Rieder: With Couric, Yahoo makes big bet on video

Marissa Mayer is making a big bet on video.

In luring Katie Couric from broadcast to tech, the Yahoo CEO is underscoring that a heavy emphasis on content in general and video in particular will be a key part of her strategy to turn around the aging web portal.

It's widely reported that Couric, long a major star in television news, will leave ABC and soon sign on as Yahoo's "global news anchor." Couric is expected to conduct interviews with major players on the Yahoo homepage.

For Couric, former coanchor of NBC's Today show and the first female anchor of the CBS Evening News, it's an exciting opportunity to reinvent herself in a new medium. Her profile in recent years has been decidedly lower as the host of the syndicated show Katie and as a little-used ABC News special correspondent.

For Mayer, this is another bold move in her effort to breath new life in the once moribund Silicon Valley icon.

Top 10 Prefered Companies To Watch In Right Now

To be sure, the firm has made great progress since Mayer left Google to take the helm at Yahoo on July 17, 2012. By sheer force of personality and will, the high-profile executive has radically changed the image of the company, very much for the better. Yahoo is cool again, or getting there.

She attracted attention by posing for a glam fashion spread for Vogue and engaging the public in revamping the company's logo. She made some big-ticket acquisitions, including the hot blog platform Tumblr. She went after top talent. She upgraded the apps.

And Yahoo's stock has soared. It sold at $15.65 the day before she arrived. It closed Friday at $36.49, a jump of 133%. During the same period, the S&P went up by 33 percent. Not too shabby.

Of course, Mayer had a little help from her friends here Much of the company's success on The Street has been due to its stake in Alibaba, a well-regarded Chinese e-commerce and au! ction firm that came into the company pre-Mayer.

Regardless, there's no doubt that the former Google exec has done a remarkable job reversing Yahoo's course in her first 16 months. But a formidable, and overarching, challenge looms.

Advertising is Yahoo's core revenue source and, squeezed by the likes of Google and Facebook, Yahoo's ad business remains flat. That's a problem that must be fixed -- easier said than done in the highly competitive world of digital ads.

But it's becoming clear that content, with a heavy emphasis on video, will be a key element in Mayer's efforts to buttress the fortunes of the Silicon Valley giant she runs.

In September, Yahoo hired Megan Liberman away from The New York Times to head up Yahoo News. The company said Liberman will lead "a major expansion of Yahoo News, bringing in new voices and defining features for the site. She will focus primarily on original reporting, social news gathering, video and live events coverage."

The following month, Mayer returned to her New York Times farm club to poach big-name tech columnist David Pogue. Known for his reviews of gadgets and enthusiasm for all things tech, Pogue will contribute columns, blog posts and, significantly, video.

Pogue is no doubt a major get. But the imminent arrival of Couric raises the stakes dramatically. She's one of the preeminent TV personalities of the last couple of decades. The symbolism of her leap from TV and the defection of the Times talent to the digital world is obvious.

(These tech hitters seem to love the journalism. Amazon.com founder and CEO Jeff Bezos recently bought The Washington Post, and eBay founder Pierre Omidyar is sinking $250 million into a major journalism startup.)

Asked to confirm the Couric hire, a Yahoo spokeswoman emailed Sunday, "We don't have anything to share at this time." But lending weight to its likelihood is the fact that one of those reporting on it is Kara Swisher of the tech website AllThingsD, who is very well sour! ced at Ya! hoo.

So Yahoo moves ever deeper into the content world. It's a surprise, given that most felt that Mayer's push would be much more on the product side. The video emphasis is understandable, given that video ads seem much more attractive to buyers than traditional web ads.

There are certainly no guarantees. This is a very competitive battlefield.

But give Mayer big props for making an audacious move.

.

Average rate on 30-year mortgage at 4.1%

WASHINGTON — Average U.S. rates on fixed mortgages fell for the second straight week and are at their lowest levels in four months.

Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan declined to 4.10 percent from 4.13 percent last week. The average on the 15-year fixed loan eased to 3.20 percent from 3.24 percent.

Rates have been falling since September when the Federal Reserve surprised investors by continuing to buy $85 billion a month in bonds. The purchases are intended to keep long-term interest rates low.

Rates had spiked over the summer when the Fed indicated it might reduce those purchases later this year. But hiring has slowed since then. Many now expect the Fed won't taper until next year.

The average on the 30-year loan has now fallen about half a percentage point since a hitting two-year high over the summer. The lower rates appear to be sparking a surge in activity by prospective homebuyers and homeowners looking to refinance.

Mortgage applications jumped 6.4 percent in the week ended Oct. 25 from the previous week, according to the Mortgage Bankers Association. Applications for purchases rose 2 percent from a week earlier, while refinance applications soared nearly 9 percent.

U.S. home prices rose in August from a year earlier at the fastest pace since February 2006, according to the latest Standard & Poor's/Case-Shiller 20-city home price index. But the price gains slowed in many cities from July, a sign that the spike in prices over the past year may have peaked.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage declined to 0.7 point from 0.8 point. The fee for a 15-year loan rose to 0.7 point from 0.6 point.

The average rate on a o! ne-year adjustable-rate mortgage increased to 2.64 percent from 2.60 percent. The fee eased to 0.4 point from 0.5 point.

The average rate on a five-year adjustable mortgage dipped to 2.96 percent from 3.00 percent. The fee was unchanged at 0.4 point.

Can the Magic Kingdom Outduel a Boy Wizard?

AP Photo/Universal OrlandoAn artist's rendering of the new Diagon Alley area at Universal Orlando Resort this summer. Harry Potter is the boy wizard who keeps on giving for the Universal Orlando resort in Florida. The theme park operator -- owned by Comcast (CMCSK) -- hosted "A Celebration of Harry Potter" this past weekend, inviting guests to interact with actors from the popular movie series. Attendees were also treated to an exhibit showcasing movie props and received training in wand dueling. There was even a "Sorting Hat" experience. However, the highlight of the experience may have taken place on the eve of the three-day affair when Universal hosted a celebrity-backed webcast detailing the ambitious expansion of its Potter-themed attractions. Two Parks Are Better Than One It's been four years since Universal opened The Wizarding World of Harry Potter at Universal Orlando's Islands of Adventure theme park. Debuting at a time when J.K. Rowling's franchise was still near the peak of its frenzied fandom, some guests had to wait more than 10 hours to get into richly themed section of the park fashioned after the series' Hogsmeade Village. It was a hit. Attendance at the park spiked a whopping 30 percent in 2010. That's an unheard of increase for the theme park industry, but the appeal of sipping Butterbeer, stepping into Ollivander's for a magic wand demonstration, and hopping on a thrill ride inside Hogwarts was too tempting for tourists to pass up. Later this year, Universal will recreate London's Diagon Alley at the adjacent Universal Studios Florida theme park. An ride aboard the Hogwarts Express will connect the two areas. Beyond exploring the shops and watering holes that Rowling originally imagined, a thrill ride awaits inside Gringotts Bank, the cornerstone of the new land that's even topped by a fire-breathing dragon. Disney Fights Back The jump in attendance wasn't contagious through Central Florida when the Potter attraction first opened. Sure, Universal Studios Florida benefited with a 6 percent increase, but the turnstiles clicked more slowly at three of Disney's (DIS) four Florida theme parks. Disney's Magic Kingdom suffered a nearly 2 percent dip in attendance in 2010. But the House of Mouse will be ready this time. Realizing that Universal Orlando is going to be a big draw for Florida-trekking travelers this summer, Disney isn't standing still. It's opening a new Snow White-themed mine coaster in a few months to go along with 2012's New Fantasyland makeover. Universal Orlando's push for a licensed franchise to breathe new life into its operations also inspired Disney to look outside of its deep bench of characters. It turned to James Cameron's "Avatar" franchise for a new area at Animal Kingdom that will open by 2017. Disney had spent billions on Pixar and Marvel and it would go on to shell out billions for Lucasfilm after the expansion was announced. However, Universal's spare-no-expense push to bring guests into Potter's world was a game changer. Disney had been neglecting its parks, often settling for ho-hum additions. The Wizarding World of Harry Potter changed that. It made Disney realize that it couldn't phone it in anymore. It invested heavily in the well-received "Cars" Land expansion in California, and it's just getting started in Florida with the New Fantasyland debut. There's no lack of chatter about what Disney's working on to improve Disney's Hollywood Studios in Florida which has become the media giant's least visited park in Florida after being overtaken by Animal Kingdom. Disney is unlikely to concede that its aggressive spending is a direct response to what's happening at Universal Orlando. However, if 2014 plays out the way that 2010 did -- with Universal experiencing big gains in attendance at the expense of Disney's nearby attractions -- there will be little doubt that an arms race in attractions is just getting started.

Top 5 Penny Companies For 2014

United States

Walt Disney (DIS)

Attendance:

2008: 118,000,000

2009: 119,100,000

2010: 120,600,000

1) Walt Disney Parks and Resorts

United Kingdom 

Attendance:

2008: 35,200,000

2009: 38,500,000

2010: 41,000,000

2) Merlin Entertainments Group

United States

Attendance:

2008: 25,700,000

2009: 23,700,000

2010: 26,300,000

3) Universal Studios Recreation Group

Spain

Attendance:

2008: 24,900,000

2009: 24,800,000

2010: 25,800,000

4) Parques Reunidos

United States

Six Flags, Inc. (SIX)

Attendance:

2008: 25,300,000

2009: 23,800,000

2010: 24,300,000

5) Six Flags Inc.

United States

Attendance:

2008: 23,000,000

2009: 23,500,000

2010: 22,400,000

6) SeaWorld Parks & Entertainment

United States

Cedar Fair, L.P. (FUN)

Attendance:

2008: 22,700,000

2009: 21,100,000

2010: 22,800,000

7) Cedar Fair Entertainment Company

 People's Republic of China

Attendance:

2008: 13,400,000

2009: 15,800,000

2010: 19,300,000

8) OCT Parks China

United States

Attendance:

2008: 8,300,000

2009: N/A

2010: 9,600,000

9) Herschend Family Entertainment Corporation

France

Casey’s General Stores Beat Q1 Estimates with Higher Profits (CASY)

After the bell on Monday, Casey’s General Stores (CASY) announced its fiscal Q1 earnings, posting a strong increase in profits and overall revenues compared to the same time period last year.

The Ankeny, IA-based convenience store company announced quarterly revenues of $2.11 billion, which were up from $1.87 billion in last year’s same quarter. Profits for the company came in at $55.71 million, or $1.43 per share, compared to $39.03 million, or $1.01 per share, in last year’s Q1.

Both of these figures beat analysts’ estimates, which were EPS of $1.26 on revenues of $2.1 billion.

CASY shares were up $1.01, or 1.49%, at market close on Monday. YTD, the stock is up more than 26%.

Does This Company Still Have the Secret Sauce?

AFC Enterprises (NASDAQ: AFCE  ) , which owns the Popeye's Louisiana Kitchen quick- serve chain, once an undiscovered gem, has now soared 66% over the last year.

Love that chicken!
It's not surprising, as the National Chicken Council reports Americans are the most chicken-loving in the world, eating 83.6 pounds per capita annually -- and we love it best fried. 

AFC Enterprises has grown its Popeye's and Popeye's Louisiana Kitchen restaurants so now competes with the big boys like Yum! Brands (NYSE: YUM  ) . Yum! Brands as a global chicken restaurant.

It doesn't hurt that CEO Cheryl Bachelder learned the trade as a former Yum! Brands executive. The company is mostly franchisee-run and utilizes many of the same tricks as Yum! Brands like special menu items. So far it's paid off as revenues have grown by 16.3% this last year.

The company's secret sauce is Cajun cooking and fried chicken and it has served AFC Enterprises well, returning 326.9% in share price appreciation since 2008.

