Thursday, October 31, 2013

Can Dell See Higher Prices?

With shares of Dell (NASDAQ:DELL) trading around $13, is DELL an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Dell is a global information technology company that offers its customers a range of solutions and services delivered directly by Dell and through other distribution channels. The company operates in four segments: Large Enterprise, Public, Small and Medium Business, and Consumer. Dell serves a wide range of customers: global and national corporate businesses; educational institutions, government, health care, and law enforcement agencies; small and medium-sized businesses; and end users. Through its four segments, Dell is able to provide information technology products to a growing user base around the world. As economies continue to develop, look for a company like Dell to provide important technology products for years to come.

T = Technicals on the Stock Chart are Weak

Dell stock has seen a decline over the last several years. Any progress the stock has made is met with selling. Just recently, Dell is the subject of positive merger press which may have a significant effect on the stock’s price. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Dell is trading around its key averages which signal neutral price action in the near-term.

DELL

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(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Dell options may help determine if investors are bullish, neutral, or bearish.

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Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Dell Options

24.68%

66%

63%

What does this mean? This means that investors or traders are buying a significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

Put IV Skew

Call IV Skew

May Options

Steep

Average

June Options

Steep

Average

As of today, there is an average demand from call buyers or sellers and high demand by put buyers or low demand by put sellers, all neutral to bearish over the next two months. To summarize, investors are buying a significant amount of call and put option contracts and are leaning neutral to bearish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Decreasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Dell’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Dell look like and more importantly, how did the markets like these numbers?

2012 Q4

2012 Q3

2012 Q2

2012 Q1

Earnings Growth (Y-O-Y)

-29%

-44.90%

-12.50%

-26.53%

Revenue Growth (Y-O-Y)

-10.71%

-10.70%

-7.50%

-3.96%

Earnings Reaction

0.21%

-7.32%

-5.34%

-17.17%

Dell has seen decreasing earnings and revenue figures over the last four quarters. From these figures, the markets have been disappointed with Dell’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Dell stock done relative to its peers, Hewlett-Packard (NYSE:HPQ), International Business Machines (NYSE:IBM), Apple (NASDAQ:AAPL), and sector?

Dell

HP

IBM

Apple

Sector

Year-to-Date Return

32.10%

44.53%

5.69%

-16.82%

6.46%

Dell has been a relative performance leader, year-to-date.

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Conclusion

Dell provides valuable and innovative technology products to a range of businesses and consumers around the world. The stock has been in a constant decline over the last several years. However, the company has been the subject of positive merger press in recent times which has lifted the stock a bit. Earnings and revenue figures have been shrinking over the last four quarters which has not really impressed investors. Relative to its peers and sector, Dell has been a year-to-date performance leader. Look for Dell to OUTPERFORM.

Monday, October 28, 2013

Houston Restaurant Bans Kids Under 9 During Dinner Hours

#fivemin-widget-blogsmith-image-115751{display:none}.cke_show_borders #fivemin-widget-blogsmith-image-115751,#postcontentcontainer #fivemin-widget-blogsmith-image-115751{width:570px;height:411px;display:block} Texas Restaurant Bans Children 7 and Under During Dinner Hours The rule in business is supposed to be, "The customer is always right." But when two different sets of customers are looking for mutually exclusive experiences, something's got to give. In the case of Houston restaurant La Fisheria, a supposedly family-friendly establishment, that has meant instituting a ban on children under 9 after 7 p.m., so that customers looking for a meal that doesn't come with a free side order of unruly young'uns can eat in peace. The new policy, posted at the door and also on the restaurant's Facebook page, reads:

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LA FISHERIA AFTER 7:00PM.... After 7:00 pm, people over eight years old only. For your understanding, Thank you. We are a family friendly restaurant, and we also respect all of our customers so we introduce this new policy to the restaurant. thanks for your understanding.

Based on interviews done by local Houston news outlets, response is predictably mixed: Some people are thrilled, and think more restaurants should follow suit; others say they won't patronize again La Fisheria at any hour -- kids menu or no. In an interview on KHOU 11 News, executive chef Aquiles Chavez explained, "We find children that are crying, some kids, they are running under the tables, and our customers don't like [it]. ... Seven o'clock is not a time for children, especially when we serve drinks and wine."

Saturday, October 26, 2013

Why Ellie Mae's Earnings Are Outstanding

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

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 Ellie Mae (NYSE: ELLI  ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, Ellie Mae generated $25.1 million cash while it booked net income of $19.7 million. That means it turned 22.4% of its revenue into FCF. That sounds pretty impressive.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at Ellie Mae look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With 20.9% of operating cash flow coming from questionable sources, Ellie Mae investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost, at 22.4% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 25.6% of cash from operations.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Ellie Mae makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

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Friday, October 25, 2013

Mediocre Start for Two Private Equity-Backed IPOs

On a day when Twitter's impending listing dominated initial public offering buzz, two private equity backed companies debuted with tepid results.

Carlyle Group(CG)-backed CommScope(COMM)Holding Co. raised nearly $577 million in its initial public offering of 38.5 million shares, which priced at $15 apiece, below a previously set per-share range of $18 to $21.

CommScope, of Hickory, N.C., provides connectivity and infrastructure for wireless, business enterprise and residential broadband networks. It makes coaxial fiber and other cables used to build communications infrastructure. Washington, D.C.-based Carlyle took the company private in January 2011 for about $3.36 billion, or $3.9 billion including assumed debt.

The company's shares nearly ended the day where they started. Shares traded on the Nasdaq Stock Market at $14.99 each at Friday's close.

That was a smaller drop than the 6.25% slide of Endurance International Group Holdings Inc., the other PE-backed company to debut Friday. The communications infrastructure company, backed by Warburg Pincus and GS Capital Partners, the private equity affiliate of Goldman Sachs Group Inc.,  priced 21 million shares at $12 each, also under a previously estimated range of $14 to $16 per share. During 4 p.m. trading on the Nasdaq, those shares were down 75 cents, trading at $11.25.

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Hot Small Cap Companies To Invest In 2014

Small cap stocks Alliance Creative Group Inc (OTCMKTS: ACGX), Dale Jarrett Racing Adventure Inc (OTCMKTS: DJRT), Inscor Inc (OTCMKTS: IOGA) and Solar Thin Films Inc (OTCMKTS: SLTZ) have all been getting some attention lately in various investment newsletters and it should come as no surprise that two out of four of these stocks have been the subject of paid promotions ��which tend to benefit traders. However, two out of four of these stocks also have pretty good financials for being small cap OTC stocks and that might make them attractive to investors with a long term time horizon. So which of these stocks might make traders some profits in the short term and investors some profits over the longer term? Here is a closer look to help you decide:

Alliance Creative Group Inc (OTCMKTS: ACGX) Has Pretty Good Financials for an OTC Stock

Small cap Alliance Creative Group is a printing, packaging, product development, management and procurement company. On Friday, Alliance Creative Group rose 3.70% to $0.0028 for a market cap of $41,439 plus ACGX is down 89.8% over the past year and up 600% over the past five years according to Google Finance.

Hot Small Cap Companies To Invest In 2014: InterDigital Inc.(IDCC)

Interdigital, Inc. engages in the design and development of digital wireless technology solutions. The company offers technology solutions for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, and IEEE 802-related products and networks. It holds patents related to the fundamental technologies that enable wireless communications. The company licenses its patents to equipment producers that manufacture, use, and sell digital cellular and IEEE 802-related products; and licenses or sells mobile broadband modem solutions, including modem IP, know-how, and reference platforms to mobile device manufacturers, semiconductor companies, and other equipment producers that manufacture, use, and sell digital cellular products. InterDigital?s solutions are incorporated in various products comprising mobile devices, such as cellular phones, tablets, notebook computers, and wireless personal digital assistants; wireless infrastructure equipment, such as base stations; and components, dongles, and modules for wireless devices. The company was founded in 1972 and is headquartered in King of Prussia, Pennsylvania.

Advisors' Opinion:
  • [By Evan Niu, CFA]

    What: Shares of InterDigital (NASDAQ: IDCC  ) have gotten crushed today by as much as 20% after the company lost a patent suit against several smartphone makers.

Hot Small Cap Companies To Invest In 2014: OCZ Technology Group Inc(OCZ)

OCZ Technology Group, Inc. designs, develops, manufactures, and distributes computer components for computing devices and systems worldwide. It primarily offers solid state drives, flash memory storage, memory modules, thermal management solutions, AC/DC switching power supply units, and computer gaming solutions. The company?s products are used in industrial equipment and computer systems; computer and computer gaming solutions; mission critical servers and high end workstations; personal computer (PC) upgrades to extend the useable life of existing PCs; high performance computing and scientific computing; video and music editing; home theatre PCs and digital home convergence products; and digital photography and digital image manipulation computers. OCZ Technology Group, Inc. offers its products to retailers, on-line retailers, original equipment manufacturers, systems integrators, and distributors. The company was founded in 2002 and is headquartered in San Jose, Califo rnia.

Advisors' Opinion:
  • [By Rich Duprey]

    The not-so-great and wonderful OCZ
    There was no company-specific news that caused solid-state-drive maker OCZ Technology (NASDAQ: OCZ  ) to fall almost 8% Wednesday. But an article that appeared on Seeking Alpha �questioning whether the company had six months or less to live before it filed for bankruptcy seemed to coincide with its fall.

Best Medical Companies To Own For 2014: FuelCell Energy Inc.(FCEL)

FuelCell Energy, Inc., together with its subsidiaries, engages in the development, manufacturing, and sale of high temperature fuel cells for clean electric power generation primarily in South Korea, the United States, Germany, Canada, and Japan. The company offers proprietary carbonate Direct FuelCell Power Plants that electrochemically produce electricity from hydrocarbon fuels, such as natural gas and biogas. Its fuel cells operate on a range of hydrocarbon fuels, including natural gas, renewable biogas, propane, methanol, coal gas, and coal mine methane. The company also develops carbonate fuel cells, planar solid oxide fuel cell technology, and other fuel cell technologies. It provides its products to universities; manufacturers; mission critical institutions, such as correction facilities and government installations; hotels; and natural gas letdown stations, as well as to customers who use renewable biogas for fuel, including municipal water treatment facilities, br eweries, and food processors. The company was founded in 1969 and is headquartered in Danbury, Connecticut.

Advisors' Opinion:
  • [By Bryan Murphy]

    Had shares of its peers and competitors performed as well, it may not even be worth bringing up. But, Plug Power Inc. (NASDAQ:PLUG) shares have done significantly better than FuelCell Energy Inc. (NASDAQ:FCEL) and Ballard Power Systems Inc. (NASDAQ:BLDP) since the end of March. And, PLUG has performed considerably better than FCEL and BLDP have since mid-August. This is more than "just a little volatility." This is a leader breaking away from the pack after a very long lull. Thing is, there's plenty more room for Plug Power to keep running.

Hot Small Cap Companies To Invest In 2014: Hot Topic Inc.(HOTT)

Hot Topic, Inc., together with its subsidiaries, operates as a mall- and Web-based specialty retailer in the United States. The company operates Hot Topic and Torrid store concepts, as well as an e-space music discovery concept, ShockHound. Its Hot Topic stores sell music/pop culture-licensed merchandise, including tee shirts, hats, posters, stickers, patches, postcards, books, novelty accessories, CDs, and DVDs; and music/pop culture-influenced merchandise comprising women?s and men?s apparel and accessories, such as woven and knit tops, skirts, pants, shorts, jackets, shoes, costume jewelry, body jewelry, sunglasses, cosmetics, leather accessories, and gift items for young men and women primarily between the ages of 12 and 22. The company?s Torrid stores sells casual and dressy jeans and pants, fashion and novelty tops, sweaters, skirts, jackets, dresses, hosiery, shoes, intimate apparel, and fashion accessories for various lifestyles for plus-size females primarily betw een the ages of 15 and 29. As of July 30, 2011, it operated 636 Hot Topic stores in 50 states, Puerto Rico, and Canada; 145 Torrid stores; and Internet stores, hottopic.com and torrid.com. The company was founded in 1988 and is headquartered in City of Industry, California.

Advisors' Opinion:
  • [By Marshall Hargrave]

    In May True Religion (TRGL) announced a buyout offer from TowerBrook Capital for $826 million. Also in May, Rue21 decided to sell itself to Apax Partners for $2.2 billion. Before that, in March, Hot Topic (HOTT) announced that Sycamore Partners was buying out it out for $600 million.

Hot Small Cap Companies To Invest In 2014: ATA Inc.(ATAI)

ATA Inc., through its subsidiaries, provides computer-based testing services in the People?s Republic of China. It offers services for the creation and delivery of computer-based tests utilizing its test delivery platform, proprietary testing technologies, and testing services; and provides logistical support services relating to test administration. The company?s computer-based testing services are used for professional licensure and certification tests in various industries, including information technology (IT) services, banking, securities, teaching, and insurance. Its e-testing platform integrates various aspects of the test delivery process for computer-based tests ranging from test form compilation to test scoring, and results analysis. ATA also provides career-oriented educational services, such as single course programs, degree major course programs, and pre-occupational training programs focusing on preparing students to pass IT and other vocational certification tests; test preparation and training programs and services to test candidates preparing to take professional certification tests in securities, futures, banking, insurance and teaching industries; online test preparation and training platform for the securities and banking industries; and test preparation software for the teaching industry. In addition, the company offers HR select employee assessment solution, an online system that utilizes its proprietary software and an inventory of test titles to help employers improve the efficiency and accuracy of their employee recruitment process. As of March 31, 2010, it had contractual relationships with 1,988 ATA authorized test centers. The company serves Chinese governmental agencies, professional associations, IT vendors, and Chinese educational institutions, as well as individual test preparation services. ATA Inc. was founded in 1999 and is based in Beijing, the People?s Republic of China.

Hot Small Cap Companies To Invest In 2014: Rackspace Hosting Inc(RAX)

Rackspace Hosting, Inc. operates in the hosting and cloud computing industry. It provides information technology (IT) as a service, managing Web-based IT systems for small and medium-sized businesses, as well as large enterprises worldwide. The company?s service suite includes dedicated hosting comprising customer management portal and other management tools that manage data center, network, hardware devices, and operating system software; and cloud computing that enables customers to provide and manage a pool of computing resources, as well as delivery of computing resources to business when they need them. It offers cloud servers, cloud files, and cloud sites, as well as cloud applications, such as email, collaboration, and file back-ups; and hybrid hosting that provides a combination of dedicated hosting and cloud computing services. The company also offers customer support services. It sells its service suite through direct sales teams, third-party channel partners, an d online ordering. The company was formerly known as Rackspace.com, Inc. and changed its name to Rackspace Hosting, Inc. in June 2008. Rackspace Hosting, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.

Advisors' Opinion:
  • [By WALLSTCHEATSHEET.COM]

    Rackspace is probably being unfairly treated based on the company�� fundamentals, consistent revenue and earnings performance, and future potential. On the other hand, with the stock trading at 45 times earnings and 41 times future earnings, it will be difficult for Rackspace to meet expectations. This also makes the stock more susceptible to market corrections.

  • [By Tim Beyers]

    Shares of Rackspace Hosting (NYSE: RAX  ) fell more than 24% Thursday, leaving essentially no investors who believe this is one of the best stocks to invest in now.

Hot Small Cap Companies To Invest In 2014: Panera Bread Company(PNRA)

Panera Bread Company, together with its subsidiaries, owns, operates, and franchises retail bakery-cafes in the United States and Canada. Its bakery-cafes offer fresh baked goods, sandwiches, soups, salads, custom roasted coffees, and other complementary products, as well as provide catering services. The company also manufactures and supplies dough and other products to company-owned and franchise-operated bakery-cafes. As of March 29, 2011, it owned and franchised 1,467 bakery-cafes under the Panera Bread, Saint Louis Bread Co., and Paradise Bakery & Cafe names. The company was founded in 1981 and is based in St. Louis, Missouri.

Advisors' Opinion:
  • [By Alyce Lomax]

    However, maybe a huge part of the problem is continuing momentum toward quick-service restaurants with more upscale images or brands. For just a little more money, consumers can get a quick meal that's a bit healthier or includes fresher, whole ingredients at restaurants such as Chipotle Mexican Grill (NYSE: CMG  ) , Panera Bread (NASDAQ: PNRA  ) , and Noodles & Co. (NASDAQ: NDLS  ) .

  • [By BubbleBustInvesting]

    Three popular franchises, Panera Bread (PNRA), Dunkin' Brands (DNKN), and Starbucks (SBUX) are reporting Q1 earnings this week. Analysts expect Panera Bread to report earnings in the range of $1.68 to $1.58; Dunkin Brands in the range of 0.32 50 0.28; and Starbucks in the range of 0.52 to 0.47.

  • [By Michael Lewis]

    Not alone
    Chipotle and Noodles are just two examples of the QSR craze. Panera Bread (NASDAQ: PNRA  ) trades at 23 times forward earnings. While not as unreasonably priced as the other two, it's still got a hefty price tag for a company that has already gone through its biggest growth phase.

  • [By Dan Caplinger]

    Some investors are still nervous about the high share price for the stock, suggesting that even solid growth isn't enough. But Starbucks has already demonstrated that it's up to the growth challenge. With its juice- and tea-company acquisitions, Starbucks has aimed at offering a complete line of beverages to beat out coffee offerings from Dunkin' Brands (NASDAQ: DNKN  ) while holding off other competitors seeking to carve away specialized niches from its grasp. At the same time, Starbucks' purchase of La Boulange should serve to fend off challenges from Panera Bread (NASDAQ: PNRA  ) , which has followed a similar strategy as Starbucks yet come at it from the opposite direction, starting with its healthy baked goods and then gradually expanding its offerings, including coffee. For Starbucks, offering panini sandwiches contributed to the company's 7% rise in U.S. sales, showing the value of combining food with its premium beverages.

Hot Small Cap Companies To Invest In 2014: Voyager Oil & Gas Inc.(VOG)

Voyager Oil & Gas, Inc. engages in the exploration and production of oil and gas in the United States. It primarily focuses on oil shale resource prospects in Montana, North Dakota, Colorado, and Wyoming. As of May 17, 2011, the company controlled approximately 141,500 net acres in the five primary prospect areas comprising 28,000 net acres targeting the Bakken/Three Forks in North Dakota and Montana; 14,200 net acres targeting the Niobrara formation in Colorado and Wyoming; 800 net acres targeting a Red River prospect in Montana; 33,500 net acres in a joint venture targeting the Heath Shale formation in Musselshell, Petroleum, Garfield, and Fergus counties of Montana; and 65,000 net acres in a joint venture in the Tiger Ridge gas field in Blaine, Hill, and Chouteau counties of Montana. It supplies energy and fuel for industrial, commercial, and individual consumers. The company is based in Billings, Montana.

Tuesday, October 22, 2013

Hot Warren Buffett Companies To Buy For 2014

Questcor has been beset by short sellers -- over half its float is sold short -- who cite a myriad of issues from reimbursement pressure for its flagship product Achthar to government inquiries and potential competition from overseas.

Well, scratch one concern off the list. Questcor just struck a deal to acquire Novartis drug Synacthen. Shares popped 15% yesterday and tacked on an additional 7% in gains today.

In this video, health-care analyst David Williamson discusses the deal in further detail and the implications for Questcor investors.

Legendary investor Warren Buffett is worried. After famously cheerleading for American stocks at the bottom of the financial crisis, Buffett has identified a looming threat to the American system that could jeopardize future growth, employment, and profit. He accurately labeled this dangerous trend "the tapeworm that's eating at American competitiveness." Fortunately, The Motley Fool has prepared an important special free report, "What's Really Eating at America's Competitiveness," which explains Buffett's pessimism, why the government is throwing billions of dollars at the problem, and, most importantly, names one stock with a unique and disruptive solution that could dramatically reshape an entire industry. Click here�for free, immediate access.

Hot Warren Buffett Companies To Buy For 2014: Okp Holdings Limited (5CF.SI)

OKP Holdings Limited, an investment holding company, operates as an infrastructure and civil engineering company in Singapore. Its Construction segment engages in constructing urban and arterial roads, expressways, flyovers and buildings, vehicular bridges, airports infrastructure, and oil and gas-related infrastructure for petrochemical plants and oil storage terminals. The company�s Maintenance segment provides re-construction work on roads, road reserves, pavements, footpaths and kerbs, guardrails, drains, signboards, bus bays, and shelters. It also engages in property development; and provides technical management and consultancy services, and property rental services. The company was founded in 1966 and is based in Singapore. OKP Holdings Limited is a subsidiary of Or Kim Peow Investments Pte. Ltd.

Hot Warren Buffett Companies To Buy For 2014: Progress Energy Inc.(PGN)

Progress Energy, Inc., a utility holding company, engages in the generation, transmission, distribution, and sale of electricity in North Carolina, South Carolina, and Florida. It uses coal, oil, hydroelectric, natural gas, and nuclear power to generate electricity. The company also engages in various alternative energy projects to generate electricity from swine waste and other plant or animal sources, biomass, solar, hydrogen, and landfill-gas technologies. Progress Energy serves various industries, including chemicals, textiles, paper, food, metals, wood products, rubber and plastics, and stone products, as well as phosphate rock mining and processing, electronics design and manufacturing, and citrus and other food processing. It has approximately 22,000 megawatts of regulated electric generation capacity and serves approximately 3.1 million retail electric customers, as well as other load-serving entities. The company was formerly known as CP&L Energy, Inc. Progress En ergy, Inc. was founded in 1925 and is headquartered in Raleigh, North Carolina.

Advisors' Opinion:
  • [By Holly LaFon] ess Energy shares climbed over 2011 as the company announced in January it would merge with Duke Energy. Together, they will form the nation�� largest utility with a combined enterprise value of $65 billion and $37 billion in market cap. The new company will have 57 gigawatts of domestic generating capacity through a mix of coal, nuclear, natural gas, oil and renewable resources. Progress energy shareholders will receive an approximately 3 percent dividend increase.

    Incidentally, development of a comprehensive energy policy was one of what Grantham called ��he most important and most dangerous issues��facing the world.

    Progress is at the forefront of the push for nuclear energy in the U.S., which has been deemed the ��uclear renaissance.��Thirty-five percent of the electricity used by Progress Energy customers comes from one of their four nuclear sites, two in North Carolina, and one each in South Carolina and Florida. It plans to build another reactor in Levy County, Florida.

    Revenue at Progress Energy has declined at a 2.6% annual rate over the past five years, and it achieved cash flow of $95 million in 2010, after three years of losses. Earnings have remained positive, reaching a record for the decade of $856 million in 2010.

    RSC Holdings (RRR)

    RSC is a machinery rental service for construction, industrial, petrochemical, governmental and manufacturing businesses in the U.S. and Canada. RSC tends to benefit in economic downturns, as more businesses turn to renting rather than buying equipment to cut costs. Rented equipment rose 20.7% percent (the sixth consecutive quarter of double-digit growth) and rental revenue increased 27% in the fourth quarter of 2011, compared to last year.

    United Rentals (URI), one of RSC�� largest competitors, had a rental revenue increase of 18.5% in the fourth quarter compared to last year, which included a 6.7% increase in rental rates.

    The company�� fleet utilization also

Top 5 Medical Stocks To Own Right Now: InterContinental Hotels Group PLC (IHG)

InterContinental Hotels Group PLC (IHG), incorporated on May 21, 2004, is a global hotel company, operating seven brands internationally. IHG is the holding company. The principal activities of the Company are in hotels and resorts, with franchising, management, ownership and leasehold interests in over 4,400 establishments, with more than 658,000 guest rooms in over 100 countries and territories worldwide. IHG�� hotels brands include InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Hotel Indigo, Holiday Inn and Holiday Inn Club Vacations, Holiday Inn Express, Staybridge Suites, Candlewood Suites and Priority Club Rewards. It has four geographical segments: Americas, Europe, Asia, Middle East and Africa (AMEA), and Greater China. As of December 31, 2011, the pipeline totalled 1,144 hotels (180,484 rooms). In March 2012, the Company announced the launch of HUALUXE Hotels and Resorts in China. During the year ended 31 December 2011, it sold four hotels, three in the Americas region and one in the AMEA region. IHG also manages the hotel loyalty program, Priority Club Rewards. As of December 31, 2011, the Company has 3,832 hotels operate under franchise agreements; managed 637 hotels worldwide and owned 11 hotels. During 2011, the Company opened 241hotels (44,265rooms) and removed 98 hotels (33,078 rooms). IHG is focused on the three segments that together generate over 90% of branded hotel revenues: midscale (broadly 3-star hotels), upscale (4-star), and luxury (5-star). InterContinental Hotels & Resorts InterContinental Hotels & Resorts is IHG�� 5-star brand located in cities and resort destinations across more than 60 countries worldwide. Hotels under InterContinental Hotels & Resorts brand are principally managed by the Company. As of December 31, 2011, there were 169 hotels and 57,598 rooms. As of December 31, 2011, it had 51 hotels in development pipeline. Crowne Plaza Hotels & Resorts Crowne Plaza Hotels & Resorts is the IHG�� upscale 4-star segment, specializes in offering modern business and meeting facilities with a service style to provide productive and energising experiences to guests. The majority of hotels under Crowne Plaza Hotels & Resorts brand are principally operated under franchise agreements in the United States and Europe, and are managed by the Company. As of December 31, 2011, there were 387 hotels and 105,104 rooms. As of December 31, 2011, it had 108 hotels in development pipeline. Hotel Indigo Hotel Indigo provides guests with the refreshing design and service experience with a boutique hotel. The Hotels Indigo brand is principally operated under franchise agreements. As of December 31, 2011, there were 39 hotels and 4,564 rooms. As of December 31, 2011, it had 59 hotels in development pipeline Holiday Inn and Holiday Inn Club Vacations The Holiday Inn brand family consists of Holiday Inn, Holiday Inn Express and Holiday Inn Club Vacations. Holiday Inn and Holiday Inn Club Vacations is the midscale hotel brand. Focused on creating an atmosphere where guests can relax, the brand is designed to support both business and leisure travellers. The brand family operates under franchise agreements. As of December 31, 2011, there were 1,240 hotels and 228,256 rooms. As of December 31, 2011, it had 267 hotels in development pipeline. Holiday Inn Express Holiday Inn Express offers convenience and comfort. As of December 31, 2011, there were 2,114 hotels and 196,666 rooms. As of December 31, 2011, it had 470 hotels in development pipeline. Staybridge Suites Staybridge Suites is the Company�� upscale extended stay brand for guests on longer trips, offering studios and suites complete with full kitchens and separate sleeping and work areas in a sociable, family-like atmosphere. Properties under Staybridge Suites brand are operated under a mixture of franchise and management agreements. As of December 31, 2011, there were 179 hotels and 19,567 rooms. As of December 31, 2011, it had 95 hotels in development pipeline. Candlewood Suites Candlewood Suites is the Company�� midscale extended stay brand that gives its guests all the essentials they need for a home-like stay. Properties under Candlewood Suites brand are principally operated under franchise agreements. As of December 31, 2011, there were 285 hotels and 27,500 rooms. As of December 31, 2011, it had 94 hotels in development pipeline. The Company competes with Accor, Choice Hotels International, Inc., Hilton Hotels Corporation, Hyatt, Marriott, Starwood Hotels & Resorts Worldwide, Inc. and Wyndham Worldwide Corporation. Advisors' Opinion:
  • [By Tony Reading]

    In this series, I'm assessing the boardrooms of companies within the FTSE 100 (UKX). I hope to separate the management teams that are worth following from those that are not. Today, I am looking at�InterContinental Hotels� (LSE: IHG  ) (NYSE: IHG  ) , the world's largest listed hotels group.

Hot Warren Buffett Companies To Buy For 2014: Ridley Corporation Ltd(RIC.AX)

Ridley Corporation Limited, together with its subsidiaries, engages in the production and marketing of stockfeed and animal feed supplements to primary producers and rural communities in Australasia. The company produces and markets stock and poultry feeds, aqua feeds, animal protein meals, vitamin and mineral supplements, and rural merchandise under the Barastoc, Rumevite, Cobber, and Ridley Aqua-Feed brand names. It also produces and refines solar salt. The company markets salt under the Mermaid, Kooka, Crown, and Saxa brand names. It serves food producers in the beef, dairy, poultry, pig, sheep, and aquaculture industries; producers in the laboratory animals, and the equine and canines in the recreational sector; and consumer retail, water treatment, and food manufacturing industries, as well as the pool sector. The company was founded in 1987 and is headquartered in Melbourne, Australia.

Hot Warren Buffett Companies To Buy For 2014: Kingsmen Creatives Ltd(5MZ.SI)

Kingsmen Creatives Ltd., an investment holding company, provides integrated marketing solutions. The company?s Exhibitions and Museums segment produces exhibition displays for trade shows and promotional events; interiors and displays for museums and visitor centers; and thematic and scenic displays for theme parks. Its Interiors segment provides interior fitting-out services to commercial and retail properties. Kingsmen?s Research and Design segment offers design works for up market specialty stores, departmental stores, eateries, museums, visitors? centers, corporate offices, showrooms, trade shows, events, promotional functions, and festivals. The company?s Integrated Marketing Communication segment involves in the provision of event management and branding consultancy services. It also provides electrical engineering, graphic design and production services, advertising, and design consultancy and planning management, as well as design and construction facilities to exhibitors. The company operates primarily in Singapore, Greater China, the United States, Canada, Malaysia, rest of Asia, Europe, Vietnam, Indonesia, and the Middle East. Kingsmen Creatives Ltd. was founded in 1976 and is based in Singapore.

Hot Warren Buffett Companies To Buy For 2014: Team Health Holdings Inc.(TMH)

Team Health Holdings, Inc. provides outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States. It recruits and contracts with healthcare professionals who then provide professional services within third-party healthcare facilities. The company offers a range of services, including recruiting, scheduling, and credential coordinating for clinical and non-clinical medical professionals; coding, billing, and collecting fees for services provided by medical professionals; providing experienced medical directors; administrative support services, such as payroll, professional liability insurance coverage, continuing medical education services, and management training; claims and risk management services; and standardized procedures. It provides outsourced physician staffing and administrative services in emergency medicine, inpatient services, anesthesiology, pediatrics, temporary staffing, primary car e clinics and occupational medicine, and other hospital-based functions. The company also offers healthcare management physician-related services within a military treatment facility setting; and non-physician staffing services to military treatment facilities, including services, such as para-professional providers, nursing, specialty technicians, and administrative staffing. In addition, it provides medical call center services comprising physician after-hours call coverage, community nurse lines, emergency department advice calls, physician referral, class scheduling, appointment scheduling, and Web response. The company serves approximately 730 civilian and military hospitals, clinics, and physician groups in 47 states with a team of approximately 7,100 healthcare professionals, including physicians, physician assistants, nurse practitioners, and nurses. Team Health Holdings, Inc. was founded in 1979 and is headquartered in Knoxville, Tennessee.

Hot Warren Buffett Companies To Buy For 2014: National-Oilwell Inc.(NOV)

National Oilwell Varco, Inc. designs, constructs, manufactures, and sells systems, components, and products used in oil and gas drilling and production; provides oilfield services and supplies; and distributes products, and provides supply chain integration services to the upstream oil and gas industry worldwide. Its Rig Technology segment offers offshore and onshore drilling rigs; derricks; pipe lifting, racking, rotating, and assembly systems; rig instrumentation systems; coiled tubing equipment and pressure pumping units; well workover rigs; wireline winches; wireline trucks; cranes; and turret mooring systems and other products for floating production, storage and offloading vessels, and other offshore vessels and terminals. The company?s Petroleum Services & Supplies segment provides various consumable goods and services to drill, complete, remediate, and workover oil and gas wells and service pipelines, flowlines, and other oilfield tubular goods. It also manufacture s, rents, and sells products and equipment for drilling operations, including drill pipe, wired drill pipe, transfer pumps, solids control systems, drilling motors, drilling fluids, drill bits, reamers and other downhole tools, and mud pump consumables. In addition, this segment provides oilfield tubular services comprising the provision of inspection and internal coating services; equipment for drill pipe, line pipe, tubing, casing, and pipelines; and coiled tubing pipes and composite pipes. Its Distribution Services segment sells maintenance, repair and operating supplies, and spare parts to drill site and production locations. The company primarily serves drilling contractors, shipyards and other rig fabricators, well servicing companies, pressure pumping companies, oil and gas companies, supply stores, and pipe-running service providers. National Oilwell Varco, Inc. was founded in 1862 and is based in Houston, Texas.

Advisors' Opinion:
  • [By Dan Caplinger]

    National Oilwell Varco (NYSE: NOV  ) will release its quarterly report on Tuesday, and the revolution in the U.S. energy industry continues to promise the potential for huge sales growth for the companies that provide essential materials and services to oil and gas exploration and production companies. Yet National Oilwell Varco earnings might well not keep up with those revenue gains, raising concerns that falling margins could persist and hold back the company's growth prospects.

  • [By Selena Maranjian]

    The biggest new holdings are Boeing�and cement giant Cemex. Other new holdings of interest include Sarepta Therapeutics (NASDAQ: SRPT  ) and National Oilwell Varco (NYSE: NOV  ) . Sarepta stock has soared more than�tenfold over the past year. After the company petitioned the FDA for accelerated approval for its Duchenne muscular dystrophy drug, eteplirsen, the FDA requested more information, sending shares lower. But management is optimistic about its recent interactions with the FDA, and new data reported this week was encouraging. Some see the stock as reasonably or attractively valued, but there are risks to consider.

  • [By Arjun Sreekumar]

    National Oilwell Varco
    Another potential winner is National Oilwell Varco (NYSE: NOV  ) , the single largest supplier of rig equipment to the oil and gas industry. Through decades of smart acquisitions, it has grown to become the most dominant, low-cost provider of rig equipment for the world's largest drillers, commanding a whopping 60% market share. �

Hot Warren Buffett Companies To Buy For 2014: Orbotech Ltd.(ORBK)

Orbotech Ltd. engages in designing, developing, manufacturing, marketing, and servicing yield-enhancing and production solutions for specialized applications in the supply chain of the electronics industry. The company?s products include automated optical inspection (AOI), automated optical repair, laser direct imaging, digital legend printing, laser drilling, laser plotters, computer-aided manufacturing, and engineering solutions for printed circuit boards (PCBs) and other electronics component manufacturing; and AOI, test, repair, and process monitoring systems for flat panel display (FPD) manufacturing. It also develops and markets character recognition solutions and services primarily to banks, financial institutions, and other payment processing institutions for use in check and healthcare payment processing. In addition, the company is involved in the research and development of products for the deposition of anti-reflective coating on crystalline silicon photovolta ic wafers for solar energy panels. It primarily serves manufacturer of PCB, FPD, liquid crystal displays, and other electronic components worldwide. The company was formerly known as Optrotech Ltd. and changed its name to Orbotech Ltd. as a result of its merger with Orbot Systems Ltd. in October 1992. Orbotech Ltd. was founded in 1981 and is headquartered in Yavne, Israel.

Advisors' Opinion:
  • [By John Emerson]

    AOI companies had little in the way of competition since they held a specialty niche and their systems were protected by patents. Years of R&D would be required to unseat them by way of technological superiority; therefore it made more sense for a larger company to assimilate them should they wish to enter the AOI sector. That said, CAMT was much smaller than its archrival Orbitech (ORBK) in the PCB AOI sector; thus their key to long term growth lied in their penetration into the rapidly expanding semiconductor AOI sector. In that area, their main completion was August Semiconductor.

  • [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 Orbotech (Nasdaq: ORBK  ) , whose recent revenue and earnings are plotted below.

Monday, October 21, 2013

Monday Closing Bell: Market Muddles from Mixed Open to Mixed Close

October 21, 2013: U.S. markets opened mixed Monday morning after a couple of weak earnings reports. The report on existing home sales showed a drop in September and the delayed report on crude oil inventories showed another large gain. There was not much momentum among traders today, either to the high side or the low side. On the whole, stocks ended the day just as mixed as they were in the morning.

European closed higher today while Asian and Latin American markets were mixed again.

Tuesday's calendar includes the following scheduled data releases and events (all times Eastern).

8:30 a.m. – Employment situation (delayed from October 4th due to government shutdown) 10:00 a.m. – Construction spending (delayed) 10:00 a.m. – Richmond Fed manufacturing index 10:30 a.m. – EIA weekly petroleum status report (delayed from last Thursday) 11:30 a.m. – 4-week bill auction

Here are the closing bell levels for Monday:

S&P500 1744.64 (+0.14; +0.01%) DJIA 15391.88 (-7.64; -0.05%) NASDAQ 3920.05 (+5.77; +0.15%) 10YR TNOTE 2.609% (-0.21875) Gold $1,315.80 (+1.20; +0.1%) WTI Crude oil $99.22 (-1.59; -1.6%) Euro/Dollar: 1.3680 (-0.0005; -0.03%)

Big Earnings Movers: McDonald's Corp. (NYSE: MCD) is down 0.6% at $94.59 after a so-so report and a downbeat forecast. Halliburton Co. (NYSE: HAL) is down 3.4% at $50.67 on added caution for the current quarter. V.F. Corp. (NYSE: VFC) is up 3.4% at $211.24. SAP AG (NYSE: SAP) is up 3.6% at $76.38. NVR Corp. (NYSE: NVR) is down 4.1% at $893.40.

Stocks on the Move: Crosstex Energy Inc. (NASDAQ: XTXI) is up 71.5% at $35.33 on a merger with Devon Energy Corp. (NYSE: DVN). Crosstex Energy LP (NASDAQ: XTEX) is up 33.9% at $27.25 on the same news. Voxeljet AG (NYSE: VJET) is up 22.7% at $35.34. J.C. Penney Co. Inc. (NYSE: JCP) is down 8.4% at $6.42, after posting another record low today.

In all, 338 NYSE stocks put up new 52-week highs today, while only 9 stocks posted new lows.

Sunday, October 20, 2013

Grading Bernanke

Well, it looks like Ben Bernanke has one foot out the door. At least that seems to be the consensus view after President Obama hinted at the end of the chairman’s tenure the other day and rumors have circled about who the next Fed Chief will be. I think this is probably correct. At heart, Ben Bernanke is just an economics professor who was thrust into one of the hardest jobs on the planet at one of the worst possible times. So it’s easy to understand why he might want out.

So, how will the world remember Ben Bernanke? It’s easy to be hard on him. It’s also easy to be easy on him. There will be two views in all likelihood. There will be those who remember him for missing the housing crisis entirely and stating that sub-prime was “contained” in 2007. And there will be those who remember the Fed Chief who helped piece together the rescue plan that brought the global economy away from the brink of disaster in 2009.

These two groups will battle over his legacy, but I think his legacy is far from having played out entirely. I think there is a potential third group of people who will wait to pass judgement on Dr. Bernanke. After all, some of us remember how Dr. Greenspan was lauded as a great Fed Chief when his tenure ended only to learn just years later that many of his ideas were, by his own admission, “flawed”.

Personally, I have a hard time believing that history will treat Dr. Bernanke all that well. After all, he works from the same basic set of economic beliefs that led his predecessor to believe that his approach was well grounded. We have suffered through 20 years of a boom bust business cycle that has been largely predicated on protecting financial institutions and targeting asset prices.

To me, there is very little in what Bernanke has done that hasn’t already been done before. In fact, you could argue that we’ve seen this movie and we all know how it ends. Of course, this movie isn’t over and no one really! knows how it ends, but given the similarities in the approaches between that of Dr. Bernanke and Dr. Greenspan, I have a hard time seeing how history will treat Dr. Bernanke any differently than it treats Dr. Greenspan. But the legacy of Dr. Bernanke has yet to fully play out.

Source: Grading Bernanke

Saturday, October 19, 2013

It's Time for Apple To Give Us a New Toy

Top 5 Stocks To Watch For 2014

London, UK. 20th September 2013. iPhone 5c launch, Regents Street, London, UK 20.09.2013 Picture shows the Apple store inundatedAlamy This would seem to be a good time to be Apple (AAPL). The consumer tech giant sold a record 9 million new iPhones during the iconic smartphone's debut weekend last month. On Tuesday, Apple has another media event -- its traditional way of unveiling its latest updates. "We still have a lot to cover," reads the invitation. Don't Hold Your Breath Despite the tantalizing nature of Apple promising that it has a lot to cover, fans shouldn't hold out for Apple smart watches, smart televisions, or computerized glasses. Analysts aren't expecting for much more than the fifth generation of the iPad, plus some refreshed Macbooks and Macs, and and an updated desktop operating system. Apple doesn't march to the beat of conventional wisdom. Simply following rival Samsung into smart watches and TVs or Google (GOOG) into smart specs isn't its style. Apple isn't a follower. The iPod raised the bar for digital media players. The iPhone wasn't the first smartphone, but it changed the game, transforming them from email-centric devices with physical keyboards into its now widely duplicated design and touchscreen interface. Nobody thought they needed a tablet until the iPad suddenly made it an essential. The iPad hit the market in 2001. The iPhone followed in 2007. The iPad started converting skeptics in 2010. Based on that calendar, it would seem as if Apple is due to create a new category or disrupt an old one. But it doesn't look like that'll happen soon. The Competition's Heating Up Growth has been a challenge at Apple in recent quarters. Macs, iPads, and iPods saw sales slide 1 percent, 31 percent, and 27 percent, respectively, in Apple's fiscal third quarter. We'll get a more current snapshot of the Mac Daddy's state when it reports quarterly results later this month. Analysts expect to see a sharp drop in profitability with a mere 2 percent uptick in sales, and that's essentially how the former tech darling's financial check ups have been going lately. Sales growth has been sluggish, and profitability has been slipping as Apple makes less money off every product it sells in this competitive marketplace. Right now, the iPhone is carrying Apple. Sales of the consumer tech giant's iconic smartphone rose 15 percent in the fiscal third quarter. However, with sources telling The Wall Street Journal that Apple is cutting orders of its entry-level iPhone 5c -- the iPhone 5s is still selling well -- it may not be long before Apple needs a new workhorse. Great Expectations Wearable computing is all the rage these days, yet Apple has surprisingly stayed out of this potentially lucrative market. It's not just about Google Glass, those costly yet vaguely creepy high-tech spectacles. Smart watches fall into the realm of wearable computing, and it seems as if everybody outside of Apple is racing into this market, intent on putting out wristwatches that also interact with smartphones via Bluetooth to provide incoming texts and emails, as well as running a few apps. An upstart named Pebble kicked things off last year with one of the more successful Kickstarter campaigns on record. Best Buy (BBY) began stocking Pebble smart watches earlier this year. This summer we saw the only company selling more smartphones than Apple -- Samsung -- introduce its smart watch. Another area where investors expected Apple to have made a bigger splash by now is the smart television market. Yes, Apple TV has been around for years, but we're not talking about those Web-tethered set-top boxes. We're talking about a full-blown smart television. One of the last things that Steve Jobs told his biographer was that Apple had finally "cracked" the problem with smart televisions. Well, maybe it did, but whatever cracked hasn't hatched. Apple really could make a major dent in this market if it's able to pair up to the Internet-connected TV with a mold-breaking streaming cable service. Google and even Intel (INTC) have gotten into the market of offering pay TV services. Apple -- with its deep video connections through iTunes -- could breathe new life into a surprisingly moribund TV market. Still, we are unlikely to see any of these new toys that have been staple rumor mill chatter for years when it stages its media event on Tuesday. However, Apple can't take its current product portfolio for granted. Apple's last breakthrough was the iPad in 2010. Jobs died a year later, and the market's been questioning if Apple can innovate in a material way without him. Apple needs to show us something new, and that can't happen soon enough.

Thursday, October 17, 2013

Hot Canadian Companies To Watch In Right Now

Canadian mineral exploration and development company Northern Dynasty Minerals (NYSEMKT: NAK  ) has approved an $80 million budget for 2013 to advance its Pebble project in Alaska.

Pebble is the largest undeveloped copper-gold-molybdenum deposit in the world, according to the company, with the potential to produce as much as 55 billion pounds of copper, 67 million ounces of gold, and 3.3 billion pounds of molybdenum over its near-80-year life. Since July 2007, and prior to today's announcement of funding, some $680 million has already been spent on developing the project. Northern Dynasty expects to initiate permitting under the National Environmental Policy Act before the end of the year.

Northern Dynasty CEO�Ronald Thiessen was quoted as saying, "Following a very substantial pre-permitting planning program and years of comprehensive study, the Pebble Partnership is now nearing the final stages of completing its project description for the Pebble project."

Hot Canadian Companies To Watch In Right Now: United States Steel Corporation(X)

United States Steel Corporation produces and sells steel mill products in North America and Central Europe. It operates in three segments: Flat-rolled Products (Flat-rolled), U. S. Steel Europe (USSE), and Tubular Products (Tubular). The Flat-rolled segment offers slabs, rounds, strip mill plates, sheets, and tin mill products, as well as iron ore and coke. This segment serves service center, conversion, transportation, construction, container, and appliance and electrical markets in North America. The USSE segment offers slabs, sheets, strip mill plates, tin mill products, and spiral welded pipes, as well as heating radiators and refractory ceramic materials. This segment serves the European construction, service center, conversion, container, transportation, and appliance and electrical, as well as and oil, gas, and petrochemical markets. The Tubular segment offers seamless and electric resistance welded steel casing and tubing; and standard, and line pipe and mechanical tubing. It primarily serves customers in the oil, gas, and petrochemical markets. The company also provides transportation services, including railroad and barge operations. In addition, it owns, develops, and manages various real estate assets, which include approximately 200,000 acres of surface rights primarily in Alabama, Illinois, Maryland, Michigan, Minnesota, and Pennsylvania; participates in joint ventures that are developing real estate projects in Alabama, Maryland, and Illinois; and owns approximately 4,000 acres of land in Ontario, Canada. The company was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania.

Advisors' Opinion:
  • [By Roberto Pedone]

    Another stock that looks poised to trigger a big breakout trade is U.S. Steel (X), which is an integrated steel producer of flat-rolled and tubular products with major production operations in North America and Europe. This stock has been hit hard by the sellers so far in 2013, with shares off by 22%.

    If you take a look at the chart for U.S. Steel, you'll notice that this stock has been trending sideways and consolidating for the last three months and change, with shares moving between $15.76 on the downside and $19.70 on the upside. Shares of X have just started to trend back above its 50-day moving average of $17.87 a share and it's quickly pushing within range of triggering a big breakout trade above the upper-end of its sideways trading chart pattern. If this breakout hits soon, then it would take X out of its consolidation pattern and potentially into a new uptrend.

    Traders should now look for long-biased trades in X if it manages to break out above some near-term overhead resistance levels at $19.26 to $19.40 and then once it clears more resistance at $19.70 with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action 7.31 million shares. If that breakout triggers soon, then X will set up to re-test or possibly take out its next major overhead resistance levels at $21.30 to $24, or even $25 a share.

    Traders can look to buy X off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $17.87 a share, or below more support at $16.86 a share. One could also buy X off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

    This stock is another favorite target of the short-sellers, since the current short interest as a percentage of the float for X is very high at 30.1%. This stock could easily see a powerful short-squeez

  • [By Dan Caplinger]

    U.S. Steel (NYSE: X  ) , short position: 29.4% of float and 29.3% of outstanding shares
    The steel industry has struggled for a long time, and the continuing sluggishness in Chinese growth has led to major questions about how long investors may have to wait before demand for steel, along with the related commodities that go into producing it, starts to rise. Even with the shares at levels below their 2009 financial-crisis lows, U.S. Steel still has short-sellers believing the stock can fall lower still.

  • [By Alex Planes]

    The day's most notable gain was that of non-Dow stock Auburn Automobile, which skyrocketed 40% due to what would later be revealed as stock manipulation by Auburn owner Errett Cord (the company's tiny float made it highly susceptible to such meddling). Many Dow components rose as well, with industrial bellwether U.S. Steel (NYSE: X  ) advancing despite reports that its unfilled orders had fallen further than expected. This drop was waved off by The New York Times, which blamed "seasonal tendencies" for the 150,000-ton order decline. Its strong performance in spite of the purportedly bad news helped drag many of its Dow peers along for the ride.

  • [By Ben Levisohn]

    Cliff’s gain puts it atop the S&P 500 today. Rio Tinto (RIO) has gained 1.3% to $46.48, BHP Billiton (BHP) has risen 1% to $63.44 and U.S. Steel (X) is up 1.4% to $18.32.

Hot Canadian Companies To Watch In Right Now: Plains All American Pipeline L.P.(PAA)

Plains All American Pipeline, L.P., through its subsidiaries, engages in the transportation, storage, terminalling, and marketing of crude oil, refined products, and liquid petroleum gas (LPG) products in the United States and Canada. The company operates in three segments: Transportation, Facilities, and Supply and Logistics. The Transportation segment transports crude oil and refined products on pipelines, gathering systems, trucks, and barges. As of December 31, 2011, this segment owned and leased 16,000 miles of active crude oil and refined products pipelines and gathering systems; 23 million barrels of above-ground tank capacity used primarily to facilitate pipeline throughput; 67 trucks and 382 trailers; and 82 transport and storage barges, and 44 transport tugs. The Facilities segment provides storage, terminalling, and throughput services for crude oil, refined products, and LPG and natural gas, as well as offers LPG fractionation and isomerization, and natural gas processing services. The Supply and Logistics segment purchases crude oil at the wellhead, and pipeline and terminal facilities; waterborne cargoes at their load port and various other locations in transit; and LPG from producers, refiners, and other marketers. This segment also resells or exchanges crude oil and LPG; and transports oil and LPG on trucks, barges, railcars, pipelines, and ocean-going vessels to various delivery points. It has 622 trucks and 731 trailers, and 2,453 railcars. The company also owns and operates natural gas storage facilities. Plains All American Pipeline, L.P. was founded in 1998 and is headquartered in Houston, Texas.

Advisors' Opinion:
  • [By Aimee Duffy]

    Plains All American Pipeline (NYSE: PAA  ) reported first-quarter earnings after the market closed on Monday. Analysts were expecting earnings per unit of $0.98 and revenue of $11.27 billion; Plains�recorded $1.27 per unit and $10.62 billion in revenue. These numbers don't tell the whole story, so let's drill down for three important takeaways that go beyond the top and bottom lines.

  • [By Matt DiLallo]

    Enbridge Energy Partners (NYSE: EEP  ) has been in a bit of a battle with Plains All American Pipeline (NYSE: PAA  ) over the levels of hydrogen sulfide that's in the crude oil being delivered to its rail facility in the Bakken. The company is seeking to reject crude oil that contains more than five parts per million of the potentially deadly gas. This is after the company found extremely high concentrations of the gas in one of its crude oil tanks in North Dakota. The level of hydrogen sulfate hit 1200 parts per million which is a very potentially dangerous level.

  • [By Robert Rapier]

    Plains All American Pipeline LP (PAA) operates 18,000 miles of crude oil, natural gas liquids (NGLs), and refined product pipelines, and moves approximately 3.5 million barrels of liquid product per day.

  • [By Dividends4Life]

    Plains All American Pipeline LP (PAA) is a limited partnership that engages in interstate and intrastate crude oil transportation, terminalling and storage, as well as crude oil gathering and marketing.
    Yield: 4.5% | Years of Dividend Growth: 13

Top 5 Dividend Companies To Watch In Right Now: Texas Pacific Land Trust(TPL)

Texas Pacific Land Trust engages in the sale, lease, and management of land in the United States. It also retains oil and gas royalties, and involves in temporary cash investments. The company leases land to the ranching industry for grazing purposes. As of March 31, 2011, it owned surface rights in 949,355 acres of land in 20 counties in Texas; and 318 town lots in Loraine. The company also owned a 1/128 nonparticipating perpetual oil and gas royalty interest under 85,414 acres of land; and a 1/16 nonparticipating perpetual oil and gas royalty interest under 386,988 acres of land in the western part of Texas. Texas Pacific Land Trust was founded in 1888 and is based in Dallas, Texas.

Hot Canadian Companies To Watch In Right Now: Ritchie Bros. Auctioneers Incorporated(RBA)

Ritchie Bros. Auctioneers Incorporated, an industrial auctioneer, sells various equipment to on-site and online bidders. The company, through unreserved public auctions, sells a range of used and unused industrial assets, including equipment, trucks, and other assets utilized in the construction, transportation, agricultural, material handling, mining, forestry, petroleum, and marine industries. It also provides Internet bidding services, which facilitate customers access to live and online auction participation. The company primarily serves buyers and sellers of equipment, trucks, and other industrial assets; rental companies and brokers; finance companies; and truck and equipment dealers. As of December 31, 2011, it operated approximately 110 locations in approximately 25 countries, including 43 auction sites worldwide. The company was founded in 1963 and is headquartered in Burnaby, Canada.

Advisors' Opinion:
  • [By Chris Hill]

    Caterpillar's (NYSE: CAT  ) �first-quarter profit�fell 45% and the company lowered guidance. But its CEO said that his confidence is at a two-year high and sales in China rose. Should investors buy the stock? In this installment, our analysts discuss Caterpillar's future and explain why Ritchie Bros. Auctioneers (NYSE: RBA  ) could be a hidden winner.

Hot Canadian Companies To Watch In Right Now: Gildan Activewear Inc.(GIL)

Gildan Activewear Inc. engages in the manufacture and sale of apparel products primarily in the United States, Canada, and Europe. It sells T-shirts, fleece, and sport shirts to wholesale distributors under the Gildan brand name. The company also provides its activewear products for work and school uniforms and athletic team wear, and other purposes to convey individual, group, and team identity. In addition, it offers undecorated products to branded apparel companies and retailers; and underwear products. Further, the company markets its sock products under the various brands, including Gold Toe, PowerSox, SilverToe, Auro, All Pro, GT, and the Gildan brand. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was founded in 1984 and is headquartered in Montreal, Canada.

Advisors' Opinion:
  • [By Eric Volkman]

    Gildan Activewear (NYSE: GIL  ) just bought itself a new wardrobe. The company announced it has acquired "substantially all of the assets" of privately held screen printing and apparel decoration specialist New Buffalo Shirt Factory for around $7 million.

  • [By Tom Stoukas]

    Deutsche Lufthansa AG (LHA) and Allianz SE (ALV) led airlines and insurers lower, retreating at least 1.5 percent. Bayerische Motoren Werke AG (BMW) slid 1.6 percent. Deutsche Bank AG (DBK) rose after JPMorgan Chase & Co. boosted its recommendation on the shares. Gildemeister AG (GIL) added 3.4 percent after Deutsche Bank upgraded the maker of cutting tools.

Hot Canadian Companies To Watch In Right Now: Higher One Holdings Inc.(ONE)

Higher One Holdings, Inc. provides technology and payment services in the United States. It offers a suite of disbursement and payment solutions for higher education institutions and their students. The company provides OneDisburse Refund Management product that offers higher education institutional clients with a technology service for streamlining the student refund disbursement process. It also offers CASHNet Payment suite that includes software-as-a-service products and services, such as ePayment to securely accept online payments for tuition, charges, and fees from students through credit card, pinless debit, and ACH; eBill to automate payer billing and processing functions; MyPaymentPlan to personalize students? payment plans; eMarket that allows academic, athletic, and other departments to take alumni donations, sell event tickets and other merchandise, and accept payments of event and conference registration fees; and Cashiering to operate and manage cashiering fu nctions, back office payments, and campus-wide departmental deposits. In addition, the company provides OneDisburse ID, which offers an option to combine the company?s debit card with the institution?s ID cards; OneDisburse Payroll to distribute payroll and other employee-related payments; OneDisburse PLUS product to distribute Parent PLUS loan refunds to parents on behalf of the school; and Financial Intelligence to students with an online class. Further, it provides student-oriented banking services to campus communities. Additionally, the company offers OneAccount product for students, as well as faculty, staff, and alumni, with an FDIC-insured online checking account and a debit MasterCard ATM card. Higher One Holdings, Inc. was founded in 2000 and is headquartered in New Haven, Connecticut.

Advisors' Opinion:
  • [By Roberto Pedone]

    One under-$10 business services player that looks poised for a run higher is Higher One (ONE), which provides technology-based refund disbursement, payment processing and data analytics services to higher education institutions and students. It also provides banking services to campus communities. This stock has been hit hard by the bears so far in 2013, with shares down by 26%.

    If you take a look at the chart for Higher One, you'll notice that this stock has been downtrending badly for the last three months, with shares plunging from its high of $11.93 to its recent low of $6.97 a share. During that downtrend, shares of ONE were consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of ONE have recently formed a double bottom chart pattern at $7.05 to $6.97 a share. This stock has now started to rebound sharply off that double bottom and move within range of triggering a near-term breakout trade.

    Traders should now look for long-biased trades in ONE if it manages to break out above some near-term overhead resistance at $7.85 a share and then once it clears its 50-day moving average at $8.11 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 196,360 shares. If that breakout triggers soon, then ONE will set up to re-test or possibly take out its next major overhead resistance levels at $9 to its 200-day moving average of $9.77 a share. This stock could even tag $11 a share if that 200-day gets taken out with volume.

    Traders can look to buy ONE off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $7.39 a share, or below $7 a share. One can also buy ONE off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

  • [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 Higher One Holdings (NYSE: ONE  ) , whose recent revenue and earnings are plotted below.

Wednesday, October 16, 2013

Hot Bank Companies To Watch In Right Now

Like an arsonist warning of the dangers of playing with fire, the expiration of certain provisions of the so-called Dodd-Frank finance reform bill has the nation's biggest banks warning that retailers like Wal-Mart (NYSE: WMT  ) may use the opportunity to offer banking services unless Congress acts now. Since they were the ones that nearly burnt down the nation's financial house, perhaps they know from whence they speak.

As part of the financial system's overhaul, a three-year moratorium was imposed on non-financial businesses offering credit, savings, and CDs to consumers. Just before Dodd-Frank was enacted, retailers like Home Depot�that had applied for a bank charter had their applications put on hold. Even though over the years we've had numerous non-financial companies like�General Electric, Pitney-Bowes,�General Motors -- �in fact, much of the auto industry -- operate as banks through the creation of industrial loan corporations, or ILCs, without any outcry from the industry, it's only the possibility of�Wal-Mart entering the fray that causes them to quake.

Hot Bank Companies To Watch In Right Now: Federal Home Loan Mortgage Corp (FMCC)

Federal Home Loan Mortgage Corporation (Freddie Mac) conducts business in the United States residential mortgage market and the global securities market. The Company operates in three segments: Single-family Guarantee, Investments, and Multifamily. The Single-family Guarantee segment reflects results from the Company's single-family credit guarantee activities. The Investments segment reflects results from the Company's investment, funding and hedging activities. The Multifamily segment reflects results from the Company's investment (both purchases and sales), securitization, and guarantee activities in multifamily mortgage loans and securities. The Company conducts its operations in the United States and its territories.

Single-Family Guarantee Segment

In the Company�� Single-family Guarantee segment, it purchases single-family mortgage loans originated by the Company�� seller/servicers in the primary mortgage market. The Company uses the mortgage securitization process to package the purchased mortgage loans into guaranteed mortgage-related securities. The Company guarantees the payment of principal and interest on the mortgage-related security in exchange for management and guarantee fees. The Company�� customers are lenders in the primary mortgage market that originate mortgages for homeowners. These lenders include mortgage banking companies, commercial banks, savings banks, community banks, credit unions, Housing Finance Agency (HFAs), and savings and loan associations. The Company�� customers also service loans in its single-family credit guarantee portfolio.

Mortgage securitization is a process, by which the Company purchase mortgage loans that lenders originate, and pool these loans into mortgage securities that are sold in global capital markets. The United States residential mortgage market consists of a primary mortgage market that links homebuyers and lenders and a secondary mortgage market that links lenders and investors. The Company part! icipates in the secondary mortgage market by purchasing mortgage loans and mortgage-related securities for investment and by issuing guaranteed mortgage-related securities. In the Single-family Guarantee segment, it purchase and securitize single-family mortgages, which are mortgages that are secured by one- to four-family properties. The types of mortgage-related securities it issue and guarantee include PCs, REMICs and Other Structured Securities and Other Guarantee Transactions. The Company also issue mortgage-related securities to third parties in exchange for non-Freddie Mac mortgage-related securities. The non-Freddie Mac mortgage-related securities are transferred to trusts that were specifically created for the purpose of issuing securities, or certificates, in the Other Guarantee Transactions.

Investments Segment

In the Company�� Investments segment, it invests principally in mortgage-related securities and single-family performing mortgage loans, which are funded by other debt issuances and hedged using derivatives. In the Company�� Investments segment, it also provides funding and hedging management services to the Single-family Guarantee and Multifamily segments. The Company�� customers for its debt securities predominantly include insurance companies, money managers, central banks, depository institutions, and pension funds. The Company funds its investment activities by issuing short-term and long-term debt. The Company�� PCs are an integral part of its mortgage purchase program. The Company�� Single-family Guarantee segment purchases many of its mortgages by issuing PCs in exchange for those mortgage loans in guarantor swap transactions. The Company also issue PCs backed by mortgage loans that it purchased for cash.

Multifamily Segment

The Company�� multifamily segment issues Other Structured Securities, but does not issue REMIC securities. The Company multifamily segment also enters into other guarantee commitments for mult! ifamily H! FA bonds and housing revenue bonds held by third parties. The Company acquires a portion of its multifamily mortgage loans from several large seller/servicers.

The Company competes with Federal National Mortgage Association (Fannie Mae), Government National Mortgage Association (Ginnie Mae), Mae Federal Housing Administration/the United States Department of Veteran Affairs (FHA/VA) and Federal Home Loan Bank (FHLB).

Advisors' Opinion:
  • [By Shayndi Raice]

    The Department of Justice and Bank of America(BAC) will go head-to-head Tuesday morning as the government attempts to hold the bank liable for allegedly misrepresenting the quality of loans sold to mortgage-finance firms Fannie Mae(FNMA) and Freddie Mac(FMCC).

  • [By Jay Jenkins]

    For these mREITS, the market has ignored the rebounding real estate market, the explicit backing of�Fannie Mae� (NASDAQOTCBB: FNMA  ) and�Freddie Mac� (NASDAQOTCBB: FMCC  ) by the U.S. government, strong performances from mortgage originators this year, and the impressive dividends offered by leading companies like�American Capital Agency (NASDAQ: AGNC  ) , CYS Investments (NYSE: CYS  ) , and Hatteras Financial (NYSE: HTSI  ) .�

  • [By Alex Dumortier, CFA]

    Fannie and Freddie: future uncertain
    At the beginning of the month, I highlighted government mortgage agencies Federal National Mortgage Association (NASDAQOTCBB: FNMA  ) and Federal Home Loan Mortgage Corp. (NASDAQOTCBB: FMCC  ) , commonly known as Fannie Mae and Freddie Mac. As the result of an extraordinary run this year, the stocks now have, to my knowledge, the highest market capitalization of any penny stocks in the U.S. market.

Hot Bank Companies To Watch In Right Now: Bank of Nova Scotia (BNS)

The Bank of Nova Scotia (the Bank) is a diversified financial institution. As of October 31, 2011, the Bank offered a range of products and services, including retail, commercial, corporate and investment banking to more than 18.6 million customers in more than 50 countries around the world. The Bank has four business lines: Canadian Banking, International Banking, Scotia Capital and Global Wealth Management. In January 2012, the Company closed its acquisition of 51% of Banco Colpatria. In April 2012, the Company through Scotia Capital Inc. acquired Howard Weil Incorporated. In April 2013, Bank of Nova Scotia acquired a 50% interest in Administradora de Fondos de Pensiones Horizonte SA. 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, Canadian banking giant Bank of Nova Scotia (NYSE: BNS  ) has earned a respected four-star ranking. �

Top 10 High Tech Stocks For 2014: Capital One Financial Corporation(COF)

Capital One Financial Corporation operates as the bank holding company for the Capital One Bank (USA), National Association (COBNA), and Capital One, National Association (CONA), which provide various financial products and services in the United States, the United Kingdom, and Canada. It offers consumer and small business credit card lending, national closed end installment lending, and the international credit card lending services. The company also provides various non-interest bearing and interest-bearing deposits, including demand deposits, money market deposits, negotiable order of withdrawal accounts, savings accounts, certificates of deposit, and other consumer time deposits. Its loan portfolio comprises credit card loans; consumer loans, such as auto, home, and retail banking loans; and commercial loans, including commercial and multifamily real estate, middle market, specialty lending, and small-ticket commercial real estate loans. In addition, the company provid es mortgage banking, treasury management, and depository services. It primarily serves consumers, small businesses, and commercial clients through branches, the Internet, and other distribution channels. The company was founded in 1993 and is headquartered in McLean, Virginia.

Advisors' Opinion:
  • [By Eric Volkman]

    Capital One (NYSE: COF  ) is apparently not a believer in modest dividend increases. The company announced it is to pay $0.30 per share of its common stock on May 23 to holders of record as of May 13. That amount is six times the $0.05 disbursement the firm handed out in every previous quarter stretching back to May 2009.

Hot Bank Companies To Watch In Right Now: Comerica Inc (CMA)

Comerica Incorporated (Comerica) is a financial services company. Comercia operates in four segments: the Business Bank, the Retail Bank, Wealth Management and the Finance Division. As of December 31, 2011, Comerica owned two active banking and 49 non-banking subsidiaries. The Company's Business Bank meets the needs of middle market businesses, multinational corporations and governmental entities by offering products and services, including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services and loan syndication services. On July 28, 2011, Comerica acquired Sterling Bancshares, Inc. (Sterling), a bank holding company.

The Company's Retail Bank includes small business banking and personal financial services, consisting of consumer lending, consumer deposit gathering and mortgage loan origination. In addition to a range of financial services provided to small business customers, this business segment offers a range of consumer products, including deposit accounts, installment loans, credit cards, student loans, home equity lines of credit and residential mortgage loans.

Wealth Management offers products and services consisting of fiduciary services, private banking, retirement services, investment management and advisory services, investment banking and brokerage services. This business segment also offers the sale of annuity products, as well as life, disability and long-term care insurance products. The Finance segment includes Comerica�� securities portfolio and asset and liability management activities. This segment is engaged in managing Comerica�� funding, liquidity and capital needs, performing interest sensitivity analysis and executing strategies to manage Comerica�� exposure to liquidity, interest rate risk and foreign exchange risk.

The Other category includes discontinued operations, the income and expense impact of equity an! d cash, tax benefits not assigned to specific business segments and miscellaneous other expenses of a corporate nature. In addition, Comerica delivers financial services in its four markets: Midwest, Western, Texas and Florida. The Midwest market consists of Michigan, Ohio and Illinois. The Western market consists of the states of California, Arizona, Nevada, Colorado and Washington. California operations represent the the Western market. The Texas and Florida markets consist of the states of Texas and Florida, respectively. Other Markets include businesses with a national perspective, Comerica�� investment management and trust alliance businesses, as well as activities in all other markets, in which Comerica has operations, except for the International market. The International market represents the activities of Comerica�� international finance division, which provides banking services to foreign-owned, North American-based companies and to international operations of North American-based companies.

Advisors' Opinion:
  • [By Shauna O'Brien]

    Goldman Sachs announced on Tuesday that it has lifted its rating on Comerica Incorporated (CMA) to “Neutral.”

    The firm has upgraded CMA from “Sell” to “Neutral,” and has raised the company’s price target from $38 to $42. This price target suggests a 2% upside from the stock’s current price of $40.83.

    An analyst from the firm noted: “The market has shown willingness to price the shares at a premium based on CMA�� absolute rate upside, which we do not expect to change much over time.”

    “That said, near-term expectations could be at risk given the ~4% decline in loans in 3Q, which if it continues could weigh on its longer-term earnings profile,” the analyst added.

    Looking ahead, the firm has lowered its FY2013 earnings estimates from $2.85 to $2.81 per share. FY2014 estimates have been reduced from $2.95 to $2.90 per share and FY2015 estimates of $3.30 per share were maintained.

    Comerica shares were mostly flat during pre-market trading Tuesday. The stock is up 35% YTD.

Hot Bank Companies To Watch In Right Now: Wilshire Bancorp Inc.(WIBC)

Wilshire Bancorp, Inc. operates as the holding company for Wilshire State Bank that offers a range of financial products and services. It accepts various deposit products that include certificates of deposit, regular savings accounts, money market accounts, checking and negotiable order of withdrawal accounts, installment savings accounts, and individual retirement accounts. The company?s loan portfolio comprises commercial real estate and home mortgage loans, commercial business lending and trade finance, and small business administration lending, as well as consumer loans, including personal loans, auto loans, and other loans. It also provides trade finance services that include issuance and negotiation of letters of credit, handling of documentary collections, advising and negotiation of commercial letters of credit, transfer and issuance of back-to-back letters of credit, and trade finance lines of credit. In addition, the company offers Internet banking services, auto matic teller machines, and armored carrier services. It has 24 full-service branch offices in Southern California, Texas, New Jersey, and the greater New York City metropolitan area; and 6 loan production offices in Colorado, Georgia, Texas, New Jersey, and Virginia. The company was founded in 1980 and is headquartered in Los Angeles, California.

Advisors' Opinion:
  • [By Rich Smith]

    Los Angeles-based Wilshire Bancorp (NASDAQ: WIBC  ) is acquiring some Korean banking customers... in New Jersey.

    On Monday, Wilshire announced that it has signed a definitive agreement to acquire�New Jersey's BankAsiana, a commercial bank�with three branches serving the Korean-American community in the New York/New Jersey market, boasting total assets of $207.3 million, total net loans of $161.2 million, and total deposits of $164.6 million.

Hot Bank Companies To Watch In Right Now: Northern Trust Corporation(NTRS)

Northern Trust Corporation, through its subsidiaries, provides asset servicing, fund administration, asset management, and fiduciary and banking solutions for corporations, institutions, families, and individuals worldwide. The company offers corporate and institutional services, including global master trust and custody, trade settlement, and reporting; fund administration; cash management; investment risk and performance analytical services; investment operations outsourcing; and transition management and commission recapture services. It also provides personal financial services, such as personal trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; brokerage services; and private and business banking services, as well as customized products and services. In addition, the company offers active and passive equity and fixed income portfolio management, as well as alternative asset classes comprisin g private equity and hedge funds of funds, and multi-manager products and advisory services. Further, it engages in fund administration, investment operations outsourcing, and custody business that provides specialized services to a range of funds, which include money-market, multi-manager, exchange-traded funds, and property funds for on-shore and off-shore markets. Additionally, the company provides administrative and middle-office services consisting of trade processing, valuation, real-time reporting, accounting, collateral management, and investor servicing. Northern Trust Corporation was founded in 1889 and is based in Chicago, Illinois.

Advisors' Opinion:
  • [By Holly LaFon]

    In the fourth quarter, Yacktman�� biggest additions to his holdings were Research In Motion (RIMM) and Avon Products (AVP). He also surprised followers by venturing into financials, with new positions in Goldman Sachs (GS), Bank of America (BAC), State Street Corp. (STT) and Northern Trust Corp. (NTRS).

Hot Bank Companies To Watch In Right Now: Bank of America Corporation(BAC)

Bank of America Corporation, a financial holding company, provides banking and nonbanking financial services and products to individuals, small- and middle-market businesses, large corporations, and governments in the United States and internationally. The company?s Deposits segment generates savings accounts, money market savings accounts, certificate of deposits, and checking accounts; and Global Card Services segment provides the U.S. consumer and business card, consumer lending, international card and debit card services. Its Home Loans & Insurance segment offers consumer real estate products and services, including mortgage loans, reverse mortgages, home equity lines of credit, and home equity loans. It also provides property, disability, and credit insurance. The company?s Global Commercial Banking segment offers lending products, including commercial loans and commitment facilities, real estate lending, leasing, trade finance, short-term credit, asset-based lending, and indirect consumer loans; and capital management and treasury solutions, such as treasury management, foreign exchange, and short-term investing options. Its Global Banking & Markets segment provides financial products, advisory services, settlement, and custody services; debt and equity underwriting and distribution, merger-related advisory services, and risk management products; and integrated working capital management and treasury solutions. The company?s Global Wealth & Investment Management segment offers investment and brokerage services, estate management, financial planning services, fiduciary management, credit and banking expertise, and asset management products. Bank of America Corporation serves customers through a network of approximately 5,900 banking centers and 18,000 automated teller machines. It was formerly known as NationsBank Corporation and changed its name on October 1, 1998. Bank of America Corporation was founded in 1874 and is based in Charlott e, North Carolina.

Advisors' Opinion:
  • [By John Grgurich]

    Down 4.63% about two hours into the last day of the trading week, Bank of America (NYSE: BAC  ) tanked this week for the same reason most other U.S. stocks did: fear of the Federal Reserve announcing firm plans for tapering back quantitative easing, and then the Fed doing exactly that. That said, there's something else on B of A investors' minds that's also not helping things.

  • [By Travis Hoium]

    The economic news hurt bank stocks, but that's not all that's dragging Bank of America (NYSE: BAC  ) and JPMorgan Chase (NYSE: JPM  ) lower today. The Financial Times is reporting that the Federal Reserve is considering raising capital requirements for banks -- potentially even higher than Basel III requirements. Congress is reportedly pressuring the Fed to raise capital requirements on big banks, and the FDIC board and Office of the Comptroller of the Currency are on board as well. Higher capital requirements are probably good for the economy because they reduce failure risk, but they would also reduce leverage, which banks use to make a profit. That's why Bank of America and JPMorgan are both down today.

  • [By Matt Thalman]

    A few Dow losers
    Shares of Bank of America (NYSE: BAC  ) , down 1.8%, are leading all Dow laggards today. The journalist who discovered and first reported the robo-signing of foreclosure documents has now pulled another cat out of the bag. This time it appears that Bank of America and other mortgage servicers have been feeding incorrect information to bond trustees about the status of previously foreclosed homes. At this time we don't know whether Bank of America will face a fine, but we will surely learn more before long. To read more about this developing story, click here.�

Hot Bank Companies To Watch In Right Now: Royal Bank Of Canada(RY)

Royal Bank of Canada provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services under the RBC name worldwide. Its Canadian Banking segment offers personal financial services, business financial services, and cards and payment solutions. The company?s Wealth Management segment provides wealth and asset management, and estate and trust services to affluent and high net worth clients through distributors, as well as directly to institutional and individual clients in Canada, the United States, Europe, Asia, and Latin America. Its Insurance segment provides various life and health insurance, including universal life, accidental death and critical illness protection, disability, long-term care insurance, and group benefits; and property and casualty insurance comprising home, auto, and travel insurance, as well as wealth accumulation solutions; and reinsurance products through retail ins urance branches, call centers, independent insurance advisors and travel agencies, financial institutions, and career sales force. The company?s International Banking segment offers various financial products and services to individuals, business clients, and public institutions in the U.S. and Caribbean. This segment also provides global custody, fund and pension administration, securities lending, shareholder services, analytics, and other related services to institutional investors. Royal Bank of Canada?s Capital Markets segment engages in the trading and distribution of fixed income, foreign exchange, equities, commodities, and derivative products for institutional, public sector, and corporate clients; and involves in investment banking, debt and equity origination, advisory services, corporate lending, private equity, and client securitization businesses. The company was founded in 1864 and is headquartered in Toronto, Canada.

Advisors' Opinion:
  • [By Dan Caplinger]

    U.S. investors first became aware of the relative strength of Canadian banks during the U.S. financial crisis, but since then, they've realized the benefits of looking north of the border. Canada does have its own systemically important banks, which include not only Scotiabank but also Royal Bank of Canada (NYSE: RY  ) , Bank of Montreal (NYSE: BMO  ) , and three other large financial institutions, but high capital requirements have demonstrated their creditworthiness and relative safety.

  • [By Eric Volkman]

    UBS (NYSE: UBS  ) , Barclays (NYSE: BCS  ) , JPMorgan Chase's near-eponymous J.P. Morgan, Royal Bank of Canada's (NYSE: RY  ) Capital Markets arm, and the Securities wings of Wells Fargo and Deutsche Bank (NYSE: DB  ) are the joint book-running managers of the issue.

  • [By GuruFocus]

    This screen generates 37 stocks in the U.S. market as of today. The largest companies among the list are BHP Billiton (BHP) (BBL), Intel (INTC), China Petroleum & Chemical (SNP) and Royal Bank of Canada (RY).