADM&selected=ADM)) ) earned $345 million, or 54 cents per share, in the first quarter, down from $496 million, or 77 cents a share, in the year-ago period. Analysts were looking for earnings of 74 cents per share.Finally, Tenet Healthcare Corp. ([THC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=THC&selected=THC)) ) swung to a third-quarter profit of $932 million, or $1.68 per share, from a loss of $3 million, or 1 cent per share, a year earlier. Revenue was unchanged at $2.26 billion. Excluding items, the company would have lost 1 cent per share. Analysts had estimated profit of 4 cents per share. Looking ahead, the company raised the lower end of its adjusted 2010 profit forecast to $1.05 billion to $1.1 billion. **Earnings Preview** On the earnings front, The Clorox Co. ([CLX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CLX&selected=CLX)) ), DineEquity Inc. ([DIN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DIN&selected=DIN)) ), Dollar Thrifty Automotive Group Inc. (DTG), Kellogg Company (K), Marathon Oil Corp. (MRO), MasterCard Inc. (MA), Newmont Mining Corp. (NEM), The St. Joe Company (JOE), Teva Pharmaceutical Industries Ltd. (TEVA), Career Education Corp. (CECO), Hartford Financial Services (HIG), Leap Wireless International Inc. (LEAP), OpenTable Inc. (OPEN), STEC Inc. (STEC), and Wynn Resorts Limited (WYNN) will release their quarterly reports today. Keep your browser at ** [SchaeffersResearch.com](http://www.schaeffersresearch.com/)** for more news as it breaks. **Economic Calendar** Today is devoid of economic reports, though it is election day, so get out there and vote. The big news tomorrow, aside from today's election results, will likely be the Federal Open Market Committee's decision on monetary policy and interest rates. Also on tap for Wednesday are the Institute of Supply Management's services index for October, October auto sales, September factory orders, and the weekly report on U.S. petroleum supplies. The weekly initial jobless claims report comes out on Thursday, and we round out the week with October's nonfarm payrolls and unemployment rate. **Market Statistics** Equity option activity on the Chicago Board Options Exchange (CBOE) saw 1,207,276 call contracts traded on Monday, compared to 761,749 put contracts. The resultant single-session put/call ratio arrived at 0.63, while the 21-day moving average rose to 0.61. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/101102ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/101102ov2.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/2010/101102ov3.gif)**Overseas Trading** Overseas trading is in fine shape 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 0.23%. In Asia, regional indexes finished cautiously higher ahead of U.S. midterm elections and tomorrow's Fed policy statement. Also in the region, Australia's central bank surprised investors with an interest rate increase, while a similar move by the Reserve Bank of India created pressure for real estate developers in Mumbai. Across the pond in Europe, regional markets are trading broadly higher, though Spanish stocks are being dragged lower by poor earnings at banking giant BBVA. In economic news, euro-zone manufacturing production accelerated for the first time in three months, as the Markit final manufacturing purchasing managers' index rose to 54.6 in October. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/101102ov4.gif)**Currencies and Commodities** The U.S. dollar remains weak heading into tomorrow's statement from the Federal Open Market Committee. While expectations for heavy quantitative easing have diminished, the prospects of a more moderate round of stimulus are still having a negative impact on the dollar. At last check, the U.S. Dollar Index was off 0.34% at 77.03. Commodities, which typically trade inversely to the dollar, have found some lift this morning, with crude futures up 36 cents at $83.31 per barrel, while gold futures have added $7.00 to $1,357.60 an ounce in London. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/101102ov5.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/2010/101102ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/101102ov7.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: 43.6624
Stock Price 2 days before: 44.4347
Stock Price 1 day before: 44.436
Stock Price at release: 43.5536
Risk-Free Rate at release: 0.0013
| 53.5146 |
Symbol: ODP
Security: The ODP Corporation
Related Stocks/Topics: Personal Finance|COF|JPM|C
Title: Investing in Yourself Yields the Highest Returns
Type: News
Publication: The Motley Fool
Publication Author: Unknown
Date: 2010-11-02 12:16:00
Article: Recently, I looked in on Mark Cuban's blog. People dismiss the millionaire entrepreneur because he's boisterous, and you certainly haven't experienced a Dallas Mavericks basketball game unless you've been within earshot of him -- which is generally the entire arena.However, if you read his blog, you'll get some quiet insight into many things. He recently posted an article about investing in yourself, and it got me thinking about ways everyday Americans can achieve what I call "soft money returns." Now I don't mean feathering your mattress with dollar bills and taking a nap. I mean savings that add up over time, and ways to protect yourself from catastrophe. **It's all you** The overriding lesson Cuban offers is this: "Invest in yourself. Do the things that can get you closer to your goals and dreams. It won't come from a brokerage commercial. It will come from preparing yourself, working hard and standing apart from your competition. You, Inc. is the best stock you can ever buy ... if you are willing to do the work."This should be your primary investing principle. Here are a few ways I invest my time to find soft money. **Soft money** If you've ever bought stuff from the **Staples** (Nasdaq: [SPLS](http://caps.fool.com/Ticker/SPLS.aspx) ) and **Office Depot** (NYSE: [ODP](http://caps.fool.com/Ticker/ODP.aspx) ) websites, you've probably run into one of my favorite soft money opportunities. After making your first purchase, you'll often receive valuable online purchase coupons. A $10 off a $40 online purchase coupon is what I call a 25% "soft money return."Buying online has other benefits. Not only do I get discounts, but I save the time and expense of traveling to a store. Plus it's a win for the companies I buy from, as the discounts create customer loyalty and keep shoppers out of competitors' stores. Staples and Office Depot are good at this, although Staples has done a much better job of turning its strategy into sustainable profits. And of course, **Amazon.com** (Nasdaq: [AMZN](http://caps.fool.com/Ticker/AMZN.aspx) ) has created an entire model around it, with sales growing at a 30% annual clip for the past five years. The more a retailer can emulate Amazon, the more it can save on the costs of maintaining physical store locations. **Stick it to the banks** Citigroup (NYSE: [C](http://caps.fool.com/Ticker/C.aspx) ) , **JPMorgan Chase** (NYSE: [JPM](http://caps.fool.com/Ticker/JPM.aspx) ) , and **Capital One** (NYSE: [COF](http://caps.fool.com/Ticker/COF.aspx) ) routinely offer 0% balance transfer checks that I use to my advantage. Checks like these typically hit you with a fee of 3% or more, but you can get a no-interest loan for as long as 21 months. That translates to an annual cost of less than 2%. Depending on what you do with that money, you can even turn balance transfer checks into a cheap leverage opportunity. Plenty of dividend-paying stocks yield more than 2%. Personally, I look to [preferred shares](http://www.fool.com/investing/general/2010/02/08/gentlemen-prefer-dividends.aspx) to maximize income and aim for greater stability. If things go right, I can collect dividends for more than a year and then repay my credit card when the balance transfer offer expires, pocketing the profits. It's not a no-lose strategy, but it's one that can serve you well if you're comfortable with the risk involved. **Your future** Finally, soft money returns also include protecting yourself. Make sure [you are properly insured](http://www.fool.com/how-to-invest/personal-finance/home/2010/10/19/youre-not-insured-for-these-calamities.aspx) for your home and auto. A $50,000 liability policy isn't going to suffice if you kill someone in a car accident. The cost of insurance is a pittance compared to what you could lose. I consider that an infinite soft money return. Similarly, replacement value insurance costs a bit more, but if your house burns down and you are underinsured, it's like burning all the money you put into it over the years.These are just a few of the simple yet often overlooked ways to create value for yourself. They may seem small, but they unquestionably add up over time. They all lead back to one thing -- investing in yourself, your goals, and your dreams.
Stock Price 4 days before: 4.52013
Stock Price 2 days before: 4.5524
Stock Price 1 day before: 4.45997
Stock Price at release: 4.45
Risk-Free Rate at release: 0.0013
| 4.67061 |
Symbol: LINC
Security: Lincoln Educational Services Corporation
Related Stocks/Topics: Markets|SNCR
Title: Today's Earnings Movers 11/03: RLD, SNCR, LINC, DM, OPEN Higher; SONS, ZIPR, SGK, IPHS, VRS Lower
Type: News
Publication: StreetInsider.com
Publication Author: Unknown
Date: 2010-11-03 01:04:00
Article: Below is a run-down of today's top 5 earnings movers, higher and lower, according to data at StreetInsider.com's [EPS Central](http://www.streetinsider.com/portal.php?id=5&ec_sort=todays_move) :**HIGHER:** - RealD Inc. ([RLD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RLD&selected=RLD)) ) 17% HIGHER; reports Q3 loss of ($0.12), 5 cents better than the analyst estimate of ($0.17). Revenue for the quarter was $65.3 million, which compares to the estimate of $50.9 million. - Synchronoss Technologies, Inc. (Nasdaq: SNCR) 16% HIGHER; reports Q3 EPS of $0.20, 3 cents better than the analyst estimate of $0.17. Revenue for the quarter was $ $46.8 million, which compares to the estimate of $44.68 million. - Lincoln Educational Services (Nasdaq: LINC) 13% HIGHER; reports Q3 EPS of $0.71, ex-items, 9 cents better than the analyst estimate of $0.62. Revenue for the quarter was $167.2 million, which compares to the estimate of $167.51 million. Increases FY10 revs outlook to $635 - $640 million and an EPS of $2.65 - $2.70, compared to the consensus revs of $644.52 million and an EPS of $2.47. Student population increased 5.2% to 33,157. - Dolan ([DM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DM&selected=DM)) ) 13% HIGHER; reports Q3 EPS of $0.30, 3 cents better than the analyst estimate of $0.27. Revenue for the quarter was $78.5 million, which compares to the estimate of $75.80 million. Raises FY10 revenue forecast from $309-$312 million from $307-$310 million, vs. estimate of $310.54. - OpenTable (Nasdaq: OPEN) 11% HIGHER; reports Q3 EPS of $0.23, 8 cents better than the analyst estimate of $0.15. Revenue for the quarter was $23.5 million, which compares to the estimate of $23.10 million. **LOWER:** - Sonus Networks (Nasdaq: SONS) 17% LOWER; reports Q3 loss of $0.08, 8 cents below the analyst estimate of $0.00. Revenue for the quarter was $42.7 million, which compares to the estimate of $58.16 million. - Ziprealty (Nasdaq: ZIPR) 15% LOWER; reports Q3 loss of $0.25,which may not compare to the analyst estimate of ($0.06). Revenue for the quarter was $28.3 million, which compares to the estimate of $34.90 million. - Schawk Inc. ([SGK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SGK&selected=SGK)) ) 14% LOWER; reports Q3 non-GAAP EPS of $0.34, versus the consensus of $0.38. Revenue for the quarter came in at $112.6 million, compared to the consensus of $118.43 million. - Innophos Holdings (Nasdaq: IPHS) 14% LOWER; Reports Q3 EPS of $0.75, ex-items, 8 cents lower than the analyst estimate of $0.83. Revenue for the quarter was $169 million, which compares to the estimate of $192.10 million. - Verso Paper Corp. ([VRS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VRS&selected=VRS)) ) 13% LOWER; reports Q3 loss of $0.35, versus the analyst estimate of ($0.25). Revenue for the quarter was $432.9 million, which compares to the estimate of $387 million.
Stock Price 4 days before: 12.4622
Stock Price 2 days before: 12.5281
Stock Price 1 day before: 12.4793
Stock Price at release: 12.6631
Risk-Free Rate at release: 0.0013
| 15.4978 |
Symbol: LEG
Security: Leggett & Platt, Incorporated
Related Stocks/Topics: UBSI|Markets|ITW
Title: Dividend Champions: Smackdown VI
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-11-03 01:41:00
Article: ** [David Fish](http://seekingalpha.com/author/david-fish) submits:**In previous installments of the Smackdown series, I screened the Dividend Champions list of companies that have paid higher dividends for at least 25 straight years (which can be found [here](http://dripinvesting.org/Tools/Tools.asp) ) using fundamental factors that are important to dividend-oriented investors. But buying a stock at a reasonable valuation is an important part of the equation, as emphasized in a recent [article](http://seekingalpha.com/article/231892-when-and-why-to-buy-or-sell-a-stock-part-1-of-a-series) by Chuck Carnevale. So I thought I'd start this Smackdown with a column that I recently added to the Champions spreadsheet, the percent below the 52-week high. Admittedly, this is more of a technical factor, but it's useful for highlighting stocks that are not overpriced...or at least, not as overpriced as they had been. (As always, it's also important to screen for other positive qualities before choosing any investment.) So I screened the latest update as follows:**Step 1:** Sort the companies by % from High, which can be found in column AE, all the way to the right-hand side. I decided to focus on stocks that were at least 10% below their 52-week high, which left me with a reasonable 30 companies, on ce I eliminated Questar Corp. ([STR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=STR&selected=STR)) ), which appears to be 67.7% below its high, but spun off QEP Resources ([QEP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=QEP&selected=QEP)) ) on July 1, trimming more than half of its trading price. I also eliminated Bowl America (BWL.A), which has not increased its dividend in over a year, leaving 29 companies. **Step 2:** Sort those companies by yield. I didn't want to select companies that had excessively low payouts, even after declining in price. Eliminating yields below 2.50% cut the list almost in half, leaving a total of 15 companies . **Step 3:** Sort those companies by the percentage of their most recent dividend increase, so as to eliminate companies that have been too stingy of late. Dropping those with recent increases of less than 3% shrunk the list of candidates to 10 companies. **Step 4:** Sort the remaining companies by price/earnings (P/E) ratios. Since it is earnings that drive stock price (and dividend) growth, I reasoned that this screen would narrow the selection process to companies whose earnings were not being adequately reflected in their stock prices. Eliminating those with P/Es above 20 cut the list to seven companies. **Step 5:** Compare the remaining companies (all of which had dividend streaks of at least 28 years) by the percentage increase of Next Year's EPS estimate over This Ye ar's EPS estimate. (See column AC in the spreadsheet.) I wanted to make sure that earnings growth was expected to be healthy enough to support future dividend increases. I eliminated one company (United Bankshares ([UBSI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UBSI&selected=UBSI)) )) whose earnings are expected to increase by only 1.25% next year. The list of remaining candidates follows:**And the Winner Is... **...subjective. All of these companies have attractive properties, but the ultimate winner (as always) will depend on what is most important to each investor. Illinois Tool Works has the highest expected earnings growth next year, followed by Leggett & Platt, which has appeared in several Smackdowns. But Medtronic is more than 20% below its 52-week high, whereas Colgate-Palmolive had the only double-digit percentage dividend increase. All six finalists are deserving of further study for possible purchase. **Bonus Smackdown: The Contenders** I performed the same steps on the Dividend Contenders (increases of 10-24 years) and the "winners" were:All of the surviving companies are banks. Note that the bottom four did not have earnings estimates for the final screen. I'll leave any further conclusions to the reader. **Disclosure:** Author long ITW, XOM, MDT, and CLSee also [AAII Sentiment Survey: Bullish Sentiment Falls 17.6%](http://seekingalpha.com/article/237641-aaii-sentiment-survey-bullish-sentiment-falls-17-6?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 20.3808
Stock Price 2 days before: 20.4429
Stock Price 1 day before: 20.212
Stock Price at release: 20.4327
Risk-Free Rate at release: 0.0013
| 21.5154 |
Symbol: URG
Security: Ur-Energy Inc.
Related Stocks/Topics: Markets|CCJ|PALAF
Title: These Mining Stocks Have Gained 200%-Plus and Could go Higher
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-11-03 04:56:00
Article: What's one of the hottest micro-cap stocks of the last three months? I'll give you a clue: it's a mining company that's stock tripled in value since mid-August. But instead of mining gold, silver or platinum, this company digs something else entirely different out of the earth.If you guessed lithium, it's a good guess, but you'd be wrong. [Although StreetAuthority's Nathan Slaughter sang lithium's praises [in this article](http://www.streetauthority.com/a/commodity-play-2011-and-its-not-gold-or-oil-456655) .] The company in question, **Uranium Resources (Nasdaq: URRE)** , actually mines uranium, as you might guess. Uranium Resources' surging shares have company. Shares of **Uranerz Energy ([URZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=URZ&selected=URZ)) )** and **UR Energy (NYSE: URG** ) have roughly doubled, while most other uranium plays have also tacked on strong gains in recent months.The surging stocks are the result of rising prices for uranium on the spot market. In late October, the radioactive metal tacked on a +10% gain in just one week to around $52 per pound. The question now is whether the rally can continue, or is a pullback the next move?To understand the road ahead, you need to look back. When I wrote about the sector back in June [I noted](http://www.streetauthority.com/a/profiting-nuclear-power-renaissance-456154) that uranium had slumped to a multi-year low of $40 per pound. The key culprit for weak prices: Kazakhstan, which single-handedly altered the supply/demand equation for uranium by boosting production from 19 million pounds in 2008 to estimates of more than 40 million pounds this year. Much of that Kazakh production went straight to China, which has been stockpiling uranium in anticipation of a massive build out of its nuclear power sector, and the rest went to the open market, pushing supply ahead of demand.China also explains why prices are rising now. The China-Kazakh long-term supply deal is winding down, and China has allegedly returned to the open market to buy even more uranium. Yet two factors will conspire for uranium prices to hit a ceiling in the near-term. First, China is building a [backlog](http://investinganswers.com/term/backlog-866) for future needs and is unlikely to pay much higher prices if it can simply wait for the supply/demand equation to change. Industry analysts think that's about to happen. Many high-cost mines were shuttered when uranium fell to $40 a pound, but would be brought back on line as uranium moves toward $60 a pound.At this point, with few-near-term catalysts, uranium prices could be hit by profit-taking, likely creating a better entry point for near-term gains. You can track uranium spot prices at this [web site](http://www.uranium.info/) . **A solid long-term play** But uranium looks like it has much more room to run over the long haul as demand will keep rising. In a recent report, Morgan Stanley's analysts noted that 147 new nuclear power plants will be built over the next decade. That figure rises to 330 if you account for all of the proposed but yet-to-be-approved plants. China leads the way with 159 proposed plants, while India (60), Russia (44) and the United States (31) account for the bulk of the remaining planned sites.As the rising role of nuclear power starts to become more evident, industry players will have increasing confidence in the strong long-term demand for uranium. And that could push uranium toward the $65 to $70 mark in a few years -- that's a +25% to +35% spike from current levels. Moreover, share prices of key players could rise at an even faster clip, thanks to high operating [leverage](http://investinganswers.com/term/leverage-61) at uranium mines. **Safe vs. speculative** Investors can look to protect their downside while seeking reasonable upside by investing in the industry's blue-chip player **Cameco ([CCJ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CCJ&selected=CCJ)) )** , which I profiled back in July. [ [Read the article here](http://www.streetauthority.com/news/shares-us-nuclear-energy-company-get-bounce-china-456346) ]Shares have already risen +30% since then, but they could be hit by profit-taking if uranium prices cool. But longer-term, you're likely looking at +50% upside from here if uranium surges toward the $70 mark.Another relatively safe play for investors is **Uranium Participation Corp. (TSX: U)** , which holds uranium in inventory and thus its shares closely track the underlying [commodity](http://investinganswers.com/term/commodity-1035) . (Note: This is a Canadian company that trades on the Toronto Stock Exchange. Buying and selling stocks in this exchange is relatively easy for most individual investors, but call your broker for more information if you're interested.) **Action to Take -->** Uranium ran to $136 a pound in 2007. That was based on pure fevered speculation, and most industry players quickly realized that such prices were unsupported by any underlying fundamentals. Still, a rebound to just half that peak would be great news for the stocks in this sector. And with the nuclear renaissance taking shape in coming years, we may get there sooner than many think.As noted earlier, Uranium Resources, Uranerz Energy and UR Energy are all highly leveraged to uranium prices, moving three to five times faster than the underlying commodity's price. But I'm averse to chasing speculative names after a strong run, and would suggest closely watching the names for a hoped-for pullback. Other stocks that have potentially significant upside include **Paladin Energy (PALAF.PK)** , which trades on the [pink sheets](http://investinganswers.com/term/pink-sheets-1260) , and **Bannerman Resources (TSX: BAN)** .[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...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: 1.3636
Stock Price 2 days before: 1.36017
Stock Price 1 day before: 1.33573
Stock Price at release: 1.59724
Risk-Free Rate at release: 0.0013
| 2.28092 |
Symbol: PBT
Security: Permian Basin Royalty Trust
Related Stocks/Topics: Markets|BP|EPD|HAL
Title: Politics-Proof Investments After the Election
Type: News
Publication: Louis Navellier
Publication Author: Unknown
Date: 2010-11-03 06:38:00
Article: As investors, we vote for stocks every day. We put our hard-earned money behind companies that we think are moving in the right direction, that are growing their businesses and that will reward us with a healthy return.After Americans head to the polls to vote, I can't help but think about the link between politics and stocks. Government bailouts, increased regulation and Fed intervention have politicized many companies, so, on the other side of Election Day, we'll take a look at some of the stocks that have helped draw political lines in the sand to see if they are worth owning right now. Drilling StocksThe massive oil spill this summer brought huge political attention to the Gulf Coast, **BP PLC** (NYSE: [BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP) ), **Halliburton Co.** (NYSE: [HAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HAL&selected=HAL) ) and offshore drilling. Outrage over the lack of a contingency plan for catastrophic failures, the impact on wildlife and the strain on businesses put Washington into action, and a six-month moratorium on offshore drilling was put in place.With the announcement that Halliburton may have used materials they knew were inferior and could have caused the failure that led to the spill, more regulation and increased scrutiny on offshore drilling will be on the way. In light of this, are BP and HAL good buys right now? Are there any good buys in this sector?Well, the answer to the first question is a definite NO. BP and HAL are both sell-rated companies in my [Portfolio Grader](http://navelliergrowth.investorplace.com/portfolio-grader) stock rating tool and have been for nearly all of 2010. The fundamentals aren't there, and there isn't enough support behind the stocks to make them good buys right now.But, when I look at other companies involved in offshore drilling, there are some stocks that make the grade. **Boardwalk Pipeline Partners L.P.** (NYSE: [BWP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BWP&selected=BWP) ) **Permian Basin Royalty Trust** (NYSE: [PBT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PBT&selected=PBT) ) **Buckeye GP Holdings L.P.** (NYSE: [BGH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BGH&selected=BGH) ) and **Enterprise Products Partners L.P.** (NYSE: [EPD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPD&selected=EPD) ) are all in the same industry as BP, and all are impacted by offshore drilling. Each of these companies receives an overall "A" in Portfolio Grader, due in large part to buying pressure. Fundamentals and the outlook for offshore drilling is still questionable, so be careful with these types of companies in the near term.Banking StocksThese days investing doesn't get any closer to politics than when it comes to banks. After all, it was government bailout money that made taxpayers owners in high-profile banks in the first place.It's no secret that I still want you to avoid most banking stocks. It was just two weeks ago that I discussed two banks, **Citigroup** (NYSE: [C](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=C&selected=C) ) and **JPMorgan** (NYSE: [JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM) ), and decided that buying now was not the best idea for smart investors. I still think that you should avoid the whole sector here in the U.S., but there are some international banks that are making the grade right now. **Banco de Chile** (NYSE: [BCH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BCH&selected=BCH) ) and **BanColombia S.A. ADS** (NYSE: [CIB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CIB&selected=CIB) ) are both Latin American commercial banks that are experiencing strong growth from their emerging economies.If you want to see growth in financials, you have to look outside the U.S.
Stock Price 4 days before: 20.9965
Stock Price 2 days before: 21.0901
Stock Price 1 day before: 21.2583
Stock Price at release: 21.8555
Risk-Free Rate at release: 0.0013
| 22.4054 |
Symbol: MNKD
Security: MannKind Corporation
Related Stocks/Topics: Markets
Title: Options Trade of the Day: Fraud Charge May be Behind Put Spread on MannKind Corp.
Type: News
Publication: Schaeffer
Publication Author: Unknown
Date: 2010-11-04 03:45:00
Article: Things are getting hairy for the shares of MannKind Corp. ([MNKD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MNKD&selected=MNKD)) ) today, with the stock plunging as much as 18% at one point. Sparking the selloff was a report on TheStreet.com that former senior director John Arditi accused the company of fraud in failing to report serious problems with Afrezza, its diabetes treatment, to the Food and Drug Administration. MannKind has denied the claims, but that has done little to staunch the stock's losses, or to stem speculation in the options pits.Looking to take advantage of a potentially steep decline in MNKD shares, one trader appears to have opened up a bearish spread trade on the security. Specifically, a block of 2,400 January 2011 5 puts traded for the ask price of $1.27, or $127 per contract, at about 9:30 a.m. Eastern time on the New York Stock Exchange (NYSE), suggesting that these contracts were bought to open. At the same time, a block of 2,400 January 2011 4 puts traded for the bid price of $0.70, or $70 per contract, suggesting that the contracts were sold to open. Both blocks were also marked "spread." Given this data, it appears that the trader opened a vertical put spread, or **debit spread** , on MannKind Inc. [MNKD option volume details](http://www.schaeffersresearch.com/images/commentary/2010/101104MNKD1.gif)**The Anatomy of a MannKind Inc. Vertical Put Spread** Breaking down this debit spread position, the trader purchased 2,400 January 2011 5 puts for the ask price of $1.27, resulting in a debit of $304,800 -- (1.27 * 100) * 2,400 = $304,800. In the absence of the premium received by selling the January 2011 4 put, the trader would need MNKD to drop roughly 40% from Wednesday's close at $6.19, to $2.46 per share, in order for the position to reach breakeven at expiration. Furthermore, the maximum loss on this leg of the position is limited to the initial investment of $304,800.The second leg of the debit spread helps to offset the cost of the overall position. In this case, the trader sold 2,400 January 2011 4 puts for the bid price of $0.70, netting a total credit of $168,000 -- (0.70 * 100) * 2,400 = $168,000. Combining this leg of the trade with the purchased January 2011 5 put lowers the total cost of the entire position to $136,800 -- $304,800 - $168,000 = $136,800. [MNKD vertical put spread](http://www.schaeffersresearch.com/images/commentary/2010/101104MNKD2.gif) [MNKD profit loss chart](http://www.schaeffersresearch.com/images/commentary/2010/101104MNKD3.gif)**Implied Volatility** After the vertical put spread has been established, rising implied volatility is pretty much neutral to the overall position, as it lifts the value of both the sold option and the purchased option. At the time of the trade, implieds for the January 2011 5 put arrived at 167.34%, while the implied volatility for the January 2011 4 put came in at 174.73%. For a point of reference, MNKD's three-month historical volatility was 44.05% as of the close of trading on Wednesday. All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
Stock Price 4 days before: 6.47606
Stock Price 2 days before: 6.30746
Stock Price 1 day before: 6.25675
Stock Price at release: 6.17244
Risk-Free Rate at release: 0.0013
| 6.40319 |
Symbol: BZH
Security: Beazer Homes USA, Inc.
Related Stocks/Topics: AIG|Markets|SBUX
Title: Opening View: DJIA Futures Slip Ahead of October Jobs Data
Type: News
Publication: Schaeffer
Publication Author: Unknown
Date: 2010-11-05 07:49:00
Article: The Dow Jones Industrial Average (DJIA) surged 220 points Thursday in the wake of the Fed's $600 billion quantitative easing package, to close at its highest point since the collapse of Lehman Brothers. However, attention returns to the U.S. employment outlook today. Economists are expecting an increase of 70,000 nonfarm payrolls in October, which would mark the first gain since May. The unemployment rate is seen coming in at 9.7%. However, there is plenty of trepidation ahead of the report, as futures on the DJIA and the S&P 500 Index (SPX) are trading roughly 25 points and 2 points below fair value, respectively. Look for the DJIA to find support in the 11,350-11,400 region, with resistance at 11,500. The SPX, meanwhile, should remain between the 1,215 and 1,225 levels.In earnings news, American International Group Inc. ([AIG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AIG&selected=AIG)) ) posted a third-quarter net loss of $2.4 billion, or $17.62 per share. The quarter included several large charges, totaling $4.5 billion, related to a major restructuring. On an adjusted basis, AIG lost $200 million, or $1.47 per share. Activision Blizzard Inc. ([ATVI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ATVI&selected=ATVI)) ) reported non-GAAP third-quarter earnings of 12 cents per share on revenue of $857 million. Analysts had been looking for revenue of $748 million with earnings of 9 cents per share for the quarter.Coffee king Starbucks Corp. ([SBUX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SBUX&selected=SBUX)) ) reported that its fourth-quarter net operating income doubled to $399.3 million, or 37 cents per share. Analysts had forecast earnings of 32 cents per share. Sales rose 17% to $2.8 billion. Comparable store sales rose 8%.Finally, Dow Jones component Kraft Foods Inc. ([KFT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KFT&selected=KFT)) ) reported that its third-quarter net income fell 8% from a year ago to $754 million, or 43 cents per share. Excluding items, Kraft earned 47 cents per share. Analysts had expected earnings of 45 cents per share. Sales rose 26% to $11.9 billion. **Earnings Preview** On the earnings front, Beazer Homes USA Inc. ([BZH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BZH&selected=BZH)) ), Coventry Health Care Inc. (CVH), DISH Network Corp. (DISH) and Plains Exploration & Production Co. (PXP) will release their quarterly reports today. Keep your browser at ** [SchaeffersResearch.com](http://www.schaeffersresearch.com/)** for more news as it breaks. **Economic Calendar** We round out the week today with October's nonfarm payrolls and unemployment rate. Looking ahead to next week, Monday is devoid of economic reports, while September's wholesale inventories report arrives on Tuesday. **Market Statistics** Equity option activity on the Chicago Board Options Exchange (CBOE) saw 1,445,460 call contracts traded on Thursday, compared to 800,243 put contracts. The resultant single-session put/call ratio arrived at 0.55, while the 21-day moving average held at 0.61. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/101105ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/101105ov2.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/2010/101105ov3.gif)**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 returns on the collective stands at a gain of 0.35%. Asian markets finished broadly higher, as investors were cheered by yesterday's impressive rally on Wall Street. In Japan, sentiment was bolstered after Toyota Motor Corp. (TM) said that it swung to a net profit of 289 billion yen in the first half of its fiscal year, and it raised its full-year net profit outlook. Meanwhile, European markets are mixed this morning, as traders look to take profits ahead of today's U.S. jobs report. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/101105ov4.gif)**Currencies and Commodities** After tagging a fresh 2010 low yesterday in the wake of the Fed's $600 billion quantitative easing plan, the U.S. dollar has bounced back a bit this morning. In fact, the U.S. Dollar Index was last seen higher by 0.62% at 76.35. Unfortunately for commodities traders, the inverse is also true. After hitting their highest point since April, crude futures have retreated a bit this morning, slipping 13 cents to $86.36 per barrel in electronic trading. What's more, gold futures have slipped $1.50 to $1,381.60 in London, a day after rallying 3%to a fresh record high. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/101105ov5.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/2010/101105ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/101105ov7.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: 4.1058
Stock Price 2 days before: 4.17753
Stock Price 1 day before: 4.21726
Stock Price at release: 4.27442
Risk-Free Rate at release: 0.0013
| 4.5102 |
Symbol: JKS
Security: JinkoSolar Holding Co., Ltd.
Related Stocks/Topics: SOL|Markets|NFLX|AMSC
Title: A Great Undervalued Company: Barrick Gold
Type: News
Publication: Cabot Wealth Network
Publication Author: Unknown
Date: 2010-11-08 02:22:00
Article: Over the past two months, most of the stocks we've recommended in Cabot Wealth Advisory have gone up.On September 7, in an issue titled "Up, Up and Away, I recommended **Netflix ([NFLX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NFLX&selected=NFLX)) )** . It's up 19%" since then. On September 9, Paul Goodwin, editor of Cabot China & Emerging Markets Report, recommended **China New Borun ([BORN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BORN&selected=BORN)) )** . It's up 53% since then.On September 13, I recommended **JinkoSolar ([JKS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JKS&selected=JKS)) )** . It's up 36% since then.And on September 16, Brendan Coffey, editor of Cabot Green Investor, recommended **ReneSola ([SOL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SOL&selected=SOL)) )** , which is up 26% since then and **American Superconductor ([AMSC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMSC&selected=AMSC)) )** , which is up 28%.In hindsight, those were great recommendations. But in all honesty, the real hero behind those gains is the bull market.And as the old market truism says, "Don't Confuse Brains with a Bull Market." We try not to, and by the same token, we try never to forget that the market can go both ways. When it's rising, it lifts all boats. And when it's falling, even the best companies' stocks have trouble keeping their heads above water.Right now, the tide is still coming in. Most boats are being lifted, and I sincerely hope you're making the most of it.Cabot subscribers certainly are. Just last week, **Whole Foods Market (WFMI)** , jumped 15% (!!) after reporting better-than-expected third quarter results. **Las Vegas Sands (LVS)** just advanced 10 days in a row, for a gain of 37%. And **Google (GOOG)** is up 85 points in the past four weeks! All these stocks are in Cabot advisories now.But knowing that the pendulum on Wall Street swings left and right, I'm now expecting that some of the people who were responsible for creating those recent highs will have to sit through a period of … let's call it discomfort… before their optimism is rewarded.Now, I'm not trying to call a top here. I'm well aware that trends tend to go farther than expected, and that stocks that are overbought can remain overbought. Long-term, I'm as bullish as anyone. But the market is a two-way street … and for new investments today, an argument can be made for taking the low-risk route, particularly is aggressive investing if just not your style. At Cabot, that means selecting something from Cabot Benjamin Graham Value Letter, which uses the classic value investing methodology that has worked so well for Benjamin Graham, Warren Buffet and thousands of other patient investors who have mastered the science of buying low and selling high.The latest issue, which came out last week, had a special feature on Undervalued Companies with Low Price-to-Book Value Ratios.Editor Roy Ward rotates through six specific Special Features a year, so he returns to this one twice a year, and the good news is that over the past 62 months (the period we've published the advisory) this is the best-performing selection criteria of them all, even outperforming the Classic and Wise Owl models.Roy wrote, "To select these stocks, we applied four additional criteria to the stocks in our database:• excellent financial strength• increasing dividend payments• low price-to-earnings ratios• strong earnings prospectsThe six stocks we chose present a wide range of industries: gold, securities trading, semiconductor components, energy, personal computer distribution and laboratory equipment and services." And I'll give you one of them here. It's **Barrick Gold (ABX)** :Roy writes, "Barrick Gold, based in Toronto, is the world's largest gold producer with 26 mines in operation across five continents. The company's new Cortez mine in Nevada is now producing 15% of the company's total gold production at a very low $300 per ounce. Barrick has additional low-cost mines ready to start production during the next five years, which will lead to higher profit margins. Earnings per share surged 87% during the past 12 months and will likely increase another 17% during the next 12 months. At 14.3 times forward 12-month EPS, ABX shares are among the least expensive in the industry (Goldcorp, Agnico-Eagle and Silver Wheaton sell at 33 times forward EPS or higher). ABX is medium risk."Should you buy it now? Maybe, but the right way to invest in value stocks is to diversify, so that an unexpected dip by any one stock doesn't hurt too much.And Roy says, "We strongly recommend buying as many of the six stocks as is practical to spread your risk. We encourage you to invest in the new recommendations at current price levels and hold until our next Low Price-to-Book Value Special Feature appears in the May 2011 issue of the Cabot Benjamin Graham Value Letter."Learn more about Barrick Gold and this proven value investing system in [Cabot Benjamin Graham Value Letter](http://www.cabot.net/info/bgv/bgvkr01.aspx?source=wv01) . Yours in pursuit of wisdom and wealth,Timothy LuttsPublisherCabot Wealth Advisory
Stock Price 4 days before: 39.7236
Stock Price 2 days before: 36.2178
Stock Price 1 day before: 36.3021
Stock Price at release: 36.3044
Risk-Free Rate at release: 0.0012
| 21.5957 |
Symbol: AMSC
Security: American Superconductor Corporation
Related Stocks/Topics: SOL|Markets|NFLX|JKS
Title: A Great Undervalued Company: Barrick Gold
Type: News
Publication: Cabot Wealth Network
Publication Author: Unknown
Date: 2010-11-08 02:22:00
Article: Over the past two months, most of the stocks we've recommended in Cabot Wealth Advisory have gone up.On September 7, in an issue titled "Up, Up and Away, I recommended **Netflix ([NFLX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NFLX&selected=NFLX)) )** . It's up 19%" since then. On September 9, Paul Goodwin, editor of Cabot China & Emerging Markets Report, recommended **China New Borun ([BORN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BORN&selected=BORN)) )** . It's up 53% since then.On September 13, I recommended **JinkoSolar ([JKS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JKS&selected=JKS)) )** . It's up 36% since then.And on September 16, Brendan Coffey, editor of Cabot Green Investor, recommended **ReneSola ([SOL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SOL&selected=SOL)) )** , which is up 26% since then and **American Superconductor ([AMSC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMSC&selected=AMSC)) )** , which is up 28%.In hindsight, those were great recommendations. But in all honesty, the real hero behind those gains is the bull market.And as the old market truism says, "Don't Confuse Brains with a Bull Market." We try not to, and by the same token, we try never to forget that the market can go both ways. When it's rising, it lifts all boats. And when it's falling, even the best companies' stocks have trouble keeping their heads above water.Right now, the tide is still coming in. Most boats are being lifted, and I sincerely hope you're making the most of it.Cabot subscribers certainly are. Just last week, **Whole Foods Market (WFMI)** , jumped 15% (!!) after reporting better-than-expected third quarter results. **Las Vegas Sands (LVS)** just advanced 10 days in a row, for a gain of 37%. And **Google (GOOG)** is up 85 points in the past four weeks! All these stocks are in Cabot advisories now.But knowing that the pendulum on Wall Street swings left and right, I'm now expecting that some of the people who were responsible for creating those recent highs will have to sit through a period of … let's call it discomfort… before their optimism is rewarded.Now, I'm not trying to call a top here. I'm well aware that trends tend to go farther than expected, and that stocks that are overbought can remain overbought. Long-term, I'm as bullish as anyone. But the market is a two-way street … and for new investments today, an argument can be made for taking the low-risk route, particularly is aggressive investing if just not your style. At Cabot, that means selecting something from Cabot Benjamin Graham Value Letter, which uses the classic value investing methodology that has worked so well for Benjamin Graham, Warren Buffet and thousands of other patient investors who have mastered the science of buying low and selling high.The latest issue, which came out last week, had a special feature on Undervalued Companies with Low Price-to-Book Value Ratios.Editor Roy Ward rotates through six specific Special Features a year, so he returns to this one twice a year, and the good news is that over the past 62 months (the period we've published the advisory) this is the best-performing selection criteria of them all, even outperforming the Classic and Wise Owl models.Roy wrote, "To select these stocks, we applied four additional criteria to the stocks in our database:• excellent financial strength• increasing dividend payments• low price-to-earnings ratios• strong earnings prospectsThe six stocks we chose present a wide range of industries: gold, securities trading, semiconductor components, energy, personal computer distribution and laboratory equipment and services." And I'll give you one of them here. It's **Barrick Gold (ABX)** :Roy writes, "Barrick Gold, based in Toronto, is the world's largest gold producer with 26 mines in operation across five continents. The company's new Cortez mine in Nevada is now producing 15% of the company's total gold production at a very low $300 per ounce. Barrick has additional low-cost mines ready to start production during the next five years, which will lead to higher profit margins. Earnings per share surged 87% during the past 12 months and will likely increase another 17% during the next 12 months. At 14.3 times forward 12-month EPS, ABX shares are among the least expensive in the industry (Goldcorp, Agnico-Eagle and Silver Wheaton sell at 33 times forward EPS or higher). ABX is medium risk."Should you buy it now? Maybe, but the right way to invest in value stocks is to diversify, so that an unexpected dip by any one stock doesn't hurt too much.And Roy says, "We strongly recommend buying as many of the six stocks as is practical to spread your risk. We encourage you to invest in the new recommendations at current price levels and hold until our next Low Price-to-Book Value Special Feature appears in the May 2011 issue of the Cabot Benjamin Graham Value Letter."Learn more about Barrick Gold and this proven value investing system in [Cabot Benjamin Graham Value Letter](http://www.cabot.net/info/bgv/bgvkr01.aspx?source=wv01) . Yours in pursuit of wisdom and wealth,Timothy LuttsPublisherCabot Wealth Advisory
Stock Price 4 days before: 36.4807
Stock Price 2 days before: 36.9588
Stock Price 1 day before: 36.9593
Stock Price at release: 36.9589
Risk-Free Rate at release: 0.0012
| 32.9842 |
Symbol: NAVI
Security: Navient Corporation
Related Stocks/Topics: Markets
Title: 7 Internet Penny Stocks to Buy Now
Type: News
Publication: Louis Navellier
Publication Author: Unknown
Date: 2010-11-08 08:36:00
Article: Tech stocks have been on a tear recently, with the Nasdaq composite tacking on about 14% since Sept. 1. While big-name blue chips have gotten in on the party, some of the most dramatic performers in the tech sector have been small-cap penny stocks that have seen massive surges in sales, profits and share price.As the market continues to push higher, many of these high-tech penny stocks still have a lot of room to run. To help you get your share of the profits, here are seven soaring Internet penny stock investments to consider: Geeknet Inc. ([GKNT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GKNT&selected=GKNT)) )**Geeknet Inc.** (NASDAQ: [GKNT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GKNT&selected=GKNT) ) is an online network consisting of technology professionals and consumers of tech products. The company owns several websites dedicated to [technology news](https://www.nasdaq.com/news-and-insights/technology) and discussion. Geeknet also sells "geek-themed" products to consumers on its ThinkGeek website. Since going public in August, the stock has jumped 52.2%, compared to gains of 12.1% and 6.7% for the Nasdaq and Dow. On top of stock gains, GKNT reported a quarterly revenue growth of nearly 30% in its last income statement. Geeknet is a penny stock to buy, priced at $2.08.NaviSite Inc. ([NAVI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NAVI&selected=NAVI)) )**NaviSite Inc.** (NASDAQ: [NAVI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NAVI&selected=NAVI) ) is an information-technology company that provides enterprise-hosting solutions, customized managed application services and remote operations services. Year-to-date, this tech stock has climbed 75%, compared with smaller gains by the broader markets. NaviSite is certainly a small-cap stock, with a market cap of just $133 million. However, a stock price of just $3.51 makes it an affordable stock worth buying.Zix Corp. ([ZIXI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ZIXI&selected=ZIXI)) )**Zix Corp.** (NASDAQ: [ZIXI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ZIXI&selected=ZIXI) ) is an e-mail encryption service company that works with the health-care, financial services, insurance and government sectors. Since January, ZIXI stock is up $2.01, or 117.5%. Additionally, ZIXI has outperformed earnings estimates for three consecutive quarters. Currently trading at $3.73, ZIXI is not far removed from its 52-week high of $4.18.EasyLink Services International ([ESIC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ESIC&selected=ESIC)) ) Tech company **EasyLink Services International** (NASDAQ: [ESIC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ESIC&selected=ESIC) ) provides services that facilitate the electronic exchange of documents and information between enterprises across the globe. Over the past 12 months, ESIC stock has soared an incredible 161.1%, compared to much smaller gains by the broader markets. Last quarter, ESIC posted earnings of 39 cents, after analysts predicted EPS of just 7 cents. ESIC trades just eight cents below its 52-week high, at $3.90.LookSmart Ltd. ([LOOK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LOOK&selected=LOOK)) )**LookSmart Ltd.** (NASDAQ: [LOOK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LOOK&selected=LOOK) ) provides relevant solutions for search advertising customers. The company acquires search queries from various search engines and matches them with keywords for its advertising clients. Since January, this penny stock is up 123.5%. LOOK has also outperformed earnings estimates for three straight quarters, adding to its impressive resume. This penny stock trades at $2.28, with a 52-week range of 88 cents to $2.35. GlobalSCAPE Inc. (GSB)**GlobalSCAPE Inc.** (AMEX: [GSB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GSB&selected=GSB) ) facilitates the delivery of critical information for its customers. This data often includes financial data and medical records, which are securely exchanged over the Internet. Year-to-date, GSB stock has jumped 62.3%, compared to smaller gains by the broader markets. Even more impressive, the penny stock is up 77.5% since May 1. GSB is an inexpensive stock to buy at $2.45.Unify Corp. (UNFY) Based in Sacramento, Calif., **Unify Corp.** (NASDAQ: [UNFY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UNFY&selected=UNFY) ) is a global provider of application development, data management and archiving software solutions. Over the past 12 months, this penny stock has gained 20.4%. UNFY stock slipped in July, but since then has gained 10%. Currently trading at $3.19, Unify Corp. rounds out the list of top Internet penny stocks to buy.As of this writing, Louis Navellier did not own a position in any of the stocks named here.[Sponsored Links](https://popup.taboola.com/en/?template=colorbox&utm_source=nasdaq-nasdaq&utm_medium=referral&utm_content=thumbnails-a-mid:Mid%20Article%20Thumbnails:) [Sponsored Links](https://popup.taboola.com/en/?template=colorbox&utm_source=nasdaq-nasdaq&utm_medium=referral&utm_content=thumbnails-a-mid:Mid%20Article%20Thumbnails:)[Promoted Links](https://popup.taboola.com/en/?template=colorbox&utm_source=nasdaq-nasdaq&utm_medium=referral&utm_content=thumbnails-a-mid:Mid%20Article%20Thumbnails:) [Promoted Links](https://popup.taboola.com/en/?template=colorbox&utm_source=nasdaq-nasdaq&utm_medium=referral&utm_content=thumbnails-a-mid:Mid%20Article%20Thumbnails:)[](http://www.mnbasd77.com/aff_c?offer_id=2904&aff_id=2679&source=Bul&aff_sub=41581344&aff_sub2=nasdaq-nasdaq-1291813&aff_sub3=3974017124_Name&utm_source=taboola&utm_medium=referral&aff_sub5=GiCAtbcFbFkmutZ9gcxc890p9GXGXJzAI0uV-M2Lof6diSDq7l0o7vi8lYTmh7unATCl7E4&aff_sub4=gp_h&tblci=GiCAtbcFbFkmutZ9gcxc890p9GXGXJzAI0uV-M2Lof6diSDq7l0o7vi8lYTmh7unATCl7E4#tblciGiCAtbcFbFkmutZ9gcxc890p9GXGXJzAI0uV-M2Lof6diSDq7l0o7vi8lYTmh7unATCl7E4) [How Much Do Roofing Services Cost In 2024? 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Stock Price 4 days before: 3.62864
Stock Price 2 days before: 3.61491
Stock Price 1 day before: 3.60691
Stock Price at release: 3.60446
Risk-Free Rate at release: 0.0012
| 3.60158 |
Symbol: MPX
Security: Marine Products Corporation
Related Stocks/Topics: Markets|EPS|EGIO|AKAM
Title: Look out Below: These Stocks are Headed Down
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-11-08 10:29:00
Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photoIn search of undervalued companies, investors seek out stocks that tend to have anearnings growth rate that is higher than the price-to-earnings ([P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459)) ) ratio. These stocks are known as low [PEG](http://investinganswers.com/term/priceearnings-growth-ratio-peg-460) stocks, or stocks with a PEG ratio below 1. (For example, a P/E of 10, and an [earnings](http://investinganswers.com/term/earnings-1514) growth rate of 20% yields a PEG ratio of 0.5, or 10 divided by 20). Well, the converse is also true. Companies with a high PEG ratio can be [overvalued](http://investinganswers.com/term/overvalued-837) . If you hold a stock with high PEG ratio, you may want to contemplate selling the shares. Better yet, high PEG stocks sometimes also make compelling [short selling](http://investinganswers.com/term/short-selling-1174) candidates.So I went looking for companies that have a P/E ratio that is at least twice as high as the earnings growth rate. In other words, they have a PEG ratio above 2.0. On the table below, I've compiled a list of high P/E stocks that show either small or negative profit growth forecasts for 2011. For most on this list, profit growth is expected to turn negative next year, but the basic concept of a too-high PEG ratio still applies.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) -- David Sterman** Akamai Technologies(Nasdaq: AKAM)** appears to be a poster child for high PEG stocks. The provider of content delivery services is a good -- not great -- growth story. Over the years, an increasing number of companies have relied on Akamai to store content in local servers so websites can be pulled up quickly anywhere in the world. After years of erratic growth, the company is on track to boost sales and profits about +15% in 2011. Yet this has become a largely [mature industry](http://investinganswers.com/term/mature-industry-1478) , price pressures are starting to bite, and the major telecom players are trying to steal [market share](http://investinganswers.com/term/market-share-778) , which is why analysts don't expect profit growth to exceed +10% to +15% in 2012 and beyond.So why do shares trade for 33 times projected 2011 profits? Or said another way, does this stock deserve a PEG ratio above 2.0? Probably not. Instead, this is a classic example of a stock that becomes so hot that it becomes disconnected from the fundamentals. Investors have been bidding up shares in the expectation that a suitor for the company might emerge. Yet the higher shares rise, the harder it would become for a suitor to acquire the company without taking a big hit to its [earnings per share ( ](http://investinganswers.com/term/earnings-share-eps-1003) [EPS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPS&selected=EPS) ) , as any deal would likely be quite dilutive. So if a deal fails to materialize, or investors start to see Akamai as a slowing-growth kind of company, then the high P/E ratio would set shares up for a big fall. It's worth adding that **Limelight Networks (Nasdaq: LLNW)** and **InterNAP (Nasdaq: INAP)** , a pair of Akamai rivals, also make this list. Each stock carries a super-high P/E ratio, which would be understandable if each company was just getting going. But this is a mature industry, and these companies are likely to only grow in single digits in 2012 and beyond. So it's hard to see howearnings will grow fast enough to ever justify such a lofty P/E ratio. **Theearnings look back** At first glance, it makes sense that boat builder **Marine Products ([MPX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MPX&selected=MPX)) )** sports a very high P/E ratio. Boat sales are depressed and profits will be more robust when the [economy](http://investinganswers.com/term/economy-1517) improves. Back in 2005, the company earned a record $0.65 a share, and the stock trades for about 10 times that figure. But that was a peak year. In the past 10 years, annual [EPS](http://investinganswers.com/term/earnings-share-eps-1003) has averaged $0.30. And shares don't deserve to trade at 20 times average annual earnings, since this is a highly cyclical business. This stock has nearly doubled since the summer of 2009, but it looks as if investors are over-estimating the prospects of robust profits in the future. **A high-growth P/E for a low-growth company** Perhaps no company on this list better typifies the perils of a high PEG ratio than retailer **Sears Holdings (Nasdaq: SHLD)** . Profits are going nowhere, but you can't just blame the weak economy. Management has spent the past five years squeezing cash out of this business, leaving Sears and Kmart stores badly in need of sprucing up. As analysts at research firm ISI noted in a recent report, Sears Holdings generated no [free cash flow](http://investinganswers.com/term/free-cash-flow-1000) in the first half of 2010, but still bought back $273 million in stock. Their conclusion: "We continue to believe that underinvestment will not support the asset base and find much better opportunities (elsewhere) in retail." They see shares falling from a recent $73 down to $52 as they predict that current consensus profit forecasts are too high.Analysts at UBS see shares falling down to $56 and rate the stock a "sell." They have a point -- shares trade for more than 30 times UBS's 2011 profit forecast. **Action to Take -->** The only time you can justify a high P/E ratio is when a company has not begun to reap the benefits of projected strong growth. But the companies on this list are largely mature, and unlikely to see a big spurt in profits down the road. Sears Holdings in particular carries the value of a hot tech stock but is really a lumbering giant whose best days have passed. If you hold any of these stocks, consider selling. And for those investors looking for a short candidate, the list above is a good place to start. [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. -- Any analyst can tell you they like a stock. But how many are willing to put their money where their mouth is? StreetAuthority Market Advisor is so confident in Nathan Slaughter's picks that we gave him $100,000 in cash to put into his recommendations. Learn how you can join in and profit along with him.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: 6.29869
Stock Price 2 days before: 6.86187
Stock Price 1 day before: 6.8763
Stock Price at release: 6.84679
Risk-Free Rate at release: 0.0012
| 6.43686 |
Symbol: XRX
Security: Xerox Holdings Corporation
Related Stocks/Topics: Markets
Title: Bull buys into makeover at Xerox
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-11-09 11:57:00
Article: Xerox is pushing to a two-year high, and one trader is apparently confident that it will keep running. [XRX](http://www.optionmonster.com/cms/commentary/images/xrx110910.png) optionMONSTER's Heat Seeker tracking program detected the purchase of 10,000 April 12 calls for $1 and the sale of an equal number of April 12 puts for $1.10. The trade resulted in a small credit of $0.10 and will deliver major leverage on almost any move higher or lower. Known as a synthetic long, the strategy allows the investor to simulate owning 1 million shares without any initial cash outlay.XRX rose 1.53 percent to $11.91 in morning trading and is challenging levels last seen in September 2008. Its last earnings report on Oct. 21 was better than expected and management issued strong guidance for profitability. Revenue, however, was slightly below forecasts.The company, traditionally known for its copiers, is undergoing a major transformation after it bought Affiliated Computer Services to add outsourced business services to its product offering.The bullish trade on XRX pushed total options volume in the stock to twice the average level so far in today's session.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 11.8864
Stock Price 2 days before: 11.7892
Stock Price 1 day before: 11.6999
Stock Price at release: 11.9109
Risk-Free Rate at release: 0.0011
| 11.95 |
Symbol: CVGW
Security: Calavo Growers, Inc.
Related Stocks/Topics: Markets
Title: Four Small-Caps That the Gurus Would Love
Type: News
Publication: Validea
Publication Author: Unknown
Date: 2010-11-10 02:00:00
Article: In recent months, several top strategists have been saying that large-cap stocks are offering exceptional bargains. Having substantially lagged their smaller peers for years -- the S&P 600 small-cap index has returned more than 7% annually over the past decade vs. 0.46% for the S&P 500 -- large-caps are now much cheaper than small stocks, investing gurus like Donald Yacktman and Barton Biggs have said.And they may be right. Many blue-chip-type companies' stocks, which usually trade at a premium because of the firms' visibility and popularity, are indeed selling at bargain-basement prices. But as an investor, it's always important not to fall into the trap of generalization -- just because large-caps may be cheaper as a group than small stocks, that doesn't mean you should ignore the little guys. In fact, lately my Guru Strategies (each of which is based on the approach of a different investing great) have been finding some of their biggest winners in the small-cap world. Back on Sept. 2, for example, my Trade Alerts system on Validea.com issued a "buy" signal for small-cap mattress-maker Select Comfort Corporation ([SCSS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SCSS&selected=SCSS)) ), which has since jumped nearly 45% while the broader market has gained about 11%.More recently, on Oct. 19, the strategies I base on the writings of John Neff and Tom and David Gardner of The Motley Fool triggered an alert on China MediaExpress Holdings ([CCME](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CCME&selected=CCME)) ), a small-cap Chinese advertising firm. In the three weeks since, China MediaExpress' shares have surged more than 40% while the S&P 500 is up less than 5%.While such big short-term returns aren't typical, the strong recent performance of stocks like China MediaExpress and Select Comfort shows that you can still find plenty of small caps with big potential. This month, my system has flashed a "buy" signal on another small cap, Pre-Paid Legal Services ([PPD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PPD&selected=PPD)) ). Here's a look at why my models are so high on Pre-Paid and China MediaExpress, along with a few other small-caps that also earn high scores from my strategies. **Pre-Paid Legal Services ([PPD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PPD&selected=PPD)) ):** Oklahoma-based Pre-Paid ($606 million market cap) offers a variety of plans through which customers gain access to legal services for a monthly fee, which can be as low as $26. The services include help with both traditional legal problems and with everyday endeavors like buying a car or dealing with a problem with an insurance company. The firm serves more than 1.5 million families in the U.S. and Canada through a network of independent law firms.Pre-Paid gets strong interest from the strategy I base on the writings of hedge fund guru Joel Greenblatt. Greenblatt developed a remarkably simple, two-variable strategy for picking winning stocks, looking at earnings yield and return on capital. Pre-Paid has a strong earnings yield of 17.2%, and an excellent return on capital of 100.9%. Together, those two figures make Pre-Paid the 7th-most-attractive stock in the market, according to my Greenblatt-based approach. My Warren Buffett-based strategy is also quite high on Pre-Paid. My Buffett-based model looks for firms with lengthy histories of earnings growth, manageable debt, and high returns on equity (which is a sign of the "durable competitive advantage" Buffett is known to seek). Pre-Paid delivers on all fronts. Its EPS have dipped in only one year of the past decade; it could pay off its $6.6 million in debt in less than a year, if it wanted to, given its $62.1 million in annual earnings; and its 10-year average ROE is 49.0%, more than three times the model's 15% target. **China MediaExpress Holdings ([CCME](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CCME&selected=CCME)) ):** This China-based firm ($730 million market cap) operates a television advertising network on inner-city passenger buses in China. Its network includes digital televisions that show ads on more than 21,000 buses, many of which travel through some of China's most populous regions.China MediaExpress gets high marks from my Greenblatt-based strategy and the model I base on the writings of The Motley Fool's Gardner brothers. The Greenblatt-inspired model likes the firm's 17.8% earnings yield and 64.0% return on total capital. Overall, it sees the stock as the 16th-most-attractive in the market right now.The Fool-based approach, meanwhile, likes China MediaExpress' giant 49.3% profit margin, lack of any long-term debt, and 92 relative strength. The stock's big recent move has made it pretty pricey for the growth it's providing, however, and its 3.42 P/E/Growth ratio keeps the stock from getting a higher score from this model. **Calavo Growers, Inc. ([CVGW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CVGW&selected=CVGW)) ):** Based in California, this 86-year-old food firm is one of the U.S.'s biggest avocado producers. Last year, it packed more than 210 pounds of fresh avocados, accounting for about a fifth of all fruit sold into the U.S. market. Two of my strategies are very high on Calavo, which has a market cap of about $340 million. My Peter Lynch-inspired model considers the stock a "fast-grower" -- Lynch's favorite type of investment -- thanks to its 29.5% long-term earnings per share growth rate. (I use an average of the three-, four-, and five-year EPS growth rates to determine a long-term rate.). Lynch famously used the P/E/Growth ratio to identify undervalued growth stocks; Calavo sports a 0.74 P/E/G, which comes in well under this model's 1.0 upper limit. My Lynch-based model also likes that Calavo appears to be conservatively financed -- its debt/equity ratio is just 13.9%.My James O'Shaughnessy-based growth model also likes Calavo, thanks in part to the firm having upped EPS in each year of the past half-decade. It also likes Calavo's combination of a solid relative strength (61), and a low price/sales ratio (0.91). That means that, while Wall Street has been giving the stock some love, it hasn't gotten too pricey. **Cantel Medical Corp. ([CMN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CMN&selected=CMN)) ):** New Jersey-based Cantel makes a variety of products used to prevent and control infections. Its offerings range from dialysis- and endoscopy-related products, to specialty packing for infectious and biological specimens, to products for the dental and water purification industries.Cantel ($343 million market cap) gets approval from my Lynch- and O'Shaughnessy-based models. The Lynch approach likes its 0.63 P/E/G ratio, a sign the fast-grower (27.4% long-term EPS growth rate) is selling on the cheap. It also likes Cantel's 10% debt/equity ratio.I'm long PPD and CCME.
Stock Price 4 days before: 22.8618
Stock Price 2 days before: 22.7189
Stock Price 1 day before: 22.9236
Stock Price at release: 22.9283
Risk-Free Rate at release: 0.0012
| 23.218 |
Symbol: EZPW
Security: EZCORP, Inc.
Related Stocks/Topics: Markets
Title: Bull sticks with pawnbroker EZCorp
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-11-10 07:13:00
Article: The credit draught has been good for pawnbroker EZCorp, and one investor is looking for more gains with the stock at all-time highs.optionMONSTER's Heat Seeker monitoring system detected the purchase of about 3,600 December 25 calls for $1.25 and the sale of a matching number of November 22.50 calls for $2.50. Volume in the November contracts was below open interest, indicating a long position in the contracts was rolled from one strike to the other. [EZPW](http://www.optionmonster.com/cms/commentary/images/ezpw111010.png) The trade let the investor recover $1.25 of principal while adding a month of upside exposure. The trade also more than tripled the position's gamma to 16 from about 5, which will increase leverage if the stock continues to rally. (See our Education section) EZPW fell 0.24 percent to $24.96 yesterday and but up 39 percent since the beginning of September. It reported better-than-expected earnings and revenue on Nov. 5 as borrowers hock valuables because they can't borrow from banks. Management also issued bullish 2011 guidance and said it had opened or acquired 127 new locations in the last fiscal year.Despite its big run, EZPW is trading for less than 10 times forward earnings and has as price/earnings growth ratio of only about 0.66, which could be leading some investors to expect further upside.Overall option volume in the stock was 26 times greater than average yesterday, with calls accounting for 91 percent of the activity.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 24.4298
Stock Price 2 days before: 24.5479
Stock Price 1 day before: 25.1415
Stock Price at release: 24.9144
Risk-Free Rate at release: 0.0012
| 27.3192 |
Symbol: SIGA
Security: SIGA Technologies, Inc.
Related Stocks/Topics: AN|Markets|EBS|DVN
Title: 3 Insider Stocks That Could Pop
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-11-10 08:00:00
Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photoAs [earnings season](http://investinganswers.com/term/earnings-season-344) winds down, insider activity heats up. That's because insiders (classified as company executives, directors and beneficial owners) get the green light to buy or sell their company's stock on the open market once [earnings](http://investinganswers.com/term/earnings-1514) have been released. (That window remains open until the quarter has ended). So it's no surprise to see a recent sharp spike in insider buying. Earlier this week, I noted that Bill Gates, classified as an insider at **AutoNation ([AN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AN&selected=AN)) )** because of his large investment in the company, has continued to aggressively purchase shares. [ [Read the article here](http://www.streetauthority.com/a/bill-gates-cant-get-enough-stock-457574) .]Let's take a look at three other stocks with heavy recent insider buying. **Devon Energy ([DVN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DVN&selected=DVN)) )**This oil and gas driller always seems to raise investor concerns. In 2008, investors shunned its shares since Devon lacked exposure to the sudden plethora of emerging natural gas fields found in the U.S. Southwest and in Appalachia. In 2009, investors fretted that Devon wasn't investing enough money to boost output in coming years. Then, when Devon announced a plan for major asset sales later in 2009, investors feared that management would simply use that cash to make unproductive acquisitions.Yet as we sit here in late 2010, Devon is looking far wiser than investors assumed. The company's lack of exposure to those promising natural gas fields now looks savvy, considering natural gas prices are so low. The company's asset sales came in at prices higher than most expected, yielding $8 billion in cash for the company. And instead of using that cash to make new deals, management is boosting internal investments in existing properties -- especially those that have a higher exposure to oil than gas.Most importantly, Devon is focusing on boosting shares, paying off $1.7 billion in debt and buying back $1 billion in stock (with plans to buy $2.5 billion more in 2011). UBS thinks Devon will buy back lots more stock in 2012 and 2013 as well, as its [balance sheet](http://investinganswers.com/term/balance-sheet-1083) is now one of the strongest in the industry. All these moves should ultimately boost per share profits. "With the completion of the asset sale program, Devon has repositioned its operations to have a lower risk profile and a lower cost structure, as well as materially strengthening its balance sheet. This should boost Devon's long-term production growth," note analysts at UBS. And rising production growth, which management recently outlined for 2011, could be a key catalyst for shares. Rising production should help boost [cash flow](http://investinganswers.com/term/cash-flow-1175) from $6.8 billion in 2011 to $8.5 billion in 2012, according to Goldman Sachs. Throw in a lower share count, and that growth should be more evident on a per share basis. And with oil prices on the rise, cash flow projections could move yet higher. [" [Why 2011 Could be the Year of the Oil Comeback](http://www.streetauthority.com/news/why-2011-could-be-year-oil-comeback-457128) "]Meanwhile, shares trade for less than five times projected 2011 cash flow. That's too low a multiple, according to company CEO John Richels, who recently increased his ownership stake by 53,000 shares. **PharmAthene ([PIP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PIP&selected=PIP)) )**When this small biotech recently decided to raise $15 million, insiders and other large shareholders didn't hesitate to pull out their checkbooks. (That qualifies as an insider buy according to those that watch insider moves). Their bullishness is understandable. For starters, the company looks increasingly likely to prevail in a lawsuit against **SIGA Technologies (Nasdaq: SIGA)** regarding marketing rights to a drug that treats smallpox -- yielding a potential massive windfall. (SIGA recently received a $2.8 billion order from Uncle Sam, and PharmAthene may be legally due some of that money due to a 2006 agreement that is being contested).Secondly, PharmAthene is also vying to become a key provider of a next generation anti-anthrax drug to the U.S. military. The U.S. government has been helping to fund development of this drug, which would likely sell for a third of the price of an existing drug sold by **Emerging BioSciences ([EBS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EBS&selected=EBS)) )** .A positive resolution to either of these drugs would likely be worth at least $6 to $7 to shareholders. If PharmAthene scores on both counts, then shares could zoom to $15 from a current $3. To be sure, the current weak share price implies investor cynicism on these developments. But shares certainly look to be a worth a modest position in light of the considerable potential upside. **QLT (Nasdaq: QLTI)**Major investors in this small firm focused on eye disorders continue to increase their positions. Nearly two million shares have been acquired by two outside investors and three insiders in the past six months, capped off by a recent $1 million purchase by Axial Capital Management. Those purchases were purchased in the $5 to $6 range.C.K. Cooper's Jeff Cohen thinks that may be a wise move. He thinks the stock is worth $12 on a sum-of-the-parts basis, noting the company's nearly $200 million in cash accounts for nearly two-thirds of the company's [market value](http://investinganswers.com/term/market-value-779) . Throw in royalties due to QLT, along with an estimated value of drugs and medical devices in its pipeline, and Cohen thinks the stock is a double. Those insiders presumably share that view. **Action to Take -->** Of these plays, Devon Energy is the "safe" play, with potential +20% to +40% upside in the next year or two. QLT could be a potential double and even comes with impressive downside support, thanks to that hefty cash balance. PharmAthene looks quite risky, but could really take off if it benefits from its small pox or anthrax drugs.[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... 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: 13.0993
Stock Price 2 days before: 10.6608
Stock Price 1 day before: 12.9474
Stock Price at release: 12.2154
Risk-Free Rate at release: 0.0012
| 12.6611 |
Symbol: EBS
Security: Emergent BioSolutions Inc.
Related Stocks/Topics: AN|Markets|DVN|SIGA
Title: 3 Insider Stocks That Could Pop
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-11-10 08:00:00
Article: [Shutterstock photo](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Shutterstock photoAs [earnings season](http://investinganswers.com/term/earnings-season-344) winds down, insider activity heats up. That's because insiders (classified as company executives, directors and beneficial owners) get the green light to buy or sell their company's stock on the open market once [earnings](http://investinganswers.com/term/earnings-1514) have been released. (That window remains open until the quarter has ended). So it's no surprise to see a recent sharp spike in insider buying. Earlier this week, I noted that Bill Gates, classified as an insider at **AutoNation ([AN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AN&selected=AN)) )** because of his large investment in the company, has continued to aggressively purchase shares. [ [Read the article here](http://www.streetauthority.com/a/bill-gates-cant-get-enough-stock-457574) .]Let's take a look at three other stocks with heavy recent insider buying. **Devon Energy ([DVN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DVN&selected=DVN)) )**This oil and gas driller always seems to raise investor concerns. In 2008, investors shunned its shares since Devon lacked exposure to the sudden plethora of emerging natural gas fields found in the U.S. Southwest and in Appalachia. In 2009, investors fretted that Devon wasn't investing enough money to boost output in coming years. Then, when Devon announced a plan for major asset sales later in 2009, investors feared that management would simply use that cash to make unproductive acquisitions.Yet as we sit here in late 2010, Devon is looking far wiser than investors assumed. The company's lack of exposure to those promising natural gas fields now looks savvy, considering natural gas prices are so low. The company's asset sales came in at prices higher than most expected, yielding $8 billion in cash for the company. And instead of using that cash to make new deals, management is boosting internal investments in existing properties -- especially those that have a higher exposure to oil than gas.Most importantly, Devon is focusing on boosting shares, paying off $1.7 billion in debt and buying back $1 billion in stock (with plans to buy $2.5 billion more in 2011). UBS thinks Devon will buy back lots more stock in 2012 and 2013 as well, as its [balance sheet](http://investinganswers.com/term/balance-sheet-1083) is now one of the strongest in the industry. All these moves should ultimately boost per share profits. "With the completion of the asset sale program, Devon has repositioned its operations to have a lower risk profile and a lower cost structure, as well as materially strengthening its balance sheet. This should boost Devon's long-term production growth," note analysts at UBS. And rising production growth, which management recently outlined for 2011, could be a key catalyst for shares. Rising production should help boost [cash flow](http://investinganswers.com/term/cash-flow-1175) from $6.8 billion in 2011 to $8.5 billion in 2012, according to Goldman Sachs. Throw in a lower share count, and that growth should be more evident on a per share basis. And with oil prices on the rise, cash flow projections could move yet higher. [" [Why 2011 Could be the Year of the Oil Comeback](http://www.streetauthority.com/news/why-2011-could-be-year-oil-comeback-457128) "]Meanwhile, shares trade for less than five times projected 2011 cash flow. That's too low a multiple, according to company CEO John Richels, who recently increased his ownership stake by 53,000 shares. **PharmAthene ([PIP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PIP&selected=PIP)) )**When this small biotech recently decided to raise $15 million, insiders and other large shareholders didn't hesitate to pull out their checkbooks. (That qualifies as an insider buy according to those that watch insider moves). Their bullishness is understandable. For starters, the company looks increasingly likely to prevail in a lawsuit against **SIGA Technologies (Nasdaq: SIGA)** regarding marketing rights to a drug that treats smallpox -- yielding a potential massive windfall. (SIGA recently received a $2.8 billion order from Uncle Sam, and PharmAthene may be legally due some of that money due to a 2006 agreement that is being contested).Secondly, PharmAthene is also vying to become a key provider of a next generation anti-anthrax drug to the U.S. military. The U.S. government has been helping to fund development of this drug, which would likely sell for a third of the price of an existing drug sold by **Emerging BioSciences ([EBS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EBS&selected=EBS)) )** .A positive resolution to either of these drugs would likely be worth at least $6 to $7 to shareholders. If PharmAthene scores on both counts, then shares could zoom to $15 from a current $3. To be sure, the current weak share price implies investor cynicism on these developments. But shares certainly look to be a worth a modest position in light of the considerable potential upside. **QLT (Nasdaq: QLTI)**Major investors in this small firm focused on eye disorders continue to increase their positions. Nearly two million shares have been acquired by two outside investors and three insiders in the past six months, capped off by a recent $1 million purchase by Axial Capital Management. Those purchases were purchased in the $5 to $6 range.C.K. Cooper's Jeff Cohen thinks that may be a wise move. He thinks the stock is worth $12 on a sum-of-the-parts basis, noting the company's nearly $200 million in cash accounts for nearly two-thirds of the company's [market value](http://investinganswers.com/term/market-value-779) . Throw in royalties due to QLT, along with an estimated value of drugs and medical devices in its pipeline, and Cohen thinks the stock is a double. Those insiders presumably share that view. **Action to Take -->** Of these plays, Devon Energy is the "safe" play, with potential +20% to +40% upside in the next year or two. QLT could be a potential double and even comes with impressive downside support, thanks to that hefty cash balance. PharmAthene looks quite risky, but could really take off if it benefits from its small pox or anthrax drugs.[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... 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: 18.1184
Stock Price 2 days before: 18.0274
Stock Price 1 day before: 17.6886
Stock Price at release: 17.7141
Risk-Free Rate at release: 0.0012
| 18.9648 |
Symbol: CYD
Security: China Yuchai International Limited
Related Stocks/Topics: Markets
Title: Trades see China Yuchai near top
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-11-10 10:27:00
Article: China Yuchai International attempted to climb after reporting earnings today, but options traders are calling the top. [CYD](http://www.optionmonster.com/cms/commentary/images/cyd111010.png) optionMONSTER's tracking systems detected the sale of about 3,900 November 20 calls against open interest of 2,684. Some of the large trades priced for $6.90, but premiums edged lower and ended up below $4 as the Chinese maker of diesel engines surrendered early gains. CYD fell 2.32 percent to $26.13 in morning trading and reversed after touching a six-year high of $29.23 shortly after the open. The shares entered the session with a 65 percent rally since the beginning of September.The call sellers apparently think the stock has run too far, too fast, and unloaded the contracts to take profits.CYD's earnings report showed an improvement in profitability as a shift to heavy-truck engines and a new foundry caused its gross margin to expand to 23.1 percent from 19.9 percent. Revenue, however, fell 5 percent. The company isn't followed by analysts.Longer term, investors may consider the stock attractive because its enterprise value is less than 4 times EBITDA, compared with ratios over 10 times for similar U.S. companies such as Navistar and Cummins.Overall options volume in CYD is 8 times greater than average so far today. (Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 27.1975
Stock Price 2 days before: 27.2223
Stock Price 1 day before: 26.9303
Stock Price at release: 25.9433
Risk-Free Rate at release: 0.0012
| 27.7 |
Symbol: DHC
Security: Diversified Healthcare Trust
Related Stocks/Topics: Markets
Title: The Best Income Stocks to Hold Forever
Type: News
Publication: Carla Pasternak
Publication Author: Unknown
Date: 2010-11-10 11:03:00
Article: The numbers have grown so large over the years, it's hard for me to believe sometimes.In total, more than 250,000 subscribers receive my free [Dividend Opportunities](https://www.globaldividends.com/subscribe.asp) newsletter each week. I'm also the Director of Income Research for [High-Yield Investing](http://web.streetauthority.com/m/hyi/j/1110-foreverstocks.asp??TC=HY0829) , which boasts more than 30,000 readers. With nearly 300,000 investors reading my analysis, you can guess that I am always peppered with questions. But one question is asked more than any other: "What should I buy?"It can be a tough one to answer. After all, everyone has different goals for their portfolio. Some want the safest dividends possible. Others want the highest yields they can find. Still others are looking for a combination of growth and yield.So when I answer, I make it simple on myself. I tell people to buy income stocks they'll want to own forever .In my mind, these "hold forever" gems are the safe, reliable securities that increase dividends year after year. The securities you hold forever should come courtesy of businesses so fundamental that demand never falters. For income stocks, this kind of unwavering demand drives reliable [dividend](http://investinganswers.com/term/dividend-1304) growth. Year in and year out, regardless of circumstance, these stocks can power -- and even raise -- dividends.This sort of steady demand isn't a fairy tale. For example, **StoneMor Partners LP (Nasdaq: STON)** is the nation's second-largest owner/operator of cemeteries. It operates more than 250 cemeteries and 60-plus funeral homes across the United States. The company takes one of life's certainties and channels it into consistent dividend growth. Since [going public](http://investinganswers.com/term/going-public-456) six years ago, StoneMor has increased dividends eight times. The latest increase came just last month. StoneMor now pays $2.26 per share annually and generously yields about 8.0% based on recent prices.But along with steady growth, a "hold forever" gem must also have safe dividends. That means dividends are comfortably covered by [cash flow](http://investinganswers.com/term/cash-flow-1175) . Last year StoneMor produced $35 million in distributable cash flow, but paid only $27 million in dividends. That leaves plenty of room for future dividend hikes.Truth be told, the graying of our population is a great place to look for long-term holdings. It's one trend that shows no sign of reversing for decades.That's why I am also a fan of **Senior Housing Properties Trust ([SNH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SNH&selected=SNH)) )** . Senior Housing Properties owns independent and assisted-living facilities that cater to seniors. It owns roughly 300 housing sites across the country.Senior Housing began paying dividends in 2000 and has raised payments steadily since then, a few pennies at a time. There has never been a dividend cut, even during the recent recession. The dividend hiked twice in 2007, again in 2009, and again last month to a $1.48 per unit annualized rate. At this new rate, Senior Housing yields a steady 6.0%. Distributions are safe since Senior Housing easily covers payments from its [funds from operations (FFO)](http://investinganswers.com/term/funds-operations-ffo-813) . The company produces roughly $53.5 million in [FFO](http://investinganswers.com/term/funds-operations-ffo-813) each quarter, which covers $45.9 million paid out as distributions. Moreover, reliable cash flow is ensured by long-term leases on properties, and growth comes from built-in rent increases. **Action to Take -->** Either StoneMor or Senior Housing would qualify as "hold forever" income stocks. And even though they're just examples to show what I'm talking about, you may want to consider them for your own portfolio.Of course, there is no such thing as a perfect investment. Even with long-term holdings, you have to be willing to overlook a few blemishes. For instance, Senior Housing Properties relies on one tenant -- Five Star Quality Care -- for nearly 60% of its income.At this point, however, I think the benefits of steady demand and reliable dividends outweigh the risks, and it should be that way for a long time.[ **Note** : An amazing thing happens when you hold income stocks forever -- the dividends add so much to your total return that it becomes hard to own a losing position. This is something [many of the world's most successful investors](http://web.streetauthority.com/m/hyi/j/1110-foreverstocks.asp??TC=HY0829) found out long ago. To get you started on the right track, we've created a short memo on the subject to supplement this article. [Click here to start reading](http://web.streetauthority.com/m/hyi/j/1110-foreverstocks.asp??TC=HY0829) .] [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...P.S. Investing in dividend-paying stocks is one of the most profitable ways to beat the market. For more on stable stocks that will grow your money with ever-increasing dividends, see Carla Pasternak's latest course, The 5 Rules Every Income Investor Has to Know.Disclosure: Neither Carla Pasternak 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: 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: 0.0012
| 0 |
Symbol: WGO
Security: Winnebago Industries, Inc.
Related Stocks/Topics: CTRN|Markets|BBY
Title: 3 Consumer Rebound Stocks to Own Now
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-11-10 12:30:00
Article: The fact that 151,000 jobs were created in October is impressive. The fact that August and September jobs numbers were upwardly revised by a collective 110,000 was even more impressive, as it underscores that things were not quite so bleak as had been feared a few months ago.Could we now be on the cusp of a robust and sustained upturn in jobs? It's too soon to say. Employment numbers for November and December are hard to handicap, especially since most major companies will hold off on any significant changes in hiring until after we are done with 2010. Looking into next year, a real case can be made for an improving job picture. Corporations are now flush with cash after a string of highly profitable quarters, existing workers are being pressed to shoulder an unsustainably heavyload , and companies are less likely to fret that we're headed back toward the dreaded "double-dip" recession.All signs point to "help wanted" signs popping up with more frequency next year. My colleague Nathan Slaughter has taken a more in-depth look at the employment picture, and has a pair of intriguing staffing stocks he's getting behind. [ [Read Nathan's article here](http://www.streetauthority.com/news/my-shocking-prediction-2011-and-2-ways-profit-457590) ]You also can't forget the retail angle. As employment picks up, new hires will begin to have more cash to spend, which should help retail stocks. Here are three companies that would clearly benefit... **Best Buy ([BBY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BBY&selected=BBY)) )**Shares of this electronics retailer have rebounded roughly +30% since I wrote about it [back in mid-September](http://www.streetauthority.com/news/why-best-buys-jump-just-beginning-456551) , but I see another similar-sized move coming this winter, pushing shares from a current $45 closer to the $60 mark.When I looked at Best Buy in September, I focused on the catalysts for the upcoming holiday shopping season. Yet as the calendar flips to 2011, the investment thesis shifts from an impressive product assortment this year to higher consumer spending next year. Let's face it: many of us splurged on consumer electronics a few years ago, but have had to make do with what we have the past two years. A $1,000 spending spree at places like Best Buy was replaced by a $100 DVD player here, a $200 camera there. But an emboldened consumer that is less worried about losing their job in 2011 will have reason to treat themselves or their loved ones. And to my mind, few retailers can excite a newly-enthused consumer as a place like Best Buy, truly a toy store for adults. Analysts have started to raise their forecasts for Best Buy, and now think the retailer will boost sales +5% in the next [fiscal year](http://investinganswers.com/term/fiscal-year-1316) (which ends February, 2012) and that per share profits will approach $4. Yet that growth rate really just reflects the company's international expansion plans, coupled with a very modest expansion in its domestic store base and minimal same-store sales growth. Yet that last factor is the wildcard. If consumers are feeling more emboldened, then same-store sales could easily rise at a +5% pace, pushing total company sales +10% higher, and [EPS](http://investinganswers.com/term/earnings-share-eps-1003) closer to $4.50. Shares trade for about 10 times that admittedly bullish view, but that's far too cheap a multiple for a retailer with such a tremendous track record. Move that multiple up to 13, and shares would rise +30%. **Winnebago ([WGO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WGO&selected=WGO)) )**Even in a lousy economic environment, this maker of recreational vehicles is seeing signs of a solid rebound. The company has blown past estimates for each of the last three quarters and is on track to boost sales +25% in fiscal (August) 2011. Then again, projected sales of $560 million are a far cry from $1 billion in revenue seen in 2004 and 2005.Per share profits are unlikely to top $0.50 next year, but as investors start to think about the impact of rebounding consumer sentiment, they'd do well to remember that Winnebago earned more than $4 a share when times were good. The stock rallied to $17 earlier this year but has since pulled back to around $11. Shares look like quite the bargain now -- if you believe the consumer will start to stir back to life in 2011. ****Citi Trends (Nasdaq: CTRN) Shares of this retailer, which targets lower-income inner city consumers, has seen its stock fall roughly -45% in the last six months as rising unemployment has been most deeply felt in this target demographic. The company badly lagged profit forecasts for the quarter ended in August and the current quarter, which ends in a few weeks, is likely to be similarly weak.Yet those trends are obscuring a broader expansion plan that is increasing the company's footprint in major markets. That's why analysts still think sales and profits will rise around +15% both this year and next. That growth rate is lower than what many had expected six months ago, when this upstart retailer was seen to be capable of +20% to +25% growth. Blame it on the tough [economy](http://investinganswers.com/term/economy-1517) . If employment trends continue to improve, then sentiment may turn positive again for Citi Trends. A word of caution: the U.S. government may rein in the current extension of unemployment benefits, which would have a noticeable effect on Citi Trends' customer base, so shares may stutter the next few months, before setting the stage for a rebound in 2011. I like this name as a long-term holding, and investors should be ready to pounce if and when shares fall into the upper teens. **Action to Take -->** All three of these companies have very strong reputations among their customer bases, yet all also sell discretionary wares, so that great reputation has been of no help while consumers are insecure. An emboldened consumer would flock back to brands they trust, such as Best Buy, Winnebago, and Citi Trends.Shares of Best Buy have moderate upside, with ample downside protection in the $40 range, while Winnebago and Citi Trends may take longer to be appreciate, but they also sport more 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 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: 11.2496
Stock Price 2 days before: 11.1318
Stock Price 1 day before: 10.8096
Stock Price at release: 10.5057
Risk-Free Rate at release: 0.0012
| 12.2873 |
Symbol: PBT
Security: Permian Basin Royalty Trust
Related Stocks/Topics: TRU|Markets|MLP|SJT
Title: High Yield Royalty Trusts: Enticing, But Not Necessarily for Retirement Portfolios
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-11-10 12:57:00
Article: ** [Chuck Carnevale](http://edmpinc.org/) submits:**As our population ages, the quest for income to fund retirement has never been greater. With interest rates at or near all-time lows, the traditional fixed income option does not provide enough yield to meet the needs of most people desirous of living off their portfolio income. Consequently, investors are compelled to search out alternative options.Royalty Trusts are an option that on the surface offers enticing yields. However, closer scrutiny may tell a very different story. Therefore, the purpose of this article, to rephrase a famous Waylon Jennings song lyric, is to enlighten investors so that they are not looking for yield in all the wrong places. In our previous article in this series we covered Master Limited Partnerships (MLPs) that primarily invest in the energy sector. Investing in energy assets is one thing that Royalty Trusts have in common with Master Limited Partnerships (MLPs). But Royalty Trusts are really not operating businesses; instead they are financing vehicles. Therefore, Royalty Trusts are typically run by banks.Although they trade like stocks, they have no management and no employees. Specific energy assets, which typically might be oil, coal and or natural gas are placed into the trust.Even though the Royalty Trusts we will cover in this article trade on the New York Stock Exchange, technically they are not stocks; instead, they are investment trusts. They buy the right to receive royalties on the production and sale of natural resource assets and then pass on the profits to the trust unit holders (shareholders).Just like any other trust, a Royalty Trust is a legal instrument that is created to hold assets for others. Therefore, a typical Royalty Trust is a legal entity that holds ownership of an asset (asset-backed security) and passes through the income to its investors known as unit holders.Consequently, in contrast to a Master Limited Partnership (([MLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MLP&selected=MLP)) )), the Royalty Trust can be thought of as a direct play on the underlying commodity the trust holds. Therefore, the distributions (dividends) can vary wildly as they are directly tied to the market prices of the underlying assets. A simple way for investors to think about their Royalty Trust holdings is that they are just like owning their own oil wells (assuming, of course, that the trust owns oil wells). However, it's also important that the investor realizes that they own a finite amount of the resource. Every time a barrel of oil is produced, there is one less barrel securitizing the trust assets. Of course, in the energy sector this is known as depletion. So long-term investors in Royalty Trusts need to understand that once all the oil is produced, the asset is gone, and so is the value of their holding and the dividends.Even though the typical Royalty Trust owns a finite amount of the underlying natural resource, they are often designed to produce income for periods of up to 10, 20 or even 30 years. Also, since the trust is designed to essentially pay out all of its income to shareholders, the distributions can be very substantial. Over time, the unit holder might receive multiples of cash distributions over and above their original investment. To a great extent, this will depend on the price performance of the underlying assets.During times of rising prices, trust unit holders can expect high and rising yields. Of course, the opposite is also true. Consequently, many Royalty Trusts have seen their distribution yields fall with energy prices over the last few years. **Yields Tied to Commodity Prices** The following graphs reflect the price of oil and natural gas since November of 2005. With oil peaking in early 2007 and natural gas prices peaking in the fall of 2007 there was a direct effect on the yields of Royalty Trusts that invested in oil and gas.click to enlarge images** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933969203068-Chuck-Carnevale_origin.png)**The following F.A.S.T. Graph™ on the Permian Basin Royalty Trust ([PBT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PBT&selected=PBT)) ) plots the cash distributions (dividends) for this Royalty Trust since calendar year 2005. Note how closely the dividends (blue shaded area) correlated to the price of oil in the above crude oil price graph. **PBT 6yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933973820045-Chuck-Carnevale_origin.png) The following F.A.S.T. Graph™ on the Hugoton Royalty Trust ([HGT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HGT&selected=HGT)) ), which predominately invests in gas producing properties, offers a similar correlation of its dividend (blue shaded area) to the price of natural gas as seen in the above natural gas price graph. **HGT 6yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933976112965-Chuck-Carnevale_origin.png) The primary points of the above graphic presentations were to illustrate the direct relationship between the cash distributions that a Royalty Trust will pay to trust holders and the price of the underlying asset. The distribution rate (dividends) of both trusts rose and fell in close to direct proportion to the rise and fall of the prices of each respective trust's underlying asset base. At the bottom of each F.A.S.T. Graph™ you can see the dividend rate, and just above it the rate of change from one year to the next (Chg/Yr). **Depleting Assets-The Risks** In addition to the risk of volatile yields, depletion is another potential negative that Royalty Trust unit holders face. Although wide swings in commodity prices and/or production levels can create very inconsistent distribution levels, these same factors can also cause significant changes in the current value of a Royalty Trust. Later in this article we will present examples of Royalty Trusts that richly rewarded their unit holders over intermediate to long periods of time.However, first we will review Torch Energy Royalty Trust ([TRU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TRU&selected=TRU)) ) which was formed effective October 1, 1993 and holds net profit interests in oil and gas properties in the Chalkley Field in Louisiana and the Robinson Bend Field in Alabama. This is a trust that has recently announced that it would be terminated and is currently in the windup and liquidation process.When looked at through the lens of our F.A.S.T. Graphs™ a couple of things become very clear. First of all, the risk of depleting assets can be vividly seen in graphic form. Next, a review of the performance F.A.S.T. Graph™ shows that the trust did not provide returns that unit holders may have expected when they first invested. **TRU 17yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933979441407-Chuck-Carnevale_origin.png)**TRU 17yr. Performance Results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-12893398175825-Chuck-Carnevale_origin.png) From the F.A.S.T. Graphs™ above it is clear that the Torch Energy Royalty Trust ([TRU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TRU&selected=TRU)) ) saw its share price decline consistently from day one, and so did its dividends (distributions per unit). It would be hard to argue that unit holders of the Torch Energy Royalty Trust ([TRU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TRU&selected=TRU)) ) were adequately compensated for the risk they took.Below are two excerpts from their 2009 annual report that illustrate the risk of depletion. The first speaks to the issue of depletion. Especially note the language that discusses how a portion of each distribution should be considered a return of capital.This second excerpt in chart form from their 2009 annual report shows how both the estimated reserves of oil and natural gas have been steadily declining (this excerpt only covers the period 2007 to 2009). **Williams Coal Seam Royalty Trust (WTU)** Williams Coal Seam Royalty Trust is another example of a trust terminating due to depletion. On February 5, 2010, they announced:On November 5, 2010 they announced a liquidation distribution of approximately $2.38 payable November 29, 2010. This information is not included in the F.A.S.T. Graph™ below. However, as you can see by the performance up through 2009, this Royalty Trust is another example that did not adequately reward shareholders for the risk they took. **WTU 17yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933989497874-Chuck-Carnevale_origin.png)**WTU 17yr. Performance Results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933991790021-Chuck-Carnevale_origin.png)**Three Prominent Royalty Trusts** The next section of this article will look at three prominent Royalty Trusts through the lens of our F.A.S.T. Graph™ research tool. We will review how they have rewarded their investors since they were formed in the early 1990s based on both price and dividends (distributions per unit). We will look at them in order of worst to best performance. We hope that this will provide the reader with a much more learned perspective on the advantages and disadvantages of investing in Royalty Trusts.However, a few words about our F.A.S.T. Graph™ tool are in order. Our F.A.S.T. Graph™ tool was designed and programmed to provide essential "fundamentals at a glance" and corresponding performance results on operating companies. Like all computer technology, a research tool is incapable of thinking for itself. Therefore, it's up to the user to apply their intelligence in order to properly interpret the information presented. Since Royalty Trusts are not operating businesses in the traditional sense, our F.A.S.T. Graph™ tool requires user interpretations when examining hybrids like Royalty Trusts. However, this does not mean that our F.A.S.T. Graph™ tool is without value when analyzing Royalty Trusts.Since Royalty Trusts are essentially required to pass through the majority of their royalty income to their unit holders, their distributions per unit can be looked at as the equivalent of earnings-per-share. Therefore, we have drawn the F.A.S.T. Graphs™ on these three companies utilizing an appropriate multiple of cash distributions in lieu of earnings-per-share.To the right of each graph you will see either the orange letters GDF (Graham Dodd Formula) or the orange letters GDF -EDMP (Graham Dodd Formula modified EDMP version) followed by a number that reflects the appropriate multiple applied to distributions. We then overlay monthly closing stock prices to the light blue shaded area or dividends.Not only will you find that stock prices are closely correlated to the dividend (cash distributions) of a Royalty Trust, you also find them to be a good proxy for fair value. In other words, if the price is above the blue shaded area (dividends/distributions) it would be logical to assume that overvaluation exists.One final clarifying point, our F.A.S.T. Graphs™ were originally programmed to provide and calculate estimates based on consensus numbers received from either FirstCall or Zacks. Since analysts do not normally provide forecasts on Royalty Trusts, no logical number could be applied to future distributions per share. Therefore, we have stopped each F.A.S.T. Graph™ at year-end 2009 which represents the last calendar year of actual numbers. Since calendar year 2010 is not complete, we have left it out, even though some distributions have already been paid and received. **San Juan Basin Royalty Trust ([SJT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SJT&selected=SJT)) )****SJT 18yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-12893399509499-Chuck-Carnevale_origin.png)**SJT 18yr. performance results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933997337901-Chuck-Carnevale_origin.png)**Cross Timbers Royalty Trust (CRT)****CRT 18yr. Earnings and Price Correlated F.A.S.T. Graph™**** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933999549022-Chuck-Carnevale_origin.png)****CRT 18yr. Performance Results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128934002254874-Chuck-Carnevale_origin.png)**Sabine Royalty Trust (SBR)****SBR 18yr. Earnings and Price Correlated F.A.S.T. Graph™**** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128934004437447-Chuck-Carnevale_origin.png)****SBR 18yr. Performance Results**** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128934006512699-Chuck-Carnevale_origin.png)**As you can see from the performance charts on the three examples above, Royalty Trusts can be very rewarding investments for their shareholders. Long-term owners of the above trusts received cash distributions that were multiples of their original investment. Furthermore, if the reserves are adequate, the valuation of the trust shares can provide capital appreciation. On the other hand, the two examples of terminating trusts illustrate the pitfalls that investors can face with this asset class. **Tax Considerations** Similar to the Master Limited Partnerships (([MLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MLP&selected=MLP)) )), Royalty Trusts provide tax advantages and complexities. Consequently, Royalty Trusts may not be appropriate investments to hold in retirement plans. This is not to say that they can't be, it merely means that many of the tax advantages offered by Royalty Trusts would be lost if held in retirement plans. If not held in a retirement plan, then additional tax filings and schedules may be required. Also, certain state filings in the states that the Royalty Trust generates its royalties from may also apply. Therefore, consulting with a tax expert is highly suggested before investing in these unconventional equities. **Conclusions** With the appetite for yield at a heightened level many investors are searching for alternatives to traditional income-producing asset classes. Historically, investors have been attracted to Royalty Trusts because of their exceptionally high yields.However, since the price of oil and gas has fallen in recent years, the often double-digit yields historically associated with Royalty Trusts have mostly fallen into the single-digit category. Nevertheless, compared to other asset classes, they remain high by today's standards.Forecasting future distributions and values for Royalty Trusts is rather straightforward. The researcher has to forecast future prices of the underlying asset class and calculate the estimated recoverable reserves that the trust still holds. Multiply future estimated prices, times the estimate of reserves should provide a reasonable estimate of future value.Maybe this task is straightforward, but it's certainly not easy. Therefore "caveat emptor" applies. If you think oil and gas prices will rise from here you might want to take a closer look at Royalty Trusts. Hopefully, this article has provided an intelligent framework from which to execute a rational analysis. Our next article will look at real estate investment trusts or REITs. **Disclosure:** No positions at the time of writing.The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.See also [How China's Inflation Policy Will Help the Yuan / Dollar Exchange Rate](http://seekingalpha.com/article/239007-how-china-s-inflation-policy-will-help-the-yuan-dollar-exchange-rate?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 22.6205
Stock Price 2 days before: 22.9314
Stock Price 1 day before: 23.5686
Stock Price at release: 23.3993
Risk-Free Rate at release: 0.0012
| 22.4438 |
Symbol: MLP
Security: Maui Land & Pineapple Company, Inc.
Related Stocks/Topics: PBT|Markets|SBR|SJT|TRU|CRT
Title: Would High Yield Royalty Trusts Deplete a Retirement Portfolio?
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-11-10 12:57:00
Article: ** [Chuck Carnevale](http://edmpinc.org/) submits:**As our population ages, the quest for income to fund retirement has never been greater. With interest rates at or near all-time lows, the traditional fixed income option does not provide enough yield to meet the needs of most people desirous of living off their portfolio income. Consequently, investors are compelled to search out alternative options.Royalty Trusts are an option that on the surface offers enticing yields. However, closer scrutiny may tell a very different story. Therefore, the purpose of this article, to rephrase a famous Waylon Jennings song lyric, is to enlighten investors so that they are not looking for yield in all the wrong places. In our previous article in this series we covered Master Limited Partnerships (MLPs) that primarily invest in the energy sector. Investing in energy assets is one thing that Royalty Trusts have in common with Master Limited Partnerships (MLPs). But Royalty Trusts are really not operating businesses; instead they are financing vehicles. Therefore, Royalty Trusts are typically run by banks.Although they trade like stocks, they have no management and no employees. Specific energy assets, which typically might be oil, coal and or natural gas are placed into the trust.Even though the Royalty Trusts we will cover in this article trade on the New York Stock Exchange, technically they are not stocks; instead, they are investment trusts. They buy the right to receive royalties on the production and sale of natural resource assets and then pass on the profits to the trust unit holders (shareholders).Just like any other trust, a Royalty Trust is a legal instrument that is created to hold assets for others. Therefore, a typical Royalty Trust is a legal entity that holds ownership of an asset (asset-backed security) and passes through the income to its investors known as unit holders.Consequently, in contrast to a Master Limited Partnership (([MLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MLP&selected=MLP)) )), the Royalty Trust can be thought of as a direct play on the underlying commodity the trust holds. Therefore, the distributions (dividends) can vary wildly as they are directly tied to the market prices of the underlying assets. A simple way for investors to think about their Royalty Trust holdings is that they are just like owning their own oil wells (assuming, of course, that the trust owns oil wells). However, it's also important that the investor realizes that they own a finite amount of the resource. Every time a barrel of oil is produced, there is one less barrel securitizing the trust assets. Of course, in the energy sector this is known as depletion. So long-term investors in Royalty Trusts need to understand that once all the oil is produced, the asset is gone, and so is the value of their holding and the dividends.Even though the typical Royalty Trust owns a finite amount of the underlying natural resource, they are often designed to produce income for periods of up to 10, 20 or even 30 years. Also, since the trust is designed to essentially pay out all of its income to shareholders, the distributions can be very substantial. Over time, the unit holder might receive multiples of cash distributions over and above their original investment. To a great extent, this will depend on the price performance of the underlying assets.During times of rising prices, trust unit holders can expect high and rising yields. Of course, the opposite is also true. Consequently, many Royalty Trusts have seen their distribution yields fall with energy prices over the last few years. **Yields Tied to Commodity Prices** The following graphs reflect the price of oil and natural gas since November of 2005. With oil peaking in early 2007 and natural gas prices peaking in the fall of 2007 there was a direct effect on the yields of Royalty Trusts that invested in oil and gas.click to enlarge images** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933969203068-Chuck-Carnevale_origin.png)**The following F.A.S.T. Graph™ on the Permian Basin Royalty Trust ([PBT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PBT&selected=PBT)) ) plots the cash distributions (dividends) for this Royalty Trust since calendar year 2005. Note how closely the dividends (blue shaded area) correlated to the price of oil in the above crude oil price graph. **PBT 6yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933973820045-Chuck-Carnevale_origin.png) The following F.A.S.T. Graph™ on the Hugoton Royalty Trust ([HGT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HGT&selected=HGT)) ), which predominately invests in gas producing properties, offers a similar correlation of its dividend (blue shaded area) to the price of natural gas as seen in the above natural gas price graph. **HGT 6yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933976112965-Chuck-Carnevale_origin.png) The primary points of the above graphic presentations were to illustrate the direct relationship between the cash distributions that a Royalty Trust will pay to trust holders and the price of the underlying asset. The distribution rate (dividends) of both trusts rose and fell in close to direct proportion to the rise and fall of the prices of each respective trust's underlying asset base. At the bottom of each F.A.S.T. Graph™ you can see the dividend rate, and just above it the rate of change from one year to the next (Chg/Yr). **Depleting Assets-The Risks** In addition to the risk of volatile yields, depletion is another potential negative that Royalty Trust unit holders face. Although wide swings in commodity prices and/or production levels can create very inconsistent distribution levels, these same factors can also cause significant changes in the current value of a Royalty Trust. Later in this article we will present examples of Royalty Trusts that richly rewarded their unit holders over intermediate to long periods of time.However, first we will review Torch Energy Royalty Trust ([TRU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TRU&selected=TRU)) ) which was formed effective October 1, 1993 and holds net profit interests in oil and gas properties in the Chalkley Field in Louisiana and the Robinson Bend Field in Alabama. This is a trust that has recently announced that it would be terminated and is currently in the windup and liquidation process.When looked at through the lens of our F.A.S.T. Graphs™ a couple of things become very clear. First of all, the risk of depleting assets can be vividly seen in graphic form. Next, a review of the performance F.A.S.T. Graph™ shows that the trust did not provide returns that unit holders may have expected when they first invested. **TRU 17yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933979441407-Chuck-Carnevale_origin.png)**TRU 17yr. Performance Results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-12893398175825-Chuck-Carnevale_origin.png) From the F.A.S.T. Graphs™ above it is clear that the Torch Energy Royalty Trust ([TRU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TRU&selected=TRU)) ) saw its share price decline consistently from day one, and so did its dividends (distributions per unit). It would be hard to argue that unit holders of the Torch Energy Royalty Trust ([TRU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TRU&selected=TRU)) ) were adequately compensated for the risk they took.Below are two excerpts from their 2009 annual report that illustrate the risk of depletion. The first speaks to the issue of depletion. Especially note the language that discusses how a portion of each distribution should be considered a return of capital.This second excerpt in chart form from their 2009 annual report shows how both the estimated reserves of oil and natural gas have been steadily declining (this excerpt only covers the period 2007 to 2009). **Williams Coal Seam Royalty Trust ([WTU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WTU&selected=WTU)) )** Williams Coal Seam Royalty Trust is another example of a trust terminating due to depletion. On February 5, 2010, they announced:On November 5, 2010 they announced a liquidation distribution of approximately $2.38 payable November 29, 2010. This information is not included in the F.A.S.T. Graph™ below. However, as you can see by the performance up through 2009, this Royalty Trust is another example that did not adequately reward shareholders for the risk they took. **WTU 17yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933989497874-Chuck-Carnevale_origin.png)**WTU 17yr. Performance Results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933991790021-Chuck-Carnevale_origin.png)**Three Prominent Royalty Trusts** The next section of this article will look at three prominent Royalty Trusts through the lens of our F.A.S.T. Graph™ research tool. We will review how they have rewarded their investors since they were formed in the early 1990s based on both price and dividends (distributions per unit). We will look at them in order of worst to best performance. We hope that this will provide the reader with a much more learned perspective on the advantages and disadvantages of investing in Royalty Trusts.However, a few words about our F.A.S.T. Graph™ tool are in order. Our F.A.S.T. Graph™ tool was designed and programmed to provide essential "fundamentals at a glance" and corresponding performance results on operating companies. Like all computer technology, a research tool is incapable of thinking for itself. Therefore, it's up to the user to apply their intelligence in order to properly interpret the information presented. Since Royalty Trusts are not operating businesses in the traditional sense, our F.A.S.T. Graph™ tool requires user interpretations when examining hybrids like Royalty Trusts. However, this does not mean that our F.A.S.T. Graph™ tool is without value when analyzing Royalty Trusts.Since Royalty Trusts are essentially required to pass through the majority of their royalty income to their unit holders, their distributions per unit can be looked at as the equivalent of earnings-per-share. Therefore, we have drawn the F.A.S.T. Graphs™ on these three companies utilizing an appropriate multiple of cash distributions in lieu of earnings-per-share.To the right of each graph you will see either the orange letters GDF (Graham Dodd Formula) or the orange letters GDF -EDMP (Graham Dodd Formula modified EDMP version) followed by a number that reflects the appropriate multiple applied to distributions. We then overlay monthly closing stock prices to the light blue shaded area or dividends.Not only will you find that stock prices are closely correlated to the dividend (cash distributions) of a Royalty Trust, you also find them to be a good proxy for fair value. In other words, if the price is above the blue shaded area (dividends/distributions) it would be logical to assume that overvaluation exists.One final clarifying point, our F.A.S.T. Graphs™ were originally programmed to provide and calculate estimates based on consensus numbers received from either FirstCall or Zacks. Since analysts do not normally provide forecasts on Royalty Trusts, no logical number could be applied to future distributions per share. Therefore, we have stopped each F.A.S.T. Graph™ at year-end 2009 which represents the last calendar year of actual numbers. Since calendar year 2010 is not complete, we have left it out, even though some distributions have already been paid and received. **San Juan Basin Royalty Trust ([SJT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SJT&selected=SJT)) )****SJT 18yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-12893399509499-Chuck-Carnevale_origin.png)**SJT 18yr. performance results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933997337901-Chuck-Carnevale_origin.png)**Cross Timbers Royalty Trust ([CRT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CRT&selected=CRT)) )****CRT 18yr. Earnings and Price Correlated F.A.S.T. Graph™**** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933999549022-Chuck-Carnevale_origin.png)****CRT 18yr. Performance Results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128934002254874-Chuck-Carnevale_origin.png)**Sabine Royalty Trust ([SBR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SBR&selected=SBR)) )****SBR 18yr. Earnings and Price Correlated F.A.S.T. Graph™**** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128934004437447-Chuck-Carnevale_origin.png)****SBR 18yr. Performance Results**** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128934006512699-Chuck-Carnevale_origin.png)**As you can see from the performance charts on the three examples above, Royalty Trusts can be very rewarding investments for their shareholders. Long-term owners of the above trusts received cash distributions that were multiples of their original investment. Furthermore, if the reserves are adequate, the valuation of the trust shares can provide capital appreciation. On the other hand, the two examples of terminating trusts illustrate the pitfalls that investors can face with this asset class. **Tax Considerations** Similar to the Master Limited Partnerships (([MLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MLP&selected=MLP)) )), Royalty Trusts provide tax advantages and complexities. Consequently, Royalty Trusts may not be appropriate investments to hold in retirement plans. This is not to say that they can't be, it merely means that many of the tax advantages offered by Royalty Trusts would be lost if held in retirement plans. If not held in a retirement plan, then additional tax filings and schedules may be required. Also, certain state filings in the states that the Royalty Trust generates its royalties from may also apply. Therefore, consulting with a tax expert is highly suggested before investing in these unconventional equities. **Conclusions** With the appetite for yield at a heightened level many investors are searching for alternatives to traditional income-producing asset classes. Historically, investors have been attracted to Royalty Trusts because of their exceptionally high yields.However, since the price of oil and gas has fallen in recent years, the often double-digit yields historically associated with Royalty Trusts have mostly fallen into the single-digit category. Nevertheless, compared to other asset classes, they remain high by today's standards.Forecasting future distributions and values for Royalty Trusts is rather straightforward. The researcher has to forecast future prices of the underlying asset class and calculate the estimated recoverable reserves that the trust still holds. Multiply future estimated prices, times the estimate of reserves should provide a reasonable estimate of future value.Maybe this task is straightforward, but it's certainly not easy. Therefore "caveat emptor" applies. If you think oil and gas prices will rise from here you might want to take a closer look at Royalty Trusts. Hopefully, this article has provided an intelligent framework from which to execute a rational analysis. Our next article will look at real estate investment trusts or REITs. **Disclosure:** No positions at the time of writing.The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.See also [Profit From Uranium](http://seekingalpha.com/article/236113-profit-from-uranium?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 4.5081
Stock Price 2 days before: 4.34371
Stock Price 1 day before: 4.49581
Stock Price at release: 4.51653
Risk-Free Rate at release: 0.0012
| 4.05678 |
Symbol: SBR
Security: Sabine Royalty Trust
Related Stocks/Topics: PBT|Markets|SJT|TRU|CRT|MLP
Title: Would High Yield Royalty Trusts Deplete a Retirement Portfolio?
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-11-10 12:57:00
Article: ** [Chuck Carnevale](http://edmpinc.org/) submits:**As our population ages, the quest for income to fund retirement has never been greater. With interest rates at or near all-time lows, the traditional fixed income option does not provide enough yield to meet the needs of most people desirous of living off their portfolio income. Consequently, investors are compelled to search out alternative options.Royalty Trusts are an option that on the surface offers enticing yields. However, closer scrutiny may tell a very different story. Therefore, the purpose of this article, to rephrase a famous Waylon Jennings song lyric, is to enlighten investors so that they are not looking for yield in all the wrong places. In our previous article in this series we covered Master Limited Partnerships (MLPs) that primarily invest in the energy sector. Investing in energy assets is one thing that Royalty Trusts have in common with Master Limited Partnerships (MLPs). But Royalty Trusts are really not operating businesses; instead they are financing vehicles. Therefore, Royalty Trusts are typically run by banks.Although they trade like stocks, they have no management and no employees. Specific energy assets, which typically might be oil, coal and or natural gas are placed into the trust.Even though the Royalty Trusts we will cover in this article trade on the New York Stock Exchange, technically they are not stocks; instead, they are investment trusts. They buy the right to receive royalties on the production and sale of natural resource assets and then pass on the profits to the trust unit holders (shareholders).Just like any other trust, a Royalty Trust is a legal instrument that is created to hold assets for others. Therefore, a typical Royalty Trust is a legal entity that holds ownership of an asset (asset-backed security) and passes through the income to its investors known as unit holders.Consequently, in contrast to a Master Limited Partnership (([MLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MLP&selected=MLP)) )), the Royalty Trust can be thought of as a direct play on the underlying commodity the trust holds. Therefore, the distributions (dividends) can vary wildly as they are directly tied to the market prices of the underlying assets. A simple way for investors to think about their Royalty Trust holdings is that they are just like owning their own oil wells (assuming, of course, that the trust owns oil wells). However, it's also important that the investor realizes that they own a finite amount of the resource. Every time a barrel of oil is produced, there is one less barrel securitizing the trust assets. Of course, in the energy sector this is known as depletion. So long-term investors in Royalty Trusts need to understand that once all the oil is produced, the asset is gone, and so is the value of their holding and the dividends.Even though the typical Royalty Trust owns a finite amount of the underlying natural resource, they are often designed to produce income for periods of up to 10, 20 or even 30 years. Also, since the trust is designed to essentially pay out all of its income to shareholders, the distributions can be very substantial. Over time, the unit holder might receive multiples of cash distributions over and above their original investment. To a great extent, this will depend on the price performance of the underlying assets.During times of rising prices, trust unit holders can expect high and rising yields. Of course, the opposite is also true. Consequently, many Royalty Trusts have seen their distribution yields fall with energy prices over the last few years. **Yields Tied to Commodity Prices** The following graphs reflect the price of oil and natural gas since November of 2005. With oil peaking in early 2007 and natural gas prices peaking in the fall of 2007 there was a direct effect on the yields of Royalty Trusts that invested in oil and gas.click to enlarge images** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933969203068-Chuck-Carnevale_origin.png)**The following F.A.S.T. Graph™ on the Permian Basin Royalty Trust ([PBT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PBT&selected=PBT)) ) plots the cash distributions (dividends) for this Royalty Trust since calendar year 2005. Note how closely the dividends (blue shaded area) correlated to the price of oil in the above crude oil price graph. **PBT 6yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933973820045-Chuck-Carnevale_origin.png) The following F.A.S.T. Graph™ on the Hugoton Royalty Trust ([HGT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HGT&selected=HGT)) ), which predominately invests in gas producing properties, offers a similar correlation of its dividend (blue shaded area) to the price of natural gas as seen in the above natural gas price graph. **HGT 6yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933976112965-Chuck-Carnevale_origin.png) The primary points of the above graphic presentations were to illustrate the direct relationship between the cash distributions that a Royalty Trust will pay to trust holders and the price of the underlying asset. The distribution rate (dividends) of both trusts rose and fell in close to direct proportion to the rise and fall of the prices of each respective trust's underlying asset base. At the bottom of each F.A.S.T. Graph™ you can see the dividend rate, and just above it the rate of change from one year to the next (Chg/Yr). **Depleting Assets-The Risks** In addition to the risk of volatile yields, depletion is another potential negative that Royalty Trust unit holders face. Although wide swings in commodity prices and/or production levels can create very inconsistent distribution levels, these same factors can also cause significant changes in the current value of a Royalty Trust. Later in this article we will present examples of Royalty Trusts that richly rewarded their unit holders over intermediate to long periods of time.However, first we will review Torch Energy Royalty Trust ([TRU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TRU&selected=TRU)) ) which was formed effective October 1, 1993 and holds net profit interests in oil and gas properties in the Chalkley Field in Louisiana and the Robinson Bend Field in Alabama. This is a trust that has recently announced that it would be terminated and is currently in the windup and liquidation process.When looked at through the lens of our F.A.S.T. Graphs™ a couple of things become very clear. First of all, the risk of depleting assets can be vividly seen in graphic form. Next, a review of the performance F.A.S.T. Graph™ shows that the trust did not provide returns that unit holders may have expected when they first invested. **TRU 17yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933979441407-Chuck-Carnevale_origin.png)**TRU 17yr. Performance Results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-12893398175825-Chuck-Carnevale_origin.png) From the F.A.S.T. Graphs™ above it is clear that the Torch Energy Royalty Trust ([TRU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TRU&selected=TRU)) ) saw its share price decline consistently from day one, and so did its dividends (distributions per unit). It would be hard to argue that unit holders of the Torch Energy Royalty Trust ([TRU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TRU&selected=TRU)) ) were adequately compensated for the risk they took.Below are two excerpts from their 2009 annual report that illustrate the risk of depletion. The first speaks to the issue of depletion. Especially note the language that discusses how a portion of each distribution should be considered a return of capital.This second excerpt in chart form from their 2009 annual report shows how both the estimated reserves of oil and natural gas have been steadily declining (this excerpt only covers the period 2007 to 2009). **Williams Coal Seam Royalty Trust ([WTU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WTU&selected=WTU)) )** Williams Coal Seam Royalty Trust is another example of a trust terminating due to depletion. On February 5, 2010, they announced:On November 5, 2010 they announced a liquidation distribution of approximately $2.38 payable November 29, 2010. This information is not included in the F.A.S.T. Graph™ below. However, as you can see by the performance up through 2009, this Royalty Trust is another example that did not adequately reward shareholders for the risk they took. **WTU 17yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933989497874-Chuck-Carnevale_origin.png)**WTU 17yr. Performance Results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933991790021-Chuck-Carnevale_origin.png)**Three Prominent Royalty Trusts** The next section of this article will look at three prominent Royalty Trusts through the lens of our F.A.S.T. Graph™ research tool. We will review how they have rewarded their investors since they were formed in the early 1990s based on both price and dividends (distributions per unit). We will look at them in order of worst to best performance. We hope that this will provide the reader with a much more learned perspective on the advantages and disadvantages of investing in Royalty Trusts.However, a few words about our F.A.S.T. Graph™ tool are in order. Our F.A.S.T. Graph™ tool was designed and programmed to provide essential "fundamentals at a glance" and corresponding performance results on operating companies. Like all computer technology, a research tool is incapable of thinking for itself. Therefore, it's up to the user to apply their intelligence in order to properly interpret the information presented. Since Royalty Trusts are not operating businesses in the traditional sense, our F.A.S.T. Graph™ tool requires user interpretations when examining hybrids like Royalty Trusts. However, this does not mean that our F.A.S.T. Graph™ tool is without value when analyzing Royalty Trusts.Since Royalty Trusts are essentially required to pass through the majority of their royalty income to their unit holders, their distributions per unit can be looked at as the equivalent of earnings-per-share. Therefore, we have drawn the F.A.S.T. Graphs™ on these three companies utilizing an appropriate multiple of cash distributions in lieu of earnings-per-share.To the right of each graph you will see either the orange letters GDF (Graham Dodd Formula) or the orange letters GDF -EDMP (Graham Dodd Formula modified EDMP version) followed by a number that reflects the appropriate multiple applied to distributions. We then overlay monthly closing stock prices to the light blue shaded area or dividends.Not only will you find that stock prices are closely correlated to the dividend (cash distributions) of a Royalty Trust, you also find them to be a good proxy for fair value. In other words, if the price is above the blue shaded area (dividends/distributions) it would be logical to assume that overvaluation exists.One final clarifying point, our F.A.S.T. Graphs™ were originally programmed to provide and calculate estimates based on consensus numbers received from either FirstCall or Zacks. Since analysts do not normally provide forecasts on Royalty Trusts, no logical number could be applied to future distributions per share. Therefore, we have stopped each F.A.S.T. Graph™ at year-end 2009 which represents the last calendar year of actual numbers. Since calendar year 2010 is not complete, we have left it out, even though some distributions have already been paid and received. **San Juan Basin Royalty Trust ([SJT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SJT&selected=SJT)) )****SJT 18yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-12893399509499-Chuck-Carnevale_origin.png)**SJT 18yr. performance results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933997337901-Chuck-Carnevale_origin.png)**Cross Timbers Royalty Trust ([CRT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CRT&selected=CRT)) )****CRT 18yr. Earnings and Price Correlated F.A.S.T. Graph™**** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933999549022-Chuck-Carnevale_origin.png)****CRT 18yr. Performance Results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128934002254874-Chuck-Carnevale_origin.png)**Sabine Royalty Trust ([SBR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SBR&selected=SBR)) )****SBR 18yr. Earnings and Price Correlated F.A.S.T. Graph™**** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128934004437447-Chuck-Carnevale_origin.png)****SBR 18yr. Performance Results**** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128934006512699-Chuck-Carnevale_origin.png)**As you can see from the performance charts on the three examples above, Royalty Trusts can be very rewarding investments for their shareholders. Long-term owners of the above trusts received cash distributions that were multiples of their original investment. Furthermore, if the reserves are adequate, the valuation of the trust shares can provide capital appreciation. On the other hand, the two examples of terminating trusts illustrate the pitfalls that investors can face with this asset class. **Tax Considerations** Similar to the Master Limited Partnerships (([MLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MLP&selected=MLP)) )), Royalty Trusts provide tax advantages and complexities. Consequently, Royalty Trusts may not be appropriate investments to hold in retirement plans. This is not to say that they can't be, it merely means that many of the tax advantages offered by Royalty Trusts would be lost if held in retirement plans. If not held in a retirement plan, then additional tax filings and schedules may be required. Also, certain state filings in the states that the Royalty Trust generates its royalties from may also apply. Therefore, consulting with a tax expert is highly suggested before investing in these unconventional equities. **Conclusions** With the appetite for yield at a heightened level many investors are searching for alternatives to traditional income-producing asset classes. Historically, investors have been attracted to Royalty Trusts because of their exceptionally high yields.However, since the price of oil and gas has fallen in recent years, the often double-digit yields historically associated with Royalty Trusts have mostly fallen into the single-digit category. Nevertheless, compared to other asset classes, they remain high by today's standards.Forecasting future distributions and values for Royalty Trusts is rather straightforward. The researcher has to forecast future prices of the underlying asset class and calculate the estimated recoverable reserves that the trust still holds. Multiply future estimated prices, times the estimate of reserves should provide a reasonable estimate of future value.Maybe this task is straightforward, but it's certainly not easy. Therefore "caveat emptor" applies. If you think oil and gas prices will rise from here you might want to take a closer look at Royalty Trusts. Hopefully, this article has provided an intelligent framework from which to execute a rational analysis. Our next article will look at real estate investment trusts or REITs. **Disclosure:** No positions at the time of writing.The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.See also [Profit From Uranium](http://seekingalpha.com/article/236113-profit-from-uranium?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 58.0661
Stock Price 2 days before: 58.4479
Stock Price 1 day before: 58.9952
Stock Price at release: 58.643
Risk-Free Rate at release: 0.0012
| 58.115 |
Symbol: PBT
Security: Permian Basin Royalty Trust
Related Stocks/Topics: Markets|SBR|SJT|TRU|CRT|MLP
Title: Would High Yield Royalty Trusts Deplete a Retirement Portfolio?
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-11-10 12:57:00
Article: ** [Chuck Carnevale](http://edmpinc.org/) submits:**As our population ages, the quest for income to fund retirement has never been greater. With interest rates at or near all-time lows, the traditional fixed income option does not provide enough yield to meet the needs of most people desirous of living off their portfolio income. Consequently, investors are compelled to search out alternative options.Royalty Trusts are an option that on the surface offers enticing yields. However, closer scrutiny may tell a very different story. Therefore, the purpose of this article, to rephrase a famous Waylon Jennings song lyric, is to enlighten investors so that they are not looking for yield in all the wrong places. In our previous article in this series we covered Master Limited Partnerships (MLPs) that primarily invest in the energy sector. Investing in energy assets is one thing that Royalty Trusts have in common with Master Limited Partnerships (MLPs). But Royalty Trusts are really not operating businesses; instead they are financing vehicles. Therefore, Royalty Trusts are typically run by banks.Although they trade like stocks, they have no management and no employees. Specific energy assets, which typically might be oil, coal and or natural gas are placed into the trust.Even though the Royalty Trusts we will cover in this article trade on the New York Stock Exchange, technically they are not stocks; instead, they are investment trusts. They buy the right to receive royalties on the production and sale of natural resource assets and then pass on the profits to the trust unit holders (shareholders).Just like any other trust, a Royalty Trust is a legal instrument that is created to hold assets for others. Therefore, a typical Royalty Trust is a legal entity that holds ownership of an asset (asset-backed security) and passes through the income to its investors known as unit holders.Consequently, in contrast to a Master Limited Partnership (([MLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MLP&selected=MLP)) )), the Royalty Trust can be thought of as a direct play on the underlying commodity the trust holds. Therefore, the distributions (dividends) can vary wildly as they are directly tied to the market prices of the underlying assets. A simple way for investors to think about their Royalty Trust holdings is that they are just like owning their own oil wells (assuming, of course, that the trust owns oil wells). However, it's also important that the investor realizes that they own a finite amount of the resource. Every time a barrel of oil is produced, there is one less barrel securitizing the trust assets. Of course, in the energy sector this is known as depletion. So long-term investors in Royalty Trusts need to understand that once all the oil is produced, the asset is gone, and so is the value of their holding and the dividends.Even though the typical Royalty Trust owns a finite amount of the underlying natural resource, they are often designed to produce income for periods of up to 10, 20 or even 30 years. Also, since the trust is designed to essentially pay out all of its income to shareholders, the distributions can be very substantial. Over time, the unit holder might receive multiples of cash distributions over and above their original investment. To a great extent, this will depend on the price performance of the underlying assets.During times of rising prices, trust unit holders can expect high and rising yields. Of course, the opposite is also true. Consequently, many Royalty Trusts have seen their distribution yields fall with energy prices over the last few years. **Yields Tied to Commodity Prices** The following graphs reflect the price of oil and natural gas since November of 2005. With oil peaking in early 2007 and natural gas prices peaking in the fall of 2007 there was a direct effect on the yields of Royalty Trusts that invested in oil and gas.click to enlarge images** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933969203068-Chuck-Carnevale_origin.png)**The following F.A.S.T. Graph™ on the Permian Basin Royalty Trust ([PBT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PBT&selected=PBT)) ) plots the cash distributions (dividends) for this Royalty Trust since calendar year 2005. Note how closely the dividends (blue shaded area) correlated to the price of oil in the above crude oil price graph. **PBT 6yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933973820045-Chuck-Carnevale_origin.png) The following F.A.S.T. Graph™ on the Hugoton Royalty Trust ([HGT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HGT&selected=HGT)) ), which predominately invests in gas producing properties, offers a similar correlation of its dividend (blue shaded area) to the price of natural gas as seen in the above natural gas price graph. **HGT 6yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933976112965-Chuck-Carnevale_origin.png) The primary points of the above graphic presentations were to illustrate the direct relationship between the cash distributions that a Royalty Trust will pay to trust holders and the price of the underlying asset. The distribution rate (dividends) of both trusts rose and fell in close to direct proportion to the rise and fall of the prices of each respective trust's underlying asset base. At the bottom of each F.A.S.T. Graph™ you can see the dividend rate, and just above it the rate of change from one year to the next (Chg/Yr). **Depleting Assets-The Risks** In addition to the risk of volatile yields, depletion is another potential negative that Royalty Trust unit holders face. Although wide swings in commodity prices and/or production levels can create very inconsistent distribution levels, these same factors can also cause significant changes in the current value of a Royalty Trust. Later in this article we will present examples of Royalty Trusts that richly rewarded their unit holders over intermediate to long periods of time.However, first we will review Torch Energy Royalty Trust ([TRU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TRU&selected=TRU)) ) which was formed effective October 1, 1993 and holds net profit interests in oil and gas properties in the Chalkley Field in Louisiana and the Robinson Bend Field in Alabama. This is a trust that has recently announced that it would be terminated and is currently in the windup and liquidation process.When looked at through the lens of our F.A.S.T. Graphs™ a couple of things become very clear. First of all, the risk of depleting assets can be vividly seen in graphic form. Next, a review of the performance F.A.S.T. Graph™ shows that the trust did not provide returns that unit holders may have expected when they first invested. **TRU 17yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933979441407-Chuck-Carnevale_origin.png)**TRU 17yr. Performance Results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-12893398175825-Chuck-Carnevale_origin.png) From the F.A.S.T. Graphs™ above it is clear that the Torch Energy Royalty Trust ([TRU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TRU&selected=TRU)) ) saw its share price decline consistently from day one, and so did its dividends (distributions per unit). It would be hard to argue that unit holders of the Torch Energy Royalty Trust ([TRU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TRU&selected=TRU)) ) were adequately compensated for the risk they took.Below are two excerpts from their 2009 annual report that illustrate the risk of depletion. The first speaks to the issue of depletion. Especially note the language that discusses how a portion of each distribution should be considered a return of capital.This second excerpt in chart form from their 2009 annual report shows how both the estimated reserves of oil and natural gas have been steadily declining (this excerpt only covers the period 2007 to 2009). **Williams Coal Seam Royalty Trust ([WTU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WTU&selected=WTU)) )** Williams Coal Seam Royalty Trust is another example of a trust terminating due to depletion. On February 5, 2010, they announced:On November 5, 2010 they announced a liquidation distribution of approximately $2.38 payable November 29, 2010. This information is not included in the F.A.S.T. Graph™ below. However, as you can see by the performance up through 2009, this Royalty Trust is another example that did not adequately reward shareholders for the risk they took. **WTU 17yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933989497874-Chuck-Carnevale_origin.png)**WTU 17yr. Performance Results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933991790021-Chuck-Carnevale_origin.png)**Three Prominent Royalty Trusts** The next section of this article will look at three prominent Royalty Trusts through the lens of our F.A.S.T. Graph™ research tool. We will review how they have rewarded their investors since they were formed in the early 1990s based on both price and dividends (distributions per unit). We will look at them in order of worst to best performance. We hope that this will provide the reader with a much more learned perspective on the advantages and disadvantages of investing in Royalty Trusts.However, a few words about our F.A.S.T. Graph™ tool are in order. Our F.A.S.T. Graph™ tool was designed and programmed to provide essential "fundamentals at a glance" and corresponding performance results on operating companies. Like all computer technology, a research tool is incapable of thinking for itself. Therefore, it's up to the user to apply their intelligence in order to properly interpret the information presented. Since Royalty Trusts are not operating businesses in the traditional sense, our F.A.S.T. Graph™ tool requires user interpretations when examining hybrids like Royalty Trusts. However, this does not mean that our F.A.S.T. Graph™ tool is without value when analyzing Royalty Trusts.Since Royalty Trusts are essentially required to pass through the majority of their royalty income to their unit holders, their distributions per unit can be looked at as the equivalent of earnings-per-share. Therefore, we have drawn the F.A.S.T. Graphs™ on these three companies utilizing an appropriate multiple of cash distributions in lieu of earnings-per-share.To the right of each graph you will see either the orange letters GDF (Graham Dodd Formula) or the orange letters GDF -EDMP (Graham Dodd Formula modified EDMP version) followed by a number that reflects the appropriate multiple applied to distributions. We then overlay monthly closing stock prices to the light blue shaded area or dividends.Not only will you find that stock prices are closely correlated to the dividend (cash distributions) of a Royalty Trust, you also find them to be a good proxy for fair value. In other words, if the price is above the blue shaded area (dividends/distributions) it would be logical to assume that overvaluation exists.One final clarifying point, our F.A.S.T. Graphs™ were originally programmed to provide and calculate estimates based on consensus numbers received from either FirstCall or Zacks. Since analysts do not normally provide forecasts on Royalty Trusts, no logical number could be applied to future distributions per share. Therefore, we have stopped each F.A.S.T. Graph™ at year-end 2009 which represents the last calendar year of actual numbers. Since calendar year 2010 is not complete, we have left it out, even though some distributions have already been paid and received. **San Juan Basin Royalty Trust ([SJT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SJT&selected=SJT)) )****SJT 18yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-12893399509499-Chuck-Carnevale_origin.png)**SJT 18yr. performance results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933997337901-Chuck-Carnevale_origin.png)**Cross Timbers Royalty Trust ([CRT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CRT&selected=CRT)) )****CRT 18yr. Earnings and Price Correlated F.A.S.T. Graph™**** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933999549022-Chuck-Carnevale_origin.png)****CRT 18yr. Performance Results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128934002254874-Chuck-Carnevale_origin.png)**Sabine Royalty Trust ([SBR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SBR&selected=SBR)) )****SBR 18yr. Earnings and Price Correlated F.A.S.T. Graph™**** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128934004437447-Chuck-Carnevale_origin.png)****SBR 18yr. Performance Results**** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128934006512699-Chuck-Carnevale_origin.png)**As you can see from the performance charts on the three examples above, Royalty Trusts can be very rewarding investments for their shareholders. Long-term owners of the above trusts received cash distributions that were multiples of their original investment. Furthermore, if the reserves are adequate, the valuation of the trust shares can provide capital appreciation. On the other hand, the two examples of terminating trusts illustrate the pitfalls that investors can face with this asset class. **Tax Considerations** Similar to the Master Limited Partnerships (([MLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MLP&selected=MLP)) )), Royalty Trusts provide tax advantages and complexities. Consequently, Royalty Trusts may not be appropriate investments to hold in retirement plans. This is not to say that they can't be, it merely means that many of the tax advantages offered by Royalty Trusts would be lost if held in retirement plans. If not held in a retirement plan, then additional tax filings and schedules may be required. Also, certain state filings in the states that the Royalty Trust generates its royalties from may also apply. Therefore, consulting with a tax expert is highly suggested before investing in these unconventional equities. **Conclusions** With the appetite for yield at a heightened level many investors are searching for alternatives to traditional income-producing asset classes. Historically, investors have been attracted to Royalty Trusts because of their exceptionally high yields.However, since the price of oil and gas has fallen in recent years, the often double-digit yields historically associated with Royalty Trusts have mostly fallen into the single-digit category. Nevertheless, compared to other asset classes, they remain high by today's standards.Forecasting future distributions and values for Royalty Trusts is rather straightforward. The researcher has to forecast future prices of the underlying asset class and calculate the estimated recoverable reserves that the trust still holds. Multiply future estimated prices, times the estimate of reserves should provide a reasonable estimate of future value.Maybe this task is straightforward, but it's certainly not easy. Therefore "caveat emptor" applies. If you think oil and gas prices will rise from here you might want to take a closer look at Royalty Trusts. Hopefully, this article has provided an intelligent framework from which to execute a rational analysis. Our next article will look at real estate investment trusts or REITs. **Disclosure:** No positions at the time of writing.The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.See also [Profit From Uranium](http://seekingalpha.com/article/236113-profit-from-uranium?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 22.6205
Stock Price 2 days before: 22.9314
Stock Price 1 day before: 23.5686
Stock Price at release: 23.3993
Risk-Free Rate at release: 0.0012
| 22.4438 |
Symbol: MLP
Security: Maui Land & Pineapple Company, Inc.
Related Stocks/Topics: TRU|Markets|PBT|SJT
Title: High Yield Royalty Trusts: Enticing, But Not Necessarily for Retirement Portfolios
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-11-10 12:57:00
Article: ** [Chuck Carnevale](http://edmpinc.org/) submits:**As our population ages, the quest for income to fund retirement has never been greater. With interest rates at or near all-time lows, the traditional fixed income option does not provide enough yield to meet the needs of most people desirous of living off their portfolio income. Consequently, investors are compelled to search out alternative options.Royalty Trusts are an option that on the surface offers enticing yields. However, closer scrutiny may tell a very different story. Therefore, the purpose of this article, to rephrase a famous Waylon Jennings song lyric, is to enlighten investors so that they are not looking for yield in all the wrong places. In our previous article in this series we covered Master Limited Partnerships (MLPs) that primarily invest in the energy sector. Investing in energy assets is one thing that Royalty Trusts have in common with Master Limited Partnerships (MLPs). But Royalty Trusts are really not operating businesses; instead they are financing vehicles. Therefore, Royalty Trusts are typically run by banks.Although they trade like stocks, they have no management and no employees. Specific energy assets, which typically might be oil, coal and or natural gas are placed into the trust.Even though the Royalty Trusts we will cover in this article trade on the New York Stock Exchange, technically they are not stocks; instead, they are investment trusts. They buy the right to receive royalties on the production and sale of natural resource assets and then pass on the profits to the trust unit holders (shareholders).Just like any other trust, a Royalty Trust is a legal instrument that is created to hold assets for others. Therefore, a typical Royalty Trust is a legal entity that holds ownership of an asset (asset-backed security) and passes through the income to its investors known as unit holders.Consequently, in contrast to a Master Limited Partnership (([MLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MLP&selected=MLP)) )), the Royalty Trust can be thought of as a direct play on the underlying commodity the trust holds. Therefore, the distributions (dividends) can vary wildly as they are directly tied to the market prices of the underlying assets. A simple way for investors to think about their Royalty Trust holdings is that they are just like owning their own oil wells (assuming, of course, that the trust owns oil wells). However, it's also important that the investor realizes that they own a finite amount of the resource. Every time a barrel of oil is produced, there is one less barrel securitizing the trust assets. Of course, in the energy sector this is known as depletion. So long-term investors in Royalty Trusts need to understand that once all the oil is produced, the asset is gone, and so is the value of their holding and the dividends.Even though the typical Royalty Trust owns a finite amount of the underlying natural resource, they are often designed to produce income for periods of up to 10, 20 or even 30 years. Also, since the trust is designed to essentially pay out all of its income to shareholders, the distributions can be very substantial. Over time, the unit holder might receive multiples of cash distributions over and above their original investment. To a great extent, this will depend on the price performance of the underlying assets.During times of rising prices, trust unit holders can expect high and rising yields. Of course, the opposite is also true. Consequently, many Royalty Trusts have seen their distribution yields fall with energy prices over the last few years. **Yields Tied to Commodity Prices** The following graphs reflect the price of oil and natural gas since November of 2005. With oil peaking in early 2007 and natural gas prices peaking in the fall of 2007 there was a direct effect on the yields of Royalty Trusts that invested in oil and gas.click to enlarge images** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933969203068-Chuck-Carnevale_origin.png)**The following F.A.S.T. Graph™ on the Permian Basin Royalty Trust ([PBT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PBT&selected=PBT)) ) plots the cash distributions (dividends) for this Royalty Trust since calendar year 2005. Note how closely the dividends (blue shaded area) correlated to the price of oil in the above crude oil price graph. **PBT 6yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933973820045-Chuck-Carnevale_origin.png) The following F.A.S.T. Graph™ on the Hugoton Royalty Trust ([HGT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HGT&selected=HGT)) ), which predominately invests in gas producing properties, offers a similar correlation of its dividend (blue shaded area) to the price of natural gas as seen in the above natural gas price graph. **HGT 6yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933976112965-Chuck-Carnevale_origin.png) The primary points of the above graphic presentations were to illustrate the direct relationship between the cash distributions that a Royalty Trust will pay to trust holders and the price of the underlying asset. The distribution rate (dividends) of both trusts rose and fell in close to direct proportion to the rise and fall of the prices of each respective trust's underlying asset base. At the bottom of each F.A.S.T. Graph™ you can see the dividend rate, and just above it the rate of change from one year to the next (Chg/Yr). **Depleting Assets-The Risks** In addition to the risk of volatile yields, depletion is another potential negative that Royalty Trust unit holders face. Although wide swings in commodity prices and/or production levels can create very inconsistent distribution levels, these same factors can also cause significant changes in the current value of a Royalty Trust. Later in this article we will present examples of Royalty Trusts that richly rewarded their unit holders over intermediate to long periods of time.However, first we will review Torch Energy Royalty Trust ([TRU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TRU&selected=TRU)) ) which was formed effective October 1, 1993 and holds net profit interests in oil and gas properties in the Chalkley Field in Louisiana and the Robinson Bend Field in Alabama. This is a trust that has recently announced that it would be terminated and is currently in the windup and liquidation process.When looked at through the lens of our F.A.S.T. Graphs™ a couple of things become very clear. First of all, the risk of depleting assets can be vividly seen in graphic form. Next, a review of the performance F.A.S.T. Graph™ shows that the trust did not provide returns that unit holders may have expected when they first invested. **TRU 17yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933979441407-Chuck-Carnevale_origin.png)**TRU 17yr. Performance Results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-12893398175825-Chuck-Carnevale_origin.png) From the F.A.S.T. Graphs™ above it is clear that the Torch Energy Royalty Trust ([TRU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TRU&selected=TRU)) ) saw its share price decline consistently from day one, and so did its dividends (distributions per unit). It would be hard to argue that unit holders of the Torch Energy Royalty Trust ([TRU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TRU&selected=TRU)) ) were adequately compensated for the risk they took.Below are two excerpts from their 2009 annual report that illustrate the risk of depletion. The first speaks to the issue of depletion. Especially note the language that discusses how a portion of each distribution should be considered a return of capital.This second excerpt in chart form from their 2009 annual report shows how both the estimated reserves of oil and natural gas have been steadily declining (this excerpt only covers the period 2007 to 2009). **Williams Coal Seam Royalty Trust (WTU)** Williams Coal Seam Royalty Trust is another example of a trust terminating due to depletion. On February 5, 2010, they announced:On November 5, 2010 they announced a liquidation distribution of approximately $2.38 payable November 29, 2010. This information is not included in the F.A.S.T. Graph™ below. However, as you can see by the performance up through 2009, this Royalty Trust is another example that did not adequately reward shareholders for the risk they took. **WTU 17yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933989497874-Chuck-Carnevale_origin.png)**WTU 17yr. Performance Results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933991790021-Chuck-Carnevale_origin.png)**Three Prominent Royalty Trusts** The next section of this article will look at three prominent Royalty Trusts through the lens of our F.A.S.T. Graph™ research tool. We will review how they have rewarded their investors since they were formed in the early 1990s based on both price and dividends (distributions per unit). We will look at them in order of worst to best performance. We hope that this will provide the reader with a much more learned perspective on the advantages and disadvantages of investing in Royalty Trusts.However, a few words about our F.A.S.T. Graph™ tool are in order. Our F.A.S.T. Graph™ tool was designed and programmed to provide essential "fundamentals at a glance" and corresponding performance results on operating companies. Like all computer technology, a research tool is incapable of thinking for itself. Therefore, it's up to the user to apply their intelligence in order to properly interpret the information presented. Since Royalty Trusts are not operating businesses in the traditional sense, our F.A.S.T. Graph™ tool requires user interpretations when examining hybrids like Royalty Trusts. However, this does not mean that our F.A.S.T. Graph™ tool is without value when analyzing Royalty Trusts.Since Royalty Trusts are essentially required to pass through the majority of their royalty income to their unit holders, their distributions per unit can be looked at as the equivalent of earnings-per-share. Therefore, we have drawn the F.A.S.T. Graphs™ on these three companies utilizing an appropriate multiple of cash distributions in lieu of earnings-per-share.To the right of each graph you will see either the orange letters GDF (Graham Dodd Formula) or the orange letters GDF -EDMP (Graham Dodd Formula modified EDMP version) followed by a number that reflects the appropriate multiple applied to distributions. We then overlay monthly closing stock prices to the light blue shaded area or dividends.Not only will you find that stock prices are closely correlated to the dividend (cash distributions) of a Royalty Trust, you also find them to be a good proxy for fair value. In other words, if the price is above the blue shaded area (dividends/distributions) it would be logical to assume that overvaluation exists.One final clarifying point, our F.A.S.T. Graphs™ were originally programmed to provide and calculate estimates based on consensus numbers received from either FirstCall or Zacks. Since analysts do not normally provide forecasts on Royalty Trusts, no logical number could be applied to future distributions per share. Therefore, we have stopped each F.A.S.T. Graph™ at year-end 2009 which represents the last calendar year of actual numbers. Since calendar year 2010 is not complete, we have left it out, even though some distributions have already been paid and received. **San Juan Basin Royalty Trust ([SJT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SJT&selected=SJT)) )****SJT 18yr. Earnings and Price Correlated F.A.S.T. Graph™** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-12893399509499-Chuck-Carnevale_origin.png)**SJT 18yr. performance results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933997337901-Chuck-Carnevale_origin.png)**Cross Timbers Royalty Trust (CRT)****CRT 18yr. Earnings and Price Correlated F.A.S.T. Graph™**** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128933999549022-Chuck-Carnevale_origin.png)****CRT 18yr. Performance Results** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128934002254874-Chuck-Carnevale_origin.png)**Sabine Royalty Trust (SBR)****SBR 18yr. Earnings and Price Correlated F.A.S.T. Graph™**** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128934004437447-Chuck-Carnevale_origin.png)****SBR 18yr. Performance Results**** [](http://static.seekingalpha.com/uploads/2010/11/9/426415-128934006512699-Chuck-Carnevale_origin.png)**As you can see from the performance charts on the three examples above, Royalty Trusts can be very rewarding investments for their shareholders. Long-term owners of the above trusts received cash distributions that were multiples of their original investment. Furthermore, if the reserves are adequate, the valuation of the trust shares can provide capital appreciation. On the other hand, the two examples of terminating trusts illustrate the pitfalls that investors can face with this asset class. **Tax Considerations** Similar to the Master Limited Partnerships (([MLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MLP&selected=MLP)) )), Royalty Trusts provide tax advantages and complexities. Consequently, Royalty Trusts may not be appropriate investments to hold in retirement plans. This is not to say that they can't be, it merely means that many of the tax advantages offered by Royalty Trusts would be lost if held in retirement plans. If not held in a retirement plan, then additional tax filings and schedules may be required. Also, certain state filings in the states that the Royalty Trust generates its royalties from may also apply. Therefore, consulting with a tax expert is highly suggested before investing in these unconventional equities. **Conclusions** With the appetite for yield at a heightened level many investors are searching for alternatives to traditional income-producing asset classes. Historically, investors have been attracted to Royalty Trusts because of their exceptionally high yields.However, since the price of oil and gas has fallen in recent years, the often double-digit yields historically associated with Royalty Trusts have mostly fallen into the single-digit category. Nevertheless, compared to other asset classes, they remain high by today's standards.Forecasting future distributions and values for Royalty Trusts is rather straightforward. The researcher has to forecast future prices of the underlying asset class and calculate the estimated recoverable reserves that the trust still holds. Multiply future estimated prices, times the estimate of reserves should provide a reasonable estimate of future value.Maybe this task is straightforward, but it's certainly not easy. Therefore "caveat emptor" applies. If you think oil and gas prices will rise from here you might want to take a closer look at Royalty Trusts. Hopefully, this article has provided an intelligent framework from which to execute a rational analysis. Our next article will look at real estate investment trusts or REITs. **Disclosure:** No positions at the time of writing.The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.See also [How China's Inflation Policy Will Help the Yuan / Dollar Exchange Rate](http://seekingalpha.com/article/239007-how-china-s-inflation-policy-will-help-the-yuan-dollar-exchange-rate?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 4.5081
Stock Price 2 days before: 4.34371
Stock Price 1 day before: 4.49581
Stock Price at release: 4.51653
Risk-Free Rate at release: 0.0012
| 4.05678 |
Symbol: RDWR
Security: Radware Ltd.
Related Stocks/Topics: Markets|CSCO
Title: Cisco's (Nasdaq: CSCO) Huge Miss Bodes Well For This Stock
Type: News
Publication: Wyatt Investment Research
Publication Author: Unknown
Date: 2010-11-11 05:05:00
Article: What do you do when your company's earnings missed analyst expectations by 15 percent? You get your merger and acquisition team together and start shopping.That's sure to be the case right now at **Cisco Systems (Nasdaq: CSCO)** after the company reported earnings of just $0.34 per share in the first quarter. Analysts had expected $0.40 per share, and while the company's 13 percent earnings growth (it earned $0.30 per share in the comparable quarter in 2009) is nothing to sneeze at, guidance of only 3 to 4 percent revenue growth fell well short of expectations of 13 percent. Taken together, a weaker than expected quarter and slower than anticipated revenue growth moving forward has the stock down over 15 percent this morning. ***Cisco has often turned to acquisitions to spur growth, and I have to believe the company is shopping right now. CEO John Chambers stated that the company hit a couple of 'air pockets' in a phone interview with MarketWatch.To fill those air pockets, the company will have to look to niche markets that it doesn't have a strong presence in. It's typically easier, and cheaper, to buy a company that already is a leader in a niche market than to try to grow a presence organically." This does raise the concern that the networking market is slowing down ," said Kaufman Bros. analyst Shaw Wu in MarkeWatch's article. " But it seems that a lot of it is company-specific ."***One area where growth is anything but slow is internet security and bandwidth management. Companies that can accommodate increasing demand for streaming video and other bandwidth intensive technologies are winning contracts around the world. Check out the performance of **Radware (Nasdaq: RDWR)** and **Riverbed Technology (Nasdaq: RVBD)** as compared to Cisco since the beginning of the year. Both of these stocks are up over 100 percent versus Cisco's zero percent return. [Image](file:///C:/DOCUME~1/laundont/LOCALS~1/Temp/msohtmlclip1/01/clip_image002.jpg) These stocks are rallying because they are growing in their respective niche markets. They're also being helped along by the ever present takeover potential in a market where technology companies like Cisco are flush with cash.Cisco just reported that it has $38.9 billion in cash and equivalents at the end of the first quarter, a slight dip from the end of the previous quarter because it's buying back its own stock.What's it going to do with all this cash? [Bloomberg reported that Chambers](http://www.businessweek.com/news/2010-09-14/cisco-systems-to-offer-a-dividend-this-fiscal-year.html) has voiced his intent to pay a dividend in 2011 ". ..once the economy and the company's stock strengthens ". Well, with the company issuing a somewhat bearish outlook and the stock getting hammered, I don't know that the dividend is that much of a sure thing anymore. ***I've been pounding the table that small cap investors should be adding exposure to technology stocks for a while. And I'm not the only one - although I'm sure the pundits will come out in droves now that Cisco's results are out. I recently read a Credit Suisse research report that dug into the Russell 2000 small cap index. The report gave an outlook by sector for 2010. Guess what Credit Suisse is saying about small cap technology stocks..." Within Tech, we remain wary of Semis with a preference for Software/Services and Communication Equipment...Our continued overweight on Technology is driven in part by our view that this sector may continue to benefit from increased mergers and acquisitions activity, based on high levels of conversations by public companies in the space about their desire to do deals, as well as high levels of cash to deploy and fairly clean balance sheets."***One of my favorite small cap stocks is a company that segments bandwidth so telecommunications companies can better manage resources. It's a pretty complex technology, and this company is a leader in the field.In fact, I brought this company to the attention of Small Cap Investor PRO readers in the beginning of August. We're already up over 60 percent on the position - but I think the stock has a long way to go. You can learn more about [rising technology company when you get a trial subscription here](https://www.smallcapinvestor.com/newsletters) .This particular company is a play on the future growth of smartphones, and the near certainty that service providers will segment bandwidth in order to design service plans tailored to customer behavior. What's more, this tiny company is certainly a potential takeout candidate and management has shown an ability to orchestrate acquisitions in the past.With Cisco's rough quarter, and feeble outlook, I expect that companies like this one are in the crosshairs. And even if it isn't, its strong growth is already rewarding shareholders. For small cap profits, I continue to recommend you increase exposure to growing small cap technology companies like this one.I had few responses to my question yesterday. Where is everyone? What is your favorite small cap technology stock? Throw your ides my way and I'll review them in a future issue. My address is: [[email protected]](mailto:[email protected]) .
Stock Price 4 days before: 33.8333
Stock Price 2 days before: 34.2318
Stock Price 1 day before: 34.1816
Stock Price at release: 33.6642
Risk-Free Rate at release: 0.00115
| 40.0504 |
Symbol: EXK
Security: Endeavour Silver Corp.
Related Stocks/Topics: Markets
Title: Bull looks to ride Endeavour rally
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-11-11 11:51:00
Article: Endeavour Silver is going ballistic, and one bull wants a piece of the action. [EXK](http://www.optionmonster.com/cms/commentary/images/exk111110.png) optionMONSTER's Heat Seeker tracking system detected the purchase of more than 3,200 December 5 calls for $1.35 to $1.40 against open interest of 427 contracts. The activity pushed total options volume in the obscure exploration company to 18 times greater than average. EXK is down 8.85 percent to $6.16 percent in morning trading but has more than doubled between late August and this week. The Canadian miner doesn't seem to have had any major news but has benefited from a big rally in silver, which is up 51 percent in the last three months--compared with a 17 percent move for gold.Now that EXK has had a modest pullback, today's call buyer is looking for its recent move to continue. Interestingly, the trader used in-the-money calls to reduce losses to time decay if the stock pauses at its current levels. That's because most of the premium results from so-called intrinsic value. (See our Education section) Calls outnumber puts in EXK by a bullish 131-1 ratio so far today, according to the Heat Seeker.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 6.00442
Stock Price 2 days before: 6.62434
Stock Price 1 day before: 6.59901
Stock Price at release: 6.18045
Risk-Free Rate at release: 0.00115
| 7.10441 |
Symbol: BZH
Security: Beazer Homes USA, Inc.
Related Stocks/Topics: DHI|Markets|TOL|PHM|MHO
Title: This Could be a Surprise Sector for Stocks Next Year
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-11-11 12:11:00
Article: There are so many reasons to dislike housing stocks. Foreclosures continue at an alarming rate, and with a rising tide of empty existing homes, who needs to buy a newly-built home? Yet while the gloomy headlines rule the day, the Philadelphia Housing SectorIndex (HGX), which was stuck in a tight trading range for the past three months, is suddenly on the march, rising nearly +8% since the middle of last week. The [index](http://investinganswers.com/term/index-971) actually spiked a day before last week's monthly jobs report, which Nathan Slaughter recently discussed. [Read why he thinks the U.S. will add two million jobs next year -- and [how you can profit](http://www.streetauthority.com/news/my-shocking-prediction-2011-and-2-ways-profit-457590) ]Rising employment is seen by many as a panacea for this long-suffering sector. Yet we've already seen a few false dawns already: The Phillyindex surged from 95 in late 2009 to 130 in April, only to fall back below 100 a few months later. Now that's it back just above 100, might we re-visit those April highs? And if so, what are the best stocks to play in a resurgent housing sector? **Another lost year for housing** It sure has been a tough six months for the major players: Shares of **PulteGroup (NYSE: [PHM](http://www.streetauthority.com/stocks/PHM) )** are off more than -40%, while **Beazer Homes (NYSE: [BZH](http://www.streetauthority.com/stocks/BZH) )** , **M/I Homes (NYSE: [MHO](http://www.streetauthority.com/stocks/MHO)** ), **Ryland Group (NYSE: [RYL](http://www.streetauthority.com/stocks/RYL) )** and **KB Home (NYSE: [KBH](http://www.streetauthority.com/stocks/KBH) )** all shed more than -25%. To be clear, few expect to see the housing market post a major upturn next year. Instead, industry bulls would like to see only modest improvements in hopes that the stage would be set for a more sustained in advance in 2012 and 2013.And there's no doubt that current sector share prices are very cheap in the context of such a possible rebound in 2012 or 2013. We don't need to see the white-hot conditions of 2005, 2006 and 2007 -- just a normal healthy housing market. The key would be tame interest rates. Current low [mortgage](http://investinganswers.com/term/mortgage-1608) rates, combined with currently low housing prices make home ownership an awfully compelling option -- if consumers are feeling more confident, and if interest rates stay low.If you believe that such a scenario will play out, here are two names to focus on... **Toll Brothers (NYSE: [TOL](http://www.streetauthority.com/stocks/TOL) )**This homebuilder may have started to turn the tide, thanks to its exposure to the higher end of the housing market. Toll delivered an unexpected profit in the quarter ended July, and though a seasonal slowdown is expected to lead to more red ink for the October and January (2011) quarters, analysts increasingly think that Toll can stay in the black after that as sales and profits start to steadily rebound.It will be some time before this or any other housing stock looks cheap on a price-to-earnings ([P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459)) ) basis, as industry as profits will be uninspiring until at least 2012 if not 2013. Instead, analysts measure these stocks in relation to [book value](http://investinganswers.com/term/book-value-1080) , and shares, which currently trade at around 1.2 times book value, are likely to rally up to 1.5 times book value according to analysts at UBS -- good for a +30% gain from current levels. That's just a near-term target. If and when the housing rebound is truly underway, shares have considerably more upside, but that may not come before 2012. **D.R. Horton (NYSE: [DHI](http://www.streetauthority.com/stocks/DHI) )**Investors have started to bid up shares of this homebuilder in anticipation of this Friday'searnings release. If the last quarter is any guide, D.R. Horton should deliver a rare bit of cheer in the sector. In the quarter that ended in June, the company announced a modest [uptick](http://investinganswers.com/term/uptick-781) in demand for homes in its medium-priced communities.D.R. Horton is surprisingly looking to build more houses "on spec," which means they are starting to build without a firm buyer in hand for each house. It may seem like a risky move, but the company has ample cash to both invest in growth while also pay down debt. The company has paid back $1 billion in debt in the past year.The decision to keep building has surely paid off, as the company is expected to report full year [earnings](http://investinganswers.com/term/earnings-1514) of $0.73 a share this Friday. (Most other homebuilders continue to shoulder losses). Profits may cool a bit in fiscal 2011, but analysts thinks D.R. Horton's earnings power could approach $2 a share in a few years once housing is back on the mend. [EPS](http://investinganswers.com/term/earnings-share-eps-1003) averaged $4 in the middle of the past decade, but investors would cheer a rebound to just half that level. If that happens, shares would trade up from a current $12 to around $20. **Action to Take -->** It seems counter-intuitive to seek out value in housing stocks when the sector is in such a deep slump. But sector shares have pulled back sharply in the past six months, creating fresh value, and would rotate back into favor if employment trends continue to strengthen on the heels of last Friday's jobs report. In truth, all housing stocks would gain in a housing recovery scenario, but Toll Brothers and D.R. Horton look to be best able to hold their own if 2011 and 2012 bring more of the same. [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. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
Stock Price 4 days before: 4.50122
Stock Price 2 days before: 4.61282
Stock Price 1 day before: 4.67423
Stock Price at release: 4.69747
Risk-Free Rate at release: 0.00115
| 4.84293 |
Symbol: SRDX
Security: Surmodics, Inc.
Related Stocks/Topics: MET|Markets|AIG|GLD|GOOG|USO|SLV|BEST|GDX|CSCO|NFLX|UNG|WMT
Title: Mid-Day Update: Stocks Still Sunk on Cisco; Investors Watching Developments at G20 Summit
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-11-11 12:36:00
Article: Here's where markets stand at mid-day:-NYSE down 38.97 (-0.5%) to 7,708.49-DJIA down 83.25 (-0.73%) to 11,273.79-S&P 500 down 7.57 (-0.62%) to 1,211.19-Nasdaq down 27.74 (-1.08%) to 2,550.87GLOBAL SENTIMENTHang Seng up 0.82%Nikkei up 0.31%FTSE down 0.03%MID-DAY NYSE INDEX WATCHNYSE Energy up 0.03% at 11,902.86NYSE Financial down 1.04% at 4,862.47NYSE Health Care down 0.39% at 6,433.90NYSE Arca Tech 100 down 1.07% at 1,037.60UPSIDE MOVERS(+) CXDC (+3.8%) beats Q3 estimates.(+) IR (+3.7%) to be added to S&P 500.(+) LVLT (+10.7%) inks video streaming deal with Netflix.(+) OPTC (+49.6%) sold to TKH Group.(+) DNDN (+5.8%) submits post-approval supplement for provenge BLA for manufacturing facility.(+) SI (+1.7%) hikes dividend, issues improved results.DOWNSIDE MOVERS(-) CSCO (-15.3%) issues sales warning.(-) FLEX (-2.2%), JBL (-7.0%) downgraded in wake of CSCO results. (-) AA (-0.6%) downgraded.(-) JBLU (-1.2%) downgraded.(-) YHOO (-1.4%) receives Neutral rating as Macquerie initiates coverage; GOOG also slips despite upbeat coverage.(-) CNAM (-12.6%) withdraws 2010 guidance due to more rolling blackouts.MARKET DIRECTIONStocks are solidly lower at mid-day as investors react to a disappointing outlook from Cisco Systems ([CSCO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CSCO&selected=CSCO)) ), renewed concerns over sovereign debt in Europe, which is pushing the dollar higher, and warning signs out of China about inflation.Investors are also eying the Group of 20 Summit in South Korea where world leaders are trying to develop plans to bolster a generally weaker global economy amid allegations of currency manipulation and widening trade gaps.The U.S. bond market and government offices are closed today for the Veterans Day holiday; no economic data are due. Yesterday, a disappointing report -- its outlook in particular -- from tech mainstay Cisco Systems, tipped stocks lower this morning. Cisco reported Q1 sales of $10.75 billion, just ahead of the analyst mean for $10.74 billion on Thomson Reuters. EPS were $0.42, two cents better than expectations. But the company expects Q2 revenue growth to increase 3% to 5% year-over-year. The Street is at 13% revenue growth. For 2011, the company expects revenue growth in the 9% to 12% range.Meanwhile, Google ([GOOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GOOG&selected=GOOG)) ) said it is not working on a social networking site to compete with Facebook, Reuters reported, citing a comment from a company executive. "We're not working on a social network platform that's just going to be another social network platform," said Hugo Barra, head of Google's mobile product development at the Monaco Media Forum. Google currently owns another social network called Orkut, which is popular in India and Brazil.Level 3 Communications ([LVLT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LVLT&selected=LVLT)) ) announced that it has been selected to serve as a primary content delivery network (CDN) provider for Netflix ([NFLX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NFLX&selected=NFLX)) ). It will support the company's streaming functionality and support storage for the entire Netflix library of content. As a result of the deal, Level 3 has accelerated plans to further invest in its CDN capacity. Level 3 will double its storage capacity and add 2.9 Terabits per second (Tbps) of globally available CDN capacity, which is in addition to the 1.65 Tbps that was deployed in the third quarter of 2010.Wal-Mart Stores Inc ([WMT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WMT&selected=WMT)) ) is down after the retailer announced it will waive shipping fees on 60,000 items in its online catalog for the holiday season. The company will also offer free return shipping as well until Dec. 20. Concern is growing that rival retailers will also be forced to make a similar move to lure cost-conscious consumers.MetLife ([MET](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MET&selected=MET)) ) says it plans to stop the sale of new long-term care coverage after citing "financial challenges" in its business, according to a Bloomberg report. MetLife is looking to focus on growth in Asia after it purchased a business from American International Group ([AIG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AIG&selected=AIG)) ) earlier this month for $16.2 billion, the report said. Activision Blizzard ([ATVI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ATVI&selected=ATVI)) ) said "Call of Duty: Black Ops"--it's latest installment of the "Call of Duty" game series--generated $360 million in sales in North America and the U.K in 24 hours, Bloomberg reported. The figure is a record for any entertainment property, the report said. Demand for the new game outstrips the previous record of $310 million from the previous version of the "Call of Duty" game, the report said.Baker Hughes ([BHI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BHI&selected=BHI)) ) shares are down after the company's chief financial officer said that while demand for oilfield services is growing outside of North America, sufficient capacity has prevented companies from raising prices, Reuters reported. Still Baker Hughes has watched its revenues and profits grow, largely due to increasing activity in North America, the report said.In recent earnings news:--SurModics Inc ([SRDX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SRDX&selected=SRDX)) ) is down after the drug delivery technology company turned swung to the red in the fourth quarter and offered a weak outlook for the current fiscal year.--Rosetta Stone Inc ([RST](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RST&selected=RST)) ) is down sharply after the language learning software group swung to the red in the third quarter as revenue fell.--Shiner International ([BEST](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BEST&selected=BEST)) ) is higher after reporting that Q3 sales rose 79.2% year-over-year to $15.5 million. It earned a nickel per share, up from a penny a year ago. It continues to project revenues of $53 million and net income of $0.17 per diluted share, for 2010. Also today, the Organization of Petroleum Exporting Countries bumped up its 2011 forecast for global oil demand by 1.2 million barrels a day to 86.95 million barrels next year, Bloomberg reported. That's 120,000 barrels a day more than last month's forecast.Commodities are modestly higher. December gold contracts are up $6, or 0.41%, to $1,405 an ounce while January crude contacts are up 0.10%, or $0.09, at $87.92 a barrel.In energy ETFs, the United States Oil Fund ([USO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=USO&selected=USO)) ) is down 0.32% to $37.92 and the United States Natural Gas fund ([UNG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UNG&selected=UNG)) ) is down 2.05% to $5.73.In precious metal ETFs, the SPDR Gold Trust ([GLD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GLD&selected=GLD)) ) is up 0.15% to $137.45. Market Vectors Gold Miners ([GDX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GDX&selected=GDX)) ) is down 0.16% to $61.21. iShares Silver Trust ([SLV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLV&selected=SLV)) ) is up 0.56% to $26.87. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
Stock Price 4 days before: 12.3926
Stock Price 2 days before: 12.4013
Stock Price 1 day before: 12.6808
Stock Price at release: 9.49755
Risk-Free Rate at release: 0.00115
| 10.32 |
Symbol: SRDX
Security: Surmodics, Inc.
Related Stocks/Topics: MET|Markets|AIG|GLD|UNG|GOOG|SLV|CSCO|BEST|WMT|USO|GDX|NFLX
Title: Stocks Solidly Lower at Mid-Day; Cisco Outlook, Global Economic Concerns Weigh
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-11-11 12:48:00
Article: Stocks are solidly lower at mid-day as investors react to a disappointing outlook from Cisco Systems ([CSCO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CSCO&selected=CSCO)) ), renewed concerns over sovereign debt in Europe, which is pushing the dollar higher, and warning signs out of China about inflation.Investors are also eying the Group of 20 Summit in South Korea where world leaders are trying to develop plans to bolster a generally weaker global economy amid allegations of currency manipulation and widening trade gaps. The U.S. bond market and government offices are closed today for the Veterans Day holiday; no economic data are due.Yesterday, a disappointing report -- its outlook in particular -- from tech mainstay Cisco Systems, tipped stocks lower this morning. Cisco reported Q1 sales of $10.75 billion, just ahead of the analyst mean for $10.74 billion on Thomson Reuters. EPS were $0.42, two cents better than expectations. But the company expects Q2 revenue growth to increase 3% to 5% year-over-year. The Street is at 13% revenue growth. For 2011, the company expects revenue growth in the 9% to 12% range.Meanwhile, Google ([GOOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GOOG&selected=GOOG)) ) said it is not working on a social networking site to compete with Facebook, Reuters reported, citing a comment from a company executive. "We're not working on a social network platform that's just going to be another social network platform," said Hugo Barra, head of Google's mobile product development at the Monaco Media Forum. Google currently owns another social network called Orkut, which is popular in India and Brazil.Level 3 Communications ([LVLT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LVLT&selected=LVLT)) ) announced that it has been selected to serve as a primary content delivery network (CDN) provider for Netflix ([NFLX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NFLX&selected=NFLX)) ). It will support the company's streaming functionality and support storage for the entire Netflix library of content. As a result of the deal, Level 3 has accelerated plans to further invest in its CDN capacity. Level 3 will double its storage capacity and add 2.9 Terabits per second (Tbps) of globally available CDN capacity, which is in addition to the 1.65 Tbps that was deployed in the third quarter of 2010.Wal-Mart Stores Inc ([WMT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WMT&selected=WMT)) ) is down after the retailer announced it will waive shipping fees on 60,000 items in its online catalog for the holiday season. The company will also offer free return shipping as well until Dec. 20. Concern is growing that rival retailers will also be forced to make a similar move to lure cost-conscious consumers. MetLife ([MET](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MET&selected=MET)) ) says it plans to stop the sale of new long-term care coverage after citing "financial challenges" in its business, according to a Bloomberg report. MetLife is looking to focus on growth in Asia after it purchased a business from American International Group ([AIG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AIG&selected=AIG)) ) earlier this month for $16.2 billion, the report said.Activision Blizzard ([ATVI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ATVI&selected=ATVI)) ) said "Call of Duty: Black Ops"--it's latest installment of the "Call of Duty" game series--generated $360 million in sales in North America and the U.K in 24 hours, Bloomberg reported. The figure is a record for any entertainment property, the report said. Demand for the new game outstrips the previous record of $310 million from the previous version of the "Call of Duty" game, the report said.Baker Hughes ([BHI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BHI&selected=BHI)) ) shares are down after the company's chief financial officer said that while demand for oilfield services is growing outside of North America, sufficient capacity has prevented companies from raising prices, Reuters reported. Still Baker Hughes has watched its revenues and profits grow, largely due to increasing activity in North America, the report said.In recent earnings news:--SurModics Inc ([SRDX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SRDX&selected=SRDX)) ) is down after the drug delivery technology company turned swung to the red in the fourth quarter and offered a weak outlook for the current fiscal year.--Rosetta Stone Inc ([RST](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RST&selected=RST)) ) is down sharply after the language learning software group swung to the red in the third quarter as revenue fell. --Shiner International ([BEST](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BEST&selected=BEST)) ) is higher after reporting that Q3 sales rose 79.2% year-over-year to $15.5 million. It earned a nickel per share, up from a penny a year ago. It continues to project revenues of $53 million and net income of $0.17 per diluted share, for 2010.Also today, the Organization of Petroleum Exporting Countries bumped up its 2011 forecast for global oil demand by 1.2 million barrels a day to 86.95 million barrels next year, Bloomberg reported. That's 120,000 barrels a day more than last month's forecast.Commodities are modestly higher. December gold contracts are up $6, or 0.41%, to $1,405 an ounce while January crude contacts are up 0.10%, or $0.09, at $87.92 a barrel.In energy ETFs, the United States Oil Fund ([USO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=USO&selected=USO)) ) is down 0.32% to $37.92 and the United States Natural Gas fund ([UNG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UNG&selected=UNG)) ) is down 2.05% to $5.73.In precious metal ETFs, the SPDR Gold Trust ([GLD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GLD&selected=GLD)) ) is up 0.15% to $137.45. Market Vectors Gold Miners ([GDX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GDX&selected=GDX)) ) is down 0.16% to $61.21. iShares Silver Trust ([SLV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLV&selected=SLV)) ) is up 0.56% to $26.87. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
Stock Price 4 days before: 12.3727
Stock Price 2 days before: 12.3966
Stock Price 1 day before: 12.6998
Stock Price at release: 9.49104
Risk-Free Rate at release: 0.00115
| 10.32 |
Symbol: NG
Security: NovaGold Resources Inc.
Related Stocks/Topics: EXK|Markets|GDXJ|HL|GDX
Title: Obscure stocks lead mining rally
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-11-12 07:27:00
Article: Some of the most-impressive gains in the mining sector recently have come from some of the least-known stocks.Endeavour Silver, an obscure Canadian company is up 95 percent in the last three months. Hecla Mining has climbed 85 percent and NovaGold Resources has more than doubled. In contrast over the same period, large gold miners as measured by the Market Vectors Gold Miners exchange-traded fund ([GDX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GDX&selected=GDX)) ) have climbed just 26 percent (purple line on chart). [GDXJ vs. GDX](http://www.optionmonster.com/cms/commentary/images/gdxjpre111210.png) This marks the development of a new trend where investors hunt for bargains amid little-known gold and silver companies, many of which simply own properties but don't operate mines. Those kind of companies are tracked by the Market Vectors Junior Gold Miners ETF ([GDXJ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GDXJ&selected=GDXJ)) ).That fund trailed the GDX for most of 2010 but has returned almost twice as much as the larger companies since the late summer. (Pete has extensively covered both the GDX and the GDXJ, netting some huge triple-digit wins in the process.) Two key factors are driving the gains and giving the obscure names their leverage. One is that many small companies have much larger deposits than is currently known because reserves often grow once they are more fully explored. An entirely new set of analysts and investors are now poking around these companies and studying the geology of their deposits. As a result, some of these stocks will move without easily identifiable causes.It also means that their financial statements will be largely irrelevant because they're based on old valuations of properties, which will complicate valuations. Another factor is consolidation. Large miners such as Barrick Gold will look to grow via acquisitions and hope to use their expertise to identify companies whose deposits may be undervalued.The good news is that trends like this happen long before a bull market ends, so there is still probably a lot of plenty of upside in the broader mining space. The bad news is that some of the best companies will have poor options liquidity and be hard to understand without an expertise in geology or mining technology.Either way, with instruments like the GDXJ, many ordinary investors can ride this trend.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 13.4006
Stock Price 2 days before: 14.3598
Stock Price 1 day before: 14.7849
Stock Price at release: 14.7327
Risk-Free Rate at release: 0.0011
| 15.3219 |
Symbol: EXK
Security: Endeavour Silver Corp.
Related Stocks/Topics: Markets|GDXJ|NG|HL|GDX
Title: Obscure stocks lead mining rally
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-11-12 07:27:00
Article: Some of the most-impressive gains in the mining sector recently have come from some of the least-known stocks.Endeavour Silver, an obscure Canadian company is up 95 percent in the last three months. Hecla Mining has climbed 85 percent and NovaGold Resources has more than doubled. In contrast over the same period, large gold miners as measured by the Market Vectors Gold Miners exchange-traded fund ([GDX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GDX&selected=GDX)) ) have climbed just 26 percent (purple line on chart). [GDXJ vs. GDX](http://www.optionmonster.com/cms/commentary/images/gdxjpre111210.png) This marks the development of a new trend where investors hunt for bargains amid little-known gold and silver companies, many of which simply own properties but don't operate mines. Those kind of companies are tracked by the Market Vectors Junior Gold Miners ETF ([GDXJ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GDXJ&selected=GDXJ)) ).That fund trailed the GDX for most of 2010 but has returned almost twice as much as the larger companies since the late summer. (Pete has extensively covered both the GDX and the GDXJ, netting some huge triple-digit wins in the process.) Two key factors are driving the gains and giving the obscure names their leverage. One is that many small companies have much larger deposits than is currently known because reserves often grow once they are more fully explored. An entirely new set of analysts and investors are now poking around these companies and studying the geology of their deposits. As a result, some of these stocks will move without easily identifiable causes.It also means that their financial statements will be largely irrelevant because they're based on old valuations of properties, which will complicate valuations. Another factor is consolidation. Large miners such as Barrick Gold will look to grow via acquisitions and hope to use their expertise to identify companies whose deposits may be undervalued.The good news is that trends like this happen long before a bull market ends, so there is still probably a lot of plenty of upside in the broader mining space. The bad news is that some of the best companies will have poor options liquidity and be hard to understand without an expertise in geology or mining technology.Either way, with instruments like the GDXJ, many ordinary investors can ride this trend.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 5.99353
Stock Price 2 days before: 5.94481
Stock Price 1 day before: 6.40795
Stock Price at release: 6.00644
Risk-Free Rate at release: 0.0011
| 7.29538 |
Symbol: DK
Security: Delek US Holdings, Inc.
Related Stocks/Topics: SUN|Markets|CHRD
Title: China Slowdown: 8 Oil Stocks Being Targeted By Short Sellers
Type: News
Publication: Kapitall
Publication Author: Unknown
Date: 2010-11-15 05:41:00
Article: By Eben Esterhuizen and Alicia Sellitti: Oil prices slicked downward last week amid speculation that China would soon be raising its interest rates. The country recently saw inflation hit a 25-month high, and Beijing is expected to step in to curb the excess growth. But any deflationary moves could prove problematic for if they reduce the gas giant's thirst for oil…According to Michael Lynch, president of Strategic Energy and Economic Research, "there was a sense that [China's] economic growth would tighten all of the commodities markets." So while China is projected to increase its oil production by 800,000 barrels a day, to 9.2 million this year, "anything that reduces growth there pulls the rug out from under the huge run-up in prices." And with oil down along with the dollar, investors may see this as the perfect time to cash out their commodities holdings.A slower Chinese economy could well mean a decline in oil prices--but which oil stocks are expected to bear the brunt of the drop? We looked at the trading trends among short sellers to find out.Unlike the majority of investors, short sellers bet on a stock's downside, by borrowing shares from other investors and selling them on the open market. The short is closed by buying back the shares initially borrowed--so if the short seller can buy back the stock at a lower price, he turns a profit. They have to be a bit more sophisticated than your average investor, so it can be useful to pay attention to their trades. (Click here to access [free, interactive tools](https://www.kapitall.com/?SSS_9BE834B738565D9496958EB6095A30D1) to analyze these investing ideas) Here's a list of the oil stocks that have seen the biggest increase in short interest over the past 3 months. All short trends described occurred between 7/30 - 10/30. The list has been sorted by the percentage change in the short ratio. (Data sourced from AOL Money) [Oil Stocks Being Targeted By Short Sellers](http://i1132.photobucket.com/albums/m562/RollingStone12345/Oilshorttargets.jpg)
Stock Price 4 days before: 7.16677
Stock Price 2 days before: 6.90528
Stock Price 1 day before: 6.95091
Stock Price at release: 6.96681
Risk-Free Rate at release: 0.0012
| 7.27034 |
Symbol: SLP
Security: Simulations Plus, Inc.
Related Stocks/Topics: Markets|SURG
Title: 5 Health-Care Penny Stocks to Buy Now
Type: News
Publication: Louis Navellier
Publication Author: Unknown
Date: 2010-11-15 11:00:00
Article: Health-care stocks have been resilient throughout the recession and the bumpy recovery. That's because consumers may cut back on discretionary spending, but it's never wise to cut back on trips to the emergency room or prescription drugs that maintain your quality of life. What's more, the health-care sector is one of the few places you'll find job growth these days - proving that the industry is on the rise despite a bumpy stock market in 2011.If you want to get the biggest bang for your buck as an investor, you should definitely hold a position in health-care stocks. And if you really want to see your investments explode, you should consider small-cap medical stocks that are seeing massive growth - and massive profit potential. These up-and-comers can pop overnight on a buyout offer, big contract or the FDA approval of an innovative new treatment. To help you get your share, keep your finger on the pulse of these five top health-care penny stocks:Synergetics USA ([SURG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SURG&selected=SURG)) )**Synergetics USA** (NASDAQ: [SURG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SURG&selected=SURG) ) is a medical device company that supplies its clients with precision microsurgical devices. Since January, SURG stock is up 148%, compared to gains of 11% and 7.3% for the NASDAQ and Dow Jones. Additionally, SURG has posted a net profit margin of 11% for 2010. Currently trading at $3.25, Synergetics is an affordable stock that could potentially add value to your portfolio.Metropolitan Health Networks ([MDF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MDF&selected=MDF)) )**Metropolitan Health Networks** (AMEX: [MDF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MDF&selected=MDF) ) provides medical care for Medicare Advantage beneficiaries in Florida. Year-to-date, MDF has gained 109%, compared to smaller gains by the broader markets. MDF stock has also outperformed earnings estimates for four consecutive quarters and is projected to earn 13 cents per share this quarter. Priced at $4.16, MDF is trading near its 52-week high of $4.52, and is a penny stock worth purchasing now.Simulations Plus ([SLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLP&selected=SLP)) )**Simulations Plus** (NASDAQ: [SLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLP&selected=SLP) ) develops software for use in pharmaceutical research and education. Over the past 11 months, SLP stock has jumped 97.1%, or $1.34. SLP has also posted strong earnings, having met or exceeded earnings estimate the past three quarters. In its last income statement, this penny stock reported quarterly revenue growth of 14.9%. SLP stock is an affordable purchase at its current trading price of $2.72.Caliper Life Sciences ([CALP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CALP&selected=CALP)) ) Health-care company **Caliper Life Sciences** (NASDAQ: [CALP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CALP&selected=CALP) ) sells its products to pharmaceutical companies, biotechnology companies, government institutions and the life sciences research community. Since January, this penny stock has climbed an impressive 98.8%, compared to smaller gains by the broader markets. CALP stock currently trades at $5.05, just one cent below its 52-week high. While CLP may be the most expensive stock on this list, it still is an inexpensive investment opportunity. Columbia Laboratories ([CBRX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBRX&selected=CBRX)) )**Columbia****Laboratories** (NASDAQ: [CBRX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBRX&selected=CBRX) ) develops products that provide solutions for infertility. In 2010, this penny stock is up 21.3%. More impressive, CBRX has gained nearly 44% since the beginning of August. In its last income statement, CBRX reported a quarterly revenue growth of 12.2%, year-over-year. Trading at $1.31, CBRX is far removed from its 52-week low of 65 cents a share, and rounds out my list of top health-care penny stocks to buy.As of this writing, Louis Navellier did not own a position in any of the stocks named here.
Stock Price 4 days before: 2.80127
Stock Price 2 days before: 2.72457
Stock Price 1 day before: 2.7371
Stock Price at release: 2.75594
Risk-Free Rate at release: 0.0012
| 2.63999 |
Symbol: SD
Security: SandRidge Energy, Inc.
Related Stocks/Topics: Markets|RRC|CVX|CHK
Title: Josh Young Finds Value in Oil and Gas E&Ps
Type: News
Publication: International Business Times
Publication Author: Unknown
Date: 2010-11-16 03:35:00
Article: Josh Young, a portfolio manager with Los Angeles, California-based Young Capital Management, is a value investor on the hunt for undervalued companies in the oil and gas space. He launched his fund in September, has earned enticing returns so far, and in this exclusive interview with The Energy Report, discusses some of his hedge fund's equity holdings that are poised to get some love in the market. **The Energy Report:** Josh, What makes your hedge fund different from others? **Josh Young:** We're focused on oil and gas investments, and we make those investments generally through oil and gas (O&G) equities. We focus on companies that are generally under-followed and find companies which are trading at a big discount to their intrinsic value, with identifiable catalysts that are going to unlock that value.On the short side, we find companies with some sort of fraudulent reporting or with very high valuations that are in fundamentally challenging situations that they are unlikely to work out. **TER:** You're a true value investor. **JY:** Yes, I am philosophically a value investor. I focus on the oil and gas space because there's a lot of volatility and there are lots of changes and catalysts. With the right approach to managing the commodity risk, there are regularly opportunities to generate significant returns and invest at the sort of discount to intrinsic value that can't be found in other sectors these days because there's so much investment competition. **TER:** You mentioned that you buy companies that are trading at a large discount to their intrinsic value and that have identifiable catalysts for further growth. Do you have much trouble finding those companies in the energy space? And what are some catalysts you like to see?**JY:** The opportunities are there, but it takes a rigorous investment process to exploit them. It's an incredibly labor-intensive process to identify those companies, research them and make sure they are, in fact, undervalued and that the market is missing something. The risk-adjusted returns from this space, and that I've generated running the strategy, justify the effort. I identify catalysts as a part of my investment process. I look for companies that have already announced that they're going to sell assets or that they're going to do an equity raise that will help them finance substantial growth. Those are some examples of catalysts. **TER:** What about drill results? Would you consider those catalysts?**JY:** Yes, but those are generally harder to predict and so I don't focus on them as much. Sometimes it's possible to figure them out before the market does, and sometimes the market does not immediately price in meaningful drilling results. But I'm not generally looking to make investments in anticipation of wildcat exploration drilling prospects. **TER:** Most of my experience is on the mining side. I noticed when I was combing through your research, a lot of the companies you follow have small share floats compared to mining companies at similar stages of development. Is there a certain range you look for in terms of the float size? For example, if a company has more than 50 million shares outstanding and isn't as far along the development path as a comparable company with 30 million shares, is that a red flag for you?**JY:** I'm less concerned with the number of shares outstanding and more concerned with the percentage of shares outstanding that are in the free float versus percentage held by one or more major shareholders, especially when those major holders might have to liquidate some or all of their holdings. I definitely watch for that. But I honestly don't care if there's 1,000 shares or a billion shares outstanding. I care about the fundamentals of the investment and the liquidity of the stock. **TER:** So, you don't like companies that are held largely by a handful of shareholders? Is that what you're saying? **JY:** It depends on the situation. Let me explain. One of the companies I follow, [Gastar Exploration Ltd. ( ](http://www.ibtimes.com/) [GST](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GST&selected=GST) ) , had several large shareholders, and the share price suffered as those large shareholders exited their positions. In 2008, about 20%-25% of Gastar stock was held by a hedge fund that dissolved and the Gastar stock got dumped into the market as a part of the dissolution process. That substantially hurt its stock price. More recently, another investment fund that held more than 10% of Gastar also dissolved its energy fund. There were a number of other factors but that, essentially, led to Gastar's stock price falling from $6. to below $3. even though the company was doing better than before. That said, it's actually another catalyst in that when a major shareholder is no longer a shareholder it can create a really positive environment for the stock and allow it to start appreciating closer to its fair value. **TER:** During a recent conference, Barclays VP of Commodities Biliana Pehlivanova said the equity markets like seeing gas production growth from companies because the markets consider it a measure of success. She added that the market rewards gas producers for the metric and, further, investors won't punish companies for low commodity prices because they figure it's beyond any one company's ability to correct the situation. Do you believe that's what's responsible for the growing disconnect between share prices and commodity price in the natural gas space?**JY:** I think it's complicated. I'm not sure that's necessarily the answer. A few big things have been happening. First, companies have been drilling into a low gas price because they're hedged. They view their hedges as locking in high prices and, even though gas is selling at $3.50 or $4, they make another $2 or $3 on their hedge contract. They're basically producing gas at $7. Investors see the earnings and cash flow as if the company was actually achieving a $7 gas price.In other cases, companies spent a significant amount of capital on leases in the Haynesville Shale or elsewhere and they're drilling to hold those leases and retain some of the value in relation to the high prices they paid for them. In those cases, companies are growing their gas production by default. I think a lot of the current oversupply in natural gas is actually coming from those first two factors.The third factor is that the general market wants to be long on natural gas. Retail investors believe in natural gas. They believe in commodities. They're concerned about quantitative easing 2 (QE2), and the general growth of the money supply. People want to be long on natural gas but they've lost money on the natural gas ETF, UNG, so they've been buying natural gas companies. One of the only ways a retail investor can access natural gas is by buying these natural gas companies through either ETFs or directly owning shares. I think that's where some of the disconnect comes from. The people trading natural gas futures aren't necessarily the same people as the people buying the stocks. **TER:** Do you think investors should just ignore the low gas price and invest in companies with good balance sheets and solid management, or are there better places for their capital right now?**JY:** I'm not sure I should be telling investors what they should and shouldn't do. What I'm doing is finding companies that are trading at a discount to their intrinsic value at the current gas price and on the current forward curve. I intend to benefit both from the undervalued stock price of the company, as well as any uplift they might get from rising gas prices. So I'm not ignoring the gas price completely, but I'm not letting it drive my investment decisions. It's been a headwind and it will be a tailwind at some point going forward, driving additional return for some of my investments. **TER:** Let's talk about some of your fund's equity holdings. One company in your hedge fund is [Cabot Oil & Gas Corp. ( ](http://www.ibtimes.com/) [COG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=COG&selected=COG) ) . It's trading at around $35, which already exceeded a target price set by Macquarie Equities Research. J.P. Morgan has a target of $50, but Oppenheimer has mixed opinions about Cabot. What do you see in the company, and how high do you think it could go?**JY:** Cabot has traded down a lot over the past few months, after receiving a lot of negative press about its operating activities in Pennsylvania. My understanding is that the company's operations are not substantially different from other Pennsylvania operators. Cabot just happens to be in Susquehanna County, an area with a very high visibility, and the people there are concerned about the water supply. I think that negative news about Cabot has scared investors. Large investors are reducing their positions or not increasing their positions as much as they would have relative to Cabot's intrinsic value.Cabot is really in the core of the dry gas window in the northeast. It's in an area of the Marcellus Shale where it and the operators around it have achieved some of the highest and most impressive initial production rates on their wells. Cabot is highly economic even at current gas prices. It has high-quality management, too. I think it's attractive just because it's been picked on so much. To be able to buy a low-cost natural gas producer in the U.S. at a discount to its intrinsic value is extremely rare. **TER:** Are there some catalysts there that you're eyeing?**JY:** There are a few things going on. First, there's industry consolidation. [Atlas Energy, Inc. ( ](http://www.ibtimes.com/) [ATLS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ATLS&selected=ATLS) ) recently got bought out by [Chevron Corporation ( ](http://www.ibtimes.com/) [CVX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CVX&selected=CVX) ) , and [EXCO Resources Inc. (NYSE:EXCO)](http://www.ibtimes.com/) is in the midst of a take-private transaction that may not close but is priced much higher than Cabot's current market valuation. There have been a number of deals in the Marcellus, joint ventures (JVs) and acquisitions over the last few years at generally increasing prices. Cabot hasn't done a JV yet in the Marcellus, but it may at some point. The company may even get bought out-it's in the core of the Marcellus. If I were a big multinational oil company and I wanted a large position in the core of the Marcellus, I would buy Cabot or go to the company and make a really attractive JV offer. That's a harder to predict catalyst from a timing perspective; it's something I think may happen over the next couple of years.Nearer term, it looks as though Cabot is going to monetize a portion or all of its Haynesville acreage. Based on other transactions happening there, I think that would be very positive and provide the company with additional liquidity.Cabot's acreage is in great locations in the Eagle Ford Shale, and it looks like the company should expect some high return wells there. They are also in the Heath Shale in Montana and the things I'm seeing in the Heath Shale are positive so far. But I don't attribute a lot of value to Cabot's Heath positions right now. Like I said, I don't really invest based on exploration prospects; but it's always nice to have the upside. It's possible that the company could pull in a few good wells in the Heath and that would significantly differentiate it and possibly lead to positive movement in the stock. **TER:** You mentioned Gastar earlier. That's an exploration and production (E&P) company with a market cap of about $200 million. A recent Canaccord Adams research report said, "Gastar is an attractively priced Marcellus producer given its relative growth potential." Canaccord has a buy rating of $4.50 on it. Meanwhile, Rodman & Renshaw has a target of $5.50 on Gastar. What are some of the catalysts there?**JY:** Well, Gastar just did an acquisition but the stock doesn't seem to have priced in the value creation from that acquisition. The company hasn't announced the metrics on the transaction; but, based on the understanding of some of the research analysts that I've spoken with and some back-of-the-envelope math, Gastar just bought north of 50,000 acres at $1,000 an acre or less in the Marcellus. They bought it in the dry gas area, but in a very good area of West Virginia. That's tremendously positive for the company. There are some big questions, though. What is the exact price Gastar paid? How will they finance the acreage acquisition and development? And did their existing JV partner decide to participate with it in the acquisition, or will they seek an additional JV partner? Gastar recently sold acreage to its joint venture partner at more than $4,000 an acre, and here it is buying similarly high-quality acreage at $1,000 an acre or even less. That's huge, especially for a company as small as Gastar. Gastar is now likely the most levered company in the Marcellus by enterprise value, at least among those that are publicly traded.Gastar has really transformed itself to a certain extent into a Marcellus acreage play, and an extremely attractively priced one at that. This catalyst has already played out and it's just a question of the price the company is paying. I think the market will be further surprised by other additional upcoming catalysts, such as the results from their oily Eagle Ford and Glen Rose wells in East Texas-you could see upside to the $5.50 price target that Rodman & Renshaw put out, and I really respect the analysts at both Rodman and Canaccord. Rodman recently upgraded RAME and raised their price target, and I suspect that could happen for Gastar as these catalysts play out. **TER:** You mentioned earlier that Chevron took out Atlas. The deal hasn't closed yet, but it's all but done. Atlas has a huge position in the Marcellus. Is that transaction affecting companies like Gastar? Are people adding a little extra value to such companies given the transaction?**JY:** I think they should. I think it has affected companies like Cabot and [Range Resources Corporation ( ](http://www.ibtimes.com/) [RRC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RRC&selected=RRC) ) , but I don't think it's affected companies like Gastar yet. I think it's important, even if I don't expect Chevron to buy Gastar or any major oil company to come in and buy a company like Gastar. It is important because Chevron's Atlas takeover is a validation of the play. I think it will give private equity firms and domestic and international oil companies more confidence in doing JVs in the area and buying companies to access their assets. I think it helps highlight Gastar's intrinsic value in the asset market even if it hasn't yet translated into a higher share price. **TER:** Another company in your fund is [GMX Resources Inc. ( ](http://www.ibtimes.com/) [GMXR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GMXR&selected=GMXR) ) . GMX increased proven reserves by about a quarter in fiscal year 2010 (FY10). And it recently subleased a number of drills to cut back on drilling in the Haynesville in order to reduce its capital costs. C.K. Cooper & Company has a hold rating on GMX, whereas both MKM Partners LLC and Stifel Nicolaus have buy ratings with a $6. target. Tell us about your outlook for GMX. **JY:** GMX is interesting to me because it has a tremendous amount of proven natural gas reserves on its books and is in the process of reducing the cost of adding additional reserves. Relative to the company's enterprise value, you pay less than $1. per 1,000 cubic feet of proven natural gas reserves. A large portion of those proven reserves are developed and producing. The company is profitable right now-primarily because of its hedges-but it is profitable.GMX has done a couple of things that have substantially increased the company's value and the value of its assets. First, it has significantly increased the amount of reserves it accesses per Haynesville well drilled. At some point couple of years ago, GMX was booking 3-4 billion cubic feet (bcf) of reserves per well. Now it's up to somewhere around 6-6.5 bcf per well in reserves, with associated higher production. Based on the type of improvements the company is achieving, it could get reserves as high as 7-8 bcf per well, comparable to some other places in the Haynesville historically considered more "core" than GMX's area. These are $9 million wells, so GMX's finding costs are pretty low. It's not the lowest-cost producer, but the company has definitely improved its cost structure. That's one really big positive.Another big positive is that it did a deal with [Kinder Morgan Energy Partners, L.P. ( ](http://www.ibtimes.com/) [KMP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KMP&selected=KMP) ) , one of the big pipeline companies. GMX sold a minority interest in its gathering system in East Texas for more than $40 million. I think it was a 40% stake or somewhere in that range. GMX still has the majority ownership in that system. Valuations on mainstream and gathering assets have gone up a lot in since that transaction. So GMX has what's probably a $60-$70 million asset that no one seems to be giving them credit for. The company's valuation is very low because people are worried it will outspend its cash flow. Yet, it has this asset that it will be able to sell to fund its development, increasing expected future reserves and cash flow. When GMX sells that gathering asset, it's really going to unlock value there. It will highlight how discounted the stock is relative to its fundamental value. And this is the kind of discount I look for and the kind of misunderstanding I take advantage of for my fund. **TER:** What are some of your other holdings that you'd like to talk about, Josh?**JY:** One of my largest positions that has done fairly well recently, but still has a lot of upside potential, is [RAM Energy Resources ( ](http://www.ibtimes.com/) [RAME](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RAME&selected=RAME) ) . RAME has a number of more mature oil assets, primarily in Texas and Oklahoma. They also have an oil field that they recently did some exploration work on and achieved some really positive results. Their stock is attractive because it is trading at a large discount to its proven reserve value, at a low cash flow multiple, while benefiting substantially from the above $80 price of oil. RAME's enterprise value/BOE is effectively ~$11/BOE, or $11 per barrel equivalent of energy in its proved reserves, which is substantially lower than the going rate for other oil stocks and in the asset market. On the surface, RAM appears to be overleveraged, but it recently did an asset sale for more than $40 million. The asset they sold appears to have been one of the company's weakest assets. It was a high-percentage natural gas field that was providing a relatively small amount of cash flow to its value. Even though RAM announced positive exploration results on a trend where [SandRidge Energy, Inc. ( ](http://www.ibtimes.com/) [SD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SD&selected=SD) ) and [Chesapeake Energy Corp. ( ](http://www.ibtimes.com/) [CHK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CHK&selected=CHK) ) have been very successful a couple of counties west in Oklahoma, RAM's stock has not received much credit for the substantially improved liquidity position nor the recent exploration success. And given that the majority of RAM's reserves are in oil, the company continues to trade at a substantial discount to its proven reserve value, which was calculated at a lower oil price. So, there's even more value there that should be recognized in the market at some point. **TER:** Any others?**JY:** One more is [Lucas Energy, Inc. (NYSE.A:LEI)](http://www.ibtimes.com/) , a micro-cap company. It's a small position for me, partly because it is not the most liquid stock and is a small company, but it's definitely one of the more interesting oil and gas companies. The company is entirely in the Austin Chalk formation and the Eagle Ford Shale. Lucas did a JV with Hilcorp Energy Company, a private company, whereby Hilcorp is going to drill a number of Eagle Ford oil shale wells. Lucas is getting carried on the first couple of wells, and they are going to maintain a 15% interest.Lucas is currently producing 120 barrels of oil per day (bpd), so it's a very small amount of production. These Eagle Ford oil wells are coming on at anywhere from 500-1,000 bpd, so the company should have one well in production before the end of the year; and it should have a couple additional wells in the first quarter of next year. Lucas could more than double its oil production just from these first wells that Hilcorp is bringing on. And it has a number of other locations that Hilcorp will be drilling over the next several years, and has recently acquired additional Eagle Ford acreage at prices that were likely compelling. At oil prices north of $80, Lucas' oily Austin Chalk wells should be highly economic. You could expect the company to accelerate drilling there and increase production at very attractive margins in a play that was less attractive at that lower oil prices. Even though it's still very small, it's still an interesting company.As you can see, my investment process entails finding value and taking advantage misunderstood opportunities, and there are a number of attractive opportunities that I've found recently in the oil and gas space. It takes a lot of research and involves developing an understanding of the companies, but it is worthwhile in terms of the opportunities it generates for attractive risk-adjusted return investments like some of the ones I've mentioned. **TER:** Thank you, Josh for your time today.Joshua Young is the founder and portfolio manager of [Young Capital Management, LLC](http://www.ibtimes.com/) , which launched Young Capital Partners, LP in September 2010. He previously served as an analyst at a multibillion-dollar single-family office in Los Angeles, which was nominated for single-family office of the year by Institutional Investor magazine in 2008. At the family office, he was involved in the sourcing, evaluation, purchase and sale of primarily public equity investments in a value-oriented long/short equity strategy. He also led the energy investment effort, evaluated third-party investment managers and assisted in the development of this relatively new, multibillion-dollar family office. Prior to that, he was an investment analyst at Triton Pacific Capital Partners in Los Angeles, a middle-market private equity firm. Prior to that, he was a corporate strategy consultant at Mercer Management Consulting and DiamondCluster in Chicago. He graduated with honors from the University of Chicago with a BA in economics. Josh can be reached at [[email protected]](http://www.ibtimes.com/) . Want to read more exclusive Energy 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 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: Atlas and Ram.3) Josh Young: I personally and/or my family own shares of the following companies mentioned in this interview: Cabot, Gastar, RAM Energy, GMX Resources and Lucas. I personally and/or my family am paid by the following companies mentioned in this interview: None. I reserve the right to buy or sell any stocks I have mentioned here at any time.Streetwise - [The Energy 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 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/)
Stock Price 4 days before: 5.20279
Stock Price 2 days before: 5.20813
Stock Price 1 day before: 5.21134
Stock Price at release: 5.13325
Risk-Free Rate at release: 0.0013
| 6.55332 |
Symbol: ZUMZ
Security: Zumiez Inc.
Related Stocks/Topics: WMT|Markets|TGT|BGFV
Title: Finding Cash Rich Retail Stocks - Our Top Picks
Type: News
Publication: Learning Markets
Publication Author: Unknown
Date: 2010-11-16 05:28:00
Article:
Stock Price 4 days before: 28.4552
Stock Price 2 days before: 28.6188
Stock Price 1 day before: 28.6331
Stock Price at release: 27.5566
Risk-Free Rate at release: 0.0013
| 29.5539 |
Symbol: AMTD
Security: AMTD IDEA Group
Related Stocks/Topics: Markets
Title: FBR Capital Reiterates "Outperform" Rating on TD Ameritrade (AMTD)
Type: News
Publication: Dividend.com
Publication Author: Unknown
Date: 2010-11-16 09:04:00
Article: Online stock brokerage operator TD Ameritrade Holding Corp. ( **AMTD** ) on Tuesday saw its "Outperform" rating reiterated by analysts at FBR Capital Markets.The firm also backed its $20 price target on AMTD, which implies a 13% upside to the stock's Monday closing price of $17.29. An FBR analyst commented, "We are reiterating our rating and price target on AMTD following the release of client metrics last night, which were modestly ahead of expectations, highlighted by a strong recovery in trading activity. We continue to believe that the underlying core client asset growth and cash flow generation of Ameritrade's overall business remain strong, giving management the flexibility to redeploy meaningful levels of capital back to shareholders while also keeping powder dry for additional accretive acquisitions…We are maintaining our FY11 and FY12 EPS estimates of $1.02 and $1.21, respectively."TD Ameritrade shares were mostly flat in premarket trading Tuesday. **The Bottom Line** Shares of TD Ameritrade ( **AMTD** ) have a 1.16% dividend yield, based on last night's closing stock price of $17.29. The stock has technical support in the $15 price area. If the shares can firm up, we see overhead resistance around the $18-$19 price levels.TD Ameritrade Holding Corp. ( **AMTD** ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of ** [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php)** . Created by Dividend.com
Stock Price 4 days before: 17.2613
Stock Price 2 days before: 17.2794
Stock Price 1 day before: 17.2798
Stock Price at release: 17.35
Risk-Free Rate at release: 0.0013
| 18.7044 |
Symbol: PACB
Security: Pacific Biosciences of California, Inc.
Related Stocks/Topics: Markets|BAH|ILMN
Title: This Recent IPO Could Soar
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-11-16 10:39:00
Article: The [initial public offering (IPO)](http://investinganswers.com/term/initial-public-offering-ipo-1076) market continues to heat up with deals coming this week for **GM (NYSE: GM)** , **Booz Allen ([BAH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BAH&selected=BAH)) )** , **Caesars Entertainment (NYSE: CZR)** and a half dozen other firms. The flurry of deals puts us on track for the most robust quarter for IPOs in more than two years. And looking at the pipeline of new deal registrations, the first quarter of 2011 may be even hotter.I recently looked at a strategy that uses analyst research to find stocks about to pop. [See: " [The Secret Way to Play IPOs](http://www.streetauthority.com/a/secret-way-play-ipos-456934) "] Yet that's not the only way to look for upside among recent new deals. You can also scan lists for "broken IPOs," which are firms that have been public for a short while and are drifting lower while investors focus on more established companies.Last month, [I took a look](http://www.streetauthority.com/a/top-12-ipos-2010-can-they-go-higher-456675) at top-performing IPOs, as I wrote back then, "many new IPOs take time to find their sea legs and only take off well after their debuts. In fact, every single stock [mentioned in that piece] came out of the gate with a whimper and only started rising many weeks or months after their debut."The stocks in the table below are all broken IPOs, each is trading off at least -15% from its [IPO](http://investinganswers.com/term/initial-public-offering-ipo-1076) offering price. I've pored through the list and found the best rebound candidate.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) -- David Sterman** Complete Genomics (Nasdaq: GNOM)**Any company that struggles to fetch a desired [IPO](http://investinganswers.com/term/going-public-456) price is a conundrum for investors. On the one hand, a lower-than-expected price is a sign that investor demand just isn't there. On the other hand, you've got a chance to buy a stock at a cheaper price than investment bankers have recently assessed. Case in point, Complete Genomics, which hoped to sell shares for $12 to $14, had to settle for a $9 offering price last Friday, and the stock is now down to $7. That's just half the high end of the expected range of pricing. The weak demand may be due to the fact that rival **Pacific Biosciences (Nasdaq: PACB)** had just pulled off an IPO weeks earlier, snatching the attention of any fund managers that buy these kinds of companies. Complete Genomics is involved in DNA sequencing. While other firms like **Illumina (Nasdaq: ILMN)** and Pacific Biosciences sell equipment to scientists, Complete Genomics acts as a service bureau, performing third-party DNA sequencing services.Why the tepid IPO reception? Complete Genomics is just starting to generate sales and investors fear that quarterly losses will continue for the next year or two, setting the stage for another round of capital-raising. Ideally, the company would have waited until sales started building and losses started shrinking, but its backers likely balked at putting any more money into the company.Yet this stock has all the makings of an IPO rebounder, as the firm's underwriters, led by Jefferies, get set to publish initial reports on the company in early December. You can expect to see bullish forecasts of projected sales growth rates, and if you look out far enough, fast-rising profits.Analysts are likely to note that Complete Genomics' DNA sequencing approach may prove to be very cost-effective and capable of high [market share](http://investinganswers.com/term/market-share-778) . Industry leader Illumina can analyze an entire sequence of DNA strands for around $10,000 in materials. Complete Genomics thinks it can do it for just $4,500. And over time, prices could drop well below that level, making DNA sequencing for the masses more feasible. **Action to Take -->** Keep an eye on new IPOs. They often stumble out of the gate, giving the false impression that they are unworthy investment candidates. Of the recent crop of IPO laggards, Complete Genomics appears to have the greatest potential upside. With a broken IPO and scant revenues, investors will need to focus on the company's technology value. Complete Genomics is valued at less than $150 million, roughly $20 million less than the money spent developing its technology platform. The revenue profile tells you that this is a risky as a biotech stock. But if the company can make headway in the space, investors may start to make comparisons to Illumina, which is valued at $7.2 billion -- 50 times more than Complete Genomics.[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...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: 12.25
Stock Price 2 days before: 12.3242
Stock Price 1 day before: 12.6482
Stock Price at release: 12.16
Risk-Free Rate at release: 0.0013
| 13.8941 |
Symbol: NG
Security: NovaGold Resources Inc.
Related Stocks/Topics: SCCO|Markets|PAAS|FCX
Title: Mining Stocks: Another View of Support and Resistance
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-11-17 03:05:00
Article: ** [Zecco](https://www.zecco.com/) submits:**By Richard BlochBack on October 6, I suggested [another way](http://pulse.zecco.com/2010/11/2010/10/fcx-another-way-to-look-at-support-and-resistance/) to view support and resistance points for Freeport McMoran ([FCX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FCX&selected=FCX)) ) - a major copper producer - by looking at the price of the stock against the price of copper itself.For example, here's a chart plotting the relationship between FCX and the price of copper (using a [continuous contract](http://www.premiumdata.net/support/futurescontinuous.php) ) going back about 18 months (May of 2009): click to enlarge** [](http://static.seekingalpha.com/uploads/2010/11/17/saupload_fcx_copper_chart.png)**As you can see, when copper has traded at around $3 per pound, the stock has traded from around 60 to 85. That's a wide range, of course, since there is obviously a historical relationship between the stock and the metal.The red line shows the linear regression line which best fits the data. I added the green lines to show potential support and resistance points.The chart shows that the slope of the line is about 26, indicating that if the relationship holds, FCX could conceivably move up or down by that amount for every $1 move in the price of copper.The R-squared value shows the strength of the correlation, in this case 0.84. (A value of 1 represents a perfect correlation.) Here's a similar chart for another copper miner, Southern Copper ([SCCO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SCCO&selected=SCCO)) ): ** [](http://static.seekingalpha.com/uploads/2010/11/17/saupload_scco_copper_chart.png)********Silver miners: A strong relationship to the metal** After looking at these two copper miners, I decided to create similar charts for two silver mining companies, Silver Wheaton ([SLW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SLW&selected=SLW)) ) and Pan American Silver ([PAAS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PAAS&selected=PAAS)) ):** [](http://static.seekingalpha.com/uploads/2010/11/17/saupload_paas_slw_silver_charts.png)**Both of these charts show a very strong historical relationship to the price of silver (R-squared of over 0.9) - at least for the past 18 months. ******Gold miners: More variation in correlation** Continuing along the same line of thinking, here's a look at some of the larger gold miners:** [](http://static.seekingalpha.com/uploads/2010/11/17/saupload_abx_nem_au_gg_gold_charts.png)**It appears as if there's a lot more variation in how the stock price of these companies moved based on the price of gold.Some of this variation could be explained by each company's costs to mine and refine an ounce of gold and how the company has hedged future sales. For example, a company that sold some of its future output when gold was trading at $1,100 might trade differently than a company that has not hedged its future production.Finally, here's a few charts for a couple of the "junior" gold miners. ** [](http://static.seekingalpha.com/uploads/2010/11/17/saupload_ng_hl_gold_charts.png)******NovaGold ([NG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NG&selected=NG)) ) has traded well above $12 since November 3 and seems to have broken through what I would have thought would be a resistance point - at least based on this chart.One thing to keep in mind about some of these miners is that they're often involved in more than just one metal. Freeport McMoran, for example, while well known for its [100 billion pounds](http://www.fcx.com/metals/assets.htm) of copper reserves, estimates its gold reserves at 40 million ounces.Currency fluctuations could also impact this analysis. Although gold, silver and copper generally trade in US dollars, most of these companies have assets and customers outside the US. So where could your favorite mining stock be headed? You'll certainly want to look at a traditional price chart along with company-specific fundamental data, but plotting support and resistance points based on metal prices could also help you decide when to buy or sell. **Disclaimer:** Charts of historical correlation data are for illustrative purposes only, and should not be construed as recommendations, projections, or guarantees of performance. **Disclosure:** NoneSee also [General Motors Series B Preferred Stock: Stock Plus a Short Call Spread?](http://seekingalpha.com/article/240065-general-motors-series-b-preferred-stock-stock-plus-a-short-call-spread?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 14.2715
Stock Price 2 days before: 14.5854
Stock Price 1 day before: 14.1176
Stock Price at release: 13.4613
Risk-Free Rate at release: 0.0013
| 13.6532 |
Symbol: ODP
Security: The ODP Corporation
Related Stocks/Topics: Markets|AMZN
Title: Q3 Preview: Staples (SPLS) Hopes to Tighten Margins Amid Renewed International Expansion Plans (OMX, ODP, AMZN)
Type: News
Publication: StreetInsider.com
Publication Author: Unknown
Date: 2010-11-17 04:49:00
Article: Staples, Inc. ([SPLS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SPLS&selected=SPLS)) ) is higher ahead of the company's third quarter earnings release, expected out before the market opens tomorrow. The stock is up0.17% in afternoon trading.The company is expected to report an EPS of $0.40 on revs of $6.54 billion. Last quarter, the Framingham, MA-based retailer reported an EPS of $0.20 on $5.53 billion in revs, compared to consensus EPS of $0.20 and revs of $5.64 billion. Last year, in Q309, the Staples posted an EPS of $0.39 and revs of $6.50 billion, besting views looking for an EPS of $0.38 on $6.45 billion in revs. Shares of SPLS gained about 7% through the quarter, to $20.52 at the end of October. The stock is down 2.5% since then end of the quarter, and about 17% off since the start of 2010.SPLS is trading for a forward P/E of 12.9x next year's earnings, compared to 56.38x for Office Depot ([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) ) and 15.8x for OfficeMax ([OMX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OMX&selected=OMX)) ).Data from Bloomberg shows that 15 analysts have a Buy rating on the shares, 6 have a Hold, and one recommends to Sell the stock. The analysts price target average is $24.50, with a high of $29 and a low of $17.SummaryStaples reported their Q310 earnings a bit early, on October 25. They gave an EPS range of $0.39 - $0.41, compared to the consensus of $0.41 at the time. They also reaffirmed their FY10 outlook, and guided FY11 EPS of $1.50 - $1.60, versus the consensus of $1.57. Same-store sales are expected to be down 1%.In September, Goldman Sachs upgraded Staples from Neutral to Buy, adding them to their Conviction Buy List. GS boosted their price target from $22 to $23. Deutsche Bank is expecting an EPS of $0.40. DB looks at four indicators in the office space: employment, industrial production, small business optimism and computer spending. Deutsche notes that, generally, all four of the indicators have increased through the quarter compared to Q309. Professional and Business Services employment data series were up 2% in Q310, gaining on a 0.7% jump in Q210. Small business optimism dropped to 88.6 in the quarter. Industrial production improved 6.3%, and computer spending has mixed indications (data not available yet).Janney also expects an EPS of $0.40. They were looking for sales growth of 1.9%, but SPLS came in flat. They think that weakness in sales will be offset by improved margins. Janney is modeling a gross margin of 9.4% for North America delivery, 10.5% for N.A. Retail, and 4.3% for International. They maintain their neutral, with concerns that "renewed international growth aspirations could drive lower returns in the future."Additinally, look for comments about their partnership with Pragmatic Express Ltd., Amazon (Nasdaq: AMZN) Kindle sales, cost management, and store expansions.Staples, Inc. is expected to release their Q310 earnings on Thursday, November 18, 2010, at approximately 7:00am EST. Stay tuned to StreetInsider.com's [EPS Central](http://www.streetinsider.com/portal/EPS+Central/5.html) section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
Stock Price 4 days before: 4.50998
Stock Price 2 days before: 4.53012
Stock Price 1 day before: 4.50233
Stock Price at release: 4.42453
Risk-Free Rate at release: 0.0013
| 4.72263 |
Symbol: ODP
Security: The ODP Corporation
Related Stocks/Topics: Markets|SCHW
Title: Top 10 Stocks NOT to Buy in 2011
Type: News
Publication: Louis Navellier
Publication Author: Unknown
Date: 2010-11-17 04:51:00
Article: These Stocks Should Be Avoided in 2011 [Don't Do It](http://www.investorplace.com/wp-content/uploads/2010/11/dont-do-it.jpg)[3 Hidden Takeover Targets to Double Your Money](http://www.investorplace.com/order/?sid=YI4250) It's hard to believe, but the holiday season is upon us and there is only about a month and a half left in 2010. Because this is the busiest time of the year for investors like you, I thought I'd get out ahead of the New Year and I would give you 10 stocks that I think you should dump for 2011. Some of these stocks have had a good run and some never really got anything going this year, but all are too risky if you're looking to build a solid portfolio in 2011.Let's get right to this list of stocks you should sell or avoid as we close out 2010.#1 - Bancorp South Inc. [Bancorp South](http://www.investorplace.com/wp-content/uploads/2010/11/bancorp-south.jpg)[3 Hidden Takeover Targets to Double Your Money](http://www.investorplace.com/order/?sid=YI4250) When I run an analysis of the fundamental strength of all stocks on the market, the bottom of the list is overwhelmingly made up of financial stocks. **BancorpSouth Inc.** (NYSE: [BXS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BXS&selected=BXS) ) is the holding company for BancorpSouth Bank and it had a pretty miserable 2010. After climbing back to $24 a share early in the year, the stock quickly tumbled to its current price of under $14.Despite one positive quarter, the company has missed earnings estimates by more than 20% over the last four quarters and I don't see better things coming for the company in 2011. #2 & #3 - E*Trade & Charles Schwab [E*Trade](http://www.investorplace.com/wp-content/uploads/2010/11/e-trade.jpg)[3 Hidden Takeover Targets to Double Your Money](http://www.investorplace.com/order/?sid=YI4250) Here are two bigger-named financial companies you should also avoid in the year ahead: **E*Trade Financial Corp.** (NASDAQ: [ETFC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ETFC&selected=ETFC) ) and **Charles Schwab Corp.** (NYSE: [SCHW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SCHW&selected=SCHW) ). I haven't ranked either stock as a buy for 2010, and I don't see it happening in 2011 either.Both companies have managed to post some earnings surprises in the last year, but haven't been able to translate these into progress for the company or into profits for investors.Avoid both in the year ahead.#4 - Office Depot [Office Depot](http://www.investorplace.com/wp-content/uploads/2010/11/office-depot.jpg)[3 Hidden Takeover Targets to Double Your Money](http://www.investorplace.com/order/?sid=YI4250) Bank stocks aren't the only stocks that are heading for a rough year ahead.I actually rated **Office Depot Inc.** (NYSE: [ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP) ) as a buy for a short time in early 2010. The stock was on a roll and earnings were strong coming out of 2009, but it wouldn't last long for the office supply retailer. My warning here is not to fall for ODP's fourth-quarter earnings. While they may be strong, it appears that unless we have a holiday shopping event every quarter, the numbers will continue to sag.#5 - Genoptix [Genoptix](http://www.investorplace.com/wp-content/uploads/2010/11/genoptix.jpg)[3 Hidden Takeover Targets to Double Your Money](http://www.investorplace.com/order/?sid=YI4250)**Genoptix, Inc.** (NASDAQ: [GXDX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GXDX&selected=GXDX) ), the diagnostic testing facility, is next on my hit list. The company receives bad marks for just about every metric in my grading system. The healthcare sector, as a whole, had a rough year, but Genoptix's problems run deeper than uncertainty about health care reform.In the spring, Genoptix seemed to be picking up steam after a tepid beginning to the year, but the sharp gain in April was short-lived. GXDX shares peaked at $38.79 and by June had plummeted to just $15.61 per share. And shares stayed at these levels throughout the remainder of the year. The company has posted mediocre earnings surprises in recent quarters and analysts continue to lower their estimates significantly.I see little chance of Genoptix making any major rebound in the New Year.#6 - AES Corp. [AES](http://www.investorplace.com/wp-content/uploads/2010/11/aes.jpg)[3 Hidden Takeover Targets to Double Your Money](http://www.investorplace.com/order/?sid=YI4250) Next on our 2011 black list is the global power company **AES Corp.** (NYSE: [AES](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AES&selected=AES) ). While utilities are typically seen as the unsung heroes of steadily gaining stocks, AES is one of the exceptions to this rule. The stock has been steadily declining throughout 2010 and hasn't been rated above a "C" in the last 12 months. Decreasing sales estimates and a painful negative 23% earnings surprise in the third quarter have the company's fourth quarter and 2011 forecast looking grim.Despite a slight gain in September and October, AES is already shooting down in November, with little hope of recovery in the near months.#7 - Advantest [Advantest](http://www.investorplace.com/wp-content/uploads/2010/11/advantest.jpg)[3 Hidden Takeover Targets to Double Your Money](http://www.investorplace.com/order/?sid=YI4250) The semiconductor sector has been on a roller-coaster ride of its own this year and **Advantest Corporation** (NYSE: [ATE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ATE&selected=ATE) ) has had a front-row seat on that ride.It seemed that 2010 would be a promising year for the semiconductor equipment company. The stock opened strong and reached up to just over $28 per share in January, but it was a short-lived victory. Stock prices dipped in February, and despite a small reprieve in the middle of April, the company's performance steadily weakened.Hovering at just over $19 per share, ATE has dropped 32% since its high in January. If you are unfortunate enough to own this company, get out now. #8 & #9 - Gammon Gold & Jaguar Mining [Gammon Gold](http://www.investorplace.com/wp-content/uploads/2010/11/gammon-gold-inc.jpg)[3 Hidden Takeover Targets to Double Your Money](http://www.investorplace.com/order/?sid=YI4250) It's easy to sight and stay away from consistently underperforming stocks, you may say. But, what about the companies that have rallied in recent months? How should an apparently strong comeback be interpreted?As investors you surely recognize the sometimes fickleness of the market. So, keep that in mind when considering stocks that appear to be on the up-and-up. Remember, if the fundamental strength isn't supporting the company, positive performance won't last long. Consider these next picks on my dump list.I'm certain you all remember the terrible Chilean mining accident back in August that left 33 miners trapped underground for over 2 months. In the nearly nine weeks before the rescue took place, mining stocks hit a huge surge. **Gammon Gold, Inc.** (NYSE: [GRS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GRS&selected=GRS) ) and **Jaguar Mining Inc.** (NYSE: [JAG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JAG&selected=JAG) ) provide great examples of trend stocks to be careful of. Shares of both stocks surged in August. Gammon jumped 30% between August and September, while JAG increased 21% between the time the miners got trapped and they were rescued.These fundamentally weak companies profited from the mining trend. And while they've maintained gradual growth in the months following the rescue, we can already see them showing their true colors and losing momentum. #10 - Manulife Financial [Manulife Financial](http://www.investorplace.com/wp-content/uploads/2010/11/manulife-financial.jpg)[3 Hidden Takeover Targets to Double Your Money](http://www.investorplace.com/order/?sid=YI4250) My final big no-buy for 2011 is the insurance company **Manulife Financial Corp.** (NYSE: [MFC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MFC&selected=MFC) ). Insurance companies often get a bad rap, but in this instance the company deserves it. However, in late August the company seemed to be turning around the downward trend it had experienced all year and picked up speed. This month alone MFC shares have jumped 20% and all appearances make it seem like the growth will continue. The only problem: The company's metric grades do not reflect this optimistic outlook. Across the board Manulife is receiving D's and F's in its fundamental markers. And these important fundamentals don't appear to be changing anytime soon.It may be tempting to succumb to media hype and sudden big sector movements like we're seeing with raw materials and precious metals, but you need to remember to keep your head.Like a building, if a company is built on a shaky foundation, it will inevitably come crashing down. When deciding where to invest your funds, make sure you look at the overall performance of a company and try to anticipate how it will react to important external factors.But don't feel too overwhelmed. As always, I promise to be here for you in the New Year, helping guide you to make profitable investment decisions!
Stock Price 4 days before: 4.50998
Stock Price 2 days before: 4.53012
Stock Price 1 day before: 4.50334
Stock Price at release: 4.42453
Risk-Free Rate at release: 0.0013
| 4.72263 |
Symbol: BKE
Security: The Buckle, Inc.
Related Stocks/Topics: Markets|FCX|MA
Title: Market Wrap-Up for Nov.18 (GM, UNP, FCX, COH, MA, LTD, BKE, more)
Type: News
Publication: Dividend.com
Publication Author: Unknown
Date: 2010-11-18 04:13:00
Article: Baseball, Hot Dogs, Apple Pie & Chevrolet! The much-anticipated IPO of General Motors ( **GM** ) has finally arrived and Wall Street is rejoicing, judging by the early stock price reaction. I keep scratching my head about the company though, wondering what has really changed for the company from a business standpoint. It seems tough to justify its current $50 billion valuation.New GM CEO Dan Akerson said this was the right time for the company to go public again, but stopped short of promising that taxpayers would be paid back with future stock sales. I realize it is impossible to guarantee any GM payback, but you think he could have waited till after today's party to take some air out of what could be the reality of the situation. As I said yesterday, I hope that the company's job picture stabilizes first and foremost, because that is what the country needs now. After all the glowing attention the company's IPO has received, you can bet the big media players will certainly be glad to have GM's advertising dollars flowing back in. Elsewhere, commodity stocks are having their bounce after the recent mini-correction. It will be interesting to see if the commodity playes we watch are in the process of making a lower high, or if this was simply a minor bump in the road on the way to making further highs. You probably know by now that I am not a big fan of commodity-led rallies, especially when we all know higher commodity prices can come back to bite consumers in their everyday spending.Today's triple-digit rally was led by various companies, including Union Pacific ( **UNP** ), Freeport McMoran ( **FCX** ), Coach ( **COH** ), and MasterCard ( **MA** ). Limited Brands ( **LTD** ) and Buckle ( **BKE** ) both reported solid earnings and said they were paying out special one-time cash dividends. If you are into the dividend capture style of investing, you may want to keep these two names on your radar. There will certainly be some short-term attention paid to both companies. Long-term investors need to assess the possibility of how the stocks will trade once the ex-dividend dates are hit. Remember, you need to own the stock prior to the ex-dividend date to be able to receive the dividend payout, and the stock price will be negatively adjusted on the ex-dividend date to reflect payment of the dividend.Be sure to check out the latest ["Learn to Be Rich"](http://www.dividend.com/blog/?cat=4184) articles as I'd like everyone to gain the money knowledge they need to navigate through other parts of their financial life outside of investing. And of course, check our our currently "Recommended" names on our industry-leading ["Best Dividend Stocks"](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) list.Thanks for reading everybody. See you tomorrow!Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of ** [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php)** . Created by Dividend.com
Stock Price 4 days before: 34.0837
Stock Price 2 days before: 34.3339
Stock Price 1 day before: 34.0754
Stock Price at release: 35.9629
Risk-Free Rate at release: 0.0013
| 37.9255 |
Symbol: ROIC
Security: Retail Opportunity Investments Corp.
Related Stocks/Topics: Markets|EBIX
Title: Ebix: An Assessment of Performance
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-11-18 04:37:00
Article: **Gino Verza submits:**This assessment of Ebix, Inc. ([EBIX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EBIX&selected=EBIX)) ) encompasses a multi-year history of results. It focuses on value metrics, particularly free cash flow, a driver in fundamental valuation.The issue to discuss is the extent to which the market is properly pricing the stock. This document examines EBIX's financial performance enabled by substantial acquisitions, and the related issue of sizeable goodwill on the balance sheet. Significant negative opinion over financial performance is evidenced by the substantial short-interest position in the stock. **Background** Ebix is an international supplier of software and e-commerce services to the insurance and financial industries.As the company explains, its technology strategy is to focus on convergence of all insurance channels, processes, and entities so that data can seamlessly flow once a data entry has been made. The goal is to be the leading backend powerhouse of insurance transactions in the world.The company's customer base includes over 100 insurance companies, third-party (insurance processing) administrators, banks, financial advisors, and 300,000 broker/agents, in addition to a few hundred corporate clients. Targeting a $60 billion market segment in the U.S. alone, EBIX views ample growth opportunities by leveraging the existing customer base and market reputation.Consolidation in the insurance and financial industries has driven the need to benefit from economies of scale and scope, as well as improvement on how products are distributed and on process efficiency throughout the insurance transaction; front-end involving consumers; and at the back-end. EBIX strategy encompasses organic growth and substantial acquisition activity. Embedded in the client offering are solutions that, when adopted, enhance the way clients conduct business. This encompasses automating their processes, advancing operational proficiency, reducing costs, and upgrading the quality of the clients' relationships with their own customers.By their nature, EBIX's services are integral to its clients' business and operations. EBIX's relationships with clients are sticky, susceptible to cross-sell, and have the potential to offer stable and recurring revenue. **Performance** The chart below shows selected measures of performance for the four year period 2008-2010:Note the following: - Impressive annual growth in Revenues (averaging 46%), EBIT (71%), Cash Flow from Operations (99%), and Free Cash Flow (148%). In the chart, FCF computation is based on Cash Flow from Operations adjusted by a CAPEX replacement figure represented by depreciation and amortization. - Rapid annual growth in Fixed Assets (averaging 78%). FYE 12/10 Fixed Assets estimates account for the A.D.A.M. ([ADAM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ADAM&selected=ADAM)) ) acquisition, currently in process of closing. - Not shown in the chart is the sizable amount of Goodwill, Intangibles, and Indefinite-lived Assets ("acquisition assets") originated by multi-year acquisition activity. As of Q 9/10 such acquisition assets amounted to $232.10 million, or 96% of total Fixed Assets, vs. $43.73 million and 89% respectively, on FYE 12/07. - Average FCF growth (148%) exceeds the growth in Fixed Assets (78%). However, the elevated FCF growth figure is due to a spike in FCF growth (429%) in 2007, when earlier FCF absolute amounts were relatively very small, particularly in comparison with most recent levels. The point to be made here is that, as far as current performance is concerned, we should not conclude that FCF per unit of Fixed Asset is improving. In fact, the decrease in the ratio of both Revenues/Fixed Assets (from 87% to 42%) and FCF/Fixed Assets (from 25% to 13%) suggest that the opposite is true (more in Cash Flow, below). - Rapid growth in Fixed Assets, and in "acquisition assets," from $43.73 million in FYE 12/07 to $232.10 million in Q 9/10, depicts the magnitude of acquisitions and their importance in financial performance. The question remains: What is the assessment of EBIX performance, particularly given substantial acquisitions and related accounting issues?Let's discuss some performance issues. **Strategic Acquisitions** We consider that, by and large, acquisitions are strategic in content. (See recent announcements [here](http://finance.yahoo.com/news/Ebix-to-Acquire-Atlanta-Based-bw-175226050.html?x=0&.v=1) and [here](http://www.ebix.com/pressrelease_text.aspx?artid=182) .) This means that, as an aggregate, acquisitions are intended to enhance the competitive position of the firm by (a) strengthening the value proposition (enhancing client benefit with solutions that improve the businesses of clients) by expanding the scope, depth, sophistication, and modular complementarities in the product suite; (b) enhancing risk-adjusted economic returns by expanded market coverage and cross-sell opportunity; and (c) reinforcing and/or exploiting the core competency of the firm (technology, knowledge, industry specialization). Broadly, in the role of acquirer, EBIX seeks to strengthen competitiveness by the timely expansion of product capability and market coverage, and in so doing preempt actual and potential competitors from achieving favorable market positioning or client gains. **Cash Flow** The fundamental measure of the value of an asset is based on the prospective inflow of cash (amount, timing, and risk) relative to the initial capital outlay. Relatively less important is how the acquired asset is accounted for in the balance sheet. In other words, cash generation is what matters. This argument should appropriately shift the focus of discussion regarding corporate performance from goodwill accrual accounting to value metrics results (principally FCF) and to the adequacy of strategic acquisitions.The chart shows declines in the Revenues/Fixed Assets and FCF/Fixed Assets ratios over the four-year period. One likely reason is that acquisitions have, in time, gotten more expensive relative to Revenues and FCF. Conversely, earlier acquisitions were made in times of weak global conditions and discounted assets prices. Under those conditions earlier prices paid were favorable to the buyer.Declines in the ratios remind us of the law of diminishing marginal returns: One gets less FCF output per each additional unit of capital invested, other things remaining equal. Among the plausible explanations for the declines is that acquisition pricing could elevate as the profile of the acquired companies becomes increasingly prominent (in business mass, competitive position, and client and synergy opportunity) in a world of slow asset prices recovery. Substantial acquisition targets are less likely to sell at discounted pricing.Incidentally, acquisitions are of all sizes, but it appears that larger acquisitions (dollar price per company acquired) are becoming more frequent than in earlier years. In any event, acquisitions have enabled exceptionally rapid growth, in Revenues and in FCF, particularly during times of global economic distress and weaknesses in the insurance and financial industries. The alternative of pure organic growth at much reduced rates of Revenue and FCF would have been unpalatable. **Business Risk** By my own count, EBIX acquired 13 businesses during the three year period (2008-2010). This figure includes the acquisition of ADAM, announced in September and still in the process of closing. The aggregate investment amount for the period is estimated to be in excess of $270 million.To reinstate what we already know, EBIX's business model relies on operating ability to manage the business of the firm, and on investment expertise to make good acquisition decisions.By its nature mergers and acquisitions ((M&A)) is a different activity than organically supplying software services to clients in the insurance and financial industries. The skills and organizational requirements in these two activities is different: Origination of transactions is different, as are deal structuring, pricing, risk, and allocation of capital and other resources. The decision-making processes are very different.Results suggest that the firm is capably running these two major and complex businesses. They are carried out separately, yet are appropriately coordinated to achieve the overall corporate vision and sustained growth without unduly stretching the financial and skill resources of the firm. (Even if some portion of M&A activity is outsourced to outside parties, such as investment bankers and outside counsel, ultimately EBIX manages the process and makes the investment decisions.) Client familiarity, industry knowledge, and software technology expertise in the firm provide a powerful insight that facilitates the assessment of acquisitions -- products to be acquired, markets to be served, modularity to be constructed, and contributions to the solutions clients need.Such perspective and knowledge is conducive to making informed acquisition decisions, and to maintaining both operational risk (absorbing, rationalizing, and integrating acquired businesses) and investment risk (valuating potential acquisitions, structuring transactions, and sourcing capital), within the boundaries of the firm's core competence.Based on the foregoing, we consider that the business risk attached to the overall business is moderate. Diversification of revenues among clients and geographies, and recurrence of revenue streams (75%-80%), provide a stable and expanding source of EBIT and cash flow from operations (see chart). Adding strength is a client roster that includes many respected names in business (a sample list of the clients who signed contracts with the company during Q 9/10 is available [here](http://finance.yahoo.com/news/Ebix-Reports-72-YoY-Growth-bw-2789990786.html?x=0&.v=1) ). Regarding financial risk, the use of financial debt use is also moderate and well within the company's ability to manage it. **Return on Invested Capital (([ROIC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ROIC&selected=ROIC)) ))**According to our calculations, ROIC ranges between 15% - 20% for the four-year period. These ROIC returns exceed 10% estimated cost of capital. They reflect steady and substantial growth in shareholder value. - NOPAT = Net Operating Profit after Taxes; NOPAT = EBIT (1 -Tax Rate) - ROIC= NOPAT/Operating Capital - Operating Capital = Net Operating Working Capital ((NOWC)) + Operating Long Term Assets ((OLTA)). Operating Capital includes all the capital used in the business, including NOWC and in OLTA. OLTA includes all fixed assets, goodwill, and all other "acquisition assets." As discussed earlier, the overall business risk attached to the combined activity (organic growth + growth by acquisitions) and ROIC is perceived as moderate, and well within the boundaries of risk management competence. **Fundamental Value** EBIX's fundamental value is conservatively estimated at $25/share. This is based on $44 million of FYE12/10 FCF, 14% annual FCF growth in the three years following 2010, and 5% growth in perpetuity thereafter. The cost of capital estimate is 10%.The growth assumptions are conservative in comparison with historical results; the prospective 14% FCF growth is only a relatively small percentage of 54%, the average FCF growth for the last three years (2008-2010). Such relatively slow growth assumption substantially relaxes the requirement of continued fast-paced acquisition activity.Implicit in the value estimate is moderate risk resulting from a business model that emphasizes recurring revenues and produces ROIC consistently above the cost of capital. **Summary** Performance, as measured by the value metrics discussed and by the expanded infrastructure, is given a very high passing grade. The CEO's emphatic and exacting strategic message is fully backed up by results. EBIX has maintained a high rate of growth during trying economic times, while serving both the insurance and financial industries, who are themselves in the process of recovery. Acquisitions have enabled rapid growth while creating substantial shareholder value (ROIC > Cost of Capital).Characterizing EBIX performance are rapid growth in revenues and FCF, ROIC returns in excess of the firm's cost of capital, a client roster of prominent names in the marketplace, modest operational risk (stable, predictable, diversified and recurring source of revenues and cash flow), modest financial risk (relatively low use of debt, stable balance sheet), and an expanded infrastructure well suited to retain clients and support organic growth as the pace of global economic activity recovers.Expanded infrastructure deserves special mention. It is a capability that enhances the firm's competitive position and amplifies market relevance (product suite; geographic reach; skills and technology). The resulting market position is in line with EBIX's strategies and supportive of the company's vision and goal.EBIX's current market price (currently under $22/share) is below the conservatively estimated fundamental value ($25/share). **Disclosure:** Long EBIX.See also [SanDisk: Well Poised to Benefit From Smartphone and Tablet Wars](http://seekingalpha.com/article/240305-sandisk-well-poised-to-benefit-from-smartphone-and-tablet-wars?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 4.53149
Stock Price 2 days before: 9.73131
Stock Price 1 day before: 9.6551
Stock Price at release: 9.76049
Risk-Free Rate at release: 0.0013
| 0.745091 |
Symbol: BKE
Security: The Buckle, Inc.
Related Stocks/Topics: Markets
Title: Back-to-School Sales Propel Buckle’s Q3 Earnings; One-Time Dividend Announced (BKE)
Type: News
Publication: Dividend.com
Publication Author: Unknown
Date: 2010-11-18 09:06:00
Article: Apparel retailer The Buckle, Inc. ( **BKE** ) on Thursday posted better-than-expected third quarter earnings and announced a big one-time dividend.The Kearney, NE-based company reported third quarter net income of $34.4 million, or 73 cents per share, compared with $33.3 million, or 71 cents per share, in the year-ago period. On average, Wall Street analysts expected a smaller profit of 69 cents per share.As previously announced, Buckle's revenue rose 5% from last year to $243.3 million.The company also said its board of directors has authorized a special one-time dividend of $2.50 per share. The dividend will be paid to shareholders on record as of Dec. 3.Buckle shares surged $3.20, or +9.1%, in premarket trading Thursday. **The Bottom Line** Shares of The Buckle ( **BKE** ) have a 2.27% dividend yield, based on last night's closing stock price of $35.18. The stock has technical support in the $32 price area. If the shares can firm up, we see overhead resistance around the $38-$40 price levels.The Buckle, Inc. ( **BKE** ) 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: 34.0837
Stock Price 2 days before: 34.3339
Stock Price 1 day before: 34.03
Stock Price at release: 38.3714
Risk-Free Rate at release: 0.0013
| 37.9255 |
Symbol: JBLU
Security: JetBlue Airways Corporation
Related Stocks/Topics: Markets
Title: Second Chance to Buy JetBlue
Type: News
Publication: Unknown
Publication Author: Unknown
Date: 2010-11-19 03:52:00
Article: **JetBlue Airways Corporation** (NASDAQ: [JBLU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JBLU&selected=JBLU) ) - Since April, this stock has been consolidating within a rectangle with support at $5.40 and resistance at $6.80.On Oct. 27, at $27, the [Trade of the Day](http://www.investorplace.com/21586/trade-of-the-day-jetblue-airways-corporation-jblu/) said, "Last week the stock broke from the rectangle on high volume. The stochastic indicator flashed a buy signal that was preceded by six weeks of unusually heavy buying. The target for JBLU is $8.30." With the recent market sell-off we issued a buy under price of $6.80. Our trading target is still $8.30.[Trade of the Day - JBLU Stock Chart](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)[](http://www.investorplace.com/wp-content/uploads/2010/10/dmo-chart-key11.gif)[](http://www.investorplace.com/wp-content/uploads/2010/10/dmo-chart-key11.gif) If you have questions or comments for Sam Collins, please e-mail him at [[email protected]](mailto:[email protected]) .
Stock Price 4 days before: 6.84528
Stock Price 2 days before: 6.65106
Stock Price 1 day before: 6.82977
Stock Price at release: 6.71552
Risk-Free Rate at release: 0.0012
| 6.59941 |
Symbol: SIGA
Security: SIGA Technologies, Inc.
Related Stocks/Topics: GHL|Markets|MNKD|LL|WCC|JOE
Title: Squeeze ideas: Highly Shorted Stocks With Improving Analyst Sentiment
Type: News
Publication: Kapitall
Publication Author: Unknown
Date: 2010-11-19 04:28:00
Article: Compiled by Luis Gonzalez: The following is a list of stocks with high short float. Short-sellers seem to think there's more downside to these names, but Wall Street analysts disagree.All of these stocks have seen improving analyst sentiment over the past three months. That said, analysts remain cautious on most of these names, but the analyst trends suggest that at least some of the bad news is being priced in. Analyst ratings are presented on a linear scale, where 1 = "Strong Buy" and 5 = "Strong Sell". All of these stocks have seen their ratings move closer to 1 over the past three months, i.e. improving analyst sentiment.Wall Street analysts seem to think there's a short squeeze possibility with these names. What do you think? Full details below.Analyst ratings sourced from Reuters, short float data sourced from Finviz.Analyze These Ideas (Tools Will Open In A New Window) [Image](http://i1132.photobucket.com/albums/m562/RollingStone12345/KapitallK.png)1. Access a [performance overview](https://www.kapitall.com/?SSS_FD996CC8634344AA1B7DA1F8E4FDB131) of all stocks mentioned below2. See how [analyst ratings have changed](https://www.kapitall.com/?SSS_DBBA64F5942D1176121D3BD5EDD839AA) for stocks mentioned below 3. Evaluate [management data](https://www.kapitall.com/?SSS_8B230F94F547D6500EF8A6331233FB44) on all stocks mentioned belowThe list has been sorted by the percentage change in analyst sentiment. **1. PHH Corporation (PHH):** Credit Services Industry. Market cap of $1.12B. Analyst rating changed from 2.5 to 1.5 over the last three months. Short float at 18.13%, which implies a short ratio of 11.78 days. The stock has gained 38.39% over the last year. **2. SIGA Technologies, Inc. (SIGA):** Drug Manufacturer. Market cap of $607.5M. Analyst rating changed from 2.5 to 1.5 over the last three months. Short float at 16.83%, which implies a short ratio of 8.62 days. The stock has gained 81.4% over the last year. **3. AnnTaylor Stores Corp. (ANN):**Apparel Stores Industry. Market cap of $1.4B. Analyst rating changed from 2.5 to 2.07 over the last three months. Short float at 15.68%, which implies a short ratio of 4.41 days. The stock has gained 72.35% over the last year. **4. Harbin Electric, Inc. (HRBN):** Industrial Electrical Equipment Industry. Market cap of $593.12M. Analyst rating changed from 1.5 to 1.25 over the last three months. Short float at 21.41%, which implies a short ratio of 7.97 days. The stock has lost -7.59% over the last year. **5. InterOil Corporation (IOC):** Oil & Gas Refining & Marketing Industry. Market cap of $3.35B. Analyst rating changed from 2.0 to 1.67 over the last three months. Short float at 19.45%, which implies a short ratio of 11.2 days. The stock has gained 48.18% over the last year. **6. MannKind Corp. (MNKD):**Biotechnology Industry. Market cap of $758.6M. Analyst rating changed from 2.89 to 2.5 over the last three months. Short float at 21.15%, which implies a short ratio of 9.01 days. The stock has lost -15.91% over the last year. **7. Greenhill & Co., Inc. (GHL):** Investment Brokerage Industry. Market cap of $2.29B. Analyst rating changed from 2.67 to 2.33 over the last three months. Short float at 15.36%, which implies a short ratio of 16.35 days. The stock has lost -3.83% over the last year. **8. Gaylord Entertainment Co. (GET):** Lodging Industry. Market cap of $1.57B. Analyst rating changed from 2.09 to 1.83 over the last three months. Short float at 17.29%, which implies a short ratio of 13.34 days. The stock has gained 87.04% over the last year. **9. Lumber Liquidators Holdings, Inc. (LL):** Home Improvement Stores Industry. Market cap of $608.45M. Analyst rating changed from 2.89 to 2.55 over the last three months. Short float at 20.28%, which implies a short ratio of 11.82 days. The stock has lost -11.45% over the last year. **10. The St. Joe Company (JOE):** Real Estate Development Industry. Market cap of $1.66B. Analyst rating changed from 2.25 to 2 over the last three months. Short float at 23.59%, which implies a short ratio of 16.34 days. The stock has lost -32.34% over the last year. **11. VIVUS Inc. (VVUS):** Biotechnology Industry. Market cap of $534.36M. Analyst rating changed from 3 to 2.67 over the last three months. Short float at 15.93%, which implies a short ratio of 3.72 days. The stock has lost -24.97% over the last year. **12. McMoRan Exploration Co. (MMR):** Independent Oil & Gas Industry. Market cap of $1.56B. Analyst rating changed from 2.38 to 2.12 over the last three months. Short float at 19.75%, which implies a short ratio of 5.06 days. The stock has gained 123.27% over the last year. **13. STEC, Inc. (STEC):** Data Storage Devices Industry. Market cap of $764.52M. Analyst rating changed from 2.85 to 2.55 over the last three months. Short float at 18.64%, which implies a short ratio of 3.33 days. The stock has gained 13.7% over the last year. **14. Bio-Reference Laboratories Inc. (BRLI):**Medical Laboratories & Research Industry. Market cap of $576.08M. Analyst rating changed from 1.83 to 1.67 over the last three months. Short float at 15.8%, which implies a short ratio of 21.74 days. The stock has gained 28.25% over the last year. **15. WESCO International Inc. (WCC):** Industrial Equipment Wholesale Industry. Market cap of $2.23B. Analyst rating changed from 2 to 1.85 over the last three months. Short float at 17.53%, which implies a short ratio of 12.41 days. The stock has gained 71.26% over the last year.
Stock Price 4 days before: 12.1469
Stock Price 2 days before: 11.6841
Stock Price 1 day before: 11.528
Stock Price at release: 12.7534
Risk-Free Rate at release: 0.0012
| 13.3587 |
Symbol: MNKD
Security: MannKind Corporation
Related Stocks/Topics: Unknown
Title: Squeeze ideas: Highly Shorted Stocks With Improving Analyst Sentiment
Type: News
Publication: Kapitall
Publication Author: Unknown
Date: 2010-11-19 04:28:00
Article: Compiled by Luis Gonzalez: The following is a list of stocks with high short float. Short-sellers seem to think there's more downside to these names, but Wall Street analysts disagree.All of these stocks have seen improving analyst sentiment over the past three months. That said, analysts remain cautious on most of these names, but the analyst trends suggest that at least some of the bad news is being priced in. Analyst ratings are presented on a linear scale, where 1 = "Strong Buy" and 5 = "Strong Sell". All of these stocks have seen their ratings move closer to 1 over the past three months, i.e. improving analyst sentiment.Wall Street analysts seem to think there's a short squeeze possibility with these names. What do you think? Full details below.Analyst ratings sourced from Reuters, short float data sourced from Finviz.Analyze These Ideas (Tools Will Open In A New Window) [Image](http://i1132.photobucket.com/albums/m562/RollingStone12345/KapitallK.png)1. Access a [performance overview](https://www.kapitall.com/?SSS_FD996CC8634344AA1B7DA1F8E4FDB131) of all stocks mentioned below2. See how [analyst ratings have changed](https://www.kapitall.com/?SSS_DBBA64F5942D1176121D3BD5EDD839AA) for stocks mentioned below 3. Evaluate [management data](https://www.kapitall.com/?SSS_8B230F94F547D6500EF8A6331233FB44) on all stocks mentioned belowThe list has been sorted by the percentage change in analyst sentiment. **1. PHH Corporation (PHH):** Credit Services Industry. Market cap of $1.12B. Analyst rating changed from 2.5 to 1.5 over the last three months. Short float at 18.13%, which implies a short ratio of 11.78 days. The stock has gained 38.39% over the last year. **2. SIGA Technologies, Inc. (SIGA):** Drug Manufacturer. Market cap of $607.5M. Analyst rating changed from 2.5 to 1.5 over the last three months. Short float at 16.83%, which implies a short ratio of 8.62 days. The stock has gained 81.4% over the last year. **3. AnnTaylor Stores Corp. (ANN):**Apparel Stores Industry. Market cap of $1.4B. Analyst rating changed from 2.5 to 2.07 over the last three months. Short float at 15.68%, which implies a short ratio of 4.41 days. The stock has gained 72.35% over the last year. **4. Harbin Electric, Inc. (HRBN):** Industrial Electrical Equipment Industry. Market cap of $593.12M. Analyst rating changed from 1.5 to 1.25 over the last three months. Short float at 21.41%, which implies a short ratio of 7.97 days. The stock has lost -7.59% over the last year. **5. InterOil Corporation (IOC):** Oil & Gas Refining & Marketing Industry. Market cap of $3.35B. Analyst rating changed from 2.0 to 1.67 over the last three months. Short float at 19.45%, which implies a short ratio of 11.2 days. The stock has gained 48.18% over the last year. **6. MannKind Corp. (MNKD):**Biotechnology Industry. Market cap of $758.6M. Analyst rating changed from 2.89 to 2.5 over the last three months. Short float at 21.15%, which implies a short ratio of 9.01 days. The stock has lost -15.91% over the last year. **7. Greenhill & Co., Inc. (GHL):** Investment Brokerage Industry. Market cap of $2.29B. Analyst rating changed from 2.67 to 2.33 over the last three months. Short float at 15.36%, which implies a short ratio of 16.35 days. The stock has lost -3.83% over the last year. **8. Gaylord Entertainment Co. (GET):** Lodging Industry. Market cap of $1.57B. Analyst rating changed from 2.09 to 1.83 over the last three months. Short float at 17.29%, which implies a short ratio of 13.34 days. The stock has gained 87.04% over the last year. **9. Lumber Liquidators Holdings, Inc. (LL):** Home Improvement Stores Industry. Market cap of $608.45M. Analyst rating changed from 2.89 to 2.55 over the last three months. Short float at 20.28%, which implies a short ratio of 11.82 days. The stock has lost -11.45% over the last year. **10. The St. Joe Company (JOE):** Real Estate Development Industry. Market cap of $1.66B. Analyst rating changed from 2.25 to 2 over the last three months. Short float at 23.59%, which implies a short ratio of 16.34 days. The stock has lost -32.34% over the last year. **11. VIVUS Inc. (VVUS):** Biotechnology Industry. Market cap of $534.36M. Analyst rating changed from 3 to 2.67 over the last three months. Short float at 15.93%, which implies a short ratio of 3.72 days. The stock has lost -24.97% over the last year. **12. McMoRan Exploration Co. (MMR):** Independent Oil & Gas Industry. Market cap of $1.56B. Analyst rating changed from 2.38 to 2.12 over the last three months. Short float at 19.75%, which implies a short ratio of 5.06 days. The stock has gained 123.27% over the last year. **13. STEC, Inc. (STEC):** Data Storage Devices Industry. Market cap of $764.52M. Analyst rating changed from 2.85 to 2.55 over the last three months. Short float at 18.64%, which implies a short ratio of 3.33 days. The stock has gained 13.7% over the last year. **14. Bio-Reference Laboratories Inc. (BRLI):**Medical Laboratories & Research Industry. Market cap of $576.08M. Analyst rating changed from 1.83 to 1.67 over the last three months. Short float at 15.8%, which implies a short ratio of 21.74 days. The stock has gained 28.25% over the last year. **15. WESCO International Inc. (WCC):** Industrial Equipment Wholesale Industry. Market cap of $2.23B. Analyst rating changed from 2 to 1.85 over the last three months. Short float at 17.53%, which implies a short ratio of 12.41 days. The stock has gained 71.26% over the last year.
Stock Price 4 days before: 5.79669
Stock Price 2 days before: 6.09581
Stock Price 1 day before: 6.12912
Stock Price at release: 6.10761
Risk-Free Rate at release: 0.0012
| 8.01229 |
Symbol: UPBD
Security: Upbound Group, Inc.
Related Stocks/Topics: Markets|KIM
Title: How call selling can make income
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-11-19 07:15:00
Article: Options volume surged in three little-traded stocks yesterday as an investor used the derivatives to generate an income stream.About 5,800 November 19 calls were purchased in CB Richard Ellis Group for $0.35 against existing open interest. At the same time, a block of more than 9,000 December 19 calls was sold for $0.80 and $0.85. Total options volume in the real-estate management company was 34 times greater than average. [CBG](http://www.optionmonster.com/cms/commentary/images/cbgpre111910.png) The trade was probably the work of an investor who's been selling calls against a long position in the shares to earn income. Yesterday's transaction netted about $0.50. If the trader pulls that off every month, the strategy will earn about 30 percent from writing calls even if the underlying stock doesn't appreciate 1 cent.The risk to this covered call is that losses will occur if CBG experiences a sharp correction because the investor owns the stock. (See our Education section) Shares rose 0.32 percent to $18.97 yesterday and are up 13 percent in the last three months.A similar option trade occurred in Rent-A-Center, which climbed 1.38 percent to $27.15. This time, the investor made just $0.15, closing out a position in 2,629 November 25s for $2.70 and selling a new block for $2.85. The contracts were deeper in the money, so there is less risk of downside than the CBG trade.Perhaps the most interesting move occurred in Kimco Realty, which owns more than 900 shopping centers and strip malls across North and South America. The investor rolled a short position in the November 15 calls to the December 15 strike for a net $0.15. The company also pays an annual dividend of $0.72, so he or she could earn total income of about $2.50 a year even if stock falls more than $1 to $15.Based on its closing price of $16.23 yesterday, that's an annualized return of about 15 percent--pretty attractive in a market where Treasuries are yielding less than one-fifth of that.(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: 0.0012
| 0 |
Symbol: AMTD
Security: AMTD IDEA Group
Related Stocks/Topics: Markets|SCHW|IBKR|EPS
Title: Investors are Piling Into the Market -- Here are the Stocks That Will Benefit the Most
Type: News
Publication: David Sterman
Publication Author: Unknown
Date: 2010-11-19 09:00:00
Article: Here's a fairly simple investment premise: if the stock market rises +10% or 15% in the next six months, one sector will rise +30% or even +50%. That's because a rising stock market tends to bring out increased interest from individual investors. And they bring lots more business to online brokers. Indeed, I just wrote how individual investor sentiment is now at [its highest level in nearly four years](http://www.streetauthority.com/news/bad-news-stocks-are-loved-457816) , and these folks are getting bullish simply because the market has been on the rebound since late August.Need more proof? The major online brokers just reported an impressive sequential spike in trading volume, as measured by Daily Average Revenue Trading (DART). **E*Trade (Nasdaq: [EFTC](http://www.streetauthority.com/stocks/EFTC) )** and **TD Ameritrade (Nasdaq: [AMTD](http://www.streetauthority.com/stocks/AMTD) )** just saw +14% to +15% sequential spikes in October, while **Charles Schwab (Nasdaq: [SCHW](http://www.streetauthority.com/stocks/SCHW) )** , **Interactive Brokers (Nasdaq: [IBKR](http://www.streetauthority.com/stocks/IBKR) )** and **TradeStation (Nasdaq: [TRAD](http://www.streetauthority.com/stocks/TRAD) )** saw mid single-digit sequential increases. **Then and now** Two major changes have taken place in the decade since individual investors were a major force in the market. On the one hand, DARTs are well below previous levels, despite the recent monthly [uptick](http://investinganswers.com/term/uptick-781) . But all of the firms have many more accounts then they once did -- in fact, all of the online brokers have at least +30% more clients than they did at the end of 2007. So, if individual investors start to become more active (though still below the levels of the dot-com boom), then DARTs would soar, and so would sales and profits for these firms.It's too soon to call October's DARTs the start of a trend. The metric surged in the spring but had been on the wane thanks to the market swoon this summer. And though October trading activity was higher than September's, it's still well down from the spring peak.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) -- David StermanBut if the recent bullish individual investor sentiment continues to stay aloft ([which you can track here](http://www.aaii.com/sentimentsurvey)) ), then DARTs are likely to rebound in tandem, perhaps back to levels seen last May. Yet the analysts that follow the industry are unlikely to report on such bullishness until the data come out. That's why you should track the investor sentiment by the week instead of waiting until the middle of the month to find out how the previous month fared.And you need to ignore industry analysts completely if you are really to see the big picture, which as noted earlier, is all about a bulked-up client base at each of these firms. Let's take Charles Schwab as an example. The company picked up roughly 350,000 net new client accounts in 2008 and another 300,000 in 2009. Yet Schwab's revenue is barely growing thanks to a combination of relatively light trading volume this year and smaller interest spreads on its fixed income products. But if you assume that Schwab's revenue per customer will rebound in 2011 to 2008 levels, then Schwab's sales would spike roughly +30%, and per share profits would likely rise a lot more than that. The forecasts don't incorporate such an outlook just yet. Schwab is expected to generate $4.7 billion in revenue next year, roughly -7% below 2008 levels, even though Schwab's client base is now roughly +20% to +25% larger. Looked at another way, analysts think Schwab can earn roughly $0.80 a share this year, but if DARTs rebound in 2011 and interest rates rise in 2012 (which boosts Schwab's profit margins), then you're probably looking at [EPS](http://investinganswers.com/term/earnings-share-eps-1003) much closer to $2.For long-term investors, it pays to see how Schwab's shares have responded to previous upturns in trading. Shares fell -45% in 2001 and another -30% in 2002 before the company saw a rebound in operating trends. At the time, Schwab saw [net income](http://investinganswers.com/term/net-income-808) , which had surpassed $700 million in 2000, fall to around $100 million in 2002. By 2007, net income had surged all the way to $2.4 billion. Although it took a while for shares to respond, they finally rose more than +20% in 2005, more than +30% in 2006 and more than +40% in 2007.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) -- David StermanA similarly bullish long-term case can be made for E*Trade. Right now, E*Trade is barely profitable, expected to eke out a few pennies in profit this year. Per share profit should exceed $0.50 next year simply because the company's ill-fated move into mortgages will no longer be a drag on the company by next year. The company has also seen a solid rebound in the size of its client base. And by math, if those clients boost their trading levels by +15% to +20% next year -- not inconceivable in light of rising investor sentiment -- then E*Trade's [earnings per share ( ](http://investinganswers.com/term/earnings-share-eps-1003) [EPS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPS&selected=EPS) ) could come in closer to $1. The outlook for 2012 and 2013 would be brighter still if the [bull market](http://investinganswers.com/term/bull-market-922) continues. **Action to Take -->** If individual investors get off the sidelines and back into the market, these companies could become profit powerhouses. If weekly investor sentiment stays high in coming weeks, you may want to get in on these names before the analysts start to upgrade their ratings. [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: 17.2798
Stock Price 2 days before: 17.1799
Stock Price 1 day before: 17.5048
Stock Price at release: 17.4408
Risk-Free Rate at release: 0.0012
| 18.6781 |
Symbol: DX
Security: Dynex Capital, Inc.
Related Stocks/Topics: GOOG|Markets|BMY|PFE
Title: Mid-Day Update: Stocks Trading Flat to Lower as Investor Concern Turns to China Monetary Actions
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-11-19 12:06:00
Article: Here's where markets stand at mid-day:-NYSE down 13.05 (-0.17%) to 7,606.89-DJIA down 18.13 (-0.16%) to 11,163.10-S&P 500 down 1.84 (-0.15%) to 1,194.85-Nasdaq down 2.40 (-0.10%) to 2,511.82GLOBAL SENTIMENTHang Seng down 0.13%Nikkei up 0.09%FTSE down 0.62%MID-DAY NYSE INDEX WATCHNYSE Energy down 0.43% at 11,665.48NYSE Financial down 0.51% at 4,757.34NYSE Health Care down 0.28% at 6,378.16NYSE Arca Tech 100 up 0.67% at 1,033.25UPSIDE MOVERS(+) DELL (+0.2%) gains on earnings.(+) MELA (+97%) jumps on drug developments.(+) CRM (+15.8%) continues evening gain after Q3 beat.(+) LVS (+3.5%) gains as Moody's hikes credit rating.(+) ANN (+8.4%) gains on earnings.DOWNSIDE MOVERS(-/+) F (+1.0%), GM (-0.8%) down in wake of GM IPO, mixed analyst notes.(-) IRE (-5.6%) down as focus on Dublin bailout persists.MARKET DIRECTIONStocks are trading in a narrow range around the even mark, as China moves to tighten its money supply to cool the economy and control inflation and new concerns surface over efforts to quell the Irish debt crisis, which are off-setting supportive earnings and M&A speculation. China's central bank hiked the reserve requirement ratio for banks by 50 basis points. Federal Reserve Chairman Ben Bernanke, facing global criticism for the Fed's latest bond-buying program to recharge U.S. growth, tossed his own criticism back at Beijing's policy to undervalue its currency against the dollar.Meanwhile, the dollar is moving higher against a basket of foreign currencies. The U.S. Dollar Index ([DX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DX&selected=DX)) ) is up 0.28%, or $0.03, to $10.66.In company news, Google ([GOOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GOOG&selected=GOOG)) ) shares are off session lows but still in negative territory after Bloomberg reported the the Internet search company agreed to improve its handling of data to prevent a repeat of the accidental collection of information from wireless networks by its Street View vehicles. The agreement ends the privacy investigation in the U.K., that country's privacy regulator reportedly said..Shares of Pfizer ([PFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PFE&selected=PFE)) ) and Bristol-Myers Squibb ([BMY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BMY&selected=BMY)) ) are down following news the two stopped a trial of their experimental blood thinner after incidents of increased bleeding in patients outweighed benefits for patients who recently had a heart attack, or bad chest pain. The drug--named apixaban--is being tested to stop heat complications in patents with acute coronary syndrome.Allied Irish Banks ([AIB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AIB&selected=AIB)) ) ADRs are trading lower after it said deposits declined 17% this year as customers pulled money out amid the ongoing debt crisis in that country and around Europe. Deposits at the bank--Ireland's second largest--declined by about $17.8 billion euros since the beginning of the year. The bank said it is increasing its reliance on monetary authorities amid the challenging funding conditions. Boston Scientific (BSX) shares are higher after the company's chief executive said he hoped to convince investors that it can increase profitability over the next two years, Reuters reported, citing the company's first analyst meeting in four years. "Sales can't grow much more than single digits," said CEO Ray Elliott. "The same is not true for profitability."Del Monte Foods (DLM) is higher on reports KKR (KKR) is preparing an $18.50 a share offer for the company. Sources say the firms have been talking for some time and were hoping to wrap up the deal before Del Monte reports its quarterly earnings on Dec. 2.Shares of General Motors (GM), which provided lift to the market yesterday, traded down less than $1 from its $33 IPO price yesterday. GM advanced as much as 9.1% during its first day of trading since filing for bankruptcy last year. The U.S. Treasury and other GM owners sold $15.8 billion in common shares at an IPO price of $33 each, which was the second-largest U.S. IPO on record.KeyCorp (KEY) shares are down following news the bank--the second largest in Ohio--has appointed Beth Mooney CEO. She is the first woman to lead a Top 20 U.S. bank, reported Bloomberg. Mooney was the vice chairman of KeyCorp and head of community banking.ExxonMobil (XOM) put a crude oil unit at its Trecate refinery in Italy "back in operation" after a fire more than two months ago, Bloomberg reported. The plant is slowly resuming normal production, repairs are completed, technical checks have been made and controls have been put in place, the report said. In other earnings news:--Cost Plus (CPWM) says Q3 sales were $194.6 million, a 7.3% increase from a year ago. Net loss was $0.38 per share, down from a loss of $1 a year ago. Q4 sales are seen between $324 million to $330 million. EarningsWhispers says the consensus is for $329 million.--Dell (DELL) is higher after the computer maker late Thursday reported its Q3 profit more than doubled and revenue surged to $15.4 billion from $12.9 billion.--Foot Locker (FL) is higher fueled by Q3 net income of $52 million, or $0.33 per share, easily beating an adjusted $16-million gain last year. The Street view was for a $0.17 per share profit, according toThomson Reuters.--Salesforce.com (CRM) reported Q3 non-GAAP EPS of 32 cents a share compared to Street estimates of 31 cents a share. The company reported revenue of $429 million compared to Street estimates of $410.46 million. Non-GAAP diluted EPS in Q4 is expected to be in the range of approximately $0.27 to approximately $0.28. The Street is at 28 cents a share.Commodities are lower as December gold contracts are down $2, or 0.13%, to $1,351 an ounce while January crude contacts are down 0.75%, or $0.60, at $81.82 a barrel. In energy ETFs, the United States Oil Fund (USO) is down 1.41% to $35 and the United States Natural Gas fund (UNG) is up 1.4% to $5.85In precious metal ETFs, the SPDR Gold Trust (GLD) is down 0.12% to $131.93. Market Vectors Gold Miners (GDX) is up 0.42% to $59.28. iShares Silver Trust (SLV) is down 0.11% to $26.32. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
Stock Price 4 days before: 10.6705
Stock Price 2 days before: 10.6137
Stock Price 1 day before: 10.6632
Stock Price at release: 10.66
Risk-Free Rate at release: 0.0012
| 10.6392 |
Symbol: DX
Security: Dynex Capital, Inc.
Related Stocks/Topics: GOOG|Markets|BMY|PFE
Title: Stocks Near Even as Investors Weigh China Bank Policy, Irish Debt Crisis
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-11-19 12:18:00
Article: Stocks are trading in a narrow range around the even mark, as China moves to tighten its money supply to cool the economy and control inflation and new concerns surface over efforts to quell the Irish debt crisis, which are off-setting supportive earnings and M&A speculation.China's central bank hiked the reserve requirement ratio for banks by 50 basis points. Federal Reserve Chairman Ben Bernanke, facing global criticism for the Fed's latest bond-buying program to recharge U.S. growth, tossed his own criticism back at Beijing's policy to undervalue its currency against the dollar. Meanwhile, the dollar is moving higher against a basket of foreign currencies. The U.S. Dollar Index ([DX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DX&selected=DX)) ) is up 0.28%, or $0.03, to $10.66.In company news, Google ([GOOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GOOG&selected=GOOG)) ) shares are off session lows but still in negative territory after Bloomberg reported the the Internet search company agreed to improve its handling of data to prevent a repeat of the accidental collection of information from wireless networks by its Street View vehicles. The agreement ends the privacy investigation in the U.K., that country's privacy regulator reportedly said..Shares of Pfizer ([PFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PFE&selected=PFE)) ) and Bristol-Myers Squibb ([BMY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BMY&selected=BMY)) ) are down following news the two stopped a trial of their experimental blood thinner after incidents of increased bleeding in patients outweighed benefits for patients who recently had a heart attack, or bad chest pain. The drug--named apixaban--is being tested to stop heat complications in patents with acute coronary syndrome.Allied Irish Banks ([AIB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AIB&selected=AIB)) ) ADRs are trading lower after it said deposits declined 17% this year as customers pulled money out amid the ongoing debt crisis in that country and around Europe. Deposits at the bank--Ireland's second largest--declined by about $17.8 billion euros since the beginning of the year. The bank said it is increasing its reliance on monetary authorities amid the challenging funding conditions.Boston Scientific (BSX) shares are higher after the company's chief executive said he hoped to convince investors that it can increase profitability over the next two years, Reuters reported, citing the company's first analyst meeting in four years. "Sales can't grow much more than single digits," said CEO Ray Elliott. "The same is not true for profitability." Del Monte Foods (DLM) is higher on reports KKR (KKR) is preparing an $18.50 a share offer for the company. Sources say the firms have been talking for some time and were hoping to wrap up the deal before Del Monte reports its quarterly earnings on Dec. 2.Shares of General Motors (GM), which provided lift to the market yesterday, traded down less than $1 from its $33 IPO price yesterday. GM advanced as much as 9.1% during its first day of trading since filing for bankruptcy last year. The U.S. Treasury and other GM owners sold $15.8 billion in common shares at an IPO price of $33 each, which was the second-largest U.S. IPO on record.KeyCorp (KEY) shares are down following news the bank--the second largest in Ohio--has appointed Beth Mooney CEO. She is the first woman to lead a Top 20 U.S. bank, reported Bloomberg. Mooney was the vice chairman of KeyCorp and head of community banking.ExxonMobil (XOM) put a crude oil unit at its Trecate refinery in Italy "back in operation" after a fire more than two months ago, Bloomberg reported. The plant is slowly resuming normal production, repairs are completed, technical checks have been made and controls have been put in place, the report said.In other earnings news:--Cost Plus (CPWM) says Q3 sales were $194.6 million, a 7.3% increase from a year ago. Net loss was $0.38 per share, down from a loss of $1 a year ago. Q4 sales are seen between $324 million to $330 million. EarningsWhispers says the consensus is for $329 million. --Dell (DELL) is higher after the computer maker late Thursday reported its Q3 profit more than doubled and revenue surged to $15.4 billion from $12.9 billion.--Foot Locker (FL) is higher fueled by Q3 net income of $52 million, or $0.33 per share, easily beating an adjusted $16-million gain last year. The Street view was for a $0.17 per share profit, according toThomson Reuters.--Salesforce.com (CRM) reported Q3 non-GAAP EPS of 32 cents a share compared to Street estimates of 31 cents a share. The company reported revenue of $429 million compared to Street estimates of $410.46 million. Non-GAAP diluted EPS in Q4 is expected to be in the range of approximately $0.27 to approximately $0.28. The Street is at 28 cents a share.Commodities are lower as December gold contracts are down $2, or 0.13%, to $1,351 an ounce while January crude contacts are down 0.75%, or $0.60, at $81.82 a barrel.In energy ETFs, the United States Oil Fund (USO) is down 1.41% to $35 and the United States Natural Gas fund (UNG) is up 1.4% to $5.85 In precious metal ETFs, the SPDR Gold Trust (GLD) is down 0.12% to $131.93. Market Vectors Gold Miners (GDX) is up 0.42% to $59.28. iShares Silver Trust (SLV) is down 0.11% to $26.32. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
Stock Price 4 days before: 10.6757
Stock Price 2 days before: 10.6145
Stock Price 1 day before: 10.6735
Stock Price at release: 10.6595
Risk-Free Rate at release: 0.0012
| 10.6392 |
Symbol: WABC
Security: Westamerica Bancorporation
Related Stocks/Topics: EXC|Markets|CAG
Title: 2011: The Year of Living Dangerously?
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-11-22 03:34:00
Article: ** [Joseph L. Shaefer](https://www.nasdaq.com/articles/www.stanfordwealth.com) submits:**There are three times when a bear market is particularly dangerous: - At the beginning, - During, - At the end. At or near the beginning, there is typically a waterfall on more than one occasion as investors rush to sell everything and anything. They've seen many, most, or all of their gains evaporate as the talking heads intone "this is just a normal correction." Since most investors don't join in the bull market until it's already up 40% or 50%, by the time it's "officially" a bear and declines 20%, they barely break even. (Starting at $100 to reach $140, then losing 20% of $140 takes them back to $112. And they still have a sizable decline ahead to donate the $12 profit to cooler heads…) During the decline, there are many head fakes during which time the market soars ahead, making investors think the worst is behind them. They are called "sucker rallies" for a reason. Compared to the highs before the decline, things look cheap - but only compared to the highs. So people get suckered in, have their hopes dashed, after which we reach the final phase of the bear.At the end, most investors give up on the head fakes and sucker rallies and tell their brokers to sell everything that remains before the market declines even further. And that blowout selling is my - and your - cue to start buying. Notice I said "to start buying." Nothing goes straight down or straight up. There's no rush. Panicked investors will be happy to sell to us on any new little blip down. It's our job to accommodate them and begin accumulating when the worst is behind us.During a bear, some sectors will emerge as investor favorites. If the bear is long enough, those trends can be played on the long side. This time around, it might be the energy stocks or the agriculture stocks. It could be timber or other basics as the emerging giants retrench, tighten their belts, then go for another round of growth. It might be precious metals, given our government's insane headlong rush to devalue our once-proud dollar - though metals are a very crowded trade today. We won't know where the pockets of strength are until we are there. The secret is to buy value cheap and to keep some cash available for buying more as we have corrections and confirmation of the strongest sectors.I purchased "insurance" in 2010 in the form of inverse ETFs. I used them as a hedge against yet another major decline. As it happened - aren't we all geniuses with the certainty of hindsight? - I would have made more money going long without any protective insurance. But the idea of insurance is that you are protecting yourself, while hoping you never have to call the insurance company. I recently unwound all these positions and will now use a cash buffer, buy intrinsic value companies, and stress the sectors I believe will do best going forward as our "insurance" rather than maintain any inverse ETF hedges. (Except one: I still believe the inverse Treasury play, whether via [[TBT]] or [[TBF]] will work out well for the patient!) So what sectors are we nibbling at these days? Energy, especially natural gas. Agriculture and food companies bought right. Timber firms with fabulous real estate holdings and even a couple of deeply-depressed land companies in desirable demographic/geographic locations. Uranium firms and platinum metals group companies. Pollution control firms (desperately needed in nations like China and India). Companies that clean up filthy water (ditto). Regional financial firms. Health care companies. And the big engineering firms (and some utilities with deep experience and knowledge) that design and build coal, gas and nuclear plants for electricity generation and refineries for oil and natural gas. But let's not put the cart before the horse. I'm not rushing into the market. Just trying to do what we always do - buy quality firms in unpopular sectors when their valuation indicates a low downside risk. If we can get good income that is at a payout ratio that indicates a good likelihood of continuing or even being raised, so much the better. I do not believe the bear is toothless just yet. I believe 2011 will be a dangerous year to commit completely to one side of the market or the other. Smart, steady accumulation when others are uninterested will likely yield the best results. I expect the further sideways action that typifies bear markets (rather than the steady downward decline that most people envision) to continue into 2011. ( (See more on this reality in the charts posted [here](http://seekingalpha.com/article/204103-seeking-alpha-finding-zen) .) ) But I also believe that we are closer to the end of this bear than the beginning or the middle. If you agree, here are a few firms we are looking at that you may want to consider for your own due diligence, as well: - Encana Corp. ([ECA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ECA&selected=ECA)) ) 2 ½ points above its 52-week low. PE 10. Yield 2.8%. - ConAgra Foods ([CAG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CAG&selected=CAG)) ) ½ point above its 52-week low. PE 13. Yield 4.4%. - Plum Creek ([PCL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PCL&selected=PCL)) ) 3 points above its 52-week low. PE 34. Yield 4.6%. - Exelon Corp ([EXC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EXC&selected=EXC)) ) - WestAmerica Bank ([WABC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WABC&selected=WABC)) ) 1 ½ points above its 52-week low. PE 15. Yield 2.9%. - CML Healthcare Income Fund (CMHIF.PK) 2 ½ points above its 52-week low. PE 23. Yield 9.0%. - Chesapeake Energy (CHK) 3 points above its 52-week low. PE 16. Yield 1.3%. - Citizens Holding (bank) (CIZN) 2 points above its 52-week low. PE 13. Yield 4.5%. And, for more aggressive portfolios / positions: - Eli Lilly (LLY) 2 points above its 52-week low. PE 8. Yield 5.7%. - Petrobras (PBR) - China Agritech (CAGC) **Author's Disclosure**: We and/or those clients for whom it is appropriate are now long ECA, CAG,PCL, EXC, CMHIF, CIZN and CAGC. We are reviewing the others, and more, for possible inclusion in our portfolios. **The Fine Print**:****As Registered Investment Advisors, we see it as our responsibility to advise the following: we do not know your personal financial situation, so the information contained in this communiqué represents the opinions of the staff of Stanford Wealth Management, and should not be construed as personalized investment advice.Past performance is no guarantee of future results, rather an obvious statement but clearly too often unheeded judging by the number of investors who buy the current #1 mutual fund only to watch it plummet next month.We encourage you to do your own research on individual issues we recommend for your analysis to see if they might be of value in your own investing. We take our responsibility to proffer intelligent commentary seriously, but it should not be assumed that investing in any securities we are investing in will always be profitable. We do our best to get it right, and we "eat our own cooking," but we could be wrong, hence our full disclosure as to whether we own or are buying the investments we write about.See also [Consumer Sentiment Buoyed by Stocks?](http://seekingalpha.com/article/241216-consumer-sentiment-buoyed-by-stocks?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 50.6683
Stock Price 2 days before: 50.559
Stock Price 1 day before: 50.4318
Stock Price at release: 50.4231
Risk-Free Rate at release: 0.0012
| 54.7606 |
Symbol: EDN
Security: Empresa Distribuidora y Comercializadora Norte SA
Related Stocks/Topics: OSIS|Markets|GGB|ORN|RBCN|CLH
Title: Contrarian Ideas: 15 High Growth Stocks With Worsening Analyst Sentiment
Type: News
Publication: Kapitall
Publication Author: Unknown
Date: 2010-11-22 11:39:00
Article: Compiled by Luis Gonzalez: The following is a list of high growth stocks that have seen worsening analyst sentiment over the past three months.To create this list, we started with a universe of high growth stocks, based on historical sales growth and projected earnings growth. We then narrowed down the universe by only focusing on stocks that have seen worsening analyst sentiment over the past three months. Analyst ratings are presented on a linear scale, where 1 = "Strong Buy" and 5 = "Strong Sell". All of the stocks in our list have seen their ratings move close to 5 over the past three months, i.e. worsening sentiment.Analysts seem to be avoiding these high growth stocks, what do you think? If you believe analyst ratings tend to lag performance, this list might offer an interesting starting point.Analyst ratings sourced from Reuters, growth data sourced from Finviz.Analyze These Ideas (Tools Will Open In A New Window) [Image](http://i1132.photobucket.com/albums/m562/RollingStone12345/KapitallK.png)1. Access a [performance overview](https://www.kapitall.com/?SSS_906612AC98E22656E470BB21CBB59342) of all stocks mentioned below2. Access an [overview of analyst ratings](https://www.kapitall.com/?SSS_420C3644759F1AF257B8F8517E439652) for all stocks mentioned below3. [Compare monthly and annual returns](https://www.kapitall.com/?SSS_DF743E45B2ABC9D5253C41B5E55E6F79) for all stocks mentioned below The list has been sorted by projected 5-year EPS growth rates. **1. Aixtron AG (AIXG):** Diversified Machinery Industry. Market cap of $3.36B. Sales have grown by 16.69% over the last five years, with EPS growth projected at 64.20% over the next five years. Analyst rating has changed from 1.67 to 2 over the last three months. Short float at 4.54%, which implies a short ratio of 10.66 days. The stock has gained 4.58% over the last year. **2. Gerdau S.A. (GGB):** Steel & Iron Industry. Market cap of $18.11B. Sales have grown by 14.91% over the last five years, with EPS growth projected at 39.0% over the next five years. Analyst rating has changed from 2 to 2.67 over the last three months. Short float at 1.74%, which implies a short ratio of 2.89 days. The stock has lost -25.03% over the last year. ****3. ZOLL Medical Corp. (ZOLL): Medical Appliances & Equipment Industry. Market cap of $672.19M. Sales have grown by 12.71% over the last five years, with EPS growth projected at 30.0% over the next five years. Analyst rating has changed from 1.25 to 1.67 over the last three months. Short float at 5.47%, which implies a short ratio of 7.51 days. The stock has gained 28.6% over the last year. **4. Edenor SA (EDN):** Electric Utilities Industry. Market cap of $453.43M. Sales have grown by 13.42% over the last five years, with EPS growth projected at 29.0% over the next five years. Analyst rating has changed from 2.67 to 3.33 over the last three months. Short float at 0.2%, which implies a short ratio of 0.74 days. The stock has gained 33.03% over the last year. **5. Orion Marine Group, Inc (ORN):** Heavy Construction Industry. Market cap of $369.07M. Sales have grown by 17.59% over the last five years, with EPS growth projected at 23.68% over the next five years. Analyst rating has changed from 1.67 to 2.22 over the last three months. Short float at 9.25%, which implies a short ratio of 8.86 days. The stock has lost -27.83% over the last year. **6. Internet Brands, Inc. (INET):** Business Services Industry. Market cap of $617.58M. Sales have grown by 10.29% over the last five years, with EPS growth projected at 27.75% over the next five years. Analyst rating has changed from 1.25 to 1.5 over the last three months. Short float at 2.7%, which implies a short ratio of 1.57 days. The stock has gained 81.83% over the last year. **7. The Washington Post Company (WPO):** Newspapers Industry. Market cap of $3.26B. Sales have grown by 6.73% over the last five years, with EPS growth projected at 29.40% over the next five years. Analyst rating has changed from 2 to 3 over the last three months. Short float at 11.04%, which implies a short ratio of 6.78 days. The stock has lost -6.62% over the last year. **8. AsiaInfo-Linkage,Inc. (ASIA):** Security Software & Services Industry. Market cap of $1.33B. Sales have grown by 19.98% over the last five years, with EPS growth projected at 22.51% over the next five years. Analyst rating has changed from 1.45 to 1.93 over the last three months. Short float at 5.96%, which implies a short ratio of 2.59 days. The stock has lost -29.31% over the last year. **9. HSBC Holdings plc (HBC):** Foreign Bank. Market cap of $186.29B. Sales have grown by 4.23% over the last five years, with EPS growth projected at 30.70% over the next five years. Analyst rating has changed from 1 to 2.67 over the last three months. Short float at 0.11%, which implies a short ratio of 1.55 days. The stock has lost -12.1% over the last year. **10. OSI Systems, Inc. (OSIS):** Semiconductor Equipment & Materials Industry. Market cap of $656.85M. Sales have grown by 9.10% over the last five years, with EPS growth projected at 24.88% over the next five years. Analyst rating has changed from 1 to 1.75 over the last three months. Short float at 3.78%, which implies a short ratio of 3.46 days. The stock has gained 84.49% over the last year. **11. Hypercom Corp. (HYC):** Business Equipment Industry. Market cap of $399.79M. Sales have grown by 11.02% over the last five years, with EPS growth projected at 23.33% over the next five years. Analyst rating has changed from 2 to 2.83 over the last three months. Short float at 3.58%, which implies a short ratio of 1.33 days. The stock has gained 120.73% over the last year. **12. Wet Seal Inc. (WTSLA):** Apparel Stores Industry. Market cap of $338.79M. Sales have grown by 5.19% over the last five years, with EPS growth projected at 27.0% over the next five years. Analyst rating has changed from 1.86 to 2.25 over the last three months. Short float at 4.15%, which implies a short ratio of 4.41 days. The stock has gained 0.91% over the last year. **13. Power-One Inc. (PWER):** Diversified Electronics Industry. Market cap of $955.64M. Sales have grown by 9.02% over the last five years, with EPS growth projected at 24.83% over the next five years. Analyst rating has changed from 1.5 to 1.82 over the last three months. Short float at 34.23%, which implies a short ratio of 4.73 days. The stock has gained 164.41% over the last year. **14. Rubicon Technology, Inc. (RBCN):** Semiconductor Industry. Market cap of $486.56M. Sales have grown by 4.31% over the last five years, with EPS growth projected at 26.67% over the next five years. Analyst rating has changed from 1.67 to 2.25 over the last three months. Short float at 78.33%, which implies a short ratio of 11.85 days. The stock has gained 33.9% over the last year. **15. Clean Harbors, Inc. (CLH):** Waste Management Industry. Market cap of $1.9B. Sales have grown by 10.80% over the last five years, with EPS growth projected at 20.90% over the next five years. Analyst rating has changed from 1.67 to 2 over the last three months. Short float at 11.5%, which implies a short ratio of 11.98 days. The stock has gained 31.82% over the last year.
Stock Price 4 days before: 9.96842
Stock Price 2 days before: 10.0851
Stock Price 1 day before: 10.1137
Stock Price at release: 10.1117
Risk-Free Rate at release: 0.0012
| 13.1246 |
Symbol: CAKE
Security: The Cheesecake Factory Incorporated
Related Stocks/Topics: Unknown
Title: Bulls order up Cheesecake Factory
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-11-23 01:14:00
Article: Cheesecake Factory has climbed to its highest price in more than four years yesterday, and the bulls are lining up for seconds.optionMONSTER's Heat Seeker tracking system detected steady call buying as the heavily shorted restaurant stock broke through a resistance level that's been in place since 2006. The December 27s were the most active strike, changing hands 2,797 times against open interest of 82 contracts. [CAKE](http://www.optionmonster.com/cms/commentary/images/cakepre112310.png) Most of the transactions priced for $3.60 to $3.90 when CAKE was trading for about $30.35. It then rallied and to close up 4.13 percent at $31.50 in the session, so most of the new positions are already profitable.The activity was unusual because it involved the use of in-the-money contracts. That gave the buyers exposure to almost any upside in the share price and will reduce their losses to time decay if CAKE fails to move. The drawbacks are that they had to pay more than they would for out-of-the-money calls. They will also have less leverage to major rally.The company's last earnings report on Oct. 21 was better than expected as management cited "increasing momentum." It also raised full year guidance, driving the shares higher by 15 percent.Short interest accounted for 17 percent of the float on at the end of last month, which is probably forcing some bears to buy the stock as it pushes higher.Overall option volume was 12 times greater than average in CAKE yesterday, with calls outnumbering puts by 3 to 1. (Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 29.9265
Stock Price 2 days before: 30.2062
Stock Price 1 day before: 30.0736
Stock Price at release: 31.4456
Risk-Free Rate at release: 0.0015
| 31.5699 |
Symbol: GCO
Security: Genesco Inc.
Related Stocks/Topics: Markets|WH|DY|JACK
Title: Today's Earnings Movers 11/23: BWS, DY, GCO Higher; WH, KONG, JACK Lower
Type: News
Publication: StreetInsider.com
Publication Author: Unknown
Date: 2010-11-23 04:08:00
Article: Below is a run-down of today's top 5 earnings movers, higher and lower, according to data at StreetInsider.com's EPS Central :**HIGHER:** - Brown Shoe ([BWS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BWS&selected=BWS)) ) 16% HIGHER: reported Q3 adjusted EPS of $0.45, 7 cents better than the analyst estimate of $0.38. Revenue for the quarter was $716.1 million, which compares to the estimate of $700.55 million. Sees FY10 adjusted EPS of $1.00 - $1.05, compared to the consensus of $0.84. Also sees FY11 revs growing low-to-mid-single digit range and an EPS of $1.31 - $1.43, versus the consensus EPS of $1.10. - Dycom Industries, Inc. ([DY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DY&selected=DY)) ) 11% HIGHER; reported Q1 EPS of $0.15, ex-items, 5 cents better than the analyst estimate of $0.10. Revenue for the quarter came in at $261.6 million, versus the consensus estimate of $254.33 million. - Genesco Inc. ([GCO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GCO&selected=GCO)) ) 6% HIGHER; reported Q3 adjusted EPS of $0.77, 18 cents better than the analyst estimate of $0.59. Revenue for the quarter came in at $464.8 million, versus the consensus estimate of $418.82 million. Increases FY11 outlook from $2.10 - $2.20 to $2.38 - $2.43. Consensus is expecting an EPS of $2.23. **LOWER:** - WSP Holdings Ltd. ([WH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WH&selected=WH)) ) 19% LOWER; reported Q3 loss of ($0.13), versus the analyst estimate of ($0.10). Revenue for the quarter came in at $136.98 million, versus the consensus estimate of $120.00 million. - KongZhong Corp. (Nasdaq: KONG) 11% LOWER; reported Q3 non-GAAP EPS of $0.10, 6 cents better than the analyst estimate of $0.04. Revenue for the quarter came in at $37.67 million, versus the consensus estimate of $35.54 million. Sees Q410 revs of $35.5 - $36.5 million, versus the consensus of $37.73 million. - Jack In The Box, Inc. (Nasdaq: JACK) 10.5% LOWER; reported Q4 EPS of $0.07, (including 33c/share in charges) which may not compare to the analyst estimate of $0.36. Revenue for the quarter came in at $563.21 million, versus the consensus estimate of $543.25 million. Sees Q1 same-store sales down 1% to up 1%. Sees FY11 comps down 2% to up 2%. Sees operating EPS of 75-90c, vs. the consensus of $2.05.
Stock Price 4 days before: 34.1191
Stock Price 2 days before: 35.5404
Stock Price 1 day before: 35.5392
Stock Price at release: 37.4757
Risk-Free Rate at release: 0.0015
| 37.0891 |
Symbol: JACK
Security: Jack in the Box Inc.
Related Stocks/Topics: GCO|Markets|WH|DY
Title: Today's Earnings Movers 11/23: BWS, DY, GCO Higher; WH, KONG, JACK Lower
Type: News
Publication: StreetInsider.com
Publication Author: Unknown
Date: 2010-11-23 04:08:00
Article: Below is a run-down of today's top 5 earnings movers, higher and lower, according to data at StreetInsider.com's EPS Central :**HIGHER:** - Brown Shoe ([BWS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BWS&selected=BWS)) ) 16% HIGHER: reported Q3 adjusted EPS of $0.45, 7 cents better than the analyst estimate of $0.38. Revenue for the quarter was $716.1 million, which compares to the estimate of $700.55 million. Sees FY10 adjusted EPS of $1.00 - $1.05, compared to the consensus of $0.84. Also sees FY11 revs growing low-to-mid-single digit range and an EPS of $1.31 - $1.43, versus the consensus EPS of $1.10. - Dycom Industries, Inc. ([DY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DY&selected=DY)) ) 11% HIGHER; reported Q1 EPS of $0.15, ex-items, 5 cents better than the analyst estimate of $0.10. Revenue for the quarter came in at $261.6 million, versus the consensus estimate of $254.33 million. - Genesco Inc. ([GCO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GCO&selected=GCO)) ) 6% HIGHER; reported Q3 adjusted EPS of $0.77, 18 cents better than the analyst estimate of $0.59. Revenue for the quarter came in at $464.8 million, versus the consensus estimate of $418.82 million. Increases FY11 outlook from $2.10 - $2.20 to $2.38 - $2.43. Consensus is expecting an EPS of $2.23. **LOWER:** - WSP Holdings Ltd. ([WH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WH&selected=WH)) ) 19% LOWER; reported Q3 loss of ($0.13), versus the analyst estimate of ($0.10). Revenue for the quarter came in at $136.98 million, versus the consensus estimate of $120.00 million. - KongZhong Corp. (Nasdaq: KONG) 11% LOWER; reported Q3 non-GAAP EPS of $0.10, 6 cents better than the analyst estimate of $0.04. Revenue for the quarter came in at $37.67 million, versus the consensus estimate of $35.54 million. Sees Q410 revs of $35.5 - $36.5 million, versus the consensus of $37.73 million. - Jack In The Box, Inc. (Nasdaq: JACK) 10.5% LOWER; reported Q4 EPS of $0.07, (including 33c/share in charges) which may not compare to the analyst estimate of $0.36. Revenue for the quarter came in at $563.21 million, versus the consensus estimate of $543.25 million. Sees Q1 same-store sales down 1% to up 1%. Sees FY11 comps down 2% to up 2%. Sees operating EPS of 75-90c, vs. the consensus of $2.05.
Stock Price 4 days before: 23.003
Stock Price 2 days before: 23.3536
Stock Price 1 day before: 23.3391
Stock Price at release: 21.2695
Risk-Free Rate at release: 0.0015
| 21.4622 |
Symbol: CBRL
Security: Cracker Barrel Old Country Store, Inc.
Related Stocks/Topics: Markets|HRL|CPB|HPQ
Title: Opening View: Korean Tensions Sink DJIA Futures
Type: News
Publication: Schaeffer
Publication Author: Unknown
Date: 2010-11-23 07:57:00
Article: The Dow Jones Industrial Average (DJIA) is headed sharply lower this morning, as Wall Street reels from reports of an exchange of fire between North and South Korea. North Korea fired dozens of artillery rounds at a South Korean island near the two nations' western border, and South Korea said it fired back. The escalation between the Koreas is grating on U.S. investors already bedraggled by Ireland's ongoing debt concerns. Heading into the open, futures on the DJIA and the S&P 500 Index (SPX) are trading roughly 90 points and 11 points below fair value. Look for the Dow to potentially test support at the 11,000 level today, with resistance remaining firm at the 11,200 level. The SPX, meanwhile, should hold support at the 1,175 level, with resistance holding at the 1,200 level.In equity news, Campbell Soup Co. ([CPB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CPB&selected=CPB)) ) reported a first-quarter profit of $279 million, or 82 cents per share. Sales for the quarter were $2.17 billion. Wall Street was expecting a profit of 83 cents per share on sales of $2.2 billion. Looking ahead CPB said it sees fiscal 2010 earnings growth of 2%-4%, and fiscal 2011 sales growth of 1%-3%. In a statement, the company said that it plans "to place greater focus on advertising and brand-building initiatives in our marketing efforts." Also, Hewlett-Packard ([HPQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HPQ&selected=HPQ)) ) reported a fourth-quarter profit of $2.5 billion, or $1.10 per share, on revenue of $33.3 billion. Adjusted income was $1.33 per share. Analysts had expected the company to post earnings of $1.27 per share on revenue of $32.7 billion. For the current quarter, HPQ said that it sees adjusted earnings of $1.28 to $1.30 per share on revenue of roughly $32.8 billion to $33 billion. Wall Street currently expects earnings of $1.22 per share on $32.72 billion in sales.Brocade Communications Systems ([BRCD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BRCD&selected=BRCD)) ) reported fourth-quarter non-GAAP earnings of $66 million, or 14 cents per share, on revenue of $550 million. Analysts were expecting earnings of 13 cents per share on revenue of $536.11 for the period. Looking ahead, the company said that it expects revenue for the current quarter to arrive in a range of $535 million to $550 million, below the current consensus estimate for revenue of $555.6 million. **Earnings Preview** On the earnings front, Cracker Barrel Old Country Store Inc. ([CBRL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBRL&selected=CBRL)) ), Hormel Food Corp. ([HRL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HRL&selected=HRL)) ), TiVO Inc. (TIVO), and Guess?, Inc. (GES) 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 second estimate on third-quarter gross domestic product will arrive today, accompanied by October's existing home sales. The Street will be drenched in data tomorrow, with October's personal income and spending reports, October durable goods orders, weekly initial jobless claims, November's University of Michigan consumer sentiment index, October's new home sales, and weekly U.S. petroleum supplies. The market is closed for Thanksgiving on Thursday, and there are no economic reports slated for release on Friday. **Market Statistics** Equity option activity on the Chicago Board Options Exchange (CBOE) saw 1,339,851 call contracts traded on Monday, compared to 765,451 put contracts. The resultant single-session put/call ratio arrived at 0.57, while the 21-day moving average fell to 0.57. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/101123ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/101123ov2.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/2010/101123ov3.gif)**Overseas Trading** Overseas trading looks abysmal this morning, as none of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a loss of 1.25%. Reports that North Korea and South Korea exchanged fire dominated the landscape in both Asian and European trading, with regional indexes declining roughly 1% across the board. Losses in Hong Kong neared 3%, while China's Shanghai dipped roughly 2%, as the Korean conflict added to uncertainty surrounding Beijing's ongoing monetary policy. In Europe, a strengthening dollar and falling euro applied pressure across the region, which continues to struggle with uncertainty surrounding the fallout from an Irish bailout. [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/101123ov4.gif)**Currencies and Commodities** With hostilities between the Koreas boiling over once again, safe-haven buying has quickly become the theme of the morning. The U.S. dollar is benefiting from this flight to safety, with the U.S. Dollar Index rising 0.31% to 78.93 in premarket trading. Naturally, the dollar's rise is crude's demise, with the December crude oil contract down 57 cents at $81.17 per barrel in electronic trading. What's more, even gold, much heralded for its safe-haven qualities, is struggling this morning, adding a mere $3.50 to trade at $1,361.30 an ounce in London. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/101123ov5.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/2010/101123ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/101123ov7.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: 54.5294
Stock Price 2 days before: 56.0937
Stock Price 1 day before: 56.0714
Stock Price at release: 57.1592
Risk-Free Rate at release: 0.0015
| 56.4194 |
Symbol: CIM
Security: Chimera Investment Corporation
Related Stocks/Topics: Markets
Title: OTCQX: Helping Canadian Juniors Reach U.S. Investors
Type: News
Publication: International Business Times
Publication Author: Unknown
Date: 2010-11-24 03:30:00
Article: **OTCQX: Helping Canadian Juniors Reach U.S. Investors** Source: Karen Roche of The Gold Report 11/24/10[http://www.theaureport.com/pub/na/7948](http://www.theaureport.com/pub/na/7948) Representatives from a few of the Canadian junior resource companies that are eager to bring more international investors into their folds took time from their busy schedules to share some of their views about the OTCQX via this exclusive Gold Report roundtable. Participants discussing some of the features of this "upstart" exchange include Crocodile Gold President and CEO Mike Hoffman, Rio Alto Mining President and CEO Feisal Somji and Avalon Rare Metals Investor Relations Manager Ron Malashewski. **The Gold Report:** In 2007, a new marketplace called OTCQX was created to give international exchange-listed companies an easier entry into the U.S. capital markets. Known as QX for short, the Q stands for quality and the X for excellence. In just a few short years, this venue has grown to more than 150 companies with a combined market capitalization approaching $1 trillion. It is owned and operated by Pink OTC Markets Inc., the third largest-equity trading venue in the U.S. Many world-class companies have listed on OTCQX, such as the Paris-based AXA Group, Roche, Adidas, Air France and BASF. This venue has given Canadian companies LIKE [Avalon Rare Metals Inc. (TSX:AVL; OTCQX:AVARF)](http://www.theaureport.com/pub/co/718) , [First Majestic Silver Corp. (TSX:FR; OTCQX:FRMSF)](http://www.theaureport.com/pub/co/406) and [San Gold Corporation (TSX.V:SGR)](http://www.theaureport.com/pub/co/619) a convenient and inexpensive way to tap into the vast U.S. retail market while creating more liquidity on the TSX-which attracts institutional investors in Canada, as well as the U.S. What factors contributed to your decision to list on the QX?**Mike Hoffman:** We wanted to attract U.S. retail investors to our stock. **Ron Malashewski:** Avalon had already attracted a significant number of U.S. shareholders who were asking us to list in the U.S. to make it easier for them to trade the shares. The QX was a consideration as it recognizes established, foreign companies that are already listed on major exchanges outside of the U.S. **Feisal Somji:** [Rio Alto Mining Limited (TSX.V:RIO; BVL:RIO; OTCQX:RIOAF)](http://www.theaureport.com/pub/co/2060) , too, decided to list on the QX as a way to open up the U.S. market to the company. Although many U.S. investors will trade on the TSX, many others won't or can't. The QX has increased the number of investors exposed to our company. The major trigger, however, comes from the new listing requirements and reporting obligations that the QX provides. A foreign company can now list in the U.S. by maintaining a listing in their home jurisdiction. This reduces the exposure, cost and resources required for a traditional U.S. listing. **MH:** We also appreciated the fact that QX has no [Sarbanes-Oxley Act](http://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Act) (SOX) requirement. **TGR:** When did you list [Crocodile Gold Corp. (TSX:CRK; OTCQX:CROCF)](http://www.theaureport.com/pub/co/2071) on the QX, Mike?**MH:** February 2010. **TGR:** And you, Feisal?**FS:** Rio Alto listed in May 2010. **RM:** Avalon Rare Metals listed on the QX on August 5, 2009. **TGR:** Feisal, it's only been about six months since you listed Rio Alto. What's your experience been like so far?**FS:** We've found the people at the OTCQX to be very helpful and very professional. The listing process was quick and efficient and the cost was reasonable. The QX staff is quite open to new companies listing on their exchange. **TGR:** What has Avalon's experience been with your listing, Ron?**RM:** The listing has increased our exposure and recognition by U.S. investors, particularly with the active participation by the Principal American Liaison (PALs), which is a party that the listing company selects to serve as a securities professional knowledgeable in disclosure requirements of U.S. securities laws and the most effective investor communications practices. Each prospective PAL must submit an application to Pink OTC Markets to show evidence that the firm is qualified to be an OTCQX advisor. PAL eligibility is limited to a Financial Industry Regulatory Authority (FINRA) member investment banking firm or American Depository Receipt (ADR) Bank. The chief role of FINRA-the largest independent regulator for all securities firms doing business in the U.S.-is to protect investors by maintaining the fairness of the U.S. capital markets.) **TGR:** When you announced your listing, Mike, you said you were looking to increase your international liquidity as well as expand your investor base and raise awareness of your company and your progress around the globe. Have you found your exposure increased as well?**MH:** In the last few months, we have started to trade significant volumes on the QX, but overall I'd describe Crocodile Gold's experience with the QX as mixed. **TGR:** The downside?**MH:** One negative is lack of [Blue Sky](http://en.wikipedia.org/wiki/Blue_sky_law) access; and, as I suggested, it took a while for volume to pick up. Slowly it has gotten higher but QX trading is still generally less than 10% of overall trading. **TGR:** How would you characterize Avalon's trading volume since this listing?**RM:** Trading volume on the QX market has increased significantly when compared to the basic Pink-Sheet-only listing. (Note: The marketplace consists of both the issuer-listed OTCQX and broker-quoted Pink Sheets.) **TGR:** And what is your sense of how Rio Alto's trading volume has changed?**FS:** We believe that the trading we're seeing on the QX is new trading. By this, I mean that it has not reduced the trading volume from our other listings. Although the trading volume on the QX is less than the other exchanges; it's still volume that we wouldn't have been exposed to before. Of course, the lower trading volume is also a function of marketing in the U.S., which must be done in conjunction with the listing. **TGR:** What can you tell us about how your listing on the QX has affected access to (and by) U.S. investors?**FS:** Although many U.S. investors can and do trade on other exchanges, we have in the past come across many investors who cannot trade outside of the U.S. due either to internal policies or just lack of experience and knowledge on how to trade on the Canadian markets. We are confident that the QX listing has increased our access to U.S. investors. **RM:** Many investors and some brokerage firms in the U.S. will not buy, or are reluctant to buy, foreign companies on foreign exchanges for a number of reasons. A QX listing provides them with access to these foreign companies through a local market. The listing criteria do recognize more transparency and access to information, because the company already is listed on a major exchange elsewhere. **TGR:** If you run through the roster of companies in the QX, you'll find some world-renowned companies-major players, such as Air France, Adidas, Allianz, AXA, BNP Paribas, BASF, Experian and Roche. And you'll find them from the four corners of the world-Australia, Brazil, France, Germany, the Russian Federation, the UK and the U.S. among them. But of 151 total listings, more than one-third are based in Canada with average market capitalization in the neighborhood of $150 million and all but a few in the resources sector. In fact, it's said that Canada that has become QX's biggest and most important market. From a single listing in 2007 to nine in 2009, the number of Canadian companies reached 40 in mid-September, with about a dozen more signing on since then. The majority of these are small and mid-sized companies. Bottom line, what do you suppose it is about the QX that is particularly attractive to small- and mid-cap companies/junior resource companies?**MH:** Three things: The access to U.S. retail investors, the ease of listing and the relatively low cost. **RM:** Absolutely. It is a low-cost way to gain access to the large U.S. markets, particularly those investment firms, retail and institutional investors that prefer to trade on a local or regional market. **FS:** The main benefit is the piggybacking on your main listing jurisdiction. As long as we remain in good standing on the TSX and file all our documents on the QX website, we can maintain our listing on the QX. This greatly reduces our exposure and our costs-and these are key factors for small- and mid-cap companies. **TGR:** As we understand it, companies pay a minimum $5,000 application fee to establish a listing, and then an annual listing fee of $15,000 plus sponsorship fees. That's chump change by comparison to the cost of cross listing on the NYSE or NASDAQ, which can top $1 million, particularly given the costs of fulfilling regulatory requirements. As you've suggested, cross listing on the QX an appealing option in part because it avoids the complex and costly disclosure and compliance requirements typical of a U.S. stock exchange. Companies leverage their investment in listing on a qualified exchange, such as the TSX, by providing the same disclosure documents. Beyond that, QX requires no SEC Registration, Sarbanes Oxley compliance and U.S. GAAP reporting.Thank you for your time and your insights, gentlemen. We look forward to a follow-up at some point and, in the meantime, happy holidays. **Gold Report Sponsors on the OTCQX** [TGR OTCQX sponsors](file:///C:/DOCUME%7E1/User/LOCALS%7E1/Temp/msohtmlclip1/01/clip_image001.jpg) Ron Malashewski, P.Eng., whose professional career spans three decades, has devoted most of that time to the mining and minerals sector, racking up experience in a host of arenas including engineering, project management, strategic planning, technical and corporate management, investment management and investor relations. He joined the Avalon Rare Metals team as investor relations manager in mid-2010, after serving in a similar capacity with [Great Western Minerals Group Ltd. (TSX.V:GWG; OTCQX:GWMGF)](http://www.theaureport.com/pub/co/1692) . Ron's professional and industry memberships include the Association of Professional Engineers, Geologists and Geophysicists of Alberta, the Canadian Institute of Mining, Metallurgy and Petroleum ([CIM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CIM&selected=CIM)) ) and the Prospectors and Developers Association of Canada (PDAC). His credentials include bachelor's degrees in physics and engineering, and an Ontario Prospectors License.Feisal Somji, CEO and president and of Rio Alto Mining Limited (formerly Mexican Silver Mines Ltd.) has spent more than 15 years in mineral exploration and development and has been involved in early stage, late stage and mine development projects around the world. He also provides expertise in areas of corporate finance and governance. In addition to his work at Rio Alto, Faisal is chairman of Prize Mining Corp, as well as a director, member of the board's Audit Committee and interim chief financial officer. In addition, he serves Philippine Metals Ltd. as CEO and director. He has acted as an officer and director of several other public companies in diamond, gold and platinum group element assets in Canada, Mexico, Brazil and Africa. He has also run his own businesses, providing mineral exploration services to others. Secretary of New Meridian Mining Corp., he also has been president of Premier Diamond Corp. and Adamas Management Ltd. and chief financial officer of Diamond Hawk Mining Corp., as well as a director of Savannah Diamonds Ltd., New Meridian Mining Corp., Kitikmeot Geosciences Ltd., Slave Lake Diamond Corp. and Sola Resource Corp. He earned a Bachelor of Science degree at University of British Columbia and an MBA at Queens University. He also holds a diploma in aviation from University College of Fraser Valley, BC and a commercial pilot's license.Michael L. Hoffman, P.Eng., joined Crocodile Gold Corp. in November 2009 as president and CEO after serving Crowflight Minerals Inc. Mike is also president and CEO of Kria Resources Inc. and serves on the boards of Kria Resources, as well as Castillian Resources Inc., Forbes and Manhattan Coal Corp., [Aberdeen International Inc. ( ](http://www.theaureport.com/pub/co/2384) [AAB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AAB&selected=AAB) ) , Yamana Gold Inc., Auriga Gold Corp., [Dacha Capital Inc. (TSX.V:DAC; OTCQX:DCHAF)](http://www.theaureport.com/pub/co/2219) , [Sulliden Gold Corp. (TSX:SUE; OTCQX:SDDDF)](http://www.theaureport.com/pub/co/1442) and [Largo Resources Ltd. (TSX.V:LGO)](http://www.theaureport.com/pub/co/1691) . A professional mining engineer with more than 30 years of experience in mine operations, projects, engineering and corporate development, Mike also has filled senior executive positions at Yamana Gold, [Goldcorp Inc. (NYSE:GG; TSX:G)](http://www.theaureport.com/pub/co/23) , Desert Sun Mining Corp., Inc. and Rio Algom. He has worked in North America, Central America, South America and Africa. He is an honors graduate of Queens University (B.S. in Mining Engineering). Want to read more exclusive Gold Report interviews like this? [Sign up](http://www.theaureport.com/cs/user/print/htdocs/38) for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our [Expert Insights](http://www.theaureport.com/pub/htdocs/exclusive.html) page. **DISCLOSURE:**1) Karen Roche of The Gold Report conducted this interview. She personally and/or her family own the following companies mentioned in this interview: None.2) The following companies mentioned in the interview are sponsors of The Gold Report: Avalon Rare Metals, Crocodile Gold, Rio Alto, Great Western Minerals, Aberdeen, Sulliden, Largo and Goldcorp.3) Ron Malashewski, Feisal Somji and Michael Hoffman: 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 Gold Report](http://www.theaureport.com/) is Copyright © 2010 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part. The GOLD Report does not render general or specific [investment advice](https://www.nasdaq.com/education/stock-market-where-buyers-and-sellers-meet) and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report.From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.Participating companies provide the logos used in The Gold Report. These logos are trademarks and are the property of the individual companies. Streetwise Reports LLCP.O. Box 1099Kenwood, CA 95452Tel.: (707) 282-5593Fax: (707) 282-5592Email: [[email protected]](mailto:[email protected])
Stock Price 4 days before: 4.02046
Stock Price 2 days before: 4.02322
Stock Price 1 day before: 4.01896
Stock Price at release: 4.02
Risk-Free Rate at release: 0.0016
| 4.27803 |
Symbol: GES
Security: Guess', Inc.
Related Stocks/Topics: TGT|Markets|NKE|MA
Title: Market Wrap-Up for Nov.24 (TIF, GES, TGT, MA, JOYG, NKE, more)
Type: News
Publication: Dividend.com
Publication Author: Unknown
Date: 2010-11-24 03:57:00
Article: The markets were back to rejoicing once again today, as all the worries of the previous two days have dissipated (for now).We made some new additions to our [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) list this morning, adding four new names that have been on our radar. The names are more geared toward a dividend/stock price growth angle, as we have seen the markets continually reward these companies following earnings' results. We do have many income-related recommendations currently on the Best Dividend Stocks list, so subscribers have plenty of options there as well. The link to the new names is below if you did not read the e-mail alert we sent out this morning. Good earnings out of Tiffany & Co. ( **TIF** ) and Guess ( **GES** ) set a positive tone early on this morning. The buying was fairly broad-based, with names like Target ( **TGT** ), MasterCard ( **MA** ), Joy Global ( **JOYG** ), and Nike ( **NKE** ) all moving nicely higher.I want to wish all the readers out there a very Happy Thanksgiving holiday and safe travels to all that will be on the road visiting family and friends. Also, be sure to keep our military and veterans in your thoughts as well. If it wasn't for them, we wouldn't have nearly all the opportunities that are afforded us today.We'll be back on Friday, and I'll have some more thoughts on the markets then.Thanks for reading, and I'll see you soon!MBe 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: 44.3243
Stock Price 2 days before: 44.0814
Stock Price 1 day before: 45.0971
Stock Price at release: 49.2049
Risk-Free Rate at release: 0.0016
| 48.1601 |
Symbol: GES
Security: Guess', Inc.
Related Stocks/Topics: Markets
Title: Guess Q3 Earnings Beat View; Forecast Raised; Special Dividend Announced (GES)
Type: News
Publication: Dividend.com
Publication Author: Unknown
Date: 2010-11-24 08:28:00
Article: Apparel maker Guess, Inc. ( **GES** ) late Tuesday said its third quarter profit jumped 8% from last year, beating analyst expectations and prompting the company to boost its full-year outlook.The Los Angeles-based company reported third quarter net income of $69.1 million, or 75 cents per share, compared with $64.1 million, or 69 cents per share, in the year-ago period. Revenue climbed 17% from last year to $613.9 million.On average, Wall Street analysts expected a much smaller profit of 59 cents per share, on lower sales of $578 million.Looking ahead, the company boosted its full-year outlook to a range of $3.02 to $3.06 per share, up from prior guidance of $2.80 to $2.85.The company also said it would raise its quarterly dividend from 16 cents to 20 cents per share, and announced a special one-time dividend of $2 per share. Both of those dividends will be combined and paid on Dec. 23 to shareholders of record as of Dec. 8.Guess shares rose $3.36, or +7.4%, in premarket trading Wednesday. **The Bottom Line** Shares of Guess ( **GES** ) have a 1.76% dividend yield, based on last night's closing stock price of $45.34. The stock has technical support in the $42-$43 price area. The shares are approaching all-time high levels in the $52-$53 price range.Guess, Inc. ( **GES** ) 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: 44.3243
Stock Price 2 days before: 44.0814
Stock Price 1 day before: 45.0981
Stock Price at release: 48.4942
Risk-Free Rate at release: 0.0016
| 48.1601 |
Symbol: NRC
Security: National Research Corporation
Related Stocks/Topics: Markets
Title: Uranerz Energy Corp Up 8%, Edging Toward Yr Highs, buoyed by positive US news and uranium sentiment
Type: News
Publication: MTNewswires
Publication Author: Unknown
Date: 2010-11-26 03:15:00
Article: Vancouver-based Uranerz Energy Corp. (URZ.TO) is up 8% and has hit a day high of $4 - shy of an existing year high $4.13 - on positive sentiment for uranium-related stocks and reports the company in the last week received a draft Source Materials License from the U.S. Nuclear Regulatory Commission ([NRC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NRC&selected=NRC)) ), a critical step toward building a uranium mine.Octagon Capital analyst Rob Chang is confident that remaining permits from both the NRC and Wyoming Department of Environmental Quality will be relatively easy to obtain compared to the three-year effort required for the Source Materials License, according to a Financial Post report. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
Stock Price 4 days before: 25.085
Stock Price 2 days before: 25.1664
Stock Price 1 day before: 25.2012
Stock Price at release: 25.2467
Risk-Free Rate at release: 0.0016
| 24.9725 |
Symbol: CAKE
Security: The Cheesecake Factory Incorporated
Related Stocks/Topics: XLY|Markets
Title: Satellites show shopping is strong
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-11-26 12:07:00
Article: Investors awoke to more jitters about overseas markets today, but the picture is brighter in U.S. retail. [Satellite Screen Shot](http://www.optionmonster.com/cms/commentary/images/satellite.png) Data from Thomson Reuters and Remote Sensing Metrics shows that this holiday shopping season is in full swing. U.S. shopping malls had a 42.3 percent fill rate on Nov. 20. That's up from 36.5 percent on the third Saturday of November last year and a 30.6 percent reading in 2008.The report, which uses high-resolution satellite imagery to analyze vehicle traffic, has shown a steady pickup since the beginning of the month. On Nov. 6, for instance, malls were 38 percent full, up dramatically from 22.8 percent reading a year earlier.The pattern fits into a larger pattern of strength emerging in the consumer-discretionary space recently. Not only has the sector outperformed the broader market in the last three months following a period of weakness starting in April, but we've also seen bullish activity in stocks such as Talbots and Cheesecake Factory.(Screen shot courtesy of CNBC) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 30.8726
Stock Price 2 days before: 31.9445
Stock Price 1 day before: 31.9807
Stock Price at release: 31.8609
Risk-Free Rate at release: 0.0016
| 31.1748 |
Symbol: SRI
Security: Stoneridge, Inc.
Related Stocks/Topics: Markets|VICEX|DSI|FAN
Title: Socially Responsible ETFs: The Other Value Investing
Type: News
Publication: ETFZone.com
Publication Author: Unknown
Date: 2010-11-27 06:00:00
Article: Socially responsible investment ([SRI](https://www.nasdaq.com/symbol/sri)) ) is about investing in values. Socially responsible ETFs select companies based on political, social, environmental and [corporate governance](http://www.nasdaqomx.com/publicpolicy/nasdaqomxontheissues/corporategovernance/) considerations. Can ethics and values be profitable? Or must investors forgo profits for the sake of their belief system?Unethical behavior is not profitable. Accounting fraud, faulty risk management controls, and environmental sloppiness can send firms into bankruptcy. When companies are made responsible for injuries their products cause, shareholders are hurt. An ETF that comprised of companies avoiding these situations would be a winner. But over the long term, some of the best performing investments are in sectors many investors find objectionable. Tobacco, alcoholic beverages, gaming machines, defense contractors, oil exploration and drilling companies are all often stellar performers. Investors in socially responsible ETFs must balance these realities.There is no ultimate agreement about what constitutes socially responsible investment. SRI-focused ETFs take a variety of approaches to the challenge of investing in good without sacrificing financial performance.One approach is to focus on a particular sector and invest in companies that develop alternatives to that sector. If the environment is a priority, for example, ETFs focusing on alternative energy are an option. There are many such funds. PowerShares WilderHill Clean Energy (NYSEArca:PBW) is one of the oldest and best established alternative energy ETFs. The 5-year chart below compares the performance of alternative energy fund PBW with the traditional energy providers, represented by the Energy Select Sector SPDR (NYSEArca:XLE). [Image](http://www.etfzone.com/images/Articles/Image/chart1pbwxle.GIF) The chart shows PBW losing out to XLE, particularly in the last year. XLE holds major oil producers like Exxon Mobile and Chevron and oil service companies like Halliburton. Luckily for investors in XLE, there is little exposure to British Petroleum. PBW by contrasts holds companies that aim to be cost-competitive with fossil fuels but often are not yet competitive and therefore are partly or wholly dependent on government subsidy. These companies are much smaller than the major holdings in XLE. They do not have proven cash flows. They tend to be more volatile.Another approach to socially responsible investment is to focus on the market as a whole but choose companies thought to have comparatively superior record of environmental, social and corporate governance relative to their peers in the same sector. iShares KLD Select Social Index (NYSEArca:KLD) takes this approach. It holds 200-300 companies chosen from the S&P 900 Index. The sector allocation is almost identical to the SPY benchmark so big energy companies for example are allowed. But KLD holds no tobacco stock and a smaller allocation goes to utilities and energy companies when compared with the benchmark. The chart below compares the 5-year performance of KLD with a mutual fund from USA Mutuals called the Vice Fund ([VICEX](https://www.nasdaq.com/symbol/vicex)) ) that holds "vice" stocks: tobacco, gaming, defense companies, oil. The domestic benchmark Standard and Poors Depositary Receipts (NYSEArca:SPY) is also shown. [Image](http://www.etfzone.com/images/Articles/Image/5yrvicekldspy22.GIF) The chart shows, first of all, how closely KLD tracks the benchmark SPY. This is a success for KLD. Second, it shows that there is a long period where the vice stocks outperform the benchmark. Are vice stocks simply more profitable? The most important difference occurs between January 2006 and the Summer of 2008. This is partly due to the rise in oil over this period.Because KLD so closely tracks the SPY, the chart below compares just vice stocks with KLD, this time on a 1-year basis. [Image](http://www.etfzone.com/images/Articles/Image/1yrvicexkld.GIF) Here the chart shows vice stocks again outperforming. Why? As the market tumbled in August 2010, the defensive character of tobacco and alcoholic beverage companies won over investors. These companies have strong cash flow, pay regular and high dividends, and produce products that resist cyclicality, like tobacco.But sometimes vice does not outperform. In strong markets defensive companies like tobacco and beverages tend to underperform. The chart below shows the 2-year performance of the same funds. [Image](http://www.etfzone.com/images/Articles/Image/2yrvicexkld.GIF) Here the vice lags. From the Summer of 2009 to the Spring of 2010, KLD (and the benchmark) rose 40% and the vice fund only 20%. Again cyclicality is a par culprit. The broad market dropped more severely during the prior sell-off than the cash-rich vice sector.For some investors the market-targeting approach taken by KLD is not ambitious enough. They point to KLD's small position in Halliburton, which was involved in the BP oil spill as well as a major contractor in Iraq as an example of deviating from socially responsible objectives.These investors should take a look at the iShares KLD 400 Social Index (NYSEArca:DSI). DSI is at once more selective and more pro-active compared with KLD. It automatically excludes investments the SINdex-- tobacco, alcohol and gambling. It also excludes companies involved in weaponry and nuclear power. DSI overweights companies with strong environmental corporate governance and human rights records. Of course none of these considerations automatically keep Halliburton or Cameron International out of the portfolio-- at least prior to the BP oil spill.Over the last decade alternative energy ETFs have mostly underperformed conventional oil and oil service funds, defense contractors and notorious carbon polluters in the power generation business. But this long-term trend may be under attack. Concern about the environment is heating up. Public disgust with corporate malfeasance is increasingly important. Environmentally friendly technologies are becoming more prominent and profitable. Socially responsible investment, when done properly, can bring strong returns.Following is a list of ETFs with a focus on social responsibility: **Responsible Companies** iShares KLD Select Social Index (NYSEArca:KLD) 0.5%iShares KLD 400 Social Index (NYSEArca:DSI) 0.5%**Alternative Energy** PowerShares Wilderhill Clean Energy Portfolio (NYSEArca:PBW) 0.60%PowerShares Wilderhill Progressive Energy Portfolio (NYSEArca:PUW) 0.60%First Trust NASDAQ Clean Edge (NasdaqGM:QCLN)0.60%PowerShares Cleantech Portfolio (NYSEArca:PZD) 0.60%**Global Alternative Energy** Van Eck Market Vectors Global Alternative Energy (NYSEArca:GEX) 0.65%PowerShares Clean Energy Portfolio (NYSEArca:PBD) 0.75%**Solar Energy** Claymore Global Solar Energy (NYSEArca:TAN) 0.65%Van Eck Market Vectors Solar Energy (NYSEArca:KWT) 0.65%**Wind Energy** First Trust Global Wind Energy Fund (NYSEArca:FAN) 0.60%[Jonathan Bernstein](mailto:[email protected]) has been writing about ETFs since 2003 and is the author of [Sector Trading: A Year in Exchange Traded Funds](http://www.amazon.com/gp/redirect.html?link_code=ur2&tag=postpoppulpma-20&camp=1789&creative=9325&location=http://www.amazon.com/gp/product/0977294501) .
Stock Price 4 days before: 12.6861
Stock Price 2 days before: 13.0395
Stock Price 1 day before: 12.926
Stock Price at release: 13.1707
Risk-Free Rate at release: 0.0016
| 16.365 |
Symbol: GES
Security: Guess', Inc.
Related Stocks/Topics: FDX|Markets|CF|MOS|HAL
Title: Market Wrap-Up for Nov.29 (OXPS, FDX, WAG, HAL, MOS, more)
Type: News
Publication: Dividend.com
Publication Author: Unknown
Date: 2010-11-29 04:08:00
Article: We were seeing a second day in a row of sellers dominating the stock tape, but buyers popped up in the afternoon and leading us back up off the lows of the day. Early concerns over economic weakness in the Euro-zone spreading gave way to rumors Washington may be backing off higher taxes for the rich.The concerns we are seeing are certainly warranted, but at some point (as is always the case), the fear will be priced in. At that point, Wall Street will quickly adjust to the environment and soon identify companies that will not skip a beat. I was reviewing some recent data out of Zillow.com, which said U.S. home values have declined for the 17th quarter in a row. Home values are now 25% below the 2006 peak in prices. Be sure to catch today's [video](http://www.dividend.com/blog/?p=27278) Tom and I did on Dividend Stocks vs. Real Estate below - you'll hear talking about the big advantages dividend stock investing has over getting into the real estate market as an investor. I believe in loving where you live and if you buy a property that eventually goes higher in value, then great. For me, the biggest attraction for someone looking to buy a property today, would be to search for a multi-family dwelling where your tenants can help alleviate the expenses in your first place. I saw many relatives and family friends practice this style of real estate spending and many today, still own those income-producing properties. It pays that many of them were handy as well, since fixing up many things that can go wrong is often overlooked when real estate investors draw up their expected returns.Back to the action in the markets today, we saw some big headlines out of OptionsXpress ( **OXPS** ) where the company declared a special $4.50 per share cash dividend. The stock is not reacting as positively as one would have expected, but as I mentioned in the write-up on the story this morning, I would have wished the company did not resort to borrowing part of the proceeds to pay for it. Our preference would have been to just increase the quarterly dividend substantially and keep the cash reserves nice and healthy.Elsewhere, fertilizer plays CF Industries ( **CF** ) and Mosaic ( **MOS** ) were a drag on the indices, as was the profit-taking in retailers Guess ( **GES** ) and Ross Stores ( **ROST** ). FedEx ( **FDX** ) bucked the early selling trend, following an upgrade from Credit Suisse this morning. Other winners included Walgreen Co. ( **WAG** ) and Halliburton ( **HAL** ). There was some talk of the afternoon rally could have been the result of late-month window dressing.I hope everyone is recovering well from the holiday gatherings. It's back to work now, so let's continue to focus on the job of building wealth. I hope everyone had a chance to check out our Dividend.com Premium weekend articles this past weekend - we've added three new features and will be highlighting some of the biggest winners and losers from the week that was, in regards to analyst upgrades, downgrades, as well as earnings/story stocks.If you're newer to our site, you'll also want to view our "How to Use Our 'Best Dividend Stocks' List" [video](http://www.dividend.com/blog/?p=26696) . And as always, check out our industry-leading [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) list for the top dividend names to put money into right now. 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: 49.8404
Stock Price 2 days before: 50.9495
Stock Price 1 day before: 50.937
Stock Price at release: 50.9149
Risk-Free Rate at release: 0.0016
| 47.1402 |
Symbol: CIM
Security: Chimera Investment Corporation
Related Stocks/Topics: Markets|NLY
Title: REIT ETFs Are Picking Up Steam
Type: News
Publication: ETF Trends
Publication Author: Unknown
Date: 2010-11-29 09:00:00
Article: Real Estate Investment Trusts (REITs) are presenting opportunity as some of the largest commercial real estate companies have raised their dividends. Related exchange traded funds (ETFs) are a good way to access this segment of the market. REIT investment and the ETFs that hold them are a good diversification tool for investors as they offer a low correlation to other asset classes, moving in different directions than bonds and other types of stocks. [Roger Friedman for The Motley Fool reports that](http://www.fool.com/investing/dividends-income/2010/11/19/3-reits-for-your-watchlist.aspx) these investments potentially offer a way to capitalize on the economic downturn.[ [REIT ETFs Quietly Storm The Markets](http://www.etftrends.com/2010/09/reit-etfs-quietly-storm-markets/) .]Three companies to watch, according to The Motely Fool, include: - Anworth Mortgage Asset ([ANH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ANH&selected=ANH)) ) - Chimera Investment ([CIM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CIM&selected=CIM)) ) - Annaly Capital Management ([NLY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NLY&selected=NLY)) ) Overall, the industry for REITs is half a century old this year, and to celebrate, many landlords are giving the gift of larger dividends. [A.D. Pruitt for The Wall Street Journal reports](http://online.wsj.com/article/SB10001424052748703628204575618701966675426.html) the higher payouts reflect the higher rents and better occupancy levels, which are boosting the income pool for dividends. Since the beginning of the year, 37 REITs have raised dividends; seven have cut dividends. This is a turn around for the industry as last year 61 cut or suspended their payouts.[ [Signs Of Strength In Commercial REIT ETFs](http://www.etftrends.com/2010/11/signs-strength-commercial-reit-etfs/) .] Remember that although conditions are looking more fertile for growth, there is a way to go to get back to any highs seen in 2005 or 2006, when dividend increases reached 104 and 100, respectively. However, the outlook is looking much better for the long term.Related ETFs: - **SPDR Dow Jones REIT (NYSEArca: RWR)** - **First Trust S&P REIT (NYSEArca: FRI)** - **iShares FTSE NAREIT Industrial/Office (NYSEArca: FIO)** Tisha Guerrero contributed to this article.
Stock Price 4 days before: 4.05279
Stock Price 2 days before: 4.05099
Stock Price 1 day before: 4.05184
Stock Price at release: 4.06
Risk-Free Rate at release: 0.0016
| 4.12926 |
Symbol: BKE
Security: The Buckle, Inc.
Related Stocks/Topics: Markets|DDS
Title: Are There Deals to be had in Retail Stocks?
Type: News
Publication: Wyatt Investment Research
Publication Author: Unknown
Date: 2010-11-29 12:00:00
Article: Recession be damned, Americans appear determined to spend what they can this holiday season.[MarketWatch](http://www.marketwatch.com/story/cyber-monday-kicks-off-online-season-2010-11-28) reports that the National Retail Federation survey indicated that the number of shoppers jumped 8.7 percent over the four day holiday weekend, and that average spending rose 6.4 percent. Hopefully the rise in spending was done responsibly. The recession should have taught many consumers the downfall of too much leverage. If they have learned their lesson they won't foolishly run up debt in the countdown to Hanukkah, Christmas or Kwanza.Now with the Black Friday kickoff to the shopping season in the books, retailers have a better idea of what to expect for the rest of the year.And it appears that a little luxury is on many shopping lists. According to the MasterCard Advisors' SpendingPulse survey, in the first 18 days of November luxury goods sales were up 6.7 percent and jewelry spending increased 8.1 percent over the same period last year.So far I haven't seen any jewelry stocks that truly interest me, although I still like this [gold grading company that pays an 8.9 percent dividend](http://pro.smallcapinvestor.com/landing/dividends/scilanddivkevdp.htm) .The wealthy probably fared better than many others in this latest recession, so I've been looking at where they shop to see if I can find small cap stock bargains for investors. ***A stock that should interest value investors is **Dillard's ([DDS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DDS&selected=DDS)) ),** a regional department store chain which shot up 53 percent in the past three months. Dillard's pays a .5 percent dividend, and while projected sales growth is pretty flat, earnings are growing. I think the company still has room to grow, as this [Forbes blog](http://blogs.forbes.com/zacks/2010/11/19/dillards-rewards-value-investors-gains-momentum/?partner=yahootix) points out. Dillard's has a forward P/E of 14, indicating that shares are more reasonably priced as compared to competitors.Another stock I'm looking at is **Ann Taylor Stores ([ANN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ANN&selected=ANN)) ),** which is predicting its fourth-quarter sales will approach $500 million. The women's apparel retailer also expects same-store sales for the holiday quarter to grow between 5 and 9 percent. The stock, trading in the mid-$20s, has a forward P/E of 17. Friedman, Billings & Ramsey analysts just bumped up their 12-month price target by $3, to $30 indicating that the stock has over 10 percent upside.Back on October 8, I wrote about **Buckle ([BKE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BKE&selected=BKE)) ) in [Shopping for a Bargain in Premium Apparel](http://www.smallcapinvestor.com/article/shopping-for-a-bargain-in-premium-apparel/22549)** . The company sells premium denim, mostly to the teen market. The stock is up nearly 25 percent since my article and with a forward P/E of 14 still looks like a bargain.I predicted that the company appeared to be in a position to pay a special dividend like it did in 2009. That prediction was accurate, and in fact Buckle will pay a $2.50 per share special dividend on December 21. It's a well-run company that's still an attractive play. ***Because of the large number of people I've heard from that missed my Black Friday sale this weekend, I've decided to extend the sale for Small Cap Investor PRO until tonight at 11:59 pm eastern time. This offer gives you Small Cap Investor PRO for 50 percent off the regular subscription price! [Just follow this link and you'll be ushered through our system so you can start taking advantage of our small cap stock research today - no lines, and no waiting.](http://pro.smallcapinvestor.com/landing/dividends/scilanddivkevsciblk.htm)
Stock Price 4 days before: 38.1935
Stock Price 2 days before: 38.4464
Stock Price 1 day before: 38.5443
Stock Price at release: 38.2167
Risk-Free Rate at release: 0.0016
| 37.5577 |
Symbol: URG
Security: Ur-Energy Inc.
Related Stocks/Topics: Markets|CCJ
Title: Uranium Price Hitting New Highs: The New Yellow Metal
Type: News
Publication: SeekingAlpha
Publication Author: Unknown
Date: 2010-11-30 04:31:00
Article: ** [Jeb Handwerger](http://goldstocktrades.wordpress.com/) submits:**In 1883, a historic cataclysm of 10 days shook the world and vaporized Krakatoa, an island between Java and Sumatra. An umbrella of ash rose 50 miles high and sent sonic reverberations seven times around the world. Deaths numbered 120,000. Scientists of that time were awed by the magnitude of nature's forces that were being unleashed. They speculated that one day ways would be found to harness this energy. Even the Bible concurred with the physicists, that all inert matter contained particles of energy that if harnessed could provide inexpensive and abundant energy to replace the coal, steam, and oil that fueled the industrial revolution of that era. Now, if Faraday and Boyle could return to 2010 they could witness the fulfillment of their most visionary dreams with the advent of The Nuclear Age.International demand for U2O6 is rising. Knowledgeable investors who made a killing when uranium reached $136 a pound in June 2007 are once again in the accumulation mode. The Russians, Koreans, and particularly the Chinese are investing in joint ventures all over the world to gain control of future supply. In fact, our contract with Russia to dismantle nuclear warheads expires in 2013, not far away. This will further exacerbate the supply and demand deficit. China is likely to purchase offtake agreements with uranium miners who don't have any.It's important to find the miners who are in the driver's seat. This is the miners' market to catch a solid bid at higher levels. Certain miners who are close to production with uranium that's not yet purchased are set up to reap the benefits of this hot sector. Recently, U2O6 hit a 24-month high of $53.50 a pound. Typically, when uranium begins to make its upward move it does so with atomic force, giving large profits to the lucky holders.It's interesting to note that only eight mines in the world yield more than 50% of global production. Moreover, in reality, there's not a lack of uranium deposits, but there is a lack of assets that possess production potential. Already in the United States there are a 104 plants with more coming. China has 11 plants and is constructing another 28 reactors. This doesn't include the facilities existing in France, Germany, Japan, Iran, among others. Today's nuclear plants are sophisticated, safe, and efficient, far removed from the fossils of yesteryear.As gold got overbought in October, and I saw a coming rally in the US dollar, [I focused on the junior uranium miners](http://goldstocktrades.com/blog/2010/10/21/time-to-buy-uranium-miners-in-wyoming/) in Wyoming as many miners were expected to receive licenses. Some of the miners out of Wyoming have made huge percentage gains -- such as **Uranerz** ([URZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=URZ&selected=URZ)) ), **UR Energy** ([URG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=URG&selected=URG)) ), **Cameco** ([CCJ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CCJ&selected=CCJ)) ), and **Uranium One** (SXRZF.PK) -- as mines have begun to receive permits to begin operation. Earlier, Uranium One received its NRC license on its Moore Ranch Project and last week Uranerz received its draft license on its Nichols Ranch project.[](http://static.seekingalpha.com/uploads/2010/11/30/saupload_11_30jeb.jpg)(Click to enlarge) Uranerz has doubled in the past month. Other miners should be receiving their licenses shortly and should be rerated by Wall Street. There are 13 other mines being developed in Wyoming. Wyoming produces the largest amount of domestic uranium with Cameco's Smith Ranch Mine, which is also the largest US facility. Not all of these mines will move to production and only a select few have no local opposition and other key permits. **Disclosure:** Author long uranium mining stocksSee also [Is This the End for BP?](http://seekingalpha.com/article/242031-is-this-the-end-for-bp?source=nasdaq) on seekingalpha.com
Stock Price 4 days before: 1.94167
Stock Price 2 days before: 1.9877
Stock Price 1 day before: 1.99
Stock Price at release: 1.96344
Risk-Free Rate at release: 0.0018
| 2.88415 |
Symbol: URG
Security: Ur-Energy Inc.
Related Stocks/Topics: Unknown
Title: 4 Uranium Penny Stocks to Buy
Type: News
Publication: Louis Navellier
Publication Author: Unknown
Date: 2010-11-30 08:41:00
Article: If you're looking for penny stock investments, chances are you focus on biotech stocks or technology picks. But don't overlook the energy industry. While the oil majors like **Exxon Mobil** (NYSE: [XOM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=XOM&selected=XOM) ) and Dow component **Chevron** (NYSE: [CVX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CVX&selected=CVX) ) are indeed some of the biggest corporations in the world by market cap, there are plenty of tiny energy penny stocks out there worth your while.In fact, if you look outside of conventional crude oil stocks there are a number of penny stocks with big profit potential - including some with a focus on nuclear energy and uranium. Here are four of my favorite energy penny stocks to buy right now that all focus on uranium and the nuclear power industry.Denison Mines Corp. ([DNN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DNN&selected=DNN)) )**Denison Mines Corp.** (AMEX: [DNN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DNN&selected=DNN) ) is engaged in the acquisition, exploration and development of uranium bearing properties. The company also extracts, processes, sells and reclaims uranium. Year-to-date, this penny stock has jumped an incredible +145.7%, compared to a gain of +5.6% for the Dow Jones Industrial Average. Last quarter, DNN posted a difference of six cents from its actual quarterly earnings to its original earnings estimate. Trading at $3.08, DNN has a yearly stock range of $1.08 to $3.31.Uranerz Energy Corp. ([URZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=URZ&selected=URZ)) )**Uranerz Energy Corp.** (AMEX: [URZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=URZ&selected=URZ) ) is also involved with the acquisition, development and development of uranium properties. The company mainly operates in Texas, Wyoming and Saskatchewan, Canada. Since January, URZ stock has gained +204.6%, compared to much smaller gains by the broader markets. Uranerz may have a market cap of just $255 million, but the penny stock does offer great potential profits. URZ is close to its 52-week high of $4.13, as it currently trades at $4.00.Uranium Resources I ([URRE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=URRE&selected=URRE)) ) Headquartered in Texas, **Uranium Resources I** (NASDAQ: [URRE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=URRE&selected=URRE) ) is a uranium exploration, mine development and production company. URRE is the biggest gainer on this list, as the stock has jumped +374% since January. In fact, since September the uranium developer has gained +462%! URRE may be the best buy on this list, with its inexpensive stock price of just $3.65. Finally, the stock is trading very close to its 52-week high of $3.71.Ur-Energy Inc. ([URG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=URG&selected=URG)) )**Ur-Energy Inc.** (AMEX: [URG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=URG&selected=URG) ) is engaged in the identification, acquisition, evaluation, exploration and development of uranium in Canada and the United States. Year-to-date, URG stock is up +175%, and is up +154% since the start of September. Fittingly, URG rounds out the list as another stock that is approaching its 52-week high. Currently trading at $2.10, URG stock is just eight cents below its highest mark of the year. As of this writing, Louis Navellier did not own a position in any of the stocks named here.
Stock Price 4 days before: 1.94797
Stock Price 2 days before: 1.9877
Stock Price 1 day before: 2.01018
Stock Price at release: 1.96344
Risk-Free Rate at release: 0.0018
| 2.95615 |
Symbol: DNN
Security: Denison Mines Corp.
Related Stocks/Topics: URG|Markets|XOM
Title: 4 Uranium Penny Stocks to Buy
Type: News
Publication: Louis Navellier
Publication Author: Unknown
Date: 2010-11-30 08:41:00
Article: If you're looking for penny stock investments, chances are you focus on biotech stocks or technology picks. But don't overlook the energy industry. While the oil majors like **Exxon Mobil** (NYSE: [XOM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=XOM&selected=XOM) ) and Dow component **Chevron** (NYSE: [CVX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CVX&selected=CVX) ) are indeed some of the biggest corporations in the world by market cap, there are plenty of tiny energy penny stocks out there worth your while.In fact, if you look outside of conventional crude oil stocks there are a number of penny stocks with big profit potential - including some with a focus on nuclear energy and uranium. Here are four of my favorite energy penny stocks to buy right now that all focus on uranium and the nuclear power industry.Denison Mines Corp. ([DNN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DNN&selected=DNN)) )**Denison Mines Corp.** (AMEX: [DNN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DNN&selected=DNN) ) is engaged in the acquisition, exploration and development of uranium bearing properties. The company also extracts, processes, sells and reclaims uranium. Year-to-date, this penny stock has jumped an incredible +145.7%, compared to a gain of +5.6% for the Dow Jones Industrial Average. Last quarter, DNN posted a difference of six cents from its actual quarterly earnings to its original earnings estimate. Trading at $3.08, DNN has a yearly stock range of $1.08 to $3.31.Uranerz Energy Corp. ([URZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=URZ&selected=URZ)) )**Uranerz Energy Corp.** (AMEX: [URZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=URZ&selected=URZ) ) is also involved with the acquisition, development and development of uranium properties. The company mainly operates in Texas, Wyoming and Saskatchewan, Canada. Since January, URZ stock has gained +204.6%, compared to much smaller gains by the broader markets. Uranerz may have a market cap of just $255 million, but the penny stock does offer great potential profits. URZ is close to its 52-week high of $4.13, as it currently trades at $4.00.Uranium Resources I ([URRE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=URRE&selected=URRE)) ) Headquartered in Texas, **Uranium Resources I** (NASDAQ: [URRE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=URRE&selected=URRE) ) is a uranium exploration, mine development and production company. URRE is the biggest gainer on this list, as the stock has jumped +374% since January. In fact, since September the uranium developer has gained +462%! URRE may be the best buy on this list, with its inexpensive stock price of just $3.65. Finally, the stock is trading very close to its 52-week high of $3.71.Ur-Energy Inc. ([URG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=URG&selected=URG)) )**Ur-Energy Inc.** (AMEX: [URG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=URG&selected=URG) ) is engaged in the identification, acquisition, evaluation, exploration and development of uranium in Canada and the United States. Year-to-date, URG stock is up +175%, and is up +154% since the start of September. Fittingly, URG rounds out the list as another stock that is approaching its 52-week high. Currently trading at $2.10, URG stock is just eight cents below its highest mark of the year. As of this writing, Louis Navellier did not own a position in any of the stocks named here.
Stock Price 4 days before: 2.99978
Stock Price 2 days before: 3.22013
Stock Price 1 day before: 3.26163
Stock Price at release: 3.18098
Risk-Free Rate at release: 0.0018
| 3.45 |
Symbol: GES
Security: Guess', Inc.
Related Stocks/Topics: Unknown
Title: Guess run is questioned at highs
Type: News
Publication: optionMONSTER
Publication Author: Unknown
Date: 2010-12-01 01:34:00
Article: Guess has been on a blistering run, leading one trader to quit while he's ahead. [GES](http://www.optionmonster.com/cms/commentary/images/gespre120110.png) optionMONSTER's tracking programs detected the sale of about 2,600 December 45 calls for $3.60 against open interest of 2,334 contracts. The trade pushed total option volume in the apparel retailer to 17 times greater than average. GES fell 1.65 percent to $47.70 yesterday but is up 44 percent in the last three months. It's been climbing on strong overseas demand and gapped higher after its last earnings report on Nov. 23.That surge sent the shares to a three-year high, slightly above the level where they peaked last April. Given the magnitude of the recent move and the possible resistance around this price, some chart watchers may expect a pullback in coming weeks.Yesterday's call selling reflects that sentiment and was probably done by an investor looking to fix an exit price of $48.60. If GES drops below $45 the trader will get to keep the shares and the premium.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
Stock Price 4 days before: 50.9495
Stock Price 2 days before: 50.9149
Stock Price 1 day before: 48.6496
Stock Price at release: 47.2712
Risk-Free Rate at release: 0.0017
| 47.8591 |
Subsets and Splits