On August 20, the company reported strong second-quarter results with an increase of 30% to diluted EPS from $0.27 to $0.35. It also grew free cash flow from $18.2 million in the year-ago period to $21.8 million and now boasts 13 straight quarters of positive comparable-same-store sales. The company also raised guidance to between 3.5% and 4.5% global same-store sales growth.

How high is up
This strength has also led the company to announce more store openings than previously planned. It now expects to debut between 170 and 195 locations in fiscal 2013 with 60 of them international, adding onto the current total of 2,153 restaurants.

The company has been remodeling its stores from Popeye's to Popeye's Louisiana Kitchen with close to 80% to be finished in 2014. In an interview on CNBC for Mad Money, CEO Cheryl Bachelder added those remodeled stores get an almost immediate 3%-to-4% rise in comps.

When asked about international growth, Bachelder answered,"How high is up?,"  speaking of the limitless possibilities overseas; Popeye's is located in 26 countries and 44 US states.

A chicken-wing upstart
But with success comes competition. McDonald's (NYSE: MCD  ) is debuting its own Mighty Wings nationally, chicken wings seasoned similarly to Popeye's New Orleans style with cayenne and chili pepper. The huge quantity of wings that McDonald's will need likely driving up prices from $1.44 a pound most recently will of course, affect the entire space including Yum! Brands, AFCE, and chicken focused Buffalo Wild Wings (NASDAQ: BWLD  )   

Burger Business, a trade publication, noted that McDonald's previous test of the wings in Atlanta (AFC Enterprises headquarters) was very popular with consumers and could provide stiff competition. Could McDonald's have AFCE in its sights with these New Orleans style offerings at its 14,000 US restaurants?

Sterne Agee analyst Lynn Collier told The Huffington Post keeping Mighty Wings on the menu beyond November would depend upon  chicken wings staying cheap as the company moves away from higher-priced beef  offerings.

McDonald's certainly needs something to bring up same-store sales. US same- store sales in July were up 1.6%, credited to its Monopoly promotion and breakfast menu. Last January, Jack Russo, analyst for Edward Jones, speculated the new wings could bring in dinner business for McDonald's,typically a weaker time of day accounting for 20% of sales, according to Bloomberg Business Week.

A food blogger for Serious Eats was seriously in love with the Mighty Wings and said they were "perhaps on par with what the big chicken shacks are cranking out." He noted it took 10 minutes for an order of 18 wings.

Many McDonald's orders are drive through, so there is merit when he wrote, "They need to speed up the process so I can be back home with the grub before kickoff." The nationwide roll-out on September 9 better show McDonald's more prepared than in test-market Atlanta.

Flour plus batter = profits
AFC Enterprises has a sweet operating margin of 28.7% and quarterly EPS growth (year-over-year) of 28.8%. But the run in share price is making it a little rich, with a price to sales of 5.1 and a trailing earnings multiple of 34x.

Meanwhile at McDonald's  the stock is virtually flat, up only 5% over the last year. Unsurprising when quarterly earnings growth is an anemic 3.7%. To be fair, McDonald's operating margin at 30.8% is higher than AFC Enterprises and the trailing earnings multiple lower at 17.3.

What must Yum! Brands think of these wings on its own turf? Yum! Brands offers wings not only at its KFC locations but also at Pizza Hut. Yum! Brands has 39,000 locations globally in 125 countries and over 80% of Yum! restaurants, including  Taco Bells, are franchised.

Yum! Brands reported a similar lackluster US sales rise of 1% in its July 10 earnings release. Yum! has now reported three consecutive disappointing quarters, taking the quarterly EPS growth rate down to -15.1% year-over-year.

Hoping to boost US sales, the company debuted a new menu item at Taco Bell, the fiery Doritos loco taco, and boneless wings at KFC.

Yum! Brands has a lower operating margin than these other two at 15.7% and a lower yield than McDonald's at 1.8%. 

Gentleman, to your fryers!
Will the Mighty Wings take share from both AFC Enterprises and Yum!? It just may but Popeye's customers are quite loyal and the restaurants offer Cajun style sides unavailable at these fast-food giants. AFC Enterprises has better growth prospects but a lot of that potential has been reflected in the share price. 

McDonald's may see rising comps from Mighty Wings and improve its dinner sales. For the income focused, it's dividend aristocrat title is attractive as well, and it is more conservatively valued that AFC Enterprises. 

As for Yum! Brands, it could see the most market share taken away. I would be careful with any position in Yum!, especially if McDonald's drives up the wings' commodity costs and causes domestic weakness

But of course if you really want to get rich you need to think international, and that's where McDonald's and Yum! Brands have a leg up. That's one reason we named them as winners in The Motley Fool's free report "3 American Companies Set to Dominate the World". Click here to get your free copy and uncover the third company before it's gone.

 

Top 10 Financial Stocks To Invest In 2014

Investors have anxiously waited for today's employment report to lend some perspective to the Federal Reserve's most recent comments about letting up on quantitative-easing program. June's better-than-expected addition of 195,000 jobs initially sent stock markets soaring, especially given the upward revisions to April's and May's figures of another 70,000 jobs and a rise in the unemployment rate that reflected more workers entering the labor market. Yet the stock market rally didn't last long, as bond investors responded negatively to the news, concluding that a reduction in Fed stimulus will come sooner rather than later. Bond yields on the 10-year Treasury soared by a fifth of a percentage point to 2.7% -- an extremely large move in a market where most moves are measured in hundredths of a percentage point -- and as of 10:55 a.m. EDT, the Dow Jones Industrials (DJINDICES: ^DJI  ) had given up nearly all their gains, trading up just 14 points.

Within the Dow, most stocks are having a quiet day. Home Depot is down 0.2%, even though the employment report highlighted increased employment in building-materials and garden-supply stores: A gain of 9,000 jobs in the segment contributed to overall retail job growth of 37,000 in June. Similarly, Travelers has fallen 0.3%, with the government reporting that insurance carriers added 6,000 jobs as part of the 17,000-job rise in financial employment overall.

Top 10 Financial Stocks To Invest In 2014: Southern National Bancorp of Virginia Inc.(SONA)

Southern National Bancorp of Virginia, Inc. operates as the bank holding company for Sonabank, which provides commercial banking products and services primarily to small and medium-sized businesses, and retail clients in the United States. It offers deposit products, including non-interest-bearing and interest-bearing checking accounts, commercial checking accounts, money market accounts, savings accounts, time deposits, and certificates of deposit. The company also provides commercial mortgage and non-mortgage loans, including commercial real estate loans, construction to permanent loans, development and builder loans, accounts receivable financing, lines of credit, equipment and vehicle loans, leasing, and commercial overdraft protection; small business administration loans and stand-by letters of credit; single family residential construction loans; home equity lines of credit; and secured and unsecured consumer loans primarily for personal, family, or household purpose s. In addition, it offers cash management services, including investment/sweep, zero balance, and controlled disbursement accounts; and wire transfer, employer/payroll processing, night depository, lockbox, depository transfers, merchant, ACH originations, check 21 processing, and asset based lending services. The company?s other consumer/retail products and services include debit and credit cards, ATM services, travelers? checks, savings bonds, notary services, telephone banking, and online banking with bill payment services. As of June 29, 2011, it operated through 13 banking offices in McLean, Front Royal, Fairfax, New Market, Reston, Leesburg, Warrenton, South Riding, Charlottesville, Middleburg, and Clifton Forge County in Virginia, as well as 1 banking office in Rockville, Maryland; and loan production offices in Charlottesville, Fredericksburg, Warrenton, and Richmond in Virginia. The company was founded in 2004 and is headquartered in McLean, Virginia.

Top 10 Financial Stocks To Invest In 2014: North Valley Bancorp(NOVB)

North Valley Bancorp operates as a bank holding company North Valley Bank that provides commercial and retail banking services to businesses and middle income individuals in California. The company accepts various deposit products, including demand deposits, interest bearing demand deposits, regular savings, money market deposit accounts, non-interest bearing deposits, and time deposits. It also provides various loan products comprising commercial loans; real estate commercial, construction, and mortgage loans; installment loans; consumer loans; and home equity loans. In addition, the company issues cashier?s checks and money orders; and sells travelers checks, as well as offers safe deposit boxes and other customary banking services. It operates 25 commercial banking offices in Shasta, Trinity, Humboldt, Del Norte, Yolo, Sonoma, Placer, and Mendocino counties. The company was founded in 1972 and is headquartered in Redding, California.

Top 10 Undervalued Stocks For 2014: Sovran Self Storage Inc.(SSS)

Sovran Self Storage, Inc. operates as a real estate investment trust (REIT). It engages in the acquisition, ownership, and management of self-storage properties in the United States. The company?s self-storage properties offer storage space to residential and commercial users, as well as offer outside storage for automobiles, recreational vehicles, and boats. As of February 15, 2007, it owned and managed 328 properties, consisting of approximately 20.3 million net rentable square feet in 22 states. Sovran Self Storage has elected to be treated as a REIT for federal income tax purposes and would not be subject to income tax to the extent it distributes at least 90% of taxable income to its stockholders. The company was founded in 1982 and is headquartered in Williamsville, New York.

Advisors' Opinion:

• [By Rich Duprey]

  Self-storage REIT�Sovran Self Storage (NYSE: SSS  ) announced today its second-quarter dividend of $0.53 per share, a 10% increase from the payout it made to investors last quarter of $0.48 per share.

Top 10 Financial Stocks To Invest In 2014: Piedmont Office Realty Trust Inc.(PDM)

Piedmont Office Realty Trust, Inc. engages in the acquisition and ownership of commercial real estate properties in the United States. Its property portfolio primarily consists of office and industrial buildings, warehouses, and manufacturing facilities. As of December 31, 2007, the company owned interests in 83 properties that are wholly owned and controlled through consolidated joint ventures. It has elected to be taxed as a real estate investment trust and would not be subject to federal income tax, if it distributes approximately 90% of its taxable income to its shareholders. The company was incorporated in 1997 and is headquartered in Norcross, Georgia.

Advisors' Opinion:

• [By alicet236]

  Piedmont Office Realty Trust Inc. (PDM) Reached the Five-Year Low of $16.73

  The prices of Piedmont Office Realty Trust Inc. (PDM) shares have declined to close to the 5-year low of $16.73, which is 32.6% off the five-year high of $21.32. Piedmont Office Realty Trust, Inc. is owned by one Guru we are tracking. Among them, 0 have added to their positions during the past quarter. One reduced their position. Piedmont Office Realty Trust Inc., a Maryland corporation was incorporated in 1987. Piedmont Office Realty Trust Inc. has a market cap of $2.7 billion; its shares were traded at around $16.73 with a P/E ratio of 33.10 and P/S ratio of 5.02. The dividend yield of Piedmont Office Realty Trust Inc. stocks is 4.78%. Piedmont Office Realty Trust Inc. had an annual average earnings growth of 27.60% over the past five years.

• [By Brad Thomas]

  Other REITs mentioned: (O), (NNN), (STAG), (DCT), (EGP), (PDM), (DRE), (LRY)

  Source: Chambers Street: More Liquidity Magic On The Way In REIT-Dom

  Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

Top 10 Financial Stocks To Invest In 2014: Walker Crips Weddle Beck(WCW.L)

Walker Crips Group plc, an integrated financial services company, offers investment management services in the United Kingdom. Its services include stock broking, fund management, administrating individual savings accounts, and managing clients? deposits in the course of conducting investment business. The company?s services also comprise corporate finance, pension management and advice, corporate trustee services, structured investments design, and personal financial services; and securities trading, ISA/CTF, custody, deposit, and nominee services. In addition, it provides financial advice to individuals, partnerships, and companies; unit trust fund management to private and corporate clients; and corporate broking, as well as pension administration services. Walker Crips Group plc was founded in 1914 and is headquartered in London, the United Kingdom.

Top 10 Financial Stocks To Invest In 2014: Penns Woods Bancorp Inc.(PWOD)

Penns Woods Bancorp, Inc. operates as the holding company for Jersey Shore State Bank that provides commercial and retail banking services to individuals, partnerships, non-profit organizations, and corporations in Pennsylvania. It accepts various time, demand, and savings deposits, including Super NOW accounts, statement savings accounts, money market accounts, fixed rate certificates of deposit, club accounts, checking accounts, and individual retirement accounts. The company also offers loan products, such as secured and unsecured business and consumer loans that include financing commercial transactions, as well as construction and residential mortgage loans, and revolving credit loans with overdraft protection. Its loan products comprise agricultural loans; commercial loans; real estate loans, including construction and land development, farmland, one-to-four family residential, multi-family, and commercial or industrial loans; and consumer loan products consisting of second mortgages, automobile financing, small loan requests, overdraft check lines, and PHEAA referral loans. In addition, the company provides insurance, securities brokerage, financial planning, safe deposit, automated teller machine, Internet, and telephone banking services, as well as annuity and mutual fund investment products. Penns Woods Bancorp operates 12 branch offices in Lycoming, Clinton, and Centre counties in Pennsylvania. The company was founded in 1934 and is based in Williamsport, Pennsylvania.

Top 10 Financial Stocks To Invest In 2014: Territorial Bancorp Inc.(TBNK)

Territorial Bancorp Inc. operates as the bank holding company for Territorial Savings Bank, a federally-chartered savings bank that provides a range of financial services to individuals, families, and businesses in Hawaii. It involves in accepting deposits from the general public and investing those deposits together with funds generated from operations and borrowings in loans and investment securities. The company?s deposit products include passbook and statement savings accounts, certificates of deposits, money market accounts, commercial and regular checking accounts, and NOW accounts. Its loan products include one-to-four-family residential mortgage loans; home equity loans and lines of credit; construction, commercial, and other non-residential real estate loans; consumer loans; and multi-family mortgage loans. The company, through its subsidiary, Territorial Financial Services, Inc., also engages in insurance agency activities. In addition, it provides various non-d eposit investments, including annuities and mutual funds through a third-party broker-dealer. As of December 31, 2010, the company operated 26 full-service branch offices in Hawaii. The company was founded in 1921 and is headquartered in Honolulu, Hawaii.

Advisors' Opinion:

• [By Lisa Levin]

  Territorial Bancorp (NASDAQ: TBNK) shares touched a new 52-week low of $21.31. Territorial Bancorp shares have dropped 9.43% over the past 52 weeks, while the S&P 500 index has gained 16.18% in the same period.

Top 10 Financial Stocks To Invest In 2014: Five Oaks Investment Corp (OAKS)

Five Oaks Investment Corp., incorporated on March 28, 2012, focused on investing in, financing and managing a leveraged portfolio of Agency and Non-Agency residential mortgage-backed securities, or RMBS, residential mortgage loans and other mortgage-related investments. The Company invests in both Agency RMBS and Non-Agency RMBS.

As of December 31, 2012, the Company�� portfolio consisted of Agency RMBS and Non-Agency RMBS. The Company is managed by Oak Circle Capital Partners LLC.

Advisors' Opinion:

• [By Jon C. Ogg]

  Five Oaks Investment Corp. (NYSE: OAKS) was downgraded to Neutral from Outperform at Credit Suisse.

  Marathon Oil Corp. (NYSE: MRO) was downgraded to Neutral from Buy at BofA/Merrill Lynch.

Top 10 Financial Stocks To Invest In 2014: One Liberty Properties Inc.(OLP)

One Liberty Properties, Inc., a real estate investment trust (REIT), engages in the acquisition, ownership, and management of commercial real estate properties in the United States. The company�?s property portfolio includes retail furniture stores, as well as industrial, office, flex, health and fitness, and other properties. As of March 31, 2008, it owned 67 properties; holds a 50% tenancy in common interest in 1 property; and owns 4 properties through joint ventures. The company has elected to be treated as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income tax, if it distributes at least 90% of its taxable income to its shareholders. One Liberty Properties was founded in 1982 and is based in Great Neck, New York.

Advisors' Opinion:

• [By Brian Pacampara]

  Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, commercial REIT One Liberty Properties (NYSE: OLP  ) has earned a coveted five-star ranking.

Top 10 Financial Stocks To Invest In 2014: Global Cash Access Holdings Inc. (GCA)

Global Cash Access Holdings, Inc., through its subsidiaries, provides cash access and data intelligence services and solutions to the gaming industry in the United States and internationally. Its cash access products and services include Casino Cash Plus 3-in-1 ATM, a cash-dispensing machine that offers patrons to access cash through ATM cash withdrawals, point-of-sale debit card transactions, and credit card cash access transactions; check verification and warranty services, which allow gaming establishments to manage and reduce risks on patron checks that they cash; QuikCash, a non-ATM cash access kiosks; and money transfer services. The company also offers cash access equipment, such as full service kiosks, a multi-function patron kiosk for cash access into self-service kiosks for slot ticket redemption and bill breaking services, as well as jackpot kiosks. In addition, it provides information services, such as Central Credit, a gaming patron credit bureau that allows g aming establishments in credit-granting decisions; QuikCash Plus Web and QCPXpress that are cash access transaction processing systems for cashier operations; QuikReports, a browser-based reporting tool that provide access and analysis of information on patron cash access activity; and QuikMarketing/Casino Share Intelligence database services, as well as various Xchange Xplorer products. Further, the company offers cashless gaming products comprising QuikTicket that allows cash access transaction to be completed with a bar coded ticket in lieu of cash. Global Cash Access Holdings, Inc. sells its products and services primarily through direct sales force to traditional land-based casinos, riverboats and cruise ships with gaming operations, gaming establishments operated on Native American lands, pari-mutuel wagering facilities, and card rooms. The company was founded in 1998 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:

• [By Seth Jayson]

  Global Cash Access Holdings (NYSE: GCA  ) reported earnings on May 7. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q1), Global Cash Access Holdings missed slightly on revenues and missed estimates on earnings per share.

• [By Evan Niu, CFA]

  What: Shares of Global Cash Access (NYSE: GCA  ) have plunged today by as much as 10% after the company reported first-quarter earnings.

Lorillard

We know that buying stock in a tobacco company is not for everyone, cautions David Fried, editor of The Buyback Letter. Nevertheless, he considers this tobacco play his favorite income idea for 2014.

The performance and dividend of Lorillard (LO) is something that you need to know about! Indeed, if I could only buy one stock for dividend income, this would be it.

Lorillard is the third largest manufacturer of cigarettes in the US; Newport is its flagship brand. Founded in 1760, Lorillard is the oldest continuously operating tobacco company in the US.

In addition, in April 2012, the company acquired bluecigs, the top-selling electronic cigarette company in the United States.

Lorillard's US market share has increased for ten straight years, to over 14% in 2012, from less than 9% in 2002. Management has hiked the dividend every single year since going public, raising it an average of 12% a year.

It also returned money to shareholders by buying back shares, taking a quarter of the shares off the market in the past five years.

The company has over $2 billion in cash and another $1 billion in cash flow annually. This cash will enable the company to continue to buyback stock and raise dividends in the future, if they so desire.

Best Low Price Companies To Buy For 2014

The company started paying a quarterly dividend in August 2008 of $0.30667 per share. Since then, quarterly dividends have grown an average of about 12.4% a year, as have earnings. LO targets a payout ratio of about 70%.

A $500 million share repurchase program was announced on March 8, 2013; then, in May, Lorillard's Board of Directors amended the program to authorize an additional $500 million in repurchases.

The $1 billion would decrease the shares outstanding by about 6.1%. LO has been a great investment since it started trading in 2002.

Subscribe to The Buyback Letter here...

For More 2014 Top Stock Picks

Does This Plan Help Fannie Mae and Freddie Mac Investors?

Another day, and another proposed plan on what to do with Fannie Mae and Freddie Mac. The latest plan from a group of Congressmen aims to wind down the two entities and potentially turn them into private insurers, while keeping the governement's hand in housing finance via Ginnie Mae. Would this new plan help or hurt the investors holding the preferred and commons shares?

In this segment of The Motley Fool's everything-financial show, Where the Money Is, Matt Koppenheffer and David Hanson discuss the new plan and share what they think is the most important thing to watch going forward.

Is Fannie Mae the best bet for 2014?
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Anadarko Gains 2% as Mozambique Stake Sale Exceeds Expectations

Anadarko Petroleum announced yesterday that it had sold a natural-gas field off the coast of Mozambique. The Wall Street Journal has the details:

REUTERS

Anadarko Petroleum Corp. said Sunday that it has agreed to sell a stake in a natural-gas field off the coast of Mozambique to a subsidiary of India’s Oil & Natural Gas Corp. for $2.64 billion.

The Woodlands, Texas, energy-exploration company had said for months that it was looking to sell a portion of its interests in Mozambique’s deep-water Rovuma Basin, which is estimated to contain 35 to 65 trillion cubic feet of recoverable natural gas.

Sunday’s all-cash sale to ONGC Videsh Ltd., which an analyst said puts the highest value yet on the Mozambique natural-gas project, will reduce Anadarko’s working interest in the area to 26.5% from 36.5%.

Anadarko’s shares have gained 2.3% to $91.83 at 10:05 a.m.

Stifel‘s Amir Arif, Jack Pecoraro and Peyton Dorne explain why the sale is good news for Anadarko:

While the sale process was well advertised, we view the deal as a positive since (1) the sales price was better than the previous sale in the block which occurred last year and (2) the proceed is all cash versus previous expectations which also included potential carry options…The current sales price implies a value of $19/sh for APC's stake…An all cash deal brings forward the valuation and allows the company to better redeploy the proceeds to accelerate domestic growth options, which the company has laid out as a use of funds.

Arif, Pecoraro and Dorne raised their price target to $98 from $95.

Jefferies analysts Subash Chandra and Daniel Braziller, meanwhile, looks at what the sale could mean for Anadarko’s strategy:

The cash proceeds will reduce the debt ratio to 28% by year-end from 34% in q2. While the 2014 production growth rate should remain in the 5%-7% range, we expect a shift to onshore liquids basins such as Wattenberg and Permian. Drilling will accelerate the drilling locations while the enhanced liquidity could allow APC to comfortably spend above cash flows, should they choose to. We expect APC will favor short-cycle, high margin liquids projects.

Anadarko has gained 24% this year, well below Pioneer Natural Resources’ (PXD) 62% rise, Chesapeake Energy’s (CHK) 60% advance and Cabot Oil & Gas’s (COG) 57% increase.

Trimming Winners can be a Winning Move

Recently, John Heinzl of the Globe and Mail was asked a question about trimming a profitable stock in order to free up some opportunities to make some other investments and here's his response, and what it means for you.

I've seen a significant increase in some of my dividend stocks in the last six months—Magna is one example. I am tempted to peel off some profit and invest in other stocks in the portfolio that may have had a dip. Can you comment?

Let me tell you a quick story about a friend who had a stake in Research In Motion (long before it changed its name to BlackBerry). As the shares soared in price, the stock accounted for a sizable chunk of his portfolio—well into the double digits. I urged him to sell a portion of his holdings to lower his risk, but he was so convinced of (RIM's) bright future that he held on.

We know how that worked out.

That's an extreme example—and I don't mean to compare RIM to Magna—but it illustrates why it's important to keep your investments well diversified.

In my own portfolio, I try to manage risk by capping the weighting of each stock at about 5%. Fund managers often place similar limits on their holdings, which necessitates trimming winners when a stock exceeds the limit. The rationale is simple: If a stock's weighting is excessive and something goes wrong—see RIM—the portfolio will get thumped.

It's all about controlling your risk. That said, it's not always easy to do. One of my stocks—Enbridge—has posted hefty gains for several years and now accounts for nearly 6% of my portfolio. I haven't trimmed it, because I think Enbridge has plenty of growth ahead, and because the weighting isn't egregiously out of line, but I doubt I'll be buying more shares.

Because I am still adding money to my portfolio, I can rebalance by allocating cash to new stocks or to those that are underweighted. I have not studied Magna and am not in a position to comment on the company's prospects or the outlook for the stock. If you know the company thoroughly, are comfortable owning the shares at current valuation levels, and if the stock's weighting in your portfolio is reasonable, then you may want to do nothing. The fact that Magna's share price has roughly doubled in the past year is not, in and of itself, a reason to sell. The rise may be justified.

On the other hand, if Magna—or any other stock—accounts for such a large percentage of your portfolio that a setback in that company would have a material impact on your portfolio—and on your emotional well-being—then you may want to consider trimming back. You'll probably be upset if you sell part of your stake and the price keeps rising, but you'll save yourself some grief if the shares run out of gas.

The same principles of diversification apply to sector weightings. A portfolio of 20 stocks—each weighted at 5%—isn't diversified if all of the stocks are in the same industry. You need to spread your bets across multiple sectors—financials, pipelines, industrials, real estate investment trusts, energy and consumer staples, for example—to achieve the benefits of diversification. Just as with individual stocks, one way to accomplish that is to put a cap on your exposure to each sector.

Diversification is especially important for Canadian dividend investors, because it's easy to go overboard on a few sectors such as utilities, pipelines, and banks. Investing a portion of your funds in the US market—which has a much broader selection of global consumer, health care, and technology names—can help. Adding broadly diversified exchange-traded funds (ETFs) to supplement your individual stock holdings—or going with an all-ETF portfolio—is also an option.

Read more from the Globe and Mail here…

Feeling Sick: Tenet Healthcare Plunges 10% on Earnings, Guidance

Feeling stick to your stomach? You might be a shareholder of Tenet Healthcare (THC).

Shares of Tenet Healthcare have plunged 9.9% to $43.50 today at 2:30 p.m. after the hospital operator reported weaker than forecast earnings and lowered guidance.

The Associated Press has the details:

The company’s revenue increased 8.4 percent to $2.41 billion from $2.22 billion in the prior-year period as emergency department visits and surgeries increased.

The company’s net income was $28 million, or 27 cents per share, down from $40 million, or 37 cents per share, in the same period last year. Excluding one-time acquisition, restructuring and other charges the company would have earned $46 million, or 45 cents per share.

That was just below the average estimate of analysts polled by FactSet, who were looking for 46 cents per share on sales of $2.39 billion.

Deutsche Bank says Tenet is still a buy, despite the disappointment:

Q3 results a slight miss; lowered Q4 guidance sets early expectations w/[Vanguard Health Systems]. THC’s Q3 EBITDA of $288M fell ~3% short of consensus $296M as slightly higher expense growth and continued inpt volume softness led to a slight miss. While most Q3 operating metrics were within tempered investor expectations, we believe THC’s Q4 EBITDA guidance of $400M-$450M (vs. $475M-$500M for consensus estimates w/VHS) sets the stage for a lower launching point for THC+VHS. With Q4 EBITDA guidance pointing to ~$50M below our prior est at the midpoint, we are trimming Q4 and adjusting 2014 by ~$140M to $2.16B. Despite the est revision, we still consider the risk/reward to be compelling and reiterate Buy. Our PT moves to $60 from $65 on the lower estimates

Tenets plunge has helped drag other healthcare stocks lower. Community Health (CYH) has dropped 3.6% to $42.21, HCA Holdings (HCA) has fallen 2.1% to $46.72 and Universal Health Services (UHS) is off 1% at $80.59.

Advanced Micro Devices (AMD) Is Up 15.5% Ahead of Next Week’s Earnings Report

On Tuesday after the market closes, chip maker Advanced Micro Devices, Inc (NYSE: AMD) is scheduled to report earnings and shares are already up 15.5% since the start of the year. However, it should be mentioned that shares also had good run ups ahead of previous earnings reports – only to sink when those earnings reports did not live up to expectations. Incidentally, we have had AMD in our SmallCap Network Elite Opportunity (SCN EO) portfolio since last summer and we are also up 15.50% since that time. With that and next week's earnings report in mind, here is the latest news about AMD:

Kaveri is Launched as AMD and Intel Move in Different Directions. On Tuesday, Advanced Micro Devices officially began shipping its Kaveri chip architecture (meant for games and other high-performance applications) with the company pricing both the new 3.7GHz A10-7850K and the 3.4GHz A10-7700K for less than $200—$173 and $153, respectively; plus a third, lower-power variant, the 3.1GHz and 3.3GHz A8-7600, will ship later in the first quarter for about $119. PCWorld noted that these prices are roughly equal to the Core i5 chips that Intel Corporation (NASDAQ: INTC) released in the second quarter of 2013. In addition, VentureBeat has pointed out that the new chips show that AMD is moving in a very different direction from Intel, who last week's Consumer Electronics Show in Las Vegas put a lot of emphasis on "perceptual computing," or using gestures and other new kinds of interfaces to control computers. Instead of interfaces, AMD is focusing on powerful graphics capabilities. Bullish Options Trading. On Tuesday, AVAFIN reported trading of Advanced Micro Devices options resulted in a new 90-day call volume record. Specifically, a total of 11,011 put and 73,089 call contracts was traded for a 0.15 put/call ratio on shares of AMD while Wednesday saw triple the normal share trading volume as investors and traders alike no doubt jockey for position ahead of earnings. Cramer Would Rather Own Intel. For what his opinion is worth, Jim Cramer, the host of CNBC's Mad Money, stated in a recent Lightening Round: "They has a history of missing their quarters. I'd rather sell this stock and buy Intel." For the record though, it was not long ago that Cramer was touting the stock. Another Trial Lawyer Circles. Early last week, Holzer & Holzer, LLC, a so-called "Shareholder rights" law firm, issued a press release to say that they are "investigating" whether Advanced Micro Devices and/or certain of its officers complied with the federal securities laws when making statements to investors between October 27, 2011 and October 18, 2012. And now this week, Robbins Geller Rudman & Dowd LLP has announced that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of common stock during that period. Obviously if AMD has a good earnings report, more trial lawyer vultures might look elsewhere for easier pickings but a poor earnings report could have more circling. Share Performance. On Wednesday, Advanced Micro Devices rose 3.65% to $4.47 plus shares are up 15.5% since the start of the year, up 67.4% over the past year and up 66.2% over the past five years:

Hot Cheap Companies To Watch In Right Now

Finally, here is the latest technical chart for AMD where the drop offs after the last two earnings reports is rather noticeable:

With the recent news in mind, will Advanced Micro Devices strike out again for the third earnings report in a row? Stay tuned.

SmallCap Network Elite Opportunity (SCN EO) has an open position in AMD. To find out what other open positions SCN EO currently has, and to learn why so many traders and investors are relying on this premium subscription service, click here to find out more.

Bear of the Day: HomeStreet (HMST) - Bear of the Day

HomeStreet (HMST) missed the mark on the most recent earnings release and has seen estimates drop substantially over the last six months. It is a Zacks Rank #5 (Strong Sell). It is the Bear of the Day.Mortgage Rates Move UpOver the last few weeks, interest rates have moved higher and that has caused rates for mortgages to increase as well. Along with a light housing inventory, this will keep some buyers on the sidelines which could hurt the real estate lending business for HMST.Company DescriptionHomeStreet (HMST) is a diversified financial services company headquartered in Seattle, WA serving consumers and businesses in the Pacific Northwest, California and Hawaii. The company operates four primary lines of business: Community Banking, Single Family Lending, Commercial Real Estate Lending and Residential Construction Lending. Its principal subsidiaries are HomeStreet Bank and HomeStreet Capital Corporation.Earnings HistoryThe most recent quarter was a big miss, with the company reporting earnings of $0.74 when the Zacks Consensus Estimate was calling for $0.84. The ten cent negative earnings surprise translates to a 11.9% miss. The topline also came in $5 million light, so another miss of 6% on top.Besides that quarter, things have been mostly good for HMST. Prior to the earnings miss the company posted four straight positive earnings surprises.Small BankHomeStreet Bank is a WA state chartered savings bank with a network of 23 retail bank branches, 28 stand-alone lending centers and three stand-alone commercial lending centers in Washington, Oregon, California and Hawaii. Its size may keep some investors out of it beyond its limited geographical footprint.Earnings Estimates PlungeEstimates for HMST have done nothing but fall all year. The 2013 Zacks Consensus Estimate was $5.40 at the start of the year and that quickly dropped to $5.07 in the following month. By May the number was down to $3.57 and it is currently at $2.93. That is a significant decrease in just a littl! e over 6 months.The 2014 Zacks Consensus Estimate has also been moving lower. It stood at $5.43 in February, but had fallen to $4.12 in May and is currently $3.73. The question becomes when will estimates stop falling?ValuationThe valuation picture HMST looks really, really good. That is if can get past the whole negative earnings growth expectations in 2013. The PE multiples of 4.6x trailing and 7.7x forward would make value investors get interested, as would a 1.2x book multiple. But investors need to look past low multiples and understand why they are low before making an investment in a stock like HMST.The Chart The year to date chart is one that will turn the stomachs of most investors. The limited footprint of the company can expose it to specific weaknesses that may be seen just in the Pacific Northwest, and that is a risk that many may not want to see. In the more immediate term, the increased rates may help net interest margin, but those rates are likely to change soon. Brian Bolan is a Stock Strategist for Zacks.com. He is the Editor in charge of the Zacks Home Run Investor service, a Buy and Hold service where he recommends the stocks in the portfolio.Brian is also the editor of Breakout Growth Trader a trading service that focuses on small cap stocks and also carries a risk limiting strategy. Subscribers get daily emails along with buy, and sell alerts.Follow Brian Bolan on twitter at @BBolan1Like Brian Bolan on Facebook

Stocks to Watch: GameStop, J.P. Morgan, Stratasys

Among the companies with shares expected to actively trade in Tuesday’s session are GameStop Corp.(GME), J.P. Morgan Chase(JPM) & Co. and Stratasys Ltd.(SSYS)

Acco Brands Corp.(ACCO) expects its 2013 results to come in ahead of analysts’ estimates as the office-products supplier projected fourth-quarter revenue that beat expectations. Shares of the company, whose brands include Day-Timer, At-a Glance and Mead, rose 5.1% to $6.59 in light premarket trading.

Pharmaceutical company Actavis(ACT) PLC said it expects its fourth-quarter earnings to be modestly above the high end of its previous outlook as the acquisition of Warner Chilcott PLC significantly expanded its U.S. business. The company also unveiled plans to split its U.S. specialty brands business into four units as a result of the acquisition. Shares edged up 1.2% to $183.50 in light premarket trading.

Aviat Networks Inc.(AVNW) cut its fiscal second-quarter revenue forecast, citing lower-than-expected customer orders in Africa. The microwave networking company said it is working on a plan to lower expenses, with cost savings expected to come in part from consolidating Aviat’s supply chain and locations. Shares dropped 1.4% to $2.20 premarket.

Envision Healthcare Holdings Inc.(EVHC) lowered its 2013 earnings outlook but also projected an adjusted profit for the recently started new year that topped expectations. The company said results improved in the latter part of the quarter, mostly the result of higher flu-related activity and seasonal volume. Shares rose 6.3% to $34.60 premarket.

GameStop lowered its already soft earnings estimate for the critical holiday quarter as the videogame retailer continues to struggle with weaker sales and consumer interest in cheaper mobile games. Shares slumped 11% to $40.50 premarket.

J.P. Morgan Chase’s fourth-quarter earnings dropped 7.3% as the bank grappled with weak results from its investment-banking unit, but results beat expectations. Shares edged up 22 cents to $57.92 premarket.

Stratasys projected adjusted per-share earnings for 2014 that fell below analysts’ expectations but gave a strong top-line view. The company, which makes 3-D printers, is thought to be well-placed to benefit from a jump in commercial and consumer demand. Shares dropped 5.4% to $123.01 premarket.

Top 10 Blue Chip Companies To Invest In 2014

Wells Fargo(WFC) & Co. on Tuesday posted a better-than-expected 10% rise in net income as a slowdown in the bank’s lucrative mortgage business was offset by strong expense controls and continued improvement in credit quality. Shares dropped 31 cents premarket to $45.25.

David Herro and Bill Nygren Comment on Daiwa Securities Group

The largest contributor for the year was Daiwa Securities Group (TSE:8601), Japan's second largest broker, which returned 88%.  During the quarter Daiwa released its fiscal first-half results, showing its highest pre-tax profits since the company started reporting such figures in 1995.  Revenues rose across the board in retail, wholesale and asset management and are on track to meet the company's full-year estimates.  Of special note, the wholesale banking division became profitable for the first time since 2009.  We expected wholesale banking revenues to be strong due to equity trading and commission activity, but were surprised by the advance in fixed income revenues which surpassed peers. 

From the Oakmark Global Select Fund fourth quarter 2013 commentary.

Top 10 High Tech Companies For 2014

 

Also check out: David Herro Undervalued Stocks David Herro Top Growth Companies David Herro High Yield stocks, and Stocks that David Herro keeps buying Bill Nygren Undervalued Stocks Bill Nygren Top Growth Companies Bill Nygren High Yield stocks, and Stocks that Bill Nygren keeps buying

Currently 0.00/512345 Rating: 0.0/5 (0 votes)

Subscribe via Email Subscribe RSS Comments Please leave your comment:
More GuruFocus Links

Monday, January 13, 2014

Best Performing Stocks To Watch For 2014

Northrop Grumman (NYSE: NOC  ) came away with more contract wins than anyone else Tuesday on the Pentagon's supplier list, scoring two contracts worth nearly $53 million, combined.

The larger of the two contracts, worth $40.5 million, tasks Northrop's Information Systems division with performing research and development, enhancement, integration, deployment and sustainment work related to the Secure Access Baseline for the EnterpRise (SABER) initiative for the Air Force Intelligence, Surveillance and Reconnaissance Agency, the Department of Homeland Security, the Defense Intelligence Agency, and other intelligence community and Department of Defense customers. Northrop has an April 9, 2018, completion date for this work.

The company also won a $12.4 million contract�to extend by four months its work on the Counter Rocket Artillery Mortar (C-RAM�) Command and Control System. C-RAM is a system that integrates the military's existing field artillery and air defense sensors with a commercial off-the-shelf warning system and a Navy-designed interceptor rocket to shoot down incoming indirect fire rounds -- mortars, artillery shells, and the like.

Best Performing Stocks To Watch For 2014: Frequency Electronics Inc.(FEIM)

Frequency Electronics, Inc., together with its subsidiaries, engages in the design, development, and manufacture of high-technology frequency, timing, and synchronization products for satellite and terrestrial voice, video, and data telecommunications. It operates in three segments: FEI-NY, Gillam-FEI, and FEI-Zyfer. The FEI-NY segment offers precision time and frequency control products used in communication satellites, terrestrial cellular telephone or other ground-based telecommunication stations, and other components and systems for the United States military. The Gillam-FEI segment offers wireline synchronization, network management systems, and specialized test equipment in non-U.S. markets. The FEI-Zyfer segment involves in the design, development, and manufacture of products for precision time and frequency generation and synchronization, primarily incorporating global positioning system technologies into systems and subsystems for secure communications and other l ocator applications. Its products are used for commercial communication satellite payloads, U.S. government and department of defense, space and non-space, and network infrastructure applications, as well as other industrial applications, including remote management of power grids and gas line networks, and deep earth drilling for oil and gas in harsh environments. The company offers its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is based in Mitchel Field, New York.

Best Performing Stocks To Watch For 2014: Federal National Mortgage Association Fannie Mae (FNMAT)

Federal National Mortgage Association Fannie Mae is a government-sponsored enterprise (GSE) chartered by the United States Congress to support liquidity and stability in the secondary mortgage market, where mortgage-related assets are purchased and sold. The Company�� activities include providing market liquidity by securitizing mortgage loans originated by lenders in the primary mortgage market into Fannie Mae mortgage-backed securities (Fannie Mae MBS), and purchasing mortgage loans and mortgage-related securities in the secondary market for its mortgage portfolio. Fannie Mae operates in three business segments: Single-Family business, Multifamily Business (formerly Housing and Community Development (HCD)) and Capital Markets group. Its Single-Family Credit Guaranty and Multifamily businesses work with its lender customers to purchase and securitize mortgage loans customers deliver to the Company into Fannie Mae MBS.

The Company obtains funds to support its business activities by issuing a variety of debt securities in the domestic and international capital markets. Fannie Mae acquires funds to purchase mortgage-related assets for its mortgage portfolio by issuing a variety of debt securities in the domestic and international capital markets. It also makes other investments. Fannie Mae conducts its business in the United States residential mortgage market and the global securities market. It conducts business in the United States residential mortgage market and the global securities market. During the year ended December 31, 2011, the Company��

Single-Family Business

Single-Family business includes mortgage securitizations, mortgage acquisitions, credit risk management and credit loss management. Single-Family business works with the Company�� lender customers to provide funds to the mortgage market by securitizing single-family mortgage loans into Fannie Mae MBS. Its Single-Family business also works with its Capital Markets group to facilitate the purc! hase of single-family mortgage loans for the Company�� mortgage portfolio. Fannie Mae�� Single-Family business prices and manages the credit risk on its single-family guaranty book of business, which consists of single-family mortgage loans underlying Fannie Mae MBS and single-family loans held in its mortgage portfolio. Single-Family business and Capital Markets group securitize and purchase primarily single-family fixed-rate or adjustable-rate, first lien mortgage loans, or mortgage-related securities backed by these types of loans.

The Company securitizes or purchases loans insured by Federal Housing Administration (FHA), loans guaranteed by the Department of Veterans Affairs (VA), and loans guaranteed by the Rural Development Housing and Community Facilities Program of the Department of Agriculture, manufactured housing loans, reverse mortgage loans, multifamily mortgage loans, subordinate lien mortgage loans and other mortgage-related securities. Its Single-Family business securitizes single-family mortgage loans and issues single-class Fannie Mae MBS. Fannie Mae�� Single-Family business securitizes loans solely in lender swap transactions, in which lenders deliver pools of mortgage loans to the Company, which are placed immediately in a trust, in exchange for Fannie Mae MBS backed by these loans. Generally, the servicing of the mortgage loans held in its mortgage portfolio or that backs its Fannie Mae MBS is performed by mortgage servicers on the Company�� behalf. Lenders who sell single-family mortgage loans to Fannie Mae service these loans for the Company. For loans it owns or guarantees, the lender or servicer must obtain its approval before selling servicing rights to another servicer.

Fannie Mae�� mortgage servicers collect and deliver principal and interest payments, administer escrow accounts, monitor and report delinquencies, perform default prevention activities, evaluate transfers of ownership interests, respond to requests for partial releases of sec! urity, an! d handle proceeds from casualty and condemnation losses. Its mortgage servicers are the primary point of contact for borrowers and perform implementation of its homeownership assistance initiatives, negotiation of workouts of troubled loans, and loss mitigation activities. Mortgage servicers also inspect and preserve properties and process foreclosures and bankruptcies.

Multifamily Mortgage Business

Multifamily business works with the Company�� lender customers to provide funds to the mortgage market by securitizing multifamily mortgage loans into Fannie Mae MBS. Through its Multifamily business, Fannie Mae provides liquidity and support to the United States multifamily housing market principally by purchasing or securitizing loans that finance multifamily rental housing properties. It also provides some limited debt financing for other acquisition, development, construction and rehabilitation activity related to projects that complement this business. Fannie Mae�� Multifamily business also works with its Capital Markets group to facilitate the purchase and securitization of multifamily mortgage loans and securities for Fannie Mae�� portfolio, as well as to facilitate portfolio securitization and resecuritization activities.

The Company�� multifamily guaranty book of business consists of multifamily mortgage loans underlying Fannie Mae MBS and multifamily loans and securities held in Fannie Mae�� mortgage portfolio. Revenues for Fannie Mae�� Multifamily business are derived from a variety of sources, including guaranty fees received as compensation for assuming the credit risk on the mortgage loans underlying multifamily Fannie Mae MBS and on the multifamily mortgage loans held in its portfolio and on other mortgage-related securities; transaction fees associated with the multifamily business, and other bond credit enhancement related fees. As with the servicing of single-family mortgages, multifamily mortgage servicing is performed by the lenders who s! ell the m! ortgages to the Company. Fannie Mae�� Multifamily business is organized and operated as an integrated commercial real estate finance business.

Capital Markets

Capital Markets group's primary business activities include mortgage and other investments, mortgage securitizations, structured mortgage securitizations and other customer services, and interest rate risk management. Capital Markets group manages the Company�� investment activity in mortgage-related assets and other interest-earning, non-mortgage investments. It funds its investments primarily through proceeds the Company receives from the issuance of debt securities in the domestic and international capital markets. Its business activity is focused on making short-term use of its balance sheet rather than long-term investments. Activities Fannie Mae is undertaking to provide liquidity to the mortgage market include whole loan conduit, early funding, real estate mortgage investment conduit (REMICs) and other structured securitizations and dollar roll transactions. Whole loan conduit activities include its purchase of both single-family and multifamily loans principally for the purpose of securitizing them. During the year ended December 31, 2010, it was engaged in dollar roll activity. A dollar roll transaction is a commitment to purchase a mortgage-related security with a concurrent agreement to re-sell a similar security at a later date or vice versa.

Fannie Mae�� Capital Markets group is engaged in issuing both single-class and multi-class Fannie Mae MBS through both portfolio securitizations and structured securitizations involving third party assets. Its Capital Markets group creates single-class and multi-class Fannie Mae MBS from mortgage-related assets held in its mortgage portfolio. Fannie Mae�� Capital Markets group may sell these Fannie Mae MBS into the secondary market or may retain the Fannie Mae MBS in its investment portfolio. The Company�� Capital Markets group creates single-class ! and multi! -class structured Fannie Mae MBS, for its lender customers or securities dealer customers, in exchange for a transaction fee. The Company�� Capital Markets group provides its lender customers and their affiliates with services that include offering to purchase a range of mortgage assets, including non-standard mortgage loan products; segregating customer portfolios to obtain optimal pricing for their mortgage loans, and assisting customers with hedging their mortgage business.

Although the Company�� Capital Markets group�� business activities are focused on short-term financing and investing, revenue from its Capital Markets group is derived primarily from the difference, or spread, between the interests it earns on its mortgage and non-mortgage investments and the interest it incurs on the debt the Company issues to fund these assets. Its Capital Markets revenues are primarily derived from the Company�� mortgage asset portfolio. Capital Markets group funds its investments primarily through the issuance of a variety of debt securities in a range of maturities in the domestic and international capital markets. Investors in the Company�� debt securities include commercial bank portfolios and trust departments, investment fund managers, insurance companies, pension funds, state and local governments, and central banks.

The Company competes with Freddie Mac, FHA and Ginnie Mae.

10 Best Blue Chip Stocks To Invest In Right Now: Oracle Corporation(ORCL)

Oracle Corporation, an enterprise software company, develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide. It licenses of database and middleware software, including database management software, application server software, service-oriented architecture and business process management software, data integration software, business intelligence software, identity and access management software, content management software, portals and user interaction software, development tools, and Java; and applications software comprising enterprise resource planning, customer relationship management, enterprise performance management, supply chain management, business intelligence applications, enterprise portfolio project management, Web commerce, and industry-specific applications software. The company also offers customers with rights to unspecified software product upgrades and maintenance releases; Internet access to technical content; and Internet and telephone access to technical support personnel. In addition, its hardware systems products consist of computer server and hardware-related software, including the Oracle Solaris Operating System; and storage products, such as tape, disk and networking solutions for open systems and mainframe server environments. Its hardware systems support solutions include software updates for the software components. Further, the company offers consulting solutions in business and IT strategy alignment, enterprise architecture planning and design, initial product implementation and integration, and ongoing product enhancements and upgrades; cloud services, including Oracle Cloud Services and Advanced Customer Services; and education solutions comprising instructor-led, media-based, and Internet-based training in the use of its software and hardware products. The company was founded in 1977 and is headquartered in Redwood Ci ty, California.

Advisors' Opinion:

• [By Rex Crum]

  Gains also came from Hewlett-Packard Co. (HPQ) , up 2% to close at $22.80, Amazon.com Inc. (AMZN) �which rose almost 2% to $310.89 and Oracle Corp. (ORCL) , which rose almost 1%, to $33.26.

• [By Alex Dumortier, CFA]

  An interesting fundamental story
  Yesterday afternoon, enterprise software provider Oracle (NYSE: ORCL  ) announced results for its fiscal fourth quarter ended May 31. Earnings per share were up 5% (excluding items), and the company announced a doubling in its dividend to $0.12 per share and an additional $12 billion for its existing share-repurchase program. The market's reaction? Unimpressed, to say the least: Shares are down 8.6%. What's the problem?

• [By Keith Speights]

  Quality Software Services, which is owned by UnitedHealth Group (NYSE: UNH  ) , was the contractor to which Campbell alluded. However, a key link in the component that Quality Software Services developed came from Oracle (NYSE: ORCL  ) . Early finger-pointing suggested that the Oracle Identity Manager was a cause of the major technical problems. That prompted Oracle to strongly deny that its software wasn't working.

• [By WALLSTCHEATSHEET.COM]

  Oracle has steadily increased revenue and earnings on an annual basis. The stock is trading at 16 times earnings, whereas the industry average is 26 times earnings. The stock is more resilient than most throughout the broader market, margins are high, there is a 0.70 yield, operating cash flow is strong at $13.72 billion, 80 percent of employees approve of CEO Larry Ellison, and analysts love the stock: 27 Buy, 15 Hold, 1 Sell.

Best Performing Stocks To Watch For 2014: Silvore Fox Minerals Corp (SFX.V)

Silvore Fox Minerals Corp., a development stage company, engages in the acquisition and exploration of mineral resource properties in Canada. The company explores for base and precious metals, such as copper, gold, silver, molybdenum, zinc, and cobalt. It primarily holds interest in the Coxheath property and Oceanview claims located in the Nova Scotia. The company was formerly known as Silvor Foxx Capital Corp. and changed its name to Silvore Fox Minerals Corp. in October 2008. Silvore Fox Minerals Corp is headquartered in Toronto, Canada.

Best Performing Stocks To Watch For 2014: Harris Corporation (HRS)

Harris Corporation, together with its subsidiaries, operates as a communications and information technology company that serves government and commercial markets worldwide. It operates in three segments: RF Communications, Government Communications Systems, and Broadcast Communications. The RF Communications segment designs, develops, and manufactures secure radio communications products and systems for manpack, handheld, soldier-worn, vehicular, strategic fixed-site, and shipboard applications that operate in various radio frequency bands. It also offers products and solutions ranging from wireless network infrastructure solutions to portable and mobile single-band and multiband radios, and public safety-grade broadband video and data solutions for the public safety, federal, utility, commercial, and transportation markets. The Government Communications Systems segment develops, supplies, and integrates communications and information processing products, systems, and netw orks for aerospace, terrestrial, and maritime applications supporting department of defense missions. This segment also provides mission-critical communications and information processing systems for the U.S. civilian Federal market, as well as offers IT transformation, managed, and information assurance solutions. The Broadcast Communications segment provides workflow, infrastructure, and networking solutions that enable media companies to streamline workflow from production through transmission; media solutions to manage digital media workflow through software solutions for advertising, media management, digital signage, broadband, digital asset management, and play-out automation; and transmission systems for delivery of media over wireless broadcast terrestrial networks. The company also offers healthcare IT solutions, IT compliance solutions, and mission-critical managed satellite communications services. Harris Corporation was founded in 1895 and is based in Melbourne, Florida.

Advisors' Opinion:

• [By Rich Smith]

  The Department of Defense ended the week with a bang (if you'll pardon the expression) Friday. Across a field of 26 contracts awarded, the Pentagon laid out plans to spend nearly $2.5 billion in total. A few of the publicly traded companies winning awards included:

• [By Rich Smith]

  Melbourne, Fla.-based Harris (NYSE: HRS  ) announced on Monday the signing of a $61 million contract to sell radio sets to the Poland Ministry of National Defense.

• [By Rich Smith]

  The U.S. Department of Defense awarded nine new contracts on Monday worth some $1.121 billion in aggregate. The largest of these awards, however, swallowed more than 85% of the funds on offer. Split among five publicly traded companies, and one privately owned, this monster IT contract envisions paying out $960 million over the course of time to contractors:

  Lockheed Martin (NYSE: LMT  ) Raytheon (NYSE: RTN  ) Harris� (NYSE: HRS  ) L-3 Communications (NYSE: LLL  ) TYBRIN Corp., a subsidiary of Jacobs Engineering Group (NYSE: JEC  ) SRA International

  The multiple award, indefinite- delivery/indefinite-quantity (IDIQ) contract was awarded under the U.S. Air Force's Network-Centric Solutions-2 (NETCENTS-2) Application Services program, which the Air Force describes as being one of its primary vehicles for purchasing "sustainment, migration, integration, training, help desk support, testing and operational support" services. Over the course of the contract, the six named contactors will be the only ones entitled to bid (against each other) for task orders awarded under the umbrella IDIQ contract.

Best Performing Stocks To Watch For 2014: Direxion Daily Small Cap Bear 3X Shares (TZA)

NA

Best Performing Stocks To Watch For 2014: Parlux Fragrances Inc.(PARL)

Parlux Fragrances, Inc. engages in the creation, design, manufacture, distribution, and sale of fragrances and beauty related products. The company offers body lotions, creams, shower gels, deodorants, soaps, and dusting powders. It also manufactures and distributes watches, handbags, purses, small leather goods, cosmetics, and sunglasses. It offers products under Paris Hilton, Jessica Simpson, Rihanna, Queen Latifah, Marc Ecko, Josie Natori, Nicole Miller, Kanye West, and Vince Camuto names on a licensee basis. The company markets its products primarily through specialty stores, national department stores, and perfumeries primarily in the United States, Canada, Europe, the Middle East, Asia, Australia, Latin America, the Caribbean, and Russia. Parlux Fragrances, Inc. was founded in 1984 and is headquartered in Ft. Lauderdale, Florida.

Best Performing Stocks To Watch For 2014: Petrominerales Ltd (PMG.TO)

Petrominerales Ltd., an oil and gas company, engages in the exploration, development, and production of crude oil in Colombia and Peru. It holds 100% interest in various exploration blocks located in Deep Llanos, Central Llanos, Llanos Heavy Oil, and Middle Magdalena basins in Columbia. The company also has incremental production contracts in Putomayo and Upper Magdelena Basins of Colombia, as well as holds interests in exploration blocks located in Ucayali and Titicaca basins in Peru. Petrominerales Ltd. was incorporated in 1996 and is headquartered in Calgary, Canada.

Sunday, January 12, 2014

Why Active Management Isn't as Dumb as You Think

Millions of investors have learned that if you can't beat the market indexes, you're better off joining them. The popularity of passive investment strategies has exploded higher with the rise of exchange-traded funds, most of which use formulaic criteria to choose their stock holdings rather than qualitative analysis.

Yet as valuable as low-cost index funds can be, some investors are too quick to dismiss all actively managed mutual funds as being a waste of money. In particular, if you focus too much on short-term results to justify abandoning active investing strategies, you could end up making the same mistakes as short-term traders who move in and out of stocks too quickly to capture the lion's share of their long-term gains.

Active managers fall short -- again
S&P Dow Jones Indices recently did a study looking at the results of actively managed stock mutual funds. In particular, it looked at more than 700 mutual funds that finished in the top 25% in terms of one-year performance as of March 2011. After two years, fewer than 5% of those 700 funds managed to stay in the top 25% during each of the ensuing two 12-month periods.

Moreover, when S&P expanded the test to include managers in the top half, it produced similar results: Just 18% of funds in the top half by performance in 2011 managed to repeat those top-half returns in both 2012 and 2013. Looking back a longer period, only 2% to 5% of funds in various sub-asset classes managed to stay in the top half of performers for five consecutive years. Those figures are less even than a random distribution would predict, strongly suggesting that good performance in one period is more likely to be followed by worse performance in the next.

The wrong reason to go passive
Yet judging mutual funds based on streaks of short-term performance is exactly the wrong way to evaluate a long-term fund's holdings. If you're committed to an investment strategy for the long haul, then occasional one-year underperformance shouldn't amount to anything.

Perhaps the best example of this phenomenon lately comes from Bruce Berkowitz, manager of the Fairholme Fund (NASDAQMUTFUND: FAIRX  ) . In 2011, Berkowitz was coming off three straight years of having been among the top 10% of fund managers in the large-cap value category, earning himself an award as Morningstar's Fund Manager of the Decade for stocks. Yet in 2011, he made big bets on financial stocks that turned out to be far too early. Investments in Bank of America (NYSE: BAC  ) , mortgage- and bond-insurance company MBIA (NYSE: MBI  ) , and insurer juggernaut AIG (NYSE: AIG  ) didn't pan out as quickly as he'd hoped, and investors suffered 32% losses for the year while the S&P posted modest 2% gains. Investors fled the fund in droves, sending assets under management plunging.

Yet by 2012, Bank of America had recovered, doubling in value with help from capital financing courtesy of Warren Buffett and rising prospects in the banking sector. Meanwhile, AIG continued its strategy of divesting non-core assets and getting out from under government control. Fairholme's return more than doubled the S&P in 2012. More recently, MBIA's settlement with Bank of America sent shares soaring, allowing Berkowitz to sell out at a large profit.

Admittedly, 2011's massive underperformance did a lot to undermine Fairholme's longer-term track record. The fund's five-year performance now just barely beats out the average for the category. Yet with the rule applying even in an extreme situation, you can more easily see how a fund that just pokes down into the bottom half in performance one year could still put together an impressive track record over time.

Be careful, but don't panic
One thing is true: Higher-cost mutual funds have a greater burden to overcome in producing after-cost returns for their shareholders. That's why in the long run, many index funds beat out actively managed funds. But if you decide passive investing is for you, make sure you do it for the right reasons -- not just because a fund you own didn't manage to top the performance list every single year you owned it.

Whether you choose an actively managed fund or an index ETF, it's more important than ever to start investing right now. That's why we've brought you a brand-new special report, "Your Essential Guide to Start Investing Today." Inside, the Motley Fool's personal finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.

Tune in every Monday and Wednesday for Dan's columns on retirement, investing, and personal finance. You can follow him on Twitter @DanCaplinger.

Saturday, January 11, 2014

Fighting Investors' Greatest Enemy: Overconfidence

"I always thought the brain was the most wonderful organ in my body; and then one day it occurred to me, 'Wait a minute, who's telling me that?'" -- Emo Philips

Financial analytics firm Dalbar calculates the actual returns earned by investors compared with the S&P 500. Its latest reading is cringeworthy: The average stock investor earned an average annual return of 3.83% from 1990 to 2010, vs. 9.14% for the S&P 500.

That gap is more than can be explained by management fees or the underperformance delivered by the average mutual fund's poor skills. Something else is eroding investment returns.

And that something else is you.

You buy when you shouldn't. You sell when you shouldn't. You think you're capable of doing things you probably aren't. You are, in other words, overconfident in your skills as an investor.

You've probably heard of the Lake Woebegon effect with drivers -- the vast majority of drivers claim they have above-average driving skills. This even holds true for drivers surveyed in the hospital after being injured in car accidents that they caused.

The same overconfidence affects investors.

Markus Glaser of Munich School of Management and Martin Weber of the University of Manheim once asked a group of investors a simple question: How have you done at investing?

Just like drivers, more than half assumed they outperformed the average investor.

But the study found something even more disturbing. The researchers asked investors to estimate their annual returns, and then compared those estimates to the investors' actual returns by checking their brokerage statements. Investors were quite literally clueless about how their investments performed, overestimating their returns by more than 11 percentage points per year. The average investor painfully lags an index fund and thinks he's Warren Buffett, basically.

Part of this is understandable. Investing is hard. We spend untold hours talking with advisors, researching new ideas, watching CNBC, and listening to pundits. Most investors have uncomfortably little to show for their effort, so they resort to convincing themselves otherwise. Jason Zweig writes in his book Your Money and Your Brain:

By fibbing ourselves, we can give a needed boost to our self-esteem. After all, none of us is perfect, and daily life brings us into constant collision with our own incompetence and inadequacies. If we did not ignore most of that negative feedback -- and counteract it by creating what psychologists call "positive illusions" -- our self-esteem would go through the floor.

We're also overconfident because hindsight bias fools us into thinking big events like the financial crisis were easy to predict, and thus will be easy to predict in the future. In his book Thinking, Fast and Slow, Daniel Kahneman writes:

Our tendency to construct and believe coherent narratives of the past makes it difficult for us to accept the limits of our forecasting ability. The illusion that we understand the past fosters overconfidence in our ability to predict the future.

When you are overconfident, all sorts of dangerous behaviors arise that throw your investing results off track.

For one, your predictions will likely become less accurate. Philip Tetlock, a psychologist at U.C. Berkeley, studied expert predictions and found that those who were most confident in their forecasts actually had the worst track records. Confident forecasters tend to have broad, unwavering views about how the world works -- think of investors who were assured hyperinflation was right around the corner -- while those who make good predictions know that the world is more nuanced and are constantly updating their views.

As confidence rises, your perception of risk also diminishes. The best example of this is the hedge fund Long Term Capital Management, a team of investors stacked with PhDs and Nobel laureates who became so confident in their ability to predict markets that they borrowed $250 for every $1 of their investors' money ... and went broke soon after. Financial advisor Carl Richards says, "risk is what's left over when you think you've thought of everything else." When you're overconfident, you're not thinking about much to begin with.

Overcoming overconfidence is easier said than done. But two things might help.

One, become fiercely objective when measuring your success as an investor. Don't just assume you've done well because the Dow is at an all-time high and your portfolio has gone up, too. Measure exactly how you've done. Most investors will be surprised to see their returns versus a benchmark -- some pleasantly, others humbled off the ledge of overconfidence.

Two, talk to someone about your investments who is in a different emotional state than you are. The odds of making a good decision while in the heat of panic, euphoria, or any other emotion tied to overconfidence are low. I run most of my financial decisions by fellow Fool Matt Koppenheffer. He thinks differently than I do and is more level-headed in areas I tend to get emotional about. It's a tremendous benefit, and I encourage everyone to find a "finance buddy" with whom to do the same.

Every investor needs confidence. But Mae West wasn't right: Too much of a good thing isn't always wonderful.

Check back every Tuesday and Friday for Morgan Housel's columns on finance and economics. 

Friday, January 10, 2014

Top Low Price Companies To Watch In Right Now

According to a recent Deloitte survey focused on U.S. consumers and their pantries, name brand loyalty has declined for the third consecutive year. An astounding nine out of 10 consumers are still trading down to private-label brands, despite improvements in the economy. This survey suggests that consumers have not only grown more mindful of their spending habits, but also learned along the way that in-store alternative brands are often comparable. Motley Fool contributor Steve Heller believes that the trend of continued frugality is likely to persist, putting Whole Foods (NASDAQ: WFM  ) and Costco (NASDAQ: COST  ) in great position to benefit to boost their margins. Check out the video below to hear his thoughts on the issue.

Costco's low prices haven't just benefited customers -- shareholders have walloped the market, returning 11,000% over the past two decades. However, with prices near all-time highs, is the ride over for Costco investors? To answer that and more, The Motley Fool's compiled a premium research report with in-depth analysis on Costco.�Simply click here now to gain instant access to this valuable investor's resource.

Top Low Price Companies To Watch In Right Now: MicroStrategy Incorporated(MSTR)

MicroStrategy Incorporated provides enterprise software platforms for business intelligence (BI), and mobile and social intelligence applications worldwide. The company offers MicroStrategy 9, an integrated BI platform that enables businesses to make business decisions. The MicroStrategy 9 platform?s product components comprise Intelligence Server, a foundation for the BI platform; Report Services, a reporting engine delivering production and operational reports, managed metrics reports, and interactive dashboards; OLAP Services that allows Web and desktop users to manipulate Intelligent Cubes databases; Web, a Web interface providing query, reporting, and analysis; Distribution Services that offers automated report and dashboard distribution; Office, which enables Microsoft Office users to create, run, edit, and format MicroStrategy report; and Desktop that provide users access to data through analytical applications. The MicroStrategy 9 platform?s product components al so include Architect, whose data sources are modeled through an intuitive graphical user interface; SDK to integrate MicroStrategy 9 features and functionality into any application on multiple platforms; Integrity Manager to compare and verify reports? consistency; Command Manager that automates MicroStrategy administrative tasks; Enterprise Manager to provide prebuilt reports and dashboards; Object Manager that allows administrators to manage disparate and distributed environments; MultiSource Option allowing users to report, analyze, and monitor data; Transaction Services that provides write-back capabilities; and Clustering Option, a plug-and-play add-on to Intelligence Server. The company also offers technical support, consulting, education, and cloud-based solutions. It serves retail, communications, financial services, insurance, healthcare, manufacturing, technology, consumer goods, and public services industries. The company was founded in 1989 and is headquartered in Tysons Corner, Virginia.

Advisors' Opinion:

• [By Evan Niu, CFA]

  What: Shares of MicroStrategy (NASDAQ: MSTR  ) have plunged today by as much as 13% after the company reported first-quarter earnings.

  So what: Revenue in the first quarter added up to $130.2 million, a 6% decline from a year ago. That translated into a loss from continuing operations of $5.2 million, or $0.46 per share. Those figures looked poor relative to consensus estimates, which were calling for $152.4 million in sales and $0.35 per share in profit.

• [By Seth Jayson]

  MicroStrategy (Nasdaq: MSTR  ) is expected to report Q2 earnings around July 29. Here's what Wall Street wants to see:

  The 10-second takeaway
  Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict MicroStrategy's revenues will wither -1.9% and EPS will wither -40.0%.

• [By Tim Beyers and Erin Miller]

  Importantly, the BI sector as a whole isn't seeing gains. MicroStrategy (NASDAQ: MSTR  ) fell as much as Qlik gained on a 6% decline in revenues in the most recent quarter. Qlik, by contrast, reported a 22% rise in revenue and told analysts to expect another 20% or better bump in the quarter.

Top Low Price Companies To Watch In Right Now: Vero Energy Inc Com Npv(VRO.TO)

Vero Energy Inc. engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids in the province of Alberta in Canada. As of December 31, 2011, the company?s properties included 265 producing natural gas wells and 76 producing oil wells; and land holdings of 162,832 gross developed acres and 111,997 undeveloped acres. Vero Energy Inc. was founded in 2005 and is headquartered in Calgary, Canada.

Best Casino Companies To Watch In Right Now: TECO Energy Inc.(TE)

TECO Energy, Inc., an electric and gas utility company, through its subsidiaries, engages in the generation, purchase, transmission, distribution, and sale of electric energy. It provides retail electric service to approximately 672,000 customers in West Central Florida with a net winter system generating capability of 4,684 megawatts. The company also engages in the purchase, distribution, and marketing of natural gas. It serves approximately 336,000 residential, commercial, industrial, and electric power generation customers in Florida. In addition, the company owns mineral rights, owns or operates surface and underground mines, and owns interests in coal processing and loading facilities. TECO Energy, Inc. was founded in 1899 and is headquartered in Tampa, Florida.

Advisors' Opinion:

• [By Justin Loiseau]

  TECO Energy (NYSE: TE  ) is known for its coal-centric capacity and ownership of Appalachian mines, but the company relies on natural gas for 39% of its overall generation.

• [By Justin Loiseau]

  TECO Energy (NYSE: TE  ) reported Q1 earnings (link opens a PDF) today, missing on sales but topping analysts' earnings estimates. First-quarter revenue clocked in at $661 million, just shy of Mr. Market's $668 million prediction. But what the company cut off the top line, it made up for on bottom-line numbers. EPS came in at $0.19, two cents above analyst expectations. Compared with Q1 2012, sales are down 5.2% and net income dropped 18%.�

• [By Justin Loiseau]

  TECO Energy (NYSE: TE  ) has agreed to purchase Continental Energy Systems' New Mexico Gas Co. for $950 million, the company announced today.

• [By Justin Loiseau]

  Around the same time, TECO Energy's (NYSE: TE  ) Tampa Electric utility requested an even larger average $11.68 bill boost, but only around $1.28 of that accounts for fuel costs. TECO has been behind the times on its return on equity (the single-most important investment indicator for regulated utilities), and previously expected its ROE to clock in at less than 9% for 2013. But TECO's request was approved in September, and the company can now enjoy 10.25% ROE off its 5.5% increase in regulated revenue.

Top Low Price Companies To Watch In Right Now: Snap-On Incorporated(SNA)

Snap-on Incorporated provides tools, equipment, diagnostics, repair information, and systems solutions for professional users. Its products include hand tools, such as wrenches, screwdrivers, sockets, pliers, ratchets, saws and cutting tools, pruning tools, and torque measuring instruments; power tools, including pneumatic, hydraulic, cordless, and corded tools; and tool storage products comprising tool chests, roll cabinets, and tool control systems. The company?s diagnostics and repair information products include handheld and PC-based diagnostics products, service and repair information products, diagnostic software solutions, electronic parts catalogs, business management systems, business services, point-of-sale systems, integrated systems for vehicle service shops, original equipment manufacturer purchasing facilitation services, and warranty management systems and analytics to manage and track performance. Snap-on Incorporated?s equipment products comprise solutions for the diagnosis and service of automotive and industrial equipment, such as wheel alignment, collision repair, air conditioning service, brake service, fluid exchange, transmission troubleshooting, and safety testing equipment, as well as wheel balancers, tire changers, vehicle lifts, test lane systems, battery chargers, and hoists. The company also provides financial services, including business loans and vehicle leases to franchisees; loans to the franchisees? customers; and loans to its industrial and other customers for the purchase of tools, equipment, and diagnostics products. Snap-on Incorporated sells its products and services through mobile vans, franchisees, company-direct sales, distributors, and the Internet in approximately 130 countries, including the United States, the United Kingdom, Canada, Germany, Australia, France, Japan, Spain, Italy, Sweden, the Netherlands, Argentina, China, and Brazil. Snap-on Incorporated was founded in 1920 and is based in Kenosh a, Wisconsin.

Advisors' Opinion:

• [By Seth Jayson]

  Snap-on (NYSE: SNA  ) reported earnings on April 18. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 30 (Q1), Snap-on met expectations on revenues and beat expectations on earnings per share.

Top Low Price Companies To Watch In Right Now: Metminco Ltd(MNC.AX)

Metminco Limited, through its subsidiaries, engages in the exploration and development of mineral prospects primarily located in Chile and Peru, South America. It primarily focuses on exploring copper, as well as on gold, molybdenum, and zinc. The company principally holds interests in the Los Calatos copper and molybdenum porphyry deposit located in southern Peru. Metminco Limited was incorporated in 2006 and is based in North Sydney, Australia.

Top Low Price Companies To Watch In Right Now: Triumph Group Inc.(TGI)

Triumph Group, Inc., through its subsidiaries, engages in the design, engineering, manufacture, repair, overhaul, and distribution of aircraft components. The company operates in two segments, Aerospace Systems and Aftermarket Services. The Aerospace Systems segment provides mechanical and electromechanical controls, such as hydraulic systems and components, main engine gearbox assemblies, and accumulators and mechanical control cables. It also involves in stretch forming, die forming, milling, bonding, machining, welding, and assembling and fabricating various structural components used in aircraft wings, fuselages, and other assemblies. In addition, this segment provides composite assemblies for floor panels, environmental control system ducts, non-structural cockpit components, and thermal acoustic insulation systems. The Aftermarket Services segment provides maintenance, repair, and overhaul services for commercial and military markets. This segment offers its services on auxiliary power units, and air frame and engine accessories, including constant-speed drives, cabin compressors, starters and generators, and pneumatic drive units; and on thrust reversers, nacelle components, and flight control surfaces, as well as supplies spare parts of cockpit instruments and gauges for a range of commercial airlines. The company serves the aerospace industry, including original equipment manufacturers of commercial, regional, business, and military aircraft and components, as well as commercial airlines, air cargo carriers, and military customers. Triumph Group, Inc. was founded in 1993 and is based in Wayne, Pennsylvania.

Advisors' Opinion:

• [By Rich Smith]

  On Friday, Triumph Group's (NYSE: TGI  ) Aerostructures-Vought Aircraft Division announced that it has been awarded the contract to design and build the center fuselage section III, rear fuselage section, and also the rudder and elevator components on the tail section on Embraer's second-generation family of E-Jets.

• [By Seth Jayson]

  Calling all cash flows
  When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Triumph Group (NYSE: TGI  ) , whose recent revenue and earnings are plotted below.

• [By Ben Levisohn]

  Shares of Textron have gained 1.2% to $36.63 at 1:09 p.m., while Embraer (ERJ) has risen 0.5% to $32.30, Triumph Group (TGI) has advanced 0.2% to $75.73 and Spirit AeroSystems (SPR) is off 0.8% at $33.90.

• [By Alex Planes]

  What: Shares of Triumph Group (NYSE: TGI  ) are down nearly 7%, and reached an intraday low of 10% beneath yesterday's close, after releasing an earnings report that pairs solid quarterly results with disappointing forward guidance.

Top Low Price Companies To Watch In Right Now: Rogers Communication Inc.(RCI)

Rogers Communications, Inc. operates as a communications and media company in Canada. The company?s Wireless segment provides wireless voice and data communications services. It operates a global system for mobile communications and general packet radio service network. This segment markets its products and services under Rogers Wireless, Fido, and chatr brands. Its Cable segment offers cable television, high-speed Internet access, and cable telephony services. As of December 31, 2010, this segment provided digital cable services to approximately 1.7 million households; Internet service to approximately 1.7 million residential subscribers; and residential circuit-switched telephony services to approximately a million subscribers. This segment also offers local and long-distance telephone, enhanced voice and data services, and IP access. In addition, this segment operates a retail distribution chain consisting of approximately 400 stores that provide cable services and digi tal and Internet equipment, as well as offers digital video disc and video game sales and rentals. The company?s Media segment publishes magazines, trade and professional publications, and directories, as well as operates 55 radio stations in Canada; multicultural OMNI broadcast television stations; the 5 station Citytv television network; specialty sports television services, including Rogers Sportsnet, Sportnet ONE, and Setanta Sports Canada; specialty services, which comprise Outdoor Life Network, The Biography Channel Canada, and G4 Canada; and televised shopping service, The Shopping Channel. It also holds an ownership in a mobile sports and events production and distribution joint venture; delivers content and conducts ecommerce through the Internet; and owns Blue Jays, a League Baseball club, as well as Rogers Centre sports and entertainment venue. The company was founded in 1920 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Tom Taulli]

  Big competitors for BCE include Rogers Communications (RCI) and Telus (TU), though it also faces niche players such as Public Mobile, Wind Mobile and Mobilicity. Until recently, there was buzz that Verizon (VZ) might enter the market by buying up the latter two, though VZ apparently scrapped plans for Canadian expansion until 2014.

• [By Dan Caplinger]

  The big news for Madison Square Garden has been the success of its key sports franchises. The New York Knicks basketball team made the playoffs and earned the No. 2 seed in the Eastern Conference. Even more importantly, the long-delayed National Hockey League season finally got going in January, helping resurrect what many had feared would be a lost season, sending shares of MSG, as well as Canadian venue/team-owners Rogers Communications (NYSE: RCI  ) and BCE (NYSE: BCE  ) , higher. As it turned out, MSG's New York Rangers made the playoffs and will go up against the Washington Capitals in the first round. Playoffs are an especially lucrative time for sports viewership, and usually translate into extra profits for the company's broadcast businesses.

Top Low Price Companies To Watch In Right Now: Medidata Solutions Inc.(MDSO)

Medidata Solutions, Inc. provides software-as-a-service based clinical development solutions for life science organizations worldwide. Its solutions comprise software and services that allow customers to increase the value of their development programs by designing, planning, and managing key aspects of the clinical trial process, including study and protocol design, trial planning and budgeting, site negotiation, clinical portal, trial management, randomization and trial supply management, clinical data capture and management, safety events capture, medical coding, clinical business analytics, and data flow and interoperability. The company primarily offers Medidata Rave, a comprehensive platform for capturing and managing clinical data. It also provides Medidata CTMS, a clinical trial management solution that streamlines operational workflows; Medidata Designer, a protocol development tool that enhances the efficiency of clinical trial start-up; Medidata Insights, a busi ness analytics platform; and Medidata Balance, a randomization and trial supply management solution, which streamlines the process of developing, building, and implementing subject allocation plans. In addition, the company offers Medidata Grants Manager, an application to benchmark the investigator budgets against industry data; Medidata contract research organization (CRO) Contractor, an analytical tool for CRO outsourcing, budgeting, and negotiation; and iMedidata, a hosted portal application that allows investigative sites and sponsor study teams to start trial activities. Further, it provides hosting, support, and professional services. The company serves pharmaceutical, biotechnology, and medical device companies; academic institutions; and CROs and other entities engaged in clinical trials through a direct sales force; and through relationships with CROs and other strategic partners. The company was founded in 1999 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Brian Pacampara]

  What: Shares of cloud-based clinical development technologist Medidata Solutions (NASDAQ: MDSO  ) surged 19% today after its quarterly results and outlook topped Wall Street expectations.�

• [By Jonas Elmerraji]

  Mid-cap medical software stock Medidata Solutions (MDSO) is the smallest name on today's list by far, but it's hard to ignore the technical trade that's been setting up in shares. Even though MDSO has already rallied more than 52% since the start of 2013, this name looks well positioned for some serious continuation in the New Year.

  That's because Medidata is currently forming an ascending triangle pattern, a bullish price setup that's formed by overhead resistance at $62.50 and uptrending support to the downside. Basically, as shares bounce in between those two technical price levels, they're getting squeezed closer and closer to a breakout above resistance. When that move through $62.50 happens, we've got our buy signal.

  MDSO is another name that's been showing off outsized relative strength lately. Considering the fact that the S&P look likely to show us a healthy correction sooner rather than later, positive relative strength trends are the single most important technical indicator traders can ask for right now. When the buy signal comes, I'd recommend putting a stop on the other side of the 50-day moving average.

  
  Berkshire Hathaway (BRK.A)

  Berkshire Hathaway, on the other hand, hasn't been seeing much in the way of relative strength in the last few months. Since the start of July, Berkshire's shares have only managed to gain a third of what the broad market has returned. But a breakout in shares of Warren Buffett's favorite stock means that fortunes are likely about to turn for shareholders.

  Berkshire had been forming symmetrical triangle, a pattern that's formed by converging trendlines squeezing in on the stock's price at a nearly even rate. The symmetrical triangle has less upside bias than the ascending triangle we just looked at, but the trading trigger is essentially the same -- a breakout outside of the pattern is the signal to make a move. So, shares of Berkshire are flashing "buy" now.

  With the brea

• [By Brian Stoffel]

  But I'm not here to talk about these two companies
  I offer those two up as examples that this trend of profiting while helping medical companies save money, is very real. The company I'd like to introduce you to today is much smaller: Medidata Solutions (NASDAQ: MDSO  ) .

Subscribe to: Comments (Atom)

Blog Archive

• ►  2019 (38)
  • ►  March (18)
  • ►  February (20)

• ►  2018 (23)
  • ►  August (2)
  • ►  July (11)
  • ►  June (3)
  • ►  May (7)

• ►  2015 (150)
  • ►  July (5)
  • ►  June (17)
  • ►  May (20)
  • ►  April (18)
  • ►  March (27)
  • ►  February (21)
  • ►  January (42)

• ▼  2014 (412)
  • ►  December (28)
  • ►  November (26)
  • ►  October (46)
  • ►  September (45)
  • ►  August (41)
  • ►  July (59)
  • ►  June (53)
  • ►  May (27)
  • ►  April (24)
  • ►  March (24)
  • ►  February (13)
  • ▼  January (26)
    • Rieder: With Couric, Yahoo makes big bet on video
    • Average rate on 30-year mortgage at 4.1%
    • Can the Magic Kingdom Outduel a Boy Wizard?
    • Casey’s General Stores Beat Q1 Estimates with High...
    • Does This Company Still Have the Secret Sauce?
    • Top 10 Financial Stocks To Invest In 2014
    • Lorillard
    • Does This Plan Help Fannie Mae and Freddie Mac Inv...
    • Anadarko Gains 2% as Mozambique Stake Sale Exceeds...
    • Trimming Winners can be a Winning Move
    • Feeling Sick: Tenet Healthcare Plunges 10% on Earn...
    • Advanced Micro Devices (AMD) Is Up 15.5% Ahead of ...
    • Bear of the Day: HomeStreet (HMST) - Bear of the Day
    • Stocks to Watch: GameStop, J.P. Morgan, Stratasys
    • David Herro and Bill Nygren Comment on Daiwa Secur...
    • Best Performing Stocks To Watch For 2014
    • Why Active Management Isn't as Dumb as You Think
    • Fighting Investors' Greatest Enemy: Overconfidence
    • Top Low Price Companies To Watch In Right Now
    • Bed Bath & Beyond shares drop after earnings, outlook
    • Euro Auto Sales Hit Multi-Decade Low. Time to Buy?
    • Hot Cheap Companies To Invest In 2014
    • Today's 3 Best Stocks
    • Why The Pantry Shares Fell
    • Don’t Unveil a TV Without This Feature, Apple
    • Best Blue Chip Stocks To Watch For 2014

• ►  2013 (140)
  • ►  December (22)
  • ►  November (21)
  • ►  October (23)
  • ►  September (21)
  • ►  August (19)
  • ►  July (33)
  • ►  May (1)

About Me

Blaze

View my complete profile

Latest Guru Picks	Value Strategies
Warren Buffett Portfolio	Ben Graham Net-Net
Real Time Picks	Buffett-Munger Screener
Aggregated Portfolio	Undervalued Predictable

Ethereal theme. Powered by Blogger